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21 Residential and Commercial Energy Management
Pages 201-247

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From page 201...
... The buildings sector also uses coal, oil, and natural gas for heating and appliances. In 1989 the buildings sector accounted for 36 percent of total U.S.
From page 202...
... of $100 billion and an electrical savings equivalent to the annual output of 320 base load power plants (Rosenfeld et al., 1991~. Because electricity has consistently accounted for two-thirds of all primary energy consumed in buildings and three-quarters of building energy 90 80 70 111 at_ LO en CE LL Z 40 ILL 60 50 30 20 10 ~ O~ ~ Electricity 85.8 EJ $453 Billion ,~l 30.
From page 203...
... Space heating intensity in new commercial buildings also declined significantly after 1973, as illustrated by Figure 21.5 (Rosenfeld et al., 1991~. In addition, efficiency measures during this period avoided an increase of approximately 50 percent in emissions of CO2, SO2, and NO2.
From page 204...
... Potential efficiency measures are varied; taken singly, each may realize only a relatively small gain. Nonetheless, their aggregate effect can be
From page 205...
... residential sector for the year 2000 could be reduced by 27.1 percent to 45.5 percent, with a similar reduction of 22.5 percent to 48.6 percent in the commercial sector (Electric Power Research Institute, 1990~. · Lovins (1986)
From page 206...
... of projected commercial sector growth in demand for electricity, could be eliminated (American Council for an Energy-Efficient Economy, 1989~. The ACEEE study relied on several restrictive assumptions, taking into account only near-term technologies and basing its estimates only on existing buildings (generally, savings are greater when efficiency measures are implemented during the construction process)
From page 207...
... Supply curves describe, in a more rigorous manner, the way in which large-scale efficiency gains and consequent dollar and carbon emission savings are aggregated from individual energy efficiency measures. The curves relate energy savings achieved by implementing a given efficiency measure to that measure's "cost of conserved energy" or CCE (Meter et al., 1983~.
From page 208...
... The studies on which the supply curves are based were undertaken by diverse groups and compiled at Lawrence Berkeley Laboratory (Rosenfeld et al., 19911. Electricity savings for the nine conservation supply curves in Figure 21.6 are calculated based on "frozen efficiency" (Table 21.23.
From page 209...
... Potential savings are insensitive to the differences among 3 percent, 6 percent, and 10 percent, but at a 30 percent discount rate, savings drop from 45 to 30 percent. At the short-term marginal cost of providing electricity from an existing base TABLE 21.2 Unit Energy Consumption for a New Refrigerator Base Target (kWh/yr)
From page 210...
... . 1 1 1 1 1 1 1 1 1 1 1 -- 1 ~i 1 1 i ~I 1 1 0 20 30 40 50 o PERCENT SAVINGS IN ELECTRICITY FIGURE 21.7 The EPRI curve for the buildings sector, sensitivity to real discount rate.
From page 211...
... , which is 45 percent of 1989 residential and commercial buildings sector use of 1627 BkWh. At 3.5 cents/ kWh avoided cost, savings decline to 667 BkWh, which is 41 percent of buildings sector use.
From page 212...
... 212 Cal st ._ ._ m ._ A: o ._ Cal :> 50 cq o v o 50 Cal o v Cal .~ .
From page 213...
... Here the first 11 steps are cost-effective, and the potential net savings (shaded hatched area, become $29 billion. The case 2 price is used for savings tabulated in the overall energy efficiency supply curve.
From page 214...
... Power Plant FIGURE 21.9 Net cost of conserved carbon dioxide (CC CO2) for clecthc cat cicncy in the buildings sector.
From page 215...
... Btu) Electricitya Gas Oil Otherb Total Percent Residential Sector Space heating 1.81 2.87 1.00 0.39 6.07 39.8 Water heating 1.61 0.82 0.10 0.06 2.58 16.9 Refrigerators 1.44 1.44 9.4 Lighting 1.04 1.04 6.8 Air conditioners 1.08 1.08 7.1 Ranges/ovens 0.64 0.21 0.00 0.03 0.88 5.8 Freezers 0.45 0.45 2.9 Other 1.19 0.54 1.72 11.3 TOTAL 9.27 4.43 1.10 0.48 15.28 100.0 Commercial Sector Space heating 1.00 1.83 0.79 0.18 3.80 32.4 Lighting 2.96 2.96 25.2 Air conditioning 0.98 0.12 1.11 9.4 Ventilation 1.49 1.49 12.7 Water heaters 0.37 0.19 0.08 0.64 5.5 Other 1.37 0.24 0.01 0.11 1.73 14.7 TOTAL 8.17 2.38 0.89 0.29 11.73 100.0 TOTAL residentialC 17.44 6.81 1.98 0.77 27.01 100.0 and commercial consumption 1986 aRepresents value of primary energy inputs in production of electricity (11,500 Btu/ kWh)
From page 216...
