Achieving Large Scale Energy Efficiency

Achieving Large Scale Energy Efficiency A Panel Discussion Moderated by

Steven Meyers Rational Energy Network

MainStreet Efficiency Webinar Series 20 October 2009, 2:00 PM EDT

Steven Meyers 512-796-2242 [email protected] www.rationalenergy.net www.mainstreetefficiency.com www.mainstreetefficiency.com

Rational Energy Network

Achieving Large Scale Energy Efficiency MODERATED BY

Dulcey Simpkins Senior Research Associate E source

Steven Meyers President and Founder Rational Energy Network

Weatherization

[email protected] www.rationalenergy.net 512-796-2242

Carter Williams Managing Partner OI Ventures

Brian Reilly Commissioner of Economic Development City of Buffalo, NY

Christine Herbert Vice-President Good Company Associates

Rational Energy Network

www.mainstreetefficiency.com

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Some recent observations “$130 billion in annual savings from unrealized energy efficiency opportunities…” Unlocking Energy Efficiency in the US Economy, McKinsey & Company http://www.mckinsey.com/clientservicericpowernaturalgas/downloads/US_energy_efficiency_full_report.pdf

“The annual growth rate of electricity demand can be reduced by up to 36% through 2030.” Assessment of Achievable Potential from Energy Efficiency and Demand Response Programs in the U.S. (2010–2030), EPRI http://mydocs.epri.com/docs/public/000000000001018363.pdf

“Energy Efficiency creates more jobs per dollar invested than other energy resources” Green Recovery, Political Economy Research Institute, University of Massachusetts at Amherst http://www.peri.umass.edu/green_recovery/

“The California Public Utilities Commission (CPUC) recently approved spending $3.1 billion on energy efficiency programs from 2010 through 2012.” Decision Approving 2010-2012 Energy Efficiency Portfolios and Budgets, California Public Utilities Commission http://docs.cpuc.ca.gov/word_pdf/AGENDA_DECISION/107378.pdf

“In recent years, US venture capitalists have invested over $1B into the CleanTech Industry” Q2 2009 MoneyTree Report, PricewaterhouseCoopers and National Venture Capital Association https://www.pwcmoneytree.com/MTPublic

“The US Government committed over $40 billion to improving energy-efficiency” American Recovery and Reinvestment Act of 2009, United States Congress http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h1enr.pdf

“Retrofitting homes in the US can reduce energy usage by up to 40%” White House Council on Environmental Quality, Executive office of the President of the United States http://www.whitehouse.gov/assets/documents/Recovery_Through_Retrofit_Final_Report.pdf

Rational Energy Network

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What needs to be true to achieve scale? Energy Efficiency Must Be “Easy” Every step of this process must be done well to ensure wide adoption of energy efficiency.

Figure Out What to Do

Evaluate Costs and Benefits

Find Reliable Contractors

Install New Technologies

Pay for Efficient Technologies

Verify Energy Savings

The Barriers Are Well-Known… 1. Complicated process 2. Lack of information 3. Mis-aligned stakeholders 4. Lack of financing 5. High transaction costs

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Solutions must target specific segments US Electricity Usage

Opportunities within the Mass Market:

(2007 $344 billion)

Industry 32%

Large Businesses 16%

Homes 35%

Small Businesses 17%




Large portion of energy usage




Untapped energy reserve




High visibility within communities




Fast ramp-up




Optimal economic development




Rapid creation of green careers




Low-risk Source: DOE Annual Energy Review 2007

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LADWP Small Business Lighting Program Google maps tracks progress



Small Business Lighting Program began February 2008



42,000 small businesses upgraded in 18 months



Results per site (total program): – – –

Peak reduction ~1kW (40MW) Annual savings 3,222 kWh (135 M kWh/year equivalent ~13,000 homes) Turn-key installed costs $940



Levelized costs ~4¢ / kWh saved



Green Jobs (20 auditors + 220 contractors)



High Customer Satisfaction (>99%)



Positive Spillover (85% interested in making more retrofits in their homes)



Technology-enabled delivery with real-time Program Tracking Source: www.enerpath.com

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Small Business Energy Efficiency

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Helping communities “see” energy efficiency

Goal: Reduce city-wide energy usage by 30% by 2012 Last year, retrofit 1,000 small business and 6,100 homes Partnership Program with utilities, city, and contractors

Source: www.enerpath.com Rational Energy Network

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Scale with Multiple Funding Sources $1,200,000

Delivering a $14M Residential Efficiency Program

6,000

Customer Loans

Weekly Energy Efficiency Investments ($)

$1,000,000

5,000

$800,000

4,000

$600,000

3,000

$400,000

2,000 Customer Funds

$200,000

Program Funds

1,000

Weekly Program Performance (Trailing 52 weeks) Rational Energy Network

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2009-19

2009-17

2009-15

2009-13

2009-11

2009-09

2009-07

2009-05

2009-03

2009-01

2008-52

2008-50

2008-48

2008-46

2008-44

2008-42

2008-40

2008-38

2008-36

2008-34

2008-32

2008-30

2008-28

2008-26

2008-24

2008-22

0 2008-20

$0

Total Homes Participating in Parogramm (Cumulative)

5,532 Homes

Source: www.enerpath.com www.mainstreetefficiency.com

Annual Program Funding ($ million)

Leveraging Funding Sources (Spend $6M, get $14M) $16.0 $14.0 $12.0 $7.4

$10.0 $8.0

$14.1 $0.7

$6.0 $4.0 $6.0 $2.0 $-

Utility Funding Direct Customer Customer Payment Funded Loans (AB811)

TOTAL PROGRAM FUNDING

PROGRAM: $1,080 utility funding leads to $2,531 total program: $1.00 → $2.34 LOAN PARTICIPANTS: $1,080 utility funding leads to $40,230: $1.00 → $37.22 Rational Energy Network

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What seems to be working… – Build a coalition with cities, states, utilities, contractors, and community organizations – Market program together and align all incentives.

