Clean Heating and Cooling
New York State utilities are looking to help reduce the substantial greenhouse gas (GHG) emissions from heating and cooling buildings to support the state’s GHG reduction goal of 40% from 1990 levels by 2030. REV Connect is facilitating innovative ideas and business models that work in partnership with utilities to cost-effectively electrify space heating and cooling systems across the state.
Possible utility partnership opportunities could include:
- Offering market-based, low-cost financing options for air source or ground source heat pumps to supplement or replace existing financial incentives from the government or utilities
- Implementing heating, ventilation, and air conditioning (HVAC) programs that target high potential customers identified through utility analytics
- Educating customers on the benefits of electric heating and cooling
- Building and operating community and district projects such as geothermal loop fields
- Increasing the use of utility-managed systems for demand response (DR) of electric heating and cooling systems
CLEAN HEATING AND COOLING INNOVATION SPRINT
REV Connect Innovation Sprints focus attention on timely and specific utility needs for innovative energy partnerships.
The Clean Heating and Cooling Innovation Sprint was completed in April 2018 and described below. Subscribe to our mailing list to stay informed about upcoming activities.
Objectives
- Identify innovative business models to animate the market for Clean Heating & Cooling solutions that can reduce carbon emissions and keep rates affordable
- Identify ideas that could apply to Con Edison’s Clean Thermal RFI (issued June 2018), and provide specific feedback to improve chances for success in the RFI
Outcomes
The New York utilities and New York State presented their interests within this Innovation Sprint during the kick-off webinar on March 6, 2018. Among the interests, top objectives included:
Utility-Specific Interest
| Utility | Propose Ideas Via | Interests |
|---|---|---|
| Central Hudson | REV Connect | Helping customers reduce their carbon footprint by fuel switching in a more affordable way (e.g., bundle heating offerings with pricing and financing options to drive down costs). |
| Con Edison | REV Connect | Identifying new and innovative ways to increase the uptake of clean thermal solutions within the Company’s natural gas service territory as a means of reducing both peak gas demand and greenhouse gas emissions. |
| National Grid | REV Connect | Identifying potential partners to scale air- and ground-source heat pump deployment. Effective outreach to heating retrofit customers, and offerings to bundle heat pumps with EE retrofits. Advanced approaches to Evaluation, Measurement, and Verification. |
| NYSEG and RG&E |
REV Connect | Learning about innovative programs to provide heating options to customers, while leveraging existing programs and platforms with a focus on the Energy Smart Community. |
| O&R | REV Connect | Supporting renewable heating and cooling technologies in areas where gas service is not available. Reducing peak demand in new construction projects in areas with electric demand constraints. |
REV Context
New York is encouraging the decarbonizing of space heating and cooling through the Renewable Heating and Cooling Policy Framework: Options to Advance Industry Growth and Markets in New York, released in February 2017. This initiative allocates $15 million in incentives for residential ($1,500/ton,1-10 tons) and commercial ($1,200/ton, units over 10 tons) heat pumps.
The New York electric utilities also are actively pursuing ways to support electrifying heating and cooling, particularly for controllable resources that are valuable for peak management and DR. In addition, the New York gas utilities are supporting decarbonizing heating and cooling by offering fuel switch programs.
New York electric utilities have the opportunity to propose and earn shareholder performance incentives—known as earnings adjustment mechanisms—for decarbonizing heating and cooling.
Resources
For more information, see:
- Renewable Heating and Cooling Policy Framework for New York [PDF]
- Order Adopting a Ratemaking and Utility Revenue Model Policy Framework [PDF]: Pgs. 90-91 for EAMs on decarbonization of end uses
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