Gas Demand Response: National Grid

National Grid is seeking to develop solutions that will expand adoption of gas demand response (DR) across a variety of customer segments. The selection and scope of solutions will be determined based upon the technology, business model, and benefit-cost analysis. National Grid encourages market partners to propose innovative solutions for partnerships on gas DR.

Two markets have been identified for the implementation of developed solutions: the KEDNY/KEDLI service territory and the “East Gate” region of Albany. These areas have been the focus of gas DR pilots, so the customers are familiar with the concept and are likely to be receptive. Furthermore, they represent two distinct types of service territory. National Grid is only the gas utility in the KEDNY/KEDLI territory, whereas Grid is both the gas and electric utility for the East Gate region. This will serve as a useful testbed for adoption of gas DR in different markets.

Any concepts submitted should be operational by the winter of 2019-2020.

The objectives of this opportunity include:

1. Leveraging the information gained during National Grid’s gas DR pilots to develop a thorough understanding of the potential, challenges, and uncertainty associated with gas DR.
2. Utilizing technology and new business models to provide additional value and insight for both the customer and the utility
3. Developing a solution that can be used by aggregators or market partners to accomplish scale
4. Identifying a program structure that will improve the existing BCA for gas demand response, especially in response to the various incentive programs that exist in NY state.
5. Identifying how gas DR programs can best be marketed to maximize adoption in diverse markets.

National Grid has a long history of trying to provide a spectrum of solutions for each of our customer segments so that their energy purchases can be made in a way that is consistent with their priorities. This has led to the development of several rates, such as the interruptible rate, that provide additional flexibility to the gas network. However, most of our customers are not of the scale where the interruptible rate would be desirable. National Grid believes that many non-interruptible customers will be interested in participating in an incentivized demand response program.

The target customer segments for this initiative will be firm C&I and residential customers. They will be benefited by the incentives while serving as a resource for the gas network.

National Grid is interested in partnerships that include the following elements:

• Reduced capital investment, either via 3^rd party cost-share or through efficiencies
• Desire to utilize technology to maximum effect

See related information for more details.

National Grid is seeking solutions that will leverage technology and mechanical systems to achieve the maximum amount of demand reduction. This may include, but is not limited to, smart thermostats, building management systems (BMS), and solutions that take advantage of thermal storage. In keeping with the objectives of REV, any proposed solution should engage the customer, create investment in technology, and animate the market.

See related information for more details.

In addition to supporting regulatory and company priorities, successful solutions from this pilot will be scalable in such a way that greater economies can be realized with greater adoption.

Expanded gas DR solutions will improve New York’s existing energy infrastructure and help to build a more efficient and resilient system.

National Grid is not considering solutions that would reduce demand for less than a period of four consecutive hours and for fewer than six non-holiday weekdays during the period of Nov 15 through March 15.