Transforming industrial markets

Panel: Panel 5. Energy efficiency in industry

Authors:
K. H. Tiedemann, BC Hydro, Canada
I. M. Sulyma, BC Hydro, Canada

Abstract

BC Hydro's Power Smart Partner Industrial program was launched in April 2002. The basic concept was that BC Hydro's largest business customers have the most to gain from implementing long-term energy savings strategies. BC Hydro partners with these companies, and it contributes matching funding and other resources to help them overcome barriers to realizing energy savings opportunities. The purpose of this paper is to summarize the findings of a market and impact evaluation of the Power Smart Partners Industrial program. There are four key findings. First, program participants installed energy efficient technologies at higher rates than non-participants, and in most cases the differences in installation rates were significant at the 90% level or better. Second, sector demand equations for purchased electricity were estimated for metal mining, wood products, pulp and paper, chemical, and coal mining, and these demand equations had reasonable and well determined activity and price elasticities. Third, evaluated energy savings over four years were 469.3 GWh per year compared to program estimated energy savings of 497.3 GWh per year and evaluated peak savings were 64.5 MW compared to program estimated demand savings of 68.1 MW. Fourth, the program offering and program cost effectiveness compared well with other exemplary programs, with first year program costs for energy of $0.14 per kWh and first year program costs for peak of $724 per kW.