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Exploring NPAs: National Grid

Description of Utility Need

National Grid is looking to learn more about potential demand side resources (Non-Pipeline Alternatives or NPAs) to address natural gas system constraints in its Downstate New York (DNY) service territory. This exercise excludes supply-side resources (e.g. hydrogen blending, renewable natural gas or compressed/liquefied natural gas). This process will inform an RFP yet to be released.

 

Technologies and methodologies that can be applicable as demand-side NPA investments include any technologies that reduce the need for natural gas from current or future customers. This may include solutions like demand response, conservation or energy efficiency, and electrification, or other solutions that we have not listed. NPA projects can include these and other investments individually or in combination to meet the specified need in a cost-effective manner.

 

The focus for these solutions is for Kings (Brooklyn), Queens, Nassau, and Suffolk counties. We are seeking responses that remove gas demand entirely, reduce overall daily gas demand, reduce gas demand during the peak hours of 6-10 AM or 4-8 PM, and/or change the time when energy consumption takes place over the course of a day. We refer to these as load removal, load shedding, peak shedding and load shaping, respectively. To represent the DNY service territory, we have outlined three scenarios. We are asking participants to respond to at least one of the following scenarios:

  • Commercial/Industrial Park
    For a new or existing industrial or commercial park, there are 1 – 10 large customers that utilize natural gas to perform commercial and industrial processes.
  • Dense Mixed-Use Neighborhood
    This city block includes 10 residential homes, 2 5-unit multi-family homes, and 2 small retail spaces.
  • Light Density Residential
    For a new or existing residential development, there are 5-15 residential homes where customers utilize natural gas for heating and cooking.

 

To support the development of solutions, National Grid has provided average energy use data for the customer types included within each of the outlined scenarios below.

 

Approximate Annual Energy Usage per Customer
Customer Therms/Customer
Large C&I Customer 79,000
Single Family Residential 700
Multi-family Residential 18,700
Small Retail Commercial 5,700

 

Potential respondents may submit questions to National Grid by Xpm on XX/XX/2021. The responses to the questions will be shared with all potential respondents to ensure sufficient context and common information to support solution development.

Expected Impact

The desired solution will lead to:

  • Reduced natural gas demand to address gas system constraints in DNY through one or more of the following:
    • Load Removal – A previously used or planned natural gas service is no longer needed at a customer site due to all energy needs being met through other means
    • Load Shedding – A reduction in the overall daily natural gas demand is produced. Solutions that would be able to deliver load shedding during the coldest days of the year would be prioritized as proposals do not need to deliver load shedding every day
    • Peak Shedding – A reduction in overall natural gas demand during peak hours (6-10AM or 4-8PM) is produced. Solutions that would be able to deliver peak shedding during the coldest days of the year would be prioritized as solutions do not need to deliver peak shedding every day
    • Load Shaping – A change in the timing of consumption over the course of a day without reducing the overall daily natural gas demand. Solutions that would be able to shift timing of consumption outside of peak hours would be prioritized
  • Information to support the potential broadening of utility programs to include new technology (I.e. weatherization) offerings, innovative business models or fuel switching to cleaner fuels.
  • A thorough understanding of the demand-side NPA technologies available and how those specific technologies could be deployed. This may include information on customer adoption approaches and the likelihood of customer adoption, highlighting any need for interface with the gas network, timeline for implementation, GHG emissions reduction potential and any pain points in deploying a solution (i.e. permitting).

Target Customers and/or Applications

As outlined in the need statement we are looking to learn about solutions for residential, multi-family, and/or commercial and industrial customers.

The geographic area of interest is National Grid’s DNY service territory including Kings (Brooklyn), Queens, Nassau, and Suffolk counties. Staten Island is not included as capacity constraints are not anticipated there.

Types of Partnerships and Solutions Being Considered

National Grid is open to various partnership models and plans to ask respondents to share their desired contract terms.

Funding Pathways

For solutions that would replace infrastructure investments, compelling solutions may be funded using National Grid’s capital budget. For proposals that produce reductions in gas demand but would not replace infrastructure investments, National Grid hopes to explore and consider these solutions but has not secured a funding pathway at this time.