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Michigan Public Service Commission Integrated Resource Planning Stakeholder Group Meeting Tom Eckman and Natalie Mims August 8, 2017 This work was supported by the DOE Office of Electricity Delivery and Energy Reliability under Lawrence Berkeley National Laboratory Contract No. DE-AC02-05CH11231.

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Page 1: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Michigan Public Service Commission

Integrated Resource Planning

Stakeholder Group Meeting

Tom Eckman and Natalie Mims

August 8, 2017

This work was supported by the DOE Office of Electricity Delivery and Energy Reliability

under Lawrence Berkeley National Laboratory Contract No. DE-AC02-05CH11231.

Page 2: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Today’s Agenda

2

Time Content

9:00 – 10:00 am Review of IRP content and development process• Focus on treatment of efficiency and demand

response

10:00 – 11:00 am Time-varying value of energy efficiency research

11:00 - Noon Uncertainty and Risk Analysis

Noon – 1:30 pm Lunch break

1:30 – 3:30 Stakeholder engagement

Page 3: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Time-Varying Value of Energy Efficiency

Natalie Mims and Tom Eckman

August 8, 2017

This work was supported by the DOE Office of Energy Efficiency & Renewable Energy

Building Technologies Office under Lawrence Berkeley National Laboratory Contract No. DE-

AC02-05CH11231.

Page 4: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Project Objective and Scope

Advance consideration of the value of demand-side energy

efficiency measures during times of peak electricity demand and

high electricity prices through quantitative examples of the value of

energy efficiency at times of system peak

Increase awareness of available end-use load research and its

application to time-varying valuation of energy efficiency

Increase awareness of the gaps in, and need for, research on

energy savings shape

Recommend methodology(ies) to appropriately value energy

efficiency for meeting peak demand

Consider changes to efficiency valuation methodologies to address

the changing shape of net load (total electric demand in the system

minus wind and solar)

4

Page 5: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Study Approach

• Summarize state of end-use load research and existing analyses that quantify

benefits of electric efficiency measures and programs during peak demand and high

electricity prices

• Document time-varying energy and demand impacts of 5 measures in 4 locations:

Measures

Exit sign (Flat load shape)

Commercial lighting

Residential lighting

Residential water heater

Residential air conditioning

State/Region

Pacific Northwest

California

Massachusetts

Georgia

• Use publicly available avoided costs from each location and one of the following

methodologies:

1. Use seasonal system peaks, coincidence factors and diversity factors to

determine peak/off-peak savings and apply seasonal avoided costs to savings, or

2. Apply hourly avoided costs to each measure load shape to calculate the time-

varying value of measure.

5

Page 6: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

End-use Load Shapes and Energy Savings Shapes

Definitions:

End-use load shape: Hourly consumption of an end-use (e.g., residential

lighting, commercial HVAC) over the course of one year.

Energy savings shape: The difference between the hourly use of

electricity in the baseline condition and the hourly use post-installation of

the energy efficiency measure (e.g., the difference between the hourly

consumption of an electric resistance water heater and a heat pump

water heater) over the course of one year.

The time pattern of savings from the substitution of a more efficient

technology does not always mimic the underlying end-use.

Examples:

Controls can reduce hours of operation (e.g., occupancy sensor or

changing duty cycle), resulting in the shape of savings being different

than the underlying end-use.

Improved end-use technology and controls (daylighting controls, sensors

and software to power down computers when not in use)

6

Page 7: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

7

End Use vs. Energy Savings Load Shapes

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Pe

rce

nt

of

Ave

rage

An

nu

al P

eak

Ho

ur

Load

/Sav

ings

Hour Ending

Water Heating Load Shape

Heat Pump Water Heater Savings Shape

Page 8: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

2016 System Load Shapes

0%

20%

40%

60%

80%

100%

120%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Pe

rce

nt

of

Pe

ak M

on

th D

em

and

Pacific Northwest

California

Massachusetts

Georgia

8

Page 9: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Pacific Northwest System Shapes and End-Use

Load Shapes

9

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20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Pe

rce

nt

of

Pe

ak W

inte

r D

ay H

ou

rly

De

man

d

Page 10: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Pacific Northwest System Shapes and End-Use

Load Shapes

10

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Pacific Northwest System Shape Exit Sign

Pe

rce

nt

of

Pe

ak W

inte

r D

ay H

ou

rly

De

man

d

Page 11: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Pacific Northwest System Shapes and End-Use

