C&I TRANSITION PLAN: BEYOND LIGHTING May 20, 2020 INTRO/AGENDA - - PowerPoint PPT Presentation

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C&I TRANSITION PLAN: BEYOND LIGHTING May 20, 2020 INTRO/AGENDA - - PowerPoint PPT Presentation

C&I TRANSITION PLAN: BEYOND LIGHTING May 20, 2020 INTRO/AGENDA C&I savings vs. C&I usage Lighting dominant Need to pivot to other end-use savings Need Fundamental Market Transformation Commodity-style


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C&I TRANSITION PLAN: BEYOND LIGHTING

►May 20, 2020

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SLIDE 2

www.ma-eeac.org | 2 C&I Update – May 2020 www.ma-eeac.org

INTRO/AGENDA

►C&I savings vs. C&I usage − Lighting dominant − Need to pivot to other end-use savings ►Need Fundamental Market Transformation − Commodity-style approach will only get us so far − Short, Mid, and Long-term plans for how to transform the market ►Workforce is a critical enabling investment for deeper

savings

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Adam Jacobs - EEAC Consulting Team

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www.ma-eeac.org | 3 C&I Update – May 2020 www.ma-eeac.org

C&I USAGE VS C&I SAVINGS

►Lighting was 17% of New England commercial electric

consumption in 2012 (even less for industrial), and still makes up 46% of planned net lifetime savings

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17%

26% 2% 20% 35%

CBECs 2012 - New England Electric Use

Lighting HVAC Food Service HW Refrigeration Other

46%

8% 0% 0% 2% 44%

MA 2019-2021 Plan - Electric Savings

Lighting HVAC Food Service HW Refrigeration Other

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SLIDE 4

www.ma-eeac.org | 4 C&I Update – May 2020 www.ma-eeac.org

NEED TO GO DEEPER

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17% lighting 83% everything else

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SLIDE 5

www.ma-eeac.org | 5 C&I Update – May 2020 www.ma-eeac.org

GOING DEEPER IS DIFFICULT – KEY PERFORMANCE INDICATORS

►KPI #4 – less than 5% of C&I lighting projects had

controls in 2019

− Upstream is 91% of project volume and delivers 2% of projects with controls − Upstream is easy for participants but hard to push customers to better solutions ►KPI #5 – only achieved 75% of planned custom HVAC

electric and 57% of custom gas savings in 2019

− HVAC savings have been declining − goal was for rebound this plan cycle ►KPI #6 – over 88% of small business electric savings

was lighting in 2019

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SLIDE 6

www.ma-eeac.org | 6 C&I Update – May 2020 www.ma-eeac.org | 6

MARKET TRANSFORMATION – EASY THINGS ALONE WILL NOT MEET GOALS

Small biz (upstream)

/Retro-commissioning

More Savings Less Savings

Source: PA October 2019 EEAC Presentation

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SLIDE 7

www.ma-eeac.org | 7 C&I Update – May 2020 www.ma-eeac.org

MARKET TRANSFORMATION – THREE DIFFERENT TIME HORIZONS

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Short-term (immediate) Mid-term (remainder of this plan) Long-term (next 3YP and beyond)

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SLIDE 8

www.ma-eeac.org | 8 C&I Update – May 2020 www.ma-eeac.org

SHORT-TERM… NOT A BAD TIME TO TAKE A STEP BACK

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2020… 2021… 2022…

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SLIDE 9

www.ma-eeac.org | 9 C&I Update – May 2020 www.ma-eeac.org

SHORT-TERM: PRESERVE OPPORTUNITY FOR BETTER LIGHTING SOLUTIONS

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forecast

2020 Council Priority: increasing the percentage of lighting projects that include controls towards a goal of 50% penetration

actual

Source: DNV GL Massachusetts Lighting Market Model

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www.ma-eeac.org | 10 C&I Update – May 2020 www.ma-eeac.org

SHORT-TERM: FOCUS ON WORKFORCE

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►Several PA-sponsored trainings for C&I vendors in

response to COVID:

►More on this later…

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SLIDE 11

www.ma-eeac.org | 11 C&I Update – May 2020 www.ma-eeac.org

MID-TERM: DOUBLE DOWN ON GOOD THINGS WE’RE ALREADY DOING

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►C&I programs already experimenting with program

enhancements

− New construction redesign w/ EUI targets − Savings from O&M/behavior measures − Active Demand Reductions ►Promoting alternative fuel CHP like biogas

