cto working with utilities

8/8/2019 CTO Working With Utilities

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Clean Tech Open & Technology

Resource Incubator Outreach (TRIO)Webinar: The Energy Utility Connection

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CTO & TRIO Webinar Agenda

Introduction & Welcome1

Energy Utility Basics2

Getting Started with Utility Programs3

Working Successfully with Utility Programs4Energy Utility Rebate Program Specifics5

Upcoming TRIO Symposiums6

Audience Q & A7Email questions to [email protected]

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Robyn Zander, Manager of Contracts & Solicitations, Customer EnergyEfficiency and Solar Division, Southern California Edison

Jonathan Livingston, PresidentLivingston Energy Innovations, LLC

A.Y. Ahmed, Emerging Technologies Program ManagerSan Diego Gas & Electric

Steven Long, Manager of Energy EngineeringSouthern California Edison

Richard Jett, Manager, Market Segment Solutions, Customer EnergyEfficiency and Solar Division, Southern California Edison

CTO & TRIO Webinar Presenters

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Energy Utility Basics:

The Foundations of California InvestorOwned Utility (IOU) Energy EfficiencyPrograms

Presented by:Jonathan LivingstonPresident, Livingston Energy Innovations, LLC

4Questions? Email [email protected]


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Why Do States Like California Use Much Less Energy?

Per Capita Electricity Consumption

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1960 1965 1970 1975 1980 1985 1990 1995 2000

k W h / p e r s o n

Source: http://www.eia.doe.gov/emeu/states/sep_use/total/csv/use_csv.html

United States

California

Source: California Energy Commission

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Behind Energy Efficiency Program Success Is Regulation

California Public Utilities Code Section 454.5(b)(9)(C)

Utilities must first meet their "unmet resource needs through all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible."

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General Concept: Add up all costs and subtract from benefitsAre they net positive or net negative?

CostCustomer expenditures

and/orUtility program expenditures(excluding incentive payments)

BenefitsProduction cost

External cost avoided (e.g., pollution)

This Policy Makes Sense Because EE Is Cost-Effective

To comply with California Public Utilities code, CPUCrequires utilities to offer cost-effective programs byapplying a dual test (administrative and resource test)

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The California Energy ActionPlan makes Energy Efficiencythe first resource in the loadingorder

Energy Efficiency is the least

cost, most reliable and mostenvironmentally-sensitiveresource

Californias Energy Resource Policy Follows a LoadingOrder

Energy Efficiency &

Demand ResponseRenewable Energy

Resources

Fossil Fired Generation

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Energy Efficiency: the Least-Cost Electricity Resource

EE is the least cost, environmentally preferred resource in CA

CA EE programs save energy at a cost of $.03-.05 per lifecycle kWh

$- $0.05 $0.10 $0.15 $0.20 $0.25 $0.30

Gas Peaking

Solar Thermal

Solar PV

Coal-IGCC

Nuclear

Coal

Gas Combined Cycle

Biomass

Wind

Landfill Gas

Energy Efficiency

Avera e estimated cost of new ener resource cents/kWh

EE vs. Power Plants: No transmission lines required to serve load centers

EE vs. Power Plants: Can be installed rapidly

EE vs. Power Plants: Operating costs unaffected by oil / natural gas price fluctuations

Source: Levelized Cost of Energy Analysis Version 2.0, Lazard Management, June 2008 and National Action Plan forEnergy Efficiency, July 2006.

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Energy Efficiency: a Least-Cost Source of GreenhouseGas Reductions

GHG abatement costs will impact future resource planning

EE is the least cost approach to reducing GHG emissions

EnergyEfficiency

Cost per metric ton to abate CO2 emissions

NuclearGeothermal

WindTurbine

PV

$0

-$100

$175

$1500

Millions of Metric Tons CO2 Abated per Year6 3 7 2


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State of California Policy Essentials for EE

Cost Recovery

ShareholderEarnings

DecouplingPolicy

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California Ratepayer Funding Assures Cost Effective EEProgram Stability & Supports Utility Cost Recovery

