transforming utility energy efficiency strategies through ...€¦ · energy efficiency assumed in...
TRANSCRIPT
![Page 1: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/1.jpg)
Transforming Utility Energy Efficiency Strategies Through
Regulatory Opportunities
April 3, 2017
Vicki Kuo
ACEEE
1
![Page 2: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/2.jpg)
2
Our Industry is Changing
Source: shuttstock via inhabitat.com
![Page 3: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/3.jpg)
From a Traditional Model
![Page 4: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/4.jpg)
To a Cleaner and Sustainable Model
![Page 5: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/5.jpg)
5
New York State: 50% Renewable by 2030
Source: Flickr
![Page 6: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/6.jpg)
Energy Efficiency Assumed in NYS Renewable Goal
vs Current EE Efforts
Source: CES whitepaper; Con Edison analysis
0
5
10
15
20
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
![Page 7: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/7.jpg)
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)
![Page 8: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/8.jpg)
Innovation Through Performance Incentives
• 5 Earnings Adjustment Mechanisms (EAMs):
EAMs
MWh MW DER
Utilization Customer
Load Factor Energy Intensity
![Page 9: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/9.jpg)
9
Enhancing Customer Experience
Source: Business Insider
![Page 10: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/10.jpg)
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
![Page 11: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/11.jpg)
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
![Page 12: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/12.jpg)
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
![Page 13: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/13.jpg)
Thank You!
![Page 14: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/14.jpg)
Appendix
![Page 15: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/15.jpg)
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
1
2
3
![Page 16: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/16.jpg)
• DER Utilization promotes the penetration of DERs
• Measured in MWh (based on standard capacity factors)
Understanding the Incentives
DER Utilization
16
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
![Page 17: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/17.jpg)
Understanding the Incentives
Customer Load Factor
17
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
![Page 18: Transforming Utility Energy Efficiency Strategies Through ...€¦ · Energy Efficiency Assumed in NYS Renewable Goal vs Current EE Efforts Source: CES whitepaper; Con Edison analysis](https://reader034.vdocuments.mx/reader034/viewer/2022042712/5f922acee3e8561509117c0c/html5/thumbnails/18.jpg)
Understanding the Incentives
Energy Intensity
18
Energy Intensity
Residential
Commercial
= 𝑅𝑒𝑠𝑖𝑑𝑒𝑛𝑡𝑖𝑎𝑙 𝑘𝑊ℎ 𝑆𝑎𝑙𝑒𝑠
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑅𝑒𝑠𝑖𝑑𝑒𝑛𝑡𝑖𝑎𝑙 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠
= 𝐶𝑜𝑚𝑚𝑒𝑟𝑐𝑖𝑎𝑙 𝑘𝑊ℎ 𝑆𝑎𝑙𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑖𝑣𝑎𝑡𝑒 𝐸𝑚𝑝𝑙𝑜𝑦𝑚𝑒𝑛𝑡