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Standardized Method for Quantifying Energy Efficiency Savings and Demand Reduction Benefits

Advanced Energy requests the development of a standardized method to quantify the benefits, savings, cost avoidance, and reduction in energy demand from Demand Side Management (DSM) and energy efficiency programs. This method aims to provide transparency and foster peer review, enhancing regulatory clarity by establishing common metrics that build confidence among stakeholders. As energy costs rise and climate change intensifies, creating consensus on energy efficiency's impact becomes critical to balancing supply-side and demand-side solutions.

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Standardized Method for Quantifying Energy Efficiency Savings and Demand Reduction Benefits

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  1. www.advancedenergy.org

  2. North American Energy Standards BoardBusiness Practice StandardCarl L. Wilkins919 857-9008cwilkins@advancedenergy.org

  3. Title of Request Standardized Method for Quantifying Benefits, Savings, Cost Avoidance and/or the Reduction in Energy Demand Derived from the Implementation of Demand Side Management and Energy Efficiency Programs

  4. Background • Advanced Energy history • 1980 non-profit serving utilities and customers in NC • Energy efficiency and renewables • Three IOU’s, NC cooperatives • Annual Report to the NC Utilities Commission • “What if we could easily quantify EE benefits and streamline the process for arriving at consensus?”

  5. Details of Request • Does a standardized method for quantifying the energy and demand impacts for a particular measure exist? (pre-program implementation) • Will the method be transparent and open to peer review? • The same questions apply to benefits as well • Can a set of standards bring clarity and reduce the amount of regulatory debate on the issue?

  6. Details of Request (cont’d) • Can all parties have confidence in the outcome of regulatory proceedings if there are standards for assessing the benefits of the EE/DSM options?

  7. Observation • Increasing energy costs, request for new base-load generation, climate change • Increased interest in utility EE and DSM • Regulators are asked to give strong consideration to supply-side versus demand-side options to mitigate need for future generation • Perception that energy efficiency is either overstated or underappreciated

  8. Observation (cont’d) • Regulatory proceedings have revived long standing debates around utility resource plans • This is not new ground (energy efficiency déjà vu) • “Middle ground” is hard fought • All sides suspect the other’s numbers and believability

  9. Observation (cont’d) • Standard cost effectiveness tests are used, but in the domain of the utility • The inputs to cost effectiveness test are standard, but sometimes perceived as subjective • The outputs of cost effectiveness tests are standard, but can vary based on assumptions

  10. The Challenge • Is this request legitimate, or misinformed observation? • Pre-program versus post-program evaluation? • Is this request unique, or in the purview of another organization (International Performance Measurement and Verification Protocol, NAPEE, etc.)? www.evo-world.org

  11. www.advancedenergy.org 919 857-9000 [phone] 919 832-2696 [fax] 909 Capability Drive, Suite 2100 Raleigh, NC 27606-3870

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