Consolidated Edison (Con Edison) deployed energy storage in its service territory, examining two important cases: a 2 MW, 12 MWh energy storage system installed at a substation; and an aggregated approach composed of a number of small, customer sited PV + storage units. These units were distributed around Con Edison’s service territory and could be controlled collectively as a virtual power plant (VPP). The company was interested in understanding the potential value streams from energy storage’s participation in New York Independent System Operator (NYISO) markets. The analysis considered a variety of market and regulatory scenarios and the impacts of a variety of duty cycles on battery performance over time.

Goals

• Characterization of the two types of energy storage systems being deployed, in terms of the technical capabilities, base duty cycle (for instance, peak shaving operation), and capability to conduct additional operations over the base duty cycle.
• Characterization of potentially optimal use cases for the two systems, with optimization around annual revenues and dispatch to account for technology characteristics, including lifecycle impacts.
• Characterization of market conditions for viable participation by the two systems.
• Exploration of trade-offs between market revenues, battery degradation effects, and initial and replacement costs, using tools under development through separately funded projects.
• Enumeration of grid services (such as: energy time shifting, addressing the capacity market, ancillary services, NYISO demand response, and Con Edison distribution-level demand response programs) that are likely to generate the maximum revenue from the resource owner perspective.