Q&A: Dana Levy of NYSERDA on the $100m spur for NYC CHP

Decentralized Energy spoke to Dr Dana Levy of New York State Energy Research and Development Authority (NYSERDA*) about the potential impact of the CHP Accelerator program to New York.

Dr. Levy is the Program Manager for Manufacturing Technology Development & On -site Power Applications in the R&D Group at NYSERDA.

The Combined Heat and Power (CHP) Program provides incentives for the installation of grid-connected CHP systems at customer sites that pay the System Benefits Charge (SBC) on their electric bill.

The accelerated procurement process enables customers to select from a set of pre-engineered CHP modules supplied by approved vendors or the more traditional design/build procurement process specifically for larger CHP systems where requirements are not adequately met by the Catalog Approach.

Applications for installation projects 3MW and smaller accepted until December 31, 2018

Decentralized Energy: What kind of boost do they expect the programme to give to CHP?

Dana Levy: The program seeks, overall, to spur the activities of CHP providers who are active in the NYS marketplace and thereby grow the market to scale.à‚ 

The objective of NYSERDA‘s CHP program is to help CHP solution providers navigate the local nuances of the project development process and learn how to conduct projects better, faster and at a lower cost so that the marketplace can evolve to self-sufficiency in the absence of subsides, and thereby no longer be limited by the extent to which budgets for subsidy are available.à‚ 

A key component to this evolution is the migration toward standardizedCHP modules which help inspire consumer confidence, and thereby reduce customer acquisition costs, as well as deliver more predictable benefits and thereby increase project revenues — two aspects to facilitating the evolution of projects to self-sufficiency in the absence of subsidies.à‚ 


DE: What have similar initiatives already accomplished?

DL: Previous initiatives have helped us pinpoint the emergence of and value associated with standardized or packaged CHP modules as a market-moving feature.à‚  We have been providing incentives and support for CHP since 2000.

We will be investing nearly $100 million in CHP projects over the next three years. à‚ About $41 million of this funding has already been awarded for 53 new CHP systems and will be disbursed as projects are completed.à‚  These projects will offset 200 MW of power — enough to provide electricity to about 150,000 homes — and leverage more than $217 million in private investment.

DE: Will they meet the government target?

DL: Reforming the Energy Vision (REV) is New York Governor Andrew M. Cuomo’s strategy to build a cleaner, more resilient and affordable energy system for all New Yorkers. REV supports the State’s goal to reduce greenhouse gas emissions by 40 percent while generating 50 per cent of its electricity from renewable energy sources by 2030. CHP systems will play a role in helping New York achieve these goals.


DE: What kinds of installations are they hoping to see or already seeing?

DL: While CHP has historically had strong roots in the industrial sector, in New York many of those prime opportunities have already adopted CHP.à‚  New York is now seeing a strong uptake among multifamily and mixed-use (ground floor retail with multifamily residential occupancy on upper floors) buildings as well as hotels.

*NYSERDA, a public benefit corporation, offers objective information and analysis, innovative programs, technical expertise, and funding to help New Yorkers increase energy efficiency, save money, use renewable energy, and reduce their reliance on fossil fuels.

The corporation’s professionals work to protect our environment and create clean-energy jobs and have been developing partnerships to advance innovative energy solutions in New York since 1975.à‚ 

Just recently, NYSERDA was designated as the trusted administrator of the Clean Energy Fund, a 10-year $5 billion fund, which supports clean energy market development and innovation.

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