Energy Efficiency and the TEP Resource Plan
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Energy Efficiency and the TEP Resource Plan Jeff Schlegel Southwest Energy Efficiency Project (SWEEP) Comments to Tucson Electric Power Company (TEP) November 18, 2009
Transcript of Energy Efficiency and the TEP Resource Plan
Energy Efficiencyand
the TEP Resource Plan
Jeff SchlegelSouthwest Energy Efficiency Project (SWEEP)
Comments to Tucson Electric Power Company (TEP)
November 18, 2009
Southwest Energy Efficiency
Project (SWEEP)
Public interest initiative promoting greater energy
efficiency in AZ and southwest states
Founded in 2001
Board of Directors includes utility, state
government, national laboratory, and private
sector representatives
Funding provided by the Energy Foundation,
Hewlett Foundation, U.S. Department of Energy,
and the U.S. Environmental Protection Agency
www.swenergy.org
Benefits of Energy Efficiency
Energy efficiency is good for:
Customers (consumers and businesses)
The utility system (electric and gas)
The economy
The environment
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Energy Efficiency…
Is the lowest cost energy resource – only 2 to 3 cents per kWh saved
Can reduce customers’ energy bills by 10% to 50%
Would create over 12,000 new jobs in Arizona by 2025
Would keep more of the energy economy in Arizona (currently, $9.9 billion of the $14.5 billion that Arizona businesses and consumers spend on energy leaves the state each year)
Is a direct and “no regrets” way to reduce air pollution and greenhouse gas emissions
Delivered Cost of New ResourcesLifetime Levelized w/ 2007 In Service Date
0
20
40
60
80
100
120
140
160
180
200
Energy
Efficiency
Geothermal Wind Solar
Thermal
Nuclear Coal CC IGCC
Transmission
O&M
Fuel
Capital / PPA
$/
MW
H
Courtesy of Paul Smith, APS5
Choices at the Crossroads
How will the energy needs be met?
Which energy resources will be chosen?
Who will pay the billions? How?
How will Arizona choose to grow?
A combination of energy efficiency and renewable energy can meet the future energy needs of Arizona consumers and businesses, while providing significant benefits to utility customers, the energy system, the economy, and the environment.
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7Courtesy of Paul Smith, APS
SWEEP Recommendations
Design and implement cost-effective energy efficiency programs in the utility sector
Adopt energy efficiency goals (an Energy Efficiency Standard, EES) and funding mechanisms to support utility sector energy efficiency programs
Upgrade building codes, support code implementation
Adopt appliance/equipment standards
Promote highly efficient new buildings (zero-net energy)
and beyond-code building standards
Adopt “best practices” in public sector energy management
to lead by example
Adopt utility rate, pricing, and market reforms
Incorporate EE in air pollution control and climate strategies8
Energy Efficiency Standard (EES):
22% by 2020 (20% energy savings)
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Year
EES:
Energy
Efficiency
Standard
as % of
Retail
Sales in
Prior Year
Nominal
Annual
Percent
Savings
Cumulative
Annual
Energy
Savings
as % of
Retail
Sales in
Prior Year
Nominal
Annual
Percent
Savings
Cumulative
Annual
Energy
Savings
(MWh)
Incremental
Annual
Energy
Savings
(MWh)
Cumulative
Annual
Energy
Savings as
a % of
Forecasted
Retail
Sales
Annual
Energy
Savings as
% of
Forecasted
Retail
Sales
Cumulative
Annual
Energy
Savings as
% of
Adjusted
Retail
Sales*
Annual
Energy
Savings as
% of
Adjusted
Retail
Sales*
2005 Estimated
2006 Resulting
2007 % Energy
2008 Savings
2009
2010 1.00% 1.00% 0.90% 0.90% 85,548 85,548 0.89% 0.89% 0.89% 0.89%
2011 2.50% 1.50% 2.25% 1.35% 215,286 129,738 2.19% 1.32% 2.24% 1.35%
2012 4.25% 1.75% 3.83% 1.58% 367,135 151,849 3.67% 1.52% 3.81% 1.58%
2013 6.25% 2.00% 5.63% 1.80% 542,053 174,918 5.34% 1.72% 5.64% 1.82%
2014 8.25% 2.00% 7.43% 1.80% 713,227 171,174 6.92% 1.66% 7.44% 1.79%
2015 10.50% 2.25% 9.45% 2.03% 905,892 192,665 8.67% 1.84% 9.49% 2.02%
2016 12.75% 2.25% 11.48% 2.03% 1,095,485 189,593 10.33% 1.79% 11.52% 1.99%
2017 15.00% 2.25% 13.50% 2.03% 1,283,237 187,752 11.94% 1.75% 13.56% 1.98%
2018 17.50% 2.50% 15.75% 2.25% 1,490,007 206,770 13.69% 1.90% 15.86% 2.20%
2019 20.00% 2.50% 18.00% 2.25% 1,691,047 201,040 15.34% 1.82% 18.12% 2.15%
2020 22.00% 2.00% 20.00% 2.00% 1,866,342 175,295 16.72% 1.57% 20.07% 1.89%
20% Resulting % for energy 10,255,258
of 2020 savings (new and prior) 1,866,342
Savings as % of Sales
SWEEP Proposal Energy Savings Forecasted Retail Sales Adjusted for EE Savings
EES Resulting % Energy Savings Savings as % of
SWEEP Comments to ACC, 11/17/09
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TEP slide, 10/22/09
11SWEEP: EE should bend the line down; reduce total load by 2020
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SWEEP supports TEP’s proposed approach in general
SWEEP:Dedicated to More Efficient Energy Use in the Southwest
Resources available online at:
www.swenergy.org
Jeff Schlegel, Arizona Representative, SWEEP
520/797-4392
Beth Nelson, Arizona Program Associate, SWEEP
480/748-1714
