The Cost of Saving Electricity: A Multi-Program Cost Curve for Programs Funded by U.S. Utility Customers
Abstract
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.
- Authors:
-
- Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
- Publication Date:
- Research Org.:
- Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
- Sponsoring Org.:
- USDOE Office of Energy Efficiency and Renewable Energy (EERE)
- OSTI Identifier:
- 1650094
- Grant/Contract Number:
- AC02-05CH11231
- Resource Type:
- Accepted Manuscript
- Journal Name:
- Energies (Basel)
- Additional Journal Information:
- Journal Name: Energies (Basel); Journal Volume: 13; Journal Issue: 9; Journal ID: ISSN 1996-1073
- Publisher:
- MDPI AG
- Country of Publication:
- United States
- Language:
- English
- Subject:
- 29 ENERGY PLANNING, POLICY, AND ECONOMY; energy efficiency programs; electricity savings; program costs; cost of saved electricity; demand-side management; efficiency supply curves; utility planning
Citation Formats
Goldman, Charles A., Hoffman, Ian, Murphy, Sean, Mims Frick, Natalie, Leventis, Greg, and Schwartz, Lisa. The Cost of Saving Electricity: A Multi-Program Cost Curve for Programs Funded by U.S. Utility Customers. United States: N. p., 2020.
Web. doi:10.3390/en13092369.
Goldman, Charles A., Hoffman, Ian, Murphy, Sean, Mims Frick, Natalie, Leventis, Greg, & Schwartz, Lisa. The Cost of Saving Electricity: A Multi-Program Cost Curve for Programs Funded by U.S. Utility Customers. United States. https://doi.org/10.3390/en13092369
Goldman, Charles A., Hoffman, Ian, Murphy, Sean, Mims Frick, Natalie, Leventis, Greg, and Schwartz, Lisa. Sat .
"The Cost of Saving Electricity: A Multi-Program Cost Curve for Programs Funded by U.S. Utility Customers". United States. https://doi.org/10.3390/en13092369. https://www.osti.gov/servlets/purl/1650094.
@article{osti_1650094,
title = {The Cost of Saving Electricity: A Multi-Program Cost Curve for Programs Funded by U.S. Utility Customers},
author = {Goldman, Charles A. and Hoffman, Ian and Murphy, Sean and Mims Frick, Natalie and Leventis, Greg and Schwartz, Lisa},
abstractNote = {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.},
doi = {10.3390/en13092369},
journal = {Energies (Basel)},
number = 9,
volume = 13,
place = {United States},
year = {Sat May 09 00:00:00 EDT 2020},
month = {Sat May 09 00:00:00 EDT 2020}
}
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