What Does It Take to Turn Load Growth Negative? A View from the Leading Edge

Panel: Visions of the Future: Big New Ideas for Energy Efficiency

Authors:
Scudder Parker, Vermont Energy Investment Corporation
Blair Hamilton, Vermont Energy Investment Corporation
Michael Wickenden, Vermont Energy Efficiency Contract Administrator

Abstract

Utilities and policymakers are increasingly considering massive implementation of energy efficiency as a key strategy in achieving greenhouse gas reduction targets, as well as an effective mechanism for acquiring least-cost resources. While energy efficiency has historically been seen as a tool that could reduce the rate of load growth, we are now entering an era with a new, emerging priority: turning load growth negative. What will it take to do this? What might it look like? Some indications and examples in recent experience can be seen where the most aggressive efficiency efforts have been implemented. In Vermont, the underlying load growth has been approximately 1.45%, slightly less than the current national average. For several years, Vermont has had the highest statewide rate of investment in energy efficiency and a correspondingly high rate of savings. In 2007, increasing efficiency efforts in Vermont resulted in a savings rate of 1.74% of annual sales per year, effectively turning load growth negative. Getting to this point has required strong political and regulatory leadership, development of innovative approaches and strategies, high levels of partnership with key market actors, and unprecedented commitment of human resources. This paper provides the latest results from the leading-edge "laboratory" that Vermont provides in pursuing unprecedented levels of efficiency resource acquisition.