0.5

2.0

3.1

0.00.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2004-2005 2006-2008 2010-2012

Funding Cycle

$ B i l l i o n s

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Decoupling Makes EE Good Business for IOUs

Authorized Revenue Requirement

Actual Recorded Revenue

2006 2007

Utility under-collection

Utility over-collection

Annual rate level

adjustment torecoverdifferencebetween Actual& Authorized

Traditional RatemakingIncreased sales = Increased revenues

DecouplingRevenue requirements are set inaccordance with expected costs andfixed for a specified termEach years rates are adjusted to makeup for reduced sales due to EE andother factors such as weather oreconomic fluctuations to allow utility torecover authorized revenuerequirementsIf a utility can reduce costs during the

term through energy efficiency it will beable to increase its profits even withreduced sales

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In California, investor-owned

utilities can benefit from aregulatory EE PerformanceMechanism

EE Performance Mechanismgenerates utility shareholder

earnings through financialincentives for actively andsuccessfully implementing cost-effective energy efficiency

Distributes financial benefits fromsuccessful EE programs betweenutility and customers

EE Performance Mechanism Generates Profit for IOUs

Shared EE benefits less

costs

Customer

IOU

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Enabling the California Long Term EE Strategic Plan

Establishes far-reachingaspirational goals for Californiasenergy futureSets key DSM policy direction for

the StateInfluences the IOUs DSMportfoliosShapes the development of newprogram and technology researchInfluences the overall portfoliocost effectiveness

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Utility Energy Efficiency Programs

Incentive Programs provide rebates to transform the market

CustomerMid-stream

Upstream

Energy Efficiency PortfolioResidential Program

Business Program

Partnership Third Parties, Government and Institutions

New Construction

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Integration Across Resources

The CPUC directed the utilities in 2007 to integrate, coordinate and innovate in order to provide more comprehensive solutions to customers

Energy efficiency, energy conservation, demand response,advance metering, and distributed generation technologies are

offered as elements of an integrated solution that supports energy and carbon reduction goals immediately, and eventually water and other resource conservation goals in the future

Integrated Demand Side Management (IDSM)

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Getting Started with Utility Programs:Technology Resource IncubatorOutreach Program (TRIO) andEmerging Technologies Program (ETP)

Presented by: Robyn Zander, Manager of

Contracts & Solicitations, Customer Energy Efficiency and Solar Division,Southern California Edison

A.Y. Ahmed, SDG&E Emerging

Technologies Program Manager 18Questions? Email [email protected]


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California IOUs Current Way of Doing Business

Third Party Solicitations

Purpose: Find, fund, and field testthe best new program designs inthe U.S.

Two stage solicitationSCE administered

Third party implemented

Proven technologies3 rd

Party

20% of EE budget(CPUC Requirement)

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New IOU Program Issues and Opportunities

3rdParty

Innovative technologies

DSM integration

Implementer diversityMarket assessment

Technical quality

kW/kWh goals

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Technology Resource Incubator Outreach (TRIO)

Find innovativetechnologiesIncrease EE measures

IDSM

New applications for EEtechnologies

Technologies at differentstages of development

Alpha

Beta

Production

TechnologyProvide a process

Utilize statewide IOUs

In-kind

Technical direction

Emergingtechnologies

Provide engineering skills

Become a gateway

Filter for investors

Validate technology

Resource IncubatorNurture ideas

Conduct symposiums

Roundtable discussions

Utility transparency

Engage entrepreneurs innetworking

Investor funding

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TRIO Outreach Channels

Angel investors

Venture capitalists

Public Interest EnergyResearch (PIER)

Manufacturers

SBIR

InvestorHub of Innovation

Business plan and posterboard competitions

Mentorship programs

Technology transferoffices

Entrepreneurship

University ForumsAmerican Council for anEnergy Efficient EconomyClean Tech Open

National Council forEntrepreneurial TechTransfer NCET2

ARPA E

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Symposium

How to do business with utilities

Define energy efficiency

Technical documentation

kW/kWh estimates

Cost effectiveness

Scoring processRegulatory forum

Roundtables

Investors

Angel networks

Venture capital firms

Discuss leading technologies

Provide technology filters

Gaps in portfolioMarket assessment

Discuss risk

Uncertainty

Economic

Regulatory

TRIO Statewide (SCE, PG&E, and SEMPRA)

