SDGE Presentation Template 4 3 08

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2009-11 EE Portfolio San Diego Gas & Electric April 11, 2008 Portfolio Vision o Develop a cost-effective energy efficiency portfolio over both the short- and long-term period Provide a comprehensive portfolio mix reflective of EE market potential o o Integration of Energy Efficiency, Low Income EE, Demand Response, Renewable Technologies Making energy efficiency and demand response easy for our customers Implement “roadmap” of actions by the IOUs and other stakeholders needed to successfully implement the programmatic initiatives in the Strategic Plan 2 o o Portfolio Overview o 2009-11 Portfolio Design reflects: o CPUC Energy Savings Goals o CPUC 2009-11 Decision o ITRON‟s 2008 Potential Study (Draft) o Process Evaluation Findings/Recommendations o Strategic Planning o Long Term Strategic Plan o Big, Bold Strategies o Integrated DSM o Third Parties o Stakeholders 3 2009-11 Filing Structure Program Implementation Plan Industrial Commercial Agriculture Residential SF Residential MF Upstream X X X X X X X X X Non Residential Residential NC Non Residential NC Deemed Custom AHP X X SBD X X X Cross Cutting Codes & Standards, Partnerships, M&O, WE&T, Third Parties, ET 4 2009-11 Savings Goals 2009 2010 2011 MW 53.6 52.0 49.9 GWH 282.3 273.6 262.5 Million Therms 4.1 4.5 4.9 5 Third Parties o 2009-11 Third Party Solicitation Overview o Three Flights: 1) Statewide General/Local Innovative 2) Statewide/Local Targeted 3) Local Targeted o Target Budget - ~$60 Million o 13 Targeted Bids o Nine 2006-08 contracts will be invited for renewal o o PIPs for successful bidders will be included in the May 15th Filing. Targeting October 2008 to have contracts signed 6 Nonresidential Portfolio Update Program Area 7 Nonresidential Portfolio Update Residential Portfolio Update 8 Program Description 3-yr Forecast GWh MW Mil. Th 355.7 47.8 3.5 The Residential Energy Efficiency Portfolio will provide rebates for deemed energy savings, and incentives for custom energy savings to maximize energy efficiency within the residential sector. 9 Target Market o Homeowners and renters o Single family homes o Apartments o Condominiums o Mobile and manufactured homes o Property managers, landlords, contractors and Home Owners Associations (HOA‟s) o Retailers o Big box o Medium sized, Mom and pop stores o Manufacturers o Market agents (real estate agents, home inspectors) o Governmental agencies (e.g., County Water Authority) o Low income MF properties (focus on common areas and non-qualified low income units) 10 What’s New o Key Market Trends o Lifestyle balance and increased environmental sensitivity o Customer convenience still very important o Growing national interest in “going green” o Increased growth in consumer electronics o Energy and water conservation focus at local and state level o Higher state codes and standards adjustments for appliances and buildings o Smart meter technology is almost here o Piece meal approach to energy efficiency is the norm 11 What’s New (Cont.) o Whole house approach for homeowners, property managers, landlords and HOA‟s. o Integrates with CSI energy efficiency requirements o Integration with Demand Response o 3rd party HVAC tune-up and Summer Saver cycling programs o Implement web enhancements for on-line audit tools to leverage Smart Meter initiative o Hot Water efficiency o Explore collaboration with County Water Authority on a mid-stream promotion (POS) of “ShowerStart” measure o Include as a comprehensive requirement for multi-family o Shower start valve and low flow showerhead combo 12 What’s New (Cont.) o Expand push to promote LED technology at retailer level o Implement CFL disposal campaign in conjunction with participating retailers with Local Government Partnerships o Explore early retirement campaign for gas water heaters and gas furnaces o Adding tankless water heaters to measure mix o Plug loads o Explore development of a statewide electronics strategy through retail channels o Promotion of smart power strip o Appliance retirements o Anticipate 3rd party collaboration with retailers to coordinate appliance pick-ups with new purchase deliveries o Explore ways through statewide team to reduce resale of refurbished units into the secondary market o Online Focus Group to test market ideas and obtain customer feedback 13 Strategies o Emphasize customer convenience o Expansion of Point of Sale o Streamline application process o Enhanced web-based interactive tools o Leverage “Green theme and carbon footprint focus” o “Go Green, Save Green” campaign o Bill inserts o Email blasts o Energy efficiency training component for realtors, agents and home inspectors, potential home buyers and sellers o Enhance Retail Management o Employee training o Collateral material o Investigate appliance efficiency tracking utilizing smart meter communication link (HVAC, Refrigerator, etc.) o Distribute Home Energy Efficiency Kits 14 Strategies (Cont.) o Promote and encourage a comprehensive efficiency approach by market actors o Electric and gas measures o Demand response o PV o Hot Water efficiency o Pay for performance, where appropriate, to drive savings o $/kWh and $/Therm savings o May include kicker for kW reductions o Utilize financing options, where available, to promote energy efficiency o Require M&V to ensure savings o Utilizes Smart meter data as available o Develop on-site and web based training and education component for contractors, homeowners, landlords, HOA‟s and property managers o Coordinate with Low Income programs (common areas and nonqualified low income units) 15 Nonresidential Portfolio Update Non-Residential Portfolio Update 16 Program Description 3-yr Forecast GWh MW Mil. Th 390 82 9.6 Rebate Program and Incentive Program Comprehensive programs designed with multiple program elements to enable the creation of customized energy efficiency solutions for a wide range of customers. 17 Target Markets (by Sectors) Gas and Electric Accounts* Agriculture 5% Industrial 6% Commercial 89% *Differences between gas and electric accounts are less than 1% across any given sector 18 Target Markets (Usage by Meters) Electric Accounts 11% 1% 0.1% 88% 20kW and less: 98,520 – 88% 150-500kW: 1,213 – 1% 20-150kW: 12,357 – 11% 500kW and above: 100 – <1% 19 What’s New o Mobile Workshops o Conducts on-site energy efficiency workshops at energy intensive customer sites o ClimatEEfficienttm Program Promotion o Encourages customers to quantify their GHG emissions o Certifies emissions inventory with the Climate Registry o Promotes taking early actions to reduce GHG emissions through EE and DR programs o Customer Recognition o Provides non-monetary recognition award to nonresidential program participants o Customers qualify by increasing energy efficiency based on knowledge gained through: o Utility energy audit recommendations o Utility energy efficiency seminars and consultations. 20 What’s New o Integrated Audits o Green Business Assessment will provide a GHG emissions calculator and related individualized assessment and diagnostic tools o Includes demand response strategies in recommendations o Green Energy Systems o Utility ownership of major energy systems (e.g. PV, Chillers, DG) o Financing o Raised OBF loan cap for all customers o Raised OBF loan term for Institutional customers 21 Strategies DSM Integration - Segmented Marketing o Wholesale/Retail/Offices o Government/Utilities o Hospitality/Services o Manufacturing/Process Industries o Institutional o Agricultural/Construction Third Parties o Target Third Party programs into segment market strategy Stakeholder Feedback o Online Focus Group to test market ideas and obtain customer feedback 22 Nonresidential Portfolio Update New Construction Portfolio Update 23 Program Description KWh 65,472,000 3-yr Goals KW 17,105 Therms 1,620,000 Commercial: Savings By Design – New construction incentives aimed at building owners and design teams. Promote whole building integrated design Sustainable Communities –building owners, design teams, land planners, economic development directors. Zero Net Energy is target Residential: Advanced Home Program – New construction incentives for Developers/Builders/Architects New Solar Homes Partnership – Coordinates with EE program to provide incentives for PV installation aimed at builders/solar contractors to target zero net energy. 24 Target Markets Commercial o o o o Design teams Building Owners BOMA Associations (AIA, ASHRAE, IES, USGBC, CHPS) Residential o o o o o Architects Energy Analysts HERS raters Builders Associations (BIA, USGBC, Build it Green, Energy Star) 25 What’s New Commercial: o Energy Charrettes o Incentive Kickers o Green Rating System – LEED, CHPS o Commissioning o Measurement and Evaluation o Demand Kicker – energy efficiency demand reduction strategies o Coordination with TA/TI for Demand Response o Utility ownership of major energy systems (e.g. PV, Chillers, DG) o Smaller project focus o Cutting Edge projects – Zero Net Energy as target Residential: o o o o Sustainable communities New demonstration projects Support Green Bldg programs Performance based modeling/incentives 26 Strategies o Integrate RNC performance approach with NSHP to support Big Bold Strategies of Zero Net Energy o Promote Demand Response within Non-Residential NC program o Use developers with a long timeframe Master Plan as a test bed for new, integrated technologies o Use sustainable design tools and products to drive integrated, comprehensive solutions. o Create a comprehensive approach looking upstream toward enhanced professional education o Integrate partnerships with new construction segment 27 Nonresidential Portfolio Update Codes & Standards Portfolio Update 28 Program Description 3-yr Forecast MW Mil. Th o Advocate progressive Codes & Standards GWh 84.54 20.76 0.66 o EE o Demand Response o Renewable and DG programs o Develop initiatives for codes that are more stringent than current state and national standards o Influence long-term code upgrade cycles o Inform building community on changing codes and standards o Undertake activities to improve code compliance 29 Target Markets o The Codes and Standards program is a crosscutting program o Residential o Commercial o Industrial o Agriculture 30 What’s New o Research and analysis to move the code to a zero net energy based approach o Developing two tiers of voluntary standards above minimum standards o Analyze approaches for enhancing Title 24 to include wholebuilding solutions o Expand Title 24 and Title 20 to address significant