First-Ever Energy Pilots Launch in Northeast

HARTFORD, CT-Seattle and Northern California may be the more obvious locations when the subject of energy innovation comes up, but a pair of industry firsts announced last week had their origins in New England. The Malloy administration unveiled the nation's first statewide microgrid pilot program, covering nine municipalities across Connecticut, while Boston-based WinnCos. has launched the Open Market ESCO, a pilot program for multifamily operators that will finance energy-efficient retrofits for an estimated 1,200 units of low-income housing.

Connecticut's microgrid program, intended to devise ways of keeping critical buildings powered during grid outages, mixes both conventional and alternative energy sources such as solar. Among the government services and businesses that the program hopes to help keep the lights on during extreme weather events such as a future Sandy are police, fire, and emergency response teams; hospitals and healthcare facilities; state and town emergency response centers; grocery stores; and gas stations.

Funding through the state's DEEP Microgrid Pilot Program totals $18 million for projects in Bridgeport, Fairfield, Groton, Hartford, Middletown, Storrs, Windham, and Woodbridge. Gov. Dannel Malloy says he wants to see $30 million more in state funding committed to the program over the next two years.

Winn's $9-million pilot program, based on LEED Platinum-certified retrofits undertaken at the 500-unit Castle Square apartment complex in Boston, draws in part on federal funding, in this case a $5.25-million grant from the US Department of Housing and Urban Development's Energy Innovation Fund. A collaboration with the New York City-based Local Initiatives Support Corp., the Open Market ESCO program will begin operations in Massachusetts and Connecticut as well as in New York City.

In order to qualify for the program, low-income housing developments must have the potential for saving at least 20% on energy costs. Through the program, Winn says, property owners won't take on new debt or incur the significant upfront costs that retrofit projects usually entail. Instead, the costs will be covered by monthly energy savings, with a portion of the savings being shared with property owners.

“This program is important not just because it's environmentally sound, but also because it is good for residents and neighborhoods,” says Richard Manson, LISC's regional VP for the Northeast. “The more we can help owners lower operational costs, the better able they are to keep rents affordable for low-income families. And those families will be living in a healthier environment.

Along with the HUD grant and funding from Winn, other financial support for the program is being provided by the Massachusetts Clean Energy Center, Connecticut's Clean Energy Finance and Investment Authority and the New York City Energy Efficiency Corp. Winn is also be partnering with Peabody, MA-based Energy Insurance Services, which will provide the Open Market ESCO with insurance designed to backstop the guaranteed per-project energy savings.