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Attachment 2 – Electricity and CO2 Reduction Calculations This attachment provides the methodology used to calculate the reduction in electricity use and CO2 emissions and the results of those calculations for each of the nine mechanisms. The measures are separated into those with reductions that result directly with the application of the smart grid technologies, and those for which reductions are obtained indirectly through reinvestment of avoided capital investment due to smart grid technologies. The calculations are based in the year 2030 for both direct and indirect reductions. The improvement in efficiency and/or capacity associated with the mechanisms is drawn from the respective mechanism discussion in Attachment 1. The energy, electricity, capacity, and CO2 emissions data is drawn from EIA Annual Energy Outlook (AEO) for 2008, supplemented in some cases by the latest issue of the Commercial Building Energy Consumption Survey (CBECS), and Residential Energy Consumption Survey (RECS). Direct Reduction Methodology The direct reductions are basically the product of the efficiency improvement for the respective mechanism from Attachment 1 and the electricity consumption for the sector being examined. The calculation for CO2 emissions is based on the share of electricity reduced by the smart grid technologies associated with the mechanism to total electricity delivered to the grid, hence the CO2 reduction estimate is generally the same as the electricity reduction estimate. In cases where the CO2 reductions differ from the electricity reductions, it is expected that the mechanism affects one type of generation over another. Direct mechanisms include: • Conservation Effect of Consumer Information and Feedback Systems • Deployment of Diagnostics in Residential and Small/ • Small/Medium Commercial Buildings • Measurement & Verification (M&V) for Energy Efficiency Programs • Shifting Load to More Efficient Generation • Support Additional Electric Vehicles and Plug-In Hybrid Electric Vehicles • Conservation Voltage Reduction and Advanced Voltage Control • Support Penetration of Renewable Solar Generation (25% renewable portfolio standard [RPS]). • Support Penetration of Renewable Wind Generation (25% RPS). Indirect Reduction Methodology The indirect reductions are calculated as the cost of capacity that is not built, or the cost of program activities not incurred as a result of the implementing the smart grid technologies associated with the mechanism. The monetary value of the avoided cost is then assumed to be reinvested in efficiency, with 2.1PDF Image | The Smart Grid: An Estimation of the Energy and CO2 Benefits
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