# Presentation: 327586

## The Evolution of Energy Efficiency toward New Frontiers

***Integrating Utility Energy Efficiency Programs with State, Regional and National Energy Policy***

**Tim Stout**
**VP – Energy Efficiency**
**National Grid USA**
**September 28, 2004**

## Overview

**Ngrid’s success with efficiency**
**Long-term impacts and benefits**
**Transformation of markets toward increasingly efficient equipment**
**Transition toward regional and national programs (e.g. Energy Star)**
**Synergies with energy efficiency standards and building codes**

## Energy Efficiency: Building on 18 years of experience 

- $74 million annual budget collected through systems benefit charge
- Participation by over 65% of all customers
- $210 million in annual savings on customers’ electric bills
- Demand reduction achieved to date equivalent to the output of two combined cycle gas plants
- 1.6 million tons of emissions reductions per year
-  equivalent to removing 195,000 cars from   the roads
- Five programs nationally recognized as exemplary by the American Council for an Energy Efficient Economy (2003)

## Benefits of Efficiency Programs

_**For Customers:**_
- Enhanced customer service from utility
- One-on-one relationships with Account Managers
- Reduced operating costs
- Continual exposure to newest efficient technologies
- Access to trusted technical expertise and financial assistance
- Assistance in meeting environmental goals

## Benefits of Efficiency Programs (cont.)

_**For National Grid:**_** **
- Stronger, long-term relationships with customers
- Better understanding of customers’ needs
- Improved reliability of distribution system
- Reduced investments in distribution system
- Shareholder Incentives
- Ability to serve a vital role in continually improving the energy efficiency of the region
- Complements National Grid’s commitment to conduct business in an environmentally and socially responsible manner
- e.g. Mitigate impact on global climate change

## Evolution toward Regional and National Initiatives

- Many residential programs are now offered regionally
- Energy Star Homes
- Energy Star Lighting
- Energy Star Appliances
- Greatly increases the level of participation by consumers, manufacturers, distributors and builders
- Increases the potential impact of such programs beyond what could be achieved by one utility
- Broadens recognition and understanding of the programs
- Leads toward continual improvements in efficiency levels as new products are introduced**	**

## U.S. Refrigerator Use vs. Time

- Source:  “Electrical Energy Consumption in California: Data Collection and Analysis,” S.M. Berman, et. al., Lawrence Berkeley
- Laboratory, UCID 3847, 1976 for 1947-1975 data.  Association of Home Appliance Manufacturers for 1972, and 1978-1995 data.

## Integral Relationship between Efficiency Programs, Efficiency Standards and Building Codes

- Efficiency
-  Programs

- Market awareness
- and acceptance of
- new energy efficient measures
-  and practices

- Introduction of new efficient measures and practices

- Adoption of new
- building codes

- Introduction and
- adoption of higher
- state and/or federal
- efficiency standards

**Efficiency programs**
**help jump start the shift**
**to new technology**

## Key Lessons Learned: The Evolving Cycle of Efficiency

- Competition between equipment manufacturers results in the introduction of increasingly more efficient technologies in the market place. (e.g.  Refrigerators, lighting fixtures and controls)
- Energy efficiency programs can accelerate the adoption of new technologies by consumers
- Such programs offered on a regional and national basis can greatly increase the rate of adoption
- Once a new technology gains traction in the market, new federal efficiency standards can be introduced to mandate adoption on a national basis and/or the technology can be incorporated into new progressive building codes

## Key Lessons Learned: The Evolving Cycle of Efficiency (cont.)

- This cycle has enormous implications for the role efficiency can play in state, regional and federal energy policy
- Continual tracking of product evolution can ensure that efficiency standards are advanced on a timely basis
- Building codes and efficiency standards are considerably more cost-effective mechanisms for achieving energy savings than utility efficiency programs; however, such programs play a critical role in establishing the foundation for new codes and standards