2. Coauthors MarkDAntonio, ERS WendyMacPherson, NYSERDA RichardRappa, CHA ThomasHudgens, Willdan 3. Presentation Overview IntroductionProgram ConstructMarket AssessmentApproachResultsSummary Q & A 4. Introduction 2008 Energy Efficiency & Portfolio Standard (EEPS) legislation to reduce New Yorks electricity usage by 15% by 2015NYSERDA (New York State Energy Research & Development Authority), public benefit corporation established in 1975, to provide solutions to states energy challengesIndustrials account for 11% of states energy usageNY has 2nd highest concentration of data centers in the U.S. - energy consumption doubling in 3-5 yrs.Significantprocess andproduction efficiencyopportunities 5. Industrial & Process Efficiency Program Fast-start program to support EEPS goalsFunded by the Systems Benefit Charge (SBC) paid by utility ratepayers Goals ElectricSavings840,000MWh by2013GasSavings1,682,265MMBtusProgramIncentive Funding$108M 6. Industrial & Process Efficiency Program Industrial Outreach Identify and evaluate energy efficiency measures Explain program incentives and application process Support project development and implementationRegion Downstate Industrial Upstate Industrial Data CentersIndustrialOutreach Contractor 7. Industrial & Process Efficiency Program PRODUCTIVITYBASEDSAVINGS (More than the Mechanical Room) Energysaved perunit produced Energy use is embedded in every part Every piece of scrap has an energy component Re-work uses additional energy Overtime requires additional energy use Lean/6 Sigma/Productivity Projects all have an energy componentIfwecancalculateenergysavings,wehaveanincentive 8. IPE Incentives PerformanceBasedIncentivesUpstateDownstate (ConEd)ElectricEfficiency$.12 /kWh$.16/kWhNaturalGasEfficiency$15/MMBtu$20/MMBtuEligibility: Manufacturing or Data Centers. Contribution to the Systems Benefit Charge (SBC) required for participation Measurement: Energy saved per unit produced Incentive Cap: 50% of project cost or $5 million per site Minimum: $30,000 project incentive (i.e., 250,000 kWh; 2,000 MMBtu) M&V: required >500,000 kWh, >10,000 MMBtu; 1,000,000 kWh lightingImprovedproductivity=lessenergy 9. IPE Application Process Easy to Apply Submit application Assign Technical Support Review Project Savings Purchase Order Issued Customer Installs Project Verify installation M&V if required Award incentivesNYSERDAOutreachContractorand TechnicalReviewerSupportThroughout 10. Market Assessment NYSERDATierLevelsDemandUsageTier1>2MW>15MkWhTier2375 kW 2MW1.5 15MkWh Started with 128 NYSERDA Key Accounts Charter to reach out to Tier 1 and Tier 2 accounts in state Verified and clarified NYSERDA Tier 1 list Prioritize potential customers into Tier 1s and Tier 2s. 11. Market Assessment USCensusData ByNAICS& county BuildingsPortal Energy savings/TierMECSdata MMBtu/ employeekWh/ enterpriseMarket Penetration ModelMNIdataTargetList Companiesby countyandTierMarketCaptureRate:Tier1 99%,Tier2 50%,Tier3 50% 12. Approach Targeted ParallelPathsCustomersPublic AgenciesTrade AlliesEvents EDC EventsTier1Design&ServiceStateTrade Shows Vendor MeetingsTier2IDA/EDC IBZ UtilitiesFederal DOE ITP/ SEN EPA SEPVendor&Supply Chain TradeAssociations &OrganizationsFinancialDOE Events Association Meetings Business Roundtables 13. Approach CustomerContact BasicDataSiteVisit Plant WalkthroughAnalysis(Customer/ vendor/Outreach consultant)ScreeningAudit MeasureIDApplicationTechnicalReviewFunds encumbered$IncentiveM&V(ifrequired)Project Implementation 14. Success Factors Companys with corporate goals or global focus on energy Identification of energy champions or internal cheerleaders Strong relationship/ partnership with Outreach contractor/Account Exec.Strong technical customer capabilities augmented by technical support from Outreach contractors Initial engagement often with facilities measures to build trust and relationships prior to moving into process area Customer focus/trust/resourcefulness/performance are key 15. Challenges Current economic climate Industrial operations focused on production not energy Limited customer staff resources to evaluate projects Industrial management and staff have limited understanding of NYSERDA programs Facilities only relate lighting and HVAC to energy efficiency because lack understanding of process to energy relationship Proprietary process world is difficult to penetrate 16. Results Progress thru June 2011*Program Status: Committed Savings Electric (kWh)Gas (MMBtu)Program goal840,000,0001,682,265Committed445,011,1991,296,28448%69%% of goalProgress thru June 2011*Program Status: Funds Encumbered ElectricGasProgram budget$92,843,186$14,659,656Encumbered$46,613,540$13,162,857% of budget50%90%* Since program inception in October 2009 17. Results NYSERDA IPE Program Performance June 2011 18. Results NYSERDA IPE Program Performance June 2011 ELECTRIC Actual Incentive $/kWhGAS $0.10Actual Incentive $/MMBtu$10.15Avg kWh per project1,149,900Avg MMBtu per project22,742Project Median kWh301,276Project Median MMBtu5,557Avg Incentive per Project$120,448Avg Incentive per ProjectCATEGORYkWhMMBtuFacility57%62%Process24%38%Data center19%0.0%$230,927 19. Summary Significant increase in program applications and encumbered savings since Outreach initiation Increased market awareness of NYSERDAs programs Customers benefit from high level of technical resources provided by Outreach consultants Deep engagement with customers and strong longterm partnerships drive continuous attention to energy reduction High level of collaboration NYSERDA, industry players, vendors, stakeholders, customers increases likelihood of reaching MWh program goals 20. Q&AContacts: www.nyserda.org/ipe HOTLINE: 585-262-2640 x290 ERS: 978-521-2550 Lucy Neiman (ext. 223): [email protected]
