Demand Energy was looking to expand into new markets with their energy storage technology.
They found an opportunity to create a battery system for Marcus Garvey Apartments to take full advantage of solar and fuel-cell energy generation. Financing presented a barrier to moving forward.
NYCEEC provided a $1.2M energy services agreement (ESA) loan.
- Project type: Energy storage
- Total project cost: $1.3 million
- Financial product: Energy services agreement (ESA) loan
- NYCEEC role: $1.2 million loan
THE CLIENT CHALLENGE
Demand Energy, a leading energy storage company in NYC, was looking to expand into new markets. They opened conversations with L+M Development Partners, a developer/ owner of low-income housing, regarding a 300kW lithium ion battery system to take full advantage of solar and fuel-cell energy generation at the Marcus Garvey Apartments, a large housing complex in Brooklyn, within the geographic boundary of the grid constrained Brooklyn-Queens Demand Management (BQDM) area. Con Edison was prepared to offer significant incentives for the system. Financing, however, appeared to be a major obstacle.
THE NYCEEC SOLUTION
Using advanced modeling, NYCEEC devised a financing approach that would allow a new business entity to own and operate the energy storage system profitably, while deriving additional cash flows from demand response. Because the energy storage system is part of a long-term energy services contract with Demand Energy, L+M did not have to pay any upfront investment.
Marcus Garvey is the first battery storage micro-grid installation at a low-income property in greater New York. Projections indicate that battery storage will lower operating costs at the Marcus Garvey Apartments, along with aiding Con Edison in meeting peak energy demand and providing emergency back-up power. The installation will allow Demand Energy to prove the value of energy storage for housing of all kinds with the following benefits:
Cut power expenses
Help keep the grid reliable
Provide off-grid backup power for emergencies