Con Edison auction helps reduce peak time energy grid load
Con Edison recently held its first-ever rewards auction, drawing commitments to help lower peak time energy demand for the summer months in New York.
As a result of the auction, Con Edison anticipates a reduction of 22 megawatts by 2018 in the afternoons and evenings on days when the company requests that customers reduce their energy consumption, a move that will enable Con Edison to postpone a $1.2 billion substation construction project.
“Our Neighborhood Program is all about finding new strategies and technologies to help our customers manage their energy usage and still have the reliable power they need,” Greg Elcock, manager of the neighborhood Program for Con Edison, said. “We decided to test out an auction as a way to encourage customers to help take pressure off our grid and we’re pleased with the outcome.”
Con Edison’s auction used a format in which “demand response providers” submitted figures indicating how much money they wanted for reducing reliance during peak times. Ten offers were selected and accepted by Con Edison, and the providers will pay their bid prices – which ranged from $215 per kilowatt per year to $988 per kilowatt per year – as well as seek out customers who are willing to comply with energy reduction strategies.
