Transcript Gregg Dixon

The Financial Costs of Energy Waste
NASUCA Conference – San Antonio, TX
June 27, 2011
The Story
The potential for energy efficiency is massive
The cost of NOT tapping EE is extremely high
We can’t manage what we don’t measure
Demand response is the skeleton key to
energy efficiency
Technology is our friend
We need rules that credits “persistence” of
operational efficiency
Page 2
Pop Quiz
Where in the top 30 does
the US rank in terms of
energy efficient countries?
Page 3
Geographic Energy Efficiency
The combination of technology access and energy inefficiency make the US the
single best market opportunity for clean and intelligent energy management.
GDP vs. Energy Efficiency
(Top 40 Economies by GDP)
Sources: Peter Corless 30 Sep 2005 Analysis of top 40 largest national economies (GDP) by plotting GDP per capita vs.
'energy efficiency' (GDP per million Btus consumed); an inverse examination of 'energy intensity.'
Page 4
What is the Cost of Energy Waste?
There is more energy
efficiency potential in the US
than the total proven oil
reserves in Saudi Arabia at
less than 20% the unit price!
Page 5
Relative Cost of Renewable Electricity in US
2010 Average $/kWh
Source: REN21, Renewables 2010 Global Status Report, DOE EIA.
Page 6
The cheapest kWh is
the one never used –
it also happens to be
the greenest!
Page 7
Don’t Take My Word for It
“Energy efficiency constitutes the largest, most
evenly geographically distributed, and least
expensive energy resource.”
- United Nations Foundation
“Combined U.S. electric and gas
utility efficiency program budgets
have doubled since 2006.”
- Consortium of Energy Efficiency
“By 2020, the US could reduce annual energy
consumption by 29% in the commercial sector by
deploying an array of NPV-positive efficiency measures.”
- McKinsey
“The average cost of an energy efficiency
kWh in the US is $0.027/kWh compared with
the average retail rate of $0.097/kWh.”
- National Academy of Sciences
Page 8
“Why is there so much
latent EE potential?”
“Why haven’t customers
bought in?”
“What gives?”
Page 9
A Personal Perspective – The Enemy!
Page 10
Energy Managers – A Rare Species!
Top 20 Titles of Existing EnerNOC Customers
Plant Manager
General Manager
IT
President
Operations Manager
Maintenance Manager
Facilities Manager
Owner
Vice President
Maintenance Supervisor
CFO
Controller
Chief Engineer
Manager
Production Manager
Facilities
Electrician
Facility manager
Plant Engineer
Director of Operations
Source: Analysis of ~39,000 contact titles associated with C&I customer accounts in ECRM.
Page 11
1,236
633
490
466
402
362
354
296
261
251
241
239
235
225
218
180
173
166
166
161
2% of our
customer’s
titles contain
“energy”
“sus” or “env”
Page 12
“Energy doesn’t call in the
middle of the night and tell
you that it’s getting wasted.”
Chris Powell
Director, Brown University
(Answering the question: “Why EnerNOC?”)
Page 13
Our Customers Love Our DR!
As of March 31, 2011:
6,300 MW under management
3,900 C&I demand response customers
10,100 C&I sites under management
Page 14
Energy Network Operations Center
15
Page 15
DR is EE’s Skeleton Key
EnerNOC DR is:
– No cost – we install DR technology for free
– No risk – we protect customers from event
underperformance
– Cash Payments – we pay you to be ready/to respond
– Simple – we make easy what would be complex
Our DR technology unlocks EE by providing:
– Real-time, five-minute, web-based visibility into usage
– Training wheels for deeper energy management
– An extensible platform – we connect to anything
– DR payments become catalyst to invest
– Baseline from which to “prove” EE to CFO
Page 16
A Story About Operational Energy Savings
Page 17
17
Those Hooligan Chess Players!
Action Recommended: Enable auto-control – no cost!
As a result of this measure new protocols were
established for requesting off-hours usage to further limit
this issue from re-occurring. $21,000 annual savings, 102
Tons of CO2.
Page 18
18
Two Paths to Energy Efficiency
1. Traditional – Capital/Equipment Retrofits
2. Progressive – Real-Time Operational/Behavioral Efficiency
Page 19
The Story Revisited
The potential for energy efficiency is massive
The cost of NOT tapping EE is extremely high
We can’t manage what we don’t measure
Demand response is the skeleton key to
energy efficiency
Technology is our friend
We need rules that credits “persistence”
of operational efficiency
Page 20