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At least 253 records · Page 14

Opportunities for Simultaneous Efficiency Improvement and Refrigerant Transition in Air Conditioning

In October of 2016, nearly 200 Parties agreed to amend the Montreal Protocol in Kigali, Rwanda, to phase-down consumption and production of hydrofluorocarbons (HFCs) by 2050. Growth in the use of HFCs, including those currently used as refrigerants in air-conditioning systems, is being driven by demand from emerging economies, hot climates, and rising incomes that are also undergoing rapid urbanization and electrification. Air conditioners (ACs), as an energy-intensive end-use technology, are also covered by a growing number of energy efficiency standards, labeling, procurement, incentive, and other supporting efficiency programs. Therefore, improving room AC energy efficiency and transitioning to low-global warming potential (GWP) refrigerants simultaneously presents significant opportunities to deploy energy efficient technology and reduce the energy and emissions impacts of room ACs, while keeping costs low for consumers. This report aims to provide an initial sense of the opportunities to improve efficiency and transition to low-GWP refrigerants by reviewing the HCFC and HFC regulatory framework and energy efficiency standards and labeling programs in 19 economies that account for roughly 65 percent of global room AC demand. Based on this analysis, we identified key opportunities for coordinated action on efficiency improvement and refrigerant transition for the domestic room AC sector (i.e., ductless mini-split ACs), such as: - implementing or revising standards and labeling programs to improve efficiency levels with the possibility of adding a low-GWP criterion. - combining fixed speed and inverter AC product categories to account for seasonal variations in climate and part-load operating conditions, and using seasonal energy efficiency ratio (SEER) instead of energy efficiency ratio (EER) to better reflect performance of inverter ACs. - implementing market transformation programs, such as bulk procurement programs, to drive down the costs of efficient technology through economies of scale. - aligning timelines for implementing efficiency standards with timelines for refrigerant management plans to coordinate policy actions. - maximizing the energy efficiency improvements of Montreal Protocol investments by coordinating efforts to help keep costs low for consumers and manufacturers during equipment redesign and manufacturing line retooling for refrigerant transition. In order to realize the significant peak load, energy saving and climate benefits of these opportunities associated with improving energy efficiency in tandem with the refrigerant transition, some risks may need to be mitigated, principally safety concerns over risks of accidental ignition with refrigerants rated flammable. This can be mitigated by continuing and accelerating the development of safety standards currently being updated, for example, by the International Electrotechnical Commission (IEC) and improving training for production, installation and maintenance during the use of flammable refrigerants. While some low-GWP refrigerants may cost more than the current baseline refrigerants, the cost of refrigerants is only ~1% of lifecycle costs for an AC. Costs can also be reduced through manufacturing advances and efficiency improvements, particularly if they are supported by policies that encourage technological development through deployment of superefficient ACs at scale. Finally, during the transition, there is a risk of obsolete technology being deployed in markets that either have not updated their standards or have later compliance dates. This risk can be mitigated by updating standards and reviewing them periodically to ensure their effectiveness.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Northwest Energy Efficient Manufactured Housing Program High-Performance Test Homes

This project represents the third phase of a multi-year effort to develop and bring to market a High Performance Manufactured Home (HPMH). The scope of this project involved building four HPMH prototypes, resulting in what is expected to be a 30% savings relative to the Building America Benchmark. (The actual % savings varies depending on choice of heating equipment and climate zone). The HPMH home is intended to make significant progress toward performing as zero-net-energy ready. Previous phases of this project created a HPMH specification and prototyped individual measures from the package to obtain engineering approvals and develop preliminary factory construction processes. This report describes the project team's work during 2014 to build prototype homes to the HPMH specifications and to monitor the homes for energy performance and durability during 2014. Monitoring is expected to continue into 2016.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

