Integrated Demand Side Management Market Research

Transcription

1 Integrated Demand Side Management Market Research PLMA Spring 2016 Conference San Francisco, CA Brett Feldman, Navigant Lindsay Foley, National Grid

2 AGENDA 1. Integrated DSM Overview 2. Integrated DSM Drivers 3. Integrated DSM Barriers 4. Integrated DSM Market Forecasts 5. Integrated DSM Case Study: National Grid 1 / 2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED

3 INTEGRATED DEMAND-SIDE MANAGEMENT (DSM) DEFINITION Included in IDSM Not Included in IDSM 2 / 2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED

4 INTEGRATED DSM DRIVERS Program cost reduction potential Smart thermostats Targeted DSM Smart Thermostats (Source: Nest) Targeted DSM (Source: Retroficiencyl) 3 / 2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED

5 INTEGRATED DSM BARRIERS Utility and Regulatory organizational structures and budgets Cost-effectiveness and M&V challenges Energy audits Vendor conflict 4 / 2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED

6 MARKET FORECAST: INTEGRATED DSM SPENDING Combined global spending is expected to grow from $40 million in 2016 to $1.2 billion in 2025 Integrated DSM Spending by Region, World Markets: $1,400 $1,200 Middle East & Africa Asia Pacific North America Latin America Europe ($ Millions) $1,000 $800 $600 $400 $200 $ (Source: Navigant Research) 5 / 2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED

7 DemandLink NWA Pilot in Rhode Island Two Feeders serve 5200 customers in southern Tiverton & Little Compton Wires Solution 2014 Construction of a 3rd feeder at the Tiverton Substation to serve area $2.9 million in 2014 NWA : 6 Create 1MW of load relief to defer upgrade by 4 years EE & DR tactics for reducing AC and water heating load

8 DemandLink NWA Pilot in Rhode Island Projected 7

9 DemandLink Lessons Learned Marketing Tactics Should Be Direct and Frequent Year-round activities required to promote and maintain awareness and education Telemarketing service was most effective, s and direct mail pieces also helpful Community event allowed customers to demo products and have questions answered in person Save Money, Save Energy Pitch Is Not Always Effective Some are suspicious about the Company s motives for giving away free products Significant concerns about Big Brother aspect of remote activation of DR events Diversifying Incentives Broadens Participation Potential Central AC was not as prevalent as anticipated Window AC incentives were a significant part of 2013 participation More responses to DemandLink marketing can lead to additional audits 8

10 DemandLink Lessons Learned Minimize Customer Requirements Using the same vendor as EE reduces cost and streamlines delivery process for customer Customers were more receptive to the AC Recycling program if their unit was picked up at their home One rebate form used for both AC purchase and recycling rebates Communication is Vital Even After Recruitment Frequently Asked Questions document handed out at every install Contact information for troubleshooting and questions should be clear New for 2014 newsletter with special material just for participants to increase education around demand response events Run Test Demand Response Events Reveals issues with connectivity Identifies communication gaps Gives a general idea of what to expect for participation with central AC and window AC units based on data 9

11 CONTACT US MAIN OFFICE 1320 Pearl Street, Suite 300 Boulder, CO WORLDWIDE OFFICES United States: Boulder, Colorado Chicago, Illinois San Francisco, California Washington, D.C. Europe: Asia Pacific: Copenhagen, Denmark London, United Kingdom Seoul, South Korea BRETT FELDMAN Senior Research Analyst SALES INQUIRIES: MEDIA INQUIRIES: 10 / 2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED