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1 NORTHWEST ENERGY EFFICIENCY ALLIANCE Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013

Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

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Page 1: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

1 NORTHWEST ENERGY EFFICIENCY ALLIANCE

Market Transformation: Bridging the Gap

Between Theory and Practice

Susan E. StrattonMarch 26, 2013

Page 2: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

2

About NEEA

Market Transformation in the NW

Emerging Technologies

Barriers and Challenges

Today’s Talk

Page 3: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

3

About NEEA

Accelerating energy efficiency in partnership with Northwest utilities

Page 4: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

444

NEEA’s Role in Regional Partnership

“UPSTREAM”

“DOWNSTREAM”

LOCAL REGIONAL

Page 5: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

5

Key Differences in Efficiency Procurement

End-user focused

Incentives provided

directly to consumers

1:1 correspondence

between incentives and

customer actions

Widget-based

Immediate savings

Market focused

“Upstream” incentives

Longer time horizon. Diffuse

relationship between actions

and results

Decisions based on business

case for efficiency (I should

do this myself!)

Fill the pipeline

Direct Acquisition Vs. Market Transformation

Page 6: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

6

About NEEA

Market Transformation in the NW

Emerging Technologies

Barriers and Challenges

Today’s Talk

Page 7: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

7

How NEEA Works

IDENTIFY BARRIER MARKET INTERVENTION MARKET TRANSFORMED

NEEA identifies

barriers that impede

market adoption of

energy-efficient

products, services

and practices.

NEEA strategically

intervenes to remove

market barriers in

collaboration with our

partners.

The market is

transformed and

continues to

accelerate without

further intervention.

Page 8: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

888

Natural

Baseline

Mark

et

Sh

are

Time

Transformation

Ma

rke

t

Dollars

Invested

How We Work

Codes &

Standards

Early Market Adoption Mainstream Market AdoptionEmerging Technologies

Page 9: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

9

Dollars

Invested

Market

Transformation

Accelerating Market Adoption

Natural

Baseline

Ma

rke

t S

ha

re

Time

Savings

Locked in

Accelerating Market Adoption

Dollars

Invested

Natural

Baseline

Ma

rke

t S

ha

re

Time

Savings

Locked in

Page 10: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

10

1631

203

1229

0

952738

NEEA Stage Gates

Concept

Development

Assessment

& ValidationStrategy

DevelopmentImplementation

Super Efficient Dryers

HPWH - Split System

Combined Space & Water

Heating

Windows 2.0

Home Energy Mgmt

Economizers

Manufactured Housing

Commercial Lighting I&II

Business IT

Advanced RTU

Earth Advantage Rating

Refrigeration Technology

Industrial Pumping Market

Efficient Power Supplies

Low Cost Energy Monitoring

Supplier SEM

HPWH

Comm. Lighting

Comm. Real

Estate

EBR

Irrigation

RETA

Homes

BOC-E

TVs

DHPs

Codes

Standards

Healthcare

80 Plus

Food Process.

Pro

jects

Verdiem

Dishwashers

Clothes washers

Refrigerators

Windows

Lighting (CFL)

Commissioning

Grocery

Building Operations,

BOC

Energy Mngmt Cert

Drive Power

Evaporator Fan VFD

BacGen, DEI,

AM400, Magna Drive

SAV-Air

Next Step Home

Lum. Lighting

Controls

Streetlights

Small/ Med

Industrials

Opportunity

Discovery

To

tal R

egio

na

l

Sa

vin

gs (

aM

W)2

Long-term

Monitoring

Savings estimates before ‘Implementation’ represent 6th Power Plan 20-year achievable potential;

aMW after ‘Strategy Development’ are NEEA 20 year Total Regional Savings forecasts

Status – End of Q4 2012

Page 11: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

11

History of Market Transformation

CFL sales

Top 18 Million

annually

ENERGY STAR

Windows Market

Share Hits 75%

VFD cold

Storage Fans

Reduce Energy

Use

by 61-86%

Efficient Washers

50% Market Share

NEEA Pioneers

80PLUS

BacGen

Reduces

Wastewater

Treatment

Energy Use

by 50%

Northwest

ENERGY STAR

New Homes

Specifications

Food processors

commit 50%

energy reduction

goal

13,000 DHPs

installed at a

savings of

40,500,000

kWh per year.

Strategic energy

management

adopted in

healthcare (30%

of “beds”)

Energy Forward

Campaign. TVs

60% more

efficient than 3

years ago.

1997Northwest

Energy

Efficiency

Alliance

Launched

1998 2000 2001 2004 2005 2007 2008 2009 2010

Page 12: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

12

CO

NF

US

ION

IDENTIFY BARRIER MARKET INTERVENTION

CL

AR

ITY

Changing Manufacturers’ Behavior

MARKET TRANSFORMED

SU

CC

ES

S

The NWFPA set an

industry-wide goal to

reduce energy intensity by

25% in 10years and 50% in 20 years.

More than

15% of

large Northwest

food processors

are implementing

SEM.

Page 13: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

13

MARKET INTERVENTION

CL

AR

ITY

IDENTIFY BARRIER

CO

NF

US

ION

CO

NF

US

ION

Tuning into Energy Efficient TVs

MARKET TRANSFORMED

SU

CC

ES

S

Retailers representing

84% of TVs sold

in the Northwest promote

Energy Forward TVs

The market responded

and today TVs are

60% more efficient

than just three

years ago.

Page 14: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

14

How Much Has the Region Saved?

1997 2012F

887 aMW Savings

2010–2014 Funded Initiatives

2005–2009 Funded Initiatives

Previously Funded Initiatives

aM

W E

ne

rgy S

avin

gs

Page 15: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

15

About NEEA

Market Transformation in the NW

Emerging Technologies

Barriers and Challenges

Today’s Talk

Page 16: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

16

Filling the ET Pipeline Together

Natural

Baseline

Ma

rke

t S

ha

re

Time

Market

Transformation

Savings

Locked in

Dollars

Invested

You are here:

Page 17: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

17

Working with the Region to Deliver Energy Savings

‘In Process’ Goal:

Readied for

Market Goal:

Page 18: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

181818

Emerging Technologies – A look Ahead 2013

Four Technologies with significant savings

impacts for 2015 and beyond:

+

Page 19: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

19

Barriers

Mismatch of timing of utility EE investments vs benefits

Flat/declining loads put pressure on all utilities to reduce EE investment for short term cost reduction

Misperception that natural gas fired generation is less costly than energy efficiency.

NWPCC Analysis, 2013

Page 20: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

20

Challenges

Complexity

Cost-effectiveness

Creating value from EE to

address DR, peak,

intermittent resources

Long-term perspective in a

short-term environment

Page 21: Market Transformation: Bridging the Gap Between Theory and ... · Market Transformation: Bridging the Gap Between Theory and Practice Susan E. Stratton March 26, 2013. 2 About NEEA

2121

Filling the

Energy

Efficiency

Pipeline

Accelerating

Market

Adoption

Delivering

Regional

Advantage

Thank You!

Susan E. Stratton, Executive Director

[email protected]

Questions & Comments