Con Edison Demonstration Project with GI Energy to Test Innovative Battery Storage Business Model
GI Energy has been selected by Con Edison, the utility that serves New York City and Westchester County, NY, to participate in an energy storage demonstration project, partnering with Smarter Grid Solutions who will provide an Active Network Management (ANM) control solution. GI Energy will install four 1 MWh/1 MW lithium-ion batteries and one 400 kWh/200 kW zinc-manganese dioxide battery on the properties of Con Edison customers. These customers will receive lease payments. The batteries will be located ‘in front-of-the-meter’ (FTM) and the host customers’ electric bills will not be affected.
The innovative business model gives Con Edison priority dispatch rights to the batteries during times of high demand for electricity, helping the company maintain its reliable service. When Con Edison does not need the stored power, GI Energy will dispatch the batteries, maximizing secondary revenue streams, including taking advantage of upcoming changes in New York Independent System Operator (NYISO) regulations that will allow batteries to participate in more markets.
GI Energy will work with financing partners to fund the battery purchases. Con Edison will pay a fixed quarterly fee for its priority dispatch rights. The model is scalable both within Con Edison’s service area, as well as in other utility and ISO territories.
The project is consistent with New York State’s Reforming Energy Vision initiative, which is changing the way energy is generated and consumed.
Smarter Grid Solutions’ leading control and automation platform, ANM Strata, will manage the batteries. The batteries will be used in the provision of services to Con Edison and in the wholesale market operated by NYISO.
“Our demonstration project will explore the benefits ‘front-of-the-meter’ energy storage at customer sites can produce for the hosts, our customers and the grid,” said Matthew Ketschke, Con Edison’s vice president, Distributed Resource Integration. “It is another of our programs to support the Reforming the Energy Vision initiative and lead the transformation to a cleaner energy future with new products, services and choices for customers.”