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Targeting Energy Savings for 2008 2007 Conservation Achievements
November, 2007
By Peter Love
The Ontario Power Authority (OPA) delivered programs in 2007 to achieve both short- and long-term electricity savings.
These include:
1. Mass market programs targeted at residential and small commercial customers.
2. Business market programs targeted at larger commercial, multi-unit residential, agricultural, industrial, low-income and social housing customers.
3. Demand response programs designed to shift load away from peak times.
4. Customer-based generation projects to offset load and deliver renewable and clean energy to the grid.
Activities related to conservation awareness, innovation and marketing in 2007 were undertaken in the following areas:
( codes and standards
( innovation and pilot program funding
( research and marketing
( evaluation, measurement and verification
BUSINESS MARKET PROGRAMS
Electricity Retrofit Incentive Program
This program for existing commercial buildings offers incentives for retrofits to eligible customers of local distribution utilities. It runs form August to December 31, 2007.
Electricity Conservation on Ontario Farms
A program to increase participation of farmers in existing conservation opportunities, such as the Electricity Retrofit Incentive Program and the OPA's Standard Offer Program
Building Owners and Managers Association, Conservation and Demand Management
This program for large commercial buildings provides eligible participants in Toronto with funds to defray the capital costs of demand reducing and energy saving initiatives in their buildings. (See related story, page ?)
City of Toronto, Better Buildings Partnership and Better Buildings New Construction Program
The Better Buildings Partnership implements better energy efficiency and building renewal retrofits in industrial, commercial, institutional and multi-residential buildings. The Better Buildings New Construction Program offers design assistance and financial incentives to increase the energy efficiency of new commercial, industrial, institutional or multi-unit residential buildings.
Toronto Hydro Programs
A portfolio of programs is available to commercial, office, retail, private institutions, hotel and multi-use less than 25,000 square feet, as well as residential and industrial properties.
Affordable Housing Energy Efficiency
Phase 1 will offer affordable housing providers up to $850 per unit to offset the cost of purchasing ENERGY STAR qualified products, and an education and awareness program for affordable housing stakeholders.
Energy Efficiency Assistance Programs for Houses
Pilot project to support low-income homeowners and tenants with the tools they need to make more effective energy decisions. The pilot stage will be targeted at single, semi-detached and row houses
Social Housing
The Social Housing Services Corporation manages aspects of this program as part of the corporation's Green Light Initiative, a province-wide initiative to help the social housing community reduce its energy use.
DEMAND RESPONSE, GENERATION, AWARENESS, INNOVATION
The OPA offers a suite of demand response programs that encourage either the shifting or shedding of electricity loads at peak times. Demand Response 1 was offered in 2006, and Demand Response 2 and 3 are currently being developed. The programs are market based and designed for participation by organizations that can curtail load in response to economic signals or specific requests, primarily using existing equipment and processes. The programs are voluntary and can be based on load interruption, load shifting or behind-the-meter generation, excluding diesel, coal, bio-fuel and bio-diesel.
The OPA has developed a program to provide standard offer contracts for customer-based renewable and clean energy projects. The Renewable Energy Standard Offer Program, launched in 2006, is the first of its kind in North America.
The program rules for the Clean Energy Standard Offer Program are expected to be finalized in late 2007. It is intended to support small clean energy (e.g. natural gas, waste heat) generation projects. The program, which is to launch by the end of 2007, is expected to result in approximately 140 megawatts of generation capacity by the end of 2010, all of which is considered conservation.
The OPA is engaged in fours areas of activity relating to codes and standards: process and institutional development; research, planning and evaluation; standards development; and promotion of new standards. The OPA, British Columbia Hydro, Manitoba Hydro and Hydro-Québec have agreed to work with Natural Resources Canada to fund and support standards development at the Canadian Standards Association for several products.
These processes are planned to initiated or completed during the fiscal year 2007. The OPA has specifically funded a number of products including large and small motors, lights and light fixtures, portable air conditioners, digital television adapters, external power supply and battery chargers, and appliances that use standby power.
The OPA has developed two programs that promote innovative technologies and approaches to electricity supply and demand across Ontario. The Conservation Fund supports the development of promising conservation pilot programs, while the Technology Development Fund supports emerging conservation and or generation technologies.
The OPA is developing processes to assess the overall effectiveness of its conservation programs, measure energy and demand savings impacts, and determine overall cost effectiveness. Evaluation, measurement and verification will be used to confirm that the province has met its conservation targets, enhance the quality of data for forecasting and verifying conservation potential, and inform new and existing program design and development.
PROGRAMS FOR 2008
The OPA plans to implement a portfolio of 27 conservation programs in 2008. Several programs will continue from previous years and others will be newly designed and delivered by the OPA and other delivery channels, such as local distribution companies. In addition, the conservation program portfolio for 2008 will be identified and resources procured. The OPA will develop a conservation service industry by outsourcing conservation services rather than directly providing programs to the extent feasible.
In 2008, the OPA will continue to promote legal and policy opportunities that support energy efficiency, report to the public on conservation results, and implement an evaluation, measurement and verification system to measure conservation program results. Through the Conservation and Technology Development Funds, the commercialization of new technologies consistent with the OPA's mandate will be supported.
Another key focus area will be developing public awareness. In addition to the activities of the Chief Energy Conservation Officer, the OPA will develop education programs for Ontario youth and promote brand awareness of Every Kilowatt Counts, which will become the overarching brand used in programs to influence behaviour that leads to wiser use of electricity.
