Determining the Full Value of Industrial Efficiency Programs

This paper presents the results from a series of five case study impact evaluations of Energy Savings Plan (ESP) industrial energy efficiency projects funded by the Bonneville Power Administration (BPA) and Seattle City Light (SCL). These industrial sector evaluations are among the first in the Pacific Northwest to assess both energy and non-energy effects. The methodology used in these evaluations can be employed by others to conduct similar comprehensive impact evaluations so that energy service providers, utilities, and their customers can obtain a more complete understanding of the energy and non-energy benefits of industrial efficiency programs. Each industrial setting, the efficiency measures installed, and the processes affected are described in this paper. The projects chosen for evaluation cover a wide range of industrial processes and end uses. Findings include energy (kWh) and peak demand (kW) savings indexed to changes in production volume, an assessment of non-energy benefits to the participating customer, and costeffectiveness analyses from four stakeholder perspectives, including levelized cost (expressed in cents per kWh) and benefit-cost ratios, both including and excluding quantifiable non-energy benefits. A summary of conclusions and lessons learned is also provided. The evaluation team included Patrick Lilly of Regional Economic Research Inc., Paresh Parekh of Unicade Inc., D’Arcy Swanson of Pacific Sciences Inc., and Dennis Pearson at SCL.