Berkeley Lab presented new research on how states are incorporating the time and locational value of energy efficiency in integrated resource planning and distribution system planning. The presentation concludes with examples of state policies that promote robust analysis and use of efficiency in planning.

Energy efficiency programs funded by utility customers provide an electricity resource in most U.S. states, but their scale and cost of saving electricity varies significantly by state. In this paper, we explore the drivers of the cost of saved electricity in these programs with an econometric model and nearly a decade of data reported by efficiency program administrators. We found strong evidence for economies of scale and weak evidence for diseconomies of scale, which suggests that states with low levels of efficiency savings relative to retail sales can increase the size of their efficiency programs without large increases to the cost of saved electricity. We discuss examples of energy efficiency forecasting and potential modeling in light our econometric analysis and identify methodological improvements relevant to utilities and grid operators. This paper provides insights into the economics of customer-funded efficiency programs that will support regulators, utilities, and policymakers to utilize energy efficiency as a resource.

Meeting national and state decarbonization goals requires a transition to clean energy technologies. Energy efficiency, demand flexibility, renewable energy and storage can reduce consumers’ electricity bills, lower total electricity system costs, and provide health and resilience benefits. Berkeley Lab developed a series of briefs that explore these consumer benefits of a clean energy transition. This brief discusses some of the possible consumer benefits of utility-scale and behind the meter renewable energy, with a focus on how these resources can contribute to a low-cost electricity system. It begins with a literature review of modeled impacts, primarily considering consumer benefits, of the Inflation Reduction Act and Bipartisan Infrastructure Law. Next, it discusses how utility-scale renewable energy can contribute to a low-cost electricity system (e.g., in some cases, low resource costs relative to other alternatives). It concludes with a discussion of behind-the-meter renewable energy consumer benefits (e.g., reduced host electricity bill, increased property value, resilience).

The Department of Energy funded Berkeley Lab to provide technical assistance to two municipal utilities on how energy efficiency and demand flexibility can mitigate the peak demand impacts of building and transportation electrification. Berkeley Lab worked with these utilities, Sacramento Municipal Utility District (SMUD) and Fort Collins Utilities, to identify research questions that supported their planning needs. For both utilities, Berkeley Lab developed scenario-based load forecasts that considered baseline and high-efficiency building electrification. For SMUD, the forecast also explored the sensitivity of peak demand to extreme weather (a winter cold snap) at the system-evel. For Fort Collins Utilities, the forecast addressed the impacts of low, medium, and high levels of building and transportation technology adoption on select distribution feeders. Berkeley Lab is also developing a guidance document for utilities that will draw on lessons learned from the technical assistance and provide a framework for conducting similar analyses.

Most energy efficiency measures produce energy savings that vary over the course of a year. The value of the hourly electricity savings also varies over the course of a year because the cost of generating, transmitting and distributing electricity during peak demand periods may be significantly higher than during off-peak, or lower load, hours. But many planning and program activities across the United States are missing this important element. A variety of trends are changing the electricity system, including increased adoption of other distributed energy resources, electrification of buildings and vehicles, and relative costs for natural gas-fired and renewable energy generation. Knowing when energy efficiency occurs and the value of the energy or demand savings to the electricity system—the time-sensitive value of efficiency—provides public utility commissions, utilities and other decision makers with key information needed to procure the optimal amount of energy efficiency for their system. The report begins with a discussion of our approach to determining use cases and examples, and then examines the need for time-sensitive efficiency data. Next, it examines five use cases in which states, independent system operators/regional transmission operators (ISOs/RTOs), utilities, and efficiency program administrators consider the TSV-EE: (1) energy efficiency program planning and evaluation, (2) distribution system planning, (3) electricity resource planning (4) electricity rate design, and (5) state and local government activities. The report concludes with areas for future research on the time-sensitive value of efficiency.

Efficient, connected, grid-interactive, smart, and flexible buildings are key to decarbonizing the U.S. energy economy, optimizing energy use, reducing electric consumers’ bills, integrating variable renewable energy resources, and improving the reliability and performance of the nation’s electricity grids. Such grid-interactive efficient buildings have high levels of energy efficiency layered with other distributed energy resources (DERs) and intelligent controls to provide demand flexibility. Policy support is unfolding at the federal, state, and local levels to transform homes and workplaces into state-of-the-art energy-efficient buildings and community-level grid services. This paper starts by describing the potential benefits. Next, it highlights existing policies — with a focus on state-level actions — that support grid-interactive efficient building deployment and demand flexibility. Finally, it identifies current trends and gaps, policies and programs that promote grid-interactive efficient buildings, and aggregations of grid-interactive efficient buildings referred to as Virtual Power Plants.

The Time-Sensitive Value Calculator (Calculator) is a publicly available, free, Excel-based tool by Berkeley Lab that estimates the value of energy efficiency and other distributed energy resource (DER) measures using hourly estimates of electricity system costs. The Calculator takes hourly profiles of up to six measures at a time and monetizes their value for six value streams, producing outputs in tabular and graphical formats. The Calculator was designed for public utility commissions, state energy offices, utilities and stakeholders to estimate the value of energy efficiency and DER measures under various future electricity system scenarios. To access the Calculator, enter your name and email address in the form located on this page: https://emp.lbl.gov/publications/time-sensitive-value-calculator. A zip file with four files will be available for download upon completion. In addition to the Calculator, the zip file contains an Auxiliary spreadsheet and two file launchers, one for Windows and one for Mac. To minimize run time, the launchers set Excel's calculations to "manual" before opening the Calculator. Please enable macros for the best user experience.

Guillermo Pereira presented at the 2023 ACEEE Energy Efficiency as a Resource conference on using energy efficiency to help meet distribution system capacity needs. Utilities in New York, California, Michigan, and Minnesota are using energy efficiency as a non-wires alternative to traditional investments to meet some of their distribution system capacity needs. They geotarget their energy efficiency programs or solicit third-party solutions to proactively reduce the need for distribution system upgrades in locations facing future capacity constraints. Utilities can also conduct systematic studies of the locational value of energy efficiency and other distributed resources to better understand where to target them to reduce distribution costs. These studies can become a routine and transparent part of the distribution planning process. The presentation covers state objectives for distribution system planning and current practices for assessing local grid needs and solutions considering energy efficiency as a non-wires alternative.

Natalie Mims Frick presented to the Maine Public Utilities Commission on goals, objectives and priorities for grid planning in other states. The presentation also discusses benefits of transparent distribution system planning and the procedural and substantive requirements states have put in place around the country. The presentation also provides an illustrative example of how one state evolved its Integrated Distribution Planning process over time.

This slide deck report identifies objectives and key indicators for state activities that advance demand flexibility in buildings — legislation, utility regulatory proceedings, executive orders and programs. It also illustrates progress to date and identifies trends, gaps, and opportunities. Part I of the report focuses on (1) demand response and (2) energy efficiency targeted to reduce peak demand or integrate with demand response. This section covers building energy codes, appliance and equipment standards, resource standards, utility planning, utility programs, advanced metering infrastructure and meter data, rate design, state programs, state energy planning, and related state policies and regulations. Part II of the report addresses traditional energy efficiency indicators, including utility and state programs, codes, and standards that support annual energy savings. See the additional links for an infographic, library of cited state documents on demand flexibility, and presentation to the NASEO-NARUC Grid-Interactive Efficient Buildings Working Group.