This is an abridged version of a seminar I delivered at the Israel Smart Energy Association in April on REV (Reforming the Energy Vision), which is transforming the utility function and business model in New York State.
6. New York Independent System Operator
(NYISO): not-for-profit with 3 main functions
1. Operates the high-voltage
transmission network
- 11,000 miles of high-voltage transmission
- ~34,000 MW peak demand
- ~42,000 MW total supply capacity
2. Administers and monitors the
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2. Administers and monitors the
wholesale electricity markets
- Trading over $11 billion in electricity and
related products annually
- Monitors and prevents manipulative activity
3. Plans for the state’s energy future
- Conducts long-term assessments of
electricity resources and needs
7. New York City and Westchester Utility Energy System
• Service Area: 604 square miles
• Serving 3.4 million customers,
10 million people
• 2.5 million customers are in
networks
• System is 87% underground and• System is 87% underground and
13% overhead
• NYC: 235 MW/sq mi; Territory
20MW/sq mi
• 133,000 miles of T&D cable (over
96,000 miles are underground)
• 13,322 MW peak demand (5pm)
• 57,000 million kWh consumption
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9. REV – Reforming (NY) Energy Vision
NYS energy Goals for 2030
50%
of Electricity
Generation from
23%
Increase in
Statewide
40%
Reduction in GHG
Emissions from
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Generation from
Renewable Energy
Resources
Statewide
Energy
Efficiency in
Buildings
(6 trillion btu)
Emissions from
1990 Levels
11. Why do utilities want customers use less energy?
Load Duration Curve
100%
75%
PercentageofPeakDemand
11
50%
PercentageofPeakDemand
12. Energy Efficiency (environment/CO2)
HourlyDemand(MW)
Demand curve with
energy efficiency
implemented
Baseline
Energy Efficiency & Demand Management
EE provides
sustained
reduction in
demand
Demand Management (network infrastructure)
HourlyDemand(MW)
Hour of Event Day
Hour of Event Day
12
DM provides
demand relief
during a targeted
timeframe
13. NYS Electric System – Future REV State
Large Scale G&T – market based Distribution – Utility owned, operated
13
Con EdisonNYISOGen
Customer sided DERs – market based
DER
Market
5
15. REV Model for Utilities to Profit
Five System Efficiency & Energy Efficiency EAMsSystemEfficiency
&EnergyEfficiency
EAMs
Program-based
System Peak MW
Reductions
GWh Savings
SystemEfficiency
&EnergyEfficiency
EAMs
Outcome-based
DER Utilization
Customer Load Factor
Energy Intensity
Other
EAMS
15
18. Brooklyn-Queens Demand Management Program
Defer $1.2 billion in network upgrades with distributed solutions
• $200M DER incentive
program
o Customer-sited (41
MW, $150M)
o Utility-sited (11 MW, Targeted area
REV Principles in practice
o Utility-sited (11 MW,
$50M)
• 80+ responses to RFI;
40+ bidders in first-of-
kind DR Auction
• Nontraditional earnings
opportunity
18
Targeted area
(4 networks)