State Clean Energy Resource Project for South Carolina

Preview of Energy Efficiency Study for the State of South Carolina

June, 2009Suzanne WatsonPolicy Director

The American Council for an Energy-Efficient Economy (ACEEE)

Nonprofit 501(c)(3) dedicated to advancing energy efficiency through research, communications, and conferences.

~40 staff in Washington DC, + field offices in DE, IL, MI, and WI.

Focus on End-Use Efficiency in Industry, Buildings, Utilities, and Transportation; Economic Analysis & Human Behavior; and State & National Policy

Funding:

• Foundations (34%)

• Federal & State Grants (7%)

• Specific Contract work (21%)

• Conferences and Publications (34%)

• Contributions and Other (4%)

Why Energy Efficiency? The 1st Fuel

Source: Lazard 2008 except (a) ACEEE 2007

Average Cost of New Electric Resources

-

2

4

6

8

10

12

EnergyEfficiency

(a)

Wind Biomass Nat. GasCombined

Cycle

PulverizedCoal

Thin FilmPV

Nuclear SolarThermal

Coal IGCC

Lev

eliz

ed C

ost

(ce

nts

/kW

h)

ACEEE State EE Policy Overview

Four coordinated elements:

• State Clean Energy Resource Project (SCERP): Prepare 3-4 state energy efficiency potential studies per year

• Annual State Energy Efficiency Scorecard

• State Energy Efficiency Policy Database on the Web

• Follow-up technical assistance

See: http://aceee.org/energy/state/resources.htm

State Energy Efficiency Scorecard

• ACEEE state-based scorecards on utility-sector efficiency spending and energy savings: 2000, 2002, and 2005

• Expanded to more comprehensive assessment of 8 state efficiency policy areas: 2007 and 2008 editions funded by U.S. EPA and DOE

• Goal to continue to refine, expand Scorecard for annual production

2008 State Energy Efficiency Scorecard Results

Project Approach

Stakeholder outreach:• State Government • Utilities and Co-ops• Industrial consumers• Public interest groups• Low-income advocates

State-specific data collection

Analysis and report preparation

Report release

Policy Implementation Assistance

Stakeholder Engagement

Process

ACEEE Energy Efficiency Resource Potential Analysis

Final Report to Stakeholders

and Media Outreach

Levels of Energy Efficiency Potential

1. Cost-Effective (Economic) Potential

2. Policy (Achievable) Potential

Residential, Commercial and Industrial sectors (Transportation also for some states in 2009)

Policy Achievable Resource

Cost-Effective Resource

2006 Savings from Electricity Efficiency Programs by State

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

Rhode

Isla

nd

Mas

sach

uset

ts

Califo

rnia

Idah

o

Mai

ne

Wisc

onsin

New J

erse

y

Florid

a

Tenne

ssee

South

Car

olina

Alaba

ma

North

Dak

ota

New M

exico

Illinois

Delaw

are

Mich

igan

West

Virgini

a

Ele

c. s

avin

gs

as %

of

tota

l ele

c. s

ales

(%

)Top 15 states account for 75% of total savings

Total 2006 Savings = 7.8 TWh or 0.2% of elec. sales

Avg.

Scoring5 pts

4 pts

3 pts

2 pts

1 pt

Source: EIA; ACEEE survey data

Suite of 11 Policies Analyzed in VA

Policies included:• EE Resource Standard• Manufacturing Initiative• Combined Heat &

Power• Codes & Standards• Gov. Facilities• Public Education• Demand Response

Energy Efficiency Resource Standard

(EERS)51%

Combined Heat and Power

5%

Manufacturering Initiative

10%

State Government

2%

Local Government

4%

Building Energy Codes10%

Appliance Efficiency Standards

19%

Impact of Efficiency Policies on Electricity Needs in Virginia

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2008 2013 2018 2023

Ele

ctri

city

Co

nsu

mp

tio

n (

GW

h)

Appliance Standards

Building Codes

State and Local Government

Manufacturing Initiative

CHP Supporting Policies

Energy Savings Target

Adjusted Forecast

19%

Potential Economic Impacts of the Implementation of EE Policies in VA• $26 billion cumulative gross consumer savings

on electric bills by 2025 (on $220 billion in electric bills in B.A.U.)

• $11 billion cumulative energy efficiency investments through 2025

• $15 billion cumulative net consumer savings on electric bills by 2025

Net Impacts on EE Policies on VA Economy

Net Macroeconomic Impacts

2015 2025

Jobs (Actual) 675 9,820

Wages (Million $2006) 63 583

GSP (Million $2006) 202 882

Upcoming Projects for EE in the SE

North Carolina - assessment of energy efficiency policy opportunities; focus on transportation and water efficiency

South Carolina - study on electricity energy efficiency and water EE opportunities

Possible future studies/technical assistance: Tennessee and Arkansas

Proposed EE Recommendations for South Carolina Study

Advanced EE Buildings Initiative Appliance and Equipment Standards Behavioral Initiative Building Energy Codes and Enforcement Combined Heat and Power Demand Response Energy Efficiency Resource Standard

Additional Potential Study Recommendations Lead by Example Low-Income Efficiency Programs Manufacturing Initiative Municipal Water/Wastewater Initiative Rural and Agricultural Initiatives Water Efficiency Resource Standard Water/Electricity Attribution Issues Workforce Initiative

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000S

ou

th C

aro

lina

Pro

ject

ed C

on

sum

ptio

n G

row

th (G

Wh

)

Total Consumption Residential Commercial Industrial

Industrial, -0.5%

Commercial, 1.6%

Residential, 1.1%

Total, 0.7%

Historical

Electricity Reference Case

Considerations…

Energy efficiency has emerged as a key policy issue at the state level – why?

Cheapest, fastest, cleanest resource Southeast is behind the rest of the country on

EE efforts == major low hanging fruit States are stepping up – still waiting on some

including the federal government SC - poised to move to the next level?

Contact Information:Suzanne WatsonPolicy Director202-507-4006swatson@aceee.org

Maggie EldridgeResearch Associate, State Policy202-507-4004meldridge@aceee.org

529 14th Street, NW, Suite 600

Washington, DC 20045

http://www.aceee.org