Center for Energy and Environment
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1 July 29, 2015 Center for Energy and Environment Providing energy solutions for homeowners, nonprofits, businesses and government The Changing Electric System and Energy Efficiency s Promise to Keep Bills Low Joseph Sullivan Manager of Strategic Relations
2 CEE s Nonprofit Mission The Center for Energy and Environment (CEE) is a nonprofit organization that promotes energy efficiency to strengthen the economy while improving the environment We do this through: Nation-leading Energy Efficiency Research Award-winning Energy Efficiency Programs that have saved customers well over $500 million Nearly $200 million in Clean Energy Project Financing Policy Innovations such as Minnesota s Energy Efficiency Resource Standard and associated utility financial incentives Pg. 2
3 35 Years of Clean Energy Accomplishments Program Design and Delivery Lending Center Engineering Services Research 80,000 Residential Customers 25,000 loans totaling over $190M Independent 3 rd party investigators Nationally recognized Supervised and tested 13,300 homes in the Sound Insulation Program Close over 800 loans annually Investigated over 30M square feet of buildings Research informs all of our programs Completed over 10,500 lighting retrofits resulting in $98M annual savings Average loan amount is $8,000 Average building sees a less then 2 year payback Published over 125 technical papers Pg. 3
4 The Big Trends in Minnesota Approximately 12% annual reduction in coal use from 5 years ago and a 22% reduction from 1998 Coal still more than 50% of energy generated and consumed in Minnesota Wind energy has increased 2.5x since 2006 Nuclear remains steady at about 23-24% Decarbonization - Since 2007 Minnesota Has Reduced Electric Sector Carbon Emissions by about 20% Pg. 4
5 Macro-Drivers Affecting Power Plant Fleet? 1. Low Natural Gas Prices Putting Extreme Pressure on Coal and Nuclear Fleet 2. Uneconomic and Old Coal Facilities Closing 3. Public is Demanding Cleaner and Newer Power Plants 4. Regulatory Uncertainty/EPA s Upcoming Rules 5. NRC 20 year licenses for Minnesota nuclear reactors will expire in the early 2030s Pg. 5
6 Minnesota s Changing Electric System MWhs, 2011 MWhs, 2040 Coal Nuclear Wind Nat. Gas Biomass Wood Hydro Other Petroleum Coal Nuclear Wind Nat. Gas Biomass Wood Hydro Other Petroleum Pg. 6
7 The Upshot 1. Potential rate increases for residents, businesses, and governments 2. Cleaner but more reliable electric system 3. Uncertainty 4. More opportunities for controlling costs and being involved in the system Pg. 7
8 What can a Community do? Pg. 8
9 Energy Efficiency is Cost effective-ee pays for itself over its lifetime. If a project uses less energy but never pays for itself IT S NOT more efficient! Efficiency = Increased energy productivity. Efficiency is about fixing electric leaky faucets EE saves money, resources, reduces emissions, allows public dollars to be spent on city priorities Efficiency increases local control EE keeps bills low even if when rates go up Pg. 9
10 Examples Pg. 10
11 City of Slayton (2009) The Slayton City Council instructed the City Administrator to pursue programs to make the City more efficient Working through Xcel Energy and with CEE, the City retrofit inefficient lighting throughout the Fire & Police Departments, City Hall, Library and Senior Center The City further partnered with Xcel Energy and CEE to help promote lighting upgrades and retrofits to Slayton businesses City electricity savings ~ $2800 per year. Payback 1.7 years These savings are attributed only to changing lighting Pg. 11
12 107 cities already served by CEE s One-Stop Efficiency Shop Focused on lighting upgrades in Xcel Energy s service territory Lighting projects in Airports, City Halls, WWTP, Police and Fire, Cemetery s, Liquor Stores, Golf Courses, Senior Centers To date, One-Stop is saving these communities $1.7 million per year through lighting retrofits alone One-stop has served more than 12,000 customers. Total savings to these customers of more than $480 million Pg. 12
13 Washington County Government and Law Enforcement Center (2015) Washington County s largest building~668,000 square feet. Consists of office space, court rooms, and county jail CEE conducted an in depth engineering audit to determine energy saving potential Multiple Findings Fix Air Handling Units (AHUs) to operate only when the building is occupied. $58,053 per year in savings Restore VFD fans to auto mode-save $3,070 per year. Optimize AHUs to utilize outside air. Saves $780 per year. 2.4 year payback. Cost to optimize $1,872. Reprogram AHUs to better reset-saves $678 per year. 2.2 year payback. Cost to reprogram $1500 Fix leaking hot water from AHUs. Saves $1667 per year. Less than 1 year payback. Cost to fix-$1,200. Pg. 13
14 Horizon Middle School Moorhead, 2008 New construction but building used excessive energy and there were comfort and pressure issues CEE conducted a comprehensive recommissioning study in 2008 Recommissioning determined: Intake fans were overpowering return fans Pumps not synchronized to outdoor temperatures Hot water system not optimized Air Handling Units operated when nobody present Implementation of improvements saved $141,227 per year. 3 year payback. $422,600 total cost. Pg. 14
15 But aren t we going to run out of EE opportunities? 1. Lots of lights still need to be replaced! New LED lighting is much more efficient than CFLs. Technology keeps advancing! 2. Commissioning/Re-commissioning Buildings a) Tremendous amount of efficiency waiting to be unlocked. Optimizing systems, cooling/heating as needed, etc. b) Fixing air leaks so buildings can be controlled. c) Running the building the right way! 3. The Internet of Things a) Nest/smart thermostats, wifi-lighting systems, smart metering, virtual power plants. Pg. 15
16 Resources for Cities to Optimize Energy Utilize CEE 35 years of experience working with Cities Low interesting lending programs Multifamily/Residential Program - Xcel Energy and CenterPoint Energy Xcel Energy/CEE One-Stop Lighting Program Utility conservation programs Xcel Energy Partners-in-Energy Program Minnesota Department of Commerce Guaranteed Energy Savings Program Pg. 16
17 Building energy efficiency Strategies: Advanced metering & infrastructure Co-Location Occupant behavior Community education Pg. 17
18 Partnerships Pg. 18
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