2019-2021 September 14th Draft Plan EEAC Meeting September 27, - PowerPoint PPT Presentation

2019-2021 September 14th Draft Plan EEAC Meeting September 27, 2018

PA Goals for the 2019-2021 Plan  Meet the Commonwealth’s evolving needs from and expectations of Energy Efficiency  Incorporate and operationalize the new Energy Optimization framework  Lay the groundwork for ongoing success in light of upcoming changes to Energy Efficiency landscape  Maintain Massachusetts’s national leadership position in Energy Efficiency  Reflect priorities and investment areas as conveyed by Council 2

Plan focus areas Energy Optimization Residential Program Updates • • Increase contractor and partner Holistic, integrated approach to ability to drive weatherization & helping customers reduce overall HVAC for all customers energy usage • • “Fuel neutral” education and option Expands contractor market in to more multi-unit buildings presentation seeks to provide paths • Increases consistency in offers forward for all customers across programs Active Demand Reduction Moderate Income Customers, Renters and Battery Storage and Non-English Speakers • • No cost weatherization for moderate Technology agnostic approach to incentivizing peak load shed from income customers • residential, C&I customers Enhanced partnership model with municipalities with historically low • Specialized performance-based participation rates incentives for battery storage • Expanded language services via Mass deployed in service of system peak Save phone line and in follow-up reductions 3 communications

Energy Efficiency Portfolio Impact over Plan Term Lifetime savings MWh (Electric) Therms (Gas) MMBTUs (Total) 33,521,427 1,063,774,961 216,936,178  Proposed budget increase to $2.65 billon reflects sustained investments in EE balanced against requirement to manage customer bill impacts  Net summer capacity savings of nearly 350MW, approximately 400MW of winter demand reduction by 2021  $7.8 billion in economic benefits*  2.4 million short-ton reduction in GHG emissions (250,000 short-ton increase in reductions from 2016-18 plan) 4 *Inclusive of values from DOER study of avoided costs associated with GWSA compliance

Energy Efficiency Portfolio Long-term Impact Massachusetts Electric Demand – Massachusetts Electric Energy Use – Actual and Forecast Actual and Forecast 80,000 18,000 16,000 70,000 14,000 60,000 12,000 50,000 10,000 GWh MW 40,000 8,000 Forecast 30,000 Forecast 6,000 Gross Summer Demand 20,000 4,000 Net Summer Demand 10,000 Gross Winter Demand 2,000 Gross Energy Net Winter Demand Net Energy 0 0 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 5 Source: ISO-Ne 2018 CELT

Residential evaluation impacts are real **From EEAC Consultant Presentation given to EEAC on 8/29/18. http://ma-eeac.org/wordpress/wp-content/uploads/Consultant-Goals-Estimate.pdf 6

Costs to Achieve Savings are Increasing Electric Cost to Deliver $1,200 $1,157 $1,050 $900 $776 $750 $/Annual MWh $634 $600 $451 $404 $450 $300 $379 $352 $150 $- 2013-2015 2016-2018 2019-2021 7 Planned Evaluated BAU + Max Potential

Despite challenges, plan reflects commitment to growth of EE Summer Capacity Reductions Sum of Adj Gross Annual Natural Gas (Therms) 400 30,000,000 29,500,000 350 29,000,000 300 28,500,000 250 28,000,000 200 27,500,000 27,000,000 150 26,500,000 100 26,000,000 50 25,500,000 - 25,000,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2016 2017 2019 2020 2021 MW from EE Active Demand Reduction Evaluated Evaluated Planned Planned Planned 8

PA Plan Summary  Plan budget, focus areas reflect PA commitment to EE, and to priority areas identified by Council  Net claimable savings targets reflect achievable commitments in light of market realities  Plan commits PA’s to absolute growth in areas where growth is achievable, aligned with Commonwealth policy goals 9

Residential Updates

Residential New Buildings  Strategic Enhancements and Major Innovations  Pay for Savings  Additions and Renovations  Zero Energy and Zero Energy Ready  New Passive House Offer 11

Residential Coordinated Delivery Strategic Enhancements and Major Innovations: • Increase the ease of participation for all customers • Enhanced facilitated options to promote major measure adoption • Tailored Energy Savings Packages • Better coordination for mixed income buildings • Engagement with municipalities and communities on strategies to reach and serve all residents 12

C&I Updates

C&I New Buildings & Major Renovations Updates, Additions & Refinements  Clarity of customer pathways  Expanding Technical Assistance and Design Support  Inclusion of Passive House supporting incentives and training support  Exploring the ability to support State and National Equip. Standards 14

C&I Existing Buildings Updates, Additions & Refinements  Clarity of customer pathways  Clarified efforts and support for Lighting, HVAC, Controls, Process and CHP efficiency  Expanding Technical Assistance and Industrial/Process support  Expanded Small Business Section  Addition of targeted marketing and community partnership strategy  Clarity and Expansion of Offerings for Municipalities  Addition of educational webinar for municipalities and exploration of statewide municipal outreach partnership  Updated Active Demand Reduction Offerings 15

Cross Sector Initiatives and Models

Passive House Incentives & Trainings  Program Administrators are excited to launch a forward-looking Passive House offer within the Residential New Homes and Renovations initiative and the C&I New Construction Initiative Incentives Recipient Details Modeling Subsidy Owner Copay of WUFI or PHPP modeling costs or early feasibility study Design Team Architect, Design $/kWh and $/therm incentives for Incentive Team projects achieving pre certification and certification (if applicable) Design Charrette Architect, Design Sustainability charrette in either SD or Team DD design phases, directed to design team lead Certification Subsidy Owner Adder per unit for achieving PHIUS or PHI certification Performance Owner $/kWh and $/therm incentives for Incentive savings where projects are performing more efficient than the Mass Save baseline 17

Active Demand Reduction Updates, Additions & Refinements Residential & Low Income Commercial & Industrial  Updated Residential direct load  Updated C&I interruptible load control curtailment  Added Residential storage  Added C&I storage Performance performance  Added Electric vehicles demand  Clarity of customer participation control pathways (fully integrated)  Added Temperature optimization  Clarity of customer participation pathways (fully integrated) 18

Municipal and Community Partnership Model  Program Administrators are focused on developing a statewide municipal and community partnership strategy to target communities interested in promoting EE and/or identified as having lower program participation.  Goals:  Create stronger connections to municipal governments for increasing program awareness and customer participation.  Gain insights to effectively promote participation to renters/landlords, multilingual customers, and other hard-to-reach populations.  Establish a two-way communication channel for municipalities.  Municipal marketing & outreach strategies  Educational webinar for municipalities  Exploring statewide municipal outreach partnership  Community targeted EE coordination approach  EE & ADR for Municipal Customers (C&I accounts)  LED streetlights conversion incentives – Customer & Company Owned  Existing buildings – upgrading buildings and controlling demand  New Buildings & Major Reno – making new town buildings as efficient as budgets allow for decades to come 19

Discussion 20