University of Delaware July 6, 2010 Proof-of-Concept, SBIR/STTR Funding, and Business Incubation.
Funding Energy Efficiency Efforts in Delaware
Transcript of Funding Energy Efficiency Efforts in Delaware
Funding Energy Efficiency Efforts in Delaware
Reducing Energy Use Workgroup June 16, 2008
Phil Cherry, DNREC
Energy Efficiency• Energy Efficiency is the cleanest, cheapest source of
new power• Energy Efficiency saves ratepayers money• Energy Efficiency promotes energy security• Energy Efficiency reduces the need for costly
transmission• Energy Efficiency reduces peak demands and reduces
the overall cost of power to utilities• Energy Efficiency can promote economic development,
competitiveness, investment and job creation
Energy Efficiency
Residential Appliance ProfileDelaware Residential Electricity End-Uses
Space Heating11%
Water Heating11%
Air Conditioning8%
Electric Appliances31%
Other39%
Delaware Residential Sector Electric Appliance End Use
Lighting17.7% Clothes Dryers
11.8%
Freezers9.8%
Furnace Fans3.3%
Televisions9.8%
Cooking13.8%
Refrigerators29.5%
Ceiling Fans1.1%
Computers0.9%
Pool Pumps0.9% Well Pumps
0.7% Dehumidifiers0.7%
Commercial and Industrial ProfilesDelaware Commercial Sector Major Energy End Uses
(including electricity system losses)
Space Heating19%
Cooling8%
Ventilation5%
Water Heating5%
Lighting36%
Cooking2%
Refrigeration7%
Office Equipment9%
Other9%
Delaware Industrial Sector Major Energy End Uses (Excluding Refinery and Chlor/Alkalai End Users)
(including electricity system losses)
Boilers25%
Process Cooling/ Refrigeration
4%
Other6%
Process Heating16%
Lighting4%
Facility HVAC7%
Motors/ Machine Drive33%
Other Non-Process5%
7/3/2008 Source: ACEEE, October 2005
2003 Electric Energy Efficiency Spending per Capita
Rank State 2003 Spending/Capita 2000 Rank
1 Vermont $28.26 5
2 Massachusetts $21.49 2
3 New Hampshire $16.41 16
4 Washington $15.21 11
5 Rhode Island $14.31 3
47 District of Columbia - 28
48 Kansas - 50
49 Delaware - 20
50 Virginia - 51
51 Wyoming - 21
US Average $4.65
Efficiency and the Green Energy Fund
• System Benefit Charge (SBC) created by HB 10• Payable by Delmarva customers only (Muni’s and
Co-op have separate programs)• Mil charge = $0.000356/kwh
– Generates ~$3 million/year• 65% to the Green Energy Endowment Program • 25% to the Technology Demonstration Program• 10% to the Research and Development Program
• Existing Program focused on Renewables – by statute
• Efficiency Expenditures = $0.00
Energy An$wers Program
• Energy Efficiency Financial Incentives Act of 2006 - SB 281
• $8 million one time appropriation• Expenditure plan approved June, 2006• Provide incentives to residential and non-
residential ratepayers statewide• $100,000 set-aside for sustainable utility
study
Energy An$wers ProgramFour targeted segments tailored to different needs: • Flip the Switch Delaware – CFL Campaign (Twisty
Bulbs) – Program concluded• Delaware Energy An$wers for Home Appliances• Delaware Energy An$wers for Business
• Just An$wers – Grants for audits and feasibility studies• Prescribed An$wers – Grants for lighting, refrigeration,
motors, HVAC• Customized An$wers – Grants for unique projects or
comprehensive projects.• Delaware Energy An$wers for Home Performance
Energy An$wers Program• Flip the Switch Delaware!