Load Shapes

11

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Pacific Northwest System Shape Exit Sign Res. Air-Conditioning

Pe

rce

nt

of

Pe

ak W

inte

r D

ay H

ou

rly

De

man

d

Page 12: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Pacific Northwest System Shapes and End-Use

Load Shapes

12

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Pacific Northwest System Shape Exit Sign Res. Air-Conditioning Res. Hot Water

Pe

rce

nt

of

Pe

ak W

inte

r D

ay H

ou

rly

De

man

d

Page 13: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Pacific Northwest System Shapes and End-Use

Load Shapes

13

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Pacific Northwest System Shape Exit Sign Res. Air-Conditioning Res. Hot Water Res. Lighting

Pe

rce

nt

of

Pe

ak W

inte

r D

ay H

ou

rly

De

man

d

Page 14: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Pacific Northwest System Shapes and End-Use

Load Shapes

14

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Pacific Northwest System Shape Exit Sign Res. Air-Conditioning

Res. Hot Water Res. Lighting Com. Lighting

Pe

rce

nt

of

Pe

ak W

inte

r D

ay H

ou

rly

De

man

d

Page 15: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

California System Shape and End-Use Load Shapes

15

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

CAISO System Exit Sign Res. Air-Conditioning

Res. Hot Water Res. Light Com. Light

Pe

rce

nt

of

Pe

ak S

um

me

r D

ay H

ou

rly

De

man

d

Page 16: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Massachusetts System Shape and End-Use Load Shapes

16

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

ISO-NE Massachussetts System Exit Sign Res. Air-Conditioning

Res. Hot Water Res. Light Com. Light

Pe

rce

nt

of

Pe

ak S

um

me

r D

ay H

ou

rly

De

man

d

Page 17: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Georgia System Shape and End-Use Load Shapes

17

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Georgia System Shape Exit Sign Res. Air-Conditioning

Res. Hot Water Res. Lighting Com. Lighting

Pe

rce

nt

of

Pe

ak S

um

me

r D

ay H

ou

rly

De

man

d

Page 18: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Comparing Total Utility System Value to EnergyValue

18

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Rat

io o

f Ti

me

-Var

yin

g V

alu

e t

o E

ne

rgy

Val

ue

Exit Sign(Flat/UniformAcross All Hours)

ResidentialWater Heating

ResidentialCentral AirConditioning

ResidentialLighting

CommercialLighting

Northwest California Massachusetts Georgia*Notes: The flat load shape is an exit sign. Energy value includes: energy, risk, carbon dioxide emissions, avoided RPS and DRIPE, as applicable. Total time-varying value includes all energy values and capacity, transmission, distribution and spinning reserves. Ratios are calculated by dividing total time-varying values by energy-only values.* In Georgia, where publicly available data did not include avoided transmission and distribution system values, the time-varying value of efficiency appears much lower for all measures evaluated. Avoided transmission and distribution costs are included in Georgia Power’s energy efficiency evaluations, but are not a part of the publicly available PURPA avoided cost filing.

Page 19: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Exit Sign (flat load shape)Measure 1 of 5

19

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Northwest California Massachusetts Georgia

Re

sou

rce

Val

ue

(2

01

6$

/MW

h)

Distribution

Transmission

Generating Capacity

DRIPE

Avoided RPS

Carbon Dioxide Emissions

Risk

Reserves/AncillaryServices

Energy

* In Georgia, where publicly available data did not include avoided transmission and distribution system values, the time-varying value of efficiency appears much lower for all measures evaluated. Avoided transmission and distribution costs are included in Georgia Power’s energy efficiency evaluations, but are not a part of the publicly available PURPA avoided cost filing.

*

Page 20: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Residential Central Air-ConditioningMeasure 2 of 5

20

$0

$50

$100

$150

$200

$250

$300

$350

$400

Northwest California Massachusetts Georgia

Re

sou

rce

Val

ue

(2

01

6$

/MW

h)

Distribution

Transmission

Generating Capacity

DRIPE

Avoided RPS

Carbon Dioxide Emissions

Risk

Reserves/Ancillary Services

Energy

* In Georgia, where publicly available data did not include avoided transmission and distribution system values, the time-varying value of efficiency appears much lower for all measures evaluated. Avoided transmission and distribution costs are included in Georgia Power’s energy efficiency evaluations, but are not a part of the publicly available PURPA avoided cost filing.

