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A New View on Energy Efficiency An Introduction for Public Power Utilities

A New View on Energy Efficiency An Introduction for Public Power Utilities. Energy conservation Load management Demand-side management Integrated resource planning Demand response Peak clipping Load shifting Fuel switching Market transformation Energy efficiency.

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A New View on Energy Efficiency An Introduction for Public Power Utilities

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  1. A New View on Energy Efficiency An Introduction for Public Power Utilities

  2. Energy conservation • Load management • Demand-side management • Integrated resource planning • Demand response • Peak clipping • Load shifting • Fuel switching • Market transformation • Energy efficiency Energy efficiency is a demand-side resource Demand-side resources: In contrast to supply-side resources, the effective energy (kWh) and capacity (kW) harnessed from changes in customer energy use patterns, including improving energy efficiency, in order to provide long-term, system-wide utility benefits as well as direct benefits to program participants. This definition assumes the demand-side resources chosen also will support net emissions-reduction goals.

  3. EE Has Made a Difference Average energy use per person and per $ gdp, 1980-2030 Improvements due to efficiency, industrial shift, and other impacts. Rate of electricity demand growth, 1950-2030 Slowing, largely due to ee, load management. 2000-07 average growth: 1.1% per year. Source: EIA 2009

  4. We are challenged to: Meet growing customer needs Expand & upgrade infrastructure Provide near-flawless reliability Address environmental concerns Anticipate distributed renewables, EVs, smart-grid game changers Keep service affordable for all But This Is Now New electronics and more air conditioning are driving residential load growth. Source: EIA 2009

  5. Our Challenges • _______________________________________________________ • _______________________________________________________ • _______________________________________________________ • _______________________________________________________ • Can more energy efficiency be part of our solution?

  6. Our Future: Diverse and Efficient • Power + information • NREL study of wide-ranging policy groups’ energy plans: clear trends toward diversity and efficiency* • Impact: nothing like it in 100 years • Prepare to be a pioneer! * A Comparative Review of a Dozen National Energy Plans, NREL,March 2009.

  7. Leaders in EE innovation Burlington Electric Department, VT Economic growth without load growth WPPI Energy, WI Equivalent to 20 MW of baseload saved Waverly Light and Power, IA 5000 customers; $1.5 million net saved

  8. Conservation Power Plant • In the 1980s, Austin Energy coined the term, “Conservation Power Plant,” to describe the effect of demand-side resources. Since that time: • More than 500 MW in capacity offset to date • New goal, EE for 15% of new energy needs by 2020 • Also, to meet 30% of new energy needs with renewable energy • To lead in clean energy innovation

  9. New Heroes River Falls, WI, a city of 14,000, has saved more than 2 million kWh in about 2 years

  10. Energy Efficiency Affects Resource Needs Utility-Driven EE Market- and Policy-Driven EE Supply Side Resources Utility programs work with market-driven changes (better building materials and equipment) plus policies, such as codes and standards.

  11. Business Case for Demand-Side Resources Utility View Community View • Reduce marginal costs, improve net benefits • Beat the compliance clock • Hedge against risks • Support utility modernization • Primary focus on electricity • Relief through bill savings • Promote better buildings • Provide economic stimulus • Support sustainability • Serve special groups • Increase comfort & convenience • Cross-cut with regional planning (water, electricity, natural gas, transportation, food, etc.) Public power sees both sides

  12. EE and other demand-side resources must be: Measurable Long-term Reliable Cost-effective Suited to the community What Makes EE a Resource Even strong programs must be assessed for each utility

  13. EE helps economic development in at least 3 ways: Bill savings re-spent Some businesses grow green jobs Others cut waste, save jobs Side-Effects On average, for every $1 invested in EE home improvements, $2.73 in benefits results: $1.67 in direct savings + $1.06 in community jobs, healthcare savings, pollution reduction, etc. Source: Intergovernmental Weatherization Program

  14. The Roadmap Survey program ideas Assess potential & set targets Review costs & drivers Address technical needs Address program needs Sketch program delivery plan Test benefits & costs Refine it & roll it Monitor & evaluate Refine & celebrate as needed!

