An assessment model for energy efficiency program planning in electric utilities: Case of Northwest U.S.

Abstract

Energy efficiency stands out with its potential to address a number of challenges that today’s electric utilities face. These challenges include increasing and changing electricity demand, shrinking operating capacity, and reducing system reliability and flexibility. Being the least expensive and risky resource, share of energy efficiency programs in utilities’ energy portfolios has been on the rise since 1980s and its increasing importance is expected to continue in the future. Despite holding great promise, ability to select and invest only the most prospective program alternatives plays a key role in successful use of energy efficiency as a utility wide resource. This issue becomes even more significant doe to the vast number of available potential energy efficiency programs, rapidly changing business environment, and the existence of multiple stakeholders. This paper introduces a hierarchical decision modeling framework which was used for the case of 13 high priority emerging energy efficiency program alternatives identified in the Northwest U.S. The results of the study revealed that energy savings potential (35.6%) is the most important program management consideration in selecting emerging energy efficiency programs. Market dissemination potential (25.7%) and program development and implementation potential (24.6%) are the second and third most important, whereas ancillary benefits potential (14.1%) is the least important program management consideration. Results imply that program value considerations (49.7%); comprising of energy savings potential and ancillary benefits potential; and program feasibility considerations (51.3%); comprising of program development and implementation potential and market dissemination potential; have almost equal impact on assessment of emerging energy efficiency programs.