Identifying and Enhancing Energy Program Portfolio Synergies: The New York Experience

Paul A. DeCotis, Lawrence J. Pakenas, and Jennifer A. Ellefsen, New York State Energy and Research Development Authority
Bruce E. Tonn, Oak Ridge National Laboratory

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Abstract

This paper presents outcomes of a multi-year project to identify and enhance interrelationships among programs in the New York Energy SmartSM portfolio administered by the New York State Energy Research and Development Authority (NYSERDA). Oak Ridge National Laboratory (ORNL) and NYSERDA conducted this work to assess and maximize the benefits of this administrative model. Synergy exists if the impacts of a program portfolio exceed the sum of the individual program impacts that comprise the portfolio. Several conceptual frameworks helped assess synergy. One framework examines ten organizational conditions for synergy. A second framework examines participants’ views of program interrelationships. A third framework examines whether synergy accelerates market penetration. NYSERDA staff focus groups were convened to collect data. Findings include:

NYSERDA is meeting the ten organizational conditions for synergy;
Staff regularly communicate and share lessons learned;
NYSERDA’s portfolio has numerous opportunities for additional synergy;
Staff believe synergy will accelerate and increase market penetration;
There are no negative impacts associated with promoting synergy; and
Barriers to synergy include changing organizational goals, potential confusion resulting from the large number of programs in the portfolio, and lack of customer awareness of NYSERDA programs and technologies.

This project did not comparatively assess alternative administration models; however, NYSERDA’s approach is working well and synergies exist. Assessing synergies through employee focus groups motivates communication, awareness, and goal alignment. Future work will collect data from participants, better quantify synergy, and refine and re-implement some focus group exercises.