Plan should present a strategy to integrate measures programs policies and actors at all levels of EE program design and delivery
Address full range of comprehensive demand-side options
Present a systems approach that encompasses all measures programs activities including RD CS hardware controls and behavior
Include a process to collaboratively engage expertise
Utilities should review experience from PGE Market Integrated DSM initiative and SCE and Sempra Sustainable Communities initiative.
3 Requirements of the Decision
Decision takes integration a step further with its focus on end-to-end strategies
The Strategic Plan will connect the dots across a range of strategies that can apply over the product lifecycle of a technology or energy management practice. Examples of strategies that should be carefully integrated with findings and results from one leading to action on the next include
PIER RD activities and findings
Emerging technologies support
Utility programs focused on promotion technical assistance and incentives
Market transformation as products services and practices become mainstream business as usual without the need for financial incentives
Building codes and equipment minimum standards.
In other words Decision wants both integrated delivery of EE DG and DR and institutionalizatio n of an integrated approach to transformation of markets (transformational integration).
Rather than running a separate integration track decided to focus on integration issues and strategies emerging from the sectors
We reviewed the material produced by the sector teams to identify common and cross-cutting elements.
We expect that within each sector there will be brief discussion of integration as it pertains to specific sector strategies and that in some cases sectors might identify specific integration strategies.
Objective here is to summarize the cross-cutting themes and suggest possible cross-cutting strategies.
Because it appears that several sectors have identified similar issues and broad strategies related to integration a decision will need to be made as to whether each sector outlines strategies or whether the cross-cutting section of the plan includes strategies.
Focus on issues related to integrated delivery at this point as this is necessary to support sector strategies
Need to recognize the importance of the more complex integrated view of MT the Decision calls for but acknowledge that this transformational integration requires a discussion that is just beginning.
We began by trying to outline several questions designed to address what we initial saw as the primary types of integration.
5 Guidance to Sectors
For each sectoral strategy we asked conveners to provide two pieces of information
Does the strategy require an integrated approach to EE DR and RE
If the strategy entails elements of EE DR and RE how can they be effectively integrated technically and in terms of presentation to the market
Also provided three sets of questions to conveners intended to tease out information about
Technology Integration physically integrating and deploying EE DR and RE technologies Does a strategy require an integrated solution What does this solution look like What pieces are missing Who will supply these pieces Is there a role for CS
Marketing Education and Outreach Integration How an integrated bundle of technologies is presented to the market What is the value proposition for an integrated package How is that proposition best conveyed What types of MEO are required to build a market
Institutional Integration How an integrated solution is delivered What are the barriers within utilities to an integrated offering Are there policy barriers to an integrated offering Does delivery of an integrated technology bundle require new delivery installation/service infrastructure
6 Stakeholder Views
As of 12/30 substantial information related to integration only available from the Residential and Commercial workshops
Much less from Ag and Ind
However all working groups identified at least some issues related to technology integration.
Integrated solutions are critical to Res and Com strategies
Key issues are common
Institutional silos are a barrier to integrated delivery (partly a function of policy)
Integration built on foundation of AMI
No consensus as to what the actual architecture of integration looks like or who will actually deliver integrated solutions to customers
7 Stakeholder Views - Ag Ag (document labeled Agricultural Sector Draft 3-For Discussion Purposes Only 12-20-07)
Flagged the large potential for on-site generation using ag wastes particularly high in the dairy sector.
Although not specifically referenced in connection with irrigation there might be opportunities to use distributed/renewable energy for irrigation pumping
Proposed strategies including request for best practices case studies related to integration.
8 Stakeholder Views-Commercial All information pulled from Vision and Key Strategic Actions for the Commercial Sector version 5 December 17 2007)
Need to agree on a common metric that combines EE on-site renewables and time-of-use energy management (p.3)
Strategy Mandate AMI for all commercial customers necessary foundation for integrated operation of EE DG and DR (p.6)
Implementation of diagnostic EMS controls that allow integrated building control
Strategy By 2015 utilities offer integrated program delivery including one-stop shop (note inconsistency page 10 suggests the date is 2015 while page 11 suggests this is a 2010 target)
Responds to differing needs of different buildings
Rewards measured performance improvements
CPUC to direct an analysis in 2011 of costs and benefits of integrated program delivery (Note that this is inconsistent with similar recommendation on page 11 for this to happen in 2009)
CPUC in 2009 will review necessary regulatory changes
Issue Allow utilities to count savings from DR and DG
Issue Drive towards integration needs to emphasize targeting of deep and comprehensive efficiency efforts
Service/technology providers need to develop a business model that sells an integrated product could include manufacturers aggregators and contractors.
