To ensure reliability, both the System Operator (NYISO) and the Load Serving Entity (Utility) need to maintain generation and distribution capacity to meet their peak demand obligations. These costs are passed on to customers via demand-based charges, whether assessed as contribution to system coincident peak (ICAP tag) or individual monthly non-coincident peak (Demand Charge). In ConEd, the Commercial System Relief Program (CSRP) aims to reduce peak demand at the network level by calling on customers to reduce energy use during their respective assigned call windows.
Four energy storage systems were installed in four different commercial buildings in Westchester, New York – one of the state’s first Virtual Power Plant demonstration projects. The project reduces electricity costs from ICAP and Demand Charges and participates in NYISO and ConEd demand response programs.
By participating in the CSRP program, the host earns incremental demand response revenue and the utility benefits from system relief.
This project employs a shared-savings model. GHP (owner) and Peak Power split the utility bill savings and market revenues from the operation of the battery. GHP takes on little to no risk while receiving energy cost savings, and Peak Power retains a portion of the revenue in exchange for installing, maintaining, and operating the system.
Additionally, GHP gains a revenue stream in addition to the savings achieved with better building demand charge management.
The energy storage system reduces utility costs and provides peak demand relief for the utility.
Con Edison, the electric utility for this site, provides funding for this system to reduce peak demand during certain windows of time through the Demand Management Program. By participating in the program, the project received an incentive from Con Edison, which reduced the total project cost.
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