The multi-resource microgrid will be implemented at the 625-unit Marcus Garvey Apartments in Brooklyn, owned by L+M Development Partners, a large owner/developer of affordable housing.
The microgrid comprises a 400-kW solar PV system and 400-kW fuel cell, supported by 300-kW / 1,200-kWh lithium-ion batteries and controlled by Demand Energy's Distributed Energy Network Operating System (DEN.OS), which optimizes how these resources interact and perform.
The system will reduce the property's power consumption by managing the generation and storage of renewable energy to save money through demand charge reduction. It will also provide resiliency during an outage, lower operational cost, deliver essential load relief for Con Edison, and help reduce greenhouse gas emissions.
A key technical aspect of the project is the ability of Demand Energy's DEN.OS to ensure that the housing development self-consumes any energy it generates, without exporting to the grid. This capability directly aligns with Con Edison's BQNP requirements, which facilitated the interconnection and permitting process.
Electric load relief is needed in New York City during peak summer periods to avoid over-taxing existing substation resources, which can lead to power interruptions and cutbacks.
L+M has made significant investment in Marcus Garvey Apartments, a 625-unit low-income complex in the heart of Brownsville, which is the primary substation strained by summer operations. The operational savings will enable L+M to place additional funding toward programs that enhance quality of life for tenants.
L+M Development Partners project manager Josh Weisstuch said: "L+M is excited to integrate this intelligently controlled, energy storage-based microgrid system at Marcus Garvey Apartments.
"This installation is an important part of a portfolio-wide effort to use renewable energy to enhance property sustainability and residents' quality of life in line with our double bottom line approach to development."
Demand Energy Global Sales vice president Doug Staker said: "This high-value microgrid is a flagship system for New York City and for the partners involved.
"The project is impressive for many reasons: it will save money, reduce load, ensure reliability, integrate renewables, and decrease emissions. It's also being financed through non-recourse debt, which is standard in the solar industry but far less common for storage projects."
The New York City Energy Efficiency Corporation (NYCEEC), a non-profit finance company that offers loans and alternative financing solutions for energy efficiency and clean energy projects, provided a 10-year project loan.
L+M and Demand Energy have agreed on a "shared savings" operating model to cover debt service and share in revenue generated, allowing both to collaborate to produce the greatest return possible.
New York-based GridMarket worked closely with Demand Energy to successfully present the project to L+M.
GridMarket CEO Nick Davis said: "This is an innovative project with tremendous benefit to the customer, the community, and a constrained electric grid. Demand Energy expertly navigated technical and financial complexities to win the deal through GridMarket's marketplace, creating a blueprint for future installations."
Demand Energy's DEN.OS is an intelligent software control platform that reduces peak demand while maximizing economic returns from behind-the-meter storage systems alone — or in combination with distributed generation resources, such as fuel cells and solar PV.
Demand Energy has been deploying energy-saving, revenue-generating storage systems in New York since 2011, and was recently awarded additional projects under Con Edison's ongoing BQNP procurements.
Con Edison's BQNP is the largest and most comprehensive non-wires alternative distribution project in the country. The utility's goal is to delay the need for a new $1.2bn substation, largely using demand-side resources such as energy storage, energy efficiency and demand response.
This storage-based approach provides significant savings, reduces emissions, and accelerates implementation of a more flexible and sustainable solution.
