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A Study of the Feasibility of Energy Efficiency as an Eligible Resource as Part of a
Renewable Portfolio Standard for the State of North Carolina - December 2006
27
efficiency equipment. GDS did not examine any early retirement programs or
measures for this study.
4.3.3 Development of Achievable Cost-effective Potential
Estimates for Energy Efficiency
To develop the achievable cost-effective potential for electric energy
efficiency, energy efficiency measures that were found to be cost-effective
(according to the levelized cost per lifetime kWh saved) were retained in the
analysis. Electric energy efficiency measures that were not cost-effective (such
as residential solar water heating) were excluded from the estimate of achievable
cost-effective energy efficiency potential for the residential sector.
4.3.4 Free-Ridership and Free-Driver Issues
Free-riders are defined as participants in an energy efficiency program who
would have undertaken the energy efficiency measure or improvement in the
absence of a program or in the absence of a monetary incentive. Free-drivers are
those who adopt an energy efficient product or service because of the
intervention, but are difficult to identify either because they do not collect an
incentive or they do not remember or are not aware of exposure to the
intervention.17
The issue of free-riders and free-drivers is important. For the commercial and
industrial sectors, where GDS used an alternative approach to estimate
electricity savings potential, free-riders are accounted for through the electric
energy and peak demand forecast provided by electric utilities in North Carolina.
This electric kWh sales forecast already includes the impacts of naturally
occurring energy efficiency (including impacts from vintaging of electric
appliances, electric price impacts, and electric appliance efficiency standards).
For the commercial and industrial sectors, because naturally occurring energy
savings are already reflected in the electricity sales forecast used in this study,
these electric savings will not be available to be saved again when GDS applies
savings percentages obtained from other recent energy efficiency potential
studies. GDS used this process to ensure that there is no “double-counting” of
energy efficiency savings. This technical methodology for accounting for free-riders
for the commercial and industrial sectors is consistent with the standard
practice used in other recent technical potential studies, such as those conducted
in California, Connecticut, Florida, Georgia, Idaho, Kentucky, New Mexico, Utah
and Vermont.
17 Pacific Gas and Electric Company, “A Framework for Planning and Assessing Publicly
Funded Energy Efficiency Programs”, Study ID PG&E-SW040, March 1, 2001.
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| Title | A study of the feasibility of energy efficiency as an eligible resource as part of a renewable portfolio standard for the state of North Carolina : report for the North Carolina Utilities Commission - Page 30 |
| Full Text | A Study of the Feasibility of Energy Efficiency as an Eligible Resource as Part of a Renewable Portfolio Standard for the State of North Carolina - December 2006 27 efficiency equipment. GDS did not examine any early retirement programs or measures for this study. 4.3.3 Development of Achievable Cost-effective Potential Estimates for Energy Efficiency To develop the achievable cost-effective potential for electric energy efficiency, energy efficiency measures that were found to be cost-effective (according to the levelized cost per lifetime kWh saved) were retained in the analysis. Electric energy efficiency measures that were not cost-effective (such as residential solar water heating) were excluded from the estimate of achievable cost-effective energy efficiency potential for the residential sector. 4.3.4 Free-Ridership and Free-Driver Issues Free-riders are defined as participants in an energy efficiency program who would have undertaken the energy efficiency measure or improvement in the absence of a program or in the absence of a monetary incentive. Free-drivers are those who adopt an energy efficient product or service because of the intervention, but are difficult to identify either because they do not collect an incentive or they do not remember or are not aware of exposure to the intervention.17 The issue of free-riders and free-drivers is important. For the commercial and industrial sectors, where GDS used an alternative approach to estimate electricity savings potential, free-riders are accounted for through the electric energy and peak demand forecast provided by electric utilities in North Carolina. This electric kWh sales forecast already includes the impacts of naturally occurring energy efficiency (including impacts from vintaging of electric appliances, electric price impacts, and electric appliance efficiency standards). For the commercial and industrial sectors, because naturally occurring energy savings are already reflected in the electricity sales forecast used in this study, these electric savings will not be available to be saved again when GDS applies savings percentages obtained from other recent energy efficiency potential studies. GDS used this process to ensure that there is no “double-counting” of energy efficiency savings. This technical methodology for accounting for free-riders for the commercial and industrial sectors is consistent with the standard practice used in other recent technical potential studies, such as those conducted in California, Connecticut, Florida, Georgia, Idaho, Kentucky, New Mexico, Utah and Vermont. 17 Pacific Gas and Electric Company, “A Framework for Planning and Assessing Publicly Funded Energy Efficiency Programs”, Study ID PG&E-SW040, March 1, 2001. |
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