ConEd floats big boosts in incentives for energy storage

Source: Colin Sullivan, E&E reporter • Posted: Wednesday, February 5, 2014

NEW YORK — Consolidated Edison Inc. yesterday filed a draft plan with the Empire State detailing how it intends to make up for lost nuclear power partly through energy storage.

The utility delivered a partial contingency plan requested by the New York Public Service Commission as part of the state’s preparation for life after the Indian Point nuclear power station. The plan is subject to review and change.

The 2,040-megawatt plant just north of New York City, which supplies about 20 percent of the city’s electricity, could be shut down by the end of 2016, so the PSC has directed ConEd to prepare the way in case relicensing for the plant fails.

ConEd said it will increase the incentive for office buildings in the city to build in new energy storage options. A thermal storage device, for instance, would receive a $2,600-per-kilowatt credit for on-peak summer demand reduction, up from $600/kW under the current structure.

Battery storage would be eligible for a $2,100/kW incentive, also up from $600/kW. The incentives will be capped at 50 percent of a project’s cost.

In all, ConEd says the energy storage plan would save 100 MW of power, in what is typically known as a load-reduction measure meant to curtail electricity consumption during the busiest periods.

If approved by the PSC, the proposal would be run jointly by ConEd and the New York State Energy Research and Development Authority.

Aside from energy storage, New York is preparing to replace Indian Point’s base load by expanding use of renewables and gas and building power lines to access plentiful hydropower in Canada (EnergyWire, Jan. 31).