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Powering the Savings Unlocking Financing For Commercial Retrofits
Powering the Savings
Unlocking Financing For Commercial Retrofits
Webinar Agenda:
1) Introductions: Authors & Speakers
2) Overview of “Powering the Savings”
3) Panel Discussion
4) Q&A
• Connecting business, environmental, academic, and government leaders
• Addressing environmental and energy needs
2020 & 2050 Greenhouse Gas Reduction Goals
California’s Carbon Footprint
• No Standard Measurement & Verification of Savings
• Regulatory Uncertainty• No Standardized Data• Insufficient Workforce
Barriers to Deep, Long-Term Commercial Energy Retrofits
• Utility pilot projects to standardize savings measurement
• Regulations to encourage energy efficiency procurement
• Workforce roadmap
Solutions to Boost the Market
Email: [email protected]@law.ucla.edu
Reports:www.clee.berkeley.edu www.law.ucla.edu/environment
Blog: legal-planet.org
Twitter: @ethanelkind
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Powering the Savings –New Opportunities to Tap
Commercial Building Energy Efficiency
Jeanne ClintonSpecial Advisor, Energy Efficiency
California Public Utilities CommissionApril 18, 2016
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”.
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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
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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.
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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
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Thank you!For Additional Information:
www.cpuc.ca.govwww.energy.ca.gov
[email protected] or 415/703-1159
Cynthia MitchellEnergy economist and TURN consultant
Dennis QuinnChief Operating Officer and Co-Founder, Joule Assets. Inc.
How California Can Tap The Energy Efficiency Potential in Existing Commercial Buildings
March 15, 2016
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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
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.)
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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.)
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
