GI Energy is working with Con Edison to demonstrate a novel energy storage business model under Gov. Cuomo’s Reforming the Energy Vision (REV) process. Selecting sites from targeted network areas across New York City, GI Energy will install “front-of-the-meter” batteries at four select host sites, each receiving regular lease payments for use of their land.
At each of the sites, we will install a single 20-foot containerized package system sized for 1 MW/1 MWh. The site layout and renderings here illustrate the typical system configuration. Footprint dimensions are approximately 1,000 square feet for the single unit installation. NEC Energy Solutions will package them at their Westborough, MA, facility.
Con Edison will have priority dispatch rights to the batteries at times of high grid demand. During other hours, power from these “non-wire alternative” assets can be dispatched for other ancillary services in the NYISO markets. At scale, this model represents a novel breakthrough, allowing the utility-optimized dispatch of a third-party asset for grid needs without requiring conventional infrastructure build-out at massive upfront capital cost.
In conventional behind-the-meter systems, a utility customer typically owns or leases the battery, and its power is used to reduce load at the time of the customer’s peak demand. This can benefit big customers because their billing is largely based on their highest demand in the month. They can save money by reducing that peak. However, the demand savings are highly dependent on the load profile of the individual account (see GI Energy’s blog post for details.) The customer may or may not be located in an area where the battery can help Con Edison’s grid when the utility needs it. The storage system is likely to be sized to meet only customer need, which tends to be smaller than utility need. Lastly, Con Edison usually has no dispatch control over these customer-side batteries.
To simplify battery storage development, all that a host site needs to participate in this “front-of-the-meter” project is physical space, and to be located in a network area needing reliability enhancement. Though third-party owned, these battery storage systems will be a grid asset for use by Con Edison where they need them most when they need them. When not in use by Con Edison, GI Energy will sell the battery services into the NYISO wholesale markets using an interface and dispatch optimization platform to be developed with Smarter Grid Solutions.
The project will demonstrate whether this model can streamline the mass deployment of battery storage in Con Edison territory, compared to traditional models. It will also test whether batteries provide the anticipated grid and wholesale benefits.
GI Energy and a capital partner have formed a Special Purpose Entity (SPE) that will build, own, and operate the battery systems. The SPE will execute lease agreements with the host sites and contract with Con Edison to receive quarterly payments for grid services, as well as payments for secondary revenue streams, including NYISO market participation.
Host sites will be selected based primarily on location – if you think you have a potential site, we would love to hear from you. The batteries will be located in areas where they can provide the greatest benefit to the Con Edison electrical delivery system. Host sites will also have the opportunity to competitively bid an annual $/sq. ft. lease price to host the battery. GI Energy and Con Edison will select final sites based on several factors, including site bids. The cost of the leases will be a factor to find the lowest prices on behalf of Con Edison customers.
GI Energy canvased the target network areas for viable candidate sites. Typically, good candidates include large industrial/commercial yards or parking lots hosting containers, vehicles or equipment. However, any location with adequate space can be entered into the pool of potential host sites. Interested land owners or property managers are encouraged to download the FAQs and Battery Host Site Intake Form.
GI Energy representatives can pre-qualify sites quickly for candiates via online map assessments. We will also assist prospective hosts with Intake Form entries either in person or over the phone. Call GI Energy at (646) 786-1256 or email firstname.lastname@example.org.