South Africa’s Appliance Energy Efficiency Standards and Labeling Program

Electricity consumption in South Africa comes with a hefty environmental cost to the society. For every kilowatt-hour (kWh) produced, 1 kilogram (kg) of carbon dioxide (CO 2 ) is emitted, 1.4 liters of water are used, and 0.37 grams of particulate emissions are released in the atmosphere. These environmental implications result from the large share of electricity produced from coal (91 percent in 2015). While planned new capacity will ramp up renewable energy, the integrated resource plan for the country still projects the share of col to be 64 percent in 2030. Energy savings provide environmental benefits as well as economic benefits. Energy efficiency standards and labeling (S&L) programs are a policy measure proven to save energy. Such programs have been implemented in many countries to remove inefficient technologies and transform markets to more efficient technologies. In this study, we describe the methodology, assumptions and results of a stock turnover modeling tool that estimates the energy savings achievable by South Africa’s S&L program in the residential sector. We show that if regulations are passed in 2020 and effective in 2021 for 10 major end-use adopting international standards best practices, 6 terawatt-hours (TWh) will be saved in 2030 and 9.5 TWh will be saved in 2040, representing a CO 2 mitigation of 3.7 megatonnes (Mt) in 2030 and 5.8 Mt in 2040, which will contribute to the South African government’s international engagement in fighting against climate change through its National Determined Contribution (NDC). Additional environmental benefits include saving of 6.5 billion liters of water in 2030, representing approximately 100 liters per capita in 2030. Air quality will also improve, as 4 kilotons (kt) of particulate emissions will be avoided, as well as 4.3 Mt of sulfur oxides (SOx) and 23 kt of nitrogen oxides (NOx) in 2030.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Lessons Learned From Incentives Programs for Efficient Air Conditioners: A Review

One of the largest drivers of growing global energy demand is the increasing market penetration of air conditioners (ACs). Global sales of room ACs were up 9% in 2013 compared to 2012, and that growth is expected to accelerate in coming decades, particularly in large metropolitan areas with hot climates. This report focuses on financial incentive programs that aim to mitigate the energy consumption attributable to the growing stock of ACs. Financial incentives leverage private investments to pull higher-efficiency technologies into the market. Through detailed case studies of AC energy-efficiency incentive programs, we show the significance and diversity of these programs and describe and share lessons learned from their design and implementation. The report also describes how incentive programs can be designed to address other pressing concerns related to growing AC use, such as challenges to power supply reliability resulting from increased peak demand and the global warming potential (GWP) of AC refrigerants. For policy makers and program administrators interested in addressing AC energy efficiency through incentive schemes, the report provides examples of past and present programs and highlights challenges that need to be considered when making program design and implementation decisions. The report begins with an overview of AC markets, highlighting their growth and savings potential, recent achievements from minimum energy performance standards, and typical barriers to the penetration of more efficient AC models. Next, we examine six AC incentive programs in depth, based on evaluation reports and/or interviews with program administrators. Finally, we outline program design features that could a) increase penetration of energy-efficient ACs, b) increase utility and customer participation in demand response programs targeted at reducing peak-load impacts, and c) phase out the use of high-GWP refrigerants in ACs. We find that incentive programs are particularly effective when they target emerging technologies that have still a low penetration in the market.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Strategies for Optimizing WIP Investment in State Energy Offices

This report outlines strategies for Weatherization and Intergovernmental Programs Office (WIP) investment aimed at improving state energy office programs. The project was funded by WIP within the U.S. Department of Energy (DOE) office of Energy Efficiency and Renewable Energy (EERE). WIP aims "to enable strategic investments in energy efficiency and renewable energy technologies through the use of innovative practices across the United States in partnership with a wide range of stakeholders, including state and local organizations and community-based nonprofits." Across its programs, WIP has created thousands of jobs, maintains an investment ratio of 4.1 to 1, and increases U.S. economic output by 1.2 billion a year. This project was funded in the FY21 budget cycle and originally focused on improving WIP energy efficiency funding and programs. The project gathered information from various state energy offices to understand how WIP funding and processes can be optimized to improve state-level energy efficiency programs. We propose that the conclusions are also broadly applicable to weatherization and renewable energy deployment programs.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Energy efficient engine component development and integration program

The design of an energy efficient commercial turbofan engine is examined with emphasis on lower fuel consumption and operating costs. Propulsion system performance, emission standards, and noise reduction are also investigated. A detailed design analysis of the engine/aircraft configuration, engine components, and core engine is presented along with an evaluation of the technology and testing involved.