... Two types of CFLs are available: one with separate ballast and the other with "integrated" built-in ballast. Each can fit into a standard light socket (Lawrence Berkeley Laboratory, 1990~.
From page 217...
... Cooking Electric range efficiency measures include additional insulation, seals, improved heating elements, reflective pans, reduced thermal mass, and reduced contact resistance. They are expected to increase efficiency from 1987 residential levels by 10 to 20 percent and from 1987 commercial levels by 20 to 30 percent (Electric Power Research Institute, 1990~.
From page 218...
... appliance efficiency standards of about 1000 kWh/yr) , and that advanced units in
From page 219...
... In addition, dishwasher efficiency improvements of 10 to 30 percent relative to 1987 residential stock are expected from models with no-heat drying cycles and from reductions in hot water usage (Electric Power Research Institute, 19901. Office Equipment Office equipment computers, printers, copiers, and telephones, for example probably use half of the more than 1.37 quads of electricity consumed annually by the commercial sector's "other" category (see Table 21.4 for 1986 data)
From page 220...
... . Potential Fossil Fuel Savings in Buildings: $20 Billion per Year As shown in Figure 21.1, the buildings sector consumes primary energy that has not been converted into electricity mainly oil and natural gas.
From page 221...
... 1989 emissions of 5 Gt CO2. Fuel Switching In industry an observed tendency exists to substitute fuel for electricity, but in buildings, fuel switching primarily involves replacing electric resistance heat with on-site combustion of natural gas.
From page 222...
... Switching hot water heaters from electricity to natural gas represents the largest potential of this type in the United States. A 1988 Michigan study demonstrated that 400,000 homes with gas heat but electric resistance water heaters could be switched to gas hot water heat, with a simple payback time of 2 years (Krause et al., 1988)
From page 223...
... Summary of Potential Savings in the Buildings Sector Combined savings in the buildings sector are 850 Mt of CON (513 Mt CO2 for electricity, 300 Mt for fuel, and 74 Mt for fuel switching)
From page 224...
... CC CO2 ($/t) Fuel switching Net savings from switching 10 percent of electricity to gas Mt CO2 (electricity and gas)
From page 225...
... As shown in Figure 21.4, energy use in the residential and commercial buildings sector grew at more than 3 percent per year from 1986 to 1989; Figure 21.3 shows that total primary energy use once again escalated at nearly the same rate as GNP between 1986 and 1988, with energy consumption leveling off slightly in 1989. From 1973 to 1988, GNP grew 46 percent, and energy use 7 percent.
From page 226...
... (19861. These obstacles combined with others, such as the perceived risk of energy efficiency investments, constraints on the infrastructure of energy efficiency vendors and suppliers, and uncertainty about future fuel pricesprovide formidable resistance to the realization of technical efficiency potential (Hirst and Brown, 1990~.
From page 227...
... , and grants to encourage energy efficiency benefits including revenue-neutral tax measures such as variable hookup fees for buildings · Direct government control requiring all electric utilities to develop and implement broad-based, comprehensive energy efficiency programs · Public education Each of these options is discussed below. Direct Investment in Efficiency by Utilities Experience suggests that, as a matter of policy, the potential for large, cost-effective efficiency savings may not be realized unless the economic and organizational burden of such a program is placed on those who will directly receive its benefits- electric utilities and their customers.
From page 228...
... One such approach, recently adopted by utility regulators in Rhode Island, Massachusetts, and New Hampshire, allows utility shareholders to recover through the rate structure the direct costs of efficiency programs and to keep as profit a portion of the total economic savings created by these investments (Massachusetts Department of Public Utilities, 1990; New Hampshire Public Utilities Commission, 1990; Rhode Island Public Utilities Commission, 1990~. Under this approach, the largest retail utility in
From page 229...
... Although large, this incentive payment represents less than one-tenth of the net savings ($56 million) that will accrue to the utility's customers through lower energy use (Massachusetts Department of Public Utilities, 1990~; nonetheless, to the utility it represents an attractive investment 23 percent of 1989 net income (New England Electric System, 1990b)
From page 230...
