PROPOSED APPROACH ENERGY-EFFICIENCY AND DSM RULES FOR PENNSYLVANIA S ALTERNATIVE ENERGY PORTFOLIO STANDARD

Transcription

1 PROPOSED APPROACH ENERGY-EFFICIENCY AND DSM RULES FOR PENNSYLVANIA S ALTERNATIVE ENERGY PORTFOLIO STANDARD Offered by Citizens for Pennsylvania s Future (PennFuture) March 14, 2005

2 Objectives and Principles for Efficiency and DSM Rules Objectives: 1. Achieve significant energy savings; efficiency is the potentially cleanest and cheapest resource 2. Maximize dollar value of economic benefits to the Commonwealth 3. Reduce pollutant emissions Principles: Efficiency rules should: 1. Only qualify efficiency that is greater than common practice in the marketplace 2. Stimulate lasting changes in market behavior 3. Be easily understood and straightforward to implement, at low transaction costs 4. Capture untapped efficiency potential

3 CONCEPTUAL APPROACH: EFFICIENCY RULES Target efficiency technologies newly installed in key end uses and markets in all customer sectors Give priority to high-value, low-cost lost-opportunity savings potential in new construction, end-of-life equipment turnover and new purchases Specify minimum-size savings blocks to minimize administration and transaction costs (e.g., 500 MWh/yr) Qualify and count savings based on typical DSM program requirements and savings protocols Model requirements and protocols on successful efficiency programs in neighboring states (NJ, NY) or regions (Northeast Energy Efficiency Partnerships)

4 CONCEPTUAL APPROACH: EFFICIENCY RULES (Continued) Tailor requirements and protocols for Pennsylvania to reflect expectations regarding the Commonwealth s building code, federal equipment standards, market conditions (e.g., hours of end uses) Develop and rely on deemed savings requirements and protocols to count savings in targeted end uses and markets (including measure life-expectancy, free-ridership) Deemed savings to be based on prior analysis, evaluation, and field experience Codify and issue requirements and protocols in the form of a Technical Reference Manual (TRM) Periodically (e.g., biennially) update TRM for changes in market conditions (e.g., efficiency baselines) For large, customized commercial or industrial projects, require engineering study and/or monitoring and verification protocol (costs to be borne by customer)

5 Examples of Proposed Approach to Efficiency Rules Residential central air conditioners Commercial HVAC Industrial motors Commercial lighting - new construction Commercial lighting - existing

6 Market Example: Residential Central Air Conditioner Current typical central air-conditioner (CAC) market Federal standard as of January 1, 2006 (EPAct) (baseline) Recommended threshold for credit ENERGY STAR Estimated savings credit for a SEER 15 installation Estimated savings credit per CAC if SEER 14 plus documented proper sizing, charge, flow through Manual J and site measurements 1 Estimated incremental cost of upgrade from SEER 13 to SEER 15 2 Estimated incremental cost of correct sizing, charge and air flow 2 Recommended change in usage calculation 1 Recommended credit for proper sizing, charge and air flow 1 SEER 11 SEER 13 SEER kwh 510 kwh $122 $244 kwh = ((tons 12,000)/1000) (1/SEER bas -1/SEER effi) ) FLH 300*SEER 13 / (SEER for efficient unit) [1] Based on reduction from 3 tons to 2.5 tons, and reduction from 750 load hours to 600 load hours [2] Based on the LIPA Cool Homes Program.

7 Residential Central Air Conditioner: Potential Residential Credit Aggregators Large residential new construction builders/developers Electric utilities Major HVAC equipment dealers/wholesalers Large chains; e.g., Sears, etc. Existing organizations such as RESNET-certified home energy raters

8 Market Example: Commercial 5 Ton Unitary/Split HVAC Systems Current typical unitary HVAC market Federal standard as of January 1, 2006 (EPAct) (baseline) Recommended threshold for credit (CoolChoice) Estimated savings credit per Unitary HVAC if install EER 13 or better Estimated incremental cost of upgrade from EPAct (EER 12) to CoolChoice (EER 13) 1 Recommended change in usage calculation 2 SEER 11 SEER 12 SEER kwh $46 kwh = ((tons 12,000)/1000) (1/SEER bas -1/SEER effi) ) FLH Note: This is an example of one category size and type of commercial HVAC equipment. Additional examples will be developed for HVAC equipment including: 1. Unitary and Split Systems 5.4 to tons; > to 30 tons 2. Air-to-Air Heat Pump Systems < 5.4 tons; 5.4 to tons; to 30 tons 3. Water Source Heat Pumps 30 tons 4. Chillers: multiple types and sizes [1] Based on CoolChoice Program costs = 80% of incremental cost [2] Based on 1000 annual full load operating hours (FLH), from Optimal Energy

9 Unitary/Split HVAC Systems: Potential Commercial Credit Aggregators Commercial contractors/builders/developers/ property managers/energy service companies Electric utilities Major HVAC equipment dealers/wholesalers/ vendors Large commercial and industrial customers

