Conservation and Energy Efficiency: Recent Performance, Future Potential

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Conservation and Energy Efficiency Recent
Performance, Future Potential

• Jeff Schlegel
• Consultant to the
• CT Energy Conservation Management Board
• Connecticuts Energy Future
• December 2, 2004

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Background

• Connecticut Conservation and Load Management Fund
  (CLM) was created by the State Legislature to
  provide cost-effective energy conservation
  programs
• CLM programs are administered by the electric
  distribution utilities (CLP and UI)
• Energy Conservation Management Board (ECMB) was
  created by the Legislature to advise and assist
  input review function
• Department of Public Utility Control (DPUC) is
  responsible for final approval of the CLM
  programs

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Energy Efficiency (or Energy Conservation)

• Products, services, or practices aimed at
  reducing the energy used by specific end-use
  devices and systems, by substituting technically
  more advanced equipment or practices to produce
  the same or improved level of service with less
  energy use
• Energy efficiency is NOT curtailment
• Benefits customers, the electric system, the
  environment, and the economy
• CLM also funds load management and supports load
  response (though not addressed in this
  presentation)

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CLM Expenditures and Benefits

• 89 million/yr collected from ratepayers
• CLM expenditures range from about 89 million in
  full funding years (2000-01) to about 60 million
  in recent years (balance was allocated to deficit
  reduction, DPW)
• 60 MW of energy efficiency resources provided in
  a full funding year
• Reduces annual load growth by 50-80
• Energy efficiency is the least cost resource
  .02 to .05 per lifetime kWh, delivered
• Provides 3 in benefits per 1 invested

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CLM Funding
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Potential for Energy Efficiency

• Study for the Connecticut ECMB
• Estimate the achievable cost-effective potential
  for energy conservation and energy efficiency
  resources over the 2003-2012 period in three
  geographic areas
• Connecticut statewide (CLP and UI)
• The 52 towns in constrained SW CT
• The 16 critical constrained towns in SW CT
  (Norwalk-Stamford area)

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Focus and Scope of the Study

• Maximum achievable, cost-effective potential (not
  the technical potential)
• Energy efficiency only (not load management or
  load response)
• Limited to cost-effective options that are
  commercially available now
• Residential, commercial, industrial sectors

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Study Findings

• Very large energy efficiency potential remaining
  opportunities in all sectors
• Capturing the achievable cost-effective potential
  for energy efficiency would reduce peak demand by
  13 (908 MW) and electric energy use by 13
  (4,466 GWh) by 2012
• Would result in (approx.) zero growth in electric
  load from 2003 through 2012
• Net benefits of 1.8 billion

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Capturing Energy Efficiency Potential is Very
Cost-Effective
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Conclusions

• Energy efficiency benefits customers, the
  electric system, the environment, and the
  economy 3 in benefits per 1 invested
• Very large energy efficiency potential remaining
  significant cost-effective opportunities in all
  sectors
• ISE potential study found similar results
• Connecticut should increase energy efficiency
  efforts to capture the benefits