How Environmentally Savvy Buildings Can Cash In

One unexpected Result of the Movement to Decarbonize our Energy Systems is that any Business is now a potential Energy Producer.

More and more Companies are able to Sell Energy from Solar Panels on their Roofs, or earn Revenue by Managing their own Demand, as Decentralized Energy Resources become more Valuable.

Large Users that are able to Adapt their Usage or shed Valuable Energy when Needed are Earning Cash through Utility Programs such as Demand response.

Demand-Response Programs, which respond to Program Signals, are so Valuable to Local Utilities and the Broader Region for Grid Support that the Federal Government recently Ruled to give them a Competitive Edge and Broader Market Opportunities in New York.

Demand Response Programs are being used by some Electric System Planners and Operators as Resource Options for Balancing Supply and Demand. Such Programs can Lower the Cost of Electricity in Wholesale Markets, and in turn, Lead to Lower Retail Rates. Methods of Engaging Customers in Demand Response Efforts include Offering Time-based Rates such as:

- Time-of-Use Pricing

- Critical Peak Pricing

- Variable Peak Pricing

- Real Time Pricing

- Critical Peak Rebates

As Large Energy Consumers, our Commercial and Industrial built Environment will play a Critical Part in Supporting a more Reliable and Sustainable Grid System, and New York is Providing an Excellent Indication of what it can look like when put into Practice.

New York has been a Methodical, Long-Standing Leader in Energy Policy and Regulations, and a Feb. 18th Order from the Federal Energy Regulatory Commission (FERC) further Supports New York’s Vision.

One of the most Significant Outcomes of the Order is that Commercial and Industrial Consumers will No longer need to choose between Utility Retail or Wholesale Markets, such as the New York Independent System Operator Market, in order to Provide Demand-Response Support. Participants can Operate in Both Interchangeably.

It will be more Compelling for Large Commercial Companies operating in New York to Participate in Demand-Response Programs.

More specifically, Commercial and Industrial Users with Resources—such as Building Loads, Energy Storage, and other Assets, that are Capable of Providing Different Types of Demand-Response Services will Benefit from Dual Participation.

Ultimately, it will be Easier to Monetize Energy Assets with Less Risk. For many of the same Reasons, the Change also Benefits the Grid because Participating Assets can Support both the Bulk Power and Distribution System Operations.

New York Enrollment Deadlines for Utilities’ Summer Demand-Response Programs range between April 1st and May 1st, so Commercial and Industrial Building Managers need to act now to Determine their Eligibility. However, NYISO’s Special Case Resources Demand-Response Program enables Enrollment beginning each Month, with Deadlines that fall generally within the First Week of the Month.

The Feb. 18th FERC Order is Not only an Opportunity to Maximize Demand-Response Program Revenue; it also Aligns with other Climate and Building Initiatives already in place. Local Law 90 in New York City places Carbon Caps on Buildings Larger than 25,000 square feet. The Caps come with Fines for Noncompliance and will start to go into effect in 2024. They become Stricter over time, with the Goal of Reducing Building Emissions 80% by 2050.

The FERC Order also will help Commercial and Industrial Buildings, Utilities, and other Stakeholders meet Mandates outlined in New York’s Reforming the Energy Vision (REV) and Climate Act.

The REV Program launched in 2014 following Hurricane Sandy to Provide Incentives for Renewable Energy Resources and New Clean Technologies. The Climate Act is Targeting Net-Zero-Emission Electricity by 2040, among other Major Milestones.

Distributed Energy Resources and Demand-Response Programs, particularly now that they Allow for Dual Participation, can help New York’s Biggest Energy Users maximize Revenue from their Existing Assets and any Distributed Energy Resources that come Online.

The Change might seem somewhat Nuanced, but it is also a Signal for how the State will continue to offer Inspiration to other Energy Markets when it comes to addressing the Climate Crisis.

The FERC Order will Support Energy-use Targets, Supporting the State’s Shift to a Cleaner and more Efficient Energy System, as well as a more Resilient Grid.

CLECK HERE to find your State's Demand Response Programs.










NYC Wins When Everyone Can Vote! Michael H. Drucker