Why Energy Efficiency is Important!

Transcription

1 Why Energy Efficiency is Important! Arkansas PSC Energy Efficiency Workshop Docket No R February 21, 2006 Little Rock, Arkansas Brian T. Castelli Executive Vice President & Chief Operating Officer Alliance to Save Energy

2 Presentation Outline The Alliance to Save Energy The National Need for Energy Efficiency National Policies for Energy Efficiency America s 4 Largest Energy Savers: - Appliance Standards - Energy Star Labeling Program - Electric and Gas Utility DSM Programs - Building Energy Codes DSM in Georgia Southeast Energy Efficiency Alliance

3 What is the Alliance? NGO coalition of prominent business, government, environmental and consumer leaders who promote the efficient and clean use of energy worldwide to benefit the environment, economy, and national security. Mission: To advance energy efficiency world-wide through policy, education, research, technology deployment, market transformation and communication initiatives. Chaired by Senator Mark Pryor (D-AR) and James DeGraffenreidt (CEO Washington Gas) with strong bi-partisan congressional, corporate &public interest leadership.

4 Forging Alliances: Business, Govt. & Public Interests Alliance enjoys sponsorship by more than 100 businesses and organizations across a broad spectrum of economic sectors Unique structure with expertise in research, policy advocacy, education, technology deployment, and communications New Associates in 2004&2005: THE JOHANETTE WALLERSTEIN INSTITUTE

5 Where Do We Work? Key: Programs Staff

6 CONTEXT of the United States Energy Situation The Conundrum - The United States has 2% of the World s Oil Reserves - And 5% of the World s Population - But consumes 25% of the World s Oil

7 The Good News

8 Global Energy Intensity Decreasing Source: EIA, Annual Energy Review 2004

9 Global Per Capita Energy Use Flat

10 Energy Efficiency and Conservation America's Greatest Energy Resource: Energy Efficiency Improvements Since 1973 Petroleum Natural Gas Coal Nuclear Power Wood, Waste, Alcohol Source: Alliance to Save Energy and Energy Information Administration, Monthly Energy Review, January 2004 Net Imports Domestic Production Energy Savings Conventional Hydroelectric Geothermal, Solar and Wind

11 The Bad News

12 Energy Consumption Predicted to Rise

13 Growing Gap between Production Capacity and Demand for Energy

14 Driving Efficiency Through Policy Setting a Floor - Codes and Standards (Appliances, Equipment, Vehicles) - Building Energy Codes for New Construction Incentives for Stretch Goals - Utility Programs (DSM, Demand Response, etc.) - Market Transformation (Tax Incentives, Rebates, Loan Guarantees) - Voluntary Programs ( Climate Leaders ) Public Education at the Front - Consumer Education and Awareness Campaigns - Labeling (Energy Star) Research and Development in the Back - RD&D Partnerships with Industry

15 National Impacts of Energy Efficiency $400 Billion in savings 4 million barrels/day Carbon would be 30 percent higher 30,000 MW in electricity demand savings Q u a d s Efficiency Actual

16 America s 4 Largest Energy Savers Appliance and Equipment Standards Energy Star Labeling Program Building Energy Codes Electric and Gas Utility Demand-Side Management (DSM) Programs

17 Delivering Energy Efficiency Through Appliance and Equipment Standards Sets minimum energy performance Refrigerators sold today use three-fourths less energy than in 1973 Demand reduction equal to power from 18 nuclear power plants Source: Collaborative Labeling and Appliance Standards Program

18 Tapping the Potential: Appliance Standards Total savings from existing standards in 2000: - 2.5% of U.S. electricity use - 21,000 MW of peak power demand - $50 billion in net consumer savings Total savings from existing standards by 2020: - 7.8% of projected U.S. electricity use - 120,000 MW of peak power demand - $186 billion in net consumer savings Among most effective policies for saving energy!

