Energy Savings Potential for Government Facilities in Virginia

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Energy Savings Potential for Government
Facilities in Virginia

• Presented by Richard Spellman, President
• GDS Associates, Inc.
• July 11, 2008

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Topics to be Discussed

• Demand-side management, energy efficiency and
  demand response programs
• Commonwealth of Virginia Energy Plan September
  2007
• Types of programs
• Energy Star
• Education Programs
• Utility Sponsored Energy Efficiency Programs
• Examples of cost effective energy efficiency
  measures
• What is the remaining potential for energy
  savings in government facilities in Virginia?
• Energy efficiency measures with fast payback
• Examples of success (case studies)
• Next steps

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3
Definitions

• Demand-side management energy conservation, load
  shifting, peak clipping, valley filling,
  strategic load growth
• Energy efficiency measures or programs that
  reduce energy use (but provide the same amenity
  level) on a year round basis
• Demand response measures or programs that shift
  the pattern of energy use from peak to off-peak
  periods

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1 Objective for Appalachian Regional Commission
for Economic and Energy Development

• Strategic Objective 1 Promote energy efficiency
  in Appalachia to enhance the Regions economic
  competitiveness.

Page 12, Energizing Appalachia, A Regional
Blueprint for Economic and Energy Development,
by the Appalachian Regional Commission, October
2006
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Types of Energy Efficiency Programs

• Federal government programs (Energy Star)
• State government programs
• County and municipal government programs
• Utility-sponsored programs

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Examples of Cost Effective Energy Efficiency
Measures
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Residential Measure Examples

• Energy Star appliances
• Energy Star New Homes
• Energy Star Windows
• High efficiency space and water heating
• Insulation and weatherization
• Solar space and water heating
• Compact fluorescent light bulbs

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Commercial Measure Examples

• Compact fluorescent lighting
• Super T-8 lighting
• T-5 lighting
• Centrifugal chillers
• High efficiency motors
• Compressed air efficiency measures
• Building re-commissioning
• Advanced construction practices

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Industrial Measure Examples

• Premium efficiency industrial motors
• High efficiency transformers
• Sensors and controls
• Fan system improvements
• Air compressor system management

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Energy Efficiency Savings and Spending in
Virginia
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Virginia Utility Energy Efficiency and
Conservation Savings

• Virginia ranks low on energy efficiency savings
  originating from utility programs as of total
  kWh sales.
• In the past, the relatively low cost of
  electricity in Virginia increased the payback for
  efficiency programs and made them less
  financially attractive.
• In 2005, VA utilities ranked no higher than 64.
  Western Mass. Electric ranks first.
• We shouldnt wait for even higher prices to
  promote addition efficiency and conservation
  efforts.

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Energy Efficiency and Conservation Spending

• On average, the Top 20 energy efficiency
  utilities in the US spend 2.75 of annual
  electric utility revenues on energy efficiency
  programs
• Virginia Electric Power Company and Appalachian
  Power spent about 0 on energy efficiency and
  conservation programs as a percent of 2005 annual
  retail revenues
• Utilities are now starting pilot energy
  efficiency programs

Source US DOE, Energy Information Administration
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Recommendation from 2007 Virginia Energy Plan.

• Subject to the outcome of the 2007 State
  Corporation Commission energy conservation and
  demand-control study, the Commonwealth, in
  cooperation with electric utilities and
  energy-efficiency service providers, should
  initiate an aggressive set of actions to expand
  use of energy efficiency, conservation, and
  demand management to offset electric demand and
  use. Energy-efficiency and conservation
  activities, or program portfolios, should address
  all customer classes and income levels.

Source 2007 Virginia Energy Plan, Virginia
Department of Mines, Minerals and Energy, page 9.
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Energy Efficiency and Conservation Programs in
Other States
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Energy Efficiency Program Administrator Types

• Electric Utilities
• Natural Gas Utilities
• Public Benefits Organizations
• Efficiency Maine
• Efficiency Vermont
• NYSERDA
• Wisconsin Focus on Energy
• Midwest Energy Efficiency Alliance (MEEA)
• Northwest Energy Efficiency Alliance (NEEA)
• Southeast Energy Efficiency Alliance (SEEA)
• Southwest Energy Efficiency Project (SWEEP)

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Regional Energy Efficiency Organizations in the
United States
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What is the Southeast Energy Efficiency Alliance?

