EBCE Issues Solicitation for its Largest Ever Energy Efficiency Initiative
Request for Proposals is the First Step in Offering Commercial Pay-for-Performance Energy Efficiency Program and Additional Grid Services Program
Oakland, CA (October 26, 2022) – East Bay Community Energy (EBCE) received the green light from the California Public Utilities Commission (CPUC) to administer its first ever energy efficiency program. This $13 million program, funded through the Public Purpose Programs surcharge, will launch in 2023 and is expected to save over 9 million kilowatt-hours in its first year. That’s equivalent to the annual amount of electricity consumed by almost 2,000 average homes in Alameda County.
EBCE is seeking proposals for implementation and measurement & verification (M&V) services for two distinct programs: Commercial Pay-for-Performance (“P4P”) Energy Efficiency and Additional Grid Services. EBCE is interested in selecting one or more implementers to develop and operate these programs for EBCE customers throughout Alameda County and the city of Tracy in San Joaquin County.
This effort follows EBCE’s work in 2020 to launch three P4P pilots to explore the ability to cost effectively procure flexible demand side savings that contribute value to EBCE’s energy portfolio.
EBCE has “elected” to administer energy efficiency programs on behalf of EBCE customers. EBCE’s Energy Efficiency Program Plan and Advice Letter were certified by the CPUC last month, re-allocating a budget of $13.5 million of public benefits funding routinely collected from EBCE’s customers on PG&E bills, for EBCE to administer a commercial energy efficiency program.
The commercial energy efficiency program will leverage emerging P4P program approaches, which reward projects based on actual energy savings measured at the meter regardless of the technology upgrade. These projects will focus on high-potential opportunities for peak load management and building electrification to offer cost-effective projects for its large, non-residential customer accounts.
EBCE is targeting commercial customers for this program given they consume 58% of the entire load and make up 10% of all accounts. Commercial customers are responsible for a significant amount of EBCE’s total electric load, and the time of day that customers use this energy contributes to the price they pay, the burden on the grid, and the associated greenhouse gas emissions. Within this segment, EBCE will target customers with high peak usage due to the cost-effective nature of use reduction and price signals from Time-of-Use rates. Further, reducing EBCE’s peak demand will effectively reduce costs for all EBCE customers.
In addition to CPUC funds, EBCE is also providing supplemental funding for additional grid services, like load management strategies, to extract additional value out of energy efficiency projects. Within the solicitation, EBCE is looking to send out a price signal for the value of avoided costs during peak/non-peak hours, and is seeking innovative program design ideas to demonstrate how grid services can provide persistent savings over time.
“With this solicitation, EBCE is looking for partners to help implement EBCE’s vision of increased electrification in the commercial sector, paired with smoothing electricity demand in the east bay, all while lowering customer bills,” said JP Ross, EBCE’s Vice President of Local Development, Electrification and Innovation. “And this is all paid for with an existing funding mechanism, Public Purpose Programs revenue.”
Details are available at ebce.org/solicitations.