The document summarizes a study conducted in Minnesota to evaluate how key elements of the National Standard Practice Manual (NSPM) could be applied to the state's energy efficiency cost-effectiveness analyses. The study reviewed Minnesota's current screening practices, applied the NSPM's Resource Value Framework to create a primary cost-effectiveness test for the state, and provided recommendations. The webinar presentation covered an overview of the NSPM, current practices in Minnesota, applying the Resource Value Framework to include more utility system impacts and consider relevant non-utility impacts like low-income programs and other fuels.
Best Practices in Designing and Implementing Energy Efficiency Obligation Sch...Leonardo ENERGY
An energy efficiency obligation (EEO) is a regulatory mechanism that requires obligated parties to meet quantitative energy saving targets by delivering or procuring eligible energy savings produced by implementing approved end-use energy efficiency measures.
Governments have endeavoured to improve end-use energy efficiency, and in some cases to also achieve other objectives, by designing and implementing schemes that place EEOs on particular parties.
This webinar will summarise the results from detailed case studies and a unique comparative analysis of 19 different EEO schemes implemented in a range of jurisdictions around the world.
The webinar will also identify a set of best practices that can be employed in designing and implementing an EEO scheme.
Impact evaluation of Energy Efficiency and DSM programmesLeonardo ENERGY
The presentation starts combing the well known input-output-impact chain within a preferred evaluation framework dealing with the evaluation questions:
* Effectiveness: To what extents have the expected objectives been achieved?
* Efficiency: Have the objectives been achieved at lowest cost?
* Utility & Sustainability: Do the expected effects contribute to a net increase in energy efficiency and sustainability?
The presentation will give you knowledge and practical examples for 7 key analytic elements of policy measure and energy efficiency programme evaluations:
* Policy measure theory used in the programme.
* Specification of indicators for the success of a measure.
* The baselines for the selected indicators.
* Assessment of outputs and outcomes.
* Assessment of energy savings and emissions reductions and other relevant impacts.
* The calculation of costs, cost-efficiency and cost-effectiveness.
* The level of evaluation effort.
These 7 key elements will be elaborated for several programmes, based on practical experiences from all over the world including:
* Building codes
* General information, labelling and information centres
* Price reducing policies
* Taxation systems
* Voluntary agreements
The presentation will be finalised with a overview on recent development, among others: Increasing harmonisation and standardisation of energy savings calculations, impact evaluation of behavioural programmes and evaluation of packages of programmes.
The presentation is based on work within the IEA DSM Agreement resulting in an evaluation guidebook, based on national case studies and on national end international experiences.
This document provides an overview of a webinar on using cost-benefit analysis for justice policy. It discusses estimating the costs of incarceration and crime, including factors like recidivism rates, victim costs, and costs by crime type. It also covers estimating the probabilities of arrest, conviction, and sentencing outcomes. The webinar teaches how to apply effect sizes from program evaluations to estimate how policy changes could impact costs by reducing future criminal behavior. The goal is to help policymakers assess different options and maximize benefits relative to costs.
Cost benefit analysis in policy making ta 181113bisgovuk
This document discusses using cost-benefit analysis in policy making. It outlines the overall policy making process and how cost-benefit analysis can inform it. Cost-benefit analysis aims to optimize economic welfare by quantifying the costs and benefits of policy options. However, policy makers consider multiple objectives and criteria in decisions. While cost-benefit analysis provides a framework, there are challenges in applying it due to uncertainties and difficulties quantifying all impacts. Judgement is still needed in policy making.
1. The document discusses cost-benefit analysis, which is a process used to weigh expected costs against expected benefits to determine the most profitable course of action for a project.
2. It provides a brief history of cost-benefit analysis, dating back to 1808, and outlines some common types of cost analyses like cost-effectiveness analysis and cost-benefit analysis.
3. The document explains some key aspects of cost-benefit analysis, such as how to account for factors like inflation, discount rates, payback periods, and how to evaluate if a project is beneficial, of no gain/loss, or costly based on the ratio of change in costs to change in benefits.
This document discusses cost-effectiveness analysis (CEA) and cost-benefit analysis (CBA). It defines CEA as measuring the cost per unit of effect or outcome of a program. CEA is useful when there is one key outcome of interest, allowing comparison of programs' impact. CBA quantifies all outcomes in monetary terms, which can be difficult. Key considerations for CEA include standardized impact and cost estimates. CBA subtracts costs from benefits to determine if a project is worthwhile. The document provides steps for CBA including specifying the project, quantifying inputs/outputs, valuing costs and benefits, and comparing them.
Cost-benefit analysis in the transport sectorOECD Governance
Presentation by Lorenzo Casullo, OECD International Transport Forum, at a RIA workshop for the transport infrastructure regulator of Peru (OSITRAN) which took place in Lima 20-22 February 2017. Further information is available at www.oecd.org/gov/regulatory-policy/
This document discusses cost-benefit analysis as a tool for guiding public expenditure decisions. It explains that cost-benefit analysis aims to identify the option that provides the maximum net benefit by comparing total costs and total benefits. It outlines what costs and benefits should include, such as use values, non-use values, and option values. The document also discusses how to value environmental impacts and benefits. It notes some limitations of cost-benefit analysis, such as the challenges of assigning monetary values to all impacts. Finally, it lists the key steps in conducting a cost-benefit analysis.
Best Practices in Designing and Implementing Energy Efficiency Obligation Sch...Leonardo ENERGY
An energy efficiency obligation (EEO) is a regulatory mechanism that requires obligated parties to meet quantitative energy saving targets by delivering or procuring eligible energy savings produced by implementing approved end-use energy efficiency measures.
Governments have endeavoured to improve end-use energy efficiency, and in some cases to also achieve other objectives, by designing and implementing schemes that place EEOs on particular parties.
This webinar will summarise the results from detailed case studies and a unique comparative analysis of 19 different EEO schemes implemented in a range of jurisdictions around the world.
The webinar will also identify a set of best practices that can be employed in designing and implementing an EEO scheme.
Impact evaluation of Energy Efficiency and DSM programmesLeonardo ENERGY
The presentation starts combing the well known input-output-impact chain within a preferred evaluation framework dealing with the evaluation questions:
* Effectiveness: To what extents have the expected objectives been achieved?
* Efficiency: Have the objectives been achieved at lowest cost?
* Utility & Sustainability: Do the expected effects contribute to a net increase in energy efficiency and sustainability?
The presentation will give you knowledge and practical examples for 7 key analytic elements of policy measure and energy efficiency programme evaluations:
* Policy measure theory used in the programme.
* Specification of indicators for the success of a measure.
* The baselines for the selected indicators.
* Assessment of outputs and outcomes.
* Assessment of energy savings and emissions reductions and other relevant impacts.
* The calculation of costs, cost-efficiency and cost-effectiveness.
* The level of evaluation effort.
These 7 key elements will be elaborated for several programmes, based on practical experiences from all over the world including:
* Building codes
* General information, labelling and information centres
* Price reducing policies
* Taxation systems
* Voluntary agreements
The presentation will be finalised with a overview on recent development, among others: Increasing harmonisation and standardisation of energy savings calculations, impact evaluation of behavioural programmes and evaluation of packages of programmes.
The presentation is based on work within the IEA DSM Agreement resulting in an evaluation guidebook, based on national case studies and on national end international experiences.
This document provides an overview of a webinar on using cost-benefit analysis for justice policy. It discusses estimating the costs of incarceration and crime, including factors like recidivism rates, victim costs, and costs by crime type. It also covers estimating the probabilities of arrest, conviction, and sentencing outcomes. The webinar teaches how to apply effect sizes from program evaluations to estimate how policy changes could impact costs by reducing future criminal behavior. The goal is to help policymakers assess different options and maximize benefits relative to costs.
Cost benefit analysis in policy making ta 181113bisgovuk
This document discusses using cost-benefit analysis in policy making. It outlines the overall policy making process and how cost-benefit analysis can inform it. Cost-benefit analysis aims to optimize economic welfare by quantifying the costs and benefits of policy options. However, policy makers consider multiple objectives and criteria in decisions. While cost-benefit analysis provides a framework, there are challenges in applying it due to uncertainties and difficulties quantifying all impacts. Judgement is still needed in policy making.
1. The document discusses cost-benefit analysis, which is a process used to weigh expected costs against expected benefits to determine the most profitable course of action for a project.
2. It provides a brief history of cost-benefit analysis, dating back to 1808, and outlines some common types of cost analyses like cost-effectiveness analysis and cost-benefit analysis.
3. The document explains some key aspects of cost-benefit analysis, such as how to account for factors like inflation, discount rates, payback periods, and how to evaluate if a project is beneficial, of no gain/loss, or costly based on the ratio of change in costs to change in benefits.
This document discusses cost-effectiveness analysis (CEA) and cost-benefit analysis (CBA). It defines CEA as measuring the cost per unit of effect or outcome of a program. CEA is useful when there is one key outcome of interest, allowing comparison of programs' impact. CBA quantifies all outcomes in monetary terms, which can be difficult. Key considerations for CEA include standardized impact and cost estimates. CBA subtracts costs from benefits to determine if a project is worthwhile. The document provides steps for CBA including specifying the project, quantifying inputs/outputs, valuing costs and benefits, and comparing them.
Cost-benefit analysis in the transport sectorOECD Governance
Presentation by Lorenzo Casullo, OECD International Transport Forum, at a RIA workshop for the transport infrastructure regulator of Peru (OSITRAN) which took place in Lima 20-22 February 2017. Further information is available at www.oecd.org/gov/regulatory-policy/
This document discusses cost-benefit analysis as a tool for guiding public expenditure decisions. It explains that cost-benefit analysis aims to identify the option that provides the maximum net benefit by comparing total costs and total benefits. It outlines what costs and benefits should include, such as use values, non-use values, and option values. The document also discusses how to value environmental impacts and benefits. It notes some limitations of cost-benefit analysis, such as the challenges of assigning monetary values to all impacts. Finally, it lists the key steps in conducting a cost-benefit analysis.
16 cost benefit analysis of the environmentPrabha Panth
- The document discusses methods for conducting cost-benefit analyses of the environment, including both direct and indirect methods.
- Direct methods like contingent valuation try to assign monetary values to environmental benefits, while indirect methods estimate costs of environmental degradation.
- However, all of these methods underestimate environmental costs since they are spread over long periods and spaces, do not include costs to non-human species, and cannot fully capture costs to non-living systems or future costs.
5A - US Cities Climate Action Best Practicesjohncleveland
This document provides an overview of best practices for city climate action planning and implementation. It outlines a framework for developing climate action strategies, including conducting assessments of major city systems, setting emissions reduction targets, and designing strategies. Example strategies address building energy use, transportation, waste, and more. The document also discusses challenges such as building analytical capacity, gaining political support, influencing other levels of government, and financing climate actions. Integrating climate goals into other city plans is emphasized.
Lessons learnt from CIFOR research for PFES in VietnamCIFOR-ICRAF
This presentation by Pham Thu Thuy, Grace Wong, Anastasia Yang, Le Ngoc Dung, Karen Bennett, Vu Tan Phuong given during a workshop in Hanoi, Vietnam analyses the Payments for Forest Environmental Services (PFES) policy in Vietnam through the lens of achieving effectiveness, efficiency and equity.
Monitoring and Evaluation system for PFES: Key findings and policy recommenda...CIFOR-ICRAF
This presentation by Pham Thu Thuy, Karen Bennet, Vu Tan Phuong and Le Ngoc Dung shows the key findings for M&E for Environmental Service, Social Impact, PFES contract and financial flows.
