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New Approaches For Storage As Viable Cost-Effective Measures For Customer-Sited Non-Wire Alternative Solutions: PSEG Long Island

New Approaches For Storage As Viable Cost-Effective Measures For Customer-Sited Non-Wire Alternative Solutions

Description of the Partnership Opportunity

PSEG Long Island plans to analyze all new capital projects for feasibility of non-wire alternative approaches.  Presently, storage suffers in these analyses due to high cost and lack of a clear market delivery mechanism by which potential customers will be engaged by providers of mutually beneficial storage solutions. PSEG Long Island is interested in receiving proposals on unique business models and approaches which will serve to reduce overall utility incentive and customer costs which PSEG Long Island should use in its modelling and/or increase the confidence level that such measures could reliably be counted on to materialize in the event of a Non-Wires Alternative (NWA) solicitation.

This opportunity is specific to customer-sited storage. PSEG Long Island has a similar opportunity related to utility-sited storage.

Top Goals and Objectives of This Opportunity

Reliably increase the cost effectiveness and feasibility of storage options as mitigation measures for customer sited NWA analysis screening.

Target Customers and/or Applications

Both Residential and Commercial applications will be considered. PSEG Long Island anticipates a third-party would be the Aggregator or interface between the utility and the actual customer with collocated storage.

Target NWA regions in Long Island are part of PSEG Long Island’s Super Savers program (see PSEG Long Island’s 2018 Utility 2.0 filing for more information on Super Savers).

Partnerships being Considered

PSEG Long Island seeks initially input and demonstrated feasibility on actual solutions and models that meet these objectives.  It is anticipated that during the upcoming year these inputs would support an NWA analysis which may result in an actual solicitation and/or pilot project(s) to demonstrate what could be future implementation.

PSEG Long Island is seeking business models that include third-party part or whole ownership and operation of the storage assets or in which the third-party is acting as an aggregator of customer-owned assets.

Solutions Being Considered

Unique business models and/or trade ally partnerships which can be reliably counted upon to be resultant solutions in an NWA implementation effort at the penetration and cost levels modeled.

Potential Replicability and Scalability

If proven, business models determined from this Innovation Sprint could be expanded to all future NWA analyses.

Solutions Not Being Considered

PSEG Long Island is not considering ideas that would require:

  • Sole utility ownership
  • Sole utility financing
Primary REV Objective

Ideas submitted to this opportunity will help PSEG Long Island in supporting their portion of NY State’s energy storage goals by animating the market for new storage resources. This will also support system wide efficiency by using storage for NWA applications.

Background / Related Information

DLM Tariff: Section XIII of LIPA Tariff beginning with Leaf 327

2018 Utility 2.0 Filing, including information on behind-the-meter storage incentives and Super Savers.

2019 Utility 2.0 Filing, including proposed pilot programs to increase adoption of distributed energy resources, such as the Energy Concierge and On-Bill Financing

Energy Storage Innovation Sprint

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