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Innovative Models for Advancing Efficiency

This presentation by Ed Wisniewski at the CEE Natural Gas DSM Summit discusses innovative models for increasing efficiency in the natural gas sector. Key strategies include the Golden Carrot™ program, manufacturer competition incentives, and bulk procurement initiatives aimed at promoting new products like energy-efficient refrigerators. The presentation emphasizes the importance of collaboration among stakeholders, performance specifications, and joint campaigns such as ENERGY STAR, highlighting the need for ongoing communication and innovative approaches to market challenges.

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Innovative Models for Advancing Efficiency

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  1. Innovative Models for Advancing Efficiency Ed Wisniewski CEE Natural Gas DSM Summit November 7, 2006 Dallas, TX

  2. “Innovative” Models • Golden CarrotTM (SERP) • Manufacturer Competition • Pool Funds • Secure the Design, Manufacturer and Promotion of a New-to-the-Market Product (Refrigerator) • Bulk Procurement (CEE/NYPA SEAR) • Encourage Competition for New Markets or Market Share • Potentially Alleviate Market Risk • Attract Attention to Issue, Sponsors and Winner

  3. “Innovative” Models • Design Charrette (CEE/ALA/DOE Efficient Lighting) • Inform Designers of Technical Capabilities • Encourage Interaction between Designers and Technical Staff • Emphasize Unique Properties of Technology • Capture General Conclusions on New Applications/Uses • Design Competition (LFT) • Encourage Development and Production • Attract Key Market Player Attention • Prime the Sales and Distribution Pipeline

  4. “Innovative” Models • Common Program Components (CEE HVAC Initiatives) • Performance Specs • Tiers • Guidance/Messaging • Joint Campaigns/Branding (ENERGY STAR/MDM) • Establish Credibility of Concept/Ease of Identification • Create Focus on Desired Issue • Provide Multi-Stakeholder Endorsement • Encourage Ongoing Stakeholder Communication • Provide Platform for Efficient Delivery of Messages, Tools and Calls to Action • Equipment Directories (CEE/ARI a/c Equipment) • Credible Guidance Particularly in “Noisy” Markets • Conferences/Summits/Venues for Focused Interaction (Industry Partners)

  5. Sample Considerations Program Administrators 1. Desired Outcomes 2. Time Horizon 3. Assets Available a. Financial b. Endorsement c. Technical Expertise d. Business/Market Expertise e. Communication Infrastructure f. Service Areas Coverage g. Relationship with Market Stakeholders 4. Tolerance for Failure 5. Restrictions a. Legal b. Regulatory c. Management d. Political 6. Level of Flexibility

  6. Sample Considerations Market Considerations 1. Magnitude of Savings Potential 2. Feasibility of Savings a. Number of End Users b. End User Responsible for Purchase c. Useful Life of Equipment or Measure d. Price Sensitivity e. Product Performance f. Energy Performance Significantly Different and Noticeable g. Savings Accrues to End User/Decision Maker h. Complexity of Distribution/Installer Network i. Communication Infrastructure in Place 3. Stakeholder Circumstances a. Number of Stakeholder Industries b. Presence of Dominant Stakeholder (s) c. Motivations d. Business Sophistication/Marketing Capabilities 4. Defining Industry Characteristics a. Commodity Goods b. Seeking Differentiation c. Duration of Product Cycles

  7. General Observations • Dynamic Nature and Complexity of Markets Contribute to Difficulty of Assessment • Unintended Consequences, Good or Bad, are Likely • Avoid Use of a Jack Hammer When a Simple Hammer will do • A Cooperative, Inclusive, Focused and Considered Approach is Likely to Provide Significant Leverage and Minimize Detrimental Market Disruption

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