National Grid s Energy Efficiency Programs

Transcription

1 National Grid s Energy Efficiency Programs Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. John Rathbun Technical Sales and Engineering Support National Governors Association Philadelphia, PA March 04, 2013

2 National Grid Overview Customers US 8 Million UK 11 Million Pipes & Wires US 125,000 miles UK 215,000 miles 2 nd Largest US Utility Largest UK Utility UK Electric UK Gas Service Areas: Electric Gas Both Electric and Gas National Grid Gas and LIPA Electric System 4,000 MW Electricity Generation 2

3 National Grid: Second-largest Utility in the U.S. The largest distributor of Natural Gas in the northeast U.S. Approximately 3.4 million customers in New York, Massachusetts, and Rhode Island Delivers electricity to approximately 3.3 million customers Massachusetts, New York and Rhode Island Manages the electricity network on Long Island under an agreement with the Long Island Power Authority Serving 1.1 million LIPA customers 2011 New US Operating Model Jurisdictional areas created state by state to be the local face of National Grid Stronger connected community and customer relationships at a local level 3

4 Energy Efficiency Programs National Grid places a strong emphasis on helping our customers manage their energy usage and take advantage of new sustainable energy solutions National Grid s Energy Efficiency Programs and Incentives will: Identify energy savings opportunities and provide technical services for the installation of premium energy efficient equipment to replace aging, inefficient equipment Lower project Costs by up to 50% for installing energy saving equipment 4

5 Program Development Result of regulatory process - individual state s social, regulatory and policy decisions for both residential and commercial and industrial customers Costs are covered through regulatory filings Commission orders drive final program design, incentive and funding levels Regulatory approval is required for all programs 5

6 Customer Incentive Options PRESCRIPTIVE Fixed incentives paid for installation of specific, predetermined energy efficiency measures and equipment. Eligible equipment must have specified energy efficiency ratings Examples: Lighting, Lighting Controls, Air Compressors, EMS, Heating and Insulation CUSTOM Includes measures not covered under the prescriptive incentives. Requires a technical analysis of proposed energy measures and associated energy savings to determine incentive amount. Incentives are generally the lesser of: Up to 50% of the installed cost which includes labor and equipment A buy-down of equipment costs equal to a six months or a one-year payback 7

7 C&I Programs Prescriptive Programs - Electric UNY New Const Retrofit Lighting n/a Y Compressed Air n/a Y Variable Speed Drives n/a n/a Energy Mgmt Systems* n/a Y DNY Gas Only Territory MA RI New Const Retrofit Lighting Y Y Compressed Air Y Y Variable Speed Drives Y Y Energy Mgmt Systems* Y Y HVAC Y n/a Chillers Y n/a New Const Retrofit Lighting Y Y Compressed Air Y n/a Variable Speed Drives Y Y Energy Mgmt Systems* Y Y HVAC Y n/a Chillers Y n/a * Includes Vending Misers 8

8 C&I Programs Prescriptive Measures - Gas UNY New Const Retrofit Heating Equipment Y Y Water Heating Y Y Prescriptive Controls n/a Y Kitchen Equipment Y Y Steam Trap Survey n/a Y DNY* New Const Retrofit Heating Equipment Y Y Water Heating Y Y Prescriptive Controls Y Y Kitchen Equipment Y Y Steam Trap Survey Y Y MA RI New Const Retrofit New Const Retrofit Heating Equipment Y Y Water Heating Y Y Prescriptive Controls n/a Y Kitchen Equipment Y Y Heating Equipment Y Y Water Heating Y Y Prescriptive Controls n/a Y Kitchen Equipment Y Y * Includes Multifamily Non-Prescriptive Programs: offered in all the above areas Energy Efficiency Engineering Study Custom Projects 9

9 Residential Programs UNY Gas Electric Products & Recycling Y Y OPower Y Y Multifamily Y Y Enhanced Home Sealing Suspended Y High-Efficiency Heating Y n/a DNY* Products Enhanced Home Sealing High-Efficiency Heating Gas Y Suspended Y MA Gas Electric Products & Recycling Y Y OPower Y Y Multifamily Y Y Deep Energy Retrofit Y Y High-Efficiency Heating Y Y Cool SMART n/a Y Weatherization Y n/a Home Energy Assessment Y Y New Const. & Major Ren. Y Y Heat Loan Program n/a Y Work Force Development n/a Y Education Program n/a Y Energy Star Lighting n/a Y RI Gas Electric Products & Recycling n/a Y Energy Star Lighting n/a Y Multifamily Y Y Cool SMART n/a Y Deep Energy Retrofit n/a Y Energy Star Homes n/a Y High-Efficiency Heating Y n/a Appliance Management Y n/a * NYC and Long Island 10

10 What is Shareholder Incentive? Financial rewards for National Grid Money that is collected from ratepayers (through SBC and Energy Efficiency) National Grid is rewarded financially If we hit savings targets and stay with in budget that has been agreed on with the regulators 11

11 Shareholder Incentive - Purpose Motivate the successful delivery of energy efficiency programs to achieve savings goals Align business interests with public policy interests Partially compensated company for lost sales revenue With revenue decoupling, this is less of a factor Focus is on components that policy-makers think are needed to achieve state policy Maximize savings Cost-effectiveness Other elements to drive program design to serve selected target populations, innovate, and/or be more comprehensive 12

12 National Grid Energy Efficiency CUSTOMER IMPACT MASS Save Customers Pay System Benefit Charge (SBC) or Energy Efficiency Charge NYSERDA NATIONAL GRID Energy Efficiency Programs $$ Spend $$ on EE Programs Develop Program/ Portfolio/Targets SHAREHOLDERS Customer Completes EE Project Achieve Incentive YES Customer Gets Incentive $$ SPEND Energy saved by completing project is recorded towards goal Energy Savings Target Savings for Shareholder Incentive Make Goal NO Possible penalty 13

13 CHP Developments Electric Efficiency Program in MA & RI MA Alternative Energy Portfolio Rate decoupling Standby Tariff MA RI NY Technical Assistance Marketplace leadership US Combined Heat and Power Association EPA CHP Partnership Northeast Clean Heat and Power Initiative Northeast Clean Energy Application Center Micro CHP and fuel cells field demonstrations 14

14 MA & RI CHP Incentive Electric Energy Efficiency Thermal output ~ kw $750/kw Must pass Benefit cost ratio test 5 Mw CHP 2011 Largest EE project Technical Assessments Standby Tariffs Interconnect Process 15

15 Combined Heat Power - CHP 270 Mw installed on site customer owned generation NE 133 Mw 54 sites UNY 48 Mw 10 sites DNY 89 Mw 128 sites Over 72% below 300 kw Significant Projects NE 5.9 Mw at food manufacturer 5 Mw at Medical School 5.1 Mw at Pharmaceutical Upstate NY 29 Mw steam turbine at Healthcare facility 8 Mw ICE engines at Community College 6 Mw Turbine at Casino/resort Downstate NY 2.4 Mw at Hospital 2.4 Mw at Shopping Mall 2.4 Mw at College 16 16