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BARRIERS TO ENERGY EFFICIENCY
Presentation by Abhilash Kantamneni
IN COMMERCIAL ANDSMALL INDUSTRIAL BUSINESSES IN THE UPPER PENINSULA
Challenges - Diversity in rates, policy & zoning
Active BusinessesJobs
Industrial ParksUtility service territories
76
701,715
Generating Economic Development
Active BusinessesJobs
Industrial ParksUtility service territories
76
701,715
Generating Economic Development
1)Analyze the cost and feasibility of implementing
• Solar, Wind, Natural Gas, Retrofitting/Energy
Efficiency, Industrial Waste Recapture, Geothermal,
and Biomass.
2)Recommend policy changes and public investments
3)Suggest improvements to development procedures
4)Determine environmental impacts of implementation
• floodplains, wetlands, endangered species,
sensitive habitats, environmental contamination.
Scope of Work
Renewable Energy Standard
(RES)
10% of all retail electric sales for all
utilities in MI to come from renewable
sources
Energy Optimization Program (EO)
Authorizes EO surcharge on monthly
bills to finance customer Energy
Efficiency upgrades
Net Metering Program
On site renewable electric generation
with credits for monthly excess
generation
7
Challenges - Dynamic legislative landscape
1)Analyze the cost and feasibility of implementing
• Solar, Wind, Natural Gas, Retrofitting/Energy
Efficiency, Industrial Waste Recapture, Geothermal,
and Biomass.
2)Recommend policy changes and public investments
3)Suggest improvements to development procedures
4)Determine environmental impacts of implementation
• floodplains, wetlands, endangered species,
sensitive habitats, environmental contamination.
Scope of Work
1) Snapshot of the energy infrastructure, rates, needs,
challenges and opportunities.
2) Create a business case for energy savings
3) Make policy agnostic recommendations for industrial
park managers, EDC and LUGs
New Scope of Work
Barriers to Energy Efficiency in SME
• Imperfect information• Transaction costs• Risk & Uncertainty• Access to capital• Bounded rationality• Split incentives
Drivers for Energy Efficiency in SME
• Targeted intervention• Access to experts• Management culture• Internal competency
Additional Findings
• Benefits of Municipal Utilities
• Not all EDOs are created equal• Not all EO programs are created equal
WE
WPS
Recommendations
• Monitor the policy & technical landscape, align regional objectives with state and federal goals
• Help SME understand their energy bills & costs• Create coalitions to leverage economies of scale for ESCO services
• Work with LUG to create funding tools like PACE• Assist businesses secure representation on boards of utilities that lack regulatory oversight
References
• Cagno, E., & Trianni, A. (2013). Applied Energy• Schleich, J., & Gruber, E. (2008). Energy Economics
• Nagesha, N., and Patil Balachandra (2006) Energy
WE
WPS
1. High demand, low energy
2. High demand, high energy
3. Low demand, low energy
4. Low demand, high energy
WE
WPS