9 Stakeholder Views-Commercial
What does integrated delivery look like (11/19 meeting minutes)
One-stop shop based on common web portal with easy access to all info
Use of bounty hunters
Need to find universal and transparent funding source for the one-stop shop idea
Need a rational pricing structure to support integrated delivery needs a TOU component
Must ensure that all externalities are fully accounted for to enable proper valuation of integrated package
Suggestion of a performance-based pricing system that provides larger elec price discounts for more integrated solutions
Notes from Working Group 6 (Integration)
Need an aggregator or broker to accurately represent EEDR and DG to customers
Benchmarking needs to be able to incorporate integration
All customers need to have AMI
10 Stakeholder Views - Residential Except where noted all info from Draft Residential Section December 26 2007 Note that Integration Strategy not completed as of 12/30)
End-to-end vision (3.1.2)
Infrastructure to support quality HVAC installs and hardware standards that allow communication with AMI and DR
Fully integrated DSM services (EE DG DR and AMI) in one cohesive package that captures synergies and reduces cost of service (12/28 version links this to broader green objectives such as water IAQ etc)
Use intelligrid AMI and smart devices to achieve load following homes (188.8.131.52)
Challenges to technology integration (184.108.40.206)
Institutional barriers within utilities will need to be broken down
Need holistic approach with consistent funding source and set of goals
Need an analysis tool that integrates EE/DR/DG into a layered action plan for decision making (12/28 edits)
DSM Integration Requirements (3.1.10)
All residential strategies require full integration of demand-side management services
Need to provide one-stop shop to minimize hassle for consumers and contractors
RDD to focus on integrated strategies and tech solutions
Need visual display tools and smart devices
Action Items (220.127.116.11)
Coordinate with AMI roll-out
Break down silos within utilities to develop common energy and demand savings goals and funding pools
Develop visual display and remote access tools to enable real time energy management
11 Stakeholder Views - Residential
Plug Loads (18.104.22.168)
Primary opportunity and challenge is with AMI/Home Area Networks and integration with DR and Solar Initiatives
New Construction (generally tracks Existing Homes w/regard to integrated DSM)
Short-term 25 of new homes have DG by 2011
Mid-term 50 of new homes have DG by Integrated DSM solutions with no regulatory or institutional barriers Avoided costs methods that captures everything Cities have streamlined permit process when builders use tiered standards
Long-term 85 of new homes have DG by 2020
Integration Strategy (3.8 filled in with revised version on 12/28)
Pulls together many of the elements noted above into a separate strategy
Includes recommendation for integration at local level through time-of-sale ordinances
Envisions integration with water solid waste IAQ
12 Stakeholder Views - Residential
From Integration work group notes
Several dimensions of integration discussed
Integration of EE DR AMI Solar Water and GHG reductions
Integration in the various stages of the process (program design management marketing sales construction evaluation and reporting
Coordination of program types (MEO incentive finance tech assistance etc)
From Dec 11 workshop notes
Given the way IOUs are set up to account for separate pools of funds it is difficult to integrate EE DR and DG into one-stop shop also issues in setting up 3rd party programs to deliver integrated solutions
PGE has begun/has planned a pilot for the coming year
13 Stakeholder Views-Industrial
Less direct consideration of technology integration reflected in industrial summary
Integration viewed in terms of integrated approach to resource management and program delivery
Industry is managing energy use GHG emissions reduction water use waste disposal and air quality as a part of a comprehensive approach to effective resource utilization
Industry has coordinated access to energy efficiency and regulatory assistance via a statewide integrated program that supports the states energy and environmental goals
Develop and launch seamless centralized statewide access for California industry to technical assistance to support more effective utilization of energy resources. Conduct pilot demonstration projects with 2-3 industrial sectors to test new program concepts
Source 2009-2020 California Statewide Energy Efficiency Strategic Plan Recommendations for Industry (ppt) 14 Stakeholders views of what integration means varied widely
Policy e.g. integrating EE climate smart growth policies water conservation green building Integrating technology development with CS Integrating incentives and pricing policies
Technology EE DR RE AMI smart appliances/devices information displays
Locational Integrating policies and programs across jurisdictions integrating solutions across fleets of buildings owned by one entity
Institutional Goes beyond utility institutional issues to the question of whether local governments might be a more appropriate integrator and whether there is a need for new market entities offering integrated solutions
MEO The need to integrate/synchronize multiple messages and brands some of which themselves promote integrated solutions and some of which are focused on EE or RE or DR
Primary sources DSM Integration Sector Input from Conveners Accenture 12/14/07 Vision and Key Strategic Actions for the Commercial Sector version 5 December 17 2007 Residential Meeting Minutes Meeting Date December 11 2007 2009-2020 California Statewide Energy Efficiency Strategic Plan Residential Sector December 26 2007 Draft. 15 The Need to Constrain Integration
No disagreement that integration is important/essential
Attempting to completely manifest the Decisions integration vision in this plan is beyond reach given time constraints the diversity of views and the host of other issues to be addressed
What is do-able
Propose a working definition of integration that incorporates both the integration of technologies as part of comprehensive solutions and transformational integration that links policies and programs over a technologys lifecycle
Draw the path to transformational integration through a strategy to first test integrated delivery and then to create a forum for ongoing exploration of the broader issues of integrating across technologies and along the product lifecycle.
