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Energy Efficiency MarketTransformation Opportunities
September 13, 2007
Transformation Opportunities for Texas
A Public Example: Investing in Energy Efficiency
FRED YEBRA, P.E., MBA, Director of Demand Side Management
A Workshop Sponsored by
Director of Demand Side ManagementAustin Energy
Fred is a registered engineer with 26 years of experience in the energy engineering field. He received his engineering degree from the University of Texas at Austin, and a Master of Business Administration degree from the University of Phoenix, Arizona. As Director of Austin Energy’s
Public Citizenwith
Texas Energy Efficiency Partnership
&
g y , gyDemand Side Management Division, Fred directs the energy efficiency customer services and utility demand‐side management for all residential, commercial, municipal and industrial electric customers. Austin’s energy efficiency programs are recognized as successful models and have won numerous state and national awards. In his current position, Fred also directs the City of Austin’s energy management plan to implement energy cost‐saving initiatives within the municipally‐owned facilities as the City of Austin’s Energy Manager. Fred’s previous experience
Electric Utility Marketing Managers of Texas
municipally owned facilities as the City of Austin s Energy Manager. Fred s previous experience includes Central Power & Light Company, the Public Utility Commission of Texas, and the Governor’s Office of Energy Management. Fred served as an engineering consultant with Texas Energy Engineering Services, and Energy Environment Interface, Inc. His experience also includes energy and environmental strategic planning, engineering consulting and project management, regulatory evaluations and compliance, and energy efficiency codes and standards.
Austin, TX
Fred is a founding member and past president of the Austin Chapter of the Association of Energy Engineers, and serves as a board member on the Texas Solar Energy Society.
Investing inE Effi iEnergy Efficiency
Energy Efficiency Market Transformation Opportunities for TexasOpportunities for Texas
August 13 2007August 13, 2007
Power SaverTM ProgramSaving Energy Together 1
Austin EnergyAustin Energy
• Municipally-owned• 800,000 population800,000 population• Area > 400 sq. miles• Generation 3 170 MWsGeneration 3,170 MWs
Power SaverTM ProgramSaving Energy Together 2
Energy Efficiency P k D d S iPeak Demand Savings
800
600
ed
400
MW
's S
ave
0
200
M
Year1982-99 2000 2001 2002 20042003
Power SaverTM ProgramSaving Energy Together 3
Austin City CouncilResolution September 14, 1999
“Cost-effective conservation programs shall be theCost-effective conservation programs shall be the first priority in meeting new load growth requirements of Austin Energy. ”
Clean Energy Resolution August 28, 2003Austin Energy Strategic Plan to ensure Austin… Austin Energy Strategic Plan to ensure Austin
remains a national and international leader in the development and use of clean energy
Power SaverTM ProgramSaving Energy Together 4
Austin Energy’s ResponseAustin Energy s Response
Energy Efficiency is first priorityEnergy Efficiency is first priority15% Demand-Side Management by 202020% Renewable Energy by 2020gy y100 MWs of Solar by 2020
CCommercial, Residential Energy Efficiency and Solar Rebate Programs
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Austin Energy Strategic Goals Demand Reduction and Savings
617700
617
500
600
A t l F t
200
300
400
MW
Actual Forecast
-
100
200
2003 2005 2007 2009 2011 2013 2015
Fiscal Year
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FY2007 Budget and Goals
Program Area Budget Goal MWMW
Commercial $ 4,024,170 14.49
Residential $ 6,078,991 11.25
Load Management $ 4,683,672 15.04
Solar $ 3,500,000 .50
G d T t l $ 18 286 833 41 28Grand Total $ 18,286,833 41.28
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DSM Reduction in Fuel Costs $0 030
$0.028
$0.029
$0.030
F l C t ith t DSM
$0.026
$0.027Fuel Cost without DSM
$0 023
$0.024
$0.025
$0.021
$0.022
$0.023
Fuel Cost with DSM
$0.020
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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Cash Flow Projection of DSMCash Flow Projection of DSM
FY05 ForecastFY05 ForecastDSM Analysis 2007 2008
Base Revenue Reduction $12,000,000 $16,000,000
Fuel Revenue Reduction $13,000,000 $15,000,000
Customer Savings (Bill Reduction) $25,000,000 $31,000,000
Power SaverTM ProgramSaving Energy Together 9
Austin Climate Protection PlanResolution on February 15, 2007
“Make Austin the leading city in the nation in the effort to reduce andnation in the effort to reduce and reverse the negative impacts of global
i ”warming.”
