Nicole Hopper

A Survey of the U.S. ESCO Industry: Market Growth and Development from 2000 to 2006

LBNL-62679 E RNEST O RLANDO L AWRENCE B ERKELEY N ATIONAL L ABORATORY A Survey of the U.S. ESCO Industry: Market Growth and Development from 2000 to 2006 Principal Authors: Nicole Hopper and Charles Goldman, Lawrence Berkeley National Laboratory Donald Gilligan and Terry E. Singer, National Association of Energy Service Companies Dave Birr, Synchronous Energy Solutions Energy Analysis Department Ernest Orlando Lawrence Berkeley National Laboratory 1 Cyclotron Road, MS 90R4000 Berkeley CA 94720-8136 Environmental Energy Technologies Division May 2007 http://eetd.lbl.gov/ea/EMS/EMS_pubs.html The work described in this report was funded by the Permitting, Siting and Analysis Division of the Office of Electricity Delivery and Energy Reliability and the Office of Energy Efficiency and Renewable Energy, Weatherization and Intergovernmental Program, of the U.S. Department of Energy under Contract No. DE-AC02-05CH11231.

Market trends in the U.S. ESCO industry: Results from the NAESCO database project

LBNL-49601 Market Trends in the U.S. ESCO Industry: Results from the NAESCO Database Project Principal Authors Charles A. Goldman, Julie G. Osborn, and Nicole C. Hopper, LBNL Terry E. Singer, NAESCO Energy Analysis Department Environmental Energy Technologies Division Ernest Orlando Lawrence Berkeley National Laboratory University of California Berkeley, CA 94720 http://eetd.lbl.gov/ea/EMS/EMS_pubs.html May 2002 The work described in this paper was funded by the Assistant Secretary of Energy Efficiency and Renewable Energy, Office of Power Technologies and Rebuild America Program under the Office of Energy Efficiency and Renewable Energy of the U.S. Department of Energy under Contract No. DE-AC03-76SF00098.

Real Time Pricing as a Default or Optional Service for C&ICustomers: A Comparative Analysis of Eight Case Studies

LBNL-57661 Real Time Pricing as a Default or Optional Service for C&I Customers: A Comparative Analysis of Eight Case Studies G. Barbose, C. Goldman, R. Bharvirkar, N. Hopper, and M. Ting Lawrence Berkeley National Laboratory B. Neenan Neenan Associates Ernest Orlando Lawrence Berkeley National Laboratory 1 Cyclotron Road, MS90R4000 Berkeley, CA 94720-8136 August 2005 This work described in this report was coordinated by the Demand Response Research Center and funded by the California Energy Commission, Public Interest Energy Research Program, under Work for Others Contract No. 500-03-026 and by the U.S. Department of Energy under Contract No. DE-AC02-05CH11231.

Estimating Demand Response Market Potential Among Large Commercialand Industrial Customers:A Scoping Study

