Unlocking Innovation in Information-Enabled Energy Efficiency Harvey - - PDF document

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Unlocking Innovation in Information-Enabled Energy Efficiency Harvey Michaels, Lecturer/Director of MIT Energy Efficiency Strategy Project 617-253-2084 hgm@mit.edu Presented to: AESP- NEEC annual meeting Westborough, MA Oct 2, 2012 MIT

SLIDE 1

1 Unlocking Innovation in Information-Enabled Energy Efficiency

Harvey Michaels, Lecturer/Director of

MIT Energy Efficiency Strategy Project 617-253-2084 hgm@mit.edu Presented to: AESP- NEEC annual meeting Westborough, MA Oct 2, 2012

MIT Energy Efficiency Strategy Project: Designing an Ecosystem for Sustained Innovation in Efficiency

US Buildings consume 71% of all electricity, 55% of all natural gas Target: 30% efficiency by 2030 with 4 Deployment options:

EE by utilities ($6B), carbon, DR value: carrots
Codes and Standards: sticks
Data and intelligence-driven : information
New Business/Community Models: innovation

Approach: Lower consumer discount rates change everything.

45,000 50,000 55,000 60,000 65,000 70,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

MA Net Energy for Load (GWh)

MA EE Electric Savings: What is Possible?

ISO Base Forecast (No EE) MA EE Programs (recent) MA EE Programs (2%) MA EE Programs (3%) 2% savings per year Recent years: about 0.8%savings per year Growth Rate 1.0% 0.2%

1.0%
2.0%

3% savings per year Acquiring all available cost-effective electric energy efficiency as set forth in the Green Communities Act (GCA) would likely require an annual energy savings level of about 2.5% per year,

r about three times the energy savings levels in past years.

SLIDE 2

2 Energy 2.0: Integrated Energy Innovation

Ecosystem and Policy Framework

Connecting Systems:

Disruptive Grid Innovations:

–

Intermittent Renewables, Electric Vehicles, CHP, Microgrid, Storage

Utility/wholesale:

–

AMI, dynamic pricing, demand response, efficiency-EERS, forward capacity, carbon

–

“Smart buildings”, Home Networks

Markets/people:

–

Data access, impactful diagnostics/format/functionality, 2.0 community/city systems.

What does the Smart Grid have to do with Energy Efficiency?

Potentially, three strategies:

Utility control of peak building energy use,
Time-differentiated dynamic electricity pricing, and
More frequent and granular energy consumption data to

support operational improvements and behavior change.

Illustration of Residential CPP Rate

0.0 0.2 0.4 0.6 0.8 1.0 1.2 2 4 6 8 10 12 14 16 18 20 22 24 Hour of Day Rate ($/kWh) Existing All-In CPP on Critical Days CPP on Non-Critical Days

SLIDE 3

3 Consumer-responsive Architecture =

Providing consumers with energy diagnostics, feedback, control

refers to systems for optimizing consumers’ end-use needs (especially air conditioning, heat, hot water)

based on weather, schedules,

and time differentiated costs. Time-differentiated rates are more fair, and some would argue inevitable. Customer Responsive Systems work 24/7,

providing efficiency

as well as peak demand response.

2005 CA rate/technology impacts continue to be validated by other studies.

SLIDE 4

4 Granular Energy Data:

energy diagnostics, feedback, control

Behavior impacts of smart grid-based information options may be as high as 30%:

Daily
End-use
Carbon Footprint?
Collective Action?
Fault-detection
Thematic Control – make me green
Control Precision
Adaptive Control Strategies

Annual Savings from Feedback in Residential Programs (Ehrhardt-Martinez, Donnelly et al 2010)

SLIDE 5

5 Proposed Approach to Unlocking Efficiency Innovation: Transparency and Democratization

Perhaps “Green Button” is less about energy data, and more about: Access to Efficiency, DR, and carbon mitigation measurement and rewards! Transparency: Agreed-to methodology for interpreting energy with

ther publicly available info to enable:
Efficiency discovery (how much potential?)
Efficiency measurement (how much saved?)
Efficiency public credits (pass-through of regulatory benefits).

Democratization: Policy-driven, long-term open access to savings benefits for businesses and communities.

Efficiency, DR, carbon mitigation open to new market innovators.
Effective framework by which innovations are measured, and then

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