ACEEEs State Clean Energy Resource Project The Role of Energy - - PowerPoint PPT Presentation

ACEEE’s State Clean Energy Resource Project

The Role of Energy Efficiency and Demand Response in Meeting the State’s Electricity Needs

• R. Neal Elliott, Ph.D., P.E.

Associate Director for Research American Council for an Energy-Efficient Economy

The American Council for an Energy- Efficient Economy (ACEEE)

Nonprofit 501(c)(3) dedicated to advancing energy efficiency through research and dissemination. 35 staff in Washington, D.C., Illinois, Delaware, Michigan, and Wisconsin Focus on End-Use Efficiency in Industry, Buildings, Utilities, Transportation, & National Policy Offer Conferences and Publications Funding:

• Foundation and Federal grants (50%)
• Specific Contract work (20%)
• Conferences and Publications (25%)

Project Overview

ACEEE’s State Project funded by Energy Foundation, U.S. EPA, & U.S. DOE to:

– Prepare annual State Policy Scorecard – Prepare 4 state energy efficiency assessments per year – Assist states with ongoing energy policy implementation – Co-Funded by in-state foundations

Overall Project Goals:

– Build foundation for public education on energy efficiency – Provide key facts with respect to EE opportunities – Inform policymakers on best policy practices

Project Approach

State-specific data collection Stakeholder outreach:

• State Government
• Utilities and Co-ops
• Industrial consumers
• Public interest groups
• Low-income advocates

Analysis and report preparation Report release Policy Implementation Assistance

Which States?

Source: Eldridge 2007

2006 ACEEE State EE Scorecard

Why Energy Efficiency? The 1st Fuel

Source: Lazard 2008 except (a) ACEEE 2007

Average Cost of New Electric Resources

• 2

4 6 8 10 12 Energy Efficiency (a) Wind Biomass

• Nat. Gas

Combined Cycle Pulverized Coal Thin Film PV Nuclear Solar Thermal Coal IGCC Levelized Cost (cents/kWh)

Levels of Energy Efficiency Potential We Analyzed

Policy Achievable Resource Cost-Effective Resource

For example: Energy Efficiency Resource Potential in 2025 for VA without considering Carbon costs

• Cost Effective Resource =

~44,000 GWh (31%)

• Policy Analysis =

~28,00 GWh (19%)

Virginia Cost-Effective Energy Efficiency Resource Potential

(44,000 GWh or 31% of Projected Electricity Use in 2025)

Industrial 12% CHP 13% Residential 32% Commercial 42%

Suite of 11 Policies Analyzed for VA

Policies include:

• EERS
• Mfg Initiative
• CHP
• Codes & Standards
• Gov. Facilities
• Public Education
• RD&D
• Demand Response

Energy Efficiency Resource Standard (EERS) 51% Combined Heat and Power 5% Manufacturering Initiative 10% State Government 2% Local Government 4% Building Energy Codes 10% Appliance Efficiency Standards 19%

Impact of Efficiency Policies on Electricity Needs in Virginia

• 20,000

40,000 60,000 80,000 100,000 120,000 140,000 2008 2013 2018 2023 Electricity Consumption (GWh) Appliance Standards Building Codes State and Local Government Manufacturing Initiative CHP Supporting Policies Energy Savings Target Adjusted Forecast 19%

Impact of Efficiency and Demand Response on Peak Demand

2025 peak reduction = ~8400 MW (26%)

• 5,000

10,000 15,000 20,000 25,000 30,000 35,000 2 7 2 8 2 9 2 1 2 1 1 2 1 2 2 1 3 2 1 4 2 1 5 2 1 6 2 1 7 2 1 8 2 1 9 2 2 2 2 1 2 2 2 2 2 3 2 2 4 2 2 5 Peak Demand (MW)

7%

Adjusted Peak Load Demand Response Energy Efficiency

19%

Impacts of State Clean Energy Studies in Other States

• Basis for Gov. Crist’s energy plan in Florida
• Supported expanded EEIP and CHP policies

in TX

• Key contributor to passing of EmPower

Maryland legislation

• Gov. Kaine intends to us a foundation for Year
• f Energy

Program Models – Opportunities and Challenges

Approaches:

• NGO/QGI Administered– e.g., Efficiency Vermont &

Energy Trust of Oregon

• Government Administered – NYSERDA
• Utility Administered
• Outsourced delivery – CPUC & Texas

Challenges:

• Project “ramp” rate
• Workforce/infrastructure shortages

Implementation Issues

• Role of Codes & Standards – national and state
• Interaction between EERS and RPS
• New Construction vs. Built Environment
• Need to treat Manufacturing & Ag/Rural Differently from

Commercial & Residential

• Treatment of CHP with respect to avoided

fuel/emissions

• Role of federal activities:
• Tax credits
• Federal Energy Legislation
• National Climate Change Legislation
• Expanded EE program budgets

Role of Energy Efficiency in Climate Change

• Quickest, least cost carbon reduction strategy

– can meet ~½ in the nearterm

• Enables other strategies by providing time and

containing costs

• Estimation of avoided electric emissions

difficult in PJM context – DE net electric importer

• Interaction with Federal Legislation

Conclusions

• There are plenty of energy efficiency
• Investing in efficiency will:
• Reduce consumer electric bills
• Insure stable & reliable electric system
• Promote new jobs & economic growth
• Make important contributions to addressing global

warming

• Many of the opportunities require state-level

efforts – one size does not fit all

Contact Information

• R. Neal Elliott, Ph.D., P.E.

Associate Director for Research ACEEE 529 14th Street, NW, Suite 600 Washington, D.C. 20045 202-507-4009 rnelliott@aceee.org For more information visit: www.aceee.org