Source record↗

Building America Case Study: Retrofitting a 1960s Split-Level, Cold-Climate Home, Westport, Connecticut; Whole-House Solutions for Existing Homes, Energy Efficiency & Renewable Energy (EERE)

??National programs such as Home Performance with ENERGY STAR(R) and numerous other utility air sealing programs have brought awareness to homeowners of the benefits of energy efficiency retrofits. Yet, these programs tend to focus on the low-hanging fruit: air-sealing the thermal envelope and ductwork where accessible, switch to efficient lighting, and low-flow fixtures. At the other end of the spectrum, deep-energy retrofit programs are also being encouraged by various utilities across the country. While deep energy retrofits typically seek 50% energy savings, they are often quite costly and most applicable to gut-rehab projects. A significant potential for lowering energy usage in existing homes lies between the low hanging fruit and deep energy retrofit approaches - retrofits that save approximately 30% in energy over the existing conditions. A key is to be non-intrusive with the efficiency measures so the retrofit projects can be accomplished in occupied homes. This cold climate retrofit project involved the design and optimization of a home in Connecticut that sought to improve energy savings by at least 30% (excluding solar PV) over the existing home's performance. This report documents the successful implementation of a cost-effective solution package that achieved performance greater than 30% over the pre-retrofit - what worked, what did not, and what improvements could be made. Confirmation of successfully achieving 30% source energy savings over the pre-existing conditions was confirmed through energy modeling and comparison of the utility bills pre- and post- retrofit.

1960 split level↗

Strengthening Retrofit Markets for Comprehensive Savings in Multifamily Buildings (Interim Final Report)

Energy efficiency is vitally important in Maine. Nearly 70% of Maine households rely on fuel oil as their primary energy source for home heating, a higher share than in any other state. Coupled with the state's long, cold winters, Maine's dependence on oil renders homeowners particularly vulnerable to fluctuating fuel costs. With $\$$4.5 million in seed funding from the Energy Department's Better Buildings Neighborhood Program, the Governor's Energy Office (GEO), through Efficiency Maine Trust (the Trust), is spurring Maine landlords to lower their monthly energy bills and improve comfort for their tenants during the state's cold winter months and increasingly warmer summers. Maine's aging multifamily housing stock can be expensive to heat and costly to maintain. It is not unusual to find buildings with little or no insulation, drafty windows, and significant air leaks, making them ideal candidates for energy efficiency upgrades. Maine modeled its Multifamily Efficiency Program (MEP) after the state's highly successful Home Energy Savings Program (HESP) for single-family homes. HESP provided cash incentives and financing opportunities to owners of one-to four-unit structures, which resulted in thousands of energy assessments and whole-house energy upgrades in 225 communities. Maine's new MEP multifamily energy efficiency upgrade and weatherization initiative focuses on small to medium-sized (i.e., five to 20 units) apartment buildings. The program's energy efficiency upgrades will provide at least 20% energy savings for each upgraded multifamily unit. The Trust’s MEP relies on a network of approved program partners who help move projects through the pipeline from assessment to upgrade. MEP has two components: benchmarking and development of an Energy Reduction Plan (ERP). Using the ENERGY STAR® Portfolio Manager benchmarking tool, MEP provides an assessment of current energy usage in the building, establishes a baseline for future energy efficiency improvements, and enables tracking and monitoring of future energy usage at the building— all at no cost to the building owner. The ERP is developed by a program partner using either the Trust’s approved modeling or prescriptive tools; it provides detailed information about the current energy related conditions in the building and recommends energy efficiency, health, and safety improvements. The Trust's delivery contractor provides quality assurance and controls throughout the process. Through this effort, MEP's goal is to establish a self-sustaining, market-driven program, demonstrating the value of energy efficiency to other building owners. The increasing value of properties across the state will help incentivize these owners to continue upgrades after the grant period has ended. Targeting urban areas in Maine with dense clusters of multifamily units—such as Portland, Lewiston- Auburn, Bangor, and Augusta—MEP engaged a variety of stakeholder groups early on to design its multifamily program. Through direct emails and its website, program officials invited lending institutions, building professionals, engineering firms, equipment distributors, and local property owners associations to attend open meetings around the state to learn about the goals of the multifamily program and to help define its parameters. These meetings helped program administrators understand the diversity of the customer base: some owners are individuals with a single building, while other owners are groups of people or management companies with an entire portfolio of multifamily buildings. The diversity of the customer base notwithstanding, owners see MEP as an opportunity to make gains in their respective properties. Consistently high turnouts at stakeholder meetings fueled greater customer interest as awareness of the program spread through word of mouth. The program also gained traction by utilizing the program partner networks and building on the legacy of the Trust’s successful HESP for single-family residences. MEP offers significant incentives for building owners to participate in the upgrade program. Wholebuilding benchmarking services are available to most multifamily housing buildings free of charge. The service provides the building owner with an assessment of the building's current energy efficiency as compared to other multifamily buildings on a national scale, establishes a baseline to measure future improvements, and enables owners to track monthly energy consumption using the ENERGY STAR Portfolio Manager. Once the benchmarking process is complete, the program links building owners with approved program partners (e.g., energy professionals, home performance contractors) to identify and implement specific energy-saving opportunities in the building. Program partners can also provide project quotes with estimated financing incentives and payback period calculations that enable building owners to make informed decisions. What's more, the Trust provides two financial incentives for successful completion of program milestones. The first is a per-unit incentive for completion of an approved ERP (i.e., $\$$100 per unit if a prescriptive path is followed, and $\$$200 per unit for a modeled ERP). Upon final inspection of the installed project scope of work, an incentive of $\$$1,400 per unit or 50% of installed cost—whichever is less—is paid. The Trust originally established a $\$$1 million loan-loss reserve fund (LLRF) to further enhance financing opportunities for qualified multifamily building owners. This funding mechanism was designed to connect building owners with lenders that retain the mortgages for their properties and encourages the lenders to offer financing for energy efficiency improvements. However, there has been no interest in the LLRF and therefore the LLRF has been reduced. Ultimately, MEP plans to build an online tool for building owners to assess opportunities to make upgrades in their multifamily units. The tool will include a performance rating system to provide a way for building owners to more easily understand energy use in their building, and how it could be improved with energy efficiency upgrades. Prospective tenants will also be able to use the rating system to make informed decisions about where to rent. Furthermore, the rating can be incorporated into real estate listings as a way for prospective home buyers and the real estate financial community to evaluate a home's operating costs. The Trust’s MEP has identified the state's most experienced energy professionals, vendors, suppliers, and contractors that install energy efficiency equipment in the multifamily sector to be qualified program partners. To be eligible for partnership, energy assessment professionals and contractors are required to have demonstrated experience in the multifamily sector and hold associated professional certifications, such as Building Operator Certification (BOC), Certified Energy Manager (CEM), Professional Engineer (PE), or Building Performance Institute (BPI) Multifamily Building Analyst. Widespread program interest has enabled the Trust to redirect funds that might otherwise be needed for program promotion to building capacity through contractor training. In addition to boosting professional training and certification opportunities, MEP teaches its partners how to market the multifamily program to prospective multifamily homeowners.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Energy-Efficient Maneuvering of Connected and Automated Vehicles (CAVs) with Situational Awareness at Intersections (Final Progress Report)