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TRIO Program Goal

Energy industry expertise / utility feedback

Capture Capture cost-effective energy savings

De-mystifyDe-mystify utilities

codes, standards, regulations, & programsIncrease the diversity of 3 rd party implementers

Relationships Utilize a network of utility relationships to create innovativesolutions by communicating and connecting similar activities

IOU InterestLeverage IOU interest for investment fundingShowcase innovative technologies

Feedback

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IOU Emerging Technologies Program (ETP)

Program Goal: To accelerate the market introduction ofnew and emerging technologies and support the utilitysCustomer Programs

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The Energy Utility World Today

Energy Flow

Natural gas

Gas Storage

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The Energy Utility World Tomorrow

Energy Flow

Gas Storage

EnergyStorage

Enhanced Oil RecoveryCO2

Fuel Cell

SmartHome

SolarPower

Smart Grid andOpEx

Biofuels

SmartMeter

CleanTransportation

SmartOffice

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IOU ETP Organization

The Seven ETP ElementsTechnology AssessmentsScaled Field PlacementsDemonstration Showcases

Market & Behavioral StudiesTechnology Development SupportTechnology Test CentersBusiness Incubation Support

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IOU ETP 2010-2012 Budgets

SoCal Gas $3,000,000

San Diego Gas & Electric $4,050,000

Southern California Edison $15,584,000

Pacific Gas and Electric Company $19,500,000

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Examples of ETP Technology Assessments(2009-2012)

Advanced LED lighting system

assessmentsAdvanced Integrated officelighting system evaluationSolar thermal water heatingNear Zero Energy homesZERO Energy Small CommercialBuildingsOffice of the Future pilotAdaptive street lighting

technologiesNear Zero Energy retail buildingsDaylighting DemonstrationHigh Efficiency air conditioners

Evaporative Cooling

technologiesEvaluation of electric blackbox technologiesAdvanced Fault DetectionDiagnostic & Optimization(FDDO)Plasma LightingHID Addressable BallastsCold Cathode Displays for

Retail and Bus StopsGas Station Canopy LightingOutdoor Billboard LightingLaboratory of the Future

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Advanced Lighting ControlsDR strategy development for Data Centers (collaboration w/ EPRI)DR Strategies with electric storage systems (collaboration w/ vendor)DR strategy development for water treatment plants

Various EPRI projects

Current ETP DR Technology Assessments(2009-2011)

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A.Y. Ahmed

SCG & SDGE Emerging Technologies Program [email protected]

Edwin Hornquist

SCE Emerging Technologies Program Manager

[email protected]

Randy Wong

PG&E Emerging Technologies Program Manager

[email protected]

IOU ETP Contact Information



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Confidential

Engineering Work Papers

Energy Engineering Deemed Measures

Uncertainty of CPUC Changes Deemed Measures:

Upfront Deemed Requirements Measure Request Process Steps

New Ideas: Request Process Steps

Q&A34


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Confidential

Energy Engineering

Responsible for ALL ex ante energy saving estimates

Work papers for deemed/custom measures Implementation of DEER Customized project/measure estimates

Master Measure Database Engineering related policy for the Division Engineering calculation tools

Program related technical support Marketing collateral reviews Third party proposal technical reviews Provide input to Idea management process

Regulatory technical support 35


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Confidential

Deemed Measures

Deemed measures High volume measures

Similar levels of savings for all applications fora given building type/climate zone (e.g. CFLs)

Use DEER or Deemed work paper for savings

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Confidential

Uncertainty of CPUC Changes

Entire process is changing

Unclear direction from the CPUC

Measure freeze did not occur by3/31/2010

Still working out issues/details

All deemed measures need upfront CPUCapproval

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Confidential

Upfront Deemed Requirements

Requires SCE pre-established solution codes forALL measures

Need to identify the following for each measure: Building type (e.g. Large Office)

