Avangrid Networks (“AVANGRID”) and its operating companies, New York State Electric and Gas (NYSEG) and Rochester Gas and Electric (RG&E), have a commitment to build and operate energy infrastructure that benefits local communities, improves economic development, and delivers environmental sustainability for future generations. In addition to this, AVANGRID is committed to working with developers, customers, and communities within our service territory to advance local policy and climate goals.
AVANGRID is seeking to collaboratively define and implement an innovative energy storage market solution to enhance one of AVANGRID’s ongoing REV Demonstration storage projects: Aggregated Behind-the-Meter (BTM) Battery Storage. The project is being implemented within NYSEG’s Energy Smart Community (ESC) in Tompkins County, where many innovative technology investments, data acquisition techniques, and customer and market enablement approaches are currently being tested.
Specifically, AVANGRID is seeking a partnership to re-use the existing storage assets after the current demonstration period concludes in April 2021. AVANGRID is looking for market-based partnership solutions to leverage the storage units that have been deployed as part of the project in a way that delivers ongoing value to customers. More information on NYSEG’s Aggregated BTM Battery Storage project can be found under “Background / Related Information”.
The objective of this opportunity is to identify a sustainable and scalable business model for third party ownership and operation of aggregated behind-the-meter storage assets. AVANGRID is open to different types of business models, as long as they can demonstrably deliver value and benefit AVANGRID’S customers, the utility, and society at large.
The targeted customer group is commercial and industrial (C&I). In particular, this project is seeking a long-term partnership model that would leverage the assets that are being deployed in the ongoing Aggregated Behind-the-Meter Storage project. The partnership model should be scalable and applicable to other locations as well.
This pilot project is seeking to identify a market partnership to plan and design an energy storage initiative as identified above. Potential partners should propose a partnership structure that is attractive for a pilot project with consideration for how the pilot will also serve as an example of a scalable model for broader execution of these energy storage initiatives along with external funding opportunities.
Services that meet the objectives defined above. For example, the market partner may choose to purchase the battery storage assets, with an option to continue to provide the customer with demand charge management services, and an option to lease capacity to NYSEG to continue to test additional use cases for network benefit. AVANGRID welcomes any other ownership models after the demonstration period has ended.
This pilot project will inform a replicable market partnership design for deployment of energy storage.
The proposed partnership will develop a solution that aims to improve local and system-wide efficiency, in alignment with the REV Objective to adopt new technologies and approaches to improve the utilization of the grid infrastructure.
Background / Related Information
Through a third-party market partner, NYSEG is installing a mixture of small (~50 kW), medium (~150 kW), and large (~300 kW) battery installations for a range of C&I customers within the footprint of the ESC located in Ithaca, NY. The aim is to enroll and aggregate up to eight customers in the battery storage offering, with a total capacity of approximately 1.06 MW and 4.2 MWh.
Two of these storage systems have been installed and are in operation since December 2018, while the other six are in the final stages prior to construction and expected to be in service by first quarter in 2020. NYSEG remains the sole owner of these BTM battery storage systems throughout the proposed REV demonstration period. Participating customers receive the guaranteed bill-saving benefits of a battery storage system without the upfront cost of installation and in return pay a nominal fee to NYSEG and its partner for these benefits.
NYSEG is the owner of these batteries for the demonstration project. For the REV Connect Energy Storage Innovation Sprint, NYSEG seeks to transfer ownership to a third party and demonstrate business models and partnership structures that can be scalable to a broader set of customers..
Detailed information on the project can be found in the Implementation Plan for the Aggregated Behind the Meter Energy Storage project.
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