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Electric Heat Initiative: National Grid

Electric Heat Initiative

Description of the Partnership Opportunity

National Grid is coordinating an Electric Heat Initiative to encourage customers to convert to highly efficient electric heating systems when replacing older, less efficient, and more carbon-intensive heating equipment. Transitioning to efficient electric heating systems will reduce carbon emissions and improve system-wide efficiency. Electric heating systems can also avoid new gas demand in constrained areas.

In support of this initiative, National Grid is seeking relevant submissions through REV Connect that may be considered for demonstration and other projects. National Grid will also consider Clean Heating & Cooling solutions that do not fall within the scope of this initiative.

Top Goals and Objectives of This Opportunity

The objectives of this initiative are to provide benefits to both customers and National Grid through efficient electrification of heating. Participating customers may realize energy savings through more efficient heating and cooling with lower-cost fuels, as well as a smaller footprint, improved convenience and safety of heating systems and reduced maintenance requirements. Other customers will realize benefits via reduced emissions from cleaner and more efficient heating, as well as reduced energy bills due to improved equipment efficiency.

National Grid will also benefit from the impacts of this initiative, including through increased system utilization and the achievement of Earnings Adjustment Mechanisms. Furthermore, National Grid can help to improve its engagement with customers by offering these types of solutions.

Target Customers and/or Applications

National Grid is open to solutions targeting customers from any segment (i.e., single- and multi-family residential, as well as C&I). The most suitable customers who do not currently have economical access to the gas service and are using fuels such heating oil, kerosene propane or electric resistance for heating. In particular, solutions that target low and moderate income (LMI) customers and small- and medium-sized businesses (SMB) are of interest to align with National Grid’s broader efforts to improve engagement with these customers. National Grid has about 1 million homes in its service territories that are over 200 Feet from gas main and heated with oil, propane and electric heat that can benefit from electrification and support NY with 80 x 50 carbon goals.

Partnerships being Considered

National Grid is interested in partnership structures with one or more of the following elements:

  1. Shared savings
  2. Aggregation of environmental attributes, utility or other incentives and tax incentives
  3. Utility ownership of infrastructure or energy service equipment
  4. Solutions as a service

National Grid may consider more traditional solutions under the umbrella of the Electric Heat Initiative, but they may not be a good fit for REV Connect.

Solutions Being Considered

National Grid seeks complete solutions that offer cleaner, more renewable, and more efficient electric heating technologies. This may include:

  1. Geothermal / ground-source heat pumps, cold-climate air-source heat pumps, and/or renewable- heating systems with or without domestic water heating capability, including any required replacement of modification to or combination of heating or cooling distribution systems
  2. Solutions that maximize the value of efficient electric heating systems, including solutions with integrated renewable energy production, connected smart systems, direct load control, and/or transactive energy capabilities.
Potential Replicability and Scalability

National Grid seeks complete commercially ready solutions with proven technologies and cost-effective business models that can be scaled up. Projects supported through the Electric Heat Initiative will provide a foundation for broader and longer term rollout of solutions to National Grid’s customers. Demonstration projects will inform future programs, and successful projects may scaled up across National Grid’s customer base.

Primary REV Objective

National Grid’s Electric Heat Initiative supports a broad array of REV Objectives. While key objectives include reduced carbon emissions and improved system-wide efficiency, this initiative will also support other objectives such as enhanced customer knowledge and capabilities, as well as improved fuel and resource diversity.

Solutions Not Being Considered

National Grid is interested in direct heating solutions that are safe and ready for commercial deployment within 1 year and will comply with relevant codes, standards and product certifications and with supported by designated installation, maintenance and repair service providers. Pre-commercial / unproven technologies are not a fit for this initiative nor are energy production systems that are not integrated with a heating system.

Background / Related Information

Clean Heating and Cooling innovation opportunity: nyrevconnect.com/innovation-opportunities-clean-heating-cooling/

National Grid utility profile: nyrevconnect.com/utility-profiles/national-grid/

NYSERDA Renewable Heating and Cooling Policy Framework:
nyserda.ny.gov/-/media/Files/Publications/PPSER/NYSERDA/RHC-Framework.pdf

REV Connect’s Clean Heating & Cooling Innovation webinar held on March 6, 2018

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