2015 New Jersey Comfort Partners EM&V report by Apprise. Summary presented by Bruce Grossman of South Jersey Gas, June 2015 Board of Public Utilities Meeting. Recommendations for a better program include enhanced data tracking, targeting high use customers and enhanced quality control. This presentation is uploaded by Hancock Software, whose Hancock One Technology tracks energy efficiency DSM programs and improves cost effectiveness by providing a technology that brings all parties and activities to one platform. The platform includes fully integrated mobile apps for field personnel. Check it out at http://www.hancocksoftware.com
Dr. Susan Grant-Muller presents on measuring the environmental and energy impacts of intelligent transportation systems (ITS) through key performance indicators (KPIs). She discusses how ITS can impact vehicle emissions and energy use both through changes in road user behavior and the infrastructure needed to support ITS. Common ITS strategies are shown to reduce vehicle emissions by 5-20% according to various studies. Grant-Muller recommends a minimum of two KPIs to capture ITS impacts: 1) changes in road user emissions and 2) roadside energy consumption scaled to the size of the ITS scheme. Stakeholders are believed to find the environmental impacts of ITS important to consider within a broader evaluation framework.
This document discusses cost-benefit analysis and cost-effectiveness analysis as methods to evaluate programs by comparing costs and benefits. It explains that CBA monetizes both costs and benefits, while CEA only monetizes costs and expresses benefits in non-monetary units. The document also discusses undertaking these analyses from different perspectives - social, government, and individual - and notes strengths like evaluating net worth but weaknesses like attribution and monetizing all impacts.
Ratemaking and Environmental Compliance PlansJohn Wolfram
Utilities make significant investments to comply with environmental regulations. This paper discusses the ratemaking considerations for utilities' Environmental Compliance Plans.
A regulatory framework that that better aligns how utilities earn revenue with customer demands and public policy goals.
Given at National Symposium on Market Transformation on April 21st, 2015.
Cost benefit analysis (CBA) determines the costs and benefits of a proposed project or policy. It has its origins in the 19th century and was established in US law in 1936. CBA is used to assess whether a project is economically feasible, which of multiple options provides the best return, and the optimal timing. It involves identifying costs like financial outlays and environmental impacts, and benefits like increased productivity or time savings. Alternatives are compared by weighing total benefits against total costs. CBA can be used to analyze options for reducing traffic congestion in Dubai by considering costs and benefits of policies, infrastructure projects, and public transport improvements.
Multi-criteria analysis (‘MCA’) is a set
of methods, techniques and tools that
considers multiple objectives and
criteria to support decision-making.
It takes a broader perspective than
cost–benefit analysis and costeffectiveness
analysis, which stress
monetary considerations. MCA is set
to play a greater role in investment
appraisal as increasing emphasis is
placed on having clear strategic links to
policies, ‘levelling up’, and stewardship
of the environment. Dr Rupert Booth,
Independent Economic Adviser,
considers the motivations for the use of
MCA and some of its many techniques
Energy Systems Framework (Final) -- December 2015johncleveland
This document provides an overview of a framework for urban energy system transformation developed by a coalition of five US cities. The framework is intended to help cities take a leadership role in transitioning their energy systems from fossil fuels to 100% renewable energy through establishing shared language, clarifying municipal roles, and defining necessary analysis and strategies. It outlines the evolving role of municipalities in comprehensive energy planning and management. The framework is based on reducing energy demand, decarbonizing supply, and increasing resilience across electricity, heating/cooling, and transportation fuels.
Cost-benefit analysis for climate change adaptation policies in agricultureFAO
This document discusses benefit-cost analysis (BCA) for climate change adaptation policies in agriculture. It explains that BCA is an ex-ante methodology used to efficiently allocate scarce resources by identifying solutions that minimize costs or maximize benefits. The document outlines the basic steps of a BCA, which include specifying alternative projects, identifying impacted groups, quantifying and monetizing impacts over time, discounting values, and calculating net present values. It provides an example of applying BCA to the "Enhancing the Resilience of Agro-ecological Systems" project in Malawi, finding an internal rate of return of 27.5% and a positive net present value.
Evaluation, Measurement & Verification (EM&V) – Overview of Best Practices fo...Leonardo ENERGY
Now that the European Commission’s ‘winter package’ has been released, it is critical to consider the potential for a radically different EM&V regime for Europe – i.e., one that can ensure that Member States are delivering real savings through 2020 (and beyond). This webinar will provide a ‘refresher course’ to those with a basic understanding of EM&V methods and focus on a few best practices examples including EM&V methodologies for efficiency obligation schemes, white certificate schemes, and voluntary measures. Participants will learn what types of EM&V might work best within different policy contexts, regulatory drivers and other constraints (e.g., data availability).
Course on Regulation and Sustainable Energy in Developing Countries - Session 8Leonardo ENERGY
Session 8 deals with standards and labels for white appliances and air conditionners which have achieved tremendous energy savings in some developing countries.
How to define standards – how to test them - how to implement them - how to enforce them.
This session will rely on cases notably from Ghana, Tunisia and Egypt.
The document discusses co-benefits of pro-climate transport policies and projects in Asia. It defines co-benefits as additional benefits beyond greenhouse gas reductions, such as reduced air pollution and associated health benefits. The document proposes a co-benefits model for the transport sector based on sustainable development. This model would integrate climate change mitigation with development goals by mapping existing institutions and policies and identifying opportunities to maximize co-benefits of transport projects and policies.
Setting Priorities for Improved Environmental ManagementIwl Pcu
This document discusses approaches for setting environmental priorities and management. It explains that in situations with limited information, qualitative ranking is necessary. Economic methods like cost-benefit analysis (CBA) and cost-effectiveness analysis (CEA) are most accurate but require valuations that are difficult. The document provides examples of applying multi-criteria analysis and expert judgment to prioritization in Nigeria. It also outlines challenges with economic valuation and benefit-cost analysis, like valuing human life and accounting for future generations.
The document discusses life cycle costing (LCC) for facility design, construction, operations, and maintenance. It covers topics such as the standards and objectives for LCC, costs that must be considered, data sources, assessing accuracy, assumptions, uncertainties, energy pricing, financing, and software. LCC analysis involves choosing the most cost-effective alternative by considering all costs over the life of a facility from inception to disposal. It can help overcome initial cost barriers and improve capital asset valuations by incorporating operating costs.
Training Module on Electricity Market Regulation - SESSION 6 - Efficiency Ass...Leonardo ENERGY
Regulators use efficiency assessment to set the efficiency targets of the regulated service providers. This session explains the role of the efficiency assessment, the methods to measure efficiency and the incorporation of efficiency results in the price control.
Why measure efficiency?
Methods for efficiency assessments : Uni-dimensional ratio analysis / Statistical and econometric methods / Linear programming methods / Virtual network models
Application of efficiency results o TOTEX versus OPEX benchmarking : Building block approach / Cost controllability (short- and long-term) / Efficiency convergence speed / Capping efficiency scores / Using efficiency bands
Cost-benefit analysis (CBA) is a systematic process introduced in the 1930s by French engineer Jules Dupit to calculate and compare the monetary costs and benefits of a project or policy. It involves defining the project, identifying and assigning monetary values to all expected costs and benefits, comparing the costs and benefits, and using this analysis to determine the best course of action. The objectives of CBA include determining sound investment decisions, evaluating new projects or initiatives, understanding the strengths and weaknesses of different options, and choosing the most profitable alternative.
This document provides an overview of benefit-cost testing approaches for energy efficiency programs across states. It discusses the purposes of benefit-cost testing, the traditional cost-effectiveness tests used, and the results of a national survey on state approaches. Key issues discussed include an imbalance in costs and benefits considered, utility system benefits often being undervalued, and concerns with the Ratepayer Impact Measure test. The document concludes that while benefit-cost testing aims to ensure prudent spending of ratepayer funds, current approaches may systematically disadvantage energy efficiency compared to other resource options.
Richard Cowart - Delivering Energy Efficiency on a Large Scale: Challenges an...noe21
http://www.managing-energy-demand.org
This seminar held on november 4 ‘09 in Bern, Switzerland, hosted international specialists in managing energy demand, mainly electric energy. Presentations concentrated on best cases in demand side management and regulation easing the way for DSM programs. The event was organised by noe21, a Geneva based NGO.
16 cost benefit analysis of the environmentPrabha Panth
- The document discusses methods for conducting cost-benefit analyses of the environment, including both direct and indirect methods.
- Direct methods like contingent valuation try to assign monetary values to environmental benefits, while indirect methods estimate costs of environmental degradation.
- However, all of these methods underestimate environmental costs since they are spread over long periods and spaces, do not include costs to non-human species, and cannot fully capture costs to non-living systems or future costs.
5A - US Cities Climate Action Best Practicesjohncleveland
This document provides an overview of best practices for city climate action planning and implementation. It outlines a framework for developing climate action strategies, including conducting assessments of major city systems, setting emissions reduction targets, and designing strategies. Example strategies address building energy use, transportation, waste, and more. The document also discusses challenges such as building analytical capacity, gaining political support, influencing other levels of government, and financing climate actions. Integrating climate goals into other city plans is emphasized.
Lessons learnt from CIFOR research for PFES in VietnamCIFOR-ICRAF
This presentation by Pham Thu Thuy, Grace Wong, Anastasia Yang, Le Ngoc Dung, Karen Bennett, Vu Tan Phuong given during a workshop in Hanoi, Vietnam analyses the Payments for Forest Environmental Services (PFES) policy in Vietnam through the lens of achieving effectiveness, efficiency and equity.
Monitoring and Evaluation system for PFES: Key findings and policy recommenda...CIFOR-ICRAF
This presentation by Pham Thu Thuy, Karen Bennet, Vu Tan Phuong and Le Ngoc Dung shows the key findings for M&E for Environmental Service, Social Impact, PFES contract and financial flows.
2015 New Jersey Comfort Partners EM&V report by Apprise. Summary presented by Bruce Grossman of South Jersey Gas, June 2015 Board of Public Utilities Meeting. Recommendations for a better program include enhanced data tracking, targeting high use customers and enhanced quality control. This presentation is uploaded by Hancock Software, whose Hancock One Technology tracks energy efficiency DSM programs and improves cost effectiveness by providing a technology that brings all parties and activities to one platform. The platform includes fully integrated mobile apps for field personnel. Check it out at http://www.hancocksoftware.com
Dr. Susan Grant-Muller presents on measuring the environmental and energy impacts of intelligent transportation systems (ITS) through key performance indicators (KPIs). She discusses how ITS can impact vehicle emissions and energy use both through changes in road user behavior and the infrastructure needed to support ITS. Common ITS strategies are shown to reduce vehicle emissions by 5-20% according to various studies. Grant-Muller recommends a minimum of two KPIs to capture ITS impacts: 1) changes in road user emissions and 2) roadside energy consumption scaled to the size of the ITS scheme. Stakeholders are believed to find the environmental impacts of ITS important to consider within a broader evaluation framework.
This document discusses cost-benefit analysis and cost-effectiveness analysis as methods to evaluate programs by comparing costs and benefits. It explains that CBA monetizes both costs and benefits, while CEA only monetizes costs and expresses benefits in non-monetary units. The document also discusses undertaking these analyses from different perspectives - social, government, and individual - and notes strengths like evaluating net worth but weaknesses like attribution and monetizing all impacts.
Ratemaking and Environmental Compliance PlansJohn Wolfram
Utilities make significant investments to comply with environmental regulations. This paper discusses the ratemaking considerations for utilities' Environmental Compliance Plans.
A regulatory framework that that better aligns how utilities earn revenue with customer demands and public policy goals.
