+ All Categories
Home > Documents > Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial...

Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial...

Date post: 28-Oct-2019
Category:
Upload: others
View: 2 times
Download: 0 times
Share this document with a friend
25
Powering the Savings Unlocking Financing For Commercial Retrofits
Transcript
Page 1: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

Powering the Savings

Unlocking Financing For Commercial Retrofits

Page 2: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

Submit Questions:

[email protected]

Page 3: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

Webinar Agenda:

1) Introductions: Authors & Speakers

2) Overview of “Powering the Savings”

3) Panel Discussion

4) Q&A

Page 4: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

• Connecting business, environmental, academic, and government leaders

• Addressing environmental and energy needs

Page 5: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:
Page 6: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

2020 & 2050 Greenhouse Gas Reduction Goals

Page 7: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:
Page 8: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

California’s Carbon Footprint

Page 9: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

• No Standard Measurement & Verification of Savings

• Regulatory Uncertainty• No Standardized Data• Insufficient Workforce

Barriers to Deep, Long-Term Commercial Energy Retrofits

Page 10: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

• Utility pilot projects to standardize savings measurement

• Regulations to encourage energy efficiency procurement

• Workforce roadmap

Solutions to Boost the Market

Page 11: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

Email: [email protected]@law.ucla.edu

Reports:www.clee.berkeley.edu www.law.ucla.edu/environment

Blog: legal-planet.org

Twitter: @ethanelkind

Page 12: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

12

Powering the Savings –New Opportunities to Tap

Commercial Building Energy Efficiency

Jeanne ClintonSpecial Advisor, Energy Efficiency

California Public Utilities CommissionApril 18, 2016

Page 13: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

Opportunity Unleashed by 2015 Legislation• CPUC has long set cost-effective utility EE portfolio goals.• SB 350: CEC & CPUC to set targets to double the pace of EE. • AB 802 directs specific policy actions:

– CEC: EE benchmark and disclosure for commercial & large multi-family buildings,

– CPUC: liberalized “counting” of savings, seek “normalized metered energy savings”.

13

Page 14: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

Needed: Solutions to Close the Gap between Economic and Achievable Market Potential

• CPUC consultant: ‘economic potential’ is 2.5X+ larger than utility portfolio goals.

• Estimates constrained by owner/consumer short return horizons, risk concerns, “split incentives”.

• Some: “potential studies” conservative; don’t capture new technologies & better approaches.

• Others: New business models, capital & transaction structures can capture fuller value & raise savings outcomes; EE akin to a solar PPA.

Statewide Technical, Economic and Cumulative Demand Reduction Potential,June 2015 Potential & Goals Model

14

Page 15: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

15

Calif. Regulatory Policy Changes Adopted or Coming

Energy Efficiency proceeding:• Finance pilots (2013) to leverage private capital, On Bill Repayment

(non-residential), credit support (res’l & small biz).• Sector Business Plans (2015-16) -- 10-year portfolios of strategies

developed by utilities and stakeholders.• AB 802/SB 350 (2016) – Allow “pay for performance” using metered

savings as basis for incentives.Distribution Resource Plans (DRP) (2015-17) – setting localized values for distributed solutions to offset utility grid investment. Integrated Distributed Energy Resources (IDER) (2016 …) – New procurement framework to enable distributed solutions to offer competitive solutions.CEC Building Benchmarking & Disclosure (2017 through 2020) –

Goal to motivate EE in low-efficiency commercial & MF buildings.

Page 16: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

16

Venues for Market & Advocates to Engage1. IOU utilities– bring new business models and finance ideas

to EE sector business plans under way through summer 2016. See: http://www.caeecc.org/

2. Advocate new EE policies or innovative approaches in CPUC EE proceeding: Contact [email protected] See: http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M155/K634/155634404.PDF

3. CPUC Integrated Distributed Energy Resources –Engage in procurement framework for bundled DERs, through August. Contact: [email protected] See: http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M159/K671/159671058.PDF

4. CEC Building Benchmarking and Disclosure regulations development. See: http://www.energy.ca.gov/benchmarking/documents/

5. Participate in CEC target-setting to double EE goals. See more: http://www.energy.ca.gov/business_meetings/2016_packets/2016-01-13/Item_05_OIR-SB_350/Item%205%20OIR%20SB350_final_1-4-16.pdf

Page 17: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

17

Thank you!For Additional Information:

www.cpuc.ca.govwww.energy.ca.gov

[email protected] or 415/703-1159

Page 18: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

Cynthia MitchellEnergy economist and TURN consultant

Page 19: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

Dennis QuinnChief Operating Officer and Co-Founder, Joule Assets. Inc.

Page 20: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

How California Can Tap The Energy Efficiency Potential in Existing Commercial Buildings

March 15, 2016

Page 21: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

21

The Markets Offer Multiple Value Streams (EE, DR, rebates, incentives, carbon offsets)

• Customers generally do not understand them – not prepared to front the funds

• Oftentimes the contractor/integrator is not fully informed and undervalues an opportunity

• Incentives spur market introduction, but generally do not cover the entire amount - and are increasingly performance-based

• Therefore, a financial and knowledge gap remains

Industry Change Means Opportunities

Page 22: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

CUSTOMER BENEFITS

• Managed Efficiency Services Agreement model (whole building)• Works with comprehensive/integrated EE solutions• Step towards MEETS

• Guaranteed savings can combine with low/0% money (if OBF is available)

• Transparency – customer sees achieved savings

• Long term guarantee of equipment and performance with vetted contractor – contractors remain customer’s trusted source

• DR participation and value is managed by knowledgeable partner

Opportunities for Small Performance-based EE in the Market (cont.)

Page 23: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

23

Technology and Communications options bring cost-efficient Energy Savings Equipment and M&V to the SME market

• Smaller customers (with energy spends as low as $3k/mo.) can realize the benefits of a financed EE solution that optimizes control for DR participation, without fatigue

• Solutions are not technology dependent – BMS, HVAC and lighting with future high performing measures

• Monitoring-based commissioning is cost effective for SMEs who don’t have time or expertise to manage on their own

• M&V at each project opens the door for performance insurance – creating scale

Industry Change Means Opportunities (cont.)

Page 24: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

Ways to Move Forward

State should support models that incorporate metered M&V• It supports Pay-For-Performance incentives• It supports SME participation in fast-response DR markets• Gain agreement on Baseline and Performance

Support training for contractors/integrators who will serve the SME market

• Importance of long-term customer relationship• Strong alignment with utility objectives

Energy Savings Insurance can play a key role for scale• Allows for access to State’s credit enhancement• Allows unrated regional contractors who focus on SME market to

participate and thrive

Page 25: Powering the Savings - Berkeley Law · Powering the Savings Unlocking Financing For Commercial Retrofits. Submit Questions: eelkind@law.berkeley.edu. Webinar Agenda: 1) Introductions:

Submit Questions:

[email protected]


Recommended