Advanced Energy Perspectives

Every year, on the first Wednesday of October, we celebrate the low-profile powerhouse of the advanced energy sector: energy efficiency. The annual Energy Efficiency Day (#EEDay2022 on social media) serves as a reminder that efficiency upgrades – however big or small – work year-round to lower bills, improve grid efficiency, enhance the resilience of our communities, reduce reliance on fossil fuel energy, and create local jobs. Energy efficiency touches everyone in their homes, at their jobs, and in their schools, and will become ever more important as we upgrade our transportation and buildings to high-performing, clean technologies like electric cars and heat pumps. Efficiency is also key for keeping us cool during extreme heat and warm during severe cold without straining the grid or our pocketbooks. Now, there’s more reason than ever to cash in on the value of energy efficiency, thanks to landmark legislation passed by Congress.

Extreme weather. Spiking natural gas prices. Peak levels of electricity use that push the grid to its limit. Our energy system faces a growing set of challenges, and our utilities and their regulators have to make big infrastructure and investment decisions today to solve those challenges. But even with a growing number of advanced energy technologies and solutions available – including those on the demand-side – many electric utilities just want to build more natural gas-fired power plants. We think there is a better way. Here’s how utilities – and one utility in particular – can use rates, incentives, and technology to manage energy use and save customers money.

In our lives, we try to optimize everything. The days aren’t getting longer, but we’re trying to fit more activities into each hour. Sometimes it’s eking out just one more email, fitting in an extra errand during the day, or crossing one more chore off the to-do list. We’re striving to improve productivity, and in the process, burning ourselves out. But instead of working harder, we should be working smarter. We need to do a better job focusing on what really matters, and when possible, delegate work to both new and tried-and-true technologies that can help us avoid distractions and automate tasks. It makes sense to take the same approach with energy.

In the last decade, technology has changed nearly every facet of our lives. We’ve traded in touch-tone phones for smartphones, replaced cabs with ride sharing apps, and upgraded bulky desktops for sleek laptops. While technology has changed life in so many dramatic ways, less obvious, but no less dramatic is the way technological advancements have changed the way we use electricity. Most notable is the way technology has allowed us to gain control over electricity demand, through energy efficiency and demand response. The challenge now is to make sure that newfound power to reduce and manage demand gets fully utilized in wholesale electricity markets.

This is a guest post by Adam Scheer (Recurve), Jake Millette and Olivia Patterson (Opinion Dynamics), and Julie Michals (E4TheFuture)

Driven by advancing technologies and by policies that are evolving to both mitigate and adapt to climate change, the energy industry is changing at a breakneck pace. On the demand side, our fundamental challenge is moving beyond siloed programs into scaled demand flexibility to achieve states’ priorities such as grid resilience, resource adequacy, and decarbonization, amidst increasing electrification. Critically, scaling distributed energy resources (DERs) to meet a host of policy goals will require that we leverage limited ratepayer dollars to cultivate as much energy efficiency (EE) and other DER investment as possible. The question is: are cost-effectiveness (CE) testing practices developed decades ago adequate to guide our industry investments today? In our experience, legacy CE practices are inhibiting both innovative program designs and commonsense best practices for putting ratepayer dollars to optimal use.