Given at National Symposium on Market Transformation on April 21st, 2015.
Cost benefit analysis (CBA) determines the costs and benefits of a proposed project or policy. It has its origins in the 19th century and was established in US law in 1936. CBA is used to assess whether a project is economically feasible, which of multiple options provides the best return, and the optimal timing. It involves identifying costs like financial outlays and environmental impacts, and benefits like increased productivity or time savings. Alternatives are compared by weighing total benefits against total costs. CBA can be used to analyze options for reducing traffic congestion in Dubai by considering costs and benefits of policies, infrastructure projects, and public transport improvements.
Multi-criteria analysis (‘MCA’) is a set
of methods, techniques and tools that
considers multiple objectives and
criteria to support decision-making.
It takes a broader perspective than
cost–benefit analysis and costeffectiveness
analysis, which stress
monetary considerations. MCA is set
to play a greater role in investment
appraisal as increasing emphasis is
placed on having clear strategic links to
policies, ‘levelling up’, and stewardship
of the environment. Dr Rupert Booth,
Independent Economic Adviser,
considers the motivations for the use of
MCA and some of its many techniques
Energy Systems Framework (Final) -- December 2015johncleveland
This document provides an overview of a framework for urban energy system transformation developed by a coalition of five US cities. The framework is intended to help cities take a leadership role in transitioning their energy systems from fossil fuels to 100% renewable energy through establishing shared language, clarifying municipal roles, and defining necessary analysis and strategies. It outlines the evolving role of municipalities in comprehensive energy planning and management. The framework is based on reducing energy demand, decarbonizing supply, and increasing resilience across electricity, heating/cooling, and transportation fuels.
Cost-benefit analysis for climate change adaptation policies in agricultureFAO
This document discusses benefit-cost analysis (BCA) for climate change adaptation policies in agriculture. It explains that BCA is an ex-ante methodology used to efficiently allocate scarce resources by identifying solutions that minimize costs or maximize benefits. The document outlines the basic steps of a BCA, which include specifying alternative projects, identifying impacted groups, quantifying and monetizing impacts over time, discounting values, and calculating net present values. It provides an example of applying BCA to the "Enhancing the Resilience of Agro-ecological Systems" project in Malawi, finding an internal rate of return of 27.5% and a positive net present value.
Evaluation, Measurement & Verification (EM&V) – Overview of Best Practices fo...Leonardo ENERGY
Now that the European Commission’s ‘winter package’ has been released, it is critical to consider the potential for a radically different EM&V regime for Europe – i.e., one that can ensure that Member States are delivering real savings through 2020 (and beyond). This webinar will provide a ‘refresher course’ to those with a basic understanding of EM&V methods and focus on a few best practices examples including EM&V methodologies for efficiency obligation schemes, white certificate schemes, and voluntary measures. Participants will learn what types of EM&V might work best within different policy contexts, regulatory drivers and other constraints (e.g., data availability).
Course on Regulation and Sustainable Energy in Developing Countries - Session 8Leonardo ENERGY
Session 8 deals with standards and labels for white appliances and air conditionners which have achieved tremendous energy savings in some developing countries.
How to define standards – how to test them - how to implement them - how to enforce them.
This session will rely on cases notably from Ghana, Tunisia and Egypt.
The document discusses co-benefits of pro-climate transport policies and projects in Asia. It defines co-benefits as additional benefits beyond greenhouse gas reductions, such as reduced air pollution and associated health benefits. The document proposes a co-benefits model for the transport sector based on sustainable development. This model would integrate climate change mitigation with development goals by mapping existing institutions and policies and identifying opportunities to maximize co-benefits of transport projects and policies.
Setting Priorities for Improved Environmental ManagementIwl Pcu
This document discusses approaches for setting environmental priorities and management. It explains that in situations with limited information, qualitative ranking is necessary. Economic methods like cost-benefit analysis (CBA) and cost-effectiveness analysis (CEA) are most accurate but require valuations that are difficult. The document provides examples of applying multi-criteria analysis and expert judgment to prioritization in Nigeria. It also outlines challenges with economic valuation and benefit-cost analysis, like valuing human life and accounting for future generations.
The document discusses life cycle costing (LCC) for facility design, construction, operations, and maintenance. It covers topics such as the standards and objectives for LCC, costs that must be considered, data sources, assessing accuracy, assumptions, uncertainties, energy pricing, financing, and software. LCC analysis involves choosing the most cost-effective alternative by considering all costs over the life of a facility from inception to disposal. It can help overcome initial cost barriers and improve capital asset valuations by incorporating operating costs.
Training Module on Electricity Market Regulation - SESSION 6 - Efficiency Ass...Leonardo ENERGY
Regulators use efficiency assessment to set the efficiency targets of the regulated service providers. This session explains the role of the efficiency assessment, the methods to measure efficiency and the incorporation of efficiency results in the price control.
Why measure efficiency?
Methods for efficiency assessments : Uni-dimensional ratio analysis / Statistical and econometric methods / Linear programming methods / Virtual network models
Application of efficiency results o TOTEX versus OPEX benchmarking : Building block approach / Cost controllability (short- and long-term) / Efficiency convergence speed / Capping efficiency scores / Using efficiency bands
Cost-benefit analysis (CBA) is a systematic process introduced in the 1930s by French engineer Jules Dupit to calculate and compare the monetary costs and benefits of a project or policy. It involves defining the project, identifying and assigning monetary values to all expected costs and benefits, comparing the costs and benefits, and using this analysis to determine the best course of action. The objectives of CBA include determining sound investment decisions, evaluating new projects or initiatives, understanding the strengths and weaknesses of different options, and choosing the most profitable alternative.
This document provides an overview of benefit-cost testing approaches for energy efficiency programs across states. It discusses the purposes of benefit-cost testing, the traditional cost-effectiveness tests used, and the results of a national survey on state approaches. Key issues discussed include an imbalance in costs and benefits considered, utility system benefits often being undervalued, and concerns with the Ratepayer Impact Measure test. The document concludes that while benefit-cost testing aims to ensure prudent spending of ratepayer funds, current approaches may systematically disadvantage energy efficiency compared to other resource options.
Richard Cowart - Delivering Energy Efficiency on a Large Scale: Challenges an...noe21
http://www.managing-energy-demand.org
This seminar held on november 4 ‘09 in Bern, Switzerland, hosted international specialists in managing energy demand, mainly electric energy. Presentations concentrated on best cases in demand side management and regulation easing the way for DSM programs. The event was organised by noe21, a Geneva based NGO.
Characteristics of Effective Resource Planningwayneshirley
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.
This document summarizes a webinar for two studies on energy efficiency and carbon savings potential in Minnesota. The demand-side study will estimate potential savings from energy efficiency programs for 2020-2029, identifying cost-effective measures and sectors to target. The supply-side study will estimate potential savings from improving utility infrastructure efficiency, including generation and transmission/distribution systems. Both studies will involve collecting data, modeling savings potential at different levels, and providing policy recommendations to help Minnesota achieve its energy goals. Stakeholder input will be gathered through interviews, meetings, and an advisory committee to guide the studies.
Dominion Energy Efficiency Collaborative PresentationMary Shoemaker
This document summarizes opportunities for energy efficiency programs and collaboratives in Virginia. It discusses best practices for delivery of programs targeting various sectors like multifamily housing, new construction, and data-driven commercial programs. The document also provides recommendations and case studies for successful energy efficiency collaboratives, emphasizing clear objectives, participation rules, and transparency. Establishing a collaborative in Virginia could deepen energy savings by engaging stakeholders in regulatory processes.
Iwrm tool box. need for case studies and opportunities by danka j. thalmeinerovaGlobal Water Partnership
This document discusses the need for case studies to illustrate the application of tools shown in the Integrated Water Resources Management (IWRM) ToolBox. It provides information on the number and types of case studies currently available, and the typical format and criteria for new case studies. Examples are given of how IWRM tools have been applied in water supply and sanitation projects, including tools related to governance/institutions, economic assessment, environmental impact assessment, economic instruments, water pricing, demand and supply management, and financing options. The document encourages contributions of new case studies that reflect both successes and challenges in implementing more sustainable water strategies.
Taking Stock – 40 years of Industrial Energy AuditsLeonardo ENERGY
Industrial energy audits were amongst the first energy efficiency policy measures developed in response to the oil shocks of the 1970s. Since then they have become enormously popular in industrialised economies. In the EU they are mandatory for large organisations under the EU Energy Efficiency Directive. Developing countries are considering them as they scale up their own climate programmes.
So interest in audits can only grow. But, from a policy-maker’s perspective, do they work? How do they work? How could they work for me? Certainly, in principle, audits are extremely important because they get to the heart of how a company uses energy. But after 40 years, the scientific literature on audits is large and complex and difficult for the non-specialist policy-maker to wade though.
This webinar tell the story of audits in a way designed to cut through this complexity. It recounts the history of audits and sets out why they are important. It sets out some of the main features of successful audit programmes, and, from the practical experience of the speaker, how to go about putting one together. It then considers the main problems with audits and how these can be addressed. Finally the talk will look ahead to see how audits might evolve in the near future.
Taking Stock – 40 years of Industrial Energy Audits Leonardo ENERGY
Industrial energy audits were amongst the first energy efficiency policy measures developed in response to the oil shocks of the 1970s. Since then they have become enormously popular in industrialised economies. In the EU they are mandatory for large organisations under the EU Energy Efficiency Directive. Developing countries are considering them as they scale up their own climate programmes.
So interest in audits can only grow. But, from a policy-maker’s perspective, do they work? How do they work? How could they work for me? Certainly, in principle, audits are extremely important because they get to the heart of how a company uses energy. But after 40 years, the scientific literature on audits is large and complex and difficult for the non-specialist policy-maker to wade though.
This webinar tell the story of audits in a way designed to cut through this complexity. It recounts the history of audits and sets out why they are important. It sets out some of the main features of successful audit programmes, and, from the practical experience of the speaker, how to go about putting one together. It then considers the main problems with audits and how these can be addressed. Finally the talk will look ahead to see how audits might evolve in the near future.
Interventions to encourage behaviour change have the potential to generate significant energy savings in Ireland. To increase the probability of success, the choice and design of these interventions should be informed by the best available evidence. In order to identify the best strategies for activating behaviour-related energy savings in Ireland, the Sustainable Enegy Authority of Ireland (SEAI) performed an extensive analysis of international best practice. This review indicates that incorporating behaviourally informed interventions into the design of future energy policy in Ireland will strengthen Ireland’s ability to transition to a low-carbon economy.
Interventions to encourage behaviour change have the potential to generate significant energy savings in Ireland. To increase the probability of success, the choice and design of these interventions should be informed by the best available evidence. In order to identify the best strategies for activating behaviour-related energy savings in Ireland, the Sustainable Enegy Authority of Ireland (SEAI) performed an extensive analysis of international best practice. This review indicates that incorporating behaviourally informed interventions into the design of future energy policy in Ireland will strengthen Ireland’s ability to transition to a low-carbon economy.
Kuching | Jan-15 | Policy Instruments in Facilitating Renewable Energy Off-g...Smart Villages
Given by Dr. Liu Xiying
The second in our series of workshops designed to gather input from stakeholders involved in existing off-grid projects in Africa, Asia and Latin America. This event is workshop scheduled to be held in Malaysia for the ASEAN countries will be organised by the Academy of Sciences Malaysia (ASM) in collaboration with Universiti Malaysia Sarawak (UNIMAS).
