The Smart Grid: An Estimation of the Energy and CO2 Benefits

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with energy efficiency or demand response programs that involve the relevant end uses is one such possible mechanism, particularly where utility efficiency investments are involved. An important consideration pertains to data access and consumer privacy. Because of the sensitive nature of some of the data involved, use or transmission of the data outside the customer’s premises should require the full knowledge and consent of the consumer. When utility or third-party investment is involved this may be a programmatic requirement. A solution is conducting diagnostics with software applications within the customer’s premises, but this requires timely access to data from the meter and demand response controls. These are important smart grid policy questions that must be addressed to guide development of this mechanism. The direct reductions in electricity and associated CO2 emissions calculated in Attachment 1, Appendix C, and shown in Table 3.5 are based on the literature review and the author’s experience. These are based on our estimate that potential reductions of 15% in the residential sector for heating and cooling electricity (with a range of 10% to 20%) and 20% in small/medium commercial building sectors for HVAC and lighting (with a range of 10% to 30%) are achievable through implementation of smart grid technologies. Large commercial buildings are excluded for the reasons described above. No indirect reductions in operational or capital costs are expected. A discussion of the basis for these estimates from the literature examined and more details on the building diagnostics are provided in Attachment 1, Mechanism C. Table 3.5. Estimated Direct Impacts for Enabling Mass Deployment of Diagnostics in Residential and Small/Medium Commercial Buildings Reduced Energy Consumption (2030) Baseline Electricity Consumption Electric Sector Annual Reductions (2030) End-Use Sector(s) Residential (Heat Pump & Air Conditioner) Small/Medium Commercial Buildings (HVAC + Lighting) 9 (10 kWh/year) 331 510 kWh/ States yearr) Energy Carbon Emissions Est. Low % % 15 10 20 10 3.1.5 High % 20 30 % of United States 9 year) % of United (MMT/ (10 3 152 3 90 Measurement & Verification for Energy Efficiency Programs The precision measurements that could be obtained by leveraging a smart grid could be used to provide additional value by offering M&V of energy savings from end-use efficiency programs on a real- time basis, for all participants, with great transparency and accuracy in the calculation of r energy and CO2-emission reductions. Most evaluations of utility energy efficiency programs today are based on three general approaches: • Stipulation of energy savings, based on simple in-situ or bench-scale tests that compare consumption with and without the efficiency measure, combined with assumed average operating times for appliances and equipment (that may be obtained from metered patterns) 3.19

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