16 Input Tagged to the Outline
Followings offer suggestions tagged to specific sections of the outline
17 Guiding Principles (Taken from the IOU-CPUC draft TOC)
Market Transformation including need to manage new and emerging technologies integration of policy programs and other initiatives
The transformation envisioned by the Decision is one requiring a shift of focus from transforming markets for technologies to transforming policy programs and behavior to focus on integrated energy management.
However the metric against which the transformation is to be measured in not yet defined. Options might include
Minimize consumer net (from the grid) energy consumption (Implied by the BBES) Commercial group seems to suggest similar metric for existing commercial bldgs Residential existing goal appears focused on gross reduction.
Minimize (or reduce to specific levels) climate/environmental footprint
Include embodied energy/carbon
Minimize net economic cost of electricity natural gas energy service considering environmental externalities
Therefore the right integration will be a function of the policy target
This is an issue that the Plan needs to address at the top of the integration agenda. Specifically flagged in Vision and Key Strategic Actions for the Commercial Sector version 5 on page 3 bullet (1).
18 Guiding Principles (Taken from the IOU-CPUC draft TOC)
Integration Innovation Collaboration
As MT is a dynamic process so must be the process of integrating technologies policies and institutions to support MT
Unlikely to reach ambitious goals set in the plan without effective technology integration and technology advancement
One key element of integration is building a more effective institutionalized link between technology innovation and policy programmatic strategies
Innovation/technology development should be guided in part by the gaps in the technology needed to support the MT.
Example of the link between development of smart thermostats and Title 24 needs.
Given the constituency for integration effective strategies can only emerge from continued collaboration across all dimensions.
19 Strategic Context - What shapes the consideration of strategy
Suggest the following be raised in this section
Very aggressive targets not achievable without combining EE DG and DR
Policy and program competition that has arisen as individual goals were established and pursued for EE DG and DR. Has created some institutional barriers to integrated delivery
Regulatory framework that the plan is being developed within is geared toward EE and widget-based savings. However an effective integrated strategy will likely require investment in technologies and practices that do not directly satisfy EE goals.
As a related point the success of the integration of EE DG and DR requires new metrics such a net energy reduction or net CO2 reduction.
There may be a need to for new or revised standards and tools for economic analysis of an integrated package of options. Is the current definition of cost-effectiveness appropriate when considering long-term investments Can current methods and tools properly account for the comparative economics of EE DG and DR
Should cost-effectiveness be defined by the cost of renewable energy (see Vision and Key Strategic Actions for the Commercial Sector version 5 December 17 page 1)
There will be a need to harmonize the integration policies and programs adopted by the utilities and CPUC with CARB AB32 policies particularly with respect to DG
Sectors are likely to identify either a stand-alone integration or integration requirements as part of broader strategies
These strategies are likely to have a number of common elements need to decide if the strategies should be raised within sectors or as cross-cutting strategies
Followings suggest what a cross-cutting section might look like with the assumption that the integration strategy is presented here
First thing that this section would need to do is Define/classify integration
Followingis a rough cut at how to think about the integration issue two basic dimensions
Transformational integration integrating the policies and programs along the life-cycle of a technology
21 The Dimensions of Integration Integration of technologies Integration of policies and programs over technology lifecycle Transformational Integration 22 The Dimensions of Integration
The Decision envisions the top-right quadrant
Can approach that directly or by traveling through top-left or bottom-right
Attempt to outline strategies that will lead to the top-right along a path that begins with the capability to deliver an integrated package of technologies
Acknowledge that the parallel work going on with emerging tech CS etc suggests simultaneous approach through the bottom-right.
See Draft Residential Section December 26 2007 section 1.2 3.1.2 3.3.2 and Vision and Key Strategic Actions for the Commercial Sector version 5 page 10 Offer Integrated Program Delivery 23 Organizing Integration Review of workshop notes and discussion suggests that integration strategies have two components
Elements requiring integration
Policies Multiple and inconsistent policies for EE DG DR
Programs Overlapping and inconsistent program offerings EE DR and DG compete to some extent
Policies Establish the framework for integration. Requires alignment of objectives and rules across multiple state regional and local jurisdictions
Programs Create the vehicles for taking integrated offerings to the market. Requires alignment of multiple offerings by multiple entities
Delivery Actual delivery of an integrated solution. Requires consistency across utilities local govts 3rd parties and market providers. Requires clear value proposition. May require new market actors/ organizations.