ABSTRACT=Demand response (DR) is increasingly recognized asan essential ingredient to well-functioning electricity markets. DRmarket potential studies can answer questions about the amount of DRavailable in a given area, from which market segments. Several recent DRmarket potential studies have been conducted, most adapting techniquesused to estimate energy-efficiency (EE) potential. In this scoping study,we: reviewed and categorized seven recent DR market potential studies;recommended a methodology for estimating DR market potential for large,non-residential utility customers that uses price elasticities to accountfor behavior and prices; compiled participation rates and elasticityvalues from six DR options offered to large customers in recent years,and demonstrated our recommended methodology with large customer marketpotential scenarios at an illustrative Northeastern utility. We recommendan elasticity approach for large-customer DR options that rely oncusto!Demand response is increasingly recognized as an essential ingredient to well functioning electricity markets. This growing consensus was formalized in the Energy Policy Act of 2005 (EPACT), which established demand response as an official policy of the U.S. government, and directed states (and their electric utilities) to consider implementing demand response, with a particular focus on price-based mechanisms. The resulting deliberations, along with a variety of state and regional demand response initiatives, are raising important policy questions: for example, How much demand response is enough? How much is available? From what sources? At what cost? The purpose of this scoping study is to examine analytical techniques and data sources to support demand response market assessments that can, in turn, answer the second and third of these questions. We focus on demand response for large (>350 kW), commercial and industrial (C&I) customers, although many of the concepts could equally be applied to similar programs and tariffs for small commercial and residential customers.Demand response (DR) is increasingly recognized as an essential ingredient to well-functioning electricity markets. DR market potential studies can answer questions about the amount of DR available in a given area and from which market segments. Several recent DR market potential studies have been conducted, most adapting techniques used to estimate energy-efficiency (EE) potential. In this scoping study, we: reviewed and categorized seven recent DR market potential studies; recommended a methodology for estimating DR market potential for large, non-residential utility customers that uses price elasticities to account for behavior and prices; compiled participation rates and elasticity values from six DR options offered to large customers in recent years, and demonstrated our recommended methodology with large customer market potential scenarios at an illustrative Northeastern utility. We observe that EE and DR have several important differences that argue for an elasticity approach for large-customer DR options that rely on customer-initiated response to prices, rather than the engineering approaches typical of EE potential studies. Base-case estimates suggest that offering DR options to large, non-residential customers results in 1-3% reductions in their class peak demand in response to prices or incentive payments of

Energy Efficiency in Western Utility Resource Plans: Impacts onRegional Resources Assessment and Support for WGA Policies

500/MWh. Participation rates (i.e., enrollment in voluntary DR programs or acceptance of default hourly pricing) have the greatest influence on DR impacts of all factors studied, yet are the least well understood. Elasticity refinements to reflect the impact of enabling technologies and response at high prices provide more accurate market potential estimates, particularly when arc elasticities (rather than substitution elasticities) are estimated.

Developing an energy efficiency service industry in Shanghai

LBNL 58271 E RNEST O RLANDO L AWRENCE B ERKELEY N ATIONAL L ABORATORY Energy Efficiency in Western Utility Resource Plans: Impacts on Regional Resource Assessment and Support for WGA Policies Nicole Hopper, Charles Goldman, and Jeff Schlegel Environmental Energy Technologies Division August 2006 The work described in this report was funded by the Office of Electricity Delivery and Energy Reliability, Permitting, Siting and Analysis of the U.S. Department of Energy under Contract No. DE-AC02-05CH11231.

A Methodology for Estimating Large-Customer Demand Response Market Potential

LBNL-54964 E RNEST O RLANDO L AWRENCE B ERKELEY N ATIONAL L ABORATORY Developing an Energy Efficiency Service Industry in Shanghai Jiang Lin, Charles Goldman, Mark Levine, Nicole Hopper Lawrence Berkeley National Laboratory Environmental Energy Technologies Division February 2004

Estimating Large-Customer Demand Response Market Potential:Integrating Price and Customer Behavior

ABSTRACT=Demand response (DR) is increasingly recognized asan essential ingredient to well-functioning electricity markets. DRmarket potential studies can answer questions about the amount of DRavailable in a given area, from which market segments. Several recent DRmarket potential studies have been conducted, most adapting techniquesused to estimate energy-efficiency (EE) potential. In this scoping study,we: reviewed and categorized seven recent DR market potential studies;recommended a methodology for estimating DR market potential for large,non-residential utility customers that uses price elasticities to accountfor behavior and prices; compiled participation rates and elasticityvalues from six DR options offered to large customers in recent years,and demonstrated our recommended methodology with large customer marketpotential scenarios at an illustrative Northeastern utility. We recommendan elasticity approach for large-customer DR options that rely oncusto!Demand response is increasingly recognized as an essential ingredient to well functioning electricity markets. This growing consensus was formalized in the Energy Policy Act of 2005 (EPACT), which established demand response as an official policy of the U.S. government, and directed states (and their electric utilities) to consider implementing demand response, with a particular focus on price-based mechanisms. The resulting deliberations, along with a variety of state and regional demand response initiatives, are raising important policy questions: for example, How much demand response is enough? How much is available? From what sources? At what cost? The purpose of this scoping study is to examine analytical techniques and data sources to support demand response market assessments that can, in turn, answer the second and third of these questions. We focus on demand response for large (>350 kW), commercial and industrial (C&I) customers, although many of the concepts could equally be applied to similar programs and tariffs for small commercial and residential customers.Demand response (DR) is increasingly recognized as an essential ingredient to well-functioning electricity markets. DR market potential studies can answer questions about the amount of DR available in a given area and from which market segments. Several recent DR market potential studies have been conducted, most adapting techniques used to estimate energy-efficiency (EE) potential. In this scoping study, we: reviewed and categorized seven recent DR market potential studies; recommended a methodology for estimating DR market potential for large, non-residential utility customers that uses price elasticities to account for behavior and prices; compiled participation rates and elasticity values from six DR options offered to large customers in recent years, and demonstrated our recommended methodology with large customer market potential scenarios at an illustrative Northeastern utility. We observe that EE and DR have several important differences that argue for an elasticity approach for large-customer DR options that rely on customer-initiated response to prices, rather than the engineering approaches typical of EE potential studies. Base-case estimates suggest that offering DR options to large, non-residential customers results in 1-3% reductions in their class peak demand in response to prices or incentive payments of