... In 1987 the Conservation Law Foundation, Inc., a Boston-based environmental organization, led a consumer and environmental coalition in extensive administrative litigation before the region's state utility regulators. It proposed that, prior to constructing substantial new power facilities, utilities should be required to undertake extensive, direct investments in energy efficiency at customer sites (Collette, 1989; Russell, 1989; Flavin, 1990~.
From page 231...
... Russell, Conservation Law Foundation, Inc., May 23, 1990; New England Electric System, 1990a; Liz Hicks, New England Electric System, personal communication to Robert H Russell, Conservation Law Foundation, Inc., August 22, 19901.
From page 232...
... . , , A, In its first 18 months of operation, a Northeast Utilities program involving Connecticut Light and Power and Western Massachusetts Electric Company has treated with a package of efficiency measures approximately 24 percent of all projected new floor space in its service territory and estimates savings to be at least 20 percent above baseline practice (Connecticut Light and Power Company, 19901.
From page 233...
... Schultz, California Public Utilities Commission, private communication to Arthur M Rosenfeld, Lawrence Berkeley Laboratory, May 1990~.
From page 234...
... In addition, direct subsidy does not necessarily encourage investment in cost-effective, comprehensive energy efficiency. The market barriers outlined above-particularly those relating to information costs, risk aversion, split incentives, and need for rapid payback of investment will continue to operate unless programs underwrite much of the cost of proven efficiency measures (Plunkett and Chernick, 1988~.
From page 235...
... Chernick, personal communication to the Conservation Law Foundation, Inc., May 31, 1990~. Public Education Although policymakers are increasingly recognizing energy efficiency's considerable potential, members of the public and many of their representatives do not appear to be aware of the large costs involved in failing to take efficiency measures.
From page 236...
... assistance and leadership, even replicated in other nations. In many cases, efficiency investments that approach avoided cost in this country can be implemented at a far lower cost elsewhere (U.S.
From page 237...
... The buildings sector efficiency measures described in this chapter may be particularly important in view of the fact that, throughout the 1980s, electricity consumption in residential and commercial buildings significantly outpaced growth in total electricity consumption in many developing countries; this trend is expected to intensify (U.S. Agency for International Development, 19901.
From page 238...
... · Local economic development: Efficiency investments are highly labor intensive and typically employ labor that is available locally. The materials required for large-scale efficiency programs also can often be produced locally.
From page 239...
... Nonetheless, one policy option holds considerable merit: regulatory reform designed to give utilities an incentive to conserve energy. Specific conclusions include the followings If all technically feasible electricity efficiency measures were applied
From page 240...
... · In addition to electricity savings of 500 Mt CO2, a combination of fossil fuel efficiency programs and fuel switching from electricity to natural gas or fuel oil could produce further savings of 374 Mt CO2/yr at a cost of -70/t CO2 equivalent for fuel savings and -$92/t CO2 equivalent for fuel switching. These savings, summarized on Table 21.7, could be brought about through the same policy options applicable to electric utilities.
From page 241...
... 8. It is estimated that if 33 percent of its hot water heating customers and 80 percent of its space heating customers were to convert to alternative, on-site fuels (oil, natural gas, and propane)
From page 242...
... REFERENCES A&C Enercom, Association of California Water Agencies, California Department of General Services, California Energy Coalition, California Energy Commission, California Large Energy Consumers Association, California/Nevada Community Action Association, California Public Utilities Commission Division of Ratepayer Advocates, Independent Energy Producers Association, Natural Resources Defense Council, Pacific Gas and Electric Company, San Diego Gas and Electric Company, Southern California Edison Company Southern California Gas Com ~ . pany, and Toward Utility Rate Normalization.
From page 243...
... Berlin, Conn.: Connecticut Light and Power Company. Conservation Law Foundation, Inc.
From page 244...
... Berkeley, Calif.: Center for Building Science, Lawrence Berkeley Laboratory. Geller, H
From page 245...
... On file at the Conservation Law Foundation, Inc., Boston. New England Electric System (NEES)
From page 246...
... Concord: New Hampshire Public Utilities Commission. Northwest Power Planning Council (NPPC)
From page 247...
... Berkeley: University of California at Berkeley and Buildings Energy Data Group for Bonneville Power Administration, Lawrence Berkeley Laboratory. Vermont Public Service Board.


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