New programs are expected to provide approximately 1,230 megawatts of peak demand reduction in the 2008 to 2010 period. Other sources, particularly smart meters in conjunction with time-of-use commodity prices, are expected to contribute an additional 176 megawatts.
Mass market programs target small electricity consumers and are too numerous to be communicated directly. The programs are advertised through mass media, local distribution companies and/or large retail channels. For 2008, the OPA is considering ways to extend the delivery reach of mass market programs through the engagement of community-based organizations.
The OPA will expand the offerings to commercial and institutional markets in 2008. The Electricity Retrofit Incentive and Electricity Conservation on Ontario Farms programs, active in 2007, are expected to continue in 2008.
High Performance New Construction
This program for the commercial and institutional sectors will assist the incorporation of conservation measures into the design, construction and operation of new buildings and major renovations. Buildings are intended to exceed the Model National Energy Code for Buildings with graduated incentives levels for higher performance.
Commercial Direct Install
This program for small commercial is a retrofit program that includes a predefined set of energy efficiency measures focusing on more efficient lighting and HVAC equipment.
Large Commercial Buildings
This program for the large commercial sector promotes retrofits in large commercial, institutional and multi-family buildings in Toronto. Program includes the Building Owners and Managers Association of Toronto Conservation and Demand Management program.
Multi-Family Buildings
This program for the multi-residential sector addresses building retrofits to improve energy efficiency and implement fuel switching in multi-family buildings, combined with educational initiatives for tenants and building operators.
Fuel Switching
This program for the commercial sector in general is for the acquisition of fuel-switching resources that contribute to peak demand reduction, primarily in the commercial sector.
Building Recommissioning
This program for existing commercial buildings is targeted at building operators to encourage thorough review of operating characteristics of large buildings, maintenance of optimal equipment use and setup and properly calibrated equipment.
Institutional Buildings
This program is to address unique needs of institutional markets. It will build on the work done that has been funded in part by the OPA's conservation fund.
The emphasis for the industrial market is not only on improving technology and industrial process efficiency - it is also on developing energy management knowledge, expertise and acceptance at all levels of an organization, as well as on building expertise in the service and supply chains that serve the market. Industrial markets are primary targets for demand response programs.
The OPA is considering adding a fourth demand response program in 2008. It would be developed based on the experience gained and observed gaps from the first full year of operation of the existing demand response programs.
The OPA will continue to administer the Renewable Energy Standard Offer Program (see story, page 1) and Clean Energy Standard Offer Program, expected to be launched in late 2007.
Other activities that support conservation to be continued in 2008 include developing codes and standards; innovation and pilot program funding; and evaluation, measurement and verification of conservation programs. In 2008, the OPA will again take a leadership role in promoting regulation of codes and standards to achieve its long-term goals.
It will engage in activities to support increases to minimum energy performance requirements for specified products and buildings. Commercial and residential cooling is expected to be a key area of focus in 2008.
The OPA plans to implement a web-based evaluation, measurement and verification tracking system in 2008. It is making a significant investment in these efforts.
RECOMMENDED ACTIONS
1. The Ministry of Energy should develop a comprehensive and cohesive energy conservation policy for all government departments that aligns the province's electricity policies with other related policies. All government departments should be required to consider this policy in their decision making processes and prescribed government ministries should be required to include a commitment to energy conservation in their Statement of Environmental Values.
2. The government should reconfigure the role of the Chief Energy Conservation Officer to include advocacy for conservation of other forms of energy used in Ontario, including natural gas and transportation fuels.
3. The Ministry of Municipal Affairs and Housing should prepare a plan for the orderly consideration of energy efficiency in all renovations and retrofits.
4. The Ministry of Energy should raise the minimum energy performance standards of six consumer products currently exempt from retail sales tax (refrigerators, freezers, dishwashers, clothes washers, dehumidifiers and air conditioners) to the highest levels in North America.
5. The government should evaluate the options to assist households defined as low-income to deal with economic burdens associated with upgrading to energy-efficient products affected by new codes and standards.
6. The Ministry of Energy should issue regulations requiring public agencies to prepare annual energy conservation plans with a high priority on implementing energy conservation measures in their daily operations and capital projects.
7. The Ministry of Energy should issue regulations under the Energy Conservation Leadership Act to designate combine heat and power projects, clotheslines and solar collectors so that they may be used where there are restrictions, such as municipal zoning by-laws, that would otherwise prevent or impede their use.
8. The Ministry of Energy and the Ministry of Municipal Affairs and Housing should collaborate with the federal government and other provinces to introduce voluntary labelling of the energy performance of all new and resale building coincident with the current Ontario Building Code review cycle with the intent of issuing a regulation to require labels for all new and resale buildings.
9. Ontario's municipalities should appoint Municipal Energy Conservation Officers to engage communities at the local level in creating a culture of conservation throughout the province.
10. All government procurement policies and contracts should include ENERGY STAR requirements for energy efficiency where available.
11. The government should ensure that future changes to the way electricity bills are presented to consumers provide enough information and transparency to enable them to make better decisions about electricity use.
12. The government should work with the appropriate players in the electricity sector to coordinate research and develop educational programs and tools needed to enable customers to learn about and benefit from the use of technologies such as smart meters.
The preceding is an excerpt from the Chief Energy Conservation Officer's 2007 Annual Report, released in November 2007. The complete text can be found at www.conservationbureau.on.ca.
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