RTO Insider on August 7th 2017 covered GI Energy in an article after a finely selected panel met to discuss energy storage partnerships in retail and wholesale markets with NYISO (New York Independent System Operator).
Working in conjunction with NYISO, New York energy storage developers and utilities are quickly establishing participation in both retail and wholesale markets to grow from megawatts to gigawatts. Since 2016, the goal has been to reduce the number of barriers in the marketplace to free up storage and the distribution of energy resources; and to improve the level of coordination and integration between the utilities and the utility grid.
Dual participation has been a key goal since last year’s FERC Quorum was re-established. By better supporting the utility grid and wholesale markets, developers like GI Energy are able to offer more low-cost storage solutions than ever before.
The article quotes GI’s Tim Banach, ‘Tim Banach, vice president of development for microgrid, developer GI Energy, said that in the past, “there was little to no coordination with the utility around where these projects would be sited and what impacts the projects might have on the utility grid, both beneficial or potentially doing some harm.” Now GI Energy is working with U.K.-based software developer Smarter Grid Solutions on storage demonstration projects for Consolidated Edison.’
GI Energy’s partner Smarter Grid Solutions, a company who has put much focus on developing DER management for utilities (Distributed Energy Resources). These units,their management and working together are key to battery storage and their owners, RTO Insider sourcing the CEO of Smarter Grid Solutions as saying ‘“The GI Energy-Con Edison project is an excellent example of that.” The piece shows Con Edison’s Adrienne Lalle supporting this point ‘“We, through our value-stacking goal, are big supporters of dual participation and using the assets for utility grid support and wholesale markets. It enables developers like GI Energy to offer lower-cost storage solutions to us.”’
Of course to make these partnerships collaboration and education is needed, with explanations on how energy storage would affect the energy bills of the owners. Banach is quoted in this piece ‘his company needed to explain “stand-by rates, contract demands and effects to ICAP [installed capacity] tags, so it was a constant requirement to educate.”’ he continued ”’Ultimately our hope is to demonstrate that by stacking all these revenues, we can lower the cost of service to the utility for the energy services provided and provide ratepayer benefits through an effective and targeted non-wires alternative,”’
The write up continues with Lalle of Con Edison also believing these partnerships increase benefits for customers, ‘providing a customer with a lease payment for the space”you get all the benefits of distributed storage… but you can add a utility value by directing the location strategically to a network constraint, sizing it a little bit bigger so that we can possibly offset some [transmission and distribution] investment and make the dispatch coincident with the network need as opposed to the customer load profile.”.
To enjoy the full article please go to this link to RTO Insider.