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From Past to Present: Energy Efficiency Programs and Industry Trends Kevin Bright Managing Director, Customer Efficiency Programs Duke Energy September 19, 2018 New Orleans, LA CEE 2018 Annual Industry Report Preliminary Data

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Page 1: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

From Past to Present: Energy

Efficiency Programs and Industry

Trends

Kevin Bright

Managing Director, Customer Efficiency Programs

Duke Energy

September 19, 2018

New Orleans, LA

CEE 2018 Annual Industry Report

Preliminary Data

Page 2: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

2

Evolution of Energy Efficiency

Preliminary Annual Industry Report Insights

Page 3: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

3

1970s

• Energy crisis and OPEC oil

embargo

• “Conservation”

1980s – Least cost planning

Mid-1990s

• Deregulation

• Some abandon least cost planning

• Implement EE resource standards

2000s

• Industry maturing to serve a host

of objectives in a more sustaining

way

How Efficiency

Programs Began

Page 4: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

4

Energy

delivery

has used

the same

business

model for

decades

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5

Page 6: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

6

Some Dynamics Utilities Face

12

Declining Electric

Load

• Energy efficiency and conservation

have become a part of the general

culture

• Growth of customer self-generation

• Increases to codes and standards

Need for Increased

Investment• Customers desire greater reliability,

resiliency after Superstorm Sandy,

etc.

• Generally aging infrastructure

• Use control technologies, Smart

Grid

• Cybersecurity

Disruptive Trends

• Communicating products

• Dynamic products

• Energy storage and accessibility to

renewable sources

• New market entrants

NEED/INSERT A GRAPH OF HISTORICAL LOAD TRENDS FOR EACH OF THE THREE UTILITIES.

Grid Quality

Credit Quality

Historical & Forecasted Electricity Growth

Utilities

are challenged

under the

existing

regulatory

model

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7

What is emerging integrated

demand-side management (IDSM)?

Integration of technologies at end user

homes and facilities

Integration of programs, delivering

customer solutions

Integration of DSM for power planning,

acquisition, transmission planning, and

reliability

Demand-side management refers to, and encompasses, both

energy efficiency and demand response programs

Page 8: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

8

Potential Benefits of Integration

CUSTOMER BENEFITSEnhanced engagement

Financial savings from new DSM

opportunities

Nonenergy benefits: remote

control, comfort, safety,

convenience, health, wellness, etc.

GRID BENEFITSGrid balancing and load

management

Grid signals, e.g. spinning

reserve, load delay, etc.

Program M&V data

Enhanced customer engagement

New IDSM Program Offerings

ENVIRONMENTAL

BENEFITSEnhanced air quality

Carbon reduction

Page 9: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

9

Page 10: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

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State and provincial regulatory

policy is in motion

Key considerations:

• Emerging utility business models

• Inclusion of nonenergy benefits

• Increased grid resiliency and efficient

use of grid capital

Page 11: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

11

Evolution of Energy Efficiency

Preliminary Annual Industry Report Insights

Page 12: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

12

CEE Annual Industry Report

Purpose

Scope

Collaboration

Preliminary Data

Page 13: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

13

US and Canadian Expenditure Trends

Preliminary data as of September 5, 2018

$5.3

$6.5

$7.4

$8.0 $8.0

$8.7 $8.7 $8.8$9.3

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

$10

2009 2010 2011 2012 2013 2014 2015 2016 2017

BIL

LIO

NS

US

DGasElectric

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14

US Electric Energy Efficiency and

Demand Response Expenditures

Preliminary data as of September 5, 2018

$3.8

$4.8

$5.7$6.1 $6.0

$6.7 $6.7 $6.7 $7.1

$0

$1

$2

$3

$4

$5

$6

$7

$8

2009 2010 2011 2012 2013 2014 2015 2016 2017

BIL

LIO

NS

US

D

Demand Response

Energy Efficiency

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15

Canadian Electric Energy Efficiency and

Demand Response Expenditures

Preliminary data as of September 5, 2018

$615

$745$712 $696 $700

$626

$562 $572

$737

$0

$100

$200

$300

$400

$500

$600

$700

$800

2009 2010 2011 2012 2013 2014 2015 2016 2017

MIL

LIO

NS

US

D

Demand Response

Energy Efficiency

Page 16: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

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US Energy Efficiency Expenditures by Customer Class

Preliminary data as of September 5, 2018

Electric

Page 17: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

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Program Categorization

Residential Customer ClassRank by % of

category

expenditures

Preliminary data as of September 5, 2018

Consumer Product

Rebate - Lighting

Whole home - Retrofit

Prescriptive - HVAC

0% 10% 20% 30%

Whole home - Audits

Page 18: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

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Program Categorization

C&I Customer ClassRank by % of

category

expenditures

Preliminary data as of September 5, 2018

Mixed Offerings

Custom

Prescriptive

New Construction

0% 10% 20% 30% 40% 50% 60% 70%

Page 19: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

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Program Categorization

Cross Sector Customer ClassRank by % of

category

expenditures

Preliminary data as of September 5, 2018

Planning, Evaluation

Other Program Support

Marketing, Education,

and Outreach

Codes & Standards

0% 10% 20% 30% 40% 50% 60%

Voltage Reduction /

Transformers

Page 20: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

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Energy Efficiency Program Industry

Projected DSM program expenditures

suggest investment increased in 2017

At CEE, members act as an industry,

accounting for about 80% of total DSM

expenditures

Final report will be available in 2019

Page 21: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

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Q&A

Page 22: From Past to Present: Energy Efficiency Programs and ... · CEE 2018 Annual Industry Report Preliminary Data. 2 Evolution of Energy Efficiency Preliminary Annual Industry Report Insights

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Kevin Bright

CEE Board Chair

Watch for full report on www.cee1.org