EXPERIENCE DEVELOPING EVIDENCE ON THE MULTIPLE BENEFITS
OF ENERGY EFFICIENCY
Moderators: Catherine Cooremans, Geneva University and Jennifer Corry Smith, CLASP
This session will explore the multiple benefits of energy efficiency for several groups of stakeholders. The session will discuss different methodologies used to characterize multiple benefits and how to overcome challenges in measurement. Examples will be given from different geographical regions to help attendees understand key considerations for evaluating multiple benefits.
The first paper focuses on operational cost and revenue changes resulting from energy efficient measures in the US commercial and industrial sector. These participant non-energy benefits (NEBs) provide policy makers, program administrators, and customers with substantial near-term benefits that can greatly enhance the cost-benefit justification of energy efficiency programs. An engineering-based approach to estimate NEBs resulting from measures installed on new construction projects is described. This analysis resulted in engineering-based life-cycle cost differences for 33 prescriptive and custom electric and gas new construction measures providing roughly $488,000 in savings per year, across 956 measures identified in 2013.
The second paper addresses two issues regarding non-energy benefits (NEBs): 1) The state of NEBs measurement, and 2) The riskiness of NEBs in the context of other inputs in the benefit-cost equation. The paper argues that four elements pose real risks and bring bias to the metrics underlying investments of millions of dollars. These include: measure lifetimes; net to gross, and discount rates. The paper identifies the variations in these inputs, assess the relative risk from these ranges, and consider the relative costs of achieving improvements.
The third paper argues that energy efficiency programs provide a wide range of benefits to program participants, utility systems, and society as a whole and that it is critical to include all relevant benefits in benefit-costs analysis, in spite of evaluation challenges, to ensure an optimally efficient level of energy efficiency deployment in a utility service territory. The paper details the wide range of benefits of energy efficiency to the U.S. electric utility system and examines the range of values for each benefit while also detailing the difference in specific methodologies employed to value benefits. In doing so, benefit quantification methods and assumptions for twenty-four states in the United States are reviewed. The review is not limited to existing methods but also provides specific information regarding the value of these benefits in various regions of the county. As a result, the paper provides a strong foundation of the benefits, quantitation methodologies, and existing values used by program administrators in the United States today.
The last session paper discusses a range of topics concerning the validity and regulatory acceptance of non-energy impacts (NEIs), the tools used to quantify them, and their place in the evaluation and marketing of energy efficiency programs.
PAPERS / PRESENTATIONS
Specific Risk Elements of Benefit Cost Tests: Sources and Remedies [paper]
Lisa Skumatz, Skumatz Economic Research
Utility System Benefits of Energy Efficiency: Current Experience in the US [paper]
Brendon Baatz, American Council for an Energy-Efficiency Economy