The document discusses opportunities for commercial building energy efficiency in the Midwest. It describes MEEA, a non-profit organization serving 13 Midwest states that promotes energy efficiency. MEEA has over 140 members from various sectors and a staff of 30 based in Chicago. The document outlines MEEA's role in designing programs, evaluating technologies, and advancing policy. It then discusses opportunities to deliver advanced efficiency segmentation and marketing, unlock savings in underserved building segments, and harness operational savings through approaches like retro-commissioning.
Electricity system optimization means making the most effective use of a portfolio of electricity resources to maximize top public policy goals, delivering a system that is affordable, reliable, and clean. This presentation highlights technologies that can help optimize the grid, barriers to system optimization (an how to overcome them), and what State Energy Office can do to address and overcome these barriers.
Chris Allwein spoke to the OCTC Annual Conference on May 3, 2016, about the legal requirements behind energy efficiency and the benefits for both provider and customer.
Also included are presentations by Jon Williams on AEP Ohio Energy Efficiency and Energy Management Solutions, given by Gary Swanson.
Environmentally Sound Technologies for the Future for the futureSteve Halls
This document discusses mechanisms for promoting environmentally sound technologies (ESTs). It outlines that ESTs can provide economic benefits but their adoption faces barriers. The presentation covers: assessing EST performance; reporting environmental data transparently; linking financial and environmental indicators; and balancing voluntary initiatives with regulations. The goal is to mainstream ESTs by clarifying their benefits and facilitating investment decisions based on full economic and environmental criteria.
The document summarizes the findings of a survey of organizations implementing solar PV electrification programs in Asia and the Pacific. It found that the key factors for success included regular maintenance and monitoring, warranties, access to financing, designing systems to meet local needs, and building local community capacity. Barriers included a lack of guidelines based on lessons from previous projects and not specifying program objectives in terms of user needs and benefits. Success requires consideration of technical, policy, implementation, and business issues in program design and execution.
Clean Energy: Structure and Role of RegulatorsLeonardo ENERGY
This session is part of the Clean Energy Regulators Initiative Webinar Programme.
Theme 1 - The Evolving Role of Network Regulators.
Module 1: Defining Structure and Roles of Regulators and Institutions
Power systems around the world are quickly evolving, and the role of power sector regulators is growing substantially more complex.
This webinar will provide an overview of global forces shaping power sector transformation, discuss the evolving role of the regulator to harness such forces, and then zoom-in on a particular transformative force – variable renewable energy – to discuss specific regulatory aspects and approaches.
This webinar is based on the reports "The Evolving Role of the Power Sector Regulator" and "An Overview of Variable Renewable Energy Regulatory Issues".
Clean Energy: Structure and Role of RegulatorsLeonardo ENERGY
This session is part of the Clean Energy Regulators Initiative Webinar Programme.
Theme 1 - The Evolving Role of Network Regulators.
Module 1: Defining Structure and Roles of Regulators and Institutions
Power systems around the world are quickly evolving, and the role of power sector regulators is growing substantially more complex.
This webinar will provide an overview of global forces shaping power sector transformation, discuss the evolving role of the regulator to harness such forces, and then zoom-in on a particular transformative force – variable renewable energy – to discuss specific regulatory aspects and approaches.
This webinar is based on the reports "The Evolving Role of the Power Sector Regulator" and "An Overview of Variable Renewable Energy Regulatory Issues".
Similar to MEEA Policy Webinar: A Quiet Revolution in Cost-Effectiveness Testing (slides only) (20)
MEEA collaborated with The Cadmus Group to conduct a study of utility energy efficiency investments and savings throughout the Midwest to determine their economic impact. The study uses a dynamic forecast model to study the economic impacts of energy efficiency investments specific to four target regions: 1) Indiana, 2) Michigan, 3) Ohio and 4) the Midwest region. This webinar walked through the findings of this study and included presentations from Nick Dreher, Policy Manager at MEEA and Tyler Browne, Senior Analyst at The Cadmus Group, Inc.
Industrial refrigeration systems are a significant consumer of electrical energy in food processing, cold storage, and chemical processing industries throughout the Midwestern United States.
This webinar, presented by Bryan Hackett, P.E., of kW Engineering, will covered the following topics:
• The basics of industrial refrigeration systems,
• A review of proven energy efficiency measures (EEMs) and how to identify potential applications for each, and
• The respective energy and cost savings for each.
Industrial and commercial utility program managers, end-user plant managers, refrigeration system operators, contractors, and solution vendors will get a better understanding of industrial refrigeration as an integrated system, how key components can be optimized to improve efficiency, and the energy and financial motivations for pursuing the discussed EEMs
Bryan Hackett, P.E. - Senior Engineer II, kW Engineering
Bryan leads kW Engineering’s Industrial Services Team, providing energy and water auditing, retro-commissioning, technical support services, and implementation management to industrial facilities across the country. Bryan has performed over 150 industrial energy audits and is the lead author of two papers on energy savings at food processing and refrigeration facilities. Bryan is a licensed Professional Mechanical Engineer with over 17 years of experience working with commercial, institutional, and industrial clients. As one of the leaders of kW's technical staff of 47 engineers, Bryan takes great pride in getting CFOs excited about sustainability by delivering results at the meter and on the bill.
MEEA prepared for the new year with a wealth of opportunities for advanced lighting professions to connect with peers and access the latest industry information.
New offerings including the Midwest LUMEN Network, the quarterly advanced lighting technical webinar series, and the Midwest Advanced Lighting Solutions Guide were unveiled by MEEA staff and Vicki Campbell, Director of Energy Efficiency at DTE Energy and Chair of Midwest LUMEN.
Recommended audience:
Utility efficiency program staff
Manufacturers
Distributers
Implementers and consultants
Others interested in promoting advanced lighting market adoption in the Midwest
Topics covered included:
Midwest LUMEN meetings
Networking events
Quarterly technical webinars
Web-based resources
The Midwest Advanced Lighting Solutions Guide
Midwest Energy Solutions Conference advanced lighting panel
MEEA Minute and event calendar updates
Top 10 Tips for Formatting and Designing Research Questionnaires
On Tuesday, March 19th, 2013, Blackstone Group identified the top ten tips to help your team streamline the development of research questionnaires – from energy efficiency evaluation to customer satisfaction – in terms of formatting and design.
Mike Burmester and Brandon Parrott-Sheffer, from the Blackstone Group, presented the top ten tips of questionnaire design based on their experience as full-service market researchers who have completed over 75 energy-related projects in the past three years alone.
The document summarizes a webinar on Kentucky's approach to achieving voluntary energy efficiency goals without mandated standards. It discusses Kentucky's energy landscape and a stakeholder project to design a strategy for meeting a 1% annual efficiency goal. The resulting Action Plan lays out strategies focused on voluntary measures, including annually tracking utility program performance. A key part is having utilities voluntarily report efficiency data to measure progress towards statewide goals. This could serve as a model for other states to achieve efficiency increases through voluntary cooperation rather than mandates.
C&I customers represent a substantial opportunity for load reduction, but the key is to incentivize projects with excellent performance, economics, and impact. Intelligent LED systems are redefining the lighting category and displacing legacy technologies with proven results.
The webinar, presented by Michael Feinstein from Digital Lumens, will cover the following topics:
• Industrial lighting technology review
• Intelligent LED System overview
• 90% energy reduction – the economics of intelligent LEDs
• Large C&I lighting customers – retrofit & new construction case studies
• Future of intelligent LED lighting
Mike Feinstein is responsible for leading the Digital Lumens sales and marketing teams and has had extensive experience in the entrepreneurial and investment worlds, most recently as Managing Director of Sempre Management. Previously, he was a General Partner at Venrock Associates and Atlas Venture, where he served on the boards of start-ups including Boston-Power, Ciclon Semiconductor (acquired by Texas Instruments), CircleLending, WaveSmith Networks (acquired by CIENA Corp.) and Quantum Bridge Communications (acquired by Motorola). Michael holds a B.S. in Electrical Engineering and Computer Science from MIT.
This presentation is part of the Midwest Energy Efficiency Alliance Industrial Webinar Series. Find out more at http://www.midwestindustrial.org.
Join us to learn how global energy management company Schneider Electric reduced energy consumption by 21.3% in its Midwest manufacturing facilities by implementing its own solutions and products. This experience of walking our talk now enables Schneider Electric to support our customers worldwide in similar energy efficiency processes. Jim Pauley, Sr. Vice President, External Affairs and Government Relations, will walk through the steps Schneider Electric took.
Jim Pauley is responsible for state and federal legislative and regulatory policy and government interaction. In addition, he has responsibility for the Schneider Electric strategy and participation in trade and industry associations, standards organizations and conformity assessment bodies. Over his 27 year career, he has held positions in industry standards, product management, marketing and product planning.
Pauley holds a bachelor’s degree in Electrical Engineering from the University of Kentucky and is a licensed professional engineer in Kentucky.
This presentation is part of the Midwest Energy Efficiency Alliance Industrial Webinar Series. Find out more at http://www.midwestindustrial.org
On December 20th, 2012, the US EPA finalized the Clean Air Act pollution standards known as ICI Boiler MACT. This standard applies to large boilers in a wide range of industrial facilities and institutions. This webinar, held January 30, 2013, discusses a US DOE sponsored technical assistance program to ensure that major sources burning coal or oil have information on cost-effective clean energy strategies for compliance , such as natural gas combined heat and power (CHP). Boiler owners and operators can learn about clean energy strategies to meet EPA boiler rules through DOE’s Boiler MACT Technical Assistance Program, which has been piloted in Ohio since March 2012 and is now being implemented throughout the Country. John Cuttica, Director of the Midwest Clean Energy Application Center and the Energy Resources Center, both located at the University of Illinois at Chicago, discusses how our Midwest industrial and institutional companies can take advantage of the technical assistance program. (this is the slides-only version; full video version is available at https://www.slideshare.net/MidwestEfficiency/combined-heat-and-power-as-a-boiler-mact-compliance-strategy-16406830)
Utilities at the cutting edge of DSM planning are implementing Strategic Energy Management (SEM) programs. By equipping C&I customers with powerful tools that help them strategically manage their energy use, utilities realize significant EE savings and deepen their customer relationships.
MEEA, in collaboration with members Xcel Energy and EnerNOC, presented this webinar on SEM best practices and opportunities for Midwest utilities, featuring a case study with Xcel Energy.
On this webinar we discussed:
1. The Value of SEM to Utilities – Understanding how SEM drives increased energy savings from behavioral improvements, more reliable savings from existing capital projects, and deeper customer engagement.
2. Best Practices in SEM Program Design – EnerNOC SEM Practice Lead Chad Gilless will discuss core SEM concepts and present common configurations and options that drive utility program results.
3. Xcel Energy’s Industrial Process Efficiency – Xcel Energy Program Manager Kerry Klemm will present a case study of an award-winning SEM program, the Xcel Energy Process Efficiency program.
Speakers:
Kerry Klemm – Program Manager, Xcel Energy
Kerry Klemm has been involved in energy conservation marketing since the mid 1990s and currently leads Xcel Energy’s Holistic team and manages the Process Efficiency program, which helps manufacturers make smart energy choices that lower their energy use, achieve environmental savings, and improve their bottom line.
Chad Gilless – Practice Lead, Strategic Energy Management, EnerNOC
Chad directs EnerNOC’s efforts to integrate energy into industrial business practices. Based in Portland, OR, Chad has expertise in organizational facilitation and coaching and has over 15 years of experience as a consultant and project manager. He has been with EnerNOC since 2010. He has led numerous programs and projects to deploy plant energy management programs within the industrial sectors, and his efforts have produced more than 68 million kW
One of the most challenging evaluation questions for residential lighting energy efficiency programs in the U.S. is the identification and correction for net-to-gross (NTG) effects such as free ridership and spillover. Over the last twenty years, considerable effort and financial resources have been directed toward accurately measuring these effects. Furthermore, the correction for these NTG effects has direct, and sometimes, drastic impact on program savings.
