3 Year Plans for Energy Efficiency:
lessons learned and forging forward
Christina Halfpenny
Director, Energy Efficiency Division
www.mass.gov/doer
Creating A Cleaner Energy Future For the Commonwealth
Milestones
Green Communities Act (GCA)
Electric and natural gas resource needs shall first be met through
all available, cost-
effective energy efficiency and demand reduction resources
Energy Efficiency Advisory Council
11 voting members, includes AG, DEP, DOER as Chair
Program Administrators as non voting Councilors
Stakeholders: business groups, unions, environmental groups, consumer advocates
Council consultants provide 3rd party expertise and review
Statewide programs
Integrated gas & electric programs
8 unique Program Administrators collaborating
Streamlining processes, reducing costs
Single efficiency brand and marketing
Statewide Evaluation, Verification and Monitoring practice
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Creating A Cleaner Energy Future For the Commonwealth
Accomplishments
ACEEE Ranking #1 for Energy Efficiency
2010: 99% electric savings
83% gas savings
2011: 91% electric savings
84% gas savings
ISO- NE EE Forecasting Model
Creating A Cleaner Energy Future For the Commonwealth
Rise in Efficiency Efforts
Savings as a % of annual retail sales
2.50%
2.32%
Electric
Gas
2.00%
1.74%
1.50%
1.30%
1.05%
1.00%
0.92%
0.69%
0.50%
0.46%
0.52%
2009 Report
2010 Report
0.00%
2011 Year End
2012 MTM
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Creating A Cleaner Energy Future For the Commonwealth
Costs of Increasing Efficiency Efforts
Plan $/kWh
0.6
0.5
0.4
0.3
Plan $/kWh
0.2
0.1
0
2009
Plan
$/kWh
Actual
$/kWh
2010
2011
2010
2011
2012
$279
$453
$551
$0.447
$0.454
$0.447
$236
$275
$0.38
$0.33
2012
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Creating A Cleaner Energy Future For the Commonwealth
Costs of Increasing Efficiency Efforts
Plan $/kWh
0.6
0.5
0.4
Plan $/kWh
0.3
Actual $/kWh
0.2
0.1
0
2009
Plan
$/kWh
Actual
$/kWh
2010
2011
2010
2011
2012
$279
$453
$551
$0.447
$0.454
$0.447
$236
$275
$0.38
$0.33
2012
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Creating A Cleaner Energy Future For the Commonwealth
Critical Sectors for Savings
1,400,000
Electric Program Savings MWh
1,200,000
Lg Retrofit
1,000,000
800,000
600,000
400,000
Resi
Lighting
Resi
Retrofit
200,000
C&I NC
Sm
Retrofit
Resi NC
-
18000000
16000000
Lg Retrofit
Gas Program Savings Therms
14000000
12000000
10000000
Behavior
8000000
Resi
WZ
6000000
4000000
7
2000000
0
C&I NC
HEHE
Resi NC
MF
Retrofit
Creating A Cleaner Energy Future For the Commonwealth
Developing the Next 3 Year Plans
Stakeholder engagement in 3 year plans 2013-2015
Council Priorities 2012
Market opportunity assessment - PAs
Economic assessment and C&I surveys - Council
EM&V review
Best Practices Review
EEAC Consultant Recommendations
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Creating A Cleaner Energy Future For the Commonwealth
High Potential
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Creating A Cleaner Energy Future For the Commonwealth
Stakeholder Feedback
January Council Meeting – Public Comment
• Commercial Real estate
• Healthcare
• Community groups – customer equity
• Labor Group – data accessibility
• Consumer Advocates – multi family,
customer equity
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Creating A Cleaner Energy Future For the Commonwealth
Program Barriers to Address
Commercial
1. marketing and outreach
2. transaction costs
3. responsiveness and timing
4. limited measure offers
5. insufficient incentives
6. programs not tailored to unique needs
Residential
1. tenant landlord – Multi family
2. hard to reach/hard to serve: lower income, language,
elderly
3. going deeper
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Creating A Cleaner Energy Future For the Commonwealth
Consultant Recommendations
Annual Savings Assessment of Potential
(% of Retail Sales)
(% of Retail Sales)
Electric
Gas
2013: 2.5%
2.40%
2014: 2.6%
(without CHP, codes and standards
attribution, or early retirement retrofit)
2015: 2.7%
to 3.5%
2013: 1.3%
2014: 1.5%
2015: 1.7%
1.4% to 6.5%
Between 1,100 and 1,300 GWh for electric
Between 29 and 38 MMtherms
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Creating A Cleaner Energy Future For the Commonwealth
Cost Estimates
$.35/kWh
ELECTRIC
Deeper Savings
Comprehensive
Investment in Future
Harder to
Reach/Serve
Lower cost
initiatives , lighting,
upstream, behavior
$5.50/therm
$.42/kWh
GAS
$6.35/therm
How do we achieve all cost effective energy efficiency?
Creating A Cleaner Energy Future For the Commonwealth
Achieving All Cost Effective EE
• Requires good data
Good data collection processes
• Effective marketing and outreach
• Customized approaches to customers, including
financial incentives
• Accounting for naturally occurring energy efficiency
• High efficiency codes and standards (and
compliance)
• Building labeling pilots underway through DOER
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Creating A Cleaner Energy Future For the Commonwealth
Next steps to 2013-2015 Plans
•
•
•
•
April Draft plans
May Appreciative Inquiry
June Response to Draft plans
October 30 in statute for submittal of 3 year
plans
• 90 day review by the DPU
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Creating A Cleaner Energy Future For the Commonwealth
Thank you!
Christina Halfpenny
Director, Energy Efficiency Division
christina.halfpenny@state.ma.us
www.mass.gov/doer
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Creating A Cleaner Energy Future For the Commonwealth