ENERGY EFFICIENCY AND DEMAND RESPONSE: TOOLS TO ADDRESS TEXAS’S RELIABILITY CHALLENGES

Over the life of these measures, the average cost of these energy savings is about 5.6 cents/kWh, nearly half the 10 cents/kWh avoided cost estimated by the Public Utility Commission of Texas (PUCT) and less than half the 12 cents/kWh average vii Energy or demand savings (see key) ENERGY EFFICIENCY AND DEMAND RESPONSE FOR TEXAS © ACEEE residential electric rate in Texas. [...] ENERGY EFFICIENCY AND DEMAND RESPONSE IN TEXAS Despite a promising start in the early 2000s, Texas is now far behind other states in deploying energy efficiency and demand response to manage demand, support customer bill affordability, and reduce the likelihood of damage from future summer and winter extreme weather events. [...] (Note that we do not include this reserve margin in our estimates that follow of cost-effectiveness of the total suite of analyzed programs, nor in our reporting of the energy and demand savings potentials of individual programs.) Over the life of these measures, the average cost of these energy savings is about 5.6 cents/kWh, nearly half the 10 cents/kWh avoided cost estimated by the PUCT and les. [...] Energy savings (GWh) by program and year We also estimated the average life of each of the energy efficiency measures and used this, the projected energy savings, and estimated program costs (discussed in the next section) to 22 GWh MW ENERGY EFFICIENCY AND DEMAND RESPONSE FOR TEXAS © ACEEE estimate the levelized (average lifecycle) cost per kWh saved. [...] While the benefit-cost ratio of any 25 B/C Ratio ENERGY EFFICIENCY AND DEMAND RESPONSE FOR TEXAS © ACEEE individual measure is subject to change through the details of program design, incentive size, and implementation success, the aggregate cost-effectiveness of this suite of measures taken together highlights the significant potential to utilize energy efficiency and demand response programs as.