*

Page 21: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Residential Hot WaterMeasure 3 of 5

21

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Northwest California Massachusetts Georgia

Re

sou

rce

Val

ue

(2

01

6$

/MW

h)

Distribution

Transmission

Generating Capacity

DRIPE

Avoided RPS

Carbon Dioxide Emissions

Risk

Reserves/Ancillary Services

Energy

* In Georgia, where publicly available data did not include avoided transmission and distribution system values, the time-varying value of efficiency appears much lower for all measures evaluated. Avoided transmission and distribution costs are included in Georgia Power’s energy efficiency evaluations, but are not a part of the publicly available PURPA avoided cost filing.

*

Page 22: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Residential LightingMeasure 4 of 5

22

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

Northwest California Massachusetts Georgia

Re

sou

rce

Val

ue

(2

01

6$

/MW

h)

Distribution

Transmission

Generating Capacity

DRIPE

Avoided RPS

Carbon Dioxide Emissions

Risk

Reserves/Ancillary Services

Energy

* In Georgia, where publicly available data did not include avoided transmission and distribution system values, the time-varying value of efficiency appears much lower for all measures evaluated. Avoided transmission and distribution costs are included in Georgia Power’s energy efficiency evaluations, but are not a part of the publicly available PURPA avoided cost filing.

*

Page 23: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Commercial LightingMeasure 5 of 5

23

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

Northwest California Massachusetts Georgia

Re

sou

rce

Val

ue

(2

01

6$

/MW

h)

Distribution

Transmission

Generating Capacity

DRIPE

Avoided RPS

Carbon Dioxide Emissions

Risk

Reserves/Ancillary Services

Energy

* In Georgia, where publicly available data did not include avoided transmission and distribution system values, the time-varying value of efficiency appears much lower for all measures evaluated. Avoided transmission and distribution costs are included in Georgia Power’s energy efficiency evaluations, but are not a part of the publicly available PURPA avoided cost filing.

*

Page 24: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Conclusions

Electric energy efficiency resources save energy and may reduce peak

demand.

The time-varying value of energy efficiency measures varies across the

locations studied because of physical and operational characteristics of the

individual utility system, the time periods that the savings from measures

occur and differences in the value and components of avoided cost

considered.

Across the four locations studied, some of the largest capacity benefits from

energy efficiency are derived from the deferral of transmission and

distribution system infrastructure upgrades. However, the deferred cost of

transmission and distribution infrastructure upgrades also exhibited the

greatest range in value of all the components of avoided cost across the

locations studied.

Of the five measures studied, residential air-conditioning has the most

significant added value when the total time-varying value is considered in

summer peaking systems.

24

Page 25: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Conclusions (cont’d) The increased use of distributed energy resources and the addition of

major new electricity consuming end-uses are anticipated to significantly

alter the load shape of many utility systems in the future.

Data used to estimate the impact of energy efficiency measures on

electric system peak demands will need to be updated periodically to

accurately reflect the value of savings as system load shapes change.

Publicly available components of electric system costs avoided through

energy efficiency are not uniform across states and utilities. Inclusion or

exclusion of these components and differences in their value affect

estimates of the time-varying value of efficiency.

Publicly available data on end-use load and energy savings shapes are

limited, concentrated regionally, and should be expanded.

25

Page 26: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Utility, State or Regional Recommendations

Collect metered data on a variety of end-use load and energy

savings shapes for the state or region at least at the hourly

level and make the data publicly available in a format that can

be readily used in planning processes.

Account for variations in the calculation of time-varying value of

energy savings and avoided costs.

Periodically update estimates of the impact of energy efficiency

measures on utility system peak demands to accurately reflect

changing system load shapes.

Study transferability of end-use load shapes from one climate

zone to another climate zone.

26

Page 27: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Regional or National Recommendations

Identify best practices for establishing the time-varying value

of energy efficiency in integrated resource planning and

demand-side management planning to ensure investment in

a least-cost, reliable electric system.

Establish protocols for consistent methods and procedures

for developing end-use load shapes and load shapes of

efficiency measures.

Establish common methods for assessing the time-varying

value of energy savings, including values that are often

missing such as deferred or avoided T&D investments.

