NYSERDA Awards $6 Million in Power Deliveery R&D Projects: Efficient, Reliable Electric Grid, Reduced Emissions are Goals

February 4, 2008

Albany, NY—The New York State Energy Research and Development Authority has awarded 14 contractors nearly $6 million in funding to pursue development of advanced technologies that will improve the efficiency and delivery of power for electric customers across the state. The projects range from first-of -a-kind superconductor cable installation in Manhattan, to transmission line fault-detecting software and a unique underground compressed-air energy storage project near Watkins Glen in the Finger Lakes Region. Together with matching funds from contractors, the collective program value is $60 million (see attached chart for locations and amounts).

Paul D. Tonko, NYSERDA President and CEO said: “The projects will be conducted over the coming years by nationally recognized, top-level researchers, engineers, corporations, universities and utilities here in New York. These investments will help us meet Governor Spitzer’s goal to reduce electric demand by 15 percent by 2015, strengthen the reliability of the New York grid and have the potential to benefit electric customers around the world.”

The largest project, valued at $37.5 million, will demonstrate a new way to tie isolated ConEd distribution load islands together with sophisticated cable that can significantly reduce customer power outages. Known as Project Hydra, it will be a first of its kind demonstration of a superconducting cable that links two area substations within severely congested distribution networks. ConEd is partnering with the U.S. Department of Homeland Security and American Superconductor to develop the cable technology that reduces distribution network energy loss and protects substation equipment from fault-currents (short-circuits). NYSERDA is contributing $1 million and anticipates that the technology could be applied in network distribution circuits in downtown Albany and Buffalo.

The second largest project also involves superconducting cable development by SuperPower, Inc., Schenectady, unit of Royal Philips Electronics, NV. In this project, a prototype superconducting fault-current limiter for use in high-voltage transmission cable will be designed, built and tested. This technology could significantly improve the overall reliability of the transmission system statewide. Teamed with SuperPower are Sumitomo Electric Industries, Linde Gas, American Electric Power and Oak Ridge National Laboratory; the project makes use of SuperPower’s second generation of high-temperature superconducting material for transmission-level applications. NYSERDA is providing $500,000 toward this initiative.

A $4.4 million Smart Grid pilot project with Orange and Rockland Utilities, Inc. would upgrade West Nyack area substations and associated distribution circuits to perform as “intelligent” networks with advanced sensors, field devices, on-line decision-making software and improved communications. It would automatically restore power after disturbances, minimize losses and maximize customer service reliability. NYSERDA is contributing $1 million to the project that will further complement O&R’s advanced metering initiative for customers throughout the service territory.

Fourth is a New York City local grid project with Innoventive Power, LLC, Chevy Chase, MD, ConEd, and Verizon that will enhance the ability of customer-owned demand-response resources, such as on-site emergency back-up generation, to reduce peak demand within critical load pockets. Thirty-two field sites of customer-owned resources, amounting to about 20 MW, will be coordinated using innovative software protocols to enhance grid reliability in lower Manhattan. NYSERDA is providing $999,665 toward the $2.4 million project and anticipates that its results could be applied statewide.

The fifth largest single project, with New York State Electric & Gas is unique to the Finger Lakes Region and is valued at $373,923. At U.S. Salt Corp’s Watkins Glen facility, an engineering study for a Compressed Air Energy Storage (CAES) facility will be undertaken to determine if underground salt caverns can be filled with compressed air for later discharge to drive electric-generating turbines. This process would pump air into the cavern during low-cost, off-peak hours, to about 1000 psig and store it there until it was needed to replacing natural gas- fueled turbines during peak-demand periods.

Two similar CAES systems are operating today; one in Huntorf, Germany and another in McIntosh, Alabama. NYSERDA is contributing $200,000 to the engineering study that could improve rapid dispatch of generation for voltage support, frequency control, black-start functionality and regulation control. The system could also serve to mitigate the intermittent operation of the large commercial wind farms in the central region of the state. The project will characterize possible storage sites, equipment needed and assess benefits and costs for the state grid.

In addition to the electric projects, an environmental engineering and economic study will be performed by GE International, Inc. Energy Consulting, Schenectady, to identify and test five scenarios relating to greenhouse gas policy implementation. The electric power sector produces one-quarter of the state’s greenhouse gas emissions and analysis is needed to study the impact of the Regional Greenhouse Gas Initiative’s (10 Northeast states consortium) proposed regional carbon cap and trade program on the reliability of the electric power transmission system. The five cases will focus on variables such as fuel prices, new generation, emission prices, and transmission improvements and will weigh these against generation dispatch, transmission congestion and changes in power imports into New York State. NYSERDA is providing $198,750 toward the total study cost of $265,000.

Each of the 15 projects (chart attached) is in contract development and should begin work by the second quarter of 2008. NYSERDA’s Electric Power Transmission and Distribution Program (PON 1102) offered two funding rounds in 2007 to support transmission and distribution-related projects. All projects are aimed at improving the efficiency of the State’s electric grid, where energy losses in the power delivery system can amount to as much as 10 percent. By improving power delivery efficiency, demand for new generation may be reduced, thereby reducing air emissions and costs. Funding for the projects comes through the System Benefits Charge, an assessment on the customers of the state’s investor-owned utilities. For more information on NYSERDA’s mission, visit www.nyserda.org

County	Proposer	Proposal Title	NYSERDA Funding	Total Project Funding
Schencectady	General Electric	Analysis of the Near-Term Impact of Proposed Greenhouse Gas (GHG) Policies on the NYS Power System	$198,750	$266,000
New York	New Presbyterian Hospital (NYPH)	NYPH CHP Clip Implementation	$110,000	$220,000
Broome	New York State	Compressed Air Energy Storage Electric and Gas (NYSEG) Engineering Study	$200,000	$373,923
St. Lawrence	Alcoa, Inc.	NYISO Demand Response Capability assessment - alcoa Massena Operations	$165,000	$215,000
Schenectady	SuperPower Inc.	Transmission Level High Temperature Superconductor Fault Current Limiting Prototypes	$5000,000	$11,535,732
Dutchess	Electric Power Research Institute (EPRI)	Real-Time Applications of Phasor Measurement Units (PMU) for Visualization, Reactive Power Monitoring and Voltage Stability Protection	$744,120	$1,495,302
Westchester	Electric Power Research Institute (EPRI)	Fast Fault Screening for Real-Time Transient Stability Assessment	$250,000	$500,000
Westerchester	Pace Law School Energy Project	Identification and Development of More Effective Approaches for Engaging Distribution Utilities in the Deployment of DG as T&D Resources	$148,000	$203,000
Rockland	Orange and Roakland Utilities, Inc.	Smart Grid Pilot Project	$1,000,000	$4,422,000
Albany	New Electricity Transmission Software Solutions, Inc.	Voltage Dispatch and Pricing in Support of Efficient Real Power Dispatch	$150,000	$150,000
New York	JWD Consulting, Inc.	Installling FACTS Devices on the electric Transmission Grid	$182,000	$351,000
New York	Consolidated Edison Co. of NY, Inc.	Project Hydra Demonstration	$1,000,000	$37,500,000
New York	Columbia University	Microgrids: Benefits of Small Scale Electricity Networks in NYS	$134,958	$179,944
New York	Innoventive Power, LLC	Use of Distributed Resources to Support NYS Transmission and Distribution Grids	$999,079	$2,373,934
St. Lawrence	Clarkson Univesity	Development of a Practical Reliability Based Design Methodology for Electric Power Distribution Systems	$190,079	$358,209
		Total Funding	$5,973,722	$600,043,047