spring symposium - all slides april 26 2018 - cedmc.org · glenn sansbury, senior client manager,...
TRANSCRIPT
3
Our Board of Directors
Carmen Henrikson (Chair), TRC Valerie Richardson (Vice Chair), DNV GLTerry Fry (Treasurer), CadmusNick Brod (Secretary), CLEAResultMahlon Aldridge, Ecology ActionSharyn Barata, Opinion DynamicsLauren Casentini, Resource InnovationsCody Coeckelenbergh, Lincus
Ann McCormick, Newcomb AndersonMcCormick
Matt O’Keefe, Oracle/OpowerGene Rodrigues, ICFRichard Sperberg, Onsite Energy Paul Whitelaw, WilldanGreg Wikler, Navigant
Event program committee members appear in red.
6
Efficiency Always: new and enduring roles for EE in evolving energy markets
Maggie Molina, Senior Director of Policy, ACEEE
Efficiency Always: New and Enduring Roles
for Energy EfficiencyMaggie Molina
Senior Director for Policy
ACEEE
April 26, 2018
aceee.org @ACEEEdc
The American Council for an Energy-Efficient Economy is a nonprofit 501(c)(3) founded in 1980. We act as a catalyst to advance energy efficiency policies, programs, technologies, investments, & behaviors.
Our research explores economic impacts, financing options, behavior changes, program design, and utility planning, as well as US national, state, & local policy.
Our work is made possible by foundation funding, contracts, government grants, and conference revenue.
Energy Efficiency & DRP: Survey Results
Efficiency considered as an active resource?
Efficiency and distribution planning departmental coordination?
Yes
No
EE in distributed resource planning: recommendations
Valuation methods should continue to be enhanced and improved to capture the full value of energy efficiency.
Planning processes should be coordinated to improve outcomes.
The National Standard Practice Manual should be a tool for regulators and utilities to measure cost effectiveness of efficiency investments.
Geotargeted efficiency should be used as a complement to broad-scale or system wide efficiency, not as a replacement.
ACEEE resources on utility EE program strategies
• York, D. et al. 2015 New Horizons for Energy Efficiency: Major Opportunities to Reach Higher Electricity Savings by 2030.
• Nowak, S. 2016. Big Opportunities for Small Business: Successful Practices of Utility Small Commercial Energy Efficiency Programs.
• Cluett, R. and J. Amann. 2016. Scaling Up Participation and Savings in Residential Retrofits.
• Perry, C. 2017. Smart Buildings: A Deeper Dive into Market Segments.
• Baatz, B., G. Relf and S. Nowak. 2018. The Role of Energy Efficiency in a Distributed Energy Future.
• Denson, JR and S. Hayes. 2018. The Next Nexus: Exemplary Programs That Save Energy and Improve Health.
• Khan, S. and S. Vaidyanathan. 2018. Strategies for Integrating Electric Vehicles into the Grid
ACEEE resources on utility EE program strategies –forthcoming in 2018
• Energy Impacts of Smart Home Technologies
• Reducing Energy Use and Carbon Emissions by Replacing Oil and Propane Furnaces and Boilers with Heat Pumps
• Strategic energy management & smart manufacturing.
• Rural energy efficiency program best practices
• Exemplary energy efficiency programs and recognition
• Capturing energy efficiency’s role in maintaining electric system reliability
• Utility-Electric Vehicle (EV) convening and working group
The top convener in energy efficiency.
aceee.org/conferences
Upcoming ACEEE Conferences
ACEEE SUMMER STUDY ON ENERGY EFFICIENCY IN BUILDINGS
AUGUST 12-17, 2018 PACIFIC GROVE, CA
ACEEE RURAL CONFERENCE OCTOBER 22, 2018 ATLANTA, GA
CONFERENCE ON HEALTH, ENVIRONMENT AND ENERGY DECEMBER 3-5, 2018 NEW ORLEANS, LA
Thank You!Maggie Molina, Senior Director for Policy, 202-507-4004 or [email protected]
18
Big Things Ahead for Residential DR
Moderator: Melanie Gillette, Senior Policy Director, The CouncilBrad Davids, Head of Demand Response Partnerships, Nest LabsTyler Rogers, Director of Utility Sales, EnergyHubChris Carradine, Executive Vice President, Business Development, ecobeeDavid Schlosberg, Vice President, Energy Market Operations, eMotorWerks
2018 | Confidential and Proprietary
Winter demand response takes off with
SoCalGas
Incentive of up to $125 leads to more than 10K
enrollments for winter 2017 -- program evaluation
currently underway.
