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Energy Efficiency MarketTransformation Opportunities

September 13, 2007

Transformation Opportunities for Texas

A Public Example: Investing in Energy Efficiency

FRED YEBRA, P.E., MBA, Director of Demand Side Management

A Workshop Sponsored by

Director of Demand Side ManagementAustin Energy

Fred is a registered engineer with 26 years of experience in the energy engineering field. He received his engineering degree from the University of Texas at Austin, and a Master of Business Administration degree from the University of Phoenix, Arizona. As Director of Austin Energy’s

Public Citizenwith

Texas Energy Efficiency Partnership

&

g y , gyDemand Side Management Division, Fred directs the energy efficiency customer services and utility demand‐side management for all residential, commercial, municipal and industrial electric customers. Austin’s energy efficiency programs are recognized as successful models and have won numerous state and national awards. In his current position, Fred also directs the City of Austin’s energy management plan to implement energy cost‐saving initiatives within the municipally‐owned facilities as the City of Austin’s Energy Manager. Fred’s previous experience

Electric Utility Marketing Managers of Texas

municipally owned facilities as the City of Austin s Energy Manager. Fred s previous experience includes Central Power & Light Company, the Public Utility Commission of Texas, and the Governor’s Office of Energy Management. Fred served as an engineering consultant with Texas Energy Engineering Services, and Energy Environment Interface, Inc. His experience also includes energy and environmental strategic planning, engineering consulting and project management, regulatory evaluations and compliance, and energy efficiency codes and standards.

Austin, TX

Fred is a founding member and past president of the Austin Chapter of the Association of Energy Engineers, and serves as a board member on the Texas Solar Energy Society.

Investing inE Effi iEnergy Efficiency

Energy Efficiency Market Transformation Opportunities for TexasOpportunities for Texas

August 13 2007August 13, 2007

Power SaverTM ProgramSaving Energy Together 1

Austin EnergyAustin Energy

• Municipally-owned• 800,000 population800,000 population• Area > 400 sq. miles• Generation 3 170 MWsGeneration 3,170 MWs


Energy Efficiency P k D d S iPeak Demand Savings

800

600

ed

400

MW

's S

ave

0

200

M

Year1982-99 2000 2001 2002 20042003


Austin City CouncilResolution September 14, 1999

“Cost-effective conservation programs shall be theCost-effective conservation programs shall be the first priority in meeting new load growth requirements of Austin Energy. ”

Clean Energy Resolution August 28, 2003Austin Energy Strategic Plan to ensure Austin… Austin Energy Strategic Plan to ensure Austin

remains a national and international leader in the development and use of clean energy


Austin Energy’s ResponseAustin Energy s Response

Energy Efficiency is first priorityEnergy Efficiency is first priority15% Demand-Side Management by 202020% Renewable Energy by 2020gy y100 MWs of Solar by 2020

CCommercial, Residential Energy Efficiency and Solar Rebate Programs


Austin Energy Strategic Goals Demand Reduction and Savings

617700

617

500

600

A t l F t

200

300

400

MW

Actual Forecast

-

100

200

2003 2005 2007 2009 2011 2013 2015

Fiscal Year


FY2007 Budget and Goals

Program Area Budget Goal MWMW

Commercial $ 4,024,170 14.49

Residential $ 6,078,991 11.25

Load Management $ 4,683,672 15.04

Solar $ 3,500,000 .50

G d T t l $ 18 286 833 41 28Grand Total $ 18,286,833 41.28


DSM Reduction in Fuel Costs $0 030

$0.028

$0.029

$0.030

F l C t ith t DSM

$0.026

$0.027Fuel Cost without DSM

$0 023

$0.024

$0.025

$0.021

$0.022

$0.023

Fuel Cost with DSM

$0.020

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015


Cash Flow Projection of DSMCash Flow Projection of DSM

FY05 ForecastFY05 ForecastDSM Analysis 2007 2008

Base Revenue Reduction $12,000,000 $16,000,000

Fuel Revenue Reduction $13,000,000 $15,000,000

Customer Savings (Bill Reduction) $25,000,000 $31,000,000


Austin Climate Protection PlanResolution on February 15, 2007

“Make Austin the leading city in the nation in the effort to reduce andnation in the effort to reduce and reverse the negative impacts of global

i ”warming.”