APT and Opinion Dynamics discuss a new framework for the estimation of free ridership in upstream lighting programs grounded in sound, economically rational decision making on the part of retail partners. This approach, built on functional retail behavior, provides a clearer more insightful look into the elements comprising the retail sales environment thus providing program implementers with a more predictable outcome of end results – up front.
Motivating commercial customers to actively and consistently apply energy efficient practices is quickly becoming central to many utility business practices. In this installment of the MEEA Technical Webinar series, Mike Presutti and John Lux from Agentis Energy outlined a variety of behavior based energy efficiency programs for commercial customers that are helping utilities accomplish their goals. Information on how utilities are using customer engagement platforms to drive behavior change at their commercial customers was detailed. Viability, process and preliminary results from in-process programs were discussed. Specifics include: The opportunity: Agentis analysis examples and information from 3rd party reports; Customer use and feedback data, plus examples from the field; Measurement methodologies and program projections. (Please note: This is a modified version of the presentation to remove confidential data. For that reason, this presentation is available in slide format only without the additional audio. Though the slides are still marked "Proprietary and Confidential," MEEA has obtained explicit permission from the presenters to post this version of the slides. If you are interested in the full version of this webinar or more information about Agentis' analytical platform, please contact the presenters using the contact information in the final slide.)
The document summarizes the growth of utility energy efficiency programs in the Midwest over the last ten years. It discusses how the Midwest Energy Efficiency Alliance (MEEA) has played a key role in supporting these programs by designing and administering programs, evaluating technologies, promoting best practices, and advancing policy. The presentation notes that while traditional programs focusing on lighting, appliances, and commercial and industrial incentives have achieved significant savings, utilities will need to explore new program areas and approaches to sustain savings given rising codes and standards and program saturation.
The MEEA Policy Webinar: National Study on the Energy Savings of Appliance Standards was held on Thursday March 29, 2012. The webinar outlined the recently released report, The Efficiency Boom: Cashing In on the Savings from Appliance Standards by the Appliance Standards Awareness Project (ASAP) and the American Council on an Energy-Efficient Economy (ACEEE). The webinar highlighted some of the key findings from the report, particularly the enormous savings that have already been achieved from existing standards and the potential for additional savings from new and updated standards. The report reviewed 34 products, and the webinar focused on three areas: products appropriate for state standards; products where state support is requested at the federal level; and products currently covered by utility programs. A regional look was given on the current and potential cost effective savings from appliance standards, as well as an in-depth look at specific natural gas-fired products that are relevant to the Midwest including: clothes washers, boilers, furnaces, and unit heaters. The webinar concluded with a discussion that focused on gas programs and analysis of the potential impact of standards on the cost effectiveness of utility programs.
In the latest in MEEA's Marketing Energy Efficiency webinar series, Drew McCartt, Senior Vice-President at Event Marketing Strategies talks about how face-to-face marketing through events is impacting the growth of energy efficiency in the Midwest. Experiential marketing, utilizing interactive and mobile staffed displays, combined with traditional marketing, is helping utility companies educate consumers and market their lighting, appliance recycling, and enrollment programs.
Kevin Duffy with ICF International discusses the impact and marketing strategies used for We Energies’ community-based education and outreach program, “Way to Save, Burlington!” The pilot is designed to engage all segments of the community by encouraging behavioral changes and connecting customers to existing programs and incentives.
This document discusses using social media and online tools to market energy efficiency programs. It provides an overview of the Energy Center of Wisconsin's (ECW) use of webinars, websites, email marketing and social media like Twitter and Facebook to educate customers. ECW has found success using these channels to reach broad audiences about topics like plug loads and building energy modeling. The document also covers best practices utilities can use for social media, including setting goals and measuring success, being transparent, and designating support teams.
This MEEA Policy Webinar, held on November 17, 2011, outlined the leading states in the Midwest, reviewed current trends, and highlighted programs in Illinois and Michigan, drawing from the American Council for an Energy-Efficient Economy's 2011 State Energy Efficiency Scorecard and energy efficiency experts from the state energy offices.
Michael Sciortino, from ACEEE, presented on the newly released ACEEE State Energy Efficiency Scorecard. He discussed the leading states in the Midwest and reasons for the recent gains. He further discussed the current trends in the Midwest that were used to quantify the ACEEE Scorecard rankings, and an explanation on why Michigan, Illinois and Nebraska were named the three most improved states. Best practices and programs were highlighted within the states.
Agnes Mrozowski, from the Illinois Energy Office, presented on Illinois Energy Now, the Department of Commerce & Economic Opportunity’s program that provides public sector customers with financial incentives to make energy improvements.
Robert Ozar, from the Michigan Public Service Commission, presented on Michigan’s Public Act 295 which is a comprehensive energy package promoting private investment in renewable energy and energy efficiency, and highlighted some of the successful programs within the state.
The 2nd Annual Midwest Regional Building Energy Codes Conference was held on October 5-6, 2011 in Chicago. It was attended by 42 guests representing state code officials, state energy officials, utility representatives, energy code advocates, manufacturers, energy efficiency program administrators, architects, and building trades professionals.
The conference built on the previous year's conference and the ongoing codes developments in the region to continue to work towards developing a regional approach to promoting the adoption, implementation, and improving compliance with building energy codes in the Midwest.
Solid-State Lighting (using LEDs) presents both a risk and an opportunity for utility incentives programs. While LEDs are rapidly becoming a feasible technology for achieving maximum lighting efficiency, high costs and uncertain performance have hampered the adoption of LED measures into lighting incentives programs.
This webinar features presentations from the DesignLights Consortium, the Northeast Energy Efficiency Partnership's national program that takes much of the guesswork out of identifying quality LED products, and by the Lighting Facts program of US DOE, highlighting their Energy Efficiency Partner Resource that will allow Energy Efficiency Partners to list LED lighting incentive programs in association with products from the Lighting Facts web site. An overview of the resource is provided along with an online demonstration.
Viewers also receive information on the Product Snapshot, which was developed to help energy efficiency partners navigate the rapidly changing lighting market, including upcoming standards and labeling requirements, and the impact of these changes on LED replacement lamps. The FTC Lighting Facts label will be mandatory starting January 1, 2012 and we will review the label requirements and explain how the FTC Lighting Facts label relates to the DOE Lighting Facts label.
This presentation was given to the Industrial Energy Efficiency Work Group of the Midwestern Governors Association on September 1, 2011. It provides an overview of industrial energy consumption in the 13 states that make up MEEA's footprint, and details current industrial energy efficiency policies and program activities within each state.
MEEA partnered with one of its Members, Rinnai, to offer an informational webinar on tankless water heating technology. This webinar began with an overview of tankless water heaters for both residential and commercial applications and then covered the energy- and money-savings potential, common misconceptions with these technologies, and real-world applications for these products. The webinar wrapped-up with a quick overview of Rinnai's boiler and combination hot water-boiler systems.
This is the presentation only; audio was not recorded for this webinar.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Food safety, prepare for the unexpected - So what can be done in order to be ready to address food safety, food Consumers, food producers and manufacturers, food transporters, food businesses, food retailers can ...
RFP for Reno's Community Assistance CenterThis Is Reno
Property appraisals completed in May for downtown Reno’s Community Assistance and Triage Centers (CAC) reveal that repairing the buildings to bring them back into service would cost an estimated $10.1 million—nearly four times the amount previously reported by city staff.
The Antyodaya Saral Haryana Portal is a pioneering initiative by the Government of Haryana aimed at providing citizens with seamless access to a wide range of government services
Contributi dei parlamentari del PD - Contributi L. 3/2019Partito democratico
DI SEGUITO SONO PUBBLICATI, AI SENSI DELL'ART. 11 DELLA LEGGE N. 3/2019, GLI IMPORTI RICEVUTI DALL'ENTRATA IN VIGORE DELLA SUDDETTA NORMA (31/01/2019) E FINO AL MESE SOLARE ANTECEDENTE QUELLO DELLA PUBBLICAZIONE SUL PRESENTE SITO
Contributi dei parlamentari del PD - Contributi L. 3/2019
MEEA Policy Webinar: A Quiet Revolution in Cost-Effectiveness Testing (slides only)
1. A Quiet Revolution in Cost-
Effectiveness Testing
MEEA Policy Webinar
October 17, 2018
2. The Trusted Source on Energy Efficiency
About MEEA
We are a nonprofit membership organization with 160+
members, including:
• Utilities
• Research institutions
• State and local governments
• Energy efficiency-related businesses
As the key resource and
champion for energy
efficiency in the Midwest,
MEEA helps a diverse range
of stakeholders understand
and implement cost-effective
energy efficiency strategies
that provide economic and
environmental benefits.
3. Agenda
Topic: Minnesota’s August 2018 study
of cost-effectiveness tests and
application of the NSPM framework
• Background and goals of the study
• Study methodology and findings
• Application of the study
Q&A at the end
6. Acknowledgement
This project was supported by a grant from the Minnesota
Department of Commerce, Division of Energy Resources
through the Conservation Applied Research and
Development (CARD) Program
For more information on CARD contact:
Mary Sue Lobenstein
R&D Program Administrator
Marysue.Lobenstein@state.mn.us
651-539-1872
6
7. Purpose and Scope of MN’s Cost-effectiveness Study
Study’s Goal: Evaluate how key elements of the
NSPM could be applied to energy efficiency cost-
effectiveness analyses in MN
7
Task 1: Review Current MN
Screening Practices
Task 2: Apply the Resource
Value Framework to MN
Task 3: Apply NSPM
Guidance to Inputs
Task 4: Prepare
Recommendations
Task 5: Final Report and
Dissemination of Results
9. Updating the Energy Efficiency
Cost-Effectiveness Framework in Minnesota
Application of the National Standard Practice Manual
to Minnesota
October 17, 2018
Tim Woolf
Synapse Energy Economics
Webinar Presentation to
Midwest Energy Efficiency Alliance
10. Overview
• Summary of the National Standard Practice Manual
• Current Cost-Effectiveness Practices in Minnesota
• Applying the Resource Value Framework
• To create the primary test for Minnesota
• Referred to as the Minnesota test
• Secondary Tests
Report Available
http://mn.gov/commerce-stat/pdfs/card-synapse-cost-effectiveness.pdf
Slide 10Tim Woolf - Synapse Energy Economics
11. Slide 11
Overview of the
National Standard Practice Manual
Tim Woolf - Synapse Energy Economics
12. Slide 12
NSPM Purpose & Scope
Purpose
• Defining policy-neutral principles for developing cost-effectiveness
tests
• Establishing a framework for selecting and developing a primary test
• Providing guidance on key cost-effectiveness inputs
Scope
• Focus is on utility customer-funded energy efficiency resources
• Addresses 1st order question:
• Which EE resources merit acquisition through customer-funded actions?
• In other words, which EE resources will provide net benefits to customers?