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SLIDE 12

www.ma-eeac.org | 12 C&I Update – May 2020 www.ma-eeac.org

MID-TERM: THINGS WE KNOW ARE IMPORTANT BUT HAVEN’T FIGURED OUT

►Energy Management Systems (EMS) and controls critical − Significant savings from controls, need clarity on baselines

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SLIDE 13

www.ma-eeac.org | 13 C&I Update – May 2020 www.ma-eeac.org

MID-TERM: THINGS WE KNOW ARE IMPORTANT BUT HAVEN’T FIGURED OUT

►Energy Optimization and Fuel switching for C&I

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VRF/ heat pump Dedicated

  • utdoor air

system w/ heat recovery

Source: NEEA Very High Efficiency Dedicated Outside Air Systems

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SLIDE 14

www.ma-eeac.org | 14 C&I Update – May 2020 www.ma-eeac.org

MID-TERM: THINGS WE KNOW ARE IMPORTANT BUT HAVEN’T FIGURED OUT

►Demand Response: cross-promoting is a good start ►To grow ADR: need coordinated and/or integrated delivery

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Source: ACEEE Integrated Energy Efficiency and Demand Response Programs

1 2 3 4 ACEEE Levels of EE/DR Integration

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SLIDE 15

www.ma-eeac.org | 15 C&I Update – May 2020 www.ma-eeac.org

MID-TERM: THINGS WE KNOW ARE IMPORTANT BUT HAVEN’T FIGURED OUT

►Determining the role of traditional CHP in climate goals − Tipping point for emissions benefits; Renewable fuel or bust?

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Source: Greater Lawrence Sewer District CHP Presentation at 2020 RI Annual CHP Meeting

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SLIDE 16

www.ma-eeac.org | 16 C&I Update – May 2020 www.ma-eeac.org

LONG-TERM: DEEP ENERGY RETROFITS

►Need to go deeper on savings; need to find ways to make

this appealing to more customers

− Rocky Mountain Institute defines Deep Energy Retrofits as 50% savings; heavy emphasis on building envelope and electrification − Carbon Free Boston says ZNE construction needed… also says 85% of 2050 build stock exists today and need deep energy retrofits ►How do we close that gap? − Move more customers away from simple measures towards comprehensive retrofits

  • Small Business Turnkey participant customers save more than twice as

much as Upstream participants

− Deep Energy Retrofits will help make buildings Zero Net Energy ready

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www.ma-eeac.org | 17 C&I Update – May 2020 www.ma-eeac.org

LONG TERM: FINANCE OPTIONS TO PAY FOR COMPREHENSIVENESS

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►Financial instruments abound (on-bill finance, C PACE,

Energy savings performance contracts, etc.)

►Key is to bundle measures with short and long paybacks

to get a reasonable average payback for customers

  • $100,000
  • $80,000
  • $60,000
  • $40,000
  • $20,000

$0 $20,000 $40,000 $60,000 $80,000 Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Annual Cash Flow Cummulative Discounted Cash Flow

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www.ma-eeac.org | 18 C&I Update – May 2020 www.ma-eeac.org

LONG-TERM: GRID INTERACTIVE EFFICIENT BUILDINGS

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Source: US DOE Grid Interactive Efficient Buildings (April 2019)

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SLIDE 19

www.ma-eeac.org | 19 C&I Update – May 2020 www.ma-eeac.org

LONG-TERM: INVESTING IN OUR FUTURE WORKFORCE IS CRITICAL

►79% of employers

reported that employees spend some of their time

  • n C&I buildings

►Increasing demand for

interdisciplinary knowledge

− “This gap is preventing many buildings from operating at maximum efficiency”

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►Need to spend much more on workforce development − Mass Save spent $1.5 million between 2013-2018 (0.05% of budget) − PG&E spent $10.7 million in 2018 alone (2.8% of budget)

Source: Mass Save Workforce Development Needs Assessment

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SLIDE 20

www.ma-eeac.org | 20 C&I Update – May 2020 www.ma-eeac.org

SUMMARY

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►Short-term: Use this time productively − Pivot away from lighting savings − Train vendors and customers on operational best practices to lay foundation for market transformation ►Mid-term: Shifts from equipment to operational savings

and EO

− Double down on the good things like ESPO, SEM, NC redesign − Answer the hard questions like Energy Optimization and integrating EE/ADR ►Long-term: Nobody said it would be easy − Need to be more comprehensive and deliver deeper savings − Use financing and bundle measures w/ short and long paybacks − Workforce is critical to success

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QUESTIONS