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Austin Climate Protection Plan• Makes all COA facilities/fleets carbon neutral
– Facilities 100% renewable by 2012Facilities 100% renewable by 2012– Fleet carbon neutral by 2020
• Makes Austin building codes most EE in nation• Mechanisms for business to reduce carbon• Austin Energy’s GHG-reduction by 2020
– Achieve 700 MW through energy efficiency– Meet 30% energy needs with renewable energy
Achieve carbon neutrality on new generation– Achieve carbon neutrality on new generation– Establish CO2 cap for utility emissions
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Promoting Energy EfficiencyPromoting Energy Efficiency• Cash rebates that pay 20 – 30% of cost • Up to 70% buy-down incentives for Small Business• Direct install measures• Free home and business energy audits• Free home and business energy audits• Low-income Free Weatherization• Engineering Feasibility studiesg g y• Inter-agency agreements• Utility Key Account representatives
Newsletter / Mail outs• Newsletter / Mail outs
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Free Home Weatherization
Energy Improvements:• Insulate Attics
D t S li• Duct Sealing• Install CFLs
Installing Solar Screens• Installing Solar Screens• Caulking and Weather-stripping• Free Smoke & Carbon Monoxide Detector• Free Smoke & Carbon Monoxide Detector • Minor Energy Related Repairs
Power SaverTM ProgramSaving Energy Together 13
Power Saver Program
• FREE Energy Saving Productsgy g• Lower energy costs• 65,000 installed in homes, apartments, , p• 4,000 installed in commercial buildings
Power SaverTM ProgramSaving Energy Together 14
Home Energy Efficiency
• Average Home Has 27% Duct Leakage
Air Duct SystemAverage Home Has 27% Duct Leakage
Attic Insulation• 30% of Homes Heat Gain Comes from Attic
Solar Shading• Can Reduce Sizing of A/C by ½ Tong y ½
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Cycling A/C ThermostatsC li S i J 15 2005Cycling Session, June 15, 2005
Forecast vs Actual Load 2193-MW
2200 Curtailment Session Start
Curtailment Session Finish
2150MW
2174-MW
2100
ForecastAct Load
21001500 1600 1700 1800 1900 2000
Hour
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Commercial Rebates Summary of Technologies
• EE Lighting retrofits• Air Conditioning Unit
• Premium Efficiency Motor
• Solar Film/Screens • Ceiling/Roof
• Variable Frequency Drives (VFD’s)
Insulation• Reflective Roof
• Retro commissioning• Thermal Cool Storage
Coatings • Custom technologies
Power SaverTM ProgramSaving Energy Together 17
Solar Rebate ProgramSolar Rebate Program
• 100 Mega watts of solar by 2020• 100 Mega-watts of solar by 2020.
• Rebates among the nation’s
largest.
• Encourage installations on
homes & businesses.• Demonstrations in Schools• Demonstrations in City buildings
Power SaverTM ProgramSaving Energy Together 18
Solar Rebate ProgramSolar Rebate Program
• Pays maximum of $4,500 per kW.
• Residential rebates capped at $13,500
C i l b t d t $100 000• Commercial rebates capped at $100,000.
Power SaverTM ProgramSaving Energy Together 19
Municipal Energy Management Performance Contracting
T t ti l id tifi d $15 000 000 i EE j t• Tentatively identified $15,000,000 in EE projects
• Detailed Energy Audit’s in progress in 9 Departments• Detailed Energy Audit s in progress in 9 Departments exceeding 2,000,000 sq. ft.
• Currently $5,000,000 LoanSTAR from SECO
• Planning to submit for $5,000,000 for water utility projects.
Power SaverTM ProgramSaving Energy Together 20
Strategic Conservationg
• Municipal Energy Conservation p gyProgram
• Traffic Signal Conversion to LEDLED
• 5,500 traffic signalsExisting incandescent lamps 135 watts
New LED lamps 15 wattsEnergy savings per lamp 120 watts
90% energ red ction90% energy reduction
Power SaverTM ProgramSaving Energy Together 21
Energy Conservation in Public FacilitiesFluorescent Streetlight Test900 Block of West Avenue900 Block of West Avenue
E i ti 3 250 W tt HPS 885 W tt (@295 W tt /E )Existing High Pressure Sodium New Fluorescent
Existing 3-250 Watt HPS = 885 Watts (@295 Watts/Ea)Existing 2-100 Watt HPS = 250 Watts (@125 Watts/Ea)
Existing Total 1,135 Watts
N 5 100 W tt Fl 515 W tt (@103 W tt /E )New 5-100 Watt Fluor = 515 Watts (@103 Watts/Ea)Reduction = 620 Watts
A 55% Reduction
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Energy Conservation in Public FacilitiesEnergy Conservation in Public Facilities
Power SaverTM ProgramSaving Energy Together 23
Energy Conservation in Public FacilitiesSenate Bill 5 Energy Use vs. Energy Cost
350 30.0
330
335
340
345
ours
27 0
28.0
29.0
ars
310
315
320
325
330
Gig
awat
t-ho
25.0
26.0
27.0
Mill
ion
Dol
la
295
300
305
310
Base Year 2002 2003 2004 2005 2006
G
22.0
23.0
24.0
2001
Million kWh Cost
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Q ti ?Questions ?
