Energy-Efficiency Funds and Demand Response Programs, Rhode Island
Updated August 2007
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What public-purpose-funded energy efficiency programs are available in my state?
Rhode Island's restructuring law includes a system benefits charge of 0.3 mills/kWh for energy-efficiency programs through 2012. Over $20 million is available across all program types (including low-income and residential). The programs are administered by the local utilities.
Rebates are available through two programs offered state-wide:
- The MotorUp PDF 145 KB, 2 pp initiative provides rebates for premium efficiency three-phase motors up to 200 horsepower. Rebates range from $45 to $700, depending on horsepower and enclosure (open or closed).
- The Cool Choice PDF 164 KB, 2 pp program provides rebates for high-efficiency HVAC equipment, including packaged air conditioners, air-to-air heat pump systems, water-source heat pumps, and packaged terminal air conditioners. Dual enthalpy economizer controls, demand-controlled ventilation, and electronically commutated motors (ECMs) for supply fans are also included in the program.
National Grid participates in the Building Operator Certification (BOC) initiative, which seeks to train and certify building operators to optimize the operations of their facilities.
In addition to this northeast regional program, National Grid also offers a variety of energy efficiency services, all of which are organized under two initiatives:
- The Large Business Programs include: (1) Rebates for energy-efficient lighting, VSDs, HVAC equipment, dry-type transformers, compressed air systems, and other custom measures; (2) Technical assistance in identifying, implementing, and evaluating energy efficiency opportunities for new construction, renovations, and equipment replacement; (3) Competitive financing of energy-efficient equipment and projects; (4) Building commissioning to verify that newly installed systems are operating according to specifications; and (5) Fixed low prices, through the "Buyers' Alliance," for lighting materials such as electronic ballasts, high-efficiency fixtures, and energy-efficient lamps.
- The Small Business Program pays 75% of the cost of the installation of energy-saving improvements and finances the remaining 25% interest-free for up to 24 months. The program is open to customers with an average demand of 200 kilowatts or less. Free energy audits are also offered.
What utility energy efficiency programs are available to me?
For utility-administered energy efficiency programs, see the previous section.
What load management/demand response options are available to me?
The Independent System Operator New England Inc. (ISO-NE) offers its Demand Response Programs, which provide payments to electricity users for load reductions (of as little as 100 kW), either by reducing usage or by operating on-site generation during periods of high demand. Customers may participate in the program through any participating member ("Enrolling Participant") of the New England Power Pool, such as a utility company, power marketer, or competitive energy supplier. ISO-NE offers several options:
- The Real-Time Demand Response Program provides an opportunity for customers to receive payments for voluntarily responding to system emergencies. Participants are paid for actual load reductions, based on the higher of the real time locational marginal price (LMP) or a guaranteed floor price ($350/MWh for customers that can respond within 2 hours and $500/MWh for those that can respond within 30 minutes). Participants may receive additional incentives by qualifying as an installed capacity (ICAP) resource for their load reduction capacity, although response to system emergencies then becomes mandatory. In order to facilitate notification of emergency events and verification of load curtailments, customers must have an approved Internet-Based Communication System (IBCS) installed.
- The Real-Time Profile Response Program provides remuneration to customers without interval metering for voluntarily responding to system emergencies. The enrolling participant must have the physical ability to interrupt loads at the customer's facility within 30-minutes' notice of a system emergency. Payment for verified load reductions is based on the real-time LMP, with a $100/MWh floor price. Participants may receive additional incentives by qualifying as an ICAP Resource for their load reduction capacity, although response to system emergencies then becomes mandatory.
- The Real-Time Price Response Program provides customers with the opportunity to receive payments for voluntarily reducing load during periods when the real-time LMP is projected to be high. ISO-NE will notify participants either the night before or day of an event if the LMP is expected to exceed $100/MWh ($0.10/kWh). Participants can voluntarily respond to the notification and submit load data to verify their load reductions. Payment for verified load reductions is based on the real-time LMP, with a $100/MWh floor price. Customers must have interval metering installed at their facility to participate in this program.
- The Day-Ahead Option is a more sophisticated variant of the Real-Time Price Response Program. Customers submit offers of hourly load reductions into the day-ahead market and are then notified by their enrolling participant if the offers are accepted. If so, the customer must drop load during the cleared hours but is remunerated by the greater of its bid or the actual clearing price for those hours.
In 2007, ISO-NE is embarking on a new initiative, the Forward Capacity Market, which will allow customers to bid their load reduction capabilities—whether constant (such as an indoor lighting retrofit project), seasonal (such as a new energy-efficient chiller plant), or dispatchible (such as a back-up generator)—into a forward capacity auction that will pit demand-side resources against supply-side ones. The first auction, for resources whose contribution to the grid must begin in June, 2010, will take place on February 1st, 2008, but "Show of Interest" forms for demand-side resources were due by the end of February, 2007 (future auction dates will be announced on the ISO-NE web site). However, in the "Transition Period," which is in effect until June 1, 2010, non-dispatchible demand resources (such as energy-efficiency, load management, or distributed generation) of at least 100 kW are eligible for fixed "installed capacity" payments from NE-ISO. The rate of remuneration is $3.05/kW-month until June of 2008, $3.75/kW-month in 2008-9, and $4.05/kW-month in 2009-10. Applications must include a measurement and verification plan to assure ISO-NE of the ability to perform.
What distributed energy resource options are available to me?
The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs in Rhode Island that offer incentives for renewable distributed generation. Rhode Island currently has no programs of this type open to federal customers.
Are there energy efficiency programs sponsored by the state government?
In cooperation with the Narragansett Electric Small Business Program (see above), the Rhode Island Office of Energy Resources is providing cash incentives through the Small Commercial/Industrial Incentives program to small (average electric demand of 200 kW or less) facilities that install high-efficiency space and water heating measures (ranging from thermostats to steam traps to furnaces).
What additional opportunities are available to me?
Federal customers also have energy efficiency opportunities available with utilities that have area-wide contracts (e.g., Providence Gas) with GSA and, by extension, all other federal agencies. Federal facilities should contact their account executive to determine the level of participation by their local utility.