– 71,340 Delawareans participated– 142,680 light bulbs distributed– Potential energy savings 40,239,144 kWh of energy
valued at $4,023,914 in energy costs– Preventing 63,497,940 pounds of greenhouse gas
emissions– Equal to removing 2258 cars from the road for 1 year. – Ranked #1 in the Nation for commitment to CFL’s– 25-35% increase new patron library cards (unofficial)
Flip the Switch and LibrariesBulbs per Library
4,232
9,800
13,888
1,8521,997
616 5041,320
2,334
9,708
2,951
1,368
4,700
2,8622,112
5,0005,770
11,826
456
4,404
5,9726,244
4,040
1,452
2,734
7,300
1,968
4,000
5,416
2,238
3,884
6,488
144
3,100
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Appoq
uinimink C
ommunit
y Libr
ary
Bear P
ublic
Librar
y
Brandy
wine H
undred
Libra
ry
Bridge
ville P
ublic Li
brary
Claymont
Public L
ibrary
Corbit-C
allow
ay M
emorial
Librar
y
Delaware
City
Public L
ibrary
Delmar
Public L
ibrary
Division
of Libr
aries
Dover
Public
Librar
y
Elsmere
Public
Librar
y
Frankfor
d Publi
c Libr
ary
Georgeto
wn Public
Librar
y
Greenwood
Pub
lic Lib
rary
Harringto
n Pub
lic Lib
rary
Hocke
ssin
Public L
ibrary
Kent C
ounty
Librar
y
Kirkwoo
d High
way Publi
c Libr
ary
La Bibl
iotec
a del P
ueblo
Librar
y
Laure
l Pub
lic Li
brary
Lewes P
ublic L
ibrary
Milford
Distric
t Free P
ublic
Librar
y
Millsbo
ro Pub
lic Lib
rary
Milton P
ublic
Librar
y
New C
astle
Public
Librar
y
Newark
Free Li
brary
North W
ilmingto
n Bran
ch
Rehobo
th Bea
ch Pub
lic Lib
rary
Seafor
d Dist
rict L
ibrary
Selbyv
ille Publi
c Libr
ary
Smyrna Pub
lic Li
brary
South
Coasta
l Libr
ary
Susse
x Cou
nty Boo
kmob
ile
The Wilm
ington I
nstitut
e Libra
ry
Library
Bul
bs
Energy An$wers Program• Energy An$wers for Home Appliances (as of 1/31/08)
– 4,577 Participants (Kent – 643; Sussex – 1286; New Castle – 2648)
– $735,289 total funds paid - $260,400 reserved– Average grant per applicant - $160– 8,333 Appliances– Estimated savings = 28,413,290 kWh lifetime – The Results:
• The cost of appliance efficiency $0.03/kwh• The cost of delivered power $0.14/kwh• CO2 not emitted 39,000,000 lbs • NOx not emitted 100,000 lbs • SO2 not emitted 320,000 lbs
Energy An$wers ProgramThru 1/31/08
550
1082
177
1993
873550
3108
0500
100015002000250030003500
Refrige
rators
Freezer
sTop
Load w
asher
Front lo
ad wash
erWind
ow A
CCent
ral A
CHot
water ta
nks
Energy An$wers Program• Energy An$wers for Business
– up to $100,000 per facility or $200,000 per businesses
– Must be engaged in business in Delaware and located in Delaware.
– Grants will not buy down any project with an 18-month or less simple payback
• Results as of 1/31/08– 11 Completed Projects totaling $365,000– 20 Pending projects potentially reserving an
additional $850,000 in grant funds– Total Application and Pending Projects $1.215M
Sustainable Energy Utility (SEU)
• New program designed to promote efficiency and customer cited renewables (PV, geo, wind)
• Unique approach - all fuels; all sectors• Private sector bonds used to capitalize initial
program• Shared savings model for long term• Average Yearly SEU Energy Efficiency
Spending: 2008-2010 projected $6.7 million for Residential Commercial/Industrial and Transportation (Source: UD CEEP, March 2007)
Regional Greenhouse Gas Initiative (RGGI) Background
• Designed to reduce CO2 emissions from fossil fired energy generating facilities
• 10 state Governor’s collaborative initiative• Delaware an original signatory state• “Cap and trade” program similar to NOx and Acid rain
programs already in place.• Stabilization of CO2 emissions thru 2015; 10%
reduction from current levels by 2019• Regulations being promulgated in 2008• Statutory change required to handle sale of CO2
allowances – SCR 28 Workgroup• Bill required this session for DE to participate - SB 263
Cap and Trade Basics• Successfully used previously for NOx and SOx• Proven technique – reductions at lowest possible cost• Ideal for use with “global” pollutant• How it works:
– Agree to a baseline (avg. annual emissions from 2000-2002)– Tally up all emissions (188 MMT in 10 states; 25+ MW power
plants)– Agree on a cap (stabilization to 2015; 10% by 2019)– Create and allocate “allowances” (via regulations in each
state)– Disburse allowances (allocate 40%, auction 60%?? )– Regulation requires generators to have allowances to “cover”
emissions– Reduce your emissions, trade or purchase allowances as
needed– Periodically surrender those allowances to stay in compliance
RGGI Specifics
• Auctioning of allowances - beginning at 60% in 2009 ramping up to 100% in 2013 – requires legislative approval
• Auction proceeds to:– Energy efficiency and renewables through the Sustainable Energy
Utility– Low income programs– Carbon abatement fund– Administrative expenses
• 1-2% increase in avg. energy price possible by 2015• Rate payer impacts mitigated by efficiency investments and low
income programs• Costs dependent on markets and allowance prices• Jump start on federal program (likely not until 2015)• Comprehensive Review of Program in 2012• Delaware enabling legislation required this year
RGGI Revenues for Efficiency?
• Using a base of 6.4 million allowances– At 60% auction level and $2 allowance
price = $7.7 million• With 65% to the SEU = $5 million/yr
– At 100% auction level and $2 allowance price = $12.8 million
• With 65% to the SEU = $8.32 million/yr– Other allowance prices yield other results
2004 Energy Efficiency Spending By StateWith and Without RGGI Revenue
Source: ACEEE 2007
0
5
10
15
20
25
Vermont
Oregon
Washington
New H
ampsh
ireNew
Jersey
Maine
Wisconsin
DELAWARE WITH R
GGI (#15)
Hawaii
Idaho
Washington DC
Texas
Nebras
kaOhio
New M
exico
Michigan
South Dakota
West Virg
iniaIndian
aIlli
noisMiss
ouriGeo
rgiaOkla
homaLouisi
ana
DELAWARE (#50
)Pe
r Cap
ita S
pend
ing
($)
$7.65$7.65