• Mission To build regional partnerships in the
  Southeast to promote and achieve energy
  efficiency for a cleaner environment, a more
  prosperous economy, and a higher quality of life
• Represents Eleven-State Region Alabama,
  Arkansas, Florida, Georgia, Kentucky, Louisiana,
  Mississippi, North Carolina, South Carolina,
  Tennessee,Virginia

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Energy Efficiency Stats for Top 20 Energy
Efficiency Electric Utilities

• Each year, the top 20 energy efficiency utilities
  are saving 1.4 more of total electric sales
• On average, the top 20 energy efficiency
  utilities have already saved 12 of their total
  electric sales through the end of 2005.

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Virginia Energy Efficiency and Conservation
Savings Potential and Emerging Technologies
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The average achievable cost effective electricity
savings potential for these eight studies is 14
of total electricity kWh sales.
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Commercial Sector Cost Effective Savings
Potential Ten Tears from Now

• Electricity savings potential 17
• Natural gas 8
• Petroleum 21

Source 2007 Virginia Energy Plan, Chapter 3
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Emerging Energy Efficiency and Conservation
Technologies

• LED Lighting
• Micro-cogen
• Drainwater heat recovery systems
• Cool roofs
• Zero energy buildings
• Advanced refrigerator-freezer

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The Call For Demand Response

• The Energy Policy Act of 2005, for the first
  time, makes it federal policy to endorse demand
  response and encourage states to pursue this
  technology. The legislation states
• It is the policy of the United States that
  time-based pricing and other forms of demand
  response, whereby electricity customers are
  provided with electricity price signals and the
  ability to benefit by responding to them, shall
  be encouraged, the deployment of such technology
  and devices that enable electricity customers to
  participate in such pricing and demand response
  shall be facilitated, and unnecessary barriers to
  demand response participation in energy capacity
  and ancillary service markets shall be
  eliminated.

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Demand Response

• Takes load off the grid during times of peak
  electrical demand
• Is becoming a popular program option in an
  evolving electricity market
• Programs are currently offered through PJM
• Programs provide cost savings opportunities to
  consumer
• Programs face regulatory and institutional
  challenges
• Technology challenges associated with deployment
  are being overcome

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Role of Consumer Education on Energy Efficiency
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Role of Consumer Education

• Increase awareness of energy efficiency and
  Energy Star logo
• TV, radio and newspaper advertising
• Newsletters and bill stuffers
• Web site information
• Provide information
• Life-cycle costs, safety, where to purchase
  energy efficient equipment
• Change behaviors
• Purchasing decisions (buy Energy Star)
• Move closer to work

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Savings from Energy Efficiency
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City Schools Alexandria, VA

• Installed new double pane windows in most
  buildings
• Retrofitted lighting systems or replaced systems
  with current electronic ballast/T8 lamp
  technology
• Began installing energy-efficient roofing with 4
  inches of insulation and reflective white
  surfaces
• Replaced two electric heating/cooling systems
  with high-efficiency gas heating and electric
  cooling systems
• Replaced four chillers with energy-efficient
  chillers
• Replaced several boiler systems with
  energy-efficient boilers
• Replaced the energy management system with a
  modern HVAC automation system and pursued further
  energy-saving control strategies
• Educated building engineers on proper HVAC energy
  management and indoor air quality monitoring
• Controlled installation of equipment to simplify
  maintenance

Energy Savings approximately 15 of total energy
use
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658 Schools in New York State

• 658 schools in 140 districts in New York
  participated in the New York Energy Smart Schools
  Program.
• Hundreds of building engineers and facilities
  staff were trained to maintain and improve school
  buildings, providing a safe, healthy, and
  energy-efficient environment for learning.
• More than 15 percent of New York State public
  schools have taken advantage of these
  benchmarking and modeling tools, and have
  achieved significant results by implementing
  recommended improvements.
• Participating schools have lowered their energy
  consumption by an average of 19 percent

Energy Savings approximately 15 of total energy
use
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Summary

• Detailed evaluations show that government
  facilities can attain significant energy and
  money savings with energy efficiency programs
• Annual energy savings in the range of 10 to 20
  are common
• There are many programs available now to help
  government facilities save energy
• Utilities in Virginia are launching new pilots
• Rising energy prices have made energy efficiency
  programs much more imperative!