• Principles and framework apply to all other resources (including other
types of distributed energy resources)
Tim Woolf - Synapse Energy Economics
13. Slide 13
NSPM Outline
Tim Woolf - Synapse Energy Economics
Executive Summary
Introduction
Part 1: Developing Your Test
Part 2: Developing Test Inputs
6. Efficiency Costs & Benefits
7. Methods to Account for Costs &
Benefits
8. Participant Impacts
9. Discount Rates
10.Assessment Level
11.Analysis Period & End Effects
12.Analysis of Early Retirement
13.Free Rider & Spillover Effects
Appendices
A. Summary of Traditional Tests
B. Cost-Effectiveness of Other DERs
C. Accounting for Rate & Bill Impacts
D. Glossary
1. Principles
2. Resource Value Framework
3. Developing Resource Value Test
4. Relationship to Traditional Tests
5. Secondary Tests
14. Slide 14
NSPM – Part I
Tim Woolf - Synapse Energy Economics
Developing the Primary Cost-Effectiveness Test Using
the Resource Value Framework
Universal
Principles
Resource Value
Framework
Primary Test:
Resource Value
Test
15. Slide 15
NSPM Principles
1. Recognize that energy efficiency is a resource.
2. Account for applicable policy goals.
3. Account for all relevant costs & benefits (based on applicable
policies), even if impacts are hard to quantify.
4. Ensure symmetry across all relevant costs and benefits.
5. Conduct a forward-looking, long-term analysis that captures
incremental impacts of energy efficiency.
6. Ensure transparency in presenting the analysis and the
results.
Tim Woolf - Synapse Energy Economics
16. NSPM: Cost-Effectiveness Perspectives
• California Standard Practice Manual (CA SPM) – test perspectives are used to
define the scope of impacts to include in the “traditional” cost-effectiveness tests
• NPSM introduces the “regulatory” perspective, which is guided by the
jurisdiction’s energy and other applicable policy goals
16
CA SPM Perspectives
Utility Cost Test
Utility system
perspective
TRC Test
Utility system plus the
participant perspective
Societal Cost Test
Societal perspective
NSPM Regulatory
Perspective
Public utility commissions
Legislators
Muni/Coop advisory boards
Public power authorities
Other decision-makers
Tim Woolf - Synapse Energy Economics
17. Slide 17
NSPM – Primary & Secondary Tests
• The purpose of the primary test is to address the threshold
question of whether an energy efficiency resource will have
net benefits, and therefore merits acquisition by the utility.
• Secondary tests can help address other important questions:
• How will the EE affect total utility system costs?
• How will the EE affect average customer bills?
• Which programs should be prioritized if it is not possible to pursue all cost-
effective efficiency?
• What are the implications of addressing relevant policy goals?
• What are the implications of accounting for all societal impacts?
• Secondary tests and sensitivities can also help inform
decisions regarding which impacts to include in the primary
test.
Tim Woolf - Synapse Energy Economics
20. NSPM: Multiple Options for Tests
Slide 20Tim Woolf - Synapse Energy Economics
States are not limited to the three traditional tests.
As long as their test adheres to the NSPM principles.
Particularly about meeting policy goals.
22. Slide 22
Current Practice: Overview
• In general, current MN cost-effectiveness practices are quite
good – especially relative to other states.
• They generally account for key MN policy goals.
• They are generally comprehensive, in terms of impacts included.
• Some inputs (e.g., environmental costs) are well established.
• However, some elements could use improvement.
• Some utility impacts are missing.
• Some societal impacts are missing.
• Participant impacts are treated inconsistently.
• Discount rates warrant reconsideration.
• The NSPM recommends that every state should “test its test.”
• Using the Resource Value Framework
• Starting from a blank slate
• Avoiding the preconceived notions associated with the traditional tests.
Tim Woolf - Synapse Energy Economics
23. Slide 23
Current Practice: Tests
• The Next Generation Energy Act:
• In determining cost-effectiveness, the commissioner shall consider the costs and
benefits to ratepayers, the utility, participants, and society.
• Consequently, utilities calculate results for:
• Rate impact measure (RIM) test
• Utility cost (UC) test
• Participant cost (PC) test
• Societal cost (SC) test
• The societal cost test is used as the primary test for
determining cost-effectiveness.
Tim Woolf - Synapse Energy Economics
24. Other Fuel
Impacts
Water Impacts
Participant
Impacts
Low Income
Participant
ImpactsLow Income
Societal Impacts
Environmental
Impacts
Public Health
Impacts
Jobs & Econ
Development
Impacts
Energy
Security
Impacts
Utility
System
Impacts
Slide 24
Utility Cost Test as Applied in Minnesota
Tim Woolf - Synapse Energy Economics
Benefits:
Avoided energy, capacity, T&D
Avoided losses
Avoided ancillary services
Wholesale price suppression
Avoided cost of envtl compliance
Avoided credit & collection costs
Avoided RPS costs
Improved reliability
Reduced risk
Non-utility system impacts, not included
Utility System Impacts, partially included
Costs:
EM&V costs
EE measure costs
EE program costs
Shareholder incentives
25. Other Fuel
Impacts
Water Impacts
Participant
Impacts
Low Income
Participant
ImpactsLow Income
Societal Impacts
Environmental
Impacts
Public Health
Impacts
Jobs & Econ
Development
Impacts
Energy
Security
Impacts
Slide 25
Societal Cost Test as Applied in Minnesota
Tim Woolf - Synapse Energy Economics
Utility
System
Impacts Utility System Impacts,
partially included
Non-utility system impacts,
included
Non-utility system impacts,
partially included
Non-utility system impacts,
not included
26. Slide 26
Applying the
Resource Value Framework
to Create the Primary Test
for Minnesota
Tim Woolf - Synapse Energy Economics
27. Slide 27
RVF Step 1: Articulate Policy Goals
Tim Woolf - Synapse Energy Economics
• NSPM: Primary test should reflect relevant policy goals.
• The CA Standard Practice Manual does not address policy goals well.
• Policy goals come in many forms:
• Legislation
• Regulations
• Commission orders
• State energy plans
• Environmental plans
• Executive directives
• Policies can, and frequently are, updated over time.
• Stakeholders should provide input to policy interpretation.
• Utility regulators are not responsible for all state policy goals,
but they are responsible for those related to utility industries.
28. Slide 28
Example Minnesota Policy Goals
• In determining cost-effectiveness, the commissioner shall consider
the costs and benefits to ratepayers, the utility, participants, and
society. -Minn. Stat. § 216B.241, subd. 1c (f)
• The legislature finds that energy savings are an energy resource, and
that cost-effective energy savings are preferred over all other energy
resources.
• The legislature further finds that cost-effective energy savings should
be procured systematically and aggressively to reduce utility costs for
businesses and residents, improve the competitiveness and
profitability of businesses, create more energy-related jobs, reduce
the economic burden of fuel imports, and reduce pollution and
emissions that cause climate change. - Minn. Stat. § 216B.241
• See Appendix D for a more comprehensive list.
Tim Woolf - Synapse Energy Economics
29. Slide 29
RVF Step 2: Include All Utility System Impacts
• Utility system impacts = all the costs and benefits that are
experienced by electric utilities (in the case of electric EE) or
gas utilities (in the cases of gas EE) on behalf of customers.
• Utility system impacts = all those impacts that affect a utility’s
revenue requirements:
• either as an increase in revenue requirements (e.g., EE costs)
• or a decrease in revenue requirements (e.g., avoided costs)
• Should be the foundation of every cost-effectiveness test.
• Central to the principle of treating efficiency as a resource
• All utility system impacts should be included.
Tim Woolf - Synapse Energy Economics
30. Slide 30
Examples of Utility System Impacts
Tim Woolf - Synapse Energy Economics
31. Slide 31
Include All Utility System Impacts
• Minnesota utilities do not universally include the following:
• Shareholder incentive costs
• Wholesale price suppression effects
• Avoided credit and collection costs
• Avoided RPS costs
• Avoided costs of meeting CO2 goals
• Reduced risk
• Improved reliability
Recommendation:
• These impacts should be included in the Minnesota test.
• They should also be included in the Utility and Societal Cost tests.
• They should also be included in any rate impact analysis.
• Including these impacts is not a policy decision.
Tim Woolf - Synapse Energy Economics
32. Slide 32
RVF Step 3: Choose Relevant Non-Utility System Impacts
The decision on whether to include in the primary test any non-
utility system impact should:
• Be guided by the state’s relevant policy goals
• Be informed by a transparent discussion of those goals
• Be informed by stakeholder input
Tim Woolf - Synapse Energy Economics
33. Slide 33
Examples of Non-Utility System Impacts
Tim Woolf - Synapse Energy Economics
34. Slide 34
Step 3a: Whether to Include Participant Impacts
This can be the most challenging question in designing the primary
energy efficiency cost-effectiveness test.
• Participant costs are relatively easy to identify, quantify, and monetize.
• Participant benefits, in terms of energy bill reductions, should not
included in the primary test. (Utility avoided costs are used instead.)
• Participants also experience non-energy benefits (NEBs), for example
increased productivity, improved health and safety.
• Participant NEBs are more difficult to identify, quantify, and monetize.
Tim Woolf - Synapse Energy Economics
37. Slide 37
NSPM: Whether to Include Participant Impacts
• This is a policy decision (based on jurisdiction’s policy goals).
• Policies may support inclusion of certain participant impacts (e.g., low-
income, other fuels, etc.) but not necessarily all participant impacts.
• If participant costs are included, participant benefits should also be
included (to ensure symmetry and avoid bias), even hard-to-
quantify benefits
• Key questions to consider:
• Why does it matter what participants pay?
• Especially given that participants always benefit.
• Why should non-participants pay for benefits to participants?
• Especially benefits that are hard to quantify.
Tim Woolf - Synapse Energy Economics
38. Slide 38
MN: Whether to Include Participant Impacts
Current practice:
• Participant costs are included in the Societal Cost and the Participant Cost tests.
• Participant non-energy benefits are not included in any tests.
Policy directives:
• In determining cost-effectiveness, the commissioner shall consider the costs and
benefits to ratepayers, the utility, participants, and society. - Minn. Stat. §
216B.241, subd. 1c (f)
• This suggests that participant impacts are important, but also that the Participant Cost
test can be used to consider them.
• There are many references in legislation to consideration of societal impacts.
• These suggest that participant impacts should be accounted for somehow.
• Synapse interviews with stakeholders:
• There is a clear reluctance to account for participant NEBs, due to uncertainty and the
difficulty of quantifying them.
Tim Woolf - Synapse Energy Economics
39. Slide 39
MN: Whether to Include Participant Impacts
The question is whether to include these in the primary test.
Options
1. Include both participant costs and benefits (including NEBs).
2. Exclude both participant costs and benefits.
Recommendation
• Exclude both participant costs and benefits in the Minnesota Test.
• Use the Societal Cost test as a secondary test, and include participant impacts
(including the most important participant NEBs).
• Use the Participant Cost test as a secondary test, and include participant impacts
(including the most important participant NEBs).
Tim Woolf - Synapse Energy Economics
40. Slide 40
RVF Step 3b: Low-Income Impacts
Current practice
• Historically, low-income programs have not been held to the same cost-
effectiveness requirements as non-low-income programs, such as not needing to
have a benefit-cost ratio greater than one for the Societal Cost test.
Policy directives
• The commissioner shall ensure that each utility and association provides low-
income programs. - Minn. Stat. § 216B.241, subd. 7(a)
• A utility shall use the values established by the commission in conjunction with
other external factors, including socioeconomic costs, when evaluating and
selecting resource options in all proceedings before the commission, including
resource plan and certificate of need proceedings. - Minn. Stat. 216B.2422, Subd.
3(a)
Recommendation
• Continue the current practice.
• Ensure that low-income programs are well-designed, overcome all relevant
barriers to customers, and are reasonably low cost.
Tim Woolf - Synapse Energy Economics
41. Slide 41
RVF Step 3c: Other Fuel Impacts
Current practice
• The utilities do not consider other fuels in cost-effectiveness tests.
• The utilities do not provide multi-fuel EE programs.
