2016 2018 three year energy efficiency investment...

Creating a Clean, Affordable and Resilient Energy Future for the Commonwealth

2016 – 2018 Three Year Energy Efficiency Investment Plan

Arah Schuur

Energy Efficiency Director

AEE - NE February 3, 2016


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Energy Efficiency

Energy Markets

Emerging Technology &

Innovation

Green Communities

Renewable Energy

Develops policies and manages RPS/APS

programs

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DOER Purpose and Organization Creating a Clean, Affordable and Resilient Energy Future

Oversees development

of statewide EE programs

Tracks industry trends,

develops policy for

energy supply & security

Supports cities and

towns with

grants, technical

assistance

Smart Grid, Storage, EVs

DOER


Massachusetts Energy Approach

1. Reduce and stabilize the rising cost of energy for consumers

2. Continue the Commonwealth’s commitment to a clean energy future

• GWSA GHG reductions: 25% by 2020

and 80% by 2050 (vs. 1990 baseline)

3. Ensure that we have a safe, reliable, and resilient energy infrastructure.

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Policy Framework for EE in Massachusetts

• State law (Green Communities Act) requires pursuing “all cost-effective energy efficiency”

• Utilities coordinate on statewide EE plans and deliver under single brand: Mass Save®

• Utilities develop 3-year plans that are approved by Department of Public Utilities

• Input into planning and execution of 3-year plans overseen by Energy Efficiency Advisory Council, a broad stakeholder body chaired by DOER

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http://www.masssave.com/


Energy and Environmental Affairs MEPA GHG Policy and Protocol

Energy Efficiency Division Pilots: Building Energy Rating and Labeling RCS regulations to serve oil and propane heated homes CHP and alternative energy credits Pathways to Zero – New Construction incentives Enhanced HEAT loan – Pre-weatherization barriers

Leading by Example / DCAMM Accelerated Energy Retrofit LEED+ New Construction

Green Communities Division Stretch energy code – New Construction Municipal 20% reduction in 5 years

MA Clean Energy Center Heat pump and renewable incentives Innovation incubator

MA School Building Authority Green Schools

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EE and Mass Save supported by many state policies


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Growing Importance of Electric Efficiency 2008-2018

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

55,000,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

MW

h

Year

Cumulative impact of EE on MA electric load

Cumulative EEsavings (MWh)

Actual /ForecastElectric sales(MWh)


GHG -Electric Sector Projections

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Energy Efficiency is Employment

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• 2015 Massachusetts Clean Energy Industry Report

• Energy Efficiency jobs

– 69,460 in 2015

– 6.6% growth from 2014

• Clean energy industry in MA

– 2.5% of the state’s economy

– 3.3% of the labor market

– Growing year by year

From: http://www.masscec.com/2015-

massachusetts-clean-energy-industry-report

* 2014 data is preliminary

* $0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

2008 2009 2010 2011 2012 2013 2014

Be

ne

fits

- $

-Do

llar

Avo

ide

d C

ost

s ($

1,0

00

,00

0)

(Cu

mu

lati

ve)

Ele

ctri

c -

MW

H |

Gas

MM

BTU

[C

um

ula

tive

An

nu

al]

Year

Growth in Energy Efficiency Savings & Benefits Annual MWH (Cumulative) Annual Gas MMBTU (Cumulative) Benefit ($1,000,000) (Cumulative)

$ 0.79 Billion Net Benefits 390,000 MHW 968,000 MMBtu

$ 10.2 Billion Net Benefits 5,640,000,000 MHW

10,624,000 MMBtu


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Energy Efficiency Leadership Continues

• Will deliver $8 billion in economic, environmental and energy benefits

• Most aggressive energy efficiency goals in U.S.

• Electric savings: 2.93% average reduction in retail sales

• Gas savings: 1.24% average reduction in retail sales

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ACEEE ranks Mass. #1 state for energy efficiency,

5th year in a row

3rd Three Year Savings Plan (2016- 2018)


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2016-18 Plan Development

• Nov 2014 – Oct 2015: Broad stakeholder engagement – 9 EEAC workshops

– 2 Public Comment hearings

• EEAC recommendation on plan – March

• EEAC consultant goals and PA draft plan – April

• Closing the gap – June & July

• EEAC comments on draft plan – July

• Term sheet finalized – Sept

• Final draft of plan & EEAC Recommendation – Sept/October

• Final plan to DPU – October

• DPU Order approving plan – Jan 29, 2016


What’s in the Three Year Plan?

