Description of Utility Need
PSEG Long Island is seeking innovative business model approaches and providers to non-wires solutions (NWS) to help defer transmission and distribution infrastructure projects, particularly energy storage solutions that also help to achieve the Climate Act goal of 188 MW of storage on Long Island by 2025. Examples of potential solutions for these needs include community storage and customer-sited storage located on constrained circuits. The result of this effort we hope will allow us to identify more opportunities for solicitation for NWS by increasing the number of capital projects which screen as cost-effective for solicitation of potential NWS.
Expected Impact
PSEG LI is looking for lower-cost business model solutions to consider when screening for alternative capacity relief by enabling greater integration of distributed resources and to defer or avoid infrastructure costs of traditional wire solutions by targeting constrained network locations. Solutions may also provide benefits such as bill savings and backup power to participating customers. PSEG Long Island has previously faced challenges in having available land to site storage on target circuits, and desired solutions will address the barrier of land availability.
If PSEG Long Island is able to receive indicative cost information related to new business models related to storage and other NWS, PSEG Long Island would hope to offer new solicitations for NWS which respondents would be able to participate in.
Target Customers and/or Applications
Solutions may target residential, commercial, and/or industrial customers.
Types of Partnerships and Solutions Being Considered
Deployment models of interest include:
- Community storage systems located on constrained circuits that allow customers to purchase shares of a system. The systems may be operated in a manner that maximizes grid value, with customers receiving reduced demand charges proportional to the quantity of shares purchased.
- Customer-sited systems located in front of the meter, which provide backup power service to hosts on target circuits in exchange for hosting batteries on their property. The systems may be operated to maximize grid value during normal operation, with backup power to the host customer during system outages.
- Other innovative NWS resources which promote active customer participation.
PSEG Long Island may consider various partnership structures, including owning assets or paying performance-based incentives to NWS resources for providing grid services.
Ideal submitters will have demonstrated cost-effective and commercially available solutions, rather than submitting an unproven concept.
Funding Pathways
Compelling solutions may be considered for incorporation into proposed funding for PSEG Long Island’s 2021 Utility 2.0 Plan, which will be submitted in mid-2021. They may also be eligible for non-wires solutions RFPs.
