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Advancing Energy Efficiency Initiatives in New England: Progress Review and Future Challenges

This article discusses recent developments in New England's energy efficiency programs, including the restructuring roundtable held in June 2010. It highlights key initiatives, progress updates, benefits, challenges, and future priorities in promoting clean energy, combating climate change, and enhancing efficiency standards.

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Advancing Energy Efficiency Initiatives in New England: Progress Review and Future Challenges

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  1. Recent Developments in New England’s Bedrock EE ProgramsRestructuring Roundtable, June 18th, 2010 Frank Gorke Director, Division of Energy Efficiency frank.gorke@state.ma.us 617.626.7352 www.mass.gov/doer

  2. Clean Energy Activity • Global Warming Solutions Act • Green Communities Act • IOU Energy Efficiency Programs • Utility Rate Decoupling • Renewable Portfolio Standard • Alternative Energy Portfolio Standard • Building Energy Codes • Green Communities Division • Zero Net Energy Buildings • Leading by Example • Regional Greenhouse Gas Initiative • MA Clean Energy Center • American Recovery and Reinvestment Act

  3. MA is #2

  4. GCA Efficiency Program Vision • Least cost procurement requirement on IOUs • Programs operated by IOUs and CLC • Three year plans • From fixed budget to entrepreneurial • Expanded role for CHP • Stakeholder involvement • SBC, RGGI, FCM, EERF funding sources

  5. Nation-Leading Energy Efficiency Plans • Energy Efficiency Advisory Council (EEAC) • 25 public meetings • Chaired by DOER Commissioner Phil Giudice • 11 voting members • Business, industry and environmental groups, residential energy users, state environmental and economic development officials, the Attorney General • Program Administrators • EEAC unanimously approved plans (10/09) • DPU approved plans (1/10)

  6. Progress update: Two years out from the GCA • Great goals, strong plans • Solid, open process • Building off the old programs – good and bad • Some great new approaches • Improving integration of programs and program delivery • Ahead of the goals in some programs; behind in others

  7. Three-Year Plan: Benefits at a Glance About 3x the annual savings over 2008 Electric • 2.4M Residential, Low Income, and Commercial participants over 3 years • Investment of $1.7B over 3 years • 30,000 GWh savings over the lifetime of the measures • Efficiency represents 2.4% of sales in 2012 Gas • 920,000 Residential, Low Income and Commercial participants over 3 years • Investment of $483M over 3 years • 897M therms savings over the lifetime of the measures • Efficiency represents 1.15% of sales in 2012

  8. Efficiency plans Built on Experience • Most ambitious plans in US • 3 year Plans • $ 6 billion savings from $2 billion investment • 3X per capita CA’s 3 year plan 60 million MWh Efficiency 40 million MWh Generation 1991 2012 Source: DOER

  9. Challenges: MA • Reaching and motivating customers • Deeper savings • Financing and outside funding • Some program design issues • Doing all the hardest things • Settling at the appropriate level of regulatory and stakeholder review

  10. Challenges: Global • Policy – Federal/State; working relationships; patchwork • Calculations • Free Riders, Spill Over, Market transformation, Useful remaining life • Measurement and verification, end usage data, documented outcomes • TRC; Benefit/Cost • Onerous well established regulatory processes • Appropriate incentives for achieving results; making a profit • Removing disincentives for achieving results • Assigning attributable causation • Delivery • Capitalizing on diverse delivery models – free market approaches • Creating valuable jobs while changing delivery models • Customer interest • Making people care about it when its not economically of interest • End user time frames, split incentives • Making efficiency easy for end users • Tailored to the vast variety of end users • Funding

  11. Perceived Efficiency Panaceas • Decoupling • PACE • Economic self interest • Smart Grid, real time pricing • Technology breakthroughs • EERS/ White Tags • Competitive market solutions • Communication

  12. Two Invitational Global Priorities • Buildings • Codes  stringent  stretch  ZNEB • Labeling: asset and operational • Appliances • Beyond minimum standards • One watt stand-by

  13. Closing Thoughts • Efficiency matters and will take work • New ideas are needed and existing approaches are valuable – change is hard • Lots of work remains – leadership and partnership needed • Success is highly likely – shared commitment exists • Opportunity to be a showcase – reducing energy waste while growing our economy

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