Austin Climate Protection Plan• Makes all COA facilities/fleets carbon neutral

– Facilities 100% renewable by 2012Facilities 100% renewable by 2012– Fleet carbon neutral by 2020

• Makes Austin building codes most EE in nation• Mechanisms for business to reduce carbon• Austin Energy’s GHG-reduction by 2020

– Achieve 700 MW through energy efficiency– Meet 30% energy needs with renewable energy

Achieve carbon neutrality on new generation– Achieve carbon neutrality on new generation– Establish CO2 cap for utility emissions


Promoting Energy EfficiencyPromoting Energy Efficiency• Cash rebates that pay 20 – 30% of cost • Up to 70% buy-down incentives for Small Business• Direct install measures• Free home and business energy audits• Free home and business energy audits• Low-income Free Weatherization• Engineering Feasibility studiesg g y• Inter-agency agreements• Utility Key Account representatives

Newsletter / Mail outs• Newsletter / Mail outs


Free Home Weatherization

Energy Improvements:• Insulate Attics

D t S li• Duct Sealing• Install CFLs

Installing Solar Screens• Installing Solar Screens• Caulking and Weather-stripping• Free Smoke & Carbon Monoxide Detector• Free Smoke & Carbon Monoxide Detector • Minor Energy Related Repairs


Power Saver Program

• FREE Energy Saving Productsgy g• Lower energy costs• 65,000 installed in homes, apartments, , p• 4,000 installed in commercial buildings


Home Energy Efficiency

• Average Home Has 27% Duct Leakage

Air Duct SystemAverage Home Has 27% Duct Leakage

Attic Insulation• 30% of Homes Heat Gain Comes from Attic

Solar Shading• Can Reduce Sizing of A/C by ½ Tong y ½


Cycling A/C ThermostatsC li S i J 15 2005Cycling Session, June 15, 2005

Forecast vs Actual Load 2193-MW

2200 Curtailment Session Start

Curtailment Session Finish

2150MW

2174-MW

2100

ForecastAct Load

21001500 1600 1700 1800 1900 2000

Hour


Commercial Rebates Summary of Technologies

• EE Lighting retrofits• Air Conditioning Unit

• Premium Efficiency Motor

• Solar Film/Screens • Ceiling/Roof

• Variable Frequency Drives (VFD’s)

Insulation• Reflective Roof

• Retro commissioning• Thermal Cool Storage

Coatings • Custom technologies


Solar Rebate ProgramSolar Rebate Program

• 100 Mega watts of solar by 2020• 100 Mega-watts of solar by 2020.

• Rebates among the nation’s

largest.

• Encourage installations on

homes & businesses.• Demonstrations in Schools• Demonstrations in City buildings


Solar Rebate ProgramSolar Rebate Program

• Pays maximum of $4,500 per kW.

• Residential rebates capped at $13,500

C i l b t d t $100 000• Commercial rebates capped at $100,000.


Municipal Energy Management Performance Contracting

T t ti l id tifi d $15 000 000 i EE j t• Tentatively identified $15,000,000 in EE projects

• Detailed Energy Audit’s in progress in 9 Departments• Detailed Energy Audit s in progress in 9 Departments exceeding 2,000,000 sq. ft.

• Currently $5,000,000 LoanSTAR from SECO

• Planning to submit for $5,000,000 for water utility projects.


Strategic Conservationg

• Municipal Energy Conservation p gyProgram

• Traffic Signal Conversion to LEDLED

• 5,500 traffic signalsExisting incandescent lamps 135 watts

New LED lamps 15 wattsEnergy savings per lamp 120 watts

90% energ red ction90% energy reduction


Energy Conservation in Public FacilitiesFluorescent Streetlight Test900 Block of West Avenue900 Block of West Avenue

E i ti 3 250 W tt HPS 885 W tt (@295 W tt /E )Existing High Pressure Sodium New Fluorescent

Existing 3-250 Watt HPS = 885 Watts (@295 Watts/Ea)Existing 2-100 Watt HPS = 250 Watts (@125 Watts/Ea)

Existing Total 1,135 Watts

N 5 100 W tt Fl 515 W tt (@103 W tt /E )New 5-100 Watt Fluor = 515 Watts (@103 Watts/Ea)Reduction = 620 Watts

A 55% Reduction


Energy Conservation in Public FacilitiesEnergy Conservation in Public Facilities


Energy Conservation in Public FacilitiesSenate Bill 5 Energy Use vs. Energy Cost

350 30.0

330

335

340

345

ours

27 0

28.0

29.0

ars

310

315

320

325

330

Gig

awat

t-ho

25.0

26.0

27.0

Mill

ion

Dol

la

295

300

305

310

Base Year 2002 2003 2004 2005 2006

G

22.0

23.0

24.0

2001

Million kWh Cost


Q ti ?Questions ?


