A controversial tariff in the US state ofà‚ New Yorkà‚ has discouraged decentralized power generation, according to an Environmental Defense Fund (EDF)à‚ analyst.
Marc Rauch, EDF Senior Specialist in New York Clean Energy Real Estate, wrote this week on The Energy Collectiveà‚ website that the state’s standby tariff is under examination by regulators as they aim to bring existing policies in line with the Reforming the Energy Vision (REV) clean energy initiative, announced last year.
Rauch said the tariff is ‘frequently cited as a major obstacle to distributed power generation (e.g. combined heat and power (CHP) systems, rooftop solar panels, energy efficiency, and storage)’ and has been called ‘an excessive and arbitrary tax on distributed generation’. à‚
New York City’s real estate sector has been the biggest critic of the tariff, Rauch said, with one developer, the Durst Organization, deciding to install on-site generation for a major new residential project as a result of tariff disputes.
According to Rauch, ‘unless the standby tariff is fixed in a manner that clears the way for investment in customer-owned and sited distributed generation, it will be hard to make REV’s revolutionary vision for a decentralized, competitive electricity market a reality’.