Strategic Opportunities in Commercial Energy ... amazonaws com
Delivering on the promise of Efficiency –
Strategic Opportunities in Commercial Energy Efficiency
Harvey Michaels Director, MIT Energy Efficiency Strategy Project
617-253-2084 [email protected] Instructor: Enabling an Energy Efficient Society Presented to: NE Environmental Business Council June 29, 2011
John Sterman’s Carbon Bathtub It’s simple, really:
As long as we pour CO2 into the atmosphere faster than nature drains it out, the planet warms.
And that extra carbon takes a long time to drain out of the tub.
Ron Prinn
To keep climate change manageable, by 2050 We need to reduce US Carbon pp from 5.5 tons/yr to < 1 ton/yr ENORMOUS EFFORT:
Richard Lester
Capture all carbon from all coal plants (to date 0).
Triple coal and gas plants, also with all carbon captured.
2/3 of all cars/trucks all-electric, rest adv. biofuels.
In units of 1000 MW (a typical nuke) by 2050 we need: –
1200 wind (last year 8)
–
1400 solar (last year .3)
–
500 nuclear (last 20 years 0)
LAY-UP: Improve energy efficiency by 3% per year.
MIT Energy Efficiency Strategy Project
How will we Enable Energy Efficiency? US Buildings consume 71% of all electricity, 55% of all natural gas Goal: 30% efficiency achievable by 2030 with 4 Deployment options: 70,000
Codes and Standards: Data and intelligence-driven : New Business Models:
sticks information innovation
Growth Rate 1.0%
MA Net Energy for Load (GWh)
Public funding models, utilities: carrots
MA EE Electric Savings: What is Possible?
65,000
Recent years: about 0.8% savings per year
0.2%
60,000
2% savings per year -1.0%
55,000
50,000
Acquiring all available cost-effective electric energy efficiency as set forth in the Green Communities Act (GCA) would likely require an annual energy savings level of about 2.5% per year, or about three times the energy savings levels in past years.
3% savings per year
-2.0% 45,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ISO Base Forecast (No EE)
MA EE Programs (recent)
MA EE Programs (2%)
Transforming the nation’s consumers: Good energy decisions (ie lower discount rates) change everything.
MA EE Programs (3%)
Envision Charlotte – Smart Energy Now 5 year 20% energy savings goal Downtown-wide data displayed to public on touch screens in building lobbies Meter-level information for owners and staff
“Efficiency Forward: Partnering for Success”
In May 2010, MIT and NSTAR announced a three year, collaborative energy efficiency program.
The program will invest over $13M over three years saving 34 mm kwH.
Mix of funds from MIT, NSTAR incentive payments, and reinvestment of energy savings.
In January 2011, surpassed its first year goal of achieving 10 million kWh of energy savings.
MIT/NSTAR Efficiency Forward $ Incentive & Expertise (NSTAR)
EE Measures (MIT)
Capital Investment (MIT)
Energy Cost Savings (MIT)
Discretionary Spending (MIT)
MIT's partnership with NSTAR: What’s Interesting
Long-term partnership between utility/customer (initial 3 yr agreement)
Commitment from MIT to annual reductions- totaling 34 mm kWh.
Commitment from utility to pay fixed incentive payment rate/kWh saved
Financing: –
Commitment from MIT to reinvest a portion of energy savings for additional projects
–
“Staged portfolio” approach results in self-financing.
Streamlined savings measurement, verification, and incentive payment
Incentive payments for power saved from behavior change.
Access to NSTAR’s preferred procurement rates for equipment/services
Engages MIT’s academic community - integration of project-based learning and research opportunities
Expanding the NSTAR/MIT financing model
Flexible Framework for Financing/Partnerships with Commercial, Institutional and Municipal
Municipalities: Transitioning from Stimulus to Utility Programs –
Supporting small communities for facilities, energy codes, and mobilization.
Commercial sector mobilization and feedback –
Energy benchmarks and building labeling.
–
Democratizing Efficiency Delivery.
–
Developing the Gameboard concept.
