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Energy Efficiency Market Transformation Summit Report ENERGY EFFICIENCY MARKET TRANSFORMATION SUMMIT REPORT INITIATIVES, DESIGNS, AND KEY THEMES Prepared for ComEd Prepared by Navigant Consulting, Inc. • Beth Davis • Jan Harris • Dan Violette Designed by Kristin Salvador FEBRUARY 2019 TABLE OF CONTENTS 1. Executive 4. Issue Area 1: How does market 7. Conclusion Summary transformation work in today’s energy page 46 page 5 efficiency portfolio? Page 17 8. Supporting 2. Introduction Portfolio Theme 1: Synergies exist between resource Material page 12 acquisition and market transformation programs page 49 Portfolio Theme 2: A holistic view of energy efficiency • Regulatory activities across resource acquisition and market 3. Summary Spotlight: transformation programs is important of Summit Estimating Portfolio Theme 3: Regulatory treatment of market energy savings Activities transformation programs will need to differ from resource from resource page 15 acquisition programs acquisition and market 5. Issue Area 2: What are the must-have transformation components of a market transformation programs initiative? • Expert Page 24 Summaries Portfolio Theme 1: In-depth knowledge of targeted • Presentations energy efficiency markets is critical from the Portfolio Theme 2: The intervention strategy, including Summit leverage points, must be clearly defined • Output from Portfolio Theme 3: A regulatory framework supporting the Summit the intervention strategy is needed Sessions • Market 6. Issue Area 3: What market transformation Transformation initiatives could be pursued in the Resource List Midwest today? Page 35 Initiative Theme 1: Develop the planning context for market transformation Initiative Theme 2: Cross-cutting support strategies needed to develop market transformation initiatives Initiative Theme 3: Initiatives that could be started right away (or are already started) Initiative Theme 4: Initiatives that leverage existing resource acquisition programs and accelerate new technology adoption Initiative Theme 5: Initiatives that leverage regional or national efforts 2 DISCLAIMER This report was prepared by Navigant Consulting, Inc. (Navigant) for ComEd. The work presented in this report represents Navigant’s professional judgment based on the information available at the time this report was prepared. Navigant is not responsible for the reader’s use of, or reliance upon, the report, nor any decisions based on the report. NAVIGANT MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED. Readers of the report are advised that they assume all liabilities incurred by them, or third parties, as a result of their reliance on the report, or the data, information, findings and opinions contained in the report. 3 ACKNOWLEDGEMENTS Navigant gratefully acknowledges the generous and timely input from the experts that attended the Market Transformation Summit. These experts gave two days of their time and provided thoughtful input throughout the interactive summit. The experts are listed below. Note: * indicates experts who also gave a presentation during the Summit. ** indicates those who listened to the Summit over the phone. Mike Brandt ComEd, Illinois Emily Levin* VEIC, Vermont Kevin Bright Duke Energy, Ohio Thomas Manjarres Franklin Energy, Illinois Alex Buell Con Edison, New York Tim Michel PG&E, California Lauren Casentini Resource Innovations, California Mark Milby ComEd, Illinois Noel Corral ComEd, Illinois Dulane Moran* NEEA, Oregon Thelma Dobson DTE Energy, Michigan Jennifer Morris** ICC, Illinois Jim Fay* ComEd, Illinois Steve Nadel* ACEEE, Washington, DC Margie Gardner* Resource Innovations, California Chris Neme* Energy Futures Group, Vermont Mimi Goldberg DNV GL, Wisconsin Monica Nevius NMR, Massachusetts Ely Jacobsohn MEEA, Illinois Randy Opdyke Nicor Gas, Illinois Michael James Colby Xcel Energy, Colorado Stacey Paradis MEEA, Illinois Jim Jerozal Nicor Gas, Illinois Spencer Sator ComEd, Illinois Amy Jewel* IMT/City of Chicago, Illinois Steve Schiller* Berkeley Lab, California Kara Jonas MEEA, Illinois Nik Schruder Ontario IESO, Ontario Kristina Kelly DNV GL, Massachusetts Kevin Stewart DTE Energy, Michigan Pat Kilroy Navitas Partners, Illinois Dan Violette Navigant, Colorado Ed Wisniewski* CEE, Massachusetts 4 EXECUTIVE SUMMARY 5 A SUMMARY ComEd is in the 10th year of implementing its energy American utilities, and municipal and regulatory efficiency portfolio. The recently passed Future experts (e.g., City of Chicago and Illinois Energy Jobs Act (FEJA) legislation transferred Commerce Commission). This interdisciplinary set market transformation program administration from of experts provided insights on energy efficiency the Illinois Department of Commerce and Economic markets and different approaches to and Opportunity (DCEO) to the