Supporting ESPC at the U.S. Department of Energy
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1 Supporting ESPC at the U.S. Department of Energy AnnaMaria Garcia Director, Office of Weatherization & Intergovernmental Programs U.S. Department of Energy September 1,
2 A Perfect Storm for ESPC Tight budgets for energy efficiency retrofits Increasing attention to ESPC by the Administration Good energy savings potential Estimated annual energy savings potential in MUSH market: ~ trillion Btu A typical ESPC project in the MUSH market saves approximately 13% to 31% annually compared to its baseline consumption 1 High market growth potential for ESPC Estimated 2013 revenues of $6.4 billion, with a projected growth of ~12% in the next three years Estimated ESPC project investment opportunity in MUSH market: ~$51.8- $86.8 billion 1 LBNL/NAESCO database of ESCO projects Source for all other slide facts: Current Size and Remaining Market Potential of the U.S. Energy Service Company 2 Industry by Elizabeth Stuart, Peter H. Larsen, Charles A. Goldman, and Donald Gilligan. September 2013.
3 Supporting the ESPC Market MUSH market expresses barriers to broad use of ESPC DOE s goal: Enable access to the upfront financing needed for the public sector to deploy energy efficiency projects DOE s work has included: Individual technical assistance under ARRA Support for 14 states undertaking ESPC through State Energy Program Competitive awards There s still more to do: the President s call to action The ESPC Accelerator provides technical assistance and recognition to partners that make commitments 3
4 DOE s ESPC Accelerator 3 activity pillars that address the most frequently expressed barriers to broad use of ESPC: Streamlining ESPC documentation and process Standardizing project reporting and benchmarking contract performance Overcoming individual framework, process, and new market barriers 4
5 The Accelerator Today: $1.8 Billion Commitment Alabama Cincinnati, OH Colorado Connecticut El Paso, TX Fort Worth, TX Hawaii Houston, TX Illinois Massachusetts Michigan Minnesota Montana Nevada New Mexico Newark, NJ North Carolina Philadelphia School District Virgin Islands Virginia Washington State 5
6 Addressing ESPC Process and Data Barriers Pillar 1: Streamlining the Process Purpose: Shorten ESPC transaction costs and timeline Flagship Activity: Reviewing Existing Model ESPC Documents Pillar 2: Standardizing Reporting Purpose: Standardize project results documentation & reporting Flagship Activity: Tailoring and Testing eproject Builder 6
7 Addressing Framework, Process, & Market Entry Barriers Pillar 3: Individual Barriers Purpose: Support successful, permanent, innovative, and replicable resolution of individual partner barriers Activities: Each partner elects one barrier to ESPC investment Solutions fall into three categories: Establishing elements of an ESPC framework, Operationalizing ESPC tools and processes, and Educating/motivating market decision-makers. 7 Partners participate in Individual Technical Assistance Working Groups
8 Accelerator Successes ~50 percent of total commitment achieved in first year Half the partners achieved 50% to more than 100% of their program commitment Model ESPC documents updated and available online eproject Builder tool and support available programming continues to incorporate data needs of MUSH market Individual barrier resolutions in progress model tools and Implementation Models expected 8
9 Plan for 2016 Topic for the year is measurement & verification (M&V) Purpose: Provide a forum for partners to discuss and refine M&V best practices for application in ESPC projects Curriculum planning begins September 3 High-quality reporting of results will help states take credit for ESPC project results, particularly as part of a cost-effective approach to meeting Clean Power Plan goals Partnering with ESC to disseminate Accelerator tools and solutions to jurisdictions across the country 9
10 Questions? For more information, please contact 10
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3+ 3+ N = 155, 442 3+ R 2 =.32 < < < 3+ N = 149, 685 3+ R 2 =.27 < < < 3+ N = 99, 752 3+ R 2 =.4 < < < 3+ N = 98, 887 3+ R 2 =.6 < < < 3+ N = 52, 624 3+ R 2 =.28 < < < 3+ N = 36, 281 3+ R 2 =.5 < < < 7+
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living Alaska 00 47,808 21,213 44.4 Alabama 01 20,661 3,288 15.9 Alabama 02 23,949 6,614 27.6 Alabama 03 20,225 3,247 16.1 Alabama 04 41,412 7,933 19.2 Alabama 05 34,388 11,863 34.5 Alabama 06 34,849 4,074
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