The increased development of Connected and Automated Vehicle (CAV) systems, currently used for safety and driver convenience, presents new opportunities to improve the energy efficiency of vehicles. Southwest Research Institute (SwRI) achieved a 20% energy consumption reduction in a 2017 Toyota Prius Prime plug-in hybrid by using connectivity (V2V, V2I, V2X) as part of the Next Generation Energy Technologies for Connected and Automated on-Road Vehicles (NEXTCAR) program. The energy consumption gains were achieved by a combination of vehicle dynamics and powertrain control algorithms with a focus on SAE L1 and L2 automated vehicles where a human is still responsible for safe operation. SwRI is now involved in NEXTCAR-II, focusing on energy-efficient control tech for SAE Level 4/5 automated vehicles, aiming for a 30% energy reduction compared to stock hybrids. The rise of Mobility as a Service (MaaS) is driving investments in L4 and L5 automated vehicles. A study by the University of Michigan shows these vehicles might increase energy use and emissions by 3-20%. Technology similar to NEXTCAR can enhance energy efficiency in highly automated vehicles, leveraging improved sensing and actuation capabilities. While the NEXTCAR programs targeted energy efficiency improvements for a single vehicle, this program adopts a more expansive approach. It places its focus on understanding and testing the cumulative effects within a region or corridor, aiming to assess how a subset of vehicles equipped with NEXTCAR-style technologies influence the overall energy consumption of all vehicles traveling within that area. Additionally, the program explores infrastructure-based mobility solutions to optimize efficiency, and seeks to understand and quantify public perception and likelihood of technology adoption.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Energy Efficiency and Conservation Block Grant (EECBG) - Better Buildings Neighborhood Program at Greater Cincinnati Energy Alliance: Home Performance with Energy Star® and Better Buildings Performance

