commercial & industrial energy efficiency in arkansas

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Commercial & Industrial Energy Efficiency in Arkansas Presented by Evan Bowers

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Page 1: Commercial & Industrial Energy Efficiency in Arkansas

Commercial & Industrial

Energy Efficiency in Arkansas

Presented by Evan Bowers

Page 2: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 2

Special Thanks to our case study

providers

Page 3: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 3

Agenda

History of C&I Programs in Arkansas

Key Data and Statistics

Program structure and benefits

Case Studies

Page 4: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 4

Arkansas17th highest in energy consumption per capita

4th highest number of industrial electric customers in the nation

Page 5: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 5

Arkansas Energy Consumption by

End-Use Sector

Residential22%

Commercial16%

Industrial37%

Transportation25%

Page 6: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 6

In 2010, under Docket No. 08-144-U, the

Arkansas Public Service Commission

(APSC) developed the Sustainable Energy

Resources Action Guide:

“[d]efining and requiring comprehensive energy

efficiency programs that meet high standards that

will help both customers and public utilities save

money by saving energy.”

Page 7: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 7

Arkansas Investor-Owned Utilities

Page 8: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 8

Natural Gas Utilities Service Area

Page 9: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 9

Electric Utilities Service Area

Entergy Arkansas

AEP SWEPCO

OG&E

Page 10: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 10

Annual Electric Consumption

2,000,000

12,000,000

22,000,000

32,000,000

2000 2008 2013

Electric C&I Sales (MWh)

Industrial Sales Commercial Sales Total Sales

Page 11: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 11

Annual Natural Gas Consumption

-

40,000

80,000

120,000

160,000

200,0002

00

0

2008

201

3

Natural Gas Comsumption in MMCF

Commercial Industrial Total Consumption

Page 12: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 12

Natural Gas Program Highlights

Prescriptive and Custom Programs

$0.80 per therm saved (custom programs)

Incentives can be used to pay up to 100% of project cost

Direct Install Program

Technical and engineering assistance

Trade Ally network

Page 13: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 13

Electric Program Highlights

Incentives – by demand or energy differ by utility

Incentive assignment to contractors option

Direct Install Program

Technical and engineering assistance

Trade Ally Network

Co funding of feasibility studies

Page 14: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 14

Large C&I Program measure mix

Page 15: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 15

In 2014, the Arkansas Commercial

and Industrial programs budgeted

$22MM of incentives on projects

that will save 150 million kWh and

5 million therms per year

Approximate, based on 2014 Annual filed data

Page 16: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 16

The electric C&I Programs have saved a cumulative

450,000 MWh since 2010

Page 17: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 17

The Arkansas C&I Programs have

also achieved a demand reduction

of 59 MW since 2012

Page 18: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 18

The gas C&I programs have saved a cumulative

6.5MM therms (652,000 MMBtu) since 2011

-

1,000,000

2,000,000

3,000,000

2,011 2,012 2,013 2,014

Annual Natural Gas Savings (Therms)

Page 19: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 19

Program Challenges

Low utility rates

Self-direct option

Changing baselines – TRM is retroactive

Building Codes

Page 20: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 20

-25 -20 -15 -10 -5 0

Electricity - Residential

Electricity - Commercial

Electricity - Industrial

Percent

AR Price Differences from U.S. Average

Page 21: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 21

Self Direct Option

• Some customers eligible to “opt out” and

choose self direct option

• Approximately 31% of industrial electric sales

in self-direct option

Page 22: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 22

Building Automation

Lighting

Compressed Air

Dual Fuel Savings

Page 23: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 23

Hiland Diary Case Study

Page 24: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 24

Hiland Dairy Case Study

Refrigeration Upgrades

Lighting Retrofits

Process Heat Recovery

Compressed Air

2,291,152 kWh/yr Savings

314 kW Demand Reduction

33,000 Therms/yr of NG

Savings

$443,000 in incentives

Page 25: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 25

Measures:

Compressed Air

Process Cooling Upgrades

HVAC Replacements

Lighting Retrofits

Page 26: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 26

Questions?

Page 27: Commercial & Industrial Energy Efficiency in Arkansas

© 2015 CLEAResult. All rights reserved. 27

Thank you

Evan Bowers

Energy Engineer III

[email protected]