Your building management system controls equipment that consumes electricity. That same capability can generate revenue by participating in Con Edison's demand response programs. When the grid is stressed, you reduce load — and get paid for it.

Demand response isn't new, but many building owners aren't fully leveraging their BMS capabilities for participation. Here's how to turn your building automation investment into a revenue-generating asset.

Understanding Demand Response

Demand response programs pay building owners to reduce electricity consumption during peak demand periods. When the grid is stressed — typically hot summer afternoons — the utility calls demand response events. Participants reduce their loads, and the grid avoids blackouts without firing up expensive, polluting peaker plants.

$50-150

Per kW/Year Revenue

4-6 hrs

Typical Event Duration

50 kW

Minimum for CSRP

40-60%

HVAC Share of Peak Load

Con Edison Programs

Commercial System Relief Program (CSRP)

For commercial customers who can reduce at least 50 kW

Distribution Load Relief Program (DLRP)

Targeted to specific areas with grid constraints

Smart Usage Rewards

For smaller commercial customers

How Your BMS Enables Participation

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HVAC Pre-Cooling

Most common strategy

1. Cool building below normal before event
2. Raise setpoints when event starts
3. Building "coasts" through event
4. Resume normal operation after

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Equipment Cycling

Reduce average load

✓ Rotate air handlers off briefly
✓ Cycle chiller compressors
✓ Reduce pump speeds
✓ Maintain reasonable comfort

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Lighting Reduction

If BMS controls lighting

✓ Dim lights in common areas
✓ Turn off non-essential lighting
✓ Reduce exterior lighting during day

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Non-Critical Load Shedding

Deferrable loads

✓ Domestic hot water heating
✓ Electric vehicle charging
✓ Non-critical process loads

Setting Up Your BMS for Demand Response

BMS Configuration Requirements

Demand Response Mode Programming:

Define setpoint offsets for event periods
Program equipment staging sequences for load reduction
Set up pre-event conditioning sequences
Configure automatic rebound control after events

Load Monitoring

Track your building's load in real time:

Integrate with main electrical meter
Monitor submetered loads for major systems
Calculate real-time demand (kW)
Trend demand data for verification

Calculating Your Potential Revenue

Example Revenue Calculation

Building with 500 kW peak demand during summer afternoons:

Achievable reduction: 150-200 kW (30-40%)

Revenue potential: $7,500 - $22,500 annually

Based on $50-$150 per kW per year, depending on program and performance

Comfort Considerations

"Demand response shouldn't mean tenant complaints. Pre-cooling the building 2-3 degrees before events stores cooling capacity that carries through the event period. Occupants may notice slightly cool conditions before, but typically don't notice the gradual warm-up during."

Working with Aggregators

Most commercial buildings participate through aggregators — companies that enroll multiple buildings, handle program administration, and share revenue with participants.

What Aggregators Provide

Program enrollment and utility interface
Event notification and coordination
Performance measurement and reporting
Settlement and payment processing
Technical support for optimization

Choosing an Aggregator

Revenue share: Typical 70-85% to building owner
Performance requirements: Understand penalties for underperformance
BMS integration: Look for automation capabilities
Local experience: Ask for references

Getting Started

Assess your reduction potential: Review load profile, identify controllable loads
Evaluate BMS capabilities: Determine what programming and integration work is needed
Contact aggregators: Get proposals from multiple aggregators
Plan implementation: Work with your controls contractor to set up sequences
Test and tune: Run practice events before committing

Controls NYC Can Help

At Controls NYC, we help building owners configure their BMS for effective demand response participation. Our services include load reduction potential assessment, demand response programming, aggregator integration setup, and ongoing performance monitoring.

Contact us to explore how your building can earn revenue through demand response while contributing to grid reliability and reducing emissions.

Con Edison Demand Response: How Your BMS Can Earn Incentives