Hey, Isn't a Market Supply and Demand?

David Cohan and H. Skip Schick, Northwest Energy Efficiency Alliance
Jane S. Peters and Marjorie McRae, Research Into Action, Inc.

Keywords

Abstract

The Northwest Energy Efficiency Alliance (the Alliance), charged with market transformation for the four-state Pacific Northwest region, began full implementation of the Commercial Sector Initiative (CSI) after a multi-year start-up period. The CSI intends to stimulate both the supply of and the demand for energy-efficient commercial building stock and operations.

The CSI is working with three vertical markets (hospitals, grocery stores, and real estate) to increase demand for energy efficiency and two cross-cutting markets (design and construction, and building operations) to increase supply. The Alliance supports vertical market firms to develop and implement strategic energy management plans that put energy efficiency on par with the firms’ other key strategic goals and have an impact on design and construction, purchasing, and operations. Simultaneously, the Alliance is working with firms in the design and construction, and building operations markets to develop their capacity to provide energyefficient solutions.

The paper describes the CSI and results from two early market progress evaluations conducted for CSI activities in the hospital and grocery store markets. The evaluations found that the Alliance faced and continues to face formidable challenges in both conceptualizing and implementing the CSI. Early response to the CSI approach among hospitals has been very encouraging; initial response among grocery stores suggests this market may be more attracted to immediate, discrete project activities rather than the longer-term sustainable practices the Alliance is targeting. Full-scale implementation of comprehensive CSI began in 2006. The challenges are evident, yet staff and contractors remain confident in the approach.