/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED1
MID-STREAM PROGRAMS:OVERVIEW
PRESENTATION TO THE ENERGY WASTEREDUCTION (EWR) COLLABORATIVE
FEBRUARY 20, 2018
TOBEN GALVINNAVIGANT CONSULTING INC.
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED2
BACKGROUND: DTE has a multi-step process
designed to take potential pilot projects from idea to commercialized program. Steps include:
Pilot Ideation: structured process to ensure quality ideas are generated from a variety of sources
Business Case Evaluation: screening process designed to select the best potential pilot projects
Pilot Design & Testing: design, implementation, and evaluation of selected pilot projects
Commercialization: dedication of EO funding to project, and creation of program-specific targets
DTE ACTIVITIES: COMMERCIALIZATION PATHWAY
COMMERCIALIZATION PROCESS
1. Pilot Ideation
2. Business Case Evaluation
3. Pilot Design & Testing
4. Commercialization
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED3
MID-STREAM PROGRAM OVERVIEW
Midstream programs provide a rebate directly to distributors or retailers to stock and sell efficient equipment.
MIDSTREAM PROGRAM
Energy Savings
Increases
Distributors stock, sell &
receive rebates
Customers (may) get
Instant Savings $$$
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED4
PROGRAM SPECIFICS
MID-STREAM PROGRAM PRODUCT OFFERINGS ACROSS THE INDUSTRY
Lighting: LEDs, CFLs, Linear Fluorescent Lamps and Ballasts, Occupancy Sensors, Exit Signs, Display Signs, Street Lights
HVAC & Water Heating: Air Conditioners (Unitary, Split, Packaged Terminal), Heat Pumps (Air Source, Packaged Terminal), Split Systems, Furnaces, Chillers, Duct Systems, System Controls, Room Air Conditioners, Water Heaters
Food Service Equipment: Refrigerators, Freezers, Coolers, Ovens, Fryers, Steam Cookers, Griddles, Hot Holding Cabinets, Ice Machines, Pre-Rinse Sprayers, Dishwasher, Ventilation Hood with Demand Control, Strip Curtains
Appliances: High Efficiency Evaporator Fan Motors (ECM), Variable Speed/Frequency Drives, Automatic Door Closers, Vending Machine Controls, Strip Curtains, Anti-Sweat Heater Controllers, Clothes Washers, Dishwashers
Consumer Electronics: Plug-load Smart Strips, Shade Screens
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED5
MID-STREAM PROGRAM OVERVIEW
MARKET ACTORS Utility – or program sponsor, provides
program vision and resources. Implementer – responsible for program
design and execution Manufacturers – manufacturer energy
efficient equipment Distributor/Retailer – or key program driver,
responsible for stocking and selling equipment and acts as the reimbursement center for all contractors and customers. Participating distributors will need to sign program agreements to meet outlined program requirements.
Contractor – may act as the role of a distributor or may install purchased equipment
Customers – end-users eligible for participation in the utility program
Customers
Contractors
Distributors
Implementers
Manufacturers
Utilities
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED6
BENEFITS: Transform the market by encouraging
distributors and retailers to stock efficient products
Reach more customers with fewer points of contact
Increased sales and energy savings Fewer rebate application errors
Distributor Contractor Customer
Utility
CHALLENGES: Lack of customer contact may create
difficulties obtaining project and customer information needed for EM&V
Changes in traditional marketing and outreach techniques resulting from a shift to midstream incentives may contribute to reduced customer awareness.
Reduced customer awareness may lead to challenges with utility attribution and customer satisfaction
MID-STREAM PROGRAM OVERVIEW
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED7
LESSONS LEARNED FROM MIDSTREAM PROGRAMS
Successful midstream incentive programs require ongoing relationships with distributors or vendors
Midstream incentive programs reliably improve program participation, but claimable savings can be compromised if the utility fails to collect data. Participation agreements should require that distributors provide the minimum:
1. Make & model of equipment with product description2. Dates & install locations3. Prices & product incentive amounts
Wherever a distributor’s customer base spans multiple utility service territories, cost efficacy and participation can be enhanced by utility collaboration. Failure to coordinate midstream incentives between neighboring utilities can result in leakage, double incentives, and loss of participation.
Provide trainings and a qualified product list to participating distributors and vendors.