Policy directives
• The legislature further finds that cost-effective energy savings should be procured
systematically and aggressively to reduce utility costs for businesses and residents,
improve the competitiveness and profitability of businesses, create more energy-
related jobs, reduce the economic burden of fuel imports, and reduce pollution and
emissions that cause climate change. - Minn. Stat. § 216B.241
• It is the goal of the state to reduce statewide greenhouse gas emissions across all
sectors producing those emissions to a level at least 15 percent below 2005 levels by
2015, to a level at least 30 percent below 2005 levels by 2025, and to a level at least
80 percent below 2005 levels by 2050. - Minn. Stat. § 216H.02, Subd. 1
Recommendation
• Include other fuels in the Minnesota test.
• Include other fuels in the Societal Cost test.
• Evaluate and offer multi-fuel programs.
Tim Woolf - Synapse Energy Economics
42. Slide 42
RVF Step 3d: Environmental Impacts
Current practice
• Minnesota utilities account for environmental impacts in the Societal Cost test.
• Including SO2, particulates, CO, N2O, lead, and CO2.
Policy directives
• The commissioner shall consider the costs and benefits to ratepayers, the utility,
participants, and society. - Minn. Stat. § 216B.241, subd. 1c (f)
• Cost-effective energy savings should be procured systematically and aggressively
to... reduce pollution and emissions that cause climate change. - Minn. Stat. §
216B.241
• It is the goal of the state to reduce statewide greenhouse gas emissions across all
sectors producing those emissions to a level at least 15 percent below 2005 levels
by 2015, to a level at least 30 percent below 2005 levels by 2025, and to a level at
least 80 percent below 2005 levels by 2050. - Minn. Stat. § 216H.02, Subd.
Recommendation
• Account for environmental impacts in the Minnesota test.
• Continue to account for environmental impacts in the Societal Cost test.
• Properly account for the cost of meeting CO2 goals in the Utility Cost test.
Tim Woolf - Synapse Energy Economics
43. Slide 43
RVF Step 3e: Socioeconomic Impacts
Current practice
• Minnesota utilities do not account for job, public health, or energy security impacts.
Policy directives
• A utility shall use the values established by the commission in conjunction with other
external factors, including socioeconomic costs, when evaluating and selecting
resource options in all proceedings before the commission, including resource plan
and certificate of need proceedings. - Minn. Stat. 216B.2422, Subd. 3(a)
• The commissioner shall consider the costs and benefits to ratepayers, the utility,
participants, and society. - Minn. Stat. § 216B.241, subd. 1c (f)
Recommendation
• The Minnesota Test should include job, public health, and energy security impacts.
• The Societal Cost test should include the job, public health, and energy security
impacts.
• Job impacts should (a) be net impacts, (b) avoid double-counting, and (c) not
necessarily be monetized.
Tim Woolf - Synapse Energy Economics
44. Slide 44
RVF Step 4: Ensure Symmetry Across Benefits and Costs
• Ensure that the test includes costs and benefits symmetrically.
• If a category of cost is included, corresponding benefits should be too.
(For example, if participant costs are included, participant benefits
should also be included.)
• Symmetry is necessary to avoid bias:
• If some costs are excluded, the framework will be biased in favor of EE.
• If some benefits are excluded, the framework will be biased against EE.
• Bias in either direction can result in misallocation of resources (over or
under investment)
• higher than necessary costs to meet energy needs
• too little or too much investment in actions to achieve jurisdiction's energy-related
policies goals
Tim Woolf - Synapse Energy Economics
45. Slide 45
RVF Step 5: Incremental, Forward-Looking, and Long-Term
• Incremental: What would have occurred relative to baseline.
• Has implications for avoided costs.
• Forward-looking: Sunk costs and benefits are not relevant to cost-
effectiveness analysis.
• Has implications regarding the Rate Impact Measure (RIM) test.
• Long-term: Analysis should capture full remaining lifecycle costs and
benefits.
• Has implications for the length of the study period.
Tim Woolf - Synapse Energy Economics
46. Slide 46
RVF Step 6: Develop Methodologies and Inputs
Tim Woolf - Synapse Energy Economics
• Inputs should be developed for all relevant impacts, even those that
are difficult to quantify and monetize.
• Ignoring some impacts because they are difficult to monetize will lead
to skewed results.
• Example approaches for developing inputs:
47. Slide 47
RVF Step 7: Transparency
Current Practice
• Minnesota has a robust reporting process through the Energy Savings Platform, the
Technical Reference Manuals, and the gas BENCOST model.
• The Excel model for electric EE is not well documented, making it difficult to
understand the methodologies used for the analysis.
Recommendation
• Commerce should organize an investigation of EE cost-effectiveness practices,
including a review of state policy goals.
• This report and meeting is an important step in that direction.
• The electric utilities should improve their EE cost-effectiveness model, using the
gas BENCOST model as an example.
Tim Woolf - Synapse Energy Economics
48. Other Fuel
Impacts
Water Impacts
Participant
Impacts
Low Income
Participant
ImpactsLow Income
Societal Impacts
Environmental
Impacts
Public Health
Impacts
Jobs & Econ
Development
Impacts
Energy
Security
Impacts
Utility
System
Impacts
Slide 48
The Minnesota Test
Tim Woolf - Synapse Energy Economics
Utility System Impacts,
included
Non-utility system impacts,
included
Non-utility system impacts,
not included
49. Slide 49
Summary and Prioritization of Recommendations
1. Decide whether to include participant impacts in primary test.
• If so, then it will be necessary to develop participant NEB estimates.
• If not, then it will be useful to develop estimates of participant NEBs for the
Societal Cost test.
2. Decide whether to include other fuel impacts in primary test.
• This is essentially required by statute.
• This will also be critical for meeting CO2 goals.
• Commodity price forecasts can be used for inputs.
3. Reconsider discount rates.
• Can have significant implications, especially for long-term programs.
4. Include missing elements of the Utility Cost test.
• Shareholder incentive costs, wholesale price suppression effects, avoided credit
and collection costs, avoided RPS costs
• These affect all tests.
Tim Woolf - Synapse Energy Economics
50. Contact Information
Synapse Energy Economics is a research and consulting firm
specializing in energy, economic, and environmental topics. Since
its inception in 1996, Synapse has been a leader in providing
rigorous technical and policy analysis of the electric power and
natural gas sectors for public interest and government clients.
Tim Woolf
Vice-President, Synapse Energy Economics
617-453-7031
twoolf@synapse-energy.com
www.synapse-energy.com
Slide 50Tim Woolf - Synapse Energy Economics
52. Applying the Study’s Findings
• Synapse’s study was very a helpful, comprehensive look at
MN’s cost-effectiveness tests.
• Applying the NSPM helps clarify the scope of each cost test
and how they relate to MN’s energy policies.
• Process is replicable to other states exploring cost-
effectiveness issues.
• Department is evaluating Synapse’s recommendations, and
intends to use them to inform a docketed process to update
cost-effectiveness inputs.
52
53. Please enter your questions in the
question box in the webinar
interface
Q&A
56. Thank you!
Adam Zoet
Minnesota Department of Commerce
adam.zoet@state.mn.us
Tim Woolf
Synapse Energy Economics
twoolf@synapse-energy.com
Gregory Ehrendreich
Midwest Energy Efficiency Alliance
gehrendreich@mwalliance.org
58. Slide 58
The National Standard Practice Manual
Tim Woolf - Synapse Energy Economics
Drivers…
▪ The traditional tests often do not capture or address pertinent
state policies.
▪ The traditional tests are often modified by states in an ad-hoc
manner, without clear principles or guidelines.
▪ Efficiency is not accurately valued in many jurisdictions.
▪ There is often a lack of transparency on why tests are chosen and
how they are applied.
59. Slide 59
NSPM Background
Tim Woolf - Synapse Energy Economics
• National Efficiency Screening Project (NESP)
includes stakeholders working to improve EE
cost-effectiveness.
• Over 75 organizations representing a range
of perspectives.
NSPM
Stakeholders
• Tim Woolf, Synapse Energy Economics
• Chris Neme, Energy Futures Group
• Marty Kushler, ACEEE
• Steve Schiller, Schiller Consulting
• Tom Eckman (Consultant and formerly
Northwest Power & Conservation Council)
NSPM Authors
60. Slide 60
NSPM Background (continued)
Tim Woolf - Synapse Energy Economics
• Roughly 40 experts representing a variety
of organizations from around the country.
• Provided several rounds of review/feedback
on draft manual.
NSPM Review
Committee
• Coordinated and funded by E4theFuture
• Managed by Julie Michals, E4theFuture
• Advisory Committee input on outreach &
education
• Earlier work on the NSPM managed by the
Home Performance Coalition
NSPM Funding,
Coordination,
and Advisors
For more information:
http://www.nationalefficiencyscreening.org/
61. California Manual: Traditional Tests
Test Perspective Key Question Answered Summary Approach
Utility Cost The utility system Will utility system costs be
reduced?
Includes the costs and benefits
experienced by the utility system
Total Resource
Cost
The utility system plus
participating
customers
Will utility system costs
plus program participants’
costs be reduced?
Includes the costs and benefits
experienced by the utility system,
plus costs and benefits to
program participants
Societal Cost Society as a whole Will total costs to society
be reduced?
Includes the costs and benefits
experienced by society as a
whole
Participant
Cost
Customers who
participate in an
efficiency program
Will program participants’
costs be reduced?
Includes the costs and benefits
experienced by the customers
who participate in the program
Rate Impact
Measure
Impact on rates paid by
all customers
Will utility rates be
reduced?
Includes the costs and benefits
that will affect utility rates,
including utility system costs and
benefits plus lost revenues
Slide 61Tim Woolf - Synapse Energy Economics
62. California Manual:
Slide 62Tim Woolf - Synapse Energy Economics
Components of
the traditional
tests in the
California Standard
Practice Manual
63. Slide 63
RVF Step 7: Ensure Transparency in Reporting
Tim Woolf - Synapse Energy Economics
Efficiency Cost-Effectiveness Reporting Template
Program/Sector/Portfolio Name: Date:
A. Monetized Utility System Costs B. Monetized Utility System Benefits
Measure Costs (utility portion) Avoided Energy Costs
Other Financial or Technical Support Costs Avoided Generating Capacity Costs
Program Administration Costs Avoided T&D Capacity Costs
Evaluation, Measurement, & Verification Avoided T&D Line Losses
Shareholder Incentive Costs Energy Price Suppression Effects
Avoided Costs of Complying with RPS
Avoided Environmental Compliance Costs
Avoided Bad Debt, Arrearages, etc.
Reduced Risk
Sub-Total Utility System Costs Sub-Total Utility System Benefits
C. Monetized Non-Utility Costs D. Monetized Non-Utility Benefits
Participant Costs
These impacts
would be
included to the
extent that they
are part of the
Resource Value
(primary) test.
Participant Benefits
These impacts
would be
included to the
extent that
they are part of
the Resource
Value (primary)
test.
Low-Income Customer Costs Low-Income Customer Benefits
Other Fuel Costs Other Fuel Benefits
Water and Other Resource Costs Water and Other Resource Benefits
Environmental Costs Environmental Benefits
Public Health Costs Public Health Benefits
Economic Development and Job Costs Economic Development and Job Benefits
Energy Security Costs Energy Security Benefits
Sub-Total Non-Utility Costs Sub-Total Non-Utility Benefits
E. Total Monetized Costs and Benefits
Total Costs (PV$) Total Benefits (PV$)
Benefit-Cost Ratio Net Benefits (PV$)
F. Non-Monetized Considerations
Economic Development and Job Impacts Quantitative information, and discussion of how considered
Market Transformation Impacts Qualitative considerations, and discussion of how considered
Other Non-Monetized Impacts Quantitative information, qualitative considerations, and how considered
Determination: Do Efficiency Resource Benefits Exceed Costs? [Yes / No]
Transparency is one of the
fundamental principles of
cost-effectiveness analysis.
