What is the BQESI?
As the climate changes, summer is becoming more and more energy intensive. When temperatures rise, people turn on their air conditioners, straining the electrical grid, which is already becoming overburdened by the increasing “electrification” of our society—cars, stoves, and more, which once didn’t rely on the electrical grid, now make significant demands of it.
With this reality, the risk of there not being enough electricity available to go around during periods of peak demand is greater than ever. Those times, usually in the afternoons and evenings in the summer, risk seeing rolling blackouts if the grid’s capacity can’t expand enough to accommodate the high demand.
To avoid blackouts and an overburdened grid, utilities like New York’s ConEdison are experimenting with a wide variety of programs to encourage people to modulate their electricity use in ways that help the grid stay afloat. The Brooklyn and Queens Energy Storage Incentive (BQESI) is one such program. It encourages the development of battery storage systems that can provide the grid with backup power during times of peak demand.
The Specifics
As the name suggests, the BQESI targets large swaths of Brooklyn and Queens that ConEdison has deemed in need of additional storage capacity.
A map, provided by ConEdison, of the Brooklyn Queens Demand Management (BQDM) region, for which the BQESI is applicable.
In these neighborhoods, ConEdison will pay developers to build and dispatch up to 5 MW of capacity in battery storage systems. The systems must be submitted to ConEdison for approval before the end of the year, 2023, and must be operational by May 1st, 2026. The batteries, under the terms of the program, must be available for ConEdison’s use during the Summer Performance Period, from May through September, when electricity is generally in highest demand, for 10 years.
While energy developers like Ecogy Energy will be the direct recipients of ConEdison’s funding, any property owner within the parameters of the program can profit from it, because Ecogy will rent available space within the program boundaries at standard commercial real estate rates. The battery storage systems that will be employed all have approval from the FDNY.
For more specifics on the program, visit ConEdison’s webpage on the subject.
Should You Participate in the Program?
For property owners within its boundaries, the program offers an excellent opportunity to monetize otherwise unused space, where, for instance, a couple unused parking spots or a dumpster might currently sit. But some properties within the program area are better contenders for participation in the program than others.
Ideal properties already have large energy usage, guaranteeing that the grid connections at the site are strong enough to accommodate the addition of the battery storage system. Additionally, large energy users are well suited for the program because during times of peak demand, the energy supplied by the battery will not have to travel far in order to reduce strain on the grid.
Ideal contenders to work with Ecogy in taking advantage of the opportunity will not have the background or expertise to develop the battery storage solutions themselves. Ecogy will develop, finance, own, and operate the battery storage systems, and the property owner will be paid for the use of the space.
The program will be of additional benefit to some site owners if their facilities are subject to Local Law 97. The emissions reductions mandated by that law can be achieved, at least in part, by hosting battery storage systems on or off site. During times when the energy mix being supplied to the grid is composed of relatively high proportions of renewable energy, the battery can be charged. Then, during periods when fossil fuels predominate the energy supply, the battery can be discharged, averting the use of the difference in proportions of fossil fuels between the two periods. This process can potentially aid in preventing some large facilities, like apartment buildings, from racking up expensive fines.
Why Ecogy?
If your property meets the above criteria, then the BQESI is for you. Ecogy will finance, install, own, and operate the battery, and you will reap the benefits in the form of rent payments for your otherwise unused space.
Brooklyn is Ecogy’s home, so we have the local know-how to be your trusted partner, as we have been for a wide variety of organizations, ranging from affordable housing communities to Fortune 500 corporations. We specialize in the development and operation of distributed energy resources—not just limited to solar—of which battery storage is a major one. We are committed to social impact and to helping organizations meet their sustainability goals.
To begin the time sensitive process of utilizing the BQESI to make money, to meet your sustainability goals, and to support grid resiliency, contact us.
