ConEdison Solutions and Viridity Energy, Inc. are working together on a major, new energy demand response offering through the introduction of "energy optimization," a first-to-market, automated, revenue-generating, energy management offering.
The service -- an enhancement to traditional demand response jointly marketed by ConEdison Solutions and Viridity Energy -- allows energy users to effectively transform themselves into energy suppliers (a virtual power plant) when market conditions present such opportunities.
Customers will have the ability to generate revenue year-round by taking advantage of changes in energy market prices. Specifically, when prices rise, energy users will be able to reduce consumption -- and then benefit from ConEdison Solutions' and Viridity Energy's ability to sell the energy curtailment back into the market.
In essence, the customer opportunistically becomes an energy supplier, deriving revenues from its ability to limit energy usage automatically enabled by the ConEdison Solutions/Viridity Energy team. The marginal reductions in energy use are managed in a way that minimizes any impact on customer convenience and comfort.
"For many years, we have worked with smart energy users to help them benefit from price shifts in commodity prices or savings from energy management programs," said Jorge J. Lopez, President and CEO of ConEdison Solutions. "Now, for the first time, these same customers can turn their energy management programs into revenue-generating sources by literally buying low and selling high. This offering brings in dollars for customers by turning users into suppliers."
"Energy Optimization and dynamic load control represent dramatic new dimensions in energy management," said Audrey Zibelman, President and CEO of Viridity Energy. "This service implants a revenue stream squarely in the middle of a cost center. The concept is destined to widely penetrate the energy marketplace. Once it does, you will see chief financial officers of commercial and industrial firms nationwide seeking to share in the rewards."
To implement "Energy Optimization," ConEdison Solutions and Viridity Energy will integrate intelligent software with a customer's building management system and other control devices. They will then control the client's energy-consuming equipment, based on protocols previously agreed to by the client, when a demand response event occurs or when economic market opportunities present themselves. Customers will incur no up-front cost for the installation of the technology.
This capability reduces customer involvement, while enhancing performance. The vendors notify customers when modifications will take place and give customers the opportunity to override the signals, if they so choose.
At present, the Energy Optimization services will be provided in the states and utilities territories served by the following ISO's: New England (NEISO), Pennsylvania New Jersey Maryland RTO (PJM), ERCOT in Texas, and New York (NYISO). ConEdison Solutions will sell the offering in conjunction with its commodity sales operations as a value-added benefit for existing customers and as a way to gain new customers.