19 Energy Star Voluntary Labeling Program Operated by Environmental Protection Agency (EPA) and Department of Energy (DOE) and Partners Sets requirements for labeling energy efficient products: - Appliances - Lighting products - Furnaces and Air- Conditioners - Computers and electronics Energy Star Homes Commercial Building Label Significant public awareness

20 Features of Energy Star New Homes

21 Building Energy Efficiency Codes Sets minimum requirements for residential and commercial building energy efficiency design Energy codes primarily regulate: - Wall and roof insulation (R-value) - Windows, doors and skylights (U-factor, SHGC) - HVAC equipment installed in new buildings - Control systems (SEER, EER, COP, etc.) Model energy codes developed by national organizations; - International Energy Conservation Code by ICC (residential) - ASHRAE Standard 90.1 (commercial) Codes adopted and enforced by state and local governments

22 Code Adoption Uneven in US

23 National Benefits of Building Energy Codes 41 US states have adopted model energy codes Since 1991, cumulative energy cost savings of $7.4 billion Annual energy savings of >0.50 Quads today Future potential if all states updated their energy codes: - Energy savings 0.85 quads annually - Cumulative savings through 2020 of about 5 Quads - CO 2 reductions> 50 million metric tons - $7 billion in energy cost savings to consumers - Avoid 32 new 400-MW power plants National energy codes program: $1 cost = $105 benefit Simple payback for code measures: about years

24 Electric and Natural Gas Utility Demand- Side Management (DSM) Programs Utility DSM refers to programs implemented by utilities to modify customer load profiles Reduce energy use, both during peak and offpeak periods, typically without affecting the quality of services provided. Such programs substitute technologically more advanced and efficient equipment to produce the same (or a higher) level of end-use services (e.g., lighting, heating, cooling, drive power, or building shell) with less electricity or natural gas.

25 Demand Side Management for New and Existing Load Numerous technologies for all sectors and end use applications - Residential, New and Existing - Commercial, New and Existing Cost-competitive 1.5 to 3.5 cents/kwh Can be targeted and closely managed Can be added in small or large increments It s always on!

26 Proven Potential

27 Bringing Back DSM to Georgia Utility DSM had been absent in GA since mid-1990s Alliance to Save Energy intervened in GA IRP docket in 2004 to bring DSM benefits info to PSC Large gulf in testimony between advocates and utilities on DSM benefits led to DSM working group PSC order Advocates and utilities negotiated for 8 months to: - Develop a set of consensus DSM programs per PSC order - Develop improved rules for considering DSM in future IRPs - Develop state energy policy recommendations DSM working group report accepted unanimously by PSC vote 2007 IRP now in progress under new procedures

28 Outcome of GA DSM Working Group Four new DSM programs: - Energy Star Homes Program - Energy Star Appliance Incentive Program - Home Inspector Information Program (existing homes time-ofsale) - A/C Duct Sealing Program Improved process for future IRPs - Continuous stakeholder involvement - Rate Impact Measure (RIM) test no longer exclusive DSM test. Total Resource Cost (TRC) test now also used to look at societal benefits. - DSM program benefits now evaluated to an analytic cap of up to 1.5% of utility s residential and commercial sector sales

29 What is The Southeast Energy Efficiency Alliance (SEEA)? The Southeast Energy Efficiency Alliance builds regional partnerships to promote and achieve energy efficiency for a cleaner environment, a more prosperous economy, and a higher quality of life. Covering 11 southeastern states 71 million residents

30 The Southeast Energy Efficiency Alliance (SEEA) SEEA s mission: The Southeast Energy Efficiency Alliance builds regional partnerships to promote and achieve energy efficiency for a cleaner environment, a more prosperous economy, and a higher quality of life. SEEA s role in the 11 state region: - Regional champion for energy efficiency - Modeled on other regional alliances (NEEP, MEEA, etc.) - Information clearinghouse for members, governments and the press; round table for participant discussion ( - Education and program capability (e.g. tax incentives workshop) SEEA s continued development: - State tour stakeholder meetings and outreach events - Incorporation as 501-C-3 organization

31 SEEA Stakeholders State, Federal and Local governments Public and private electric and natural gas utilities Business community (energy users, efficiency suppliers, manufacturers, retailers, ESCOs, etc.) Homebuilders and building designers (A/E) Non-Governmental Organizations (NGOs) (environment, low-income housing, etc.)

32 In Summary: Pursue a Balanced Approach to Energy Efficiency Building Energy Codes and Appliance Standards - New construction and renovation - Minimum efficiency standards of appliances and equipment Voluntary market transformation programs (Energy Star) - Appliances - Lighting products - New construction Targeted portfolio of DSM programs

33 Thank You! Alliance to Save Energy th Street, NW Washington, D.C Phone: Website: