National grid's energy efficiency programs

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  • 1. Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. National  Grid’s  Energy  Efficiency  Programs John Rathbun Technical Sales and Engineering Support National Governors Association Philadelphia, PA March 04, 2013
  • 2. 22 UK Electric UK Gas National Grid Overview Customers US – 8 Million UK – 11 Million 2nd Largest US Utility Pipes & Wires US – 125,000 miles UK – 215,000 miles Largest UK Utility Service Areas: Gas Both Electric and Gas National Grid Gas and LIPA Electric System Electric 4,000 MW Electricity Generation
  • 3. 3 National Grid: Second-largest Utility in the U.S.  The largest distributor of Natural Gas in the northeast U.S.  Approximately 3.4 million customers in New York, Massachusetts, and Rhode Island  Delivers electricity to approximately 3.3 million customers  Massachusetts, New York and Rhode Island  Manages the electricity network on Long Island under an agreement with the Long Island Power Authority  Serving 1.1 million LIPA customers  2011 – New US Operating Model  Jurisdictional areas created state by state to be the local face of National Grid  Stronger connected community and customer relationships at a local level
  • 4. 4 Energy Efficiency Programs National Grid places a strong emphasis on helping our customers manage their energy usage and take advantage of new sustainable energy solutions National  Grid’s  Energy  Efficiency  Programs  and  Incentives  will:  Identify energy savings opportunities and provide technical services for the installation of premium energy efficient equipment to replace aging, inefficient equipment  Lower project Costs by up to 50% for installing energy saving equipment
  • 5. 5 Program Development  Result of regulatory process - individual  state’s  social,  regulatory   and policy decisions for both residential and commercial and industrial customers  Costs are covered through regulatory filings Commission orders drive final program design, incentive and funding levels Regulatory approval is required for all programs
  • 6. 7 Customer  Incentive  Options…   CUSTOM  Includes measures not covered under the prescriptive incentives.  Requires a technical analysis of proposed energy measures and associated energy savings to determine incentive amount. Incentives are generally the lesser of:  Up to 50% of the installed cost which includes labor and equipment  A buy-down of equipment costs equal to a six months or a one-year payback PRESCRIPTIVE  Fixed incentives paid for installation of specific, predetermined energy efficiency measures and equipment.  Eligible equipment must have specified energy efficiency ratings  Examples: Lighting, Lighting Controls, Air Compressors, EMS, Heating and Insulation
  • 7. 8 C&I Programs – Prescriptive Programs - Electric UNY New Const Retrofit Lighting n/a Y Compressed Air n/a Y Variable Speed Drives n/a n/a Energy Mgmt Systems* n/a Y MA New Const Retrofit Lighting Y Y Compressed Air Y Y Variable Speed Drives Y Y Energy Mgmt Systems* Y Y HVAC Y n/a Chillers Y n/a DNY Gas Only Territory RI New Const Retrofit Lighting Y Y Compressed Air Y n/a Variable Speed Drives Y Y Energy Mgmt Systems* Y Y HVAC Y n/a Chillers Y n/a * Includes Vending Misers
  • 8. 9 C&I Programs – Prescriptive Measures - Gas UNY New Const Retrofit Heating Equipment Y Y Water Heating Y Y Prescriptive Controls n/a Y Kitchen Equipment Y Y Steam Trap Survey n/a Y MA New Const Retrofit Heating Equipment Y Y Water Heating Y Y Prescriptive Controls n/a Y Kitchen Equipment Y Y DNY* New Const Retrofit Heating Equipment Y Y Water Heating Y Y Prescriptive Controls Y Y Kitchen Equipment Y Y Steam Trap Survey Y Y RI New Const Retrofit Heating Equipment Y Y Water Heating Y Y Prescriptive Controls n/a Y Kitchen Equipment Y Y Non-Prescriptive Programs: offered in all the above areas • Energy Efficiency Engineering Study • Custom Projects * Includes Multifamily
  • 9. 10 Residential Programs UNY Gas Electric Products & Recycling Y Y OPower Y Y Multifamily Y Y Enhanced Home Sealing Suspended Y High-Efficiency Heating Y n/a MA Gas Electric Products & Recycling Y Y OPower Y Y Multifamily Y Y Deep Energy Retrofit Y Y High-Efficiency Heating Y Y Cool SMART n/a Y Weatherization Y n/a Home Energy Assessment Y Y New Const. & Major Ren. Y Y Heat Loan Program n/a Y Work Force Development n/a Y Education Program n/a Y Energy Star Lighting n/a Y DNY* Gas Products Y Enhanced Home Sealing Suspended High-Efficiency Heating Y RI Gas Electric Products & Recycling n/a Y Energy Star Lighting n/a Y Multifamily Y Y Cool SMART n/a Y Deep Energy Retrofit n/a Y Energy Star Homes n/a Y High-Efficiency Heating Y n/a Appliance Management Y n/a * NYC and Long Island
  • 10. 11 What is Shareholder Incentive?  Financial  “rewards”  for  National  Grid  Money that is collected from ratepayers (through SBC and Energy Efficiency)  National  Grid  is  “rewarded”  financially…  If we hit savings targets and stay with in budget that has been agreed on with the regulators
  • 11. 12 Shareholder Incentive - Purpose  Motivate the successful delivery of energy efficiency programs to achieve savings goals  Align business interests with public policy interests  Partially compensated company for lost sales revenue  With revenue decoupling, this is less of a factor  Focus is on components that policy-makers think are needed to achieve state policy  Maximize savings  Cost-effectiveness  Other elements to drive program design to serve selected target populations, innovate, and/or be more comprehensive
  • 12. 13 National Grid Energy Efficiency Customers Pay System Benefit Charge (SBC) or Energy Efficiency Charge CUSTOMER IMPACT $$ SPEND Energy saved by completing project is recorded towards goal Energy Savings Target Savings for Shareholder Incentive SHAREHOLDERS Achieve Incentive Make Goal YES NO Possible penalty MASS Save NATIONAL GRID Energy Efficiency Programs $$ NYSERDA Spend $$ on EE Programs Develop Program/ Portfolio/Targets Customer Gets Incentive Customer Completes EE Project
  • 13. 1414 CHP Developments  Electric Efficiency Program in MA & RI  MA Alternative Energy Portfolio  Rate decoupling  Standby Tariff  MA  RI  NY  Technical Assistance  Marketplace leadership  US Combined Heat and Power Association  EPA CHP Partnership  Northeast Clean Heat and Power Initiative  Northeast Clean Energy Application Center  Micro CHP and fuel cells field demonstrations
  • 14. 15 MA & RI CHP Incentive  Electric Energy Efficiency Thermal output ~ kW  $750/kw  Must pass Benefit cost ratio test  5 Mw CHP 2011 Largest EE project  Technical Assessments  Standby Tariffs  Interconnect Process
  • 15. 16 Combined Heat Power - CHP  270 Mw installed on site customer owned generation  NE – 133 Mw 54 sites  UNY – 48 Mw 10 sites  DNY – 89 Mw 128 sites  Over 72% below 300 kW  Significant Projects  NE –  5.9 Mw at food manufacturer  5 Mw at Medical School  5.1 Mw at Pharmaceutical  Upstate NY  29 Mw steam turbine at Healthcare facility  8 Mw ICE engines at Community College  6 Mw Turbine at Casino/resort  Downstate NY  2.4 Mw at Hospital  2.4 Mw at Shopping Mall  2.4 Mw at College 16