Creating A Cleaner Energy Future For the Commonwealth Clean Energy Opportunities in Massachusetts

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1 Clean Energy Opportunities in Massachusetts Juniper Networks Energy Summit June 26, 2013 Commissioner Mark Sylvia

2 Department of Energy Resources Creating a Cleaner Energy Future for the Commonwealth Ensure deployment of all cost-effective energy efficiency Maximize development of clean energy resources Create and implement energy strategies to assure reliable supplies and improve the cost of clean energy relative to fossil-fuel based generation Support Massachusetts clean energy companies and spur Massachusetts clean energy employment

3 State Law Drives Investments, Creates Opportunity Leading by Example Executive Order 484 Green Communities Act (GCA) All cost effective energy efficiency Green Communities Advanced building energy codes Global Warming Solutions Act (GWSA) Clean Energy and Climate Plan set GHG emission reduction goals at 25% below 1990 Baseline Levels by 2020; 80% reduction by 2050 Governor Patrick s Renewable Energy Goals Install 1600 megawatts of solar capacity by 2020 Install 2000 megawatts of wind capacity by

4 The Energy Stakeholder Landscape Municipalities Fed Gov t DEP/DCAMM Corporations DPU Utilities DOER Legislature BSEE/BBRS Developers DOR Citizens 5

5 Strategic Levers Can Address Key Issues Optimize energy efficiency & demand response Support distributed generation and CHP Address fuel diversity with renewables Support thermal renewable energy Develop financing mechanisms to aid consumer adoption Incentivize new oil/natural gas generators to support dual fuel Assess tools to reduce consumption (e.g. alternative rate structures) 6

6 Initiatives, Programs, Incentives Mass Save Energy Efficiency Programs Green Communities Leading by Example / Accelerated Energy Program Building Energy Codes / Labeling / ZNEB Alternative Energy Portfolio Standard (CHP) Renewable Energy Portfolio Standard Class I & Class II (SRECs, Solarize Mass ) Net metering Study/Investment support Long term contracts 7

7 Nation-Leading Energy Efficiency Goals THREE-YEAR PLAN GOALS * % Increase Total Program Investment (million $) $1,627 $2,246 24% Total Benefits (million $) $6,039 $8,980 49% Annual Electric Savings (GWh) 2,625 3,706 41% Annual Gas Savings (million therms) % Total Costs (TRC) (million $) $2,178 $2,774 28% Net Benefits (TRC) (million $) $3,861 $6,206 60% * Per DPU order 1/31/13 8

8 Sector View of Energy Efficiency Investments & Benefits ( ) $10,000,000,000 $9,000,000,000 $8,922 $8,000,000,000 $7,000,000,000 $6,000,000,000 $6,039 $5,639 $5,000,000,000 $4,000,000,000 costs benefits $3,000,000,000 $2,756 $2,000,000,000 $1,000,000,000 $- $526 Total Residential Low Income C&I Total Statewide electric and gas 9

9 ISO-NE Forecasting Model For first time, energy efficiency is recognized as resource for state/region, flattening demand Impact of Energy Efficiency

10 Commercial & Industrial Programs Design for Energy Efficiency Early design collaboration with Mass Save Incentives up to 50% for cost of engineering study to identify high efficiency opportunities New Construction Comprehensiveness through technical assistance Incentives up to 75% of incremental costs related to existing code, up to 90% when combined with design Retrofit Targets for energy efficient opportunities in existing buildings/equipment Replacement of inefficient equipment or systems Reduction of owners operating costs Incentives up to 50% 11

11 12 For Savings

12 Great Incentives for CHP Combined Heat & Power Considered as Efficiency Measure CAPex rebates and technical assistance through Mass Save Marketable credits through Alternative Energy Portfolio Standard (APS) Mass Save Structure for Approved CHP Projects All systems: award limited to no more than 50% of installed cost Small systems (<150 kw): $750/kW (Max Award = $112,500) Large System (150 kw-10+ MW): varies inversely with size, 20-50% of CAPex Example: UMass Medical School Campus 7.5 MW expansion of existing 9 MW CHP plant. Alternative Energy Portfolio Standard Administered directly by Mass. DOER The amount of incentive for a qualified CHP system is based on its metered performance. Supplemental and complementary to the Mass Save CAPex incentive Directly proportional to the metered output of kwh and useful BTUs, and the metered BTUs of fuel consumption 7.5 MW awarded $5.6 million from Mass Save, through National Grid (approx 20% of CAPex) 13

13 Green Communities Designation cities and towns designated Green Communities; 45% of Mass. residents Nearly $24 million invested to implement energy efficiency and renewable technologies Total 20% reduction commitment by municipalities equivalent to the annual energy consumption of approximately 13,600 Massachusetts households

14 Leading By Example Program Established in 2007 by Executive Order Reduce Greenhouse Gas emissions 40% by 2020 Reduce energy consumption 35% by % renewable energy goal by 2020 Highlights to Date Over $200 million worth of investments in largescale energy efficiency projects at state facilities initiated by DCAMM $9.7 million in ARRA funding invested in real time energy meters across 25 million square feet of state buildings Greenhouse gas emissions have decreased by 17% thru FY 12 Commonwealth agencies have reduced their use of heating oil by over 13 million gallons from 2006, a 60% decrease. 15

15 Mass. Building Energy Codes Building energy codes are intrinsic market drivers for energy efficiency What is the Massachusetts base code? IECC 2009/ASHRAE , with Massachusetts amendments Updated every three years State expected to adopt IECC 2012/ASHRAE this year Stretch code Requires voluntary adoption by city or town 15-20% more energy efficient 2012 IECC is based on Massachusetts 2009 commercial stretch code 16

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17 Building Asset Rating Pilot Goal: identify cost-effective, scalable method to assess as-built building & systems Testing new methods: rapid energy modeling & interval meter data analysis Phase 1: testing innovation on 11 buildings complete Phase 2: demonstration on buildings 2013 Phase 1 Findings Quality building assessments possible at less cost than traditional ASHRAE Level 2-type method $25k traditional vs. < $8k BAR methods Comprehensive energy data critical to BAR method No correlation of EUI w/ building size or age Focus on commercial office buildings On-going collaboration with US DOE, CA 18

18 High Performance Buildings State zero net energy buildings lead by example North Shore Community College natural ventilation, lighting, a green roof, building orientation, chilled beams, geothermal energy technologies and photovoltaic panels Fish & Wildlife 19

19 Renewable Energy Snapshot NEW SOLAR GOAL: 1,600 MW by 2020

20 $/Watt Cost Average Solar $/Watt Installed Costs ( ) 2 nd lowest installation costs for commercial projects 2012 SEIA/GTM Research $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 Linear (>100 kw Roof Mount) Linear ( kw Roof Mount) Linear (0-10 kw) Linear (Ground Mount) $2.00 $1.00 $0.00 1/1/2010 7/20/2010 2/5/2011 8/24/2011 3/11/2012 9/27/2012 4/15/2013 Interconnection Date

21 Clean Energy & Climate Plan 25% by 2020 Reduction Sources Non-Energy Transportation Buildings 22 Electricity

22 Massachusetts Clean Energy Success Story #1 state for energy efficiency (ACEEE): 2011/12 #2 in clean energy technology #6 in solar installations, Green Communities 131 Stretch Code Communities 201 electric vehicle public and private charging stations 77+ Level One and 393 Level Two charge points Nearly $70 million in clean energy ARRA funding leveraged 23

23 Clean Energy Industry Provides Jobs Industry Report: Massachusetts Clean Energy Sector is Large, Diverse, and Growing 24

24 Thank you! Mark Sylvia