utilities in the state. With recommendations on market transformation this change, ComEd wanted to learn more about initiatives. planning and executing market transformation programs. The team organized the Summit's breakout sessions, full participant discussions, and expert The Market Transformation Summit was held in presentations to focus on three interest areas. Chicago on September 12-13, 2018. It included Several themes emerged in each of the issue areas. national market transformation subject matter experts, representatives and experts from North ISSUE AREA 1 ISSUE AREA 3 How does market transformation What market transformation work in today’s energy efficiency initiatives could be pursued portfolio? in the Midwest today? PORTFOLIO THEME 1 19 Synergies exist between INITIATIVES THEME 1 38 resource acquisition and Develop the planning context market transformation for market transformation. programs. PORTFOLIO THEME 2 INITIATIVES THEME 2 21 39 A holistic view of energy Cross-cutting support efficiency activities across strategies needed to develop resource acquisition and market transformation market transformation initiatives. programs is important. INITIATIVES THEME 3 40 PORTFOLIO THEME 3 Initiatives that could be 22 started right away (or are Regulatory treatment of already started). market transformation programs will need to differ INITIATIVES THEME 4 43 from resource acquisition Initiatives that leverage programs. existing resource acquisition programs and accelerate new ISSUE AREA 2 technology adoption. What are the must-have COMPONENTS THEME 2 31 components of a market The intervention strategy, INITIATIVES THEME 5 45 transformation initiative? including leverage points, Initiatives that leverage must be clearly defined. regional or national efforts. COMPONENTS THEME 1 COMPONENTS THEME 3 28 34 In-depth knowledge of A regulatory framework targeted energy efficiency supporting the intervention markets is critical. strategy is needed. 6 ISSUE AREA 1 How does market transformation work in today’s energy efficiency portfolio? The first issue area focused on how market transformation programs are addressed as part of an overall energy efficiency portfolio. The discussion on this topic is organized into three themes. PORTFOLIO PORTFOLIO PORTFOLIO THEME THEME THEME 1 2 3 Synergies exist between A holistic view of energy Regulatory treatment of market resource acquisition and efficiency activities across transformation programs will market transformation resource acquisition and need to differ from resource programs. Every energy market transformation acquisition programs. There efficiency program represents programs is important. was a recurring discussion of the an intervention in a market. Taking into account the Theme need to have a regulatory Resource acquisition programs 1 discussion, the design of framework that is aligned with can influence markets and market transformation market transformation efforts. For potentially have market programs should explore example, market transformation transformation impacts that potential points of leverage and programs typically require often are not measured. Market synergies with resource resource commitments over a transformation initiatives can acquisition programs. Gaps in longer period of time and may also dovetail with resource market and customer coverage have savings impacts that are acquisition programs at certain in existing energy efficiency longer term and different to stages to accelerate change. programs should also be quantify than those from resource considered. For example, a acquisition programs. In addition, market transformation program the evaluation methods for market can address those market transformation programs will segments that may serve differ from those used for specific customer groups the resource acquisition programs utility would like to reach. because of the emphasis on However, some of these target tracking market indicators and groups do not present the metrics over time. These issues leverage points that are should be addressed in advance essential to market of major market transformation transformation success, so a fine investments to ensure there are balance is required. shared views and expectations among stakeholders regarding market transformation goals and success measures. 7 ISSUE AREA 2 What are the must-have components of a market transformation initiative? The second area of focus was to identify and prioritize the key components of successful market transformation initiatives. A few high level themes are presented below. COMPONENTS COMPONENTS COMPONENTS THEME THEME THEME 1 2 3 In-depth knowledge of The intervention strategy, A regulatory framework targeted energy efficiency including leverage points, supporting the intervention markets
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