States should have
transparent reporting for all
inputs, assumptions,
methodologies, and results.
The NSPM provides an
example template to assist
with transparent reporting.
64. Slide 64
RVF Step 7: Ensure Transparency in Decisions
• The process for developing the primary cost-effectiveness test should be
open to all stakeholders.
• Stakeholder input can be achieved through a variety of means:
• rulemaking process
• generic jurisdiction-wide docket
• working groups or technical sessions
• The process should address objectives based on current policies.
• However, it should be flexible to incorporate evolution of policies through time
• Assessment of policy goals may require consultation with other
government agencies.
• Environmental protection
• Health and human services
• Economic development
Tim Woolf - Synapse Energy Economics
65. Slide 65
Secondary Tests: The Utility Cost Test
• The UC test provides very useful information on cost-effectiveness:
• Effect of EE on total utility costs
• Effect of EE on average customer bills
• Effect of EE on revenue requirements
• If the commission wishes to investigate rate impacts of EE, the Utility
Cost test should be the foundation for that analysis.
Recommendation
• Minnesota should use the Utility Cost test as a secondary test for
cost-effectiveness.
• The UC test should include all utility system impacts.
• The UC test should properly account for the cost of compliance with
environmental requirements (especially CO2 goals).
Tim Woolf - Synapse Energy Economics
66. Slide 66
Secondary Tests: The Societal Cost Test
• Minnesota legislation requires consideration of the costs and
benefits to society.
• Minnesota legislation requires the consideration of
socioeconomic impacts.
Recommendation
• Minnesota should use the Societal Cost test as a secondary test
for cost-effectiveness.
• The SC test should
• Include all utility system impacts, as recommended above.
• Include socioeconomic impacts, as recommended above.
• Include participant impacts (including the most important participant NEBs).
Tim Woolf - Synapse Energy Economics
67. Slide 67
Secondary Tests: The Participant Cost Test
NSPM
• The Participant Cost test is not appropriate for cost-
effectiveness analysis.
• The impacts on participants is not an important criterion for resource planning.
• The PC test is very important for program design and for marketing to customers.
• Participants are almost always better off from EE.
Recommendation
• Minnesota should use the results of the Participant Cost test for
designing EE programs.
• Minnesota should continue to downplay the results of the PC
test for the purpose of cost-effectiveness analysis.
• The PC test should include the most important participant NEBs.
Tim Woolf - Synapse Energy Economics
68. Slide 68
Secondary Tests: The Rate Impact Measure Test
Tim Woolf - Synapse Energy Economics
NSPM
• The RIM test is not appropriate for cost-effectiveness analyses:
• Does not provide meaningful information about the magnitude of rate
impacts, or customer equity
• Will not result in lowest costs to customers
• Is inconsistent with economic theory. The RIM test includes sunk costs, which
should not be used for choosing new investments
• Can lead to perverse outcomes, where large benefits are rejected to avoid de
minimus rate impacts
• Can be misleading. Results suggest that customers will be exposed to new
costs, which is not true
• Other approaches should be used to assess rate and equity issues.
Recommendation
• The RIM test should not be used for cost-effectiveness analyses
69. Slide 69
Priority of Impacts in the Minnesota Test
Impacts Potential Magnitude
Challenge in
Developing
Priority
Other Fuel Impacts High for some programs Low High
Utility System Impacts Very High Low High
Environmental Impacts High Moderate High
Water Savings Moderate for some programs Low Medium
Jobs & Economic
Development
Moderate to high High Medium
Public Health Low to moderate High Low
Energy Security Low High Low
Participant NEBs* High High Low-High
Tim Woolf - Synapse Energy Economics
*If the Minnesota test includes participant impacts, then participant NEBs should
be a high priority. If not, they should be low.
70. Slide 70
Recommendations for Further Research
• Several utility system benefits are not analyzed in Minnesota
but could have important implications for all tests.
• The cost of meeting Minnesota CO2 goals.
• Wholesale electricity and gas market price suppression effects.
• Reduced credit and collection costs.
• Reduced risk of EE.
• Increased reliability of EE.
• If the commission chooses to include participant impacts, there
are several issues that could assist with developing inputs.
• Which participant NEBs are likely to be most significant?
• Which programs are likely to be most affected by participant NEBs?
• Are there NEB estimates from other states that are relevant to Minnesota?
• Conduct Minnesota studies to monetize the most significant participant NEBs.
• Conduct additional studies to develop proxies for other participant NEBs.
Tim Woolf - Synapse Energy Economics
72. Slide 72
Discount Rates: Current Minnesota Practice
Tim Woolf - Synapse Energy Economics
Cost-Effectiveness Test MN Practice
Societal Social discount rate for Residential
Utility WACC for Commercial
Utility Utility WACC
Participant Social discount rate for Residential
Utility WACC for Commercial
RIM Utility WACC
73. Slide 73
Discount Rates: Implications
Tim Woolf - Synapse Energy Economics
Discount rates can have a significant impact on costs and benefits.
Especially for programs with long measure lives (new construction, retrofit).
74. Slide 74
Discount Rates: Key Concepts
• The discount rate reflects a particular “time preference,” which
is the relative importance of short- versus long-term impacts.
• The choice of discount rate is a policy decision that should be
informed by the jurisdiction’s applicable policies.
• The choice of discount rate should reflect the fundamental
objective of efficiency cost-effectiveness analysis: to identify
resources that will best serve customers over the long term,
while also achieving applicable policy goals.
Tim Woolf - Synapse Energy Economics
75. Slide 75
Utility WACC is not consistent with Goals of EE Testing
Using the utility WACC for a discount rate is inconsistent with the goal of energy
efficiency cost-effectiveness analysis:
• For unregulated businesses, the goal of benefit-cost analyses is to maximize shareholder value.
• In light of this goal, the WACC is the best discount rate to use.
• Investors’ time preference is driven entirely by investors’ opportunity cost and risk, and the
WACC reflects both of those.
• For regulated utilities, the goal of benefit-cost analysis is fundamentally different:
• Goal: to identify those investments/resources that will best serve customers – all customers.
• Goal: to provide safe, reliable, low-cost power to customers, and meet other state policy goals.
• The goal is not to maximize shareholder value.
• Since the goal of the EE testing is different, the time preference is different as well.
• The discount rate should reflect the time preference of customers, since the resource planning
is on their behalf.
• The rate should reflect the time preference of all customers – not any one group of customers.
• The rate should also reflect the time preference that accounts for statutory and regulatory
policy goals (i.e., the regulatory perspective).
Tim Woolf - Synapse Energy Economics
76. Slide 76
Utility WACC is not consistent with Goals of EE Testing
Ultimately, the decision for which discount rate to use is a
regulatory policy decision, and should be consistent with state
energy policy goals.
• The discount rate should reflect the time preference chosen by
regulators on behalf of all customers.
• The regulatory time preference might be different from: the
utility WACC; any one customer’s discount rate; or a societal
discount rate.
• State policy goals, such as intergenerational equity, increased
reliability, reduced risk, environmental protection,
socioeconomic impacts, suggest a much greater emphasis on
long-term impacts than what is reflected in the utility WACC.
Tim Woolf - Synapse Energy Economics
77. Slide 77
Discount Rates: Recommendation
• A societal discount rate should be used for the primary and
secondary Minnesota cost-effectiveness tests:
• The Minnesota test
• The Utility Cost test
• The Societal Cost test
• A societal discount rate is consistent with the Minnesota
regulatory perspective.
• MN legislation frequently refers to social and socioeconomic impacts.
• Using the same discount rate allows for a direct comparison
across different tests.
• The Utility Cost versus the Minnesota test.
• The Minnesota versus the Societal Cost test.
Tim Woolf - Synapse Energy Economics
78. Slide 78
Analysis Period
NSPM
• The analysis period should be long enough to capture the full stream of costs and
benefits associated with the efficiency resources being analyzed.
Current Practice
• Analysis period is limited to the life of the measures with the longest lives.
• But the measure lives are capped at 20 years, regardless of whether the
estimated measure life is longer.
• This creates a 20-year cap on the analysis period.
Recommendation
• Minnesota utilities should not place an artificial cap on efficiency measure lives.
• Minnesota utilities should use an analysis period of at least 30 years, perhaps 40
years for some long-lived measures.
Tim Woolf - Synapse Energy Economics
79. Slide 79
Assessment Level
NSPM
• When applying the primary cost-effectiveness test, efficiency resources should be
analyzed at the program, customer segment, or portfolio level.
• When applying the primary cost-effectiveness test, efficiency resources should be
not be analyzed at the measure level.
Current Practice
• Commerce approves EE cost-effectiveness at the customer segment level.
• Some utilities apparently screen some measures at the measure level.
Recommendation
• Commerce should continue to approve EE cost-effectiveness at the customer
segment level
• Minnesota utilities should not screen efficiency resources at the measure level.
Tim Woolf - Synapse Energy Economics
80. Slide 80
Better Options for Assessing Rate Impacts
Tim Woolf - Synapse Energy Economics
A thorough understanding of rate impacts requires a comprehensive
analysis of three important factors:
• Rate impacts, to provide an indication of the extent to which rates for all
customers might increase.
• Bill impacts, to provide an indication of the extent to which customer bills will be
reduced for those customers that install energy efficiency measures.
• Participation impacts, to provide an indication of the portion of customers that will
experience bill reductions or bill increases.
Taken together, these three factors indicate the extent to which customers
will benefit from energy efficiency resources.
Participation impacts are also key to understanding the extent to which
energy efficiency resources are being adopted over time.
81. Slide 81
EE Participation Can Be Increased
Through Program Design
• EE programs should address all end-uses.
• EE programs should address all customer types.
• EE programs should address all relevant markets:
• retrofit, new construction, point-of-sale, upstream, etc.
• All customers should have an opportunity to participate.
• Customer incentives and support should be tailored to assist all
customers in overcoming barriers to energy efficiency.
• Program Administrators should actively pursue the non-
participants and those who have not participated in a while.
Tim Woolf - Synapse Energy Economics
82. Slide 82
EE Participation Can Be Increased
Through Regulatory Policies
• Increase budgets to increase participation.
• This is the exact opposite of the typical response to rate impact concerns.
• Require program administrators to gather better data on
participation.
• Require program administrators to analyze participation rates
when designing programs.
• Include participation requirements in efficiency plans, goals,
and targets.
• Incorporate participation rates in utility shareholder incentives.
• Make the participation goal explicit:
• Achieving all cost-effective energy efficiency means serving all customers.
Tim Woolf - Synapse Energy Economics
83. Slide 83
Points and Counterpoints on Participant Impacts
Tim Woolf - Synapse Energy Economics
84. Slide 84
Would Excluding Participant Costs Result in an
Uneconomic Outcome?
Tim Woolf - Synapse Energy Economics
Hypothetical Example:
• Retail electric rates = 14 ȼ/kWh
• Total avoided costs = 10 ȼ/kWh
• EE measure cost = 11 ȼ/kWh
• EE measure rebate = 5 ȼ/kWh
With
Participant
Cost (PC)
Without PC:
Utility System
Without PC:
Participant
Cost (ȼ/kWh) 11 5 6
Benefit (ȼ/kWh) 10 10 14
Benefit -Cost
Ratio
0.91 2.0 2.3
Answer: Yes, but only from a societal perspective.
If a societal perspective is preferred, then a full Societal Cost test should be used.