The Greater Cincinnati Energy Alliance (Energy Alliance) is a nonprofit economic development agency dedicated to helping Greater Cincinnati and Northern Kentucky communities reduce energy consumption. The Energy Alliance has launched programs to educate homeowners, commercial property owners, and nonprofit organizations about energy efficiency opportunities they can use to drive energy use reductions and financial savings, while extending significant focus to creating/retaining jobs through these programs. The mission of the Energy Alliance is based on the premise that investment in energy efficiency can lead to transformative economic development in a region. With support from seven municipalities, the Energy Alliance began operation in early 2010 and has been among the fastest growing nonprofit organizations in the Greater Cincinnati/Northern Kentucky area. The Energy Alliance offers two programs endorsed by the Department of Energy: the Home Performance with ENERGY STAR® Program for homeowners and the Better Buildings Performance Program for commercial entities. Both programs couple expert guidance, project management, and education in energy efficiency best practices with incentives and innovative energy efficiency financing to help building owners effectively invest in the energy efficiency, comfort, health, longevity, and environmental impact of their residential or commercial buildings. The Energy Alliance has raised over $23 million of public and private capital to build a robust market for energy efficiency investment. Of the $23 million, $17 million was a direct grant from the Department of Energy Better Buildings Neighborhood Program (BBNP). The organization’s investments in energy efficiency projects in the residential and commercial sector have led to well over $50 million in direct economic activity and created over 375,000 hours of labor created or retained. In addition, over 250 workers have been trained through the Building Performance Training Center, a program that was developed and funded by the Energy Alliance and housed at Cincinnati State Technical and Community College. Nearly 100 residential and commercial contractors currently participate in the Energy Alliance’s two major programs, which have together served over 2,800 residential and 100 commercial customers. Additionally, the Energy Alliance established loan programs for homeowners, nonprofits and commercial businesses. The GC-HELP program was established to provide up to ten year low interest, unsecured loans to homeowners to cover the energy efficiency products they purchased through the Energy Alliance approved contractor base. To date the Energy Alliance has financed over $1 million in energy efficiency loans for homeowners, without any loans written off. The nonprofit business community is offered five year, fixed-interest rate loans through the Building Communities Loan Fund of $250,000. Additionally, the Energy Alliance has developed GC-PACE, a commercial financing tool that enables buildings owners to finance their energy upgrades through voluntary property assessments deploying low-interest extended-term capital from the bond market. The Energy Alliance and its partners are actively evaluating additional market-based financing solutions.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Status of the Local Enforcement of Energy Efficiency Standards and Labeling Program in China

As part of its commitment to promoting and improving the local enforcement of appliance energy efficiency standards and labeling, the China National Institute of Standardization (CNIS) launched the National and Local Enforcement of Energy Efficiency Standards and Labeling project on August 14, 2009. The project’s short-term goal is to expand the effort to improve enforcement of standards and labeling requirements to the entire country within three years, with a long-term goal of perfecting overall enforcement. For this project, Jiangsu, Shandong, Sichuan and Shanghai were selected as pilot locations. This report provides information on the local enforcement project’s recent background, activities and results as well as comparison to previous rounds of check-testing in 2006 and 2007. In addition, the report also offers evaluation on the achievement and weaknesses in the local enforcement scheme and recommendations.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Energy Efficient Engine: Combustor component performance program

The results of the Combustor Component Performance analysis as developed under the Energy Efficient Engine (EEE) program are presented. This study was conducted to demonstrate the aerothermal and environmental goals established for the EEE program and to identify areas where refinements might be made to meet future combustor requirements. In this study, a full annular combustor test rig was used to establish emission levels and combustor performance for comparison with those indicated by the supporting technology program. In addition, a combustor sector test rig was employed to examine differences in emissions and liner temperatures obtained during the full annular performance and supporting technology tests.

Dubiel, D. J.↗

Energy efficient aircraft engines

The three engine programs that constitute the propulsion portion of NASA's Aircraft Energy Efficiency Program are described, their status indicated, and anticipated improvements in SFC discussed. The three engine programs are (1) Engine Component Improvement--directed at current engines, (2) Energy Efficiency Engine directed at new turbofan engines, and (3) Advanced Turboprops--directed at technology for advanced turboprop--powered aircraft with cruise speeds to Mach 0.8. Unique propulsion system interactive ties to the airframe resulting from engine design features to reduce fuel consumption are discussed. Emphasis is placed on the advanced turboprop since it offers the largest potential fuel savings of the three propulsion programs and also has the strongest interactive ties to the airframe.

