sociodemographics & sustainability value propositions in dsm programs

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DNV GL © 2014 SAFER, SMARTER, GREENER DNV GL © 2014 SAFER, SMARTER, GREENER DNV GL © 2014 Ungraded Monday, October 19, 2015 Alexander Novie ENERGY Sociodemographics & Sustainability Value Propositions in DSM Programs 1 BECC 2015 Conference

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Page 1: Sociodemographics & Sustainability Value Propositions in DSM Programs

DNV GL © 2014 SAFER, SMARTER, GREENER DNV GL © 2014 SAFER, SMARTER, GREENER DNV GL © 2014

Ungraded

Monday, October 19, 2015

Alexander Novie

ENERGY

Sociodemographics & Sustainability Value Propositions in DSM Programs

1

BECC 2015 Conference

Page 2: Sociodemographics & Sustainability Value Propositions in DSM Programs

DNV GL © 2014

Outline

Equity in mature EE/DSM programs • Articulating sustainability value propositions to diverse audiences

Sociodemographic approach • Increasing diversity and identifying opportunities

New policy levers in CPP/CEIP • Using EE/DSM as a resource for “vulnerable” communities

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Theoretical frameworks & background

Social and behavioral aspects of energy use

•“Where and who are the people in energy policies?” vs. PTEM

•Use and behavior patterns based on socioeconomic, lifestyle, race/ethnicity and gender

Analyzing demographics in EE/DSM

•Participation equity

•Applying residential segmentation to commercial energy users

Looking at unique needs of vulnerable groups

•Local market nuances used to define “hard-to-reach” populations

•Value propositions & EE as economic development tool

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DSM program participation: equity & engagement

DSM programs are maturing

• Most of the low-hanging fruit has been eaten

Utilities are shifting their focus

• “Meeting goal” broader strategies of customer engagement and satisfaction

• Using EE/DSM as economic development tool

A nuanced view of equity is key

• Sociodemographic overlays can provide additional insight to the traditional focus on customer load, size and market verticals

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Sociodemographics: what factors?

Culture, ethnicity and race

• Different notions of trust with energy providers and installation contractors

Language matters

• Non-English speaking households are much less likely to be aware of potential energy-saving appliances (Murray & Mills 2011)

Urbanity matters

• Rural facilities often have different consumption profiles; reach of contractor network and campaigns

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Changing sociodemographics: increasing diversity

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Source: Pew Research Center (2015)

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Total population & Hispanic/Latino

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25%

35%

13% 10% 10%

46%

82%

25%

28%

43%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

AZ NV NM CA All US

Percent Population Increase from 2000 - 2010: Total & Hispanic or Latino

Total Population Hispanic/Latino Population

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Foreign-born persons since 1980

8

0

5

10

15

20

25

30

NM AZ NV CA US NM AZ NV CA US NM AZ NV CA US NM AZ NV CA US

1980 1990 2000 2010

% o

f P

op

ula

tio

n t

hat

is F

oreig

n-B

orn

Growth in Foreign-Born Populations in NM, AZ, NV, & CA: 1980-2010

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Public opinion: views on the climate problem

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Source: Pew Research Center (2015)

70

56

44

50

19

26

22

23

11

17

31

25

Hispanic/Latino

African American

White

U.S. Adults

Because of human activity Because of natural patterns

There is no solid evidence

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Public opinion: support for climate initiatives

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Source: PPIC (2015)

76% 75%

71%

65%

African American Latinos Asians Whites

Support for GHG reduction in California

(SB-32)

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Other “hard-to-reach” in SW

Low-income

Minority-owned firms

Older adults

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Tucson area: kWh savings & per-capita income

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Identifying opportunity: small businesses in Southern Arizona

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Small Businesses & Program Potential in Santa Cruz County, Arizona

Zip Code Total C&I

Businesses

Businesses

with 1 to 4

Employees

Businesses

with 5 to 9

Employees

Ratio of

Businesses

<10

Employees

Projects

Completed

ITD

Potential

Market

Remaining

85621 725 381 166 75% 73 86%

85646 74 51 12 85% 5 92%

85648 197 104 34 70% 16 88%

Santa Cruz

Summary 996 536 212 77% 134 87%

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Takeaways for DSM programs

Understanding the communities within the marketplaces

• Defining “hard-to-reach” groups to focus on equity & engagement

Analyzing data-driven marketing

and outreach

• Digging deeper into data analytics and looking at the “who” and “why” behind the models

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Question and refine how sustainability value propositions are communicated

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Broader implications: CPP & CEIP

Clean Power Plan (CPP) framed in environmental justice language

• Resources for “vulnerable” and “overburdened” communities

Clean Energy Investment Program (CEIP)

• 2-1 ERCs for EE projects in low-income and communities of color

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2-1 in 2020

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Areas of future research

How do we define low-income and communities of color for program design?

Rethinking program eligibility?

• Low-income individuals are already overburdened by paperwork!

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Remember the people behind the data

Page 18: Sociodemographics & Sustainability Value Propositions in DSM Programs

DNV GL © 2014

SAFER, SMARTER, GREENER

www.dnvgl.com

SAFER, SMARTER, GREENER

www.dnvgl.com

Thank you! [email protected]

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