Rapid growth in thermostat-based load
management programs
Participation across Nest thermostat DR
programs increased by over 100% in 2017 -- this
pace of growth is expected to continue in 2018.
“On device” opt-in EE program delivers peak
demand reduction
Subtle on-peak setpoint shifts (0.6℉) deliver ~200 W per
thermostat; simple deployment results in deep
penetration across device population.
What’s new in residential DR?
THE HELPFUL HOME
Imagine a home that learns, listens,
anticipates and responds to your
every command.
No buttons. No clutter. No effort.
❖Provider of EV charging hardware, software and services
❖30,000+ EV charging stations sold worldwide
❖Acquired by Enel Group in 2017, part of Enel X
❖Engaged in residential DR since 2016
❖Managed charging = “V1G” = demand response
❖Flexible, controllable and fast enough for most any energy service
eMotorWerks: Smart Grid EV Charging
21
24
Efficiency Program Administrators Lightning Round
Moderator: Gene Rodrigues, Vice President, ICFErin Brooks, Regulatory Policy and Reporting Manager, SoCalGasMichael Bushey, Director, Customer Programs, Southern California EdisonMeghan Dewey, Sr. Mgr., Energy Efficiency Portfolio Management, PG&EMeaghan Doran, Manager, Customer Programs Operations, MCEDavid Jacot, Director, Efficiency Solutions, LADWP
Meaghan DoranManager, Customer Programs [email protected]
27
The Many Flavors of Pay-For-Performance
Moderator: Carmen Henrikson, Associate Vice President, TRCCarmen Best, Director of Policy & Emerging Markets, OpenEEJennifer Chamberlin, Executive Director of Market Development, CPowerAl Gaspari, PG&EGlenn Sansbury, Senior Client Manager, Hartford Steam BoilerJulia Szinai, Graduate Student Research Assistant, Berkeley Lab
Julia SzinaiGraduate Student ResearcherLawrence Berkeley National Laboratory
Jennifer ChamberlinExecutive Director of Market DevelopmentCPower
Al Gaspari, Jr.Manager, Residential & Transaction ServicesPacific Gas & Electric
Carmen BestDirector of Policy & Emerging MarketsOpen EE
Glenn SansburySenior Client ManagerHartford Steam Boiler
Putting Your Money Where Your Meter IsA Study of Pay-for-Performance Energy
Efficiency Programs in the U.S.
30
Julia SzinaiCEDMC Spring Symposium, April 26, 2018
Agenda• Defining P4P
• Motivation and background
• Lessons learned and recommendations from case studies
Download the Issue Brief and Report here:https://www.nrdc.org/resources/putting-your-money-where-your-meter
Defining Pay-for-Performance (P4P): Pay- and measure-as-you-go
• Most EE programs provide upfront rebates based on expected savings
• Instead, P4P programs track and reward energy savings as they occur
• Many payment and savings estimation approaches exist, but incentives are
usually paid based on buildings’ meter data
- Encourage continued savings
- Potentially more accurate savings estimate
- Lower risk of over-paying
- May not be appropriate for all sectors or buildings
- Can be more complex
- Does not help with upfront costs
Advantages Disadvantages
Why now? Aggressive EE and grid goals require more innovative approaches
• CA (SB350, AB802): Double state’s energy savings by 2030, emphasis on “measured” savings
• NY (REV): Focus on distributed energy resources (DER) such as EE, and on market-based approaches
Greentechmedia.com
Why now? Smart meter data and analytics may streamline estimation of savings
Widespread AMI, smart devices, and new software enable:• Automated M&V
• “EE meters” that normalize for weather, and other parameters such as occupancy, production process, etc.
