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Conservation and Energy Efficiency: Recent Performance, Future Potential

Conservation and Energy Efficiency: Recent Performance, Future Potential. Jeff Schlegel Consultant to the CT Energy Conservation Management Board Connecticut’s Energy Future December 2, 2004. Background.

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Conservation and Energy Efficiency: Recent Performance, Future Potential

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  1. Conservation and Energy Efficiency: Recent Performance, Future Potential Jeff Schlegel Consultant to the CT Energy Conservation Management Board Connecticut’s Energy Future December 2, 2004

  2. Background • Connecticut Conservation and Load Management Fund (C&LM) was created by the State Legislature to provide cost-effective energy conservation programs • C&LM programs are administered by the electric distribution utilities (CL&P and UI) • Energy Conservation Management Board (ECMB) was created by the Legislature to advise and assist; input & review function • Department of Public Utility Control (DPUC) is responsible for final approval of the C&LM programs

  3. Energy Efficiency (or Energy Conservation) • Products, services, or practices aimed at reducing the energy used by specific end-use devices and systems, by substituting technically more advanced equipment or practices to produce the same or improved level of service with less energy use • Energy efficiency is NOT curtailment • Benefits customers, the electric system, the environment, and the economy • C&LM also funds load management and supports load response (though not addressed in this presentation)

  4. C&LM Expenditures and Benefits • $89 million/yr collected from ratepayers • C&LM expenditures range from about $89 million in full funding years (2000-01) to about $60 million in recent years (balance was allocated to deficit reduction, DPW) • 60+ MW of energy efficiency resources provided in a full funding year • Reduces annual load growth by 50-80% • Energy efficiency is the least cost resource ~ $.02 to $.05 per lifetime kWh, delivered • Provides ~$3 in benefits per $1 invested

  5. C&LM Funding

  6. Potential for Energy Efficiency • Study for the Connecticut ECMB • Estimate the achievable cost-effective potential for energy conservation and energy efficiency resources over the 2003-2012 period in three geographic areas: • Connecticut statewide (CL&P and UI) • The 52 towns in constrained SW CT • The 16 critical constrained towns in SW CT (Norwalk-Stamford area)

  7. Focus and Scope of the Study • Maximum achievable,cost-effective potential (not the technical potential) • Energy efficiency only (not load management or load response) • Limited to cost-effective options that are commercially available now • Residential, commercial, industrial sectors

  8. Study Findings • Very large energy efficiency potential remaining; opportunities in all sectors • Capturing the achievable cost-effective potential for energy efficiency would reduce peak demand by 13% (908 MW) and electric energy use by 13% (4,466 GWh) by 2012 • Would result in (approx.) zero growth in electric load from 2003 through 2012 • Net benefits of $1.8 billion

  9. Capturing Energy Efficiency Potential is Very Cost-Effective

  10. Conclusions • Energy efficiency benefits customers, the electric system, the environment, and the economy: ~$3 in benefits per $1 invested • Very large energy efficiency potential remaining; significant cost-effective opportunities in all sectors • ISE potential study found similar results • Connecticut should increase energy efficiency efforts to capture the benefits

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