As the market begins to experience rapid shifts, certain sectors are facing greater scrutiny while others are embracing new distributed energy opportunities.
Reforming the Energy Vision (REV) is one of New York State’s most ambitious and comprehensive energy initiatives to date. Announced in 2014, the REV aims to re-shape the way energy is generated, transported, and consumed, with the goal of reaching 50% renewable energy production by 2030 and making New York a leader in energy innovation.
The Distributed Energy Resource (DER) Boom: The New York Public Service Commission is seeking to create a new regulated energy service provider – distributed energy resource providers (DER) – through the creation of a UBP for DER providers. Examples of DER providers are companies providing residential rooftop solar systems, on-site generating systems for small business, large community-solar projects, or other community distributed generation (“CDGs”). REV seeks to position New York as the ‘clean economy’ leader – but its focus on behind-the-meter resources (e.g. on-site generation, microgrids, feed-in solar) and community-based resources (e.g. community choice aggregation; shared solar) is also an effort to prevent the devastation caused by Hurricane Sandy. Through agencies like NYSERDA and the Green Bank, New York is putting billions of dollars on the table to build a more resilient energy infrastructure.
Utilities vs. the Market: Seeking to avoid the telecom industry’s so-called ‘death spiral’, utilities are seeking to maintain their position as the gatekeeper while businesses are pushing back with concerns about stifling innovation. Tensions are likely to continue throughout REV implementation.
New Compensation Mechanisms: Recognizing the need to update its methodology for compensating generation connecting to the grid, the NYPSC is shifting to a system which reflects demand and location-based value (“VDER Methodology”). This means a shift to real-time data technology and new business opportunities as well.
Aggregated Energy: Municipal purchasing is a growing trend and will impact ESCO marketing practices. CCA programs have the potential to secure a large number of customers at relatively low marketing costs. This, in turn, could create the scale to accelerate deployment of value-added services such as home energy management.
Assist Existing Energy Suppliers Navigate the Rapidly Evolving DER Market
- Work with clients to update business models and update customer sales agreements to anticipate and adjust to costs related to new renewable purchasing regulations;
- Help ESCOs pivot their energy supply models to take advantage of emerging opportunities such as RFPs;
- Provide regulatory guidance for emerging DER and Renewable Energy Providers;
- Help clients apply for State and Agency financing, and draft power-purchase agreements;
- Continually monitor relevant agency proceedings and provide analysis of likely impact.
- Pro bono counsel to the largest national nonprofit solar installer for low and middle-income customers;
- Counsel to a distributed energy company named by CNBC as a 2017 “Market Disrupter”;
- Work with one of New York’s largest government-relations consultants to represent supplier interests.