27

Page 28: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Lisa Schwartz

[email protected]

510-486-6315

Visit our website at: http://emp.lbl.gov/

Click here to join the LBNL Electricity Markets and Policy Group

mailing list and stay up to date on our publications, webinars

and other events. Follow the Electricity Markets & Policy Group

on Twitter @BerkeleyLabEMP

Chuck Goldman

[email protected]

510-486-4637

Natalie Mims

[email protected]

510-486-7584

Tom Eckman

[email protected]

503-803-5047

Page 29: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Time-Varying Value of Energy Efficiency

Natalie Mims, Tom Eckman and Chuck Goldman

July 10, 2017

This work was supported by the DOE Office of Energy Efficiency & Renewable Energy

Building Technologies Office under Lawrence Berkeley National Laboratory Contract No. DE-

AC02-05CH11231.

Page 30: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Project Objective and Scope

Advance consideration of the value of demand-side energy

efficiency measures during times of peak electricity demand and

high electricity prices through quantitative examples of the value of

energy efficiency at times of system peak

Increase awareness of available end-use load research and its

application to time-varying valuation of energy efficiency

Increase awareness of the gaps in, and need for, research on

energy savings shape

Recommend methodology(ies) to appropriately value energy

efficiency for meeting peak demand

Consider changes to efficiency valuation methodologies to address

the changing shape of net load (total electric demand in the system

minus wind and solar)

30

Page 31: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Study Approach

• Summarize state of end-use load research and existing analyses that quantify

benefits of electric efficiency measures and programs during peak demand and high

electricity prices

• Document time-varying energy and demand impacts of 5 measures in 4 locations:

Measures

Exit sign (Flat load shape)

Commercial lighting

Residential lighting

Residential water heater

Residential air conditioning

State/Region

Pacific Northwest

California

Massachusetts

Georgia

• Use publicly available avoided costs from each location and one of the following

methodologies:

1. Use seasonal system peaks, coincidence factors and diversity factors to

determine peak/off-peak savings and apply seasonal avoided costs to savings, or

2. Apply hourly avoided costs to each measure load shape to calculate the time-

varying value of measure.

31

Page 32: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

End-use Load Shapes and Energy Savings Shapes

Definitions:

End-use load shape: Hourly consumption of an end-use (e.g., residential

lighting, commercial HVAC) over the course of one year.

Energy savings shape: The difference between the hourly use of

electricity in the baseline condition and the hourly use post-installation of

the energy efficiency measure (e.g., the difference between the hourly

consumption of an electric resistance water heater and a heat pump

water heater) over the course of one year.

The time pattern of savings from the substitution of a more efficient

technology does not always mimic the underlying end-use.

Examples:

Controls can reduce hours of operation (e.g., occupancy sensor or

changing duty cycle), resulting in the shape of savings being different

than the underlying end-use.

Improved end-use technology and controls (daylighting controls, sensors

and software to power down computers when not in use)

32

Page 33: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

33

End Use vs. Energy Savings Load Shapes

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Pe

rce

nt

of

Ave

rage

An

nu

al P

eak

Ho

ur

Load

/Sav

ings

Hour Ending

Water Heating Load Shape

Heat Pump Water Heater Savings Shape

Page 34: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

2016 System Load Shapes

0%

20%

40%

60%

80%

100%

120%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Pe

rce

nt

of

Pe

ak M

on

th D

em

and

Pacific Northwest

California

Massachusetts

Georgia

34

Page 35: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Pacific Northwest System Shapes and End-Use

Load Shapes

35

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Pe

rce

nt

of

Pe

ak W

inte

r D

ay H

ou

rly

De

man

d

Page 36: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Pacific Northwest System Shapes and End-Use

Load Shapes

36

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Pacific Northwest System Shape Exit Sign

Pe

rce

nt

of

Pe

ak W

inte

r D

ay H

ou

rly

De

man

d

Page 37: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Pacific Northwest System Shapes and End-Use

Load Shapes

37

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Pacific Northwest System Shape Exit Sign Res. Air-Conditioning

Pe

rce

nt

of

Pe

ak W

inte

r D

ay H

ou

rly

De

man

d

Page 38: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Pacific Northwest System Shapes and End-Use

Load Shapes

38

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Pacific Northwest System Shape Exit Sign Res. Air-Conditioning Res. Hot Water

Pe

rce

nt

of

Pe

ak W

inte

r D

ay H

ou

rly

De

man

d

Page 39: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Pacific Northwest System Shapes and End-Use

