Potential for Energy Efficiency in the Power Sector and Role of ...

edisonfoundation.net

Potential for Energy Efficiency in the Power Sector and Role of ...

Potential for Energy Efficiency in the Power Sector

and Role of Institute for Electric Efficiency

Lisa Wood

Executive Director

January, 2009


Institute for Electric Efficiency

• Mission

– To advance energy efficiency practices and demand response

among electric utilities

Role of IEE

– Provide resources/share information and best

practices/clearinghouse/discussion groups

– Identify key issues & barriers/enablers

– Collaborate with power industry and advisory committee to

advance EE

• Funding

– IEE member electric utilities. Launched in 2008.

2


IEE Governance

• Management committee of 17 CEOs of investor-owned

utilities

– Chair, Jim Rogers, President & CEO, Duke Energy

• Advisory committee of leading energy efficiency advocacy

organizations and policy makers

– ASE, ACEEE, CEE, DRAM, EPRI, NRDC, NARUC, NASUCA,

RMI, Sierra Club

– DOE, EPA, FERC

• Strategy committee of VPs overseeing energy efficiency

in electric utilities

3


Power industry challenges

• Rising demand

• Rising construction costs

• Rising fuel costs

• Shrinking generation reserve margins

• Climate change

• Difficult lending environments

4


Non-Coincident Peak Demand (GW)

Electricity usage (TWh) and summer peak

demand (GW) forecast (EIA)

TWh

5,000

4,500

4,000

Reference Electricity Forecast

Industrial

Commercial

Residential

Reference Summer Peak Demand Forecast

1,400

Industrial

Commercial

1,200

Residential

3,500

3,000

1,000

800

2,500

2,000

600

1,500

400

1,000

500

200

-

2008 2010 2020 2030

-

2008 2010 2020 2030

5


Energy efficiency is fundamental to the

power business – 1 st fuel!

• EE and DR are cost-effective ways to:

– Reduce carbon emissions,

– Significantly moderate expected growth in electricity

• EE programs can offset about 1/3 of expected growth in

electricity usage, and

• EE and DR programs can offset about 50% of expected

growth in summer peak demand between 2008 and 2030.

• EE and DR help customers manage electricity usage

Source: EE and DR potential estimates based on, Assessment of Achievable Potential for Energy

Efficiency and Demand Response in the U.S., EPRI Report No. 1016987. January 2009.


$Billions

Utility spending on energy efficiency is

increasing significantly in the U.S. (EIA)

$3.0

Total Utility Spending on EE & LM (2000 - 2007)

Source: EIA Form 861

$2.5

$2.0

$1.5

$1.0

$0.5

$0.0

2000 2001 2002 2003 2004 2005 2006 2007

7


Usage forecast - baseline vs. realistically achievable

potential. EE programs can achieve 398 TWh of

savings by 2030 (EPRI report)

Annual Electricity Use (TWh)

5,000

4,500

Baseline Forecast

Realistic Achievable Potential

Maximum Achievable Potential

398 TWh

savings

in 2030

Actual

4,000

3,500

3,000

2,500

1990 1995 2000 2005 2010 2015 2020 2025 2030

8


TWh

EE savings potential of 398 TWh in 2030 (realistically

achievable - EPRI) vs. actual 67 TWh in 2007 (EIA)

Total TWh Savings Due to Energy Efficiency

400

350

398 TWh

300

250

200

150

207 TWh

100

50

0

67 TWh

2007 2020 2030

Actual Realistically Achievable Potential (EPRI, 2009)

9


Percent of Total Load

Energy efficiency programs can save 398 TWh or 8%

of U.S. electricity usage in 2030

12%

11.2%

10%

8%

6%

10.1%

8.2%

8.2% achievable

reduction from

baseline

4%

4.8%

2%

2.1%

0%

Maximum

Achievable Potential

0.5%

Realistic Achievable

Potential

2010

2020

2030

10


Residential

Commercial

Industrial

Top “3” end uses for EE savings potential (EPRI

report)

Electronics

Cooling

2030

2020

2010

Appliances

Lighting

Other

Cooling

Machine Drive

Lighting

HVAC

0 20 40 60 80 100

Annual Electricity Savings (TWh)

11


Peak demand forecast – baseline vs. realistically

achievable potential. EE and DR programs can

achieve 157 GW of savings by 2030 (EPRI report)

Non-Coincident Summer Peak Demand (GW)

1,200

1,000

Baseline

Realistic Achievable Potential

Maximum Achievable Potential

Actual

157 GW

savings

in 2030

800

600

400

200

-

1986 1990 1994 1998 2002 2006 2010 2014 2018 2022 2026 2030

12


GW

EE and DR GW savings potential of 157 GW in 2030

(realistically achievable - EPRI) vs. actual 30 GW in 2007 (EIA)

Total Peak Load Reduction due to EE and DR

160

140

120

157 GW

100

80

60

79 GW

40

20

0

30 GW

2007 2020 2030

Actual Realistically Achievable Potential (EPRI, 2009)

13


Percent of Summer Peak Demand

EE and DR programs together can save 157 GW or 14% of U.S.

summer peak demand (GW) in 2030 – half EE and half DR

20%

18%

16%

19.5%

14%

12%

10%

15.3%

14.0%

8%

6%

8.2%

4%

2%

0%

4.9%

2.2%

2020

2030

Maximum Achievable

Potential

Realistic Achievable

Potential

2010

14


Portfolio of sources for peak demand

savings (EPRI report)

Price-Response

DLC-Water Heating

DLC-Central AC

2030

2020

2010

Commercial Industrial Residential

Price-Response

Interruptible Demand

DLC-Process

Price-Response

Interruptible Demand

DLC-Other

Direct Control-Lighting

DLC-Cooling

- 5,000 10,000 15,000 20,000 25,000

Cumulative Summer Peak Demand Savings (MW)

15


IEE focus: Key issues surrounding significant

growth in EE and DR nationwide

1. Making EE scalable and sustainable

– Regulatory framework for EE business (e.g., cost recovery,

incentives, disincentives).

– Range of best practices – one size does not fit all

– Measurement and verification of EE savings

– Interface between EE programs and codes & standards

– Well defined roles for utilities vs. 3 rd party administrators

2. Utilizing all sources for peak demand reduction

– Price response, direct load control, & interruptible programs

– AMI/dynamic pricing rollout to mass market critical component

3. Effective programs for low income customers

16


Institute for Electric Efficiency – role,

focus, vision

• Educate

• Communicate

• Collaborate with advisory committee members

• Advance EE practices and demand response in

power sector

• Work with utilities in leading EE

17


IEE website –

www.edisonfoundation.net/IEE

IEE

website

18


For more information, contact:

Lisa Wood

Executive Director

lwood@edisonfoundation.net

202.508.5550

Institute for Electric Efficiency

701 Pennsylvania Ave., N.W.

Washington, D.C. 20004-2696

http://www.edisonfoundation.net/IEE

19

More magazines by this user
Similar magazines