Energy Efficiency and Economic Development Incentives in New York

Transcription

1 Energy Efficiency and Economic Development Incentives in New York Presented to EMPOWERACTIVE 2015 June 17, 2015 by Catherine Luthin, President Luthin Associates

2 Program Goals Discuss the Reforming the Energy Vision (REV) proceedings in New York State Review Con Edison Business Incentive Rate for Biomedical Research Analysis Provide summary of NYSERDA and Con Edison Energy Efficiency Programs 2

3 Established in 1994 About Luthin Associates Women/Minority Business Enterprise (WMBE) certified regionally and nationally Our 16 employees have over 220 years experience in energy, finance, engineering and project management Holistic Energy Approach Supply & Demand side perspective Analysis Procure 1.1 billion kwh of electricity and 55 million DTh of fossil fuels Provide economic development, commodity procurement, energy efficiency and sustainability services 3

4 Reforming the Energy Vision (REV) Reforming the Energy Vision (REV) is New York s comprehensive strategy to develop a cleaner and more reliable, resilient and affordable Analysis energy system for all New Yorkers 4

5 Why is Reform Needed? Numerous Challenges Facing New York Energy Industry Aging infrastructure Cost for T&D is more than 50 percent of total cost Cheap shale gas Technological innovation Emphasis on increasing competitiveness of renewable energy resources Extreme weather events Demand for resiliency o Customers don t want Analysis to rely on the utility System benefit costs increasing Increasing environmental compliance costs To meet these challenges, the Public Service Commission commenced its REV initiative to reform New York State s energy industry and regulatory practices. 5

6 Reforming the Energy Vision (REV) It is anticipated that this initiative will lead to regulatory changes that will promote: More efficient use of energy Deeper penetration of renewable energy resources Wider deployment of distributed energy resources such as micro grids; on-site power supplies; and storage Greater use of advanced energy management products Our concerns: Shift T&D investment and risk to customer Relies on 3 rd party participation as vehicle for innovation Focus is on the ESCo not the utility or customer Over reliance on PPA s Peak Distribution is particularly expensive 6

7 Reforming the Energy Vision (REV) Current Status from the Customer s Perspective Average electricity bills increasing Customers are worried about the reliability of the electric system as a result of outages associated with extreme weather New products are increasingly available to assist consumers in managing their electricity usage and bills that also have potential to improve overall efficiency of the system REV is meant to allow Consumers to have increasing opportunities to Analysis Manage energy use in their home and business Use stored electricity to help manage electricity bills Use solar and other distributed energy to provide service to the grid, thereby enhancing reliability and resiliency and earning money Enhance safety and security 7

8 Reforming the Energy Vision (REV) Proposed New Market Structure Enable participation by companies and customers providing solar, storage, peak demand reduction, home energy management, etc. Integrate new electricity resources into the grid to ensure reliability and efficiency Analysis Plan and reconstruct the distribution network Customers get paid as electricity producers do today 8

9 A first-in-the nation, $40 million competition to help communities create microgrids - standalone energy systems that can operate independently in the event of a power outage. All-rograms/Programs/NY- Prize NY Prize NY Prize offers support for Analysis feasibility studies, audit-grade engineering design and business planning, and project build-out and post-operational monitoring. 9

10 Eligible entities included: NY Prize - Eligibility Local government body or affiliate, community organization, nonprofit, research institution, or local development corporation; Investor owned utility, developer, manufacturer, technology vendor, engineering or design firm, or software developer; Municipal utility or rural Analysis cooperative interested in an ability to island; Financial institution or lending partner or Project team including one or more of the above applicants 10

11 NY Prize - Funding Up to $100,000 in funding for up to 25 feasibility studies across New York State (This segment closed out May 15, 2015). The following phases are still open for applications: Up to $1,000,000 per project for the development of 8-10 detailed, audit grade designs (through February 2016). Up to $7,000,000 per project for 5-7 projects for build-out and operation (through December 2017). Evaluation criteria includes: Analysis The overall cost and benefits of the project The project s contribution to public need The technical and operational performance of the project The demonstrated reliability of the proposed Microgrid configuration The use of clean and renewable generation resources in the project Overall financial and managerial capabilities of the developer 11

