Proving the Business Case for the Internet of Things

Con Edison awards Alstom deal for energy management services

Iain Morris
June 10, 2014
New York utility Con Edison has awarded an important contract to Alstom for the delivery of a demand response management system that will help it to more efficiently manage energy supply and demand.

Under the deal, Alstom (Levallois-Perret, France) will provide technology allowing Con Edison (New York City, NY, USA) to offer incentives to electricity customers to reduce consumption during period of peak distribution system demand – such as on hot summer days or to reduce stress on the distribution system.

Alstom claims the demand response management system will help Con Edison to optimize energy resources and pave the way to the development of a reliable grid.

Con Edison provides electric, gas and steam services to more than three million customers in New York City and Westchester County and last year generated about $12 billion in revenues.

It also maintains about 94,000 miles of underground electric cables and another 34,000 miles of overhead wires to serve customers, and believes the Alstom technology will help it to minimize the extension of infrastructure and get more out if its existing assets.

“Con Edison needed a robust, open, comprehensive and scalable solution to manage our growing demand response activities and data within a single platform,” said Andre Wellington, a project manager from Con Edison. “Alstom’s DRMS will help streamline our business processes, and efficiently manage and optimize our growing demand response portfolio.”

Alstom claims to manage the largest demand response portfolio in the world, with more than one million end-use residential customers and more than 10,000 commercial and industrial customers.

“We welcome Con Edison to our expanding and diverse customer base of utilities, aggregators and regional transmission operators around the world,” said Karim El Naggar, the vice president of Alstom Grid’s network management solutions.

The technology works by making forecasts of available load curtailment capacity and has been used by some utilities to send signals for automatic load control to aggregators, or directly to devices like air conditioners or water heaters.

By calculating customers’ normal electricity usage as a baseline, it can compare actual reduced usage to measure performance.
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