Climate zone (e.g. climate zone 10)

Base case (e.g. 95 W incandescent lamp)

Measure Case (e.g. 23 W CFL) Measure Unit (e.g. Lamp)

Program Delivery method (e.g. down stream prescriptive financial incentive)

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Confidential

Measure Request Process Steps - Deemed

Submit an EA Request to the Energy EngineeringGroup, which will initiate a new measure/solutioncode/work paper

This may take 3-4 months for a work paper or oneweek for a DEER measure

All data, including the new solution code loaded

onto the Master Measure Database and intoSMART, online IDSM tool (may take 1-2 weeks)

Resources include MMDB measure listing

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Confidential

Submitting New Ideas

Any significantly new measure that SCE has/does not offer Submit inquiries to [email protected] . and idea

proposals to the IMT using the Idea Proposal Form.Internal/external parties may submit ideas

Ideas can be anything with a market transformation orenergy saving impact on the DSM Portfolio typically in oneor more of the following ways: Market Potential Behavior, Economic, Studies, etc. Emerging Technologies Projects

New Technologies (Black Box) Program Design Potential

Upon completion of assessed projects and inquiries theIMT will complete and submit a recommendationsummary.

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SM
mailto:[email protected]:[email protected]


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EDISON INTERNATIONAL

Energy Utility Rebate Program Specifics:Energy Efficiency Business Portfolio

Presented by: Richard JettManager, Market Segment Solutions,Customer Energy Efficiency and Solar Division, Southern California Edison


SM


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EDISON INTERNATIONAL42

Unleashing the Power of Integrated Demand-SideManagement (IDSM)

Providing Customers a More Efficient, BetterIntegrated Suite of DSM Products and Services Aligning the entire sales and marketing value chain

Unleashing the PowerNew energy management guides

Integrated application and fulfillment process

Redesigned Web site

Application access through multiple channels

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Whats New?

IDSM Marketing Material & Application- Support and accelerate the customer decision making process

from awareness to action

Expanded Portfolio of Services- Audits, Benchmarking, Continuous Energy Improvement

(CEI), Retrocommissioning (RCx) and expanded serviceofferings designed to overcome market barriers beyondcapital cost considerations and identify resource opportunities

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Whats New?, contd

Segment Specific Third Party ProgramsPrograms designed to target specific markets (e.g. foodprocessing, primary metals, and schools)

New Retrofit Measures and IncentivesExterior Induction FeaturesLED Refrigerated Case Door LightingT8 to T8 Reduced Wattage Interior Lamp and Ballast RetrofitOthers

Financial Mechanism ProgramOn-Bill Financing (OBF) expansion to cities and counties

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SCE Business EE Rebate Program Funding History

$153$208 $217

$225 $233$277

$353

$419$456

$-

$100

$200

$300

$400

$500

2004 2005 2006 2007 2008 2009 2010 2011 2012

$345

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Customer-Centric Portfolio

Addressing market barriers at each phase of a facilitys life cycle:

Building &Construction Operations

Site Planning,Building Design &

Engineering

ContinuousImprovement

Retrofit Programs

Statewide:Commercial/G&I, Industrial, and AgriculturalThird Party:

Office, Hospitals, Food/Beverage, and Others

Cross Cutting Programs

Comprehensive HVAC, Emerging Technologies,Codes & Standards, WE&T, and ME&O

New Construction ProgramsStatewide:

Savings by DesignCalifornia Advanced Homes

Third Party:Sustainable Communities

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Market Barriers to Adoption of EE

Lack of awareness regarding

Levels of energy performance inexisting facilitiesOpportunities for greaterefficiency and cost savings inongoing operationsHigh-performance designstrategies for new facilities

Lack of technical expertiseChoosing the right measures tomaximize savings

CostInitial capital costMore than two year payback

Minimal upfront capital investmentcapabilityStructural disconnect betweencapital and O&M budgets

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Offerings to Overcome Market Barriers

