UTILITY ENERGY EFFICIENCY POLICIES AND PROGRAMS. Mark Hopkins, UN Foundation

Transcription

1 UTILITY ENERGY EFFICIENCY POLICIES AND PROGRAMS Mark Hopkins, UN Foundation

2 Status of US Utility EE Programs Electric utility energy efficiency programs spent $5.5B in 2011, double the amount spent in 2008 Load management programs spent an additional $1.3B Gas utilities spent $1.2B on energy efficiency programs in 2011 Leading utilities are spending 3-5% of revenues on efficiency and load management programs

3 Program Funding Trends $0.9 Program Spending (Billion $) $1.8 Natural Gas Programs Electricity Programs $1.2 $1.0 $0.9 $1.0 $1.1 $0.3 $1.4 $1.4 $1.6 $0.3 $2.2 $0.6 $2.6 $0.9 $3.4 $

4 Types of Programs Financial rebates to encourage customer to purchase high efficiency HVAC systems, ENERGY STAR appliances, lighting systems, motors, etc. Consumer price discounts in stores to purchase CFLs, LEDs and other simple EE measures Financial incentives and technical assistance to make new buildings more energy efficient Load controls to reduce peak demand Recycling programs for older appliances One stop service for small businesses Energy audits, information and training

5 Utility EE Policies & Programs NH VT ME NJ MD DE DC VA RI MA CT Significant EE Programs 2006 and earlier Significant EE Programs 2007 and later Source: American Council for an Energy-Efficient Economy beginning

6 State Investment and Savings in State 2010 EE Spending per Capita EE Savings as a % of Total kwh Sales () Vermont Massachusetts Connecticut California Minnesota Rhode Island New York Washington Oregon Savings by major utilities or statewide efficiency program; savings calculated on a net basis, accounting for estimated free riders and spillover effects.

7 Energy Savings Results Leading electric utilities reducing electricity use by % per year (10-20% after 10 years) Cumulative savings 24 TWh/yr in 2010, equal to about 3.3% of national electricity use Typical benefit-cost ratio of (all costs) Cost of saved energy ~ 2.5 cents per kwh on average, making energy efficiency the lowest cost supply resource

8 Policies to Stimulate Utility EE Programs Set energy savings goals or requirements Undertake integrated resource planning Provide convenient EE program cost recovery Decouple sales & fixed cost recovery so that utilities do not lose money for lower sales Allow utilities to earn a profit on their EE and DSM investement (in addition to cost recovery)

9 Energy Efficiency Resource Standards 24 States October 2011

10 Decoupling and Shareholder Incentive Mechanisms Decoupling of electric utility sales and fixed cost recovery adopted by California and 10 other states Other states allow utilities to recover lost revenues in addition to EE program costs 25 states permit utilities to earn a profit (or bonus), in addition to cost recovery, for EE and DSM investments Incentive amount is usually based on performance; e.g., level of energy savings and/or net economic benefits

11 US Appliance & Lighting Efficiency Standards Standards cover 50+ types of residential, commercial and industrial products Standards based on maximum technologically feasible and economically justified efficiency levels For some products, second or third generation standards have now been adopted Total 2010 energy savings from standards 280 TWh/yr (7.5% of national electricity use)

12 The Refrigerator Story

13 Net Economic Savings from Standards Net Savings (billion 2010$) DOE Rules: DOE Rules: EISA 2007 EPAct 2005 EPAct 1992 NAECA 1987 & Source: ACEEE and the Appliance Standards Awareness Project

14 Appliance and Lighting Efficiency Standards Future Prospects Savings from existing standards will grow to ~680 TWh in 2025, 15% savings Peak demand reduction will grow to about 220 GW by 2025, 18% savings Existing standards will provide $1.1 trillion in net economic benefits over the long run New and updated standards could provide an additional 210 TWh of energy savings, 42 GW of peak demand reduction by 2025, and $165 billion in net economic benefits Source: ACEEE and the Appliance Standards Awareness Project

15 Federal ENERGY STAR Program Energy efficiency labeling for over 60 product categories, 40,000 individual product models, 3 rd party testing and certification started in million ENERGY STAR new homes built and 2 billion square feet of ENERGY STAR commercial floor space Energy savings of ~245 TWh per year; $20 billion in 2010 Most energy savings from computers and monitors, commercial building improvements Avoided greenhouse gas emissions in 2010 equivalent to 38 million vehicles Source: U.S. EPA

16 The Challenge Ahead for the U.S.: Bending the Demand Curve Down