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Characteristics of
Effective Resource Planning
Asia-Pacific Dialogue on Clean Energy Governance and Regulation
June 21-22,...
Effective Resource Planning
• Integrates all available
resources and
technologies, available on
the supply-side or the
dem...
Clean Resources Often Face Barriers
•

Energy Efficiency
–
–
–
–

•

Renewable and Distributed
Resources
–
–
–
–

•
•

Spl...
Translating
Policy Objectives
Into Resource
Choices

Policies:
Improved Efficiency
Increased Renewables

Tools:
- “Loading...
Policy Foundations
That Support Clean Energy
• EE is treated as a high
priority resource, equivalent
or superior to supply...
Energy Efficiency Goals
• Efficiency commitment is in
statute
• Quantitative MW and MWH
savings goals have been
establishe...
Indicators of Commitment
• TRC or Societal Cost Test
is used to evaluate EE
programs
• Cost-effectiveness of EE
establishe...
Evaluation, Measurement
and Verification
• Robust EM&V process has
been established
• EM&V is adequately
funded
• Energy s...
Delivering Energy Efficiency
• EE delivery structure has
been established
• Resource plans are
regularly updated
• Buildin...
Public Access to Clean Energy
• Public education
programs on EE and
Renewables
• State or regional process
to pursue EE as...
Cost Recovery and Rates
• Cost recovery process
exists Funding is for
multi-year periods
• A base energy efficiency
spendi...
Utility Financial Incentives
Are Important
• Utility throughput
incentive is addressed
and disincentives are
removed
• Uti...
Tariff Design
• Declining block rates &
high fixed charge rate
designs eliminated
• Time sensitive rates
• Usage sensitive...
Financing Clean Resources
• Sales Tax reductions or
exemption for energy
efficiency
• Investment Tax Credit for
energy eff...
Distributed Generation Policies
• DG capacity and energy
goals are adopted and
progress is being made
• Streamlined
interc...
Emerging Issues
• Renewable Transmission Access
and Cost Allocation
• Formalizing Least Cost Clean
Energy Principles
• Sma...
More Resources:
The US NAPEE Policy Grids
• US National Action Plan for Energy Efficiency Policy Grids:
http://www.raponli...
Regulatory Assistance Project
Nonprofit NGO founded in 1992 by
experienced energy regulators
Advises policymakers on eco...
Thanks For Your attention
Questions?
Contact: wshirley@raponline.org
Website: www.raponline.org
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Characteristics of Effective Resource Planning

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This presentation was given at the Asia - Pacific Dialogue on Clean Energy Governance and Regulation, held in Manila, Philippines on June 21-22, 2010. Wayne Shirley and Rick Weston presented at the forum and served as session chairs. In this presentation he discusses the various aspects of implementing energy efficiency, such as measuring and delivering it.

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Transcript of "Characteristics of Effective Resource Planning"

  1. 1. Characteristics of Effective Resource Planning Asia-Pacific Dialogue on Clean Energy Governance and Regulation June 21-22, 2010 ADB Headquarters, Manila Presentation by Wayne Shirley The Regulatory Assistance Project China ♦ India ♦ European Union ♦ Latin America ♦ United States
  2. 2. Effective Resource Planning • Integrates all available resources and technologies, available on the supply-side or the demand-side – Includes Demand-side Management • Aims to provide energy services at minimum total cost while meeting reliability, price and environmental constraints =
  3. 3. Clean Resources Often Face Barriers • Energy Efficiency – – – – • Renewable and Distributed Resources – – – – • • Split incentives Access to financing Quality Assurance Energy, capacity and ancillary services Interconnection rules Hookup, standby and exit fees Energy, Capacity and Ancillary Services Net metering or other pricing mechanism Stakeholders often not part of process Incumbents have incentives which work against clean resources
  4. 4. Translating Policy Objectives Into Resource Choices Policies: Improved Efficiency Increased Renewables Tools: - “Loading” Orders - EEPS - EPP - RPS - FITs - Tariff Design - Interconnection Standards Processes: - Collaboration or other Public Forum - Stakeholder Participation - Standards for Choosing - Fair and Functioning Markets, if in use
  5. 5. Policy Foundations That Support Clean Energy • EE is treated as a high priority resource, equivalent or superior to supply resources • EE integrated into IRP / Portfolio Management process • Efficiency procured as a resource • EE competes as alternative to transmission • EE is a biddable commodity in energy and capacity markets
  6. 6. Energy Efficiency Goals • Efficiency commitment is in statute • Quantitative MW and MWH savings goals have been established and are producing incremental investment • Goals are established in IRP, EEPS, or otherwise • Energy Efficiency can be used to fulfill requirements of an RPS or similar standard
  7. 7. Indicators of Commitment • TRC or Societal Cost Test is used to evaluate EE programs • Cost-effectiveness of EE established through potential study • EE programs reach all customer classes • Funding for long-term, cost-effective EE has been established
  8. 8. Evaluation, Measurement and Verification • Robust EM&V process has been established • EM&V is adequately funded • Energy savings are used to measure performance • EM&V is conducted by an independent party or under direction of regulator
  9. 9. Delivering Energy Efficiency • EE delivery structure has been established • Resource plans are regularly updated • Building Energy Codes for residential and commercial buildings are in place, regularly updated and enforced • Energy efficiency is a high priority in state buildings and state funded buildings
  10. 10. Public Access to Clean Energy • Public education programs on EE and Renewables • State or regional process to pursue EE as highpriority resource • Consumers access to high efficiency homes & buildings and appliances • Consumers can buy renewable energy from utility or third party
  11. 11. Cost Recovery and Rates • Cost recovery process exists Funding is for multi-year periods • A base energy efficiency spending level exists, with opportunity to justify higher level • Funds from carbon trading program support EE
  12. 12. Utility Financial Incentives Are Important • Utility throughput incentive is addressed and disincentives are removed • Utility/shareholder EE incentives are provided • Incentives exceed amount of lost revenues
  13. 13. Tariff Design • Declining block rates & high fixed charge rate designs eliminated • Time sensitive rates • Usage sensitive • AMI deployment planned, underway or completed • Demand response programs in place
  14. 14. Financing Clean Resources • Sales Tax reductions or exemption for energy efficiency • Investment Tax Credit for energy efficient investments • State supported low cost financing for energy efficient investments in buildings and equipment • Grants and subsidies • System Benefits Charges • RPS and EEPS
  15. 15. Distributed Generation Policies • DG capacity and energy goals are adopted and progress is being made • Streamlined interconnection process for DG • Supportive policy and pricing for exit fees and standby rates • CHP included in system planning
  16. 16. Emerging Issues • Renewable Transmission Access and Cost Allocation • Formalizing Least Cost Clean Energy Principles • Smart Grid & System Operations • Potential for disruptive technologies (e.g. cheap storage) • Coping with electrification of vehicle fleet • Valuing Carbon in Resource Planning • Mitigating market failures through appropriate regulation
  17. 17. More Resources: The US NAPEE Policy Grids • US National Action Plan for Energy Efficiency Policy Grids: http://www.raponline.org/Feature.asp?select=116
  18. 18. Regulatory Assistance Project Nonprofit NGO founded in 1992 by experienced energy regulators Advises policymakers on economically and environmentally sustainable policies in the regulated energy sectors Funded by U.S. DOE & EPA, the Energy Foundation, Climate Works Foundation and other foundations We have worked in 40+ states and 16 nations
  19. 19. Thanks For Your attention Questions? Contact: wshirley@raponline.org Website: www.raponline.org
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