A strategy will address what needs to be integrated and how/where that integration will occur. 24 Elements of Proposed Strategy
Elements of integration Technologies policies programs delivery channels funding and incentives
Pathways to integration Requires policy changes new program concepts and new delivery methods
Vision Energy efficiency demand response and distributed generation technologies are offered as elements of an integrated solution supporting sector net energy reduction goals. A robust infrastructure has developed to support the delivery and maintenance of integrated solutions
By 2011 utilities have tested a variety of integration models and identified the barriers opportunities and cost-effectiveness of each.
Each model should be designed to achieve the maximum cost-effective reduction in building/facility net energy use
By 2015 (Draw from individual sectors e.g. x of new homes/buildings and y of existing homes/buildings)
Important that net energy reduction does not result in an increase in onsite energy use due to DG strive for net reduction in CO2 25 Elements of Proposed Strategy
Utilities design/administer multiple pilots designed to test different models for integrating delivery of EE DG and DR. The pilots should incorporate
A bundled offering that includes elements of energy efficiency distributed generation and demand response on a platform that includes best available AMI technology and architecture.
Utility 3rd party and local government delivery (different pilots test different models). Pilots based around local delivery should incorporate elements related to local codes enforcement and time-of-sale ordinances.
Delivery to the following market segments May be separate pilots
26 Elements of Proposed Strategy
The pilots should identify and assess
Internal organizational issues related to integrated delivery including cost allocation and accounting and project management
Policy issues that constrain delivery of an integrated offering
Technical issues associated with effectively and efficiently integrating technologies within a building
Issues related to the market infrastructure for delivering a bundled offering (e.g. lack of coordination among involved trades lack of post-installation support etc)
The reductions in net energy consumed by the buildings participating in the pilots
The costs associated with the net energy reductions
Consumer attitudes related to the bundled offering
The availability and appropriateness of methodologies/analytical tools for determining the optimal mix of AMI EE DG and DR
27 Elements of Proposed Strategy
The purpose of the pilots is to build a stronger knowledge base to inform the structure of post-2011 integrated offerings.
Pilots should be designed in-part to test alternative architectures for integrating/optimizi ng technologies in concert with AMI
Basic technologies appear to be in-place although will continue to evolve. What appears to be missing is a proven architecture for actual integration of operation elements of smart metering smart devices and control logic to optimize net energy consumption.
Education and training
Requirements will become more clear as pilot results become available and a more clear definition of the dominant integration configuration becomes more clear
CPUC either allows EE funds to be used to support the pilots or loosens restrictions on co-mingling of EE DG and DR funds.
CPUC may need to consider alternative risk/reward structure for integrated offerings. If the goal of integration is to promote the maximum cost-effective reduction in net energy net benefits will trend toward zero reducing the utilities incentive to promote.
CPUC allows utilities to propose counting rules that enable reductions in net energy from DG and EE savings prompted by DR to be counted toward EE targets.
CPUC may need to suspend existing CSI metering DG and DR rules to enable the pilots current policy silos possibly act as constraints on program design and delivery
28 Elements of Proposed Strategy
Marketing Education and Outreach
Test value proposition as part of the pilots
Test alternative marketing channels
Develop customer education packages for operation of integrated systems
Require CPUC permission to use EE funds or blend EE DG RE advanced metering funds. Allow utilities latitude to test a variety of alternative incentive and financing schemes.
Low-Income special considerations
At least one pilot would target low income customers
Lead and other key players for each action
Utilities lead with pilot identification and execution
CPUC lead for consideration of policy changes and creating initial policy flexibility for the pilots
29 Elements of Proposed Strategy
Utilities jointly decide which will conduct which pilots (existing PGE IDSM and SCE and Sempra Sustainable Communities might serve as one or more of the models being piloted)
Could include expansion of InDEE and IDEEA to include integrated offerings
In 2009-2011 plans utilities would identify the pilots they propose to run
Pilot design should be completed with pilot launch in 2009
In approving utility plans CPUC will need to address the policy requirements
Pilots should incorporate on-going real-time EMV
2012-2014 plans would include proposals for larger scale programs based on available pilot results
Utilities and stakeholders should form integration collaborative to review progress of the pilots and continue discussions regarding the broader issues of transformational integration with updates provided as part of whatever process is used for the continuation of the strategic planning process.
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