Chamberlin, R.↗

Energy efficient aircraft engines

The three engine programs that constitute the propulsion portion of NASA's Aircraft Energy Efficiency Program are described, their status indicated, and anticipated improvements in SFC discussed. The three engine programs are: (1) engine component improvement, directed at current engines, (2) energy efficient engine, directed at new turbofan engines, and (3) advanced turboprops, directed at technology for advanced turboprop-powered aircraft with cruise speeds to Mach 0.8. Unique propulsion system interactive ties to the airframe resulting from engine design features to reduce fuel consumption are discussed. Emphasis is placed on the advanced turboprop since it offers the largest potential fuel savings of the three propulsion programs and also has the strongest interactive ties to the airframe.

Chamberlin, R.↗

Energy Efficiency and Conservation Block Grant (EECBG) - Better Buildings Neighborhood Program (Final Technical Report)

Austin Energy, a municipally-owned electric utility for the City of Austin, is a nationally recognized leader in energy conservation. With long-running, successful energy efficiency programs already in place in the single family and multifamily sectors, the Better Buildings grant program faced a unique operating environment.

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Energy-efficient Public Procurement: Best Practice in Program Delivery

This document illustrates the key issues and considerations involved in implementing energy-efficient public procurement. Our primary sources of information have been our partners in the Super Efficient Equipment and Appliance Deployment (SEAD) Initiative Procurement Working Group. Where applicable, we have highlighted specific ways in which working group participants have successfully overcome barriers to delivering effective programs. The following key points emerge from this analysis of programs for energy-efficient public procurement. Lessons for both developed and developing programs are highlighted throughout the guide. 1. Policy: Policy provides the initiative to begin a transition from first cost to life-cycle cost based purchasing methods and culture. Effective policy is well-communicated, establishes accountability from top to bottom of organizations and simplifies the processes necessary to comply. Flexibility and responsiveness are essential in policy development and implementation. Mandatory and voluntary policies may complement one another. 2. Procurement Criteria: Procurement staff must be confident that energy-efficient procurement criteria offer the best long-term value for their organization’s money and represent real environmental gains. Involving multiple stakeholders at the early stages of the criteria creation process can result in greater levels of cooperation from private industry. Criteria should make comparison of products easy for purchasers and require minimal additional calculations. Criteria will need to be regularly updated to reflect market developments. 3. Training: Resources for the creation of training programs are usually very limited, but well-targeted training is necessary in order for a program to be effective. Training must emphasize a process that is efficient for purchasers and simplifies compliance. Purchaser resources and policy must be well designed for training to be effective. Training program development is an excellent opportunity for collaboration amongst public authorities. 4. Procurement Processes: Many tools and guides intended to help buyers comply with energy-efficient procurement policy are designed without detailed knowledge of the procurement process. A deeper understanding of purchasing pathways allows resources to be better directed. Current research by national and international bodies aims to analyze purchasing pathways and can assist in developing future resources.

25 ENERGY STORAGE↗

Avoided electricity subsidy payments can finance substantial appliance efficiency incentive programs: Case study of Mexico

Numerous countries use taxpayer funds to subsidize residential electricity for a variety of socioeconomic objectives. These subsidies lower the value of energy efficiency to the consumer while raising it for the government. Further, while it would be especially helpful to have stringent Minimum Energy Performance Standards (MEPS) for appliances and buildings in this environment, they are hard to strengthen without imposing a cost on ratepayers. In this secondbest world, where the presence of subsidies limits the government’s ability to strengthen standards, we find that avoided subsidies are a readily available source of financing for energy efficiency incentive programs. Here, we introduce the LBNL Energy Efficiency Revenue Analysis (LEERA) model to estimate the appliance efficiency improvements that can be achieved in Mexico by the revenue neutral financing of incentive programs from avoided subsidy payments. LEERA uses the detailed techno-economic analysis developed by LBNL for the Super-efficient Equipment and Appliance Deployment (SEAD) Initiative to calculate the incremental costs of appliance efficiency improvements. We analyze Mexico’s tariff structures and the long-run marginal cost of supply to calculate the marginal savings for the government from appliance efficiency. We find that avoided subsidy payments alone can finance incentive programs that cover the full incremental cost of refrigerators that are 27% more efficient and TVs that are 32% more efficient than baseline models. We find less substantial market transformation potential for room ACs primarily because AC energy savings occur at less subsidized tariffs.

25 ENERGY STORAGE↗