Topic:"Market Transformation" in M07544

e tied to specific energy efficiency projects and are associated directly with energy savings. For the programs in the ENS portfolio, educational incentives are not quantified as financial incentives. Incentives are critical to achieving p...

AI summary The text emphasizes the importance of incentives in energy efficiency programs, distinguishing between educational and financial incentives. It highlights that market transformation, where energy-efficient practices become standard, is the ultimate goal, shifting savings attribution from incentives to codes and standards. This process may take years and requires ongoing adaptation to new efficiency levels.

MARKET TRANSFORMATION The ACEEE defines market transformation as the "strategic process of intervening in a market to create lasting change in market behaviour by removing identified barriers or exploiting opportunities to accelerate the a...

AI summary The ACEEE defines market transformation as a strategic process to remove barriers and accelerate cost-effective energy efficiency adoption. It emphasizes the technology adoption curve, highlighting the need for incentives during 'The Chasm' and early majority phases. Program review and adjustments to baselines are critical during the late majority period to ensure continued market transformation success.

OTHER CONSIDERATIONS Through the most recent program evaluation process, ENS has identified that some educational initiatives are incurring savings attribution issues, and have received tentative disallowance. This specifically was the cas...

AI summary ENS identified savings attribution issues in educational initiatives like the Home Energy Reports (HER) program, risking disallowance. This complicates shifting funding from financial to educational incentives. ENS uses average wattage for energy savings estimates instead of dual baselines, which may hinder lifetime savings tracking.

EFFICIENCY NOVA SCOTIA'S PROGRAM PORTFOLIO The following table contains a summary of ENS's current programs, target market and incentive structure. Commercial customers are defined as businesses, not-for-profits and institutional customers.

AI summary The document outlines Efficiency Nova Scotia's current programs, targeting commercial customers (businesses, not-for-profits, institutions), with a focus on incentive structures. The table summarizes program details, but specific programs and incentives are not detailed in the provided text.

While Ontario does not have a documented incentive level setting methodology, a formal process has been established for all potential program changes and new program proposals. This process covers incentive level changes. All proposed chan...

AI summary Ontario lacks a formal incentive level setting methodology but has a process for program changes and proposals involving business case development and approval by the IESO. Key considerations include technology costs, savings, market structure, and financial impact. Incentive levels are often reviewed annually or during program evaluations, with specific examples like the Retrofit program's recent lighting track changes.

1. Market Research The process starts by performing both primary and secondary market research in order to determine the measure performance metrics and costs. The objective is to determine awareness, barriers and purchase decisions. Marke...

AI summary The process involves primary and secondary market research to assess measure performance metrics, costs, awareness, barriers, and purchase decisions. Factors like market penetration and technology age (e.g., new vs. widespread solutions) are evaluated.

EXISTING PROGRAMS The following are programs a part of the EEPS. Major changes are expected when the CEF portfolio is introduced.

AI summary The text outlines existing programs under the Energy Efficiency Portfolio Standard (EEPS) and notes significant changes anticipated with the introduction of the Clean Energy Fund (CEF) portfolio. The focus is on program structure and upcoming reforms.

ional and technical assistance incentives can cover the entire spectrum of customers. Depending on the type of activity, these incentives may be quantified as a financial incentive if they are tied to 6 Canadian Energy Efficiency Alliance,...

AI summary The text discusses incentive structures for energy efficiency programs, emphasizing financial and educational incentives. It highlights that incentives remove barriers to participation, aiming for market transformation where energy-efficient practices become standard. Sustainable success is achieved when market forces drive efficiency, though this process may take years.

MARKET TRANSFORMATION The ACEEE defines market transformation as the "strategic process of intervening in a market to create lasting change in market behaviour by removing identified barriers or exploiting opportunities to accelerate the a...

AI summary The text defines market transformation as a strategic process to change market behavior through removing barriers to adopt cost-effective energy efficiency. It references ACEEE's definition and discusses the technology adoption curve, emphasizing the importance of timing financial incentives during phases like 'The Chasm' and the late majority period. Incentive setting and program adjustments are critical during early adopter to late majority stages.

Supply Chain and Stakeholder Discussion In designing and delivering any best-in-class energy efficiency program, it is important to involve the supply chain and key stakeholders such as industry associations, other government agencies and...

AI summary The document emphasizes the importance of involving supply chain and stakeholders in energy efficiency programs to address market barriers, refine incentive structures, and ensure effective program delivery. Examples include adjusting incentives for commercial refrigeration programs and considering distributor barriers in midstream lighting initiatives. It also highlights the need to identify existing market incentives like tax rebates and financing options.

Understand Supply Chain and Service Provider Considerations For Instant Savings, EfficiencyOne gains an understanding of the supply chain and service provider considerations through the following activities: 1. Ongoing Program Management;...

AI summary EfficiencyOne engages in ongoing program management and annual program evaluations to understand supply chain and service provider considerations for the Instant Savings Program. Annual meetings with retailers and manufacturers provide insights into stocking plans, product pricing, and marketing strategies, which support technology assessments and market research.

ional and technical assistance incentives can cover the entire spectrum of customers. Depending on the type of activity, these incentives may be quantified as a financial incentive if they are tied to 6 Canadian Energy Efficiency Alliance,...

