US Energy Efficiency Policy Steven Nadel American Council for an Energy- Efficient Economy (ACEEE) May 2017
American Council for an Energy-Efficient Economy Non-profit research organization Founded in 1980 Now have 55 staff and $8.5 million/year budget Funding comes from foundations, government agencies, contracts, conferences and corporate memberships
U.S. Energy Use Since 1980 2014 EE savings ~$2500/capita Source: ACEEE, EE in US, 2015
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Index, 1980 = 100 Electricity Use Flat Recently 300 250 TWh Bil $2009 200 150 100 50 0 Source: ACEEE analysis of data in EIA Monthly Energy Review (2016 from other EIA and BEA sources and is preliminary) 4
International Scorecard
In the electricity sector, efficiency is now US s 3 rd largest resource Source: ACEEE 2016. Greatest Energy Story You Haven t 6 Heard. http://aceee.org/research-report/u1604
and could become US s largest resource by 2030 Source: ACEEE 2016. Greatest Energy Story You Haven t 7 Heard. http://aceee.org/research-report/u1604
Source: ACEEE 2016. Greatest Energy Story You Haven t Heard. http://aceee.org/research-report/u1604 8
Building Code Revisions in the U.S. Source: ACEEE using DOE data.
National Electricity Savings from Standards Source: ACEEE & ASAP, Energy Boom.
Products Covered by Federal Equipment Efficiency Standards NAECA 1987/1988 EPAct 1992 EPAct 2005 EISA 2007 Refrigerator-freezers Fluorescent lamps Ceiling fans & light kits Incandescent lamps Freezers Incandescent reflector lamps Dehumidifiers Additional motors (e.g., large) Room (& portable) AC Electric motors (1-200 hp) Compact fluorescent lamps Walk-in coolers & freezers Central AC & heat pumps Comm'l air-source AC & HP Torchiere lighting fixtures Metal halide lighting fixtures Furnaces & boilers Water source heat pumps Large commercial AC & HP External power supplies Water heaters Packaged terminal AC & HP Commercial clothes washers Furnace fans Clothes washers Commercial furnaces/boilers Distribution transformers Clothes dryers Commercial water heaters Exit signs Dishwashers Showerheads Commercial ice makers DOE Initiated 2016-2017 Ranges & ovens Faucets Comm'l refrigerators/freezers Microwave ovens Toilets & urinals Mercury vapor lamp ballasts Comm'l & industrial pumps Direct-fired space heaters Small electric motors Traffic signals Pool pumps* Pool heaters Pre-rinse spray valves Air compressors* Fluorescent lamp ballasts Commercial unit heaters Battery chargers (& UPS*) * Not yet completed Large comm'l refrigeration Vending machines
Billion kwh Savings from Utility-Sector Energy Efficiency Programs 250 200 5.4% of sales in 2015 150 Incremental Annual Savings 100 Total Annual Savings 50 0 0.7% in 2015 Source: ACEEE using EIA Form 861 data.
Levelized Electricity Resource Costs
Total Savings in 2006 from Utility Efficiency Programs Source: ACEEE
Total Savings in 2015 from Utility Efficiency Programs Source: ACEEE
Results by State Electric Average Percent 2015 Estim ated State Target Covered Achieved 2020 Rhode Island 2.6% 99% 2.91% 21.3% Massachusetts 2.9% 86% 2.74% 21.9% Vermont 2.1% 100% 2.01% 19.6% California 1.2% 78% 1.95% 12.6% Maine 2.4% 100% 1.53% 15.9% Haw aii 1.4% 100% 1.52% 13.4% Connecticut 1.5% 93% 1.48% 13.2% Arizona 2.5% 56% 1.19% 17.4% Source: ACEEE analysis for forthcoming ECEEE paper Michigan 1.0% 100% 1.16% 8.9% Minnesota 1.5% 100% 1.15% 12.2% Illinois 0.7% 89% 1.13% 11.2% Oregon 1.3% 69% 1.09% 11.1% Washington 1.5% 81% 1.06% 11.8% New York 0.7% 100% 1.05% 6.9% Maryland 2.0% 100% 1.01% 12.5% Iow a 1.2% 74% 1.00% 10.6%
Electric Energy Efficiency Targets (26 states) As of January 2017
Impact of EERS (2015 data) Policy No EERS Yes EERS Average EE No. of states investments as % of revenues* Average EE savings as % of sales* 24 0.7 0.3 26 2.6 1.2 Source: ACEEE.
Gas Energy Efficiency Targets 17 states
Business Model for Electric Utilities Total of 32 states Source: ACEEE
Average Cost of Saved Energy and Energy Savings as a % of Retail Sales for Major Utility Programs Source: ACEEE, Big Savers, 2016. http://aceee.org/research-report/u1601
EERS in the U.S. Obligation generally placed on distribution companies Targets are most commonly for net annual incremental savings as a % of retail sales Generally substantial evaluation to verify savings and guide deemed savings values
Cost per kwh Saved of U.S. Demand-Side Bidding and Standard Performance Contracting Programs Source: LBL
Key Lessons About Utility EE Pay attention to the business case for utilities cost recovery, lost revenues/decoupling, return on investment/shareholder incentives Savings targets very helpful set by legislators or regulators Consult with stakeholders and build support Have programs for all major customer classes everyone can participate Show how programs save all ratepayers money Set eligibility levels that keep free riders to modest levels Start gradually (e.g. quick-start programs ) and ramp up over time
Other Key US Efficiency Policies Energy Star including Home Performance Weatherization Assistance Program State Energy Program Strategic energy management efforts PACE and on-bill financing Federal tax credits new construction, residential retrofit measures Energy Saving Performance Contracts Federal RD&D Local benchmarking & disclosure
Regional Energy Efficiency Organizations
Electricity Scenarios for New England Source: ACEEE, Electricity Scenarios for New England
Strategies to Cut Energy Use in Half (all fuels) Reducing power plant heat rates, 3.3% Reducing freight transport energy use, 4.5% Reducing passenger vehicle miles traveled, 5.5% Behavior change in buildings, 2.7% Improving aviation efficiency, 3.0% CVR & reducing T&D losses, 2.4% Combined heat and power systems, 1.2% Industrial efficiency improvements, 20.8% Intelligent buildings and homes, 7.6% Zero net energy buildings and homes, 12.9% Home and building retrofits, 11.1% Appliance and equipment efficiency, 12.4% Light & heavy duty vehicle fuel economy, 12.6% Source: ACEEE, Cutting Energy Use in Half, 2016.
Contact Information Steven Nadel snadel@aceee.org 202-507-4011