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National Grid’s Energy Efficiency Programs
John Rathbun
Technical Sales and Engineering Support
National Governors Association
2 2
UK Electric
UK Gas
National Grid Overview
Customers
US – 8 Million
UK – 11 Million
2
nd
Largest US Utility
Pipes & Wires
US – 125,000 miles
UK – 215,000 miles
Largest UK Utility
Service Areas:
Gas
Both Electric and Gas
National Grid Gas and LIPA Electric System
Electric
4,000 MW Electricity Generation
National Grid:
Second-largest Utility in the U.S.
The largest distributor of Natural Gas in the northeast U.S.
Approximately 3.4 million customers in New York, Massachusetts,
and Rhode Island
Delivers electricity to approximately 3.3 million customers
Massachusetts, New York and Rhode Island
Manages the electricity network on Long Island under an agreement with
the Long Island Power Authority
Serving 1.1 million LIPA customers
2011 – New US Operating Model
Jurisdictional areas created state by state to be the local face of
National Grid
Stronger connected community and customer relationships at a local
level
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Energy Efficiency Programs
National Grid places a strong emphasis on helping our customers
manage their energy usage and take advantage of new sustainable
energy solutions
National Grid’s Energy Efficiency Programs and Incentives will:
Identify energy savings opportunities and provide technical services
for the installation of premium energy efficient equipment to replace
aging, inefficient equipment
Lower project Costs by up to 50% for installing energy saving
equipment
Program Development
Result of regulatory process - individual state’s social, regulatory
and policy decisions for both residential and commercial and
industrial customers
Costs are covered through regulatory filings
Commission orders drive final program
design, incentive and funding levels
Regulatory approval is required for all
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Customer Incentive Options…
CUSTOM
Includes measures not covered
under the prescriptive incentives.
Requires a technical analysis of
proposed energy measures and
associated energy savings to
determine incentive amount.
Incentives are generally the
lesser of:
Up to 50% of the installed
cost which includes labor and
equipment
A buy-down of equipment
costs equal to a six months or
a one-year payback
PRESCRIPTIVE
Fixed incentives paid for
installation of specific,
predetermined energy efficiency
measures and equipment.
Eligible equipment must
have specified energy
efficiency ratings
Examples: Lighting,
Lighting Controls, Air
Compressors, EMS,
Heating and Insulation
C&I Programs – Prescriptive Programs - Electric
UNY
New Const Retrofit
Lighting n/a Y
Compressed Air n/a Y
Variable Speed Drives n/a n/a
Energy Mgmt Systems* n/a Y
MA
New Const Retrofit
Lighting Y Y Compressed Air Y Y
Variable Speed Drives Y Y
Energy Mgmt Systems* Y Y
HVAC Y n/a
Chillers Y n/a
DNY
Gas Only Territory
RI
New Const Retrofit
Lighting Y Y
Compressed Air Y n/a
Variable Speed Drives Y Y
Energy Mgmt Systems* Y Y
HVAC Y n/a
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C&I Programs – Prescriptive Measures - Gas
UNY
New Const Retrofit
Heating Equipment Y Y
Water Heating Y Y
Prescriptive Controls n/a Y
Kitchen Equipment Y Y
Steam Trap Survey n/a Y
MA
New Const Retrofit
Heating Equipment Y Y Water Heating Y Y
Prescriptive Controls n/a Y
Kitchen Equipment Y Y
DNY*
New Const Retrofit
Heating Equipment Y Y
Water Heating Y Y
Prescriptive Controls Y Y
Kitchen Equipment Y Y
Steam Trap Survey Y Y
RI
New Const Retrofit
Heating Equipment Y Y
Water Heating Y Y
Prescriptive Controls n/a Y
Kitchen Equipment Y Y
Non-Prescriptive Programs: offered in all the above areas
• Energy Efficiency Engineering Study
• Custom Projects
Residential Programs
UNY
Gas Electric
Products & Recycling Y Y
OPower Y Y
Multifamily Y Y
Enhanced Home Sealing Suspended Y High-Efficiency Heating Y n/a
MA
Gas Electric
Products & Recycling Y Y OPower Y Y
Multifamily Y Y
Deep Energy Retrofit Y Y High-Efficiency Heating Y Y
Cool SMART n/a Y
Weatherization Y n/a Home Energy Assessment Y Y New Const. & Major Ren. Y Y Heat Loan Program n/a Y Work Force Development n/a Y Education Program n/a Y Energy Star Lighting n/a Y
DNY*
Gas
Products Y
Enhanced Home Sealing Suspended High-Efficiency Heating Y
RI
Gas Electric Products & Recycling n/a Y Energy Star Lighting n/a Y Multifamily Y Y Cool SMART n/a Y Deep Energy Retrofit n/a Y Energy Star Homes n/a Y High-Efficiency Heating Y n/a Appliance Management Y n/a
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What is Shareholder Incentive?
Financial “rewards” for National Grid
Money that is collected from ratepayers (through SBC
and Energy Efficiency)
National Grid is “rewarded” financially…
If we hit savings targets and stay with in budget that has
been agreed on with the regulators
Shareholder Incentive - Purpose
Motivate the successful delivery of energy efficiency
programs to achieve savings goals
Align business interests with public policy interests
Partially compensated company for lost sales revenue
With revenue decoupling, this is less of a factor
Focus is on components that policy-makers think are
needed to achieve state policy
Maximize savings
Cost-effectiveness
Other elements to drive program design to serve
selected target populations, innovate, and/or be more
comprehensive
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National Grid Energy Efficiency
Customers Pay System Benefit Charge (SBC) or Energy Efficiency Charge CUSTOMER IMPACT
$$ SPEND completing project Energy saved by is recorded towards
goal
Energy Savings
Target Savings for Shareholder Incentive SHAREHOLDERS Achieve Incentive Make Goal YES NO
Possible
penalty
MASS Save NATIONAL GRID Energy Efficiency Programs $$ NYSERDA Spend $$ on EE Programs Develop Program/ Portfolio/Targets Customer Gets Incentive Customer Completes EE ProjectCHP Developments
Electric Efficiency Program in MA & RI
MA Alternative Energy Portfolio
Rate decoupling
Standby Tariff
MA
RI
NY
Technical Assistance
Marketplace leadership
US Combined Heat and Power Association
EPA CHP Partnership
Northeast Clean Heat and Power Initiative
Northeast Clean Energy Application Center
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MA & RI CHP Incentive
Electric Energy Efficiency
Thermal output ~ kW
$750/kw
Must pass Benefit cost ratio test
5 Mw CHP 2011 Largest EE project
Technical Assessments
Standby Tariffs
Combined Heat Power - CHP
270 Mw installed on site customer owned generation
NE – 133 Mw 54 sites UNY – 48 Mw 10 sites DNY – 89 Mw 128 sites
Over 72% below 300 kW
Significant Projects
NE – 5.9 Mw at food manufacturer 5 Mw at Medical School 5.1 Mw at Pharmaceutical Upstate NY 29 Mw steam turbine at Healthcare facility
8 Mw ICE engines at Community College
6 Mw Turbine at Casino/resort
Downstate NY
2.4 Mw at Hospital
2.4 Mw at Shopping Mall
