What is an NPA?
Non-Pipeline Alternatives (NPA) is the inclusive term for any targeted investment or activity that is intended to defer, reduce, or remove the need to construct or upgrade components of a natural gas system, or “pipeline investment.”
These NPA investments are required to be cost-effective compared to the infrastructure investment and are required to meet the specified gas system need.
An NPA can include any action, strategy, program, or technology that meets this definition and these requirements.
Some technologies and methodologies that can be applicable as an NPA investment include demand-side measures, such as demand response, sewer heat recovery, advanced controls strategies, new business models, energy efficiency or electrification. Additional technologies may be feasible as a demand-side NPA. NPA projects can include these and other investments individually or in combination that meets the specified need. A benefit-cost analysis (BCA) will be used to determine the cost-effectiveness of the NPA project.
To identify potential solutions, National Grid issues third-party requests for proposals (RFPs) which are open to all NPA approaches. We encourage potential bidders to consider the following solution approaches when developing a proposal:
- Standard solution approach: Solutions that contain a single technology in a single bid proposal.
- Portfolio solution approach: Solutions that contain multiple technologies in a holistic, integrated manner as part of a single bid proposal.
- Partial solution approach: Partial solutions that provide a portion of the solution requirements may be considered where National Grid can independently identify other partners to formulate a full solution.
- Partnership solution approach: A solution approach where bidders team up as appropriate to offer a multifaceted, multi-bidder solution using multiple technologies as a joint, integrated proposal set, if this would provide the best-value proposition
|Solution Approach||# of Proposals||# of Companies||# of Technologies||% of Need Met|
|Portfolio||1||1||2 or more||100%|
|Partial||1||1||1 or more||Less than 100%|
|Partnership||1||2 or more||1 or more||100%|
The utility may combine multiple, partial proposals to meet the full need, where a single proposal alone does not meet the full need, or bidders could collaborate and submit a combined proposal, consisting of several partial solutions, that together meet the full need.
National Grid has several long-term goals in consideration, including commitments and environmental considerations stated in the National Grid Responsible Business Charter 20201, which are in alignment with state, federal, and internal drive factors, that impact the viability of any given proposal.
Proposed technologies and methodologies should have the capability to address the gas system need and improve network reliability while being cost-effective in comparison to the infrastructure investment as stated in each RFP. Proposed solutions that meet all the requirements stipulated are preferred, partial solutions are, however, acceptable. Please note that National Grid is seeking proven solutions to solve the stated need.
1 "National Grid's Responsible Business Charter 2020." Responsibility, National Grid plc, download here.