efficiency Flashcards
examples of energy efficiency
CFLs, LED traffic signals, LCD computer screens
rates are to bills as conservation is to_
efficiency!
3 main benefits of EE
economic, electric/NG utility system, environ/public health
economic benefits of EE (4)
1) lower utility bills, 2)better energy services, 3)more productive/competitive economy, 4)long-lasting assistance to low-income customers
efficiency programs provide __ dollars in benefits for ___ dollars invested
2 dollars in benefits for every dollar invested
job related econ benefits of EE
more indirect jobs from savings households/businesses use more productively. Also, for every new job forgone in FF for EE, >50 new jobs created in economy (what!!)
utility system benefits (4)
1) avoided generation/transmission/distribution, 2) reliable 3)modular–can be added to system incrementally 4)can help calm crises
avoided air pollution/health problems
so2, hg, nox, co2, etc
EE and water use
EE avoids water used by power plants, and saving water saves energy (think how CA pumps/treats tons of water everywhere)
potential for efficiency
could cut energy consumption by 23% by 2020; save consumers $700 billion; create up to 900,000 direct jobs (+indirect)
extending leading EE programs to nation would..
cut demand growth in half, save $20 billion/year on bills, have $250 bil in societal benefits, avoid 30,000MW and 400mil tons CO2/year
barriers to full potential
consumer barriers (market failures), utility barriers (regulatory barriers)
market failures
- prices don_t reflect societal cost. 2. provides a public good 3. imperfect information 4. bounded rationality 5. split incentives
market barriers
- payback gap 7. access to capital 8. limited product availability 9. organizational practices 10. perceived risk of performance
key tools to overcome barriers
RD&D, EE programs, standards
research, development & demonstration
examples: LED lights, cool roofs, solar rooftop shingles, natural cooling ventilation
energy efficiency programs
residential retrofit; residential new construction; non residential retrofit/new construct; emerging tech, codes, standards; marketing, outreach, training
building codes/appliance standards
min standards for new buildings/appliances–much cheaper than retrofitting later; building codes set at state or local level; appliance efficiency set by federal
barriers utilities face
lack of legal/regulatory/political support; inadequate cost recovery to fund programs; profit opportunities only for supply side resources, not efficiency; lack of info on programs or best practices
key policies for efficiency programs
1) make cost effective energy top priority resource 2)align utility business models w/ customer interests in affordable energy services 3) conduct independent evaluation and measurement of energy savings 4) ensure EE portfolio addresses major uses of energy by residential/business customers
cost-effectiveness tests
participant cost test, program administrator cost test, ratepayer impact measure, total resource cost test, societal cost test
integrated resource plannign steps
1) forecast demand 2)assess existing resources 3) analyze cost, risk, environ impacts of demand/supply resources 4)choose portfolio scenarios 5)test portfolio scenarios under various futures 6)select best portfolio
3 ways EE is integrated into resource plans
- EE is treated equivalent to supply-side resources; 2. EE saving targets are developed from assessment of potential for efficiency based on assumptions about avoided costs–subtracted from demand forecast 3. policy makers set targets based on best practices
reforming utility regulation
allow utilities to recover incurred costs of EE; remove disincentives–break link between recovery of fixed costs & sales; for IOUs, provide performance based shareholder incentives