State and Local Energy Efficiency Action Network. 2012.
Energy Consumption Before, During and After an EE Project is Implemented
Analysis of key elements and lessons learned from:• 21 case studies from late
1980s to present, across the U.S.
• 24 expert interviews
Taxonomy of P4P Features
Basic Design Features – Recommendations
Encourage deeper savings and avoid “cream-skimming”: • Minimum savings requirements• Tiered incentives• Requirements for multiple measures (early programs focused
mainly on lighting)
How Performance is Measured – Recommendations
To improve accuracy and certainty of savings estimates:• Screen out unpredictable buildings• Estimate for a portfolio of buildings• Backup savings estimation methodology
To streamline M&V and reduce costs:• Standardize and agree in advance on methods and
data
How Payment is Determined - Recommendations
To mitigate performance risk for customers, implementers, utilities, ratepayers:
• Milestones for installation + performance incentives
• Quality standards and insurance for EE projects
• Diversified portfolio of buildings
• Regular feedback on savings
Potential P4P Applications
• Wider range of EE projects, especially complex, interactive, multi-measure, whole-building efficiency projects
• EE as a verified energy or capacity resource
• Facilitate private market of competitive implementers, attract private financing capital
Pge.com
Key challenges to P4P implementation
• P4P not one-size fits all, most focus on commercial sector
• P4P may exist alongside other EE programs for same sector, must avoid double-counting
• Net-to-gross savings challenges still must be addressed
Thank You!
Download the Issue Brief and Report here:https://www.nrdc.org/resources/putting-your-money-where-your-meter
Report Primary Author:
Julia Szinai
PhD Student
Energy and Resources Group
UC Berkeley
Report Contributing Authors:
Merrian Borgeson
Senior Scientist, Energy Program
Natural Resources Defense Council
Emily Levin
Manager – Program Strategies
VT Energy Investment Corp.
802-540-7694
P4P and Demand Response
CEDMC Spring Symposium
Jennifer ChamberlinExecutive Director, Market Development
TYPES OF ENERGY PROGRAMS
Permanent Responsive
Energy Efficiency Co-generation Load Shifting
Capacity Ancillary Economic Utility Efficiency
Excessive Demand Loss of supply Price Initiated Local programs Monetizing ECMs
Demand ResponseHow DR Works
Demand Response: Reduces consumption at critical times or in response to energy high prices.
Curtailment
About Us
• Serve 1 IN 20
Americans
• 70,000 SQUARE-MILE
service area
• Provide energy
services
to 15 MILLION
NORTHERN
CALIFORNIANS
• 5.1 MILLION electric
customer accounts
• 4.3 MILLION natural
gas customer
accounts
• 22,000 EMPLOYEES
• Regulated
INVESTOR-OWNED
UTILITY
• 370,000 SMB
CUSTOMERS
Normalized
Metered
Energy
Consumption
Is a Means To
Streamline and
Scale EE to Double
Energy Efficiency in
California
“The energy efficiency savings and demand reduction ….
achieving the targets established pursuant to paragraph
(doubling of EE by 2030) shall be measured taking into
consideration the overall reduction in normalized
metered electricity and natural gas consumption
where these measurement techniques are feasible and
cost effective.” – SB 350
Pay-for-Performance, NWAs, Electrification:
Business
Models
Grid
Resource
DEMAND CAPACITY
Savings Comfort Health
AGGREGATORS
Services and
Products
Consumer
Finance
Project
Finance
Sales and
Marketing
Contractor
Management
Contractor
Load Serving Entity
Private Capital Performance risk
Insurance
Efficiency
Businesses
Meter-Based
Pay for
Performance
Transaction
Structure
Utility
Platform
Project Finance Insurance
Aggregator
Channel
Buildings
Metered Efficiency Performance Insurance
● Performance insurance enhanced with monitoring, verification and
analysis of aggregated performance
● Supports meter based pay-for-performance efficiency markets
derisking upfront investment to encourage greater participation by
aggregators
● Portfolio-level coverage of efficiency projects, rather than individual
assets to enable cash flow
Hartford Steam Boiler Inspection and Insurance Co.
