We will increase the amount of Clean DG by 800 MW
Not all power generation has to occur at central power plants. Mini-power plants located close to or at the site of use, referred to as distributed generation (DG), currently contribute 180 MW to our supply. Clean DG uses clean fuels, such as natural gas, and is a more efficient form of energy production because the energy travels a shorter distance to its destination, retaining up to 8% more energy. Clean DG can be even more efficient when it utilizes the waste heat from electrical generation to create hot water, heating, and cooling for buildings, so it is often called Combined Heat and Power (CHP). CHP can be done on a building level or developed as a "mini-grid" for multiple buildings within a small area, known as "district energy."

As a result, Clean DG can produce twice as much energy for the same amount of fuel used by older conventional power plants. This can result in substantial cost savings; new projects that integrate Clean DG can earn back their investment in three to five years, while existing buildings can cover costs in approximately five to eight years.

But this technology is not always compatible with our existing grid. As a result, Con Edison sometimes limits the amount of DG that can be connected. Applications that meet the reliability requirements established by the PSC must still undergo a lengthy 11-step connection process that can take months to complete. Lastly, permit applications to the City have also caused delays for Clean DG projects.

The City will work with Con Edison and relevant agencies to reduce the financial, technical, and procedural barriers related to interconnection in order to achieve, at minimum, 800 MW of Clean DG by 2030.

We will work with Con Edison to expand the amount of Clean DG that can be safely connected to the grid.
This spring, Con Edison will be filing with the PSC for a change in the rates that they charge customers. The City will use this opportunity to advocate that Con Edison study the capacity of individual networks to handle more DG without impacting network reliability and power quality. During the same rate case, the City will also ask Con Edison to study new technologies that would increase the amount of Clean DG that can be safely connected to the grid.

In addition, to improve communications between Con Edison and prospective developers of Clean DG, the City will push for Con Edison to develop an on-line interconnection application tracker that clearly shows what stage interconnection applications are in and sends automatic alerts when delays occur.

Progress (as of 4/22/08):
On September 7, the City filed testimony in the Con Edison Electric rate case advocating for further transparency and coordination to increase the amount of clean DG that can be connected to the electric grid. In December 2007, the City released new regulations for safe use of microturbines, a type of Clean DG. These regulations are first of the kind in the nation and they overcome local regulatory barriers to microturbines and ensure safer installations. In addition, the NYC Department of Citywide Administrative Services (DCAS) completed a study to determine the feasibility of Clean DG on larger City-owned sites, conducted pursuant to Local Law One which will inform the long-term plan of the Energy Steering Committee to reduce greenhouse gas emissions by 30% by 2017. The university partners of the Mayoral Challenge are also looking for ways to increase the use of Clean DG and have many large installations planned.

Progress (as of 10/22/08):
In the Long-Term Plan for Reducing Energy Consumption from Municipal Buildings and Operations, the City’s Energy Conservation Steering Committee identified 30 clean DG cogeneration projects in City-owned buildings at a total investment of $109.7 million over ten years. Once complete, these projects will result in an annual greenhouse gas emissions reduction of 62,433 metric tons.

We will promote opportunities to develop district energy at appropriate sites in New York City
In 2005, Con Edison analyzed the projected energy needs of the Hudson Yards Redevelopment Area. It found that extending the existing steam infrastructure used for heating in Manhattan below 96th Street to reach the Hudson Yards area would be prohibitively expensive-but district energy may be a viable alternative.

At the City's urging, Con Edison is currently overseeing a more extensive analysis of the economic and technical feasibility for a district energy project in the Hudson Yards area. If the study finds that district energy is feasible, the City will seek to implement a district energy plan through Con Edison or independent developers.

In addition, we will require through the building code that new developments larger than 350,000 square feet across the city complete an analysis on the technical and economic feasibility of installing CHP. This analysis will help building owners understand the benefits of CHP and help accelerate transformation of the CHP market.

Progress (as of 4/22/08):
In July, Constellation Energy concluded its initial study of Hudson Yards on behalf of Con Edison and at the request of the City, and found that a district energy facility would be technically and economically feasible. As part of the Con Edison Steam rate case which will continue through summer 2008, the City is continuing to advocate for further study of district energy systems. In the meantime, the City has initiated conversations with development teams for large projects, including Hudson Yards/Javits Center and downtown Brooklyn. The City is in the process of hiring consultants to study the feasibility of district energy at both Hunts Point Food Distribution Center and Willets Point.