12 Con Edison Business Incentive Rate The Business Incentive Rate (BIR) offers special reduced energy rates to attract and retain businesses and jobs in New York City and Westchester County. Eligibility includes: Development of new and/or vacant buildings. Organizations who are receiving a comprehensive package of economic incentives from state or local authorities. Not-for-profit institutions Analysis occupying newly constructed or converted space where the space is solely or predominantly used for biomedical research including translational research. We have seen savings of up to 22% of utility deliver charges. 12

13 NYSERDA Funding Opportunities NYSERDA offers millions in financial incentives for a variety of energy improvements. You can use NYSERDA programs to help offset the cost of energy-efficiency projects such as: 1. FlexTech (up to $1,000,000) Energy Studies, Master Plans, Retro-commissioning and Consultants 2. New Construction (up to $1,000,000) New Buildings, Substantial Renovations, Green Buildings, Commissioning and Designers 3. Existing Facilities (up to $2,000,000) Existing Buildings and Demand Response 4. Industrial & Process Efficiency (up to $6,000,000) For Industrial and Data Center, Process and Facility Improvements 13

14 Demand Management Program Indian Point potentially closing by summer ,450 MW shortfall 125 MW carve-out for demand reductions o 100 MW DSM o 25 MW CHP Con Edison/NYSERDA $285 million program o $219 million DSM o $66 million CHP 14

15 Demand Management Program Project Current C&I Incentives/kW DMP Incentive/kW Total Customer Benefit/kW Thermal Storage $600 $2,000 $2,600 Battery Storage $600 $1,500 $2,100 Chiller/HVAC/BMS/Controls $0.16/kWh $1,250 $0.16/kWh + $1,250/kW Lighting/LED $0.16/kWh $800 $0.16/kWh + $800/kW DR Enablement $200 $600 $800 Fuel Switching** Steam AC Program $500-$1,000 CHP Incentives have not changed from original program. See: PON2701 or PON 2568 **Incentives will be offered for installing steam or natural gas AC rather than electric AC Load Reduction Projects over 500kW Projects over 1MW Additional Bonus Additional 10% of kw incentive Additional 15% of kw incentive Bonus first installed, first paid 15

16 Project Eligibility No equipment is removed/disconnected or installed until after a technical review and pre-installation inspection have been completed. The Con Edison customer of record pays into the Monthly Adjustment Clause (MAC). Pure NYPA customers not eligible Project or portfolios must have a combined peak demand reduction of 50kW or greater The Project must be installed and operational by June 1, 2016 Incentives capped at 50% of the project costs (plus additional bonus, if eligible) 16

17 Reference - Program Description and Links FlexTech Program 50% cost share for any energy efficiency-related engineering study (up to $1 million) Program.aspx New Construction Program Incentives for energy efficiency measures in new or substantially renovated facilities. Program-Financial-Incentives.aspx Industrial & Process Efficiency Program Incentives for energy-saving projects in data centers and manufacturing facilities. Programs/Industrial-and-Process-Efficiency.aspx Existing Facilities Program Incentives for energy efficiency upgrades to existing facilities. Programs/Existing-Facilities-Program.aspx Demand Management Program Incentives for peak load reduction projects. Efficiency-and-Renewable-Programs/Commercial-and-Industrial/CI-Programs/Demand-Management-Program.aspx Consolidated Funding Application Online application that must be filled out for all programs. 16

18 Renewable Energy Programs Solar PV Program Financial Incentives A network of contractors provide incentives for installation of grid-connected Solar Electric/Photovoltaic systems Solar Thermal Incentive Program A network of contractors provide incentives for the installation of solar thermal hot water systems for residential and non-residential customers Fuel Cell Program Incentives to support the purchase, installation, and operation of stationary fuel cell electric power generation equipment On-Site Wind Turbine Incentive Program Incentives to install behind-the-meter wind turbines by eligible installers Anaerobic Digester Gas-to-Electricity Program Incentives to install electric generators fueled by digester gas from farms, wastewater treatment plants, and food processing byproducts 17

19 Catherine Luthin (732) Luthin Associates, Inc Energy Management & Energy Efficiency Consulting Services 18