Company Background
Steam is king in the
industrial revolution –
but explosions are
common.
Fire Insurance carriers
stop covering boilers.
HSB formed in 1866 to
address the exposure.
Today: we insure all
kinds of machinery &
equipment.
An engineering based
insurance Co.
5/1/2018 54© 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Performance Guarantee Insurance
If it consumes, transmits, or generates energy we insure it.
Since we know energy well we feel capable of designing insurance products that
guarantee energy production or reduction (energy savings).
Solar Shortfall coverage
Guaranteed cogeneration production.
Energy Efficiency Insurance – guaranteeing energy savings
Started offering four years ago
Target market: mid-sized ESCOs looking to compete against larger companies
Offering credibility to their performance guarantee / protecting their balance
sheet
5/1/2018 55© 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
From individual projects to portfolios
From Adhoc projects to retrofits of a target class / standard approach
Rather than our engineers reviewing discrete engineering calculations for an
individual project we’re underwriting a repeatable process.
One underwriting – many projects – more efficient/ less expense
The next progression was insuring results in the aggregate.
Good for us (eliminates small claims / reduces our risk)
Good for them (protects their balance sheet)
Pay for Performance (the next stage) – An Aggregator controlling many installers,
the portfolios are much larger, further smoothing results/ reducing risk
Underwriting a model of predicted energy savings
5/1/2018 56© 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Performance Guarantee Insurance
Supports Project Finance
Project finance – lending based the project’s projected future revenues, not on
the credit worthiness of the borrower.
The risk – the actual revenues won’t cover the debt service
Performance Guarantee Insurance eliminates that risk
More attractive to more lenders/investors
Reduced risk = credit enhancement
Pay for Performance - the Aggregator’s projected revenues from the utility
5/1/2018 57© 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
We’re doing this now!
Backing by HSB is a
good sign – good PR.
Financial assurance
can make all the
difference.
Big data, analytics, are
making the model’s
more reliable (back
casting, model
calibration).
P4P is efficient for us
too.
Actively Engaged on Several P4P deals
5/1/2018 58© 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Thanks for your attention.
Glenn Sansbury
Senior Client Manager
The Hartford Steam Boiler Inspection & Insurance Co.
Tel. 360-225-1384
eMail: [email protected]
© 2018 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. CONFIDENTIAL 59
60
How to Procure EE like a Grid Resource
Moderator: Michelle Vigen, Senior Policy Manager, The CouncilMarc Monbouquette, Senior Regulatory Analyst, CPUCRichard T. Sperberg, President, Onsite EnergyElizabeth Stuart, Electricity Markets and Policy Group, Energy Analysis and Environmental Impacts Department, LBNLDanny Waggoner, Senior Manager, Regulatory Transformation, Advanced Energy EconomyPaul Whitelaw, Senior VP of Business Development, Willdan Group, Inc.
61
Lessons Learned: Observations from 35+ years in the trenches
Margie Gardner, Executive Director, The Council
1983: A mixed reaction from NW utilities to “conservation” –
Pay customers to buy less of our product – huh?
slide 62
2018: Extensive SUCCESS in CA
• Efficiency has avoided at least 30 large power plants since the 1970s
• EE met about 1/5 of CA electricity need in 2013
• EE programs saved $12 billion after costs 2003-
2013; Codes and Standards saved $75 billionsince 1970s
• Took equivalent of 6 million cars worth of CO2 emissions off the road
From NRDC, 2015
‘You’d better mess with the legislature, cause they’re definitely gonna
mess with you’ Loose quote from Senator DeLeon
And visible to CAISO, CPUC, CECEE is 23% of new resources in the Integrated Resource Plan and wasn’t shown in the draft graph…. But it’s in the final!
You can make a difference!• Double energy savings
• Reduce GHGs
• Lower cost for all
The “take action” Model:
“Destiny is not a matter of chance, but of choice. Not something to wish for, but to attain.”
William Jennings Bryan