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Delivering Energy Efficiency  on a Large Scale:  Challenges and Lessons Learned Richard Cowart  &  Blair Hamilton Managing Energy Demand November  4, 2009
The Regulatory  Assistance Project (RAP) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Today’s Topics  ,[object Object],[object Object],[object Object],[object Object],[object Object]
Efficiency is Low-cost Key to Sustainability
An “Efficiency First” Power & Heat Policy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Deep Efficiency Essential for GHG Abatement  5 * * * * * Terrestrial carbon  Low carbon energy supply * * * Energy efficiency * * Abatement potential by country/region, by type of abatement, Mt 2020 * * * * * * * * * * * * Source: McKinsey Global GHG Abatement Cost Curve v2.0, team analysis
Power Markets Do Not  Deliver Efficiency ,[object Object],[object Object],[object Object],[object Object],[object Object],Market barriers Lack of information Upfront costs Payback periods  -  high implicit discount rate Consumer inertia:Hassle factor, timing mismatches Split incentives – eg, Builder/buyer Tenant/landlord Unpriced external costs Uncompensated benefits –eg, system reliability
Efficiency in Liberalized Markets: US Roller-Coaster ,[object Object],[object Object],[object Object],[object Object],[object Object]
Elements of a Large-Scale Efficiency Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object]
1. Who Has the Efficiency Obligation?  Top 10 US States use a variety of approaches Best structure depends on local conditions  State Efficiency Portfolio Manager Structure of Top 10 (ACEEE) California Regulated Utility  (DNO with supply function) Massachusetts Regulated Utility  (DNO with supply function) Connecticut Regulated Utility  (DNO with supply function) Vermont Contracted Private Entity (non profit) Wisconsin Contracted Private Entity (non profit) New York Government Agency Oregon New, Sole-Purpose Public Corporation Minnesota Regulated Utility  (DNO with supply function) New Jersey Contracted Private Entity (for profit) Washington Regulated Utility  (DNO with supply function)
California: A Portfolio of Efficiency Measures Pays Off over Time California efficiency investments lower demand by 25% over 25 years
2. Stable & Adequate Funding  is Essential ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Can We Use Carbon Markets to Finance Energy Efficiency?  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Efficiency programs can save 7x more carbon per consumer $ than carbon taxes or prices
3. Reform Energy Markets and Grids for Efficiency Options ,[object Object],[object Object],[object Object],[object Object]
4. Make Efficiency Profitable ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
5. Competent & Motivated    Energy Efficiency Manager ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Vermont Presentation ,[object Object],[object Object],Blair Hamilton  is a founder and Policy Director of the Vermont Energy Investment Corporation, and a consultant to RAP. He has a 35-year career in energy efficiency research, program development, technical analysis, program design. He has consulted widely and authored numerous studies and publications. He managed the development of the first Energy Efficiency Utility in North America, which is looked to internationally for its exemplary achievements.
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Moving to a Sustainable  Energy Future BUSINESS AS USUAL ENERGY USE TIME EFFICIENCY RESOURCES & REDUCED USE SUSTAINABLE ENERGY RESOURCES UNSUSTAINABLE ENERGY RESOURCES ENERGY REQUIREMENTS
How Much Efficiency  Should We Plan For? ,[object Object],[object Object],[object Object],[object Object],[object Object],Because efficiency is our cleanest and least costly energy resource….
2007 Savings in Leading States as Percent of Annual Resource Requirements  (Efficiency program savings, not including codes,  standards & naturally-occurring efficiency) State % Savings Vermont 1.8% California 1.3% Hawaii 1.2% Connecticut 1.1% Maine 0.9% Oregon 0.9% Massachusetts 0.9%
Vermont Electricity Savings as % of Annual Resource Requirements (Efficiency Utility program savings, not including codes, standards & naturally-occurring efficiency)
 
Vermont’s  “Energy Efficiency Utility” ,[object Object],[object Object],[object Object],[object Object]
What Markets Does  Efficiency Vermont Work In? Existing Businesses Equipment Replacement Business New Construction New Homes Efficient Products Existing Homes Low-Income ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What Does Efficiency Vermont Do  to Obtain Energy Savings? ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],What Methods Does Efficiency Vermont  Use to Obtain Energy Savings?
Efficiency Vermont  Cost of Electric Savings in 2008
Lessons from Experience ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],Lessons from Experience
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Lessons from Experience
[object Object],[object Object],[object Object],[object Object],Lessons from Experience
[object Object],[object Object],[object Object],Lessons from Experience
“ If I were emperor of the world, I would put the pedal to the floor on energy efficiency and conservation for the next decade.”  —  Dr. Stephen Chu, United States Secretary of Energy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Richard Cowart - Delivering Energy Efficiency on a Large Scale: Challenges and Lessons Learned

  • 1. Delivering Energy Efficiency on a Large Scale: Challenges and Lessons Learned Richard Cowart & Blair Hamilton Managing Energy Demand November 4, 2009
  • 2.
  • 3.
  • 4. Efficiency is Low-cost Key to Sustainability
  • 5.
  • 6. Deep Efficiency Essential for GHG Abatement 5 * * * * * Terrestrial carbon Low carbon energy supply * * * Energy efficiency * * Abatement potential by country/region, by type of abatement, Mt 2020 * * * * * * * * * * * * Source: McKinsey Global GHG Abatement Cost Curve v2.0, team analysis
  • 7.
  • 8.
  • 9.
  • 10. 1. Who Has the Efficiency Obligation? Top 10 US States use a variety of approaches Best structure depends on local conditions State Efficiency Portfolio Manager Structure of Top 10 (ACEEE) California Regulated Utility (DNO with supply function) Massachusetts Regulated Utility (DNO with supply function) Connecticut Regulated Utility (DNO with supply function) Vermont Contracted Private Entity (non profit) Wisconsin Contracted Private Entity (non profit) New York Government Agency Oregon New, Sole-Purpose Public Corporation Minnesota Regulated Utility (DNO with supply function) New Jersey Contracted Private Entity (for profit) Washington Regulated Utility (DNO with supply function)
  • 11. California: A Portfolio of Efficiency Measures Pays Off over Time California efficiency investments lower demand by 25% over 25 years
  • 12.
  • 13.
  • 14. Efficiency programs can save 7x more carbon per consumer $ than carbon taxes or prices
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20. Moving to a Sustainable Energy Future BUSINESS AS USUAL ENERGY USE TIME EFFICIENCY RESOURCES & REDUCED USE SUSTAINABLE ENERGY RESOURCES UNSUSTAINABLE ENERGY RESOURCES ENERGY REQUIREMENTS
  • 21.
  • 22. 2007 Savings in Leading States as Percent of Annual Resource Requirements (Efficiency program savings, not including codes, standards & naturally-occurring efficiency) State % Savings Vermont 1.8% California 1.3% Hawaii 1.2% Connecticut 1.1% Maine 0.9% Oregon 0.9% Massachusetts 0.9%
  • 23. Vermont Electricity Savings as % of Annual Resource Requirements (Efficiency Utility program savings, not including codes, standards & naturally-occurring efficiency)
  • 24.  
  • 25.
  • 26.
  • 27.
  • 28.
  • 29. Efficiency Vermont Cost of Electric Savings in 2008
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.

Editor's Notes

  1. LOX-HEW001-20081020-ADCS