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Ten Year Energy Plan - Energy Efficiency and Demand Management
Wind Farm Rural Oregon Juntura Oregon Solar array on Oregon Capitol Building Ritner Creek Covered Bridge

 

 

   
Ten Year Energy Plan - Energy Efficiency and Demand Management
Chair
Susan Ackerman Public Utility Commission
Members
Roger Gray Eugene Water and Electric Board
Jeff Harris Northwest Energy Efficiency Alliance
Margie Harris Energy Trust of Oregon
Marty Sedler Intel Corporation
Derek Smith Clean Energy Works Oregon
Phil Welker Portland Energy Conservation Institute
Design Team Staff:
Theresa Gibney Oregon Department of Energy (ODOE)
Vijay Satyal Oregon Department of Energy (ODOE)

Charge

Energy conservation and efficiency are the foundation of Oregon energy policy.  

Although further analysis is required to understand how the Northwest Power and Conservation Council’s Sixth Power Plan’s energy efficiency targets align with Oregon’s climate change and renewable energy goals, it is reasonable to use the Plan’s goals as a starting point with respect to the electric sector.  Although it appears that Oregon is already exceeding its share of the Sixth Power Plan’s energy efficiency targets, significant changes may be necessary in order for the state to continue to aggressively develop cost-effective energy efficiency.   

The team should also consider how fundamental changes in the NW energy market and large amounts of new variable renewable generation make demand management a critical component of the plan.  Energy efficiency has and will remain a foundational element, but demand management will be a growing element with different sorts of requirements.

The State must also adopt appropriate targets for natural gas savings and should target the most efficient end uses when considering all fuel types used in the state (i.e., including diesel, wood and propane).

The State’s 10 Year Plan should contain an integrated vision and targets for energy efficiency and demand side management that ensure that the state captures all cost-effective savings.  In doing so, the state should look across all energy sources to find the most efficient energy source depending on the desired end use.  The goal of the state’s efforts should be to maximize the efficiency of the entire market across all fuels.   To avoid waste in the energy sector the plan should consider the full fuel cycle of the energy used.  

While the state is building from programs that are performing well, there may be new and innovative methods to promote efficiency that deserve consideration.  To the extent that a financing tool for private capital, regulatory support, consumer education, removal of barriers and market mechanisms can be developed that can accelerate energy efficiency retrofits, the Plan’s goal should not be seen as a limitation.  As the team explores the possible deployment of private capital, it should consider creating investment opportunities on the demand side that parallel those on the energy supply side.

The team, along with the other Design Teams, should also consider how energy-related policies will impact the economy, with particular focus on accelerating job growth in Oregon. 

Remembering that a significant amount of work has been done by the Global Warming Commission, the Northwest Energy Efficiency Alliance and others on these subjects, please address the issues below.

Targets for Sectors

In order to meet or exceed the Plan’s goals, different sectors of energy use (residential, commercial, industrial) will require different tools.  Please identify the relevant differences in the sectors. 

Incentives

What incentives will be needed, perhaps even by sector, to meet the Power Plan’s goals and, if possible, to go beyond those goals?  How much of the cost of energy efficiency and demand management retrofits and upgrades should be borne by taxpayers and ratepayers (e.g., how much benefit of such activities runs to those groups as opposed to private capital)?  Recognizing fiscal limitations, what market incentives could be provided beyond what already exists?  Are new financing mechanisms needed to pay for efficiency improvements?  What mechanisms are most likely to succeed in the different sectors?

Regulatory Change

The Governor has called for significant changes in our regulatory structure in order to reach a point where a kWh (or equivalent) saved is treated the same as a kWh (or equivalent) generated.  For both investor and consumer owned utilities, what changes must be made to make this a reality?

Legislative Change

Given the incentives and regulatory changes identified above, what legislative fixes may be necessary?  Are there additional legislative frameworks that must be changed?

Smart Grid

Improved demand-side management has real benefits for energy use and the transmission system generally.  What is the role of smart grid in meeting the Plan’s energy efficiency targets?  Please identify achievable advances in Smart Grid technology over the next ten years.  What are the necessary steps to making those advances?

Accelerating an Industry in Oregon

Oregon already has a substantial industry in advanced services and materials for the built environment.  How can the state ensure that advances identified above help it accelerate this industry, leading to more traded sector opportunities, clean energy jobs and job retention?