Audits & Technical

ServicesBenchmarkingBasic auditsIntegrated audits

Pump testsRetrocommissioning(RCx)Continuous EnergyImprovement

Incentives

Deemed perunit/measure (Express)Calculated per unit of savings (Customized)

Direct InstallationNo-cost installation of energy efficientequipment

Financing Mechanism

On-Bill Financing (OBF)

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SCE Business EE Portfolio StructureStatewide,

Local & Third Party Programs

Questions? Email [email protected]

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Comprehensive HVAC,New Construction & Sustainability,

Workforce Education & Training, Others

Commercial/

G&I

Statewide

Local

ThirdParty

6 Implementers

Industrial

Financial Solutions

Agricultural

CrossCutting

4 Implementers 1 Implementer

2010-2012 Business EE Portfolio Structure

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Program Description

Commercial/G&IStatewide-consistent suite of products and services to overcome the market barriers to energy efficiency,including Audits, Express Solutions, Customized Solutions, Direct Install, and Continuous EnergyImprovement.

Industrial Statewide-consistent suite of products and services to overcome the market barriers to energy efficiency,including Audits, Express Solutions, Customized Solutions, and Continuous Energy Improvement.

AgriculturalStatewide-consistent suite of products and services to overcome the market barriers to energy efficiency,including Audits, Pump Tests, Express Solutions, Customized Solutions, and Continuous EnergyImprovement.

SCE Business EE Portfolio Structure C, I, & A Statewide Programs

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Third Party Programs


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Third Party Programs

Examples of targeted sub-segments areData CentersFood/BeverageGases, Solid WasteOfficePetroleum/OilSchools and Colleges

Deliver the same offerings and incentives as thestatewide Commercial/G&I, Industrial, and

Agricultural programs

SCE Business EE Portfolio Structure Third Party Implemented Programs

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New Construction & SustainabilitySavings By Design (SBD)California Advanced Homes (CAHP)Sustainable Communities (SCP)

Comprehensive HVACResidential Energy Star Quality InstallationCommercial Quality InstallationCommercial Upstream EquipmentQuality Maintenance Program

Technology & Systems DiagnosticsHVAC Workforce Education & Training

SCE Business EE Portfolio Structure Statewide Cross Cutting Programs

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Workforce Education & TrainingEnergy CentersBuilding Operator CertificationMobile Energy Unit

OtherEmerging TechnologiesCodes & StandardsMarketing, Education & OutreachStrategic Planning & Implementation

Statewide Cross Cutting Programs, contd

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SCE Business EE Portfolio Structure Local On-Bill Financing Program

Offering descriptionAdvances SCEs strategy of using targeted and innovativefinancing for EE

Customers receive both an OBF loan and an incentive froman energy efficiency program

OBF Loan AmountsLoans to Local Government $ 12 Million& Institutional CustomersLoans to Commercial, $ 4 MillionIndustrial, and Agricultural Segment

Lending amount total $ 16 Million

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Loan caps as followsThe minimum loan: $5,000Business Customer maximum: $100,000Local Government & Institutional partners maximum:

$250,000

SCE Business EE Portfolio Structure Local On-Bill Financing Program

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SCE Business EE IncentivesExpress & Customized Solutions

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Offering description

Encourage the adoption of energy efficientproducts by providing itemized rebates to offsetthe cost of implementing high-efficiency measures

Designed for projects with standardized measuresfor quicker processing

Express Solutions

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Offering description

Encourage the adoption of energy efficientproducts by providing calculated incentives tooffset the cost of implementing high-efficiencyequipment or systems

Designed for complex or unique projects not covered under Express Solutions

Customized Solutions

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Applying for EE Incentives

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C h i S


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Comprehensive Strategy

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Segment Guides

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Web

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Th C h i


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Energy Action Plan

The Comprehensive

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EDISON INTERNATIONAL65uestions? Email webinar@cleantecho en.com


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Upcoming TRIO Symposiums

Presented by: Robyn Zander,Manager of Contracts & Solicitations,Customer Energy Efficiency and Solar Division, Southern California Edison

Questions? Email [email protected]


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Audience Questions and Answers

cto working with utilities

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