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TRANSCRIPT
Transforming Utility Energy Efficiency Strategies Through
Regulatory Opportunities
April 3, 2017
Vicki Kuo
ACEEE
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Our Industry is Changing
Source: shuttstock via inhabitat.com
From a Traditional Model
To a Cleaner and Sustainable Model
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New York State: 50% Renewable by 2030
Source: Flickr
Energy Efficiency Assumed in NYS Renewable Goal
vs Current EE Efforts
Source: CES whitepaper; Con Edison analysis
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5
10
15
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25
30
35
40
'17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30
TWh Energy Efficiency
Required EE
Current EE Levels
Significant Energy Efficiency Required
Delivering Policy Objectives
-
100,000
200,000
300,000
400,000
500,000
600,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
We will double energy efficiency savings over three years
Energy Efficiency Savings (MWh)
Innovation Through Performance Incentives
• 5 Earnings Adjustment Mechanisms (EAMs):
EAMs
MWh MW DER
Utilization Customer
Load Factor Energy Intensity
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Enhancing Customer Experience
Source: Business Insider
Meeting Operational Needs with Energy Efficiency
10 Time
Load
Infrastructure
Capacity
Upgraded Infrastructure Capacity
Load Forecast
• Traditional distribution engineering approach: build capacity
based on forecast
Infrastructure
Capacity
• Non-wires alternative (NWA) approach: lower forecast
through customer energy efficiency to defer upgrade
Meeting Operational Needs with Energy Efficiency
11 Time
Load
Upgraded Infrastructure Capacity
Load Forecast
Load Forecast
with EE
Deferral
Infrastructure
Capacity
• NWA BONUS: Deferral yields flexibility in face of potentially
changing forecasts
Meeting Operational Needs with Energy Efficiency
12 Time
Load
Upgraded Infrastructure Capacity
Load Forecast
Load Forecast
with EE
Deferral
Updated Load
Forecast with EE
Additional Deferral
Thank You!
Appendix
Incentive Mechanics
Incentive Metric Achievement
Incentive
Payout
Minimum
Threshold Target
Maximum
Threshold
Minimum
Target
Maximum
No payment
under threshold
Incentive payment
increases with higher
performance
Incentive payment max – additional
performance not rewarded
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• DER Utilization promotes the penetration of DERs
• Measured in MWh (based on standard capacity factors)
Understanding the Incentives
DER Utilization
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Technology Measurement
Solar PV Production
CHP Production
Fuel Cell Production
Battery Storage Discharge and Consumption
Demand Response Reduction
Thermal Storage Consumption
Heat Pump Consumption
Electric Vehicles Consumption
Understanding the Incentives
Customer Load Factor
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𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝐿𝑜𝑎𝑑 𝐹𝑎𝑐𝑡𝑜𝑟 = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝐿𝑜𝑎𝑑 (𝑀𝑊)
𝑃𝑒𝑎𝑘 𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝐿𝑜𝑎𝑑 (𝑀𝑊)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Ener
gy U
sage
(kW
)
Hour of Day
Peak Customer Load
Average Customer Load
Understanding the Incentives
Energy Intensity
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Energy Intensity
Residential
Commercial
= 𝑅𝑒𝑠𝑖𝑑𝑒𝑛𝑡𝑖𝑎𝑙 𝑘𝑊ℎ 𝑆𝑎𝑙𝑒𝑠
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑅𝑒𝑠𝑖𝑑𝑒𝑛𝑡𝑖𝑎𝑙 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠
= 𝐶𝑜𝑚𝑚𝑒𝑟𝑐𝑖𝑎𝑙 𝑘𝑊ℎ 𝑆𝑎𝑙𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑖𝑣𝑎𝑡𝑒 𝐸𝑚𝑝𝑙𝑜𝑦𝑚𝑒𝑛𝑡