A Methodology for Estimating Large-Customer Demand Response MarketPotential

500/MWh. Participation rates (i.e., enrollment in voluntary DR programs or acceptance of default hourly pricing) have the greatest influence on DR impacts of all factors studied, yet are the least well understood. Elasticity refinements to reflect the impact of enabling technologies and response at high prices provide more accurate market potential estimates, particularly when arc elasticities (rather than substitution elasticities) are estimated.

Review of US ESCO industry market trends: an empirical analysis of project data

ABSTRACT=Demand response (DR) is increasingly recognized asan essential ingredient to well-functioning electricity markets. DRmarket potential studies can answer questions about the amount of DRavailable in a given area, from which market segments. Several recent DRmarket potential studies have been conducted, most adapting techniquesused to estimate energy-efficiency (EE) potential. In this scoping study,we: reviewed and categorized seven recent DR market potential studies;recommended a methodology for estimating DR market potential for large,non-residential utility customers that uses price elasticities to accountfor behavior and prices; compiled participation rates and elasticityvalues from six DR options offered to large customers in recent years,and demonstrated our recommended methodology with large customer marketpotential scenarios at an illustrative Northeastern utility. We recommendan elasticity approach for large-customer DR options that rely oncusto!Demand response is increasingly recognized as an essential ingredient to well functioning electricity markets. This growing consensus was formalized in the Energy Policy Act of 2005 (EPACT), which established demand response as an official policy of the U.S. government, and directed states (and their electric utilities) to consider implementing demand response, with a particular focus on price-based mechanisms. The resulting deliberations, along with a variety of state and regional demand response initiatives, are raising important policy questions: for example, How much demand response is enough? How much is available? From what sources? At what cost? The purpose of this scoping study is to examine analytical techniques and data sources to support demand response market assessments that can, in turn, answer the second and third of these questions. We focus on demand response for large (>350 kW), commercial and industrial (C&I) customers, although many of the concepts could equally be applied to similar programs and tariffs for small commercial and residential customers.Demand response (DR) is increasingly recognized as an essential ingredient to well-functioning electricity markets. DR market potential studies can answer questions about the amount of DR available in a given area and from which market segments. Several recent DR market potential studies have been conducted, most adapting techniques used to estimate energy-efficiency (EE) potential. In this scoping study, we: reviewed and categorized seven recent DR market potential studies; recommended a methodology for estimating DR market potential for large, non-residential utility customers that uses price elasticities to account for behavior and prices; compiled participation rates and elasticity values from six DR options offered to large customers in recent years, and demonstrated our recommended methodology with large customer market potential scenarios at an illustrative Northeastern utility. We observe that EE and DR have several important differences that argue for an elasticity approach for large-customer DR options that rely on customer-initiated response to prices, rather than the engineering approaches typical of EE potential studies. Base-case estimates suggest that offering DR options to large, non-residential customers results in 1-3% reductions in their class peak demand in response to prices or incentive payments of