Enabling Renewables with Energy Efficiency

Transcription

1 Enabling Renewables with Energy Efficiency Scotte Elliott May 17, 2012 World Renewable Energy Forum 2012 Denver Colorado

2 Collaborators Scotte Elliott Pelee Solar, Columbus Ohio Cheryl Jenkins Introduction Vermont Energy Investment Corporation, Burlington Vermont 5/17/2012 ENABLING RENEWABLES WITH ENERGY EFFICIENCY 2

3 Overview Today s presentation includes slides from a US Department of Energy webinar Title: Integration of Energy Efficiency and Renewable Energy Author: Cheryl Jenkins, VEIC Webinar slides distinguished by a blue background 5/17/2012 ENABLING RENEWABLES WITH ENERGY EFFICIENCY 3

4 Introduction Energy efficiency (EE) is usually the least expensive way to respond to growing energy needs Can reduce energy use; meet policy resource adequacy needs; provide jobs! Barriers include: Not well understood Can have high up front costs (even though cost effective) Project work not visible, and not sexy! 10 Integration of Energy Efficiency & Renewable Energy eere.energy.gov

5 Introduction Renewable energy (RE) is a key low-carbon, domestic energy source Increasing interest in effective and financially appropriate ways to develop renewables projects Project work visible and iconic Potential economic and jobs impact Barriers include: Not yet economically attractive to all High up front costs (even when cost effective) 11 Integration of Energy Efficiency & Renewable Energy eere.energy.gov

6 Introduction Both are key elements in planning for sustainable development Addressing energy independence and security Green jobs Climate change Interest in both is rising Programs to support EE and RE Planning targets often specify both Renewable Portfolio Standards & now some EE Portfolio Standards 12 Integration of Energy Efficiency & Renewable Energy eere.energy.gov

7 Integration of EE & RE DON T JUST DO BOTH DO BOTH TOGETHER Whenever we: Plan Build Hire Fund Think about energy! Legislate Finance Invest Market 13 Integration of Energy Efficiency & Renewable Energy eere.energy.gov

8 Homeowner Benefits Integration = bundle higher green energy costs w/ lowercost efficiency in buildings View the house as a system Potential to stage projects: maximize potential EE opportunities, then correctly size RE system Save (more!) money Increase comfort and performance Single contractor/installer = single point of contact for information Lower transaction costs Simpler financing roll costs together Do the right thing This is the basis of the Net Zero approach 15 Integration of Energy Efficiency & Renewable Energy eere.energy.gov

9 Homeowner Benefits - Example Solar Electric, no EE PV size (kwh/yr) 10,000 Project Cost $37,500 Annual Energy Savings (MMBtu) Annual Cost Savings 34.1 $2,000 Lifetime 20 Lifetime Energy Savings (MMBtu) Lifetime Cost Savings Savings/ Investment Ratio 683 $40, NPV $1,335 Solar Electric, W/ EE 5,000 $21, $1, $35, $13,134 Solar Electric, W/ more EE 5,000 $29, $3, $71, $40,104 1) Add efficiency to project: Replace refrigerator; Install efficient lighting and ondemand hot water system. Cost = $3,000 2) Additional efficiency: Replace heating system; insulate; reduce air leakage. Additional cost - $8, Integration of Energy Efficiency & Renewable Energy eere.energy.gov

10 Benefits to Businesses View the building as a system EE + Correctly sized RE system higher return on investment Reduce overall operating expenditures Increased environment health and safety Fewer facility and administrative activities Fit corporate mission Enhance environmental stewardship and corporate sustainability Reduce overall carbon footprint Create bond with employees and local community Enhance public image 17 Integration of Energy Efficiency & Renewable Energy eere.energy.gov

11 Moscone Convention Center: San Francisco One of the largest publically owned solar systems in the US Funded through revenue bonds approved by voters to finance RE & EE projects Project completed in ,000 sq ft PV array Lighting upgrades and control systems over 442,000 sq ft of building 21 Integration of Energy Efficiency & Renewable Energy eere.energy.gov

12 Moscone Convention Center Solar System Energy Efficiency Total Cost after incentives $2,428,000 $3,278,000 $5,706,000 Savings or output in kw hours/year 826, million 21% of 2006 usage Tons CO2 displaced 317 1,616 1,933 Project payback = ten years 22 Integration of Energy Efficiency & Renewable Energy eere.energy.gov

13 Installer/Contractor Benefits Integrate support of both EE & RE into the business Access to wider market (especially as policies change) Job prospects increase RE contractors integrated into the broader mainstream building community Single point of customer contact and service Take advantage of shared marketing strategies (Green labeling!) Coordinated training Expanded work opportunities for staff Scaling of business prospects = reduced costs to customer Remove competition for $$ between EE & RE Investors see a diversified mix of services and a higher margin Help weather slowdown in market 23 Integration of Energy Efficiency & Renewable Energy eere.energy.gov

14 Benefits to Program Administrators Integrate support of both into programs Use interest in RE to drive EE Clearer and less expensive if single program administration Single point of contact for customers, contractors, funders Remove competition for $$ - Efficiency vs. renewables Potential to focus on upstream support More efficient program planning and performance goals Simplified evaluation Design into whole building solutions Tap into Green Building movement 26 Integration of Energy Efficiency & Renewable Energy eere.energy.gov

15 Benefits to Policy Makers Enact policies & goals that support integration Current silos don t always work well Good political messaging: linking through single overall energy policies; climate change policies; sustainable energy strategies Integration can help break down barriers between interest groups Bottom Line: Consider integration whenever developing policies 28 Integration of Energy Efficiency & Renewable Energy eere.energy.gov

16 Fortin Ironworks Project Columbus, Ohio Project Scope Energy Efficiency: White Roof, Lighting Retrofit, Insulation Renewable Energy: 69 kw Rooftop PV System Estimated Savings 85,000 kwh 242 MMBTU

17 Fortin Ironworks Project Benefits Combined EE/RE project leveraged multiple incentives Federal Tax Credits Equipment Depriciation Utility Energy Efficiency Rebates State of Ohio Energy Efficiency Program for Manufacturers Resulted in greater utility cost savings (lower operational costs) Increased economic development for the region (local contractors)

18 Scotte Elliott Pelee Solar Questions? Cheryl Jenkins Vermont Energy Investment Corporation 5/17/2012 ENABLING RENEWABLES WITH ENERGY EFFICIENCY 34