Avangrid Subsidiaries NYSEG and RG&E Advance Their First Whole Home Electrification Project in New York

Rhea-AI Summary

Avangrid, Inc. (AGR) announces the use of a non-pipes alternative solution for whole home electrification in Irondequoit, NY, supporting New York's climate goals. The project aims to remove leak-prone gas mains and electrify three homes, contributing to decarbonization efforts and reducing greenhouse gas emissions. The company's commitment to zero-net increase in natural gas use aligns with state clean energy targets.

Insights

Energy Policy Analyst

The initiative by Avangrid to replace gas lines with full home electrification in Irondequoit, NY, aligns with broader state and national objectives to reduce greenhouse gas emissions and transition towards renewable energy sources. This project is a practical example of the implementation of non-pipes alternatives (NPAs), which are increasingly significant as utilities seek cost-effective ways to address system requirements without expanding fossil fuel infrastructure.

NPAs are part of a strategic shift in energy policy, focusing on demand-side solutions to manage energy use and reduce reliance on traditional gas infrastructure. The integration of NPAs into the gas system planning process by NYSEG and RG&E is indicative of a proactive approach to system decarbonization. This not only supports New York's Climate Leadership and Community Protection Act (CLCPA) goals but also reflects a growing trend in the utility sector to embrace sustainable practices.

From a policy perspective, the success of such programs can set a precedent for other states and regions, potentially influencing legislation and regulatory frameworks to favor similar decarbonization efforts.

Environmental Economist

Avangrid's Whole Home Electrification Program represents an economically significant shift in addressing the externalities associated with natural gas use. By removing leak-prone gas mains and offering incentives for full home electrification, the program targets both environmental benefits—such as reduced greenhouse gas emissions—and economic efficiencies.

The concept of NPAs as a cost-effective solution to avoid traditional capital projects is noteworthy. It suggests a potential reduction in long-term operational costs for utilities and a shift in capital expenditure towards more sustainable and potentially less expensive infrastructure. This may have a positive impact on Avangrid's financial performance, as well as on customer utility bills over time.

Moreover, the combination of NPA-based incentives with other programs like the New York State Clean Heat Program could stimulate the local economy by creating demand for electrification services and technologies. If successful, this model could be replicated, leading to increased investment in clean energy infrastructure and potential job creation in the sector.

Sustainability Advisor

The transition from natural gas to electrification in residential homes, as demonstrated by Avangrid's project, is a critical component of sustainable development. The project contributes to the overarching goal of reducing carbon footprints and mitigating climate change impacts. By focusing on leak-prone areas, Avangrid is addressing a direct source of methane emissions—a potent greenhouse gas.

Electrification of homes, when paired with a grid increasingly powered by renewable energy, can lead to significant reductions in household carbon emissions. This strategy may also enhance energy security by reducing dependence on volatile fossil fuel markets. Furthermore, the homeowner testimonial underscores the importance of customer perception and acceptance in the success of such sustainability initiatives.

Long-term, the project's implications on Avangrid's corporate sustainability and social responsibility could strengthen its brand reputation and consumer trust, potentially leading to a competitive advantage in the energy market.

Project replaced gas lines with full home electrification, which is crucial to New York’s Climate Goals

Project helps customers electrify their homes with incentives

ORANGE, Conn.--(BUSINESS WIRE)-- Avangrid, Inc. (NYSE: AGR), a leading sustainabile energy company and member of the Iberdrola Group, has announced that it will use a non-pipes alternative (NPA) solution in Irondequoit, NY to realize Avangrid’s first Whole Home Electrification Program project. The project, in Rochester Gas and Electric’s (RG&E) service area, will result in the removal of 119 feet of leak-prone gas main to ultimately achieve electrification of three homes via an NPA solution.

“These types of projects demonstrate our commitment to decarbonization efforts across the country,” said Pedro Azagra, Avangrid CEO. “As Avangrid’s renewable work and its utilities increasingly promote climate change objectives, projects like this will serve as a roadmap for our operations across the company.”

