Residential Energy Efficiency Programs ACI Conference 2012
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This document summarizes how energy efficiency programs in New England have helped reduce energy demand over time. It discusses how conservation services group (CSG) was founded in 1984 to deliver energy efficiency projects. It then shows graphs depicting how energy demand in New England has bent downwards since the 1980s due to the introduction of energy efficiency programs and policies. The document outlines some of the key energy efficiency policies and milestones from 2000-2010 that have driven greater adoption of energy efficiency. It discusses challenges faced in scaling up energy efficiency but expresses optimism about future potential if contractors commit to delivering high volumes of quality work. The summary emphasizes how policy, program delivery, building science, and contractor involvement all contributed to reducing energy use.
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Residential Energy Efficiency Programs ACI Conference 2012
- 1. Bending The Curve How Energy Efficiency is Powering New England ACI New England Home Performance 10-16-12 Stephen Cowell Conservation Services Group
- 2. Conservation Services Group (CSG) • Founded in 1984 • Nonprofit corporation • ~800 staff responsible for 7,000+ field jobs nationwide • Over 3 million homes and facilities served • Manage the delivery of over $250 million in residential energy efficiency and renewable energy investments and projects annually
- 4. New England Weather Normal Net Energy for Load, 1981-2010, 140000 Excluding 1991-1993 and 2008-2009 Recession Years 130000 561 GWh Net Energy for Load, GWh 120000 2344 GWh 110000 Restructuring with 3481 GWh DSM DSM and 100000 Introduced Renewables 90000 80000 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Synapse Energy Economics
- 5. Why We Are Here Today • We’ve delivered value to homeowners and ratepayers • We’re upping the quality of our work . . . to create real, measurable savings and a strong, broad energy economy
- 6. Topics by Slice 1. How we got here 2. Why policy is important 3. Where we’re going 4. How you fit in
- 7. 1. How We Got Here
- 8. Power to Spare – Pub. 1987
- 9. From Power To Spare
- 10. How We Got Here Policy Building Service Science Delivery
- 11. How We Got Here • New England legacy of leadership – 25 years+
- 12. 2005: Opportunity — followed by . . .
- 13. Regional Greenhouse Gas Initiative First mandatory Cap and Trade in U.S., signed 2006 • MA, RI, & MD joined 7 original states • Minimum of 25% of allowances auctioned for Public Benefit (EE) • NY, VT, & MA committed to 100% auction
- 14. Forward Capacity Market: New England Settlement Agreement • Agree to incorporate Demand Resources into market -2007 • Forward Capacity Auction • Demand resources fully participate, with special treatment to be negotiated • Measurement and Verification required • Approved by FERC
- 15. Massachusetts “Green Communities” Signed into law July 2, 2008 by Governor Patrick Comprehensive energy efficiency and renewable energy policy
- 16. Comprehensive Residential Retrofit: results from just one sector Completed Projects per Program per Year as a % of Total State Households 0.50% 0.45% 0.40% 0.35% 0.30% MA 0.25% NY (NYSERDA + LIPA) 0.20% NJ OR 0.15% 0.10% 0.05% 0.00%
- 17. Game Changing Policy Breakthroughs 2000-2010 • VT regulation 2000: “Efficiency Utility” created • RI legislation 2006: Comprehensive Energy Efficiency • NY PSC order 2006: Statewide System Benefits Charge • CT legislation 2007: All Cost Effective Energy Efficiency • MA legislation 2008: All Cost Effective Energy Efficiency • NH legislation 2008: E.E. & Sustainable Energy Board • ME legislation 2009: Efficiency Maine Trust
- 18. Baseline forecast – no intervention EE only through third auction Forecast with various EE options Source: ISO-New England 18
- 19. How We Got Here: Challenges • Consumer uncertainty • Competing fuels • Unpredictable prices • Weak economy • Insulation is invisible • Insulation isn’t sexy • Maintain public $ • “One bad apple . . .”
- 21. Process, process, and more process “It can put you to sleep, but it can also put you out of business.” —Home performance contractor / Efficiency First member
- 23. Where We’re Going • Eyes on the prize – Work as a team – Everyone has a role
- 24. Where We’re Going Planning • multi-year process • Efficiency First, BPI, NECEC, NEEC • Federal energy policy
- 25. 4. How You Fit In
- 27. How You Fit In • Deliver quality • Make a commitment to quantity • Build an industry
- 28. How You Fit In Get involved.
- 29. How You Fit In Learn at ACI-NE.
- 30. Believe! In the power of EE and people working together
- 31. Thank you! Steve Cowell stephen.cowell@csgrp.com 508.836.9500 www.csgrp.com
Notes de l'éditeur
- The “we’”in this presentation is not CSG, but rather the broad coalition of utilities, environmental groups and businesses that have worked together to create the residential energy efficiency industry.
- When we say bending the curve, what exactly are we referring to? Reducing the growth in “electric load” over time. A challenge because population grows, new and more electronic devices and appliances are invented/deployed.
- So here is the curve. And this a big deal. Our industry played a key role in making this happen.
