A Market-based Approach to Energy Efficiency in Hospitality. Mindy Guilfoyle, PE Hospitality Market Manager,
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1 A Market-based Approach to Energy Efficiency in Hospitality Mindy Guilfoyle, PE Hospitality Market Manager,
2 What is Focus on Energy? Wisconsin s statewide energy efficiency and renewable energy program Legislature created the program in 1999; expanded in 2005 Helps implement projects that would not occur otherwise Customer eligibility based on their electric and/or natural gas utilities
3 Background of Initiative Market-based approached launched 2004 Use a key account management approach Other Programs Residential Renewable Simplified Focus on Energy Structure Other Sectors Agriculture Industrial Schools & Government State-level oversight Business Program Other Market Initiatives Grocery Healthcare Large Commercial Commercial Sector Hospitality Market Initiative
4 Market Definition Includes lodging and restaurants Wisconsin has: 15,000 food service operations 1779 lodging facilities (80,825 rooms) Complex operation/decision-making structures Continuously changing
5 Program Design Approach Team responsibities Observe market Analyze opportunities Decide on direction Coordinate with Marketing Customer interaction Design elements Technology initiatives Training opportunities Strategic relationships
6 Key Elements Guestroom energy management controls (GREM) Direct installation Commercial food service Variable ventilation exhaust hood control Back of the House lighting Energy management training Interactive online tool Working with affiliated organizations
7 Contributes largest savings to hospitality (outside of lighting) Keys to success Strategic relationships with market providers Persistance of its lead team member Main barrier Guestroom Energy Management Control Higher incentives in other states and other distractions
8 2,500,000 2,000,000 kwh 1,500,000 1,000, ,000 0 FY05 FY06 FY07 FY08 Program Year Historical GREM Savings
9 Direct Installation Efforts Primarily water-saving devices Excellent method for quick savings to meet goals Excellent method for outreach Currently being used to target smaller hotel market with array of technologies
10 Commercial Food Service Barriers Awareness & equipment cost Keys to success Promote across all markets and sectors Coordination on national level Working with market providers Expansion of portfolio
11 kwh 400, , , ,000 25,000 20,000 15,000 10,000 5,000 Therms 0 FY06 (6 mos) FY07 FY08 0 Program Year kwh Therm Historical Food Service Savings
12 Variable Ventilation Exhaust Hood Control Custom incentive with HVAC and motor savings Barriers Market awareness & uneasiness about code Cost for small business restaurant Market provider support in small market More success outside of restaurants
13 Intent Back of House Lighting To target conversion of long running T12 lighting Barriers Market provider understanding of term Incentive didn t compete Low understanding/acceptance of HPT8 New option: T12 Bounty
14 Energy Management Training Smart Strategies for Hotels Provides structure for energy management planning Participants liked information shared, tools, idea exchange, practical perspective Barrier - generating required attendance
15 Intent Interactive Online Tool The Smart Strategies Hotel Tour Cost-effectively help more customers Has recommendations and personalized savings estimate Limiting factor to success - awareness
16 Working with Affiliated Organizations Recognize importance of alignment Barriers with these entities Viewed as a vendor, not valued resource Gaining success with Travel Green WI Mutual benefit of partnership Aligning ourselves with them at upcoming lodging trade show
17 Customer Involvement Wisco Hotel Group Hotel management company 9 (plus two new) mid to upscale properties Focus guided installations GREM, CFLs, pool exhaust heat recovery, destratification in waterpark Aligns with Focus on Energy for all purchasing decisions now
18 Customer Involvement The Wilderness Resorts Expansive waterpark resort Focus involvement GREM, CFLs, high bay fluorescent & destratification in waterparks, VFDs, feasibility study for preheat of pool water Several staff attended Smart Strategies Takes advantage of the wide array of Focus offerings for energy management planning and implementation
19 Customer Involvement Dos Gringos Sole proprietor restaurant Focus guided installation Variable ventilation control of kitchen exhaust hood Champion for technology became a regional sales rep for the technology
20 Overall Initiative Impact Ever-increasing overall savings in market Market-based initiative has increased: kw FY04 (6 mos) Annual Electric Savings FY05 FY06 FY07 FY08 Program Year kw Million kwh Million kwh Number of engaged customers Achieved savings per customer Thousand Therms Annual Natural Gas Savings FY04 (6 mos) FY05 FY06 FY07 FY08 Program Year
21 Keys to success Summary Interdisciplinary team approach Understanding the market National partnerships Strategic relationships with market providers Evolving, enhanced offerings
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