Load Shapes

39

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Pacific Northwest System Shape Exit Sign Res. Air-Conditioning Res. Hot Water Res. Lighting

Pe

rce

nt

of

Pe

ak W

inte

r D

ay H

ou

rly

De

man

d

Page 40: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Pacific Northwest System Shapes and End-Use

Load Shapes

40

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Pacific Northwest System Shape Exit Sign Res. Air-Conditioning

Res. Hot Water Res. Lighting Com. Lighting

Pe

rce

nt

of

Pe

ak W

inte

r D

ay H

ou

rly

De

man

d

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California System Shape and End-Use Load Shapes

41

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

CAISO System Exit Sign Res. Air-Conditioning

Res. Hot Water Res. Light Com. Light

Pe

rce

nt

of

Pe

ak S

um

me

r D

ay H

ou

rly

De

man

d

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Massachusetts System Shape and End-Use Load Shapes

42

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

ISO-NE Massachussetts System Exit Sign Res. Air-Conditioning

Res. Hot Water Res. Light Com. Light

Pe

rce

nt

of

Pe

ak S

um

me

r D

ay H

ou

rly

De

man

d

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Georgia System Shape and End-Use Load Shapes

43

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Georgia System Shape Exit Sign Res. Air-Conditioning

Res. Hot Water Res. Lighting Com. Lighting

Pe

rce

nt

of

Pe

ak S

um

me

r D

ay H

ou

rly

De

man

d

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Comparing Total Utility System Value to EnergyValue

44

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Rat

io o

f Ti

me

-Var

yin

g V

alu

e t

o E

ne

rgy

Val

ue

Exit Sign(Flat/UniformAcross All Hours)

ResidentialWater Heating

ResidentialCentral AirConditioning

ResidentialLighting

CommercialLighting

Northwest California Massachusetts Georgia*Notes: The flat load shape is an exit sign. Energy value includes: energy, risk, carbon dioxide emissions, avoided RPS and DRIPE, as applicable. Total time-varying value includes all energy values and capacity, transmission, distribution and spinning reserves. Ratios are calculated by dividing total time-varying values by energy-only values.* In Georgia, where publicly available data did not include avoided transmission and distribution system values, the time-varying value of efficiency appears much lower for all measures evaluated. Avoided transmission and distribution costs are included in Georgia Power’s energy efficiency evaluations, but are not a part of the publicly available PURPA avoided cost filing.

Page 45: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Exit Sign (flat load shape)Measure 1 of 5

45

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Northwest California Massachusetts Georgia

Re

sou

rce

Val

ue

(2

01

6$

/MW

h)

Distribution

Transmission

Generating Capacity

DRIPE

Avoided RPS

Carbon Dioxide Emissions

Risk

Reserves/AncillaryServices

Energy

* In Georgia, where publicly available data did not include avoided transmission and distribution system values, the time-varying value of efficiency appears much lower for all measures evaluated. Avoided transmission and distribution costs are included in Georgia Power’s energy efficiency evaluations, but are not a part of the publicly available PURPA avoided cost filing.

*

Page 46: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Residential Central Air-ConditioningMeasure 2 of 5

46

$0

$50

$100

$150

$200

$250

$300

$350

$400

Northwest California Massachusetts Georgia

Re

sou

rce

Val

ue

(2

01

6$

/MW

h)

Distribution

Transmission

Generating Capacity

DRIPE

Avoided RPS

Carbon Dioxide Emissions

Risk

Reserves/Ancillary Services

Energy

* In Georgia, where publicly available data did not include avoided transmission and distribution system values, the time-varying value of efficiency appears much lower for all measures evaluated. Avoided transmission and distribution costs are included in Georgia Power’s energy efficiency evaluations, but are not a part of the publicly available PURPA avoided cost filing.

*

Page 47: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Residential Hot WaterMeasure 3 of 5

47

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Northwest California Massachusetts Georgia

Re

sou

rce

Val

ue

(2

01

6$

/MW

h)

Distribution

Transmission

Generating Capacity

DRIPE

Avoided RPS

Carbon Dioxide Emissions

Risk

Reserves/Ancillary Services

Energy

* In Georgia, where publicly available data did not include avoided transmission and distribution system values, the time-varying value of efficiency appears much lower for all measures evaluated. Avoided transmission and distribution costs are included in Georgia Power’s energy efficiency evaluations, but are not a part of the publicly available PURPA avoided cost filing.