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Load Shifting - Thermal Storage Austin Bergstrom International Airport July 1999Austin-Bergstrom International Airport - July 1999
2000
2500
12 AM2 AM
4 AM6 AM
8 AM10 AM
12 PM 0
500
1000
1500
T
Central Plant Demand (kW)
12 PM2 PM
4 PM6 PM
8 PM
10 PM 0 13
16
1922
2528
31
0
Month
Time of day
10 PM
1
4
7 10Day of M
on
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Demand Response June 15, 2005
Peak Day: June 2 2005Peak Day: June 2, 2005
June 15, 2005
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Building Retrofit CommissioningBuilding Retrofit-CommissioningHigh Tech Industryg y
Re-tuning & calibrating an existing building
Savings estimate: $260,000 per year
Utility incentive: $10,000 for initial assessmenty $ ,
Total cost of project was $149,000
Economic payback was 7 months.
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High Bay Fluorescent RetrofitHigh Bay Fluorescent Retrofit
Manufacturing FacilityManufacturing FacilityConverted (514) 400-watt HID lamps to 4 lamp 240 watt T5 HO Fluorescents4-lamp 240-watt T5 HO Fluorescents
Annual Cost Savings: $43,812Project Cost: $122 800Project Cost: $122,800Utility rebate: $33,153 (27% of job cost)Payback was 2 yearsy y
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Reflective Roof CoatinggTarget Commercial facilities with flat, dark colored roofs
• Rebate up to $0.15/sq. ft.p $ q• 300,000 sq. ft. roof• Expected Savings
• 192,000 kWh/year;total of 148 kW
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Home Energy Efficiency
Base Home Retrofit Home Difference
Energy Usage – After Energy Improvements
Base Home Retrofit Home Difference kWh/Sq. Ft. kWh/Sq. Ft. kWh/Sq. Ft.
8 98 S Ft 7 68 1 3 kWh/S Ft8.98 per Sq. Ft. 7.68 1.3 kWh/Sq. Ft. Improvement
2000 Sq. Ft.Base Home = 17,960 kWh Annual UsageRetrofit Home = 15,360 kWh Annual UsagekWh Savings = 2,600 kWh Cost Savings = $273
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Commercial Rebates S f Li h i T h l iSummary of Lighting Technologies
• T 8 & T 5 High Efficiency Lighting Systems• T-8 & T-5 High Efficiency Lighting Systems • Compact Fluorescent Lamps (CFL’s) • LED (Light Emitting Diode) Exit SignsLED (Light Emitting Diode) Exit Signs • Incandescent to Fluorescent Conversions • New building designs• Re-lamping & Re-ballasting of Existing Fluorescent Fixtures • High-Bay Fluorescent Systems • Lighting Controls (occupancy sensors)
Power SaverTM ProgramSaving Energy Together 32
DSM OpportunityAE System Duration Curve -2004
2 000
2,500
Top 160 MW is used 40 hours per year
AE System Duration Curve -2004
1,500
2,000
erat
ed
40 hours per year
1,000
MW
s G
ene
500
00% 10% 20% 30% 50% 60% 70% 80% 90%
% of Yearly Hours
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Energy Use Modification
St t i
gy
Peak ClippingStrategic
Conservation Load Shifting
Power SaverTM ProgramSaving Energy Together
AE DSM Programs
Peak ClippingPeak Clipping • Power Partner
• A/C Cycling
• W/H Cycling
L d C O• Load Co-Op
Represent 51% of new DSMRepresent 51% of new DSM program mix
Power SaverTM ProgramSaving Energy Together
AE DSM ProgramsStrategic Conservation
•Total Home EfficiencyTotal Home Efficiency•Small Business Efficiency•Green BuildingA li Effi i•Appliance Efficiency
•Multi-family Rebates•Commercial Rebates•Refrigerator Recycling•Free Weatherization•Municipal ConservationMunicipal Conservation•Air Duct Sealing
Represents 32% of new DSM program mix
Power SaverTM ProgramSaving Energy Together
AE DSM Programs
Load Shiftingg
•Time-of-Use Rate
•Thermal Energy Storage Systems
Represents 17% of newRepresents 17% of new DSM program mix
Power SaverTM ProgramSaving Energy Together
Promoting Energy Efficiencyg gy y• Cash rebates that pay 20 – 30% of cost • Up to 70% buy down incentives for Small Business• Up to 70% buy-down incentives for Small Business• Direct install measures• Free home and business energy auditsFree home and business energy audits• Low-income Free Weatherization• Engineering Feasibility studies• Inter-agency agreements• Utility Key Account representatives• Newsletter / Mail outs
Power SaverTM ProgramSaving Energy Together 38
Electronically Commutated MotorsElectronically Commutated Motors (ECM)( )
• Emerging Technology for Refrigeration FansReplaces Shaded Pole and Permanent Split Capacitor– Replaces Shaded Pole and Permanent Split Capacitor
• Reduced energy consumption to 60%R l ti l Si l R t fit• Relatively Simple Retrofit
• Typical Paybacks Range from 2 to 3 years
Power SaverTM ProgramSaving Energy Together 39
Large Grocery Chain RetrofitLarge Grocery Chain Retrofit
Retrofit currently underwayRetrofit currently underway
– 22 Locations in Austin area
– Fans per location store ~ 200 fan/motors
– Energy Cost Savings ~$10,000 /location/yr
Power SaverTM ProgramSaving Energy Together 40