“This program delivers benefits to customers and society as a whole,” said Trish Nilsen, president and CEO of New York State Electric & Gas (NYSEG) and RG&E. “We use cost-effective solutions to avoid traditional natural gas capital projects that would otherwise be needed to address system requirements.”

NPAs support the Company’s commitment to a zero-net increase in natural gas use, as well as system decarbonization efforts resulting in reduced greenhouse gas emissions that help achieve New York’s climate and clean energy targets – including those established by the Climate Leadership and Community Protection Act (CLCPA). The Companies have committed more than $4 billion for clean energy and energy efficiency projects proposed throughout New York state, as part of CLCPA goals to increase renewable energy and reduce greenhouse emissions by 40 percent by 2030.

One homeowner who participated said, “I was extremely reluctant to do this project. I thought this must be one of those ‘too good to be true.’ Being so skeptical, I was the last to sign on. I am so fortunate that I chose YES. I am so grateful and overwhelmed by the generosity bestowed on me.”

The objective of the Whole Home Electrification Program is to target leak-prone main replacement projects where feasible and achieve full electrification of buildings located in these areas to enable retirement of the impacted section of gas main. To make these projects as economical as possible, NPA-based incentives are combined with others that may be available (e.g., New York State Clean Heat Program), resulting in conversion packages offered to customers at no cost.

At NYSEG and RG&E, the NPA process has been integrated into the gas system planning process and all natural gas projects involving the construction of new pipeline or the replacement or expansion of existing pipeline are screened for applicability of NPA solutions. RG&E has partnered with ICF Resources, LLC to deliver this beneficial opportunity for exclusive upgrades to customers within the targeted segments of gas main.

For customers interested in pursuing electrification and other energy options, NYSEG and RG&E have options and resources available to assist with making energy decisions. Visit Energy Options - NYSEG or Energy Options - RGE to explore available options or NYS Clean Heat Rebate Program - NYSEG and NYS Clean Heat Rebate Program - RGE to learn more about heating and cooling with an all-in-one system (incentives are available). The Companies also offer rebates for commercial and industrial customers looking for the most energy efficient solutions. Check out Commercial Industrial Rebates - NYSEG or Commercial Industrial Rebates - RGE to review rebates available for businesses.

About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $41 billion in assets and operations in 24 U.S. states, Avangrid has two primary lines of business: networks and renewables. Through its networks business, Avangrid owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Through its renewables business, Avangrid owns and operates a portfolio of renewable energy generation facilities across the United States. Avangrid employs more than 7,500 people and has been recognized by JUST Capital in 2021, 2022, 2023 and 2024 as one of the JUST 100 companies – a ranking of America’s best corporate citizens. In 2024, Avangrid ranked first among utilities and 12 overall. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2023 for the fifth consecutive year by the Ethisphere Institute. Avangrid is a member of the group of companies controlled by Iberdrola, S.A. For more information, visit www.avangrid.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240222402971/en/

Media Contact:

Shelby Cohen

Shelby.cohen@avangrid.com

607-788-6785

Source: AVANGRID

FAQ

What is Avangrid, Inc. (AGR) announcing?

Avangrid, Inc. (AGR) announces the use of a non-pipes alternative solution for whole home electrification in Irondequoit, NY.

How many homes will be electrified in the project?

The project aims to electrify three homes in Rochester Gas and Electric's service area.

What are the benefits of the Whole Home Electrification Program?

The program delivers benefits to customers and society by avoiding traditional natural gas capital projects and reducing greenhouse gas emissions.

What are Avangrid's commitments regarding natural gas use?

Avangrid is committed to a zero-net increase in natural gas use, aligning with state clean energy targets.

What is the total commitment for clean energy projects in New York state?

The Companies have committed more than $4 billion for clean energy and energy efficiency projects in New York state.