August 9, 2018

A planned three-year REV (Reforming the Energy Vision) demonstration based in Ithaca, NY will explore the potential benefits of aggregated behind the meter energy storage for third-party customers and company stakeholders alike.


NYSEG (New York State Electric & Gas Corporation), a subsidiary of Upstate New York & New England energy titan AVANGRID, will engage with third-party market partners to install a variety of small (50kW), medium (150kW), and large (300kW) batteries for Commercial & Industrial customers in the company’s Energy Smart Community.


The company will retain sole ownership of the batteries, whilst guaranteeing bill savings, via demand charge reductions, for their customers, who will pay a subscription fee in exchange for the provision of these services.


Despite strong growth in places like California and Hawaii in recent years, aggregated behind the meter energy storage has remained virtually nonexistent in the state of New York as a result of numerous issues concerning cost and size limitations. Now, over the course of a proposed three-year demonstration project, it is hoped that the potential benefits, and possible drawbacks, of aggregated behind the meter energy can be explored in-depth to ensure future growth in this area.


The company is keen to explore a number of potential avenues of growth, with the core aim of providing benefits to all parties participating in the project. In addition to encouraging the distribution of resources, along with a revamp of the state’s utility framework, NYSEG is keen to assist customers in bypassing the financial and institutional barriers that would have traditionally held them back from joining the battery storage and demand response markets.


The plan is for NYSEG’s market partners to finish the installation process sometime in mid-2019, with an ultimate view to wrapping up the REV demonstration project in 2021. The company projects revenues of $112,000 across three years for the $7 million dollar project.


Essentially, the goal is to find a way to make battery storage an economically viable pursuit in the state of New York, identifying new value streams in demand response markets for stakeholders, as well as providing customers with a noticeable reduction in their energy bill. In systemic terms, the desired outcome is a cost-effective reduction in energy use, system peaks, and distribution circuits.


By Shane Croghan