- We need to deliver value not only to homeowners we serve directly, but also to ratepayers and to policymakers who support our industry: Quality professional work that creates real measureablesavings. That is why your presence at the ACI conference today is so important.Understand industry dynamicsImprove knowledge & skillsNetwork with peersSpread the word!
- Focused on creating support for using ratepayer and other public funds to support energy efficiency programs; Power to Spare: from theory to realityNew England Leadership in residential energy efficiency Dealing with challengesConvincing system operator ISO-NE that energy efficiency is bending the curve
- Many credit this report with spearheading energy efficiency efforts in New EnglandNew England Energy Policy CouncilCollaborative effort among several organizations with input and inspiration from EE expertsDoug Foy, Armond Cohen, CLF; Joseph M. Chaisson, technical analysis; Timothy Stout, Energy Scientist, CLFLawrence Berkeley Laboratory, ACEEE; Rocky Mt. Institute, Energy Systems Research Group, Fred Davis Corp., Mass. Fair Share (Steve Cowell), Vt. Natural Resources Council (Clare Moorhead), Mass. Audubon Society (Steven Nadel), NRDC (Ralph Cavanagh), Natural Resources Council of Maine, Mass. PIRG (Alan Nogee), and Rachel Greenberg
- From Power to Spare
- Blair HamiltonElliot RichardsonLaura McNaughtonRick KargRich SteevesVin GrazianoLaura Dubester
- 2005: ISO NE is grappling with what to do about capacity payments to power plants. The new alternative resource sector which includes both energy efficiency and renewable energy companies held the swing vote. FERC orders that “Demand Resource” get comparable treatment. Finding a settlement agreement required the energy efficiency sector (with firms like CSG and EFI) to vote for the agreement.Forward Capacity Market = exemplary, just one piece of overall situation2007-2010Energy efficiency industry rolled up sleeves: how to fit energy efficiency into ISO-NE’s world?NEEP EM&V forum createdKey performance hours defined to meet ISO-NE needs Utilities and private sector stepped up12 months of negotiationsNEEP EM&V - to solve the multi state problem Utilities & private sector: Put financial assurance on the table Made commitments for energy efficiency that will be delivered more than three years in advance Agreed to more rigorous EM&VAgreed to additional reporting 2010-2012Energy efficiency delivers on its commitments in first three Forward Capacity Market (FCM) auctions. ISO-NE responds to a request from NE regulators to include the impact of energy efficiency bid into the FCM auctions in their 10 year load forecast. (The forecast that is used to determine what transmission and supply projects are needed to maintain reliability.)
- Auction: Three years forwardExisting capacity gets one year commitmentNew capacity to select 1 to 5 year commitmentOpportunities to de-list or retire by bids
- Key FeaturesChange rate based electric efficiency funding from a maximum 2.5 mils per kWh to a minimumEstablish the standard of “procure all cost effective Demand Resources”Include Efficiency, Demand Response, CHP and Load Management in Demand Resource definitionDirect the program administrators to conduct the procurement processIncludes Gas Efficiency as well as electricRequirement to serve at least 10-30% of funds for low income customersUse all FCM, RGGI and NOx funds for efficiencySupport for “green communities”
- Vermont - Act 61 of 2005: An Act Relative to Renewable Energy, Efficiency, Transmission, and Vermont’s Energy FutureRhode Island – Comprehensive Energy Conservation, Efficiency, and Affordability Act of 2006New York – Public Service Commission order regarding System Benefits Charge III 2006 - 2011 Connecticut – Public Act 07-242Massachusetts – Green Communities Act of 2008New Hampshire – Public Health legislation: Multiple Pollution Reduction Program creates Energy Efficiency and Sustainable Energy BoardMaine – Maine Energy Future Act of 2009 creates Efficiency Maine Trust
- Re: public money, budget / consistency of budgetsQuality control is important!
- A balancing act.Process, process, and more processArduous; change is slowGetting value to customersPlanning cycles, state by stateCommitments to spend public money take time & process lots of process Why changes are hard to make There have been customers who didn’t get value – and programs are designed to mitigate that happening when public dollars are used Planning cycles vary in different states You can’t change horses midstream and measure outcomes
- Sometimes, it’s usefulto pick up the phone and let people know why they should support your industry If you hear from ACI, Efficiency First or National Save Energy Coalition that it is a good time to make your voice heard by making a call or signing on to a letter: we encourage you to DO IT.
- Our industry is going through a really major cycle– first ramping up to accommodate ARRA, now adjusting to post ARRA funding levels. This isn’t going to be easy. How do we maintain and increase public funding of our industry?
- What do you bring to the table? Your commitment to quality is demonstrated by your attendance here. ACI’s workshops will provide answers and raise questions. Keep asking, keep learning, recommit to providing excellencedelivered in a professional manner that brings the homeowner and the ratepayers the best value for their energy investment dollar. Everyone has a part to play.
- Energy efficiency can be a hard sell, so we need to be smart Trained, certified workforceStrong, effective trade associationsOne bad job – can forfeit ten potential prospects
- Support policiesFight for new/betterParticipate in processBe responsible