Demand Response with Storage Support: Central Hudson

Central Hudson is seeking to collaboratively design and implement projects utilizing energy storage solutions to manage Demand Response (DR) program participant turnover within existing Non-Wires Alternative (NWA) projects. While Central Hudson does not have a system peak concern, there are pockets in the territory that are experiencing peak issues and for which Central Hudson has sought NWA projects. Projects would be located in these areas, known as Central Hudson’s Targeted Demand Management areas.

Although these programs are expected to be fully subscribed in the near-term, energy storage could be utilized to manage attrition or to provide a solution that is less impactful to customer operations. In other words, mitigation is not an immediate need, but a future possibility.  If an idea of interest is received through REV Connect, it could result in a demo or pilot project being considered to further test the viability of the solution before a need arises.

The objectives of this opportunity include:

1. Consider potential energy storage solutions, design, and business models that will assist in peak load management in targeted locations as churn and/or attrition occurs within Central Hudson’s DR programs
2. Identify collaborative opportunities between the utility & market partners (vendors, aggregators, contractors) that could result in shared value with customer

Successful results would support the deferral of transmission and distribution (T&D) infrastructure projects while also partaking in broader understandings in policy, compensation, and interconnection.

Proposed solutions should also seek to provide benefit to participating customers – for example, this could include providing benefits during times where the storage is not being discharged for DR.

This solution would be targeted at large C&I (300kW and up) located within Central Hudson’s Targeted Demand Management areas, of which Central Hudson has up to 5 total customers.

The solution(s) must address the Companies’ responsibility to provide safe and reliable service at reasonable costs to address the need for managing peak demands and the potential for customer DR program attrition.

Central Hudson issues this request to qualified and experienced contractors with proven abilities to deliver safe, reliable, and cost-effective solutions to work with Central Hudson directly or 3rd party contractors – currently, Central Hudson is contracted with Itron to administer its DR programs in NWA areas.

All economical storage technologies. Existing distributed generation sites may facilitate easier interconnections.

As described above, there is a relatively small number of large customers within Central Hudson’s 3 Targeted Demand Management areas.  However, lessons learned could be applicable systems of different scales or to other New York DR or NWA programs.

Central Hudson will not consider:

• Non-economical or unproven technologies.
• Solutions that do not comply with customer safety and data security requirements.

Energy Storage solution will support the continued REV Non-Wires Alternative solutions in collaborating to develop innovative solutions for managing electric grid peak demand needs.