AI summary Incentives are crucial for Energy Efficiency Nova Scotia (ENS) programs to remove participation barriers and drive market transformation, making energy-efficient practices standard. Market transformation, outlined in the document, shifts savings attribution from incentives to codes and standards, ensuring long-term sustainability.

MARKET TRANSFORMATION The ACEEE defines market transformation as the "strategic process of intervening in a market to create lasting change in market behaviour by removing identified barriers or exploiting opportunities to accelerate the a...

AI summary The document defines market transformation as a strategic process to change market behavior through removing barriers to accelerate cost-effective energy efficiency. It references ACEEE's definition and a technology adoption curve, emphasizing the importance of incentives during the 'Chasm' and early majority periods. Program success depends on aligning incentive settings with technology maturity and market penetration.

PAC Benefits (Cost Effectiveness) Threshold The PAC is the cost effectiveness test that reflects a program administrator's financial expenditure for a measure, program or portfolio. It is calculated by dividing the PAC benefits, which are...

AI summary The PAC Benefits (Cost Effectiveness) Threshold evaluates program administrator costs relative to avoided electricity supply and distribution costs. PAC is calculated as benefits divided by costs, including overhead and incentive expenses. Incentives should ideally not exceed PAC benefits adjusted for overhead. While a minimum PAC of 1.0 is common, higher thresholds (e.g., 2.0) can be targeted to limit costs to 50% of benefits.

EFFICIENCY NOVA SCOTIA'S PROGRAM PORTFOLIO The following table contains a summary of ENS's current programs, target market and incentive structure. Commercial customers are defined as businesses, not-for-profits and institutional customers.

AI summary Efficiency Nova Scotia (ENS) outlines its current programs, targeting commercial customers defined as businesses, not-for-profits, and institutional entities. The text references a table summarizing program structures, incentives, and market focus.

Even though programmable thermostats have an incentive of 50 percent of their retail price, their low market penetration and high per unit energy savings make them important for future program success, especially when considering Nova Scot...

AI summary The document discusses the incentive levels for programmable thermostats, heavy-duty timers, and outdoor clotheslines within energy efficiency programs. It highlights that while some incentives may not need updating, others could be reduced due to high market penetration or cost-effectiveness considerations.

1. Market Research The process starts by performing both primary and secondary market research in order to determine the measure performance metrics and costs. The objective is to determine awareness, barriers and purchase decisions. Marke...

AI summary The process involves primary and secondary market research to assess measure performance metrics, costs, awareness, barriers, and purchase decisions, considering market penetration and technology age (e.g., new vs. widespread solutions).

e tied to specific energy efficiency projects and are associated directly with energy savings. For the programs in the ENS portfolio, educational incentives are not quantified as financial incentives. 6 Canadian Energy Efficiency Alliance,...

AI summary Incentives are crucial for energy efficiency programs, with ENS's educational incentives not quantified as financial. Market transformation is key for sustainable success, requiring years to achieve, and new practices may emerge.

MARKET TRANSFORMATION The ACEEE defines market transformation as the "strategic process of intervening in a market to create lasting change in market behaviour by removing identified barriers or exploiting opportunities to accelerate the a...

AI summary The text defines market transformation as a strategic process to change market behavior through removing barriers to energy efficiency. It references ACEEE's definition and the technology adoption curve, emphasizing the role of incentives during 'The Chasm' and late majority periods. Incentive setting and review are critical during program implementation to ensure success.

Supply Chain and Stakeholder Discussion In designing and delivering any best-in-class energy efficiency program, it is important to involve the supply chain and key stakeholders such as industry associations, other government agencies and...

AI summary The document emphasizes involving supply chain and stakeholders in energy efficiency programs to address market barriers, adjust incentives, and ensure effective delivery. Examples include adapting financial incentives for commercial refrigeration programs and understanding distributor barriers in midstream lighting initiatives. Stakeholders also help identify external incentives like tax rebates and low-cost financing.

Budget Threshold Measure level, program or portfolio budgets can also limit incentive levels. For example, for high-volume measures, there may be an overall budgetary restriction due to the volume risk of participation. Additionally, certa...

AI summary Budget thresholds can limit incentive levels for energy efficiency measures, with jurisdictions using metrics like $/kWh to cap spending. High-volume measures face budget restrictions due to volume risk, and commercial/industrial sectors typically have lower $/kWh spending than residential, requiring balance in portfolio management.

After determining incentive values by analyzing the considerations that determine the two influences (perceived value, return on investment) of incentive setting, the final requirement is to establish and follow a review protocol. In some...

AI summary The text outlines the need for a periodic review protocol for incentive levels in energy efficiency programs, considering factors such as market transformation, technology evolution, and stakeholder engagement. It emphasizes the importance of aligning review frequency with program structure, budget, and technology maturity, with varying intervals from quarterly to biennial.

