Energy Efficiency Programs Getting Started!
October 9, 2008 Janet Brandt Wisconsin Energy Conservation Corporation
Today’s Presentation
• • • • • • Why should we pursue energy efficiency? How much is available? How much does it cost? How do we get started? How can municipal utilities control costs? What types of programs are effective?
Why Energy Efficiency?
• • • • • • • • • • Proven source of short/long-term energy supply Contributes to “balanced” energy strategy Can be less expensive than conventional supply Moderates the growth rate Not subject to fuel price risks or carbon-control risks Significant enough in size to delay “build” decisions on new generation Provides environmental benefits Delivers economic benefits Consumer expectations are high Not all “naturally occurring”
What Energy Efficiency Can and Can’t Do
• Can’t replace all supply-side resources
– Need to reliably meet energy needs that can’t be avoided or reduced – Need to modernize/replace older plants – Need to ensure reliable/adequate supply infrastructure
• Can reduce the rate of growth in demand
– Accumulating savings over time in smaller increments – Needs adequate and consistent funding
How Much Is Available?
• Many “potential” studies available (conservative estimate of 1% of sales per yr) • States with programs are currently capturing from .1-1.9% of sales • Many states setting targets of 2% per yr • MI legislation – 1% per yr by 2012 • CA’s energy efficiency/conservation efforts in 2001 produced a 5% reduction in electricity use
How Much Does it Cost?
• Current average cost of conserved energy
– About $.03/kwh (over lifetime of measure)
• Costs are higher in start-up years • Costs may increase as efficiency opportunities become more challenging
How Do We Get Started?
Typical process for utilities:
– Estimate DSM potential in service area – Design programs
• Model the cost-effectiveness of various efficiency measures and programs • Set savings/budget targets • Design programs for each customer sector (residential, commercial, industrial, low income, rental) • Seek regulatory approval
– Administer/implement programs – Measure/evaluate results – Enhance/tweak program designs
How Can Municipal Utilities Control Costs?
Consider pooling resources to outsource any of the necessary steps:
– Shared potential study – Shared program designs/modeling – Some centralized administration (marketing templates, rebate processing, database and reporting, evaluation) – Can use your own resources to deliver programs to customers
Typical Types of Programs
Residential Programs:
– Prescriptive Rebates, typically promoted through retailers/contractors:
• ENERGY STAR Lighting • High Efficiency HVAC • ENERGY STAR Appliances
– Appliance turn-in/recycling programs – Energy audits for existing homes – New construction services
Business Programs (C&I Customers)
– Prescriptive Rebates, typically promoted through market channel and/or directly to targeted customer sectors
(Lighting, HVAC, Motors, Controls, Refrigeration)
– Custom incentives for unique commercial and/or industrial projects – New construction services
No Need to Reinvent the Wheel!
• Resources are available • Excellent, proven programs to adopt • Other models out there for a cooperative approach