end uses such as plug loads, etc o Greater emphasis on code compliance improvement o Research to better determine non-compliance o Target training to areas that would derive greatest benefit and maximize compliance o Investigate ways to simplify codes o Evaluate expedited permitting programs with local governments o Explore development of a internet based HVAC tracking system 31 Strategies o Support the goals of the California Energy Efficiency Strategic Plan o Progressively increase stringency of standards towards net zero goals o Involve DR, Renewable, DG programs in development of codes and standards that are integrated and complimentary o Investigate strategies with code compliance and verification activities o Coordination with IOU programs, Local Government Programs, Low Income and others o Keep stakeholders informed and involved during the new code development cycle 32 Nonresidential Portfolio Update Partnerships Portfolio Update 33 Program Description Local Government Partnerships (LGP) Statewide Institutions Other Partnerships 34 Target Markets o o o o o Cities Counties Quasi-Gov’t Colleges State of California (GBI). 35 What’s New o o o o o o o Expansion of LGPs Focus on savings from “muni” facilities Capacity-building within the LGP More integration e.g. Low Income, Demand Response Additional “solicitations” mid-cycle Include New Construction component Process for Selecting New Local Government Partnerships: o Oversight by PRG o Developed Selection Criteria o Issued a “Call for Abstracts” o Scoring with PRG o Received a number of new proposals that are still being analyzed and discussed. 36 Strategies o Codes and Standards o Stretch local C&S above T-24 o Improved compliance with T-24 o Developing sustainable energy plans o Capacity-building e.g. Peer-to-Peer learning o Support for GHG reduction 37 Nonresidential Portfolio Update Workforce Education and Training Portfolio Update 38 Program Description Workforce, Education and Training is a non-resource program offered by CA Investor-Owned Utilities providing expert, hands-on education and training pertaining to energy efficiency technology and practices among its customers o The San Diego Energy Resource Center (SDERC) Program is a collaboration of the CCSE Energy Resource Center and the SDG&E Statewide Education and Training Program 39 Target Markets Cross-cutting market sectors/customers o Residential, Commercial, Industrial, Agriculture o Technicians Engineers, Architects, Building Owners, Facility Managers, Builders, Contractors, Inspectors, Auditors and Commercial food service operators o o o o o o o State-of-the-Art training facilities (available for energy events) Seminars & Workshops on energy efficiency Tool Lending Library Resource Lending Library Technology and Display Center Technical Assistance Energy efficiency support services for California Solar Initiative participants 40 What’s New o o o o Increased focus on statewide activities Offer web-based seminars Create education and training content library Measure and quantify effectiveness of lead generation to the resource programs o The SDERC will include in-house engineering staff to cover these requirements and leverage them to deliver maximum savings from customers considering solar energy. o The creation of a direct linkage between solar programs and energy efficiency is new for the SDERC Program 41 Strategies o o o o o o HVAC training, quality installation, code dissemination Energy modeling training for RNC and CNC Integrate Demand Response and Energy Efficiency training Address issues identified in the WE&T needs assessment Collaborate with „green‟ workforce training programs Utilize joint IOU WE&T web portal to increase training opportunities o Identify opportunities to: o Leverage Department of Education programs o Support EE training at colleges and universities o Support energy efficiency career development programs 42 Nonresidential Portfolio Update Emerging Technologies Portfolio Update 43 Program Description Emerging Technology program will continue to identify promising energy-efficient technologies that can be incorporated into the EE portfolio 44 Target Markets o The Emerging Technologies program is a crosscutting program o Residential o Commercial o Industrial o Agriculture 45 What’s New o Intensified collaboration with the CEC PIER Program o Expanded effort investigating market needs & potential impacts o More assistance developing customer audit tools o More emphasis on use of pilot studies as appropriate 46 Strategies Continued priority on technology assessment activities that support EE programs to understand and address new product market barriers like o Performance uncertainties o Lack of customer knowledge o Lack of market presence o First cost and payback issues Include use of studies that are longer term focused 47 Strategies (Cont.) o o Zero Net Energy New Homes Commercial building envelope, and hybrid HVAC options “Whole House” comprehensive retrofit program support Continuous commissioning for new & existing commercial buildings Investigate linkages among technologies from DR, EE, CHP-DG, and Renewable energy sources programs „Test market‟ bundles of new technology products and service offerings 48 o o o o

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