STRONG COMMUNITY COALITIONS

– Streamline implementation via web-based mobilecomputing platform . – Improves customer experience – Capture more data than you need – Connect multiple programs and stakeholders

TECHNOLOGY ENABLED

– Make it easy to become energy efficient – Canvass communities door-to-door – One-touch sales with integrated implementation – Integrating financing, education, and programs.

IMPROVED BUSINESS PROCESS

– Measure program goals in real-time – Take actions to improve results. – Mine field data to add more measures and funding sources. – Let program evolve.

CONTINUAL MEASURABLE FEEDBACK

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Now speaking… Steven Meyers President and Founder Rational Energy Network www.rationalenergy.net [email protected], 512-796-2242

Steve has been a leader in energy-efficiency for over 15 years and advises utilities, foreign governments, corporations, utilities, start-ups, and investors on energy-efficiency, technology, finance, scalability, and risk management. Steve has been an officer at two publicly traded energy companies, managed a $250 portfolio of energy-efficiency investments, conducted research at a DOE laboratory, and worked with an international ESCO. Steve has BS in Physics from Haverford College, an MS in Mechanical Engineering, from UC Berkeley and an MBA concentrating in Energy Finance from UT Austin.

Steven Meyers

Rational Energy Network

Dulcey Simpkins

Carter Williams

Brian Reilly

Christine Herbert

www.mainstreetefficiency.com

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Now speaking… Dulcey Simpkins Senior Research Associate E-Source Dulcey investigates and advises on energy-efficiency program design and implementation for E Source—a leading research and analysis firm. Dulcey has worked in the municipal and state energy offices and designed clean tech and economic development programs for Michigan’s Department of Labor’s WIRED entrepreneurship grant. She received a PhD in political science and a master’s degree in resource policy and management the University of Michigan.

Steven Meyers

Dulcey Simpkins

Carter Williams

Brian Reilly

Christine Herbert

www.mainstreetefficiency.com

Rational Energy Network

Now speaking… Carter Williams Managing Partner OI Ventures Carter advises and invests in products in services that help reduce demand energy. Carter was previously President of Gridlogix, a software company focused on energy and building integration which was sold to Johnson Controls. Carter has worked with Boeing Ventures where he developed an internal incubator reviewing over 1000 new business opportunities with successful spin-outs. Carter has played leadership roles in the MIT 50K competition, the MIT Entrepreneurship Society, the MIT Corporate Venturing Consortium. Carter has an MBA from the MIT.

Steven Meyers

Rational Energy Network

Dulcey Simpkins

Carter Williams

Brian Reilly

Christine Herbert

www.mainstreetefficiency.com

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Now speaking… Brian Reilly Commissioner of Economic Development City of Buffalo, NY Brian Reilly has 15 years of public sector and non-profit experience in community, economic and sustainable development. Brian formerly directed Cleveland’s Economic Development Department and managed a 1,200-acre redevelopment in Milwaukee that won the Sierra Club’s “Best 10 New Developments in the US (2006).” Brian has created Sustainable Development for large foundations and is a Senior Fellow with the National Environmental Leadership Program. Brian’s degrees are in American Studies and International Peace Studies.

Steven Meyers

Dulcey Simpkins

Carter Williams

Brian Reilly

Christine Herbert

www.mainstreetefficiency.com

Rational Energy Network

Now speaking… Christine Herbert Vice President Good Company Associates Christine co-manages Good Company Associates—business development consulting firm specializing in energy efficiency, renewable energy, energy storage and smart grid applications since 1991. Christine works with diverse clients active in residential and small commercial-related energy efficiency services. She designs programs and communicates innovations that encourage market transformation using funds from EECBG grants, municipalities, and utilities. She also serves as Chair of the City of Austin Resource Management Commission, which advises the City Council in energy and water conservation, alternative energy technologies, and renewable energy sources. Steven Meyers

Rational Energy Network

Dulcey Simpkins

Carter Williams

Brian Reilly

Christine Herbert

www.mainstreetefficiency.com

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A Program Participant from Palm Desert, CA Monthly electricity usage from one of the 6,100 homeowners participating in Palm Desert’s Set to Save Energy Efficiency Program These results show 67% Nominal Energy Savings 4,500

3,500 2008

3,000

2009 2,500 2,000

Installed CFL Lighting from Set to Save program funds

Installed variable speed pool pump Installed Solar PV on AB811 Loan

1,500 1,000 500

Rational Energy Network

Nov

October

Sept

August

July

June

May

April

March

January

(500)

February

-

Dec.

Monthly Electricity Usage (kWh)

4,000

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QUESTIONS… MODERATED BY

Dulcey Simpkins Senior Research Associate E source

Steven Meyers President and Founder Rational Energy Network

Weatherization

[email protected] www.rationalenergy.net 512-796-2242

Carter Williams Managing Partner OI Ventures

Brian Reilly Commissioner of Economic Development City of Buffalo, NY

Christine Herbert Vice-President Good Company Associates

Rational Energy Network

www.mainstreetefficiency.com

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