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED8
VT HIGH PERFORMANCE CIRCULATOR PUMP (HPCP) PARTICIPATION: DOWNSTREAM VS. MIDSTREAM
5 3 4 3 2 4 5 6 4 5 6 3
190190
423
319
238210
277
201
130
265
357
591
671
748
510
467
351364
286286
440
215246
0
100
200
300
400
500
600
700
Uni
ts In
cent
ed
Month / Year
DownstreamMidstream
Downstream average: 4.2 units per monthMidstream average: 346.7 units per month (+8,222%)
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED9
36 41 3015 28
9 1024 14 25 34 34 46
134118
189 181
133
191
90 87 85
162
199
490
77 84
0
100
200
300
400
500
Uni
ts In
cent
ed
Month / Year
Downstream
Midstream
VT HEAT PUMP WATER HEATER (HPWH) PARTICIPATION: DOWNSTREAM VS. MIDSTREAM
Downstream average: 5 units per monthMidstream average: 115 units per month (+2,193%)
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED10
5 5 4 3 4 4 8 6 6 6 6 3
23
156
39 44
102
120
135
193
220
0
50
100
150
200
12/13 1/14 2/14 3/14 4/14 5/14 6/14 7/14 8/14 9/14 10/1411/1412/14 1/15 2/15 3/15 4/15 5/15 6/15 7/15 8/15
Uni
ts In
cent
ed
Month / Year
Downstream
Midstream
VT COLD CLIMATE HEAT PUMP (CCHP) PARTICIPATION: DOWNSTREAM VS. MIDSTREAM
Downstream average: 24 units per month. Midstream average: 151 units per month (+529%)
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED11
INNOVATION: REBATES AS A SERVICE:
Taking the mid-stream model idea….direct to the retail storefront.
http://simpleenergy.com/rebates-as-a-service/
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED12
BACKGROUND: DTE tested the Midstream
approach as an alternative way to more efficiently promote high efficiency lighting for Commercial and Industrial customers (C&I)
Began as pilot program in October 2015 with the intent to commercialize if successful. Pilot concluded in Fall 2016
DTE ACTIVITIES: C&I MIDSTREAM LIGHTING PILOT
523
2,203
10,255
3,511
6,455
21,816
3,329
1,715 2,149 1,032 935
1,733
-
5,000
10,000
15,000
20,000
25,000
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
MONTHLY LAMPS SOLD DURING PILOT:
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED13
IMPACT: Database Review: A total of 55,656 lamps
were sold during DTE’s Midstream Lighting Pilot between October 2015 and September 2016
Database Review: The majority of lamps sold were 2’ and 4’ Tube LED lamps replacing fluorescent lamps
Phone Surveys: Approximately 82 percent of participants reported being aware of the incentives offered prior to completing the survey
Onsite Verification: The majority of lamps were verified installed. Customers with lamps not installed mostly indicated that they were waiting for facility downtime or for existing lamps to burn out before installing
DTE ACTIVITIES: C&I MIDSTREAM LIGHTING PILOT
21%Not aware before participating, but
aware prior to being surveyed
61%Aware prior to participation
82%Aware before
surveyed
15%Unaware before
surveyed
3% did not recall
PROGRAM AWARENESS:
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED14
COMMERCIALIZED: Midstream Lighting: Following a
successful pilot, DTE commercialized the Midstream Lighting program in 2017. The program just concluded a successful first year
Midstream Food Service: DTE plans to commercialize a separate C&I Midstream Food Service program in early 2018 as part of a growing portfolio of Midstream offerings
PILOTS: Midstream HVAC: DTE is currently in
the process of evaluating the market potential for a C&I Midstream HVAC program offering within its service territory
DTE ACTIVITIES: CURRENT MIDSTREAM INITIATIVES
MIDSTREAM HVAC PILOT RESEARCH:
Preliminary Research Gathered initial information about
successful midstream programs through literature review and internal discussions
Research Deep DiveInterviews with utilities,
implementers, and distributors to identify design and
implementation best practices
Program DesignIdentify best
practices and successful strategies
GO
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED15
EVALUATION TECHNIQUES
Typical Midstream Evaluation Activities include:
Tracking Database Review
Engineering Calculations
Review
Program Stakeholder Interviews *
Verification Activities *
Data Analysis *
Results and Recommendations
* Will be explored further
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED16
EVALUATION CHALLENGES
There are challenges to applying traditional EM&V approaches to mid-stream programs. Program evaluation planning must contend with the following issues:
Preventing double-counting savings.
Accessing customer information
Collecting current contact information
Determining baseline assumptions
Ensuring protocols exist to prevent leakage
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED17
EVALUATION TECHNIQUES
VERIFICATION ACTIVITIES Mid-stream data is based on
purchased products rather than installed products. Typical verification activities range from: Applying Deemed Installation
Rates Conducting Phone Interviews Performing Onsite Verification
Visits Level of rigor chosen will affect
evaluation costs, accuracy, and depth of program recommendations
Level of rigor appropriate for each jurisdiction balances evaluation goals with available resources
Low Rigor
Rely on purchased data
Use deemed savings per unit
installed
Low Cost
Evaluation accuracy
matches industry standards
Medium Rigor
Rely on customer self reported data
to validate installation
Use phone interviews for verification
Medium Cost
Evaluation accuracy will be higher than the
industry standard
High Rigor
Evaluators check installation rates
Conduct onsite visits for
verification
High Cost
The highest level of evaluation
accuracy will be implemented
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED18
CONCLUSION
Midstream programs will be an increasingly larger component of efficiency programs across the country
Technology and systems are improving to address program delivery and EM&V challenges
Sharing of lessons learned and utility coordination and information sharing is important
/ ©2018 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED19 Confidential and Proprietary
TOBEN GALVINNavigant Consulting(802) [email protected]
CONTACT
navigant.com