MA Perspectives on Building Priorities for Climate and Energy Policy
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1 Division of Energy Resources Creating A Greener Energy Future For the Commonwealth MA Perspectives on Building Priorities for Climate and Energy Policy Philip Giudice Commissioner Phil.Giudice@State.MA.US January 14, 2009
2 Circumstance: Economic waste 2 Source: McKinsey 2008
3 Circumstance: Ratepayer Funded Efficiency 3,000 2,500 2,000 $ millions 1,500 1, Other Load Mgt Energy Efficiency
4 Circumstance: 3,764 GWh Efficiency 2006 GWh 65,000 60,000 55,000 50, Net Consumed Renew Other Hydro Oil Egy Eff Nuc Coal Import 45,000 NGas 4 40, Source: DOER, EIA
5 5 Circumstance: Efficiency is low cost option Cents per kwh Source: DOER Relative Electricity Cost Spot Wholesale Efficiency
6 Electricity Prices Across U.S. 6 Source: EIA
7 7 Creating A Greener Energy Future For the Commonwealth Circumstance: very high electric prices 2007 Retail Electric Price (Cents per kwh) M A HI CT NY MA NH NJ ME RI AK CA VT MD DE FL TX NV PA MI IL AZ LA WI MS OH GA NC CO AL MT NM MN OK SC VA TN OR AR KS SD IA IN MO UT WA ND NE KY WY WV ID Source: EIA Form 826
8 Circumstance: Unknowable future Annual forecast: colored lines Actual: black line with diamonds Natural Gas price per MMBTU Actual
9 Circumstance: availability of cheap oil 2004 Scenario 9
10 Circumstance: Meeting Peak Demand 100% 95% 90% 15% of Capacity for 1% of Hours Peak Capacity 85% 80% 75% 70% 10 65% 90% 91% 92% 93% 94% 95% 96% 97% 98% 99% 100% Annual Hours Source: ISO NE 2007 NEMA load zone
11 Circumstance: Few High Priced Hours 2007 NEMA LMP NEMA 2007 LMP $ per MWh $ per MWh Hours Source: ISO NE Hours
12 Opportunity: Green building 12 Source: Perkins+Will
13 Opportunity: Green building 13
14 Opportunity: Residential GWh 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Today: $2.9 billion/yr Future: $2.2 billion/yr 2006 consumption: 19,601 GWh Future consumption: 15,050 GWh Savings potential: 4,551 GWh Lighting 1,439 Refrigeration 1,450 Water Heating 14 Drying Clothes 907 Air Conditioning 392 Furnace Fans 212 Other HVAC 23 Washing Clothes Source: DOER, EIA Now Mile1 Mile2 Future
15 Opportunity: Simple Change Drive Result 1.8 TWh savings possible just w/ CFLs 3.2% reduction CFL Other Total Sockets Today 11,000,000 89,000, ,000,000 TWh Today TWh Possible
16 Opportunity: no magic bullets Electricity Usage in Commercial Buildings Electricity Usage in New England Households Cooking Other Space Heat Laundry Other AC Space Heat Refrigeration Cooling Computer TV Home Electronics Other Appliances Office Equipment Ventilation Lighting 16 Source: EIA Lighting Hot Water Hot Water Refrigerator
17 Priorities Stop wasting energy/ market failures abound Understand how its being used now Understand relevant options Change Building codes Raise the bar a lot Educate all and assure compliance Adopt substantially more energy efficient appliance and equipment standards 17
18 Priorities: MA Initiatives 18 Executive LBE RGGI 35% reduction by 2020 Funding efficiency expansion ZNEB Performance based outcomes 5 homes Pilot retrofit super insulation CERT/Energy Leaders competions MEPA Legislation Green Jobs Energy Efficiency Innovation Institute Ocean Management Clean Energy Biofuel Green Communities Building Codes Inspector Training Least cost procurement Community challenge grants Renewables/net metering Global Warming Solutions 80% GHG reduction by 2050
19 Beautiful or wasteful? 19
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