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• Statewide Plan • Individual Program

Administrator (and Cape Light Compact) Plans

• Many many budget and benefit cost analysis tables

• EM&V Plan and framework


Savings and Budgets

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Statewide Electric Statewide Gas


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Early 2013-2015 Results

• 2014 evaluated results show PAs exceeded goals:

• Statewide exceeded: 102% and 122% (elec/gas)

– Residential exceeded: 194% and 148%

– C&I under goals: 84% and 94%

• Budget at 101% of plan targets

• Early 2015 results show that statewide, the PAs met portfolio goals

2014 (% retail sales) Planned Actual

Electric 2.55% 2.76%

Gas 1.14% 1.33%


Savings Increases from Previous Plans

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This plan represents an increase in savings from previous plans

From: 2016-2018 Massachusetts Joint Statewide Three-Year Electric and Gas Energy Efficiency Plan


Budgets and Program Benefits

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From: 2016-2018 Massachusetts Joint Statewide Three-Year Electric and Gas Energy Efficiency Plan


New Initiatives for 2016-2018

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• A renter-specific initiative to be rolled out in Q1 2016

• A moderate income initiative beginning in Q1 2016

• Enhanced approaches to leverage multi-family refinancing events to maximize retrofit potential, including through performance-based retrofit products

• Serve 5+ unit buildings with delivered fuels


Key Focus Areas for 2016-2018

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1. New Demand Reduction/Peak

Reduction Efforts

2. Continued Commitment to Innovation and Technology

3. Contractor Engagement


1. Peak Demand Reduction

Reducing energy consumption during the peak is the most cost effective energy efficiency – 2016-2018 plans have peak demand reduction as key priority.

Base

Intermediate

Peaking

$94/MWh

0

10

20

30

40

50

60

70

80

90

100

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

1 3 5 7 9 11 13 15 17 19 21 23

$/M

Wh

Me

gaw

atts

Massachusetts Summer Peak Day 2014 Base Intermediate

Peak = 11,388

Total Energy Cost $12.4 Milllion

Base

Intermediate

$743/MWh

0

100

200

300

400

500

600

700

800

5,000

5,500

6,000

6,500

7,000

7,500

8,000

8,500

9,000

9,500

10,000

1 3 5 7 9 11 13 15 17 19 21 23

$/M

Wh

Me

gaw

atts

Massachusetts Winter Peak Day 2014 Base Intermediate

Peak = 9,570

Total Energy Cost $51.6 Million

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Total Energy Cost Peak Load Price/MWh

Winter $51.6 million 9,570 $743

Summer $12.4 million 11,388 $94


Peak Demand Reduction

• DOER demonstrations - seasonal peak reduction pilot with WiFi thermostats

• 2016-2018 EE plans include a demand reduction working group, to develop new initiatives

• DOER will be conducting a study and additional demonstration projects


2. Innovation in Technology and Program Delivery

• Problem – continuing to find cost-effective savings

• 2016-2018 plans include commitment to continuous integration of innovation

• DOER leading the way with demonstrations of low/no-touch, low-cost opportunity identification methods


Innovation: Zero Energy Buildings

• PA commitment to explore ZEB in plan

Both in residential and commercial

• DOER Pathways to Zero Program

$3m Grants to 25 ZEB projects

$.5 Market transformation efforts

• DFW ZNE building – Leading by Example

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3. Contractor Engagement

Home Energy Services (HES) delivered by Dedicated Contractors

Residential Products delivered by Open Market

• Home Energy Assessment • Insulation & Air Sealing • Early Boiler/Furnace Replacement • Lighting, Thermostats, Water • Heat Loan Intake

• Retail lighting and Thermostats • Appliance rebates • Boiler/furnace/Hot Water rebates • Refer to HES for Heat Loan

Low Income (LEAN)

• $10k max per unit – 100% funded • Insulation • Heating system retrofit • Lighting, appliances, thermostats


MassSaveData.com

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Thank You

Energy Efficiency Advisory Council

www.ma-eeac.org

Massachusetts Department of Energy Resources 100 Cambridge St, Suite 1020, Boston, MA 02114

www.mass.gov/doer

Arah Schuur

[email protected]

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http://www.ma-eeac.org/



http://www.mass.gov/doer

2016 2018 three year energy efficiency investment...

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