Can we get to 30% - we can, but can we do it in time?
Strategic Opportunities in Commercial Energy Efficiency
Harvey Michaels Director, MIT Energy Efficiency Strategy Project
617-253-2084 [email protected] Instructor: Enabling an Energy Efficient Society Presented to: NE Environmental Business Council June 29, 2011
John Sterman’s Carbon Bathtub It’s simple, really:
As long as we pour CO2 into the atmosphere faster than nature drains it out, the planet warms.
And that extra carbon takes a long time to drain out of the tub.
Ron Prinn
To keep climate change manageable, by 2050 We need to reduce US Carbon pp from 5.5 tons/yr to < 1 ton/yr ENORMOUS EFFORT:
Richard Lester
Capture all carbon from all coal plants (to date 0).
Triple coal and gas plants, also with all carbon captured.
2/3 of all cars/trucks all-electric, rest adv. biofuels.
In units of 1000 MW (a typical nuke) by 2050 we need: –
1200 wind (last year 8)
–
1400 solar (last year .3)
–
500 nuclear (last 20 years 0)
LAY-UP: Improve energy efficiency by 3% per year.
MIT Energy Efficiency Strategy Project
How will we Enable Energy Efficiency? US Buildings consume 71% of all electricity, 55% of all natural gas Goal: 30% efficiency achievable by 2030 with 4 Deployment options: 70,000
Codes and Standards: Data and intelligence-driven : New Business Models:
sticks information innovation
Growth Rate 1.0%
MA Net Energy for Load (GWh)
Public funding models, utilities: carrots
MA EE Electric Savings: What is Possible?
65,000
Recent years: about 0.8% savings per year
0.2%
60,000
2% savings per year -1.0%
55,000
50,000
Acquiring all available cost-effective electric energy efficiency as set forth in the Green Communities Act (GCA) would likely require an annual energy savings level of about 2.5% per year, or about three times the energy savings levels in past years.
3% savings per year
-2.0% 45,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ISO Base Forecast (No EE)
MA EE Programs (recent)
MA EE Programs (2%)
Transforming the nation’s consumers: Good energy decisions (ie lower discount rates) change everything.
MA EE Programs (3%)
Envision Charlotte – Smart Energy Now 5 year 20% energy savings goal Downtown-wide data displayed to public on touch screens in building lobbies Meter-level information for owners and staff
“Efficiency Forward: Partnering for Success”
In May 2010, MIT and NSTAR announced a three year, collaborative energy efficiency program.
The program will invest over $13M over three years saving 34 mm kwH.
Mix of funds from MIT, NSTAR incentive payments, and reinvestment of energy savings.
In January 2011, surpassed its first year goal of achieving 10 million kWh of energy savings.
MIT/NSTAR Efficiency Forward $ Incentive & Expertise (NSTAR)
EE Measures (MIT)
Capital Investment (MIT)
Energy Cost Savings (MIT)
Discretionary Spending (MIT)
MIT's partnership with NSTAR: What’s Interesting
Long-term partnership between utility/customer (initial 3 yr agreement)
Commitment from MIT to annual reductions- totaling 34 mm kWh.
Commitment from utility to pay fixed incentive payment rate/kWh saved
Financing: –
Commitment from MIT to reinvest a portion of energy savings for additional projects
–
“Staged portfolio” approach results in self-financing.
Streamlined savings measurement, verification, and incentive payment
Incentive payments for power saved from behavior change.
Access to NSTAR’s preferred procurement rates for equipment/services
Engages MIT’s academic community - integration of project-based learning and research opportunities
Expanding the NSTAR/MIT financing model
Flexible Framework for Financing/Partnerships with Commercial, Institutional and Municipal
Municipalities: Transitioning from Stimulus to Utility Programs –
Supporting small communities for facilities, energy codes, and mobilization.
Commercial sector mobilization and feedback –
Energy benchmarks and building labeling.
–
Democratizing Efficiency Delivery.
–
Developing the Gameboard concept.
Can we get to 30% - we can, but can we do it in time?