*

Page 48: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Residential LightingMeasure 4 of 5

48

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

Northwest California Massachusetts Georgia

Re

sou

rce

Val

ue

(2

01

6$

/MW

h)

Distribution

Transmission

Generating Capacity

DRIPE

Avoided RPS

Carbon Dioxide Emissions

Risk

Reserves/Ancillary Services

Energy

* In Georgia, where publicly available data did not include avoided transmission and distribution system values, the time-varying value of efficiency appears much lower for all measures evaluated. Avoided transmission and distribution costs are included in Georgia Power’s energy efficiency evaluations, but are not a part of the publicly available PURPA avoided cost filing.

*

Page 49: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Commercial LightingMeasure 5 of 5

49

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

Northwest California Massachusetts Georgia

Re

sou

rce

Val

ue

(2

01

6$

/MW

h)

Distribution

Transmission

Generating Capacity

DRIPE

Avoided RPS

Carbon Dioxide Emissions

Risk

Reserves/Ancillary Services

Energy

* In Georgia, where publicly available data did not include avoided transmission and distribution system values, the time-varying value of efficiency appears much lower for all measures evaluated. Avoided transmission and distribution costs are included in Georgia Power’s energy efficiency evaluations, but are not a part of the publicly available PURPA avoided cost filing.

*

Page 50: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Conclusions

Electric energy efficiency resources save energy and may reduce peak

demand.

The time-varying value of energy efficiency measures varies across the

locations studied because of physical and operational characteristics of the

individual utility system, the time periods that the savings from measures

occur and differences in the value and components of avoided cost

considered.

Across the four locations studied, some of the largest capacity benefits from

energy efficiency are derived from the deferral of transmission and

distribution system infrastructure upgrades. However, the deferred cost of

transmission and distribution infrastructure upgrades also exhibited the

greatest range in value of all the components of avoided cost across the

locations studied.

Of the five measures studied, residential air-conditioning has the most

significant added value when the total time-varying value is considered in

summer peaking systems.

50

Page 51: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Conclusions (cont’d) The increased use of distributed energy resources and the addition of

major new electricity consuming end-uses are anticipated to significantly

alter the load shape of many utility systems in the future.

Data used to estimate the impact of energy efficiency measures on

electric system peak demands will need to be updated periodically to

accurately reflect the value of savings as system load shapes change.

Publicly available components of electric system costs avoided through

energy efficiency are not uniform across states and utilities. Inclusion or

exclusion of these components and differences in their value affect

estimates of the time-varying value of efficiency.

Publicly available data on end-use load and energy savings shapes are

limited, concentrated regionally, and should be expanded.

51

Page 52: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Utility, State or Regional Recommendations

Collect metered data on a variety of end-use load and energy

savings shapes for the state or region at least at the hourly

level and make the data publicly available in a format that can

be readily used in planning processes.

Account for variations in the calculation of time-varying value of

energy savings and avoided costs.

Periodically update estimates of the impact of energy efficiency

measures on utility system peak demands to accurately reflect

changing system load shapes.

Study transferability of end-use load shapes from one climate

zone to another climate zone.

52

Page 53: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Regional or National Recommendations

Identify best practices for establishing the time-varying value

of energy efficiency in integrated resource planning and

demand-side management planning to ensure investment in

a least-cost, reliable electric system.

Establish protocols for consistent methods and procedures

for developing end-use load shapes and load shapes of

efficiency measures.

Establish common methods for assessing the time-varying

value of energy savings, including values that are often

missing such as deferred or avoided T&D investments.

53

Page 54: Michigan Public Service Commission Integrated Resource … · 2017. 8. 9. · End-use Load Shapes and Energy Savings Shapes Definitions: End-use load shape: Hourly consumption of

Lisa Schwartz

[email protected]

510-486-6315

Visit our website at: http://emp.lbl.gov/

Click here to join the LBNL Electricity Markets and Policy Group

mailing list and stay up to date on our publications, webinars

and other events. Follow the Electricity Markets & Policy Group

on Twitter @BerkeleyLabEMP

Chuck Goldman

[email protected]

510-486-4637

Natalie Mims

[email protected]

510-486-7584

Tom Eckman

[email protected]

503-803-5047