Figure 23: Union Gas Targets & Performance Metric[s](#page-125-0) 4 Resource Acquisition Scorecard Low Income Total Large Volume Large Volume - Revised Large Volume Overhead - Revised Evaluation - Revised Administrative costs - Revised Lar...

AI summary Figure 23 presents Union Gas's targets and performance metrics, including budget figures and administrative costs for various programs and initiatives, such as low-income support, market transformation, and energy efficiency programs.

Cost Effectiveness Requirements The gas utilities' overall DSM goals are to achieve all the cost-effective DSM available in its market. The OEB determined that cost effectiveness should be based on the Total Resource Cost-plus (TRC-plus) t...

AI summary Gas utilities in Nova Scotia must achieve all cost-effective Demand Side Management (DSM) programs. The Ontario Energy Board (OEB) mandates the Total Resource Cost-plus (TRC-plus) test for cost-effectiveness, with low-income programs requiring a minimum TRC-plus ratio of 0.7 and Resource Acquisition programs requiring 1.0. Market transformation programs are exempt from cost-effectiveness testing as they aim to drive behavioral change.

COST EFFECTIVENESS – NATURAL GAS The current market condition for natural gas prices (i.e., low price environment) has caused the Energy Trust and PUCs to reexamine gas measures over the last few years. The Energy Trust has been able to ca...

AI summary Low natural gas prices prompted the Energy Trust and PUCs to reevaluate gas measures using Order 94-950. The Energy Trust applies TRC thresholds (≥1.0, 0.5-0.9 with exceptions, <0.5 excluded) to maintain program infrastructure and market momentum until gas prices rise. Portfolio-level cost-effectiveness tests help manage program delivery.

ional and technical assistance incentives can cover the entire spectrum of customers. Depending on the type of activity, these incentives may be quantified as a financial incentive if they are tied to & lt;sup>6 Canadian Energy Efficiency...

AI summary Incentives for energy efficiency programs are crucial for removing participation barriers and achieving market transformation, where efficient behaviors become standard practice. The ENS portfolio distinguishes between financial and educational incentives, with the latter not quantified as financial. Market transformation is a long-term goal, requiring years for technologies or behaviors to become standard, with ongoing improvements.

MARKET TRANSFORMATION The ACEEE defines market transformation as the "strategic process of intervening in a market to create lasting change in market behaviour by removing identified barriers or exploiting opportunities to accelerate the a...

AI summary The text defines market transformation as a strategic process to change market behavior through removing barriers to adopt cost-effective energy efficiency. It references the technology adoption curve, emphasizing the importance of timing incentives based on technology maturity. Incentives are crucial during 'The Chasm' phase and until the late majority period, with adjustments needed as programs progress.

Supply Chain and Stakeholder Discussion In designing and delivering any best-in-class energy efficiency program, it is important to involve the supply chain and key stakeholders such as industry associations, other government agencies and...

AI summary The discussion emphasizes involving supply chain and stakeholders in energy efficiency programs to address market barriers, adjust incentives, and optimize delivery strategies. Examples include adapting financial incentives for contractor preferences and considering external incentives like tax rebates. Stakeholders' insights on costs and barriers are critical for program design.

INCENTIVE RATE REVIEW PROTOCOL After determining incentive values by analyzing the considerations that determine the two influences (perceived value, return on investment) of incentive setting, the final requirement is to establish and fol...

AI summary The document outlines a periodic review protocol for incentive rates in energy efficiency programs, emphasizing the need for regular assessments based on market dynamics, stakeholder engagement, and technology evolution. Reviews should occur annually or biennially, with more frequent checks for rapidly changing technologies. Factors like customer pricing, technology penetration, and financial impacts are central to the evaluation process.

NOVA SCOTIA'S ELECTRICITY SYSTEM In 2015, Nova Scotia had an annual electricity consumption of 10,400 GWh. The residential sector accounts for 45 percent of consumption, the commercial sector uses about 32 percent, and the industrial secto...

AI summary Nova Scotia's electricity system saw a 70% retail rate increase over 10 years due to industrial load loss, renewable integration, and fuel costs. NS Power dominates infrastructure, while provincial legislation mandates 40% renewable energy by 2020. The system faces challenges in managing variable loads and achieving emission reduction targets.

EFFICIENCY NOVA SCOTIA'S PROGRAM PORTFOLIO The following table contains a summary of ENS's current programs, target market and incentive structure. Commercial customers are defined as businesses, not-for-profits and institutional customers.

AI summary Efficiency Nova Scotia (ENS) outlines its current programs targeting commercial customers, including businesses, not-for-profits, and institutional entities, with details on incentive structures.

Considerations for vetting ideas, measuresVetting Ideas, Measures and measure updatesMeasure Updates Below are the considerations taken by the Energy Trust and its program delivery agents when introducing a new measure into its program por...

AI summary The Energy Trust evaluates new measures or updates using criteria including savings potential, budget impact, alignment with long-term strategy, stakeholder interest, risk analysis, market factors, and prior experience. These considerations guide program portfolio decisions.