What's the impact of electrification on operations costs and the environment if electrification is mandated before renewables comprise a substantial portion of grid electricity?
London Economics International (“LEI”) was engaged by the New York Energy Consumers Council (“NYECC”) to perform an analysis of potential impacts on electricity costs from proposed carbon legislation (Bill No. 1745) in New York City (“NYC”), which would impose limits on the use of fossil fuel and total energy usage for buildings in NYC.
For those buildings in NYC whose usage of fossil fuel is currently over the proposed limit, there are a few options. Notably, building owners can offset a portion of their fossil fuel usage through purchases of renewable energy, or invest in energy efficiency measures in order to reduce their overall usage of energy, including fossil fuel. Another measure that can be undertaken to reduce the reliance on fossil fuel is to convert some or all of the building systems to electricity. However, building electrification will cause an increase in electric demand will in turn will result in additional costs for all electricity consumers in NYC due to the need for additional generation resources to meet the additional demand, and a need for additional transmission/distribution infrastructure within ConEd’s service territory in NYC.