Load Shifting - Thermal Storage Austin Bergstrom International Airport July 1999Austin-Bergstrom International Airport - July 1999

2000

2500

12 AM2 AM

4 AM6 AM

8 AM10 AM

12 PM 0

500

1000

1500

T

Central Plant Demand (kW)

12 PM2 PM

4 PM6 PM

8 PM

10 PM 0 13

16

1922

2528

31

0

Month

Time of day

10 PM

1

4

7 10Day of M

on


Demand Response June 15, 2005

Peak Day: June 2 2005Peak Day: June 2, 2005

June 15, 2005


Building Retrofit CommissioningBuilding Retrofit-CommissioningHigh Tech Industryg y

Re-tuning & calibrating an existing building

Savings estimate: $260,000 per year

Utility incentive: $10,000 for initial assessmenty $ ,

Total cost of project was $149,000

Economic payback was 7 months.


High Bay Fluorescent RetrofitHigh Bay Fluorescent Retrofit

Manufacturing FacilityManufacturing FacilityConverted (514) 400-watt HID lamps to 4 lamp 240 watt T5 HO Fluorescents4-lamp 240-watt T5 HO Fluorescents

Annual Cost Savings: $43,812Project Cost: $122 800Project Cost: $122,800Utility rebate: $33,153 (27% of job cost)Payback was 2 yearsy y


Reflective Roof CoatinggTarget Commercial facilities with flat, dark colored roofs

• Rebate up to $0.15/sq. ft.p $ q• 300,000 sq. ft. roof• Expected Savings

• 192,000 kWh/year;total of 148 kW


Home Energy Efficiency

Base Home Retrofit Home Difference

Energy Usage – After Energy Improvements

Base Home Retrofit Home Difference kWh/Sq. Ft. kWh/Sq. Ft. kWh/Sq. Ft.

8 98 S Ft 7 68 1 3 kWh/S Ft8.98 per Sq. Ft. 7.68 1.3 kWh/Sq. Ft. Improvement

2000 Sq. Ft.Base Home = 17,960 kWh Annual UsageRetrofit Home = 15,360 kWh Annual UsagekWh Savings = 2,600 kWh Cost Savings = $273


Commercial Rebates S f Li h i T h l iSummary of Lighting Technologies

• T 8 & T 5 High Efficiency Lighting Systems• T-8 & T-5 High Efficiency Lighting Systems • Compact Fluorescent Lamps (CFL’s) • LED (Light Emitting Diode) Exit SignsLED (Light Emitting Diode) Exit Signs • Incandescent to Fluorescent Conversions • New building designs• Re-lamping & Re-ballasting of Existing Fluorescent Fixtures • High-Bay Fluorescent Systems • Lighting Controls (occupancy sensors)


DSM OpportunityAE System Duration Curve -2004

2 000

2,500

Top 160 MW is used 40 hours per year

AE System Duration Curve -2004

1,500

2,000

erat

ed

40 hours per year

1,000

MW

s G

ene

500

00% 10% 20% 30% 50% 60% 70% 80% 90%

% of Yearly Hours


Energy Use Modification

St t i

gy

Peak ClippingStrategic

Conservation Load Shifting

Power SaverTM ProgramSaving Energy Together

AE DSM Programs

Peak ClippingPeak Clipping • Power Partner

• A/C Cycling

• W/H Cycling

L d C O• Load Co-Op

Represent 51% of new DSMRepresent 51% of new DSM program mix


AE DSM ProgramsStrategic Conservation

•Total Home EfficiencyTotal Home Efficiency•Small Business Efficiency•Green BuildingA li Effi i•Appliance Efficiency

•Multi-family Rebates•Commercial Rebates•Refrigerator Recycling•Free Weatherization•Municipal ConservationMunicipal Conservation•Air Duct Sealing

Represents 32% of new DSM program mix


AE DSM Programs

Load Shiftingg

•Time-of-Use Rate

•Thermal Energy Storage Systems

Represents 17% of newRepresents 17% of new DSM program mix


Promoting Energy Efficiencyg gy y• Cash rebates that pay 20 – 30% of cost • Up to 70% buy down incentives for Small Business• Up to 70% buy-down incentives for Small Business• Direct install measures• Free home and business energy auditsFree home and business energy audits• Low-income Free Weatherization• Engineering Feasibility studies• Inter-agency agreements• Utility Key Account representatives• Newsletter / Mail outs


Electronically Commutated MotorsElectronically Commutated Motors (ECM)( )

• Emerging Technology for Refrigeration FansReplaces Shaded Pole and Permanent Split Capacitor– Replaces Shaded Pole and Permanent Split Capacitor

• Reduced energy consumption to 60%R l ti l Si l R t fit• Relatively Simple Retrofit

• Typical Paybacks Range from 2 to 3 years


Large Grocery Chain RetrofitLarge Grocery Chain Retrofit

Retrofit currently underwayRetrofit currently underway

– 22 Locations in Austin area

– Fans per location store ~ 200 fan/motors

– Energy Cost Savings ~$10,000 /location/yr


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