  15. How Does Energy Use Drive Our Costs? Information about how customers use energy on- and off-peak will help you to spot opportunities. Here, off-peak energy use at NWPPC, 2008.

  16. On-Peak Cost Drivers Another example from NWPCC 2008

  17. Sample Measures* * There’s a difference between a measure and a program!

  18. This chart shows dozens of measures for 2020 that will be cheaper than predicted energy costs. Today’s average cost for EE: 2¢ – 4¢ per kWh saved.

  19. How Big is Our EE Resource?

  20. Address Technical Needs Are products and services are locally available? Are trade allies (sales, installation, service) prepared? Are there problems with disposal of old products? What can we do to help? The Sacramento (SMUD) refrigerated case lighting promotion relied on products that could be hard for buyers to find. Fixing that problem was job #1.

  21. Address Marketing Needs • Understand the target audience’s concerns • Choose the right tools at the right times: • Targeted outreach • Advertising and PR • Trade ally campaigns • Pricing – Rates • Pricing – Incentives • 3. Cover administration details Working with the Chamber of Commerce in Spencer, IA

  22. Pricing: Incentives • Rebates • Loans • Partner incentives for trade allies • Directing customers to tax credits, etc. • Incentive rates or bill credits Source: City of Redding Utilities

  23. Pre-Test • Value = net benefits / net costs • Check available data on expected energy and demand savings • Assumptions vary with your point of view – e.g., Utility Cost Perspective, Total Resource Cost Perspective, Societal Perspective, Ratepayer Impact • JAA member? Consider benefits locally and for all JAA members; look for win-win programs

  24. A New View • Acknowledge the likelihood of revenue impacts • Count all avoided costs & review revenue requirements • If a rate increase is needed, check the rate structure, too • Focus on bottom-line bill savings • Public power utilities can be lean and strong

  25. Demand Savings Peak without EE Programs Peak with EE Programs Waverly Light and Power (IA) improves EE economics by combining programs that save energy and demand.

  26. Lead by Example • From Anchorage to Key West, municipal utilities have promoted LED stoplights and other quick-payback improvements. • Other ideas: • Generating plant efficiency checkup • Reducing distribution line losses • Citywide lighting improvements • City-building load management • Improving water & wastewater operations

  27. Business-Sector Programs • Low-cost measures and energy audits • Load management or demand-response controls • Lighting, HVAC, office equipment, motors, processes • Whole building design or improvements • Saving money = saving jobs Missouri River Energy Services pools member needs for specialized industrial-process energy audits

  28. Residential-Customer Programs • Get best-practices case studies from APPA and CEEP • Work with regional and national programs, like Energy Star • Work with community partners A sampling of programs from Springfield, IL City Water, Light, and Power

  29. Energy Efficiency is the Foundation Wind Pioneer Bowling Green, OH, started with energy efficiency and direct load control programs. Partnerships with other public power utilities and with the community also help us to build our future.

  30. Engage the Public • In research:____________________________________________ • In planning:____________________________________________ • In marketing:___________________________________________ • In evaluation:___________________________________________ • Turn skeptics into supporters!

  31. Leadership Matters • Top-level support is the number one predictor of program success. As a utility leader, you can make a difference. • To build more support: • Bring economics home. Energy efficiency saves local dollars and grows jobs. • Focus on bills not rates. • Support public participation. • Work with your JAA or with neighboring utilities. • Look to business programs for big savings, but offer residential programs, too. • Evaluate and measure savings; celebrate success

  32. Resources • American Public Power Association Energy Efficiency Resource Central – www.EERCnet.org • Clean and Efficient Energy Program – www.cleanefficientenergy.org • Your Joint Action Agency or • Your Public Power Supplier New View Guidebooks and other resources are available from APPA, www.appanet.org

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