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The Cost of Saving Electricity: A Multi-Program Cost Curve for Programs Funded by U.S. Utility Customers

Journal Article · · Energies
DOI:https://doi.org/10.3390/en13092369· OSTI ID:2377773
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This study analyzed the cost performance of electricity efficiency programs implemented by 116 investor-owned utilities between 2009 and 2015 in 41 states, representing about three-quarters of the total spending on U.S. efficiency programs. We applied our typology to characterize efficiency programs along several dimensions (market sector, technology, delivery approach, and intervention strategy) and report the costs incurred by utilities and other program administrators to achieve electricity savings as a result of the programs. Such cost performance data can be used to compare relative costs of different types of efficiency programs, evaluate efficiency options alongside other electricity resources, benchmark local efficiency programs against regional and national cost estimates, and assess the costs of meeting state efficiency policies. The savings-weighted average cost of saved electricity for the period was $0.025/kilowatt-hour (kWh). The cost of saved electricity for programs that targeted residential customers was $0.021/kWh, compared to $0.025/kWh for programs for commercial and industrial customers. Ultimately, we developed an aggregate program savings “cost curve” for the actual electricity efficiency resource during the period that provides insights into the relative costs of various types of efficiency programs and the savings contribution of each program type to the efficiency resource at a national level.

Research Organization:
Lawrence Berkeley National Laboratory (LBNL), Berkeley, CA (United States)
Sponsoring Organization:
USDOE; USDOE Office of Energy Efficiency and Renewable Energy (EERE)
Grant/Contract Number:
AC02-05CH11231
OSTI ID:
2377773
Alternate ID(s):
OSTI ID: 1650094
Journal Information:
Energies, Journal Name: Energies Journal Issue: 9 Vol. 13; ISSN 1996-1073; ISSN ENERGA
Publisher:
MDPI AGCopyright Statement
Country of Publication:
Switzerland
Language:
English

References (7)

Modeling energy efficiency as a supply resource: a bottom-up approach journal November 2018
Review of demand-side data needs for least-cost utility planning journal May 1990
Estimating the cost of saving electricity through U.S. utility customer-funded energy efficiency programs journal May 2017
Decision-making based on energy costs: Comparing levelized cost of energy and energy system costs journal April 2019
Big savers: Experiences and recent history of program administrators achieving high levels of electric savings journal October 2016
What Does a Negawatt Really Cost? Evidence from Utility Conservation Programs journal October 1992
The Total Cost and Measured Performance of Utility-Sponsored Energy Efficiency Programs journal January 1996

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29 ENERGY PLANNING, POLICY, AND ECONOMY
cost of saved electricity
demand-side management
efficiency supply curves
electricity savings
energy efficiency programs
program costs
utility planning