SELECTING TARGETS FOR MARKET TRANSFORMATION PROGRAMS: A NATIONAL
ANALYSIS
Margaret Suozzo and Steven Nadel
July1998
Executive Summary
This report documents the results of a study conducted by the American Council
for an Energy- Efficient Economy (ACEEE) for the Consortium for Energy Efficiency
(CEE). The study's primary purpose is to analyze a range of technologies
and practices, collectively referred to as "measures" for their potential
as new national market transformation initiatives.
Approach
The following multi-step process was taken to assess potential market
transformation targets. First, we developed a list of measures, focusing
on technologies and practices suitable for full- scale market transformation
programs at some point in the near term (i.e., during the 1998-2000 period).
Second, we collected data, and updated or modified data collected for previous
Pacific Gas & Electric Company (PG&E) and Northwest Energy Efficiency
Alliance (the NW Alliance) studies to reflect new information and the national
context. We also collected information on new measures that CEE requested
we analyze. Third, with input from CEE staff and the Advisory Committee on
this project, we developed and implemented a method for ranking and presenting
comparative information on different measures. in addition, we prepared an
electronic spreadsheet with the measure data to permit CEE and its members
to develop revised and customized rankings.
Measure characterizations
Detailed measure characterizations are presented for each of the 53 measures
selected for analysis. These characterizations include a one to two page
write-up and a data sheet that documents the data and assumptions used in
estimating key variables.
Ranking scheme
From the data collected on each measure, three factors were selected as our
principal means for comparing, ranking, and presenting potential measures
for new market transformation programs: (1) potential energy savings, (2)
cost effectiveness; and (3) likelihood that a market transformation initiative
will be successful. A variety of rankings were then performed.
Each measure was first ranked according to each of the three factors
individually. Next weights were applied to the three factors and an overall
ranking based on these weights performed. Weighting factors (40 percent for
potential energy savings; 40 percent for likelihood of success; and 20 percent
for cost of saved energy, i.e., the "basecase scenario") were chosen by ACEEE
and CEE in consultation with the project Advisory Committee. For comparison,
we conducted two sensitivity analyses on the basecase rankings. The first
case, the "even-weighting scenario," weights each factor evenly (i.e., 33
percent each) and the second case, the "high LOS scenario," emphasizes likelihood
of success over potential energy savings (i.e., likelihood of success is
weighted at 50 percent and potential energy savings is weighted at 30 percent).
Results
The top 20 measures from the basecase ranking scheme, and the results of
the sensitivity analysis are shown in Table E-l below. This basecase ranking
includes 8 residential measures and 7 commercial measures; 13 of the measures
are technologies and 2 are practices.
Table E-1 Summary
of Rankings Under Alternative Weighting Schemes
| |
Savings
Likelihood of Success
Cost of Saved Energy |
Basecase
0.4
0.4
0.2 |
Even
0.33
0.33
0.33 |
High
LOS
0.3
0.5
0.2 |
| Commercial building
retrocommissioning |
|
1 |
1 |
2 |
| High efficiency clothes
washers |
|
2 |
2 |
3 |
| LED commercial/industrial
exit signs |
|
3 |
3 |
1 |
| High efficiency electric
water heating |
|
4 |
4 |
4 |
| Efficient standby
power operation |
|
5 |
6 |
9 |
| High efficiency residential
central a/c |
|
6 |
8 |
6 |
| Coin-op clothes washers |
|
7 |
5 |
5 |
| High efficiency gas
storage water heaters |
|
8 |
10 |
7 |
| T8 lamps/electronic
ballasts |
|
9 |
7 |
8 |
| Low energy/water dishwashers |
|
10 |
9 |
12 |
| LED traffic signals
(red only) |
|
11 |
11 |
10 |
| Duct sealing |
|
12 |
13 |
13 |
| Commercial packaged
a/c-Tier 1 |
|
13 |
15 |
11 |
| Screw-in compact fluorescent
lamps |
|
14 |
12 |
14 |
| Furnace & boiler
installation & maintenance |
|
15 |
18 |
18 |
| Efficient new homes |
|
16 |
38 |
28 |
| New commercial buildings-integrated
design |
|
17 |
30 |
25 |
| High efficiency pkgd.
refrigeration equip. |
|
18 |
17 |
16 |
| Residential efficient
windows |
|
19 |
26 |
24 |
| Residential a/c installation
& maintenance |
|
20 |
21 |
23 |
Of measures that consistently rank in the top 20 under alternative weighting
scenarios, several are currently addressed by national initiatives. The EPA
and DOE ENERGY STAR® programs, for example, promote high
efficiency clothes washers and dishwashers, efficient residential air
conditioning equipment, LED exit signs, products with efficient standby operation
(through EPA's new TV/VCR program), and efficient new homes. Similarly, CEE
promotes high efficiency clothes washers, dishwashers, coin-operated washing
machines, and high efficiency residential and commercial packaged air
conditioning equipment. CEE is also investigating the opportunities for
developing a national initiative to address LED traffic signals. In addition
to these national initiatives, a number of other measures are being addressed
by regional initiatives, such as the NW Alliance's activities to promote
residential duct sealing, compact fluorescent lamps, efficient windows, and
commercial building integrated design, and the Northeast Energy Efficiency
Partnership's (NEEP) work to promote compact fluorescent lamps and commercial
air conditioning maintenance and installation. (Note: Please refer to individual
measure writeups for more information on each of these existing and emerging
efforts).
Recommendations for Action
Despite ongoing efforts to promote many of the top-ranked measures, a number
of opportunities exist for accelerating their market acceptance:
-
Many of national initiatives, for example, could be expanded. Current activities
on dishwashers, home electronics, coin-operated clothes washers and efficient
new homes are limited and could benefit from increased promotion at the regional,
state, and local levels, involving utilities, state energy offices, and other
local and regional partners.
-
Those measures now being promoted regionally could from promotion in other
regions and coordination on the national level. CEE is now working to improve
coordination among regional compact fluorescent lamp programs and is exploring
similar opportunities, and the newly-formed New Buildings Institute is working
with utilities and state governments to improve coordination on new buildings
initiatives.
-
Some of the measures, including high efficiency gas and electric water heaters
and T8 lamps and electronic ballasts, currently have substantial market share
and DOE is now considering standards for these products. Efficiency organizations
can influence this process by providing comments on analyses and draft rules
and urging DOE to speedily complete the rulemaking processes.
-
A few of the measures already have considerable momentum in the market, such
as LED exit signs and traffic signals. In the former case it may be time
to complete the transformation process by tightening building code provisions
for exit sign power use. In the latter case, additional efforts are warranted
to educate potential users about red signals and to further develop and
demonstrate green and three-color LED signals.
-
Finally, some highly ranked measures are currently the focus of little activity
and can benefit from more attention. Among these commercial building
recommissioning, furnace and boiler installation and maintenance practices,
and packaged commercial refrigeration equipment. Many organizations are exploring
the issues around commissioning existing buildings, but to date concrete
programs have yet to emerge. On furnace and boiler installation practices,
CEE has commissioned a literature review on this topic and is considering
whether to do further work in this area. And for commercial refrigeration
equipment, EPA is developing an ENERGY STAR® program for
vending machines and is considering similar programs for some other packaged
refrigeration products.
In all of these areas, current efforts are limited and should be expanded;
and as program ideas are developed, there will be a need to adapt and implement
the basic designs at the regional and local levels.
Click to order hard copy.
200 pp., 1998, $25.00, U981
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