Energy Storage to Manage Incremental Electric Demand Associated with Increasing Heat Pump Adoption: Central Hudson

Central Hudson is seeking to collaboratively design and implement projects to use energy storage to manage incremental electric demand increases associated with heat pump adoption. In support of NY State’s clean energy and electrification goals, Central Hudson has proposed a significant incremental heat pump program to launch in 2020. Proposed incentive increases aim to increase heat pumps adoption.  As the technology utilization is expected to increase, there may be new opportunities to manage localized peak demands on the coldest days and energy storage is considered one of the technologies that may assist in that load management.

Given heat pump adoption is forecasted to increase but is presently not a problem, this is not a near-term issue; as it may become an issue in the future, energy storage could provide a solution to help customers or the utility manage the electric demand from the heat pumps. As such, mitigation is not an immediate need, but a future possibility generally subject to local development.  If an idea of interest is received through REV Connect, it could result in a demo or pilot project being considered to further test the viability of the solution before a need arises.

The objectives of this opportunity include:

1. Understanding the viability of battery storage to avoid or minimize incremental costs to manage electric loads associated with heat pumps as a primary heating source.
2. Consider potential solutions and business models that will assist in peak load management in Central Hudson’s NWA program adapting to the winter environment and related demand peaks which may differs from those associated with those in the summer.
3. Identify collaborative opportunities between the utility & market partners (vendors, aggregators, contractors) that could result in shared value with customers.

The considered opportunities target new construction or existing structure retrofits of entire developments and/or facilities, which corresponds with the target market for Central Hudson’s heat pump programs. Given the nature of that target population, the requirement is dependent upon future housing expansion in Central Hudson’s territory.

The solution(s) must address the Companies’ responsibility to provide safe and reliable service at reasonable costs to address the need for managing electric heating loads associated with Heat pump adoption in new and retrofit buildings.

Central Hudson issues this request to qualified and experienced contractors with proven abilities to deliver safe, reliable, and cost-effective solutions to work with Central Hudson directly, 3rd party vendors, and/or housing contractors.  In particular, Central Hudson is interested in submitters who are able to encourage developers to use heat pump technology in housing development and demonstrate the ability to work in collaboration with Central Hudson’s existing 3^rd party vendor and developer relationships.

All economical storage technologies. Load management solutions tailored to electric heating systems leveraged most heavily in winter months.

The scalability of this solution, at least for its primary application as described here, is dependent upon new construction developments or full retrofit of existing developments.  Lessons learned could be applicable to other target buildings or demographics in Central Hudson’s territory as heat pump adoption may expand in those areas in the future. Similarly, other New York utilities are similarly seeking to increase heat pump adoption and may in the future face similar needs.

Central Hudson will not consider:

• Non-economical or unproven technologies.
• Solutions that do not comply with customer safety and data security requirements.

Energy Storage may support the continued REV Non-Wires Alternative solutions to manage electric grid peak demand needs that may emerge as a result of increased heat pump use.  The use of an energy storage solution may help realize the proliferation of heat pump technology in support of New York State’s Clean Energy Standard mandate.