Distributed Energy Alternative to Electrical Distribution Grid Expansion in Consolidated Edison Service Territory

The nation's power grid, specifically the New York region, faces burgeoning energy demand and suffers from congested corridors and aging equipment that cost New York consumers millions of dollars. Compounding the problem is high-density buildup in urban areas that limits available space to expand grid capacity. Coincidently, these urban areas are precisely where additional power is required. DER in this study refers to combined heat and power (CHP) technology, which simultaneously generates heat and electricity at or near the point where the energy will be consumed. There are multiple CHP options available that, combined with a portfolio of other building energy efficiency (EE) strategies, can help achieve a more efficient supply-demand balance than what the grid can currently provide. As an alternative to expanding grid capacity, CHP and EE strategies can be deployed in a flexible manner at virtually any point on the grid to relieve load. What's more, utilities and customers can install them in a variety of potentially profitable applications that are more environmentally friendly. Under the auspices of the New York State Energy Research and Development Authority (NYSERDA) and the Oak Ridge National Laboratory representing the Office of Electricity of the U.S. Department of Energy, Gas Technology Institute (GTI) conducted this study in cooperation with Consolidated Edison to help broaden the market penetration of EE and DER. This study provides realistic load models and identifies the impacts that EE and DER can have on the electrical distribution grid; specifically within the current economic and regulatory environment of a high load growth area of New York City called Hudson Yards in Midtown Manhattan. These models can be used to guide new policies that improve market penetration of appropriate CHP and EE technologies in new buildings. The following load modeling scenarios were investigated: (1) Baseline: All buildings are built per the Energy Conservation Construction Code of New York State (No CHP applied and no EE above the code); (2) Current Policy: This is a business-as-usual (BAU) scenario that incorporates some EE and DER based on market potential in the current economic and regulatory environment; (3) Modified Rate 14RA: This economic strategy is meant to decrease CHP payback by removing the contract demand from, and adding the delivery charge to the Con Edison Standby Rate PSC2, SC14-RA; (4) Carbon Trade at $20/metric tonne (mt): This policy establishes a robust carbon trading system in NY that would allow building owners to see the carbon reduction resulting from CHP and EE