10 Market Example: 10 HP Motor 1800 RPM, Totally Enclosed Fan Cooled (TEFC), Ventilation Fan, Manufacturing Current typical motor market Federal standard as of January 1, 2006 (EPAct) (baseline) Recommended threshold for credit Estimated savings credit per motor if install MotorUp minimum Estimated incremental cost of upgrade from EPAct (89.5%) to MotorUp (91.7%) 1 Recommended change in usage calculation % 89.5% 91.7% 836 kwh $154 kwh = (kw base kw effic ) HOURS kw = HP (1/efficiency) LF Note: This is an example of one motor based on type, size and RPM category. Additional examples will be developed for motor equipment including: 1. Open Drip Proof (ODP): 1200, 1800 and 3600 RPM 2. Totally Enclosed Fan Cooled (TEFC): 1200, 1800 and 3600 RPM [1] Based on MotorUp Program costs = 65% of incremental cost [2] Based on 5,573 annual operating hours; LF = default load factor of 0.75, from Efficiency Vermont 2004 Technical Reference Manual

11 Motors: Potential Commercial Credit Aggregators Commercial contractors/builders/developers/ property managers/energy service companies Electric utilities Major motor equipment dealers/wholesalers/ vendors Large commercial and industrial customers

12 Market Example: Commercial Lighting - New Construction 20% Lighting Power Density (LPD) Reduction 20,000 sq. ft. Office Building Current typical new construction lighting market LPD PA Energy Code (baseline) Assumed PA Energy Code upgrade as of April 1, 2007 Recommended threshold for credit Estimated savings credit if installed LPD is 20% less than PA energy code, plus site inspection documents installed LPD Estimated incremental cost of upgrade to achieve LPD 20% < PA Energy Code 2003 IECC (ASHRAE/IESNA ) IECC (ASHRAE/IESNA ) 2006 IECC (ASHRAE/IESNA ) Lighting Power Density (LPD) 20% < 2003 IECC (ASHRAE/IESNA ) 15,828 kwh $3,200 = $0.80/sq. ft. per Watts/sq. ft. reduction Recommended change in usage calculation 2 kwh = ((W/sq. ft. base W/sq. ft. effic )/1000) HOURS WHF Note: This is an example of one building type and size. Additional examples will be developed for other buildings types and sizes. [1] $80/sq. ft. cost from professional judgment and based on review of cost studies. [2] Based on 3,435 annual operating hours, From Efficiency Vermont 2004 Technical Reference Manual WHF = Waste heat factor for energy to account for cooling savings from efficient lighting. For a cooled space, the value is 1.15 (calculated as / 2.5). Based on 0.29 ASHRAE Lighting waste heat cooling factor for Pittsburgh and 2.5 C.O.P. typical cooling system efficiency. For an uncooled space, the value is one. The default for this measure is a cooled space. Factor from Calculating lighting and HVAC interactions, Table 1, ASHRAE Journal November 1993.

13 Commercial Lighting - New Construction: Potential Commercial Credit Aggregators Commercial contractors/builders/developers/ property managers/energy service companies Electric utilities Architects, electrical engineers, lighting designers Large commercial and industrial customers

14 Market Example: Commercial Lighting - Existing 4-Lamp Fluorescent Lighting Fixture Office Building Current typical existing lighting market (baseline) Federal standard as of January 1, 2006 Recommended threshold for credit Estimated savings credit for installing High Performance (Super) T8 Lamp/Low Power Ballast System Estimated incremental cost of upgrade from Standard T8 System to High Performance (Super) T8 System 1 Recommended change in usage calculation 2 Standard T8 Lamp/Ballast System Energy Savings T12 (34 Watt) Lamps and Energy Efficient Magnetic Ballast High Performance (Super) T8 Lamp/Low Power Ballast System 79 kwh (per fixture) $24 (per fixture) kwh = ((Watts base Watts effic )/1000) HOURS WHF Note: This is an example of one fixture. Additional examples will be developed for 1, 2, and 3-lamp fixtures. [1] From Efficiency Vermont 2004 Technical Reference Manual [2] Based on 3,435 annual operating hours, Efficiency Vermont 2004 Technical Reference Manual WHF= Waste heat factor for energy to account for cooling savings from efficient lighting. For indoors, the value is 1.15 (calculated as / 2.5). Based on 0.38 ASHRAE Lighting waste heat cooling factor for Pittsburgh and 2.5 C.O.P. typical cooling system efficiency. For outdoors, the value is one. Factor from Calculating lighting and HVAC interactions, Table 1, ASHRAE Journal November 1993

15 Commercial Lighting - Existing: Potential Commercial Credit Aggregators Commercial contractors/builders/ developers/ property managers/energy service companies Electric utilities Major lighting equipment dealers/wholesalers/ vendors Large commercial and industrial customers

16 PROPOSED APPROACH: LOAD SHIFTING Measure in kwh shifted from pre-defined peak period to off-peak period (only kwh provide environmental benefits) Determine in advance the environmental benefits of kwh shifts from peak to off-peak periods Establish marginal emission factors for each period using longrange production simulation for PJM CAUTION: Environmental savings could be negative if shift from gas-fired combined cycle on-peak to coal-based generation off-peak Assign fractional credit to each kwh shifted based on ratio of emission factors in off-peak to emission factors in on-peak period