One of the first P2P energy exchange using blockchain technologies.
Brooklyn Microgrid Brings Community Microgrid To New York
Brooklyn is known as the Capital of Cool all over the world. Soon it may become cool enough to host New York City’s first energy marketplace and community microgrid.
Brooklyn Microgrid, a benefit corporation, conducted a pilot project to test the feasibility of a microgrid earlier this year. It is now enrolling residents in the Park Slope and Gowanus neighborhoods to become the microgrid’s second cohort.
The company’s microgrid uses TransActive Grid, a business logic software that enables exchange of energy between surplus producers and regular Consolidated Edison customers. The software uses blockchain, the underlying mechanism for digital currency Bitcoin, to ensure a decentralized workflow.
Scott Kessler, director of business development at Brooklyn Microgrid, told me that their aim is to show the feasibility of energy distribution and supply within a grid environment as opposed to simply implementing an energy credit system.
Brooklyn Microgrid enrolled six customers for their pilot, which was conducted in April of this year. The energy exchange amounted to roughly $20 per month. “We were looking for quality not quantity,” Kessler clarified, adding that the company wanted to create a real-time market dynamic by enabling citizen participation in an energy marketplace.
Forty customers have already signed up for their second cohort. The neighborhood has a good mix of demographics and buildings that is ideal for their project, Kessler said. For example, it has Park Slope has multimillion dollar homes, low-income housing, as well as middle class residences. The area towards Gowanus, which borders Park Slope, has low-income housing to small industrial buildings to large industrial installations.
In terms of PV installations, the neighborhood has 1.25 megawatts of installed capacity that is split between large systems, such as the one owned by Whole Foods in Gowanus, and middle class residences. The idea is to take surplus energy from producers to residences and organizations that are dependent on the grid for their energy needs. For example, the company is putting up solar panels at CHiPs, a soup kitchen and homeless shelter.
While the idea of local resiliency has made several residents in the neighborhood sign up for the initiative, it may take a while for them to decouple from the main grid. Kessler said a “strong economic rationale” does not exist currently to introduce battery storage into their grid. “It is more of a policy issue,” he said and explained that the structure of electronic markets, which are based on standard pricing, is a problem for battery storage-run grids.
New York City itself is racing to develop microgrids after its experience during Hurricane Sandy, when the entire Lower Manhattan area suffered a prolonged blackout. Earlier this year, the New York State Energy Research and Development Authority (NYSERDA) established the NY Prize, which offers $40 million for local energy solutions.