Accurate knowledge of appliance lifetimes helps policy makers set effective energy efficiency policy. The cost-effectiveness of an appliance efficiency measure depends on the length of time consumers will use an appliance. National shipments projections depend on the rate of replacement in the installed appliance stock. Furthermore, early retirement programs need an accurate understanding of the remaining useful life in order to calculate lifetime savings and cost-effectiveness of a program. This paper uses a method for calculating lifetime of appliances based on the most recent data available on appliance shipments, total appliance stock, and the fraction of surviving appliances by age bins. An example of the calculation methodology is provided for residential gas boilers. This paper concludes by comparing the results to other available data on gas boiler lifetime.

An increase in the efficiency of natural gas fired residential appliances allows users to realize the same level of service, heating water for example, while using less natural gas. In addition to this technological benefit to the residential sector, the reduced demand for natural gas depresses the price of natural gas, resulting in pecuniary gains to other energy consumers and pecuniary losses to energy producers. The question we address in this study is whether purely pecuniary effects, those that follow from the price changes elicited by lower usage of natural gas, should enter the debate concerning the implementation of energy efficiency programs. To that end, we explore the price and social welfare impacts of natural gas energy efficiency standards by evaluating the impacts of a specific efficiency standard using the National Energy Modeling System. Our analysis indicates that purely pecuniary losses to producers are largely offset by pecuniary benefits to consumers. Our analysis also provides useful insight into the sources of these benefits and losses. Although our results are based on a specific model and efficiency standard, we believe that the results generalize to other efficiency programs and would be reproduced using other energy models.

This article describes the analysis of monetary and energy savings attributable to various energy efficiency levels considered as potential US federal standards for residential clothes dryers. The analysis examined benefits to both consumers and the nation as a whole. Benefits to consumers were evaluated based on the life-cycle cost of affected appliances and the payback period associated with increased first costs. Benefits to the nation incorporate both energy and financial savings associated with each potential efficiency standard. The analysis incorporated the most current information on field use of clothes dryers, which shows that dryer usage and the moisture in clothes are less than previously thought. The analysis found that high-efficiency heat pump clothes dryers would be cost-effective for nearly one fifth of US households. However, for both electric standard and gas clothes dryers, standards that improve efficiency by 5 % appear to be the highest levels that have a positive net present value of consumer benefit.

When government policy-makers propose new policies, they need to assess the costs and benefits of the proposed policy measures to compare them to existing and alternative policies and to rank them according to their effectiveness. In the case of equipment energy efficiency regulations, comparing the effects of a range of alternative policy measures requires evaluating their effects on consumers’ budgets, on national energy consumption and economics, and on the environment. A useful methodology to perform such policy analysis should represent in a single framework the characteristics of each policy measure and provide comparable results. This paper presents an integrated methodological framework for the prospective assessment of the energy, economic, and environmental impacts of a variety of equipment energy efficiency policy measures. The framework is a comparative assessment tool for energy efficiency policy measures that (a) relies on a common set of primary data and parameters; (b) follows a single functional approach to estimate the energy, economic, and emissions savings resulting from each assessed measure; and (c) summarizes results in a set of metrics to facilitate comparative assessments. It provides a general methodology useful for evaluating a broad range of policies to promote greater equipment energy efficiency and the capability to further compare the impacts of such market interventions. The paper concludes with a demonstration of the use of the framework to compare the estimated impacts of 12 policy measures focusing on increasing the energy efficiency of gas furnaces in the USA.

This article describes an analysis of the energy and economic impacts of possible energy efficiency standards for room air conditioners on both U.S. consumers and the nation as a whole. We used two metrics to determine the effect of standards on a representative sample of U.S. consumers: life-cycle cost change and payback period. For the national impact analysis, we evaluated national energy savings attributable to each potential standard, the monetary value of the energy savings to consumers of room air conditioners, the increased total installed costs because of standards, and the net present value of the difference between the value of energy savings and increased total installed costs. Our analysis indicates that standards for room air conditioners at efficiency level 3, which is 17% more efficient than today’s typical unit in the case of room air conditioners less than 6000 Btu/h with louvers and 12% more efficient in the case of room air conditioners 8000 - 13,999 Btu/h with louvers, would save close to one quad of energy over 30 years and have a net present value of consumer benefit of between ?$0.14 billion and $1.82 billion, depending on the discount rate. In addition, such standards would reduce carbon dioxide emissions and NOx emissions.

The U.S. Department of Energy (DOE) recently completed a rulemaking process in which it amended the existing energy efficiency standards for residential water heaters. A key factor in DOE's consideration of new standards is the economic impacts on consumers. Determining such impacts requires a comparison of the additional first cost of energy efficiency design options with the savings in operating costs. This paper describes the method used to conduct the life-cycle cost (LCC) and payback period analysis for gas and electric storage water heaters. It presents the estimated change in LCC associated with more energy-efficient equipment, including heat pump electric water heaters and condensing gas water heaters, for a representative sample of U.S. homes. The study included a detailed accounting of installation costs for the considered design options, with a focus on approaches for accommodating the larger dimensions of more efficient water heaters. For heat pump water heaters, the study also considered airflow requirements, venting issues, and the impact of these products on the indoor environment. The results indicate that efficiency improvement relative to the baseline design reduces the LCC in the majority of homes for both gas and electric storage water heaters, and heat pump electric water heaters and condensing gas water heaters provide a lower LCC for homes with large rated volume water heaters.

Heat pump clothes dryers (HPCDs) can be as much as 50percent more energy-efficient than conventional electric resistance clothes dryers, and therefore have the potential to save substantial amounts of electricity. While not currently available in the U.S., there are manufacturers in Europe and Japan that produce units for those markets. Drawing on analysis conducted for the U.S. Department of Energy's (DOE) current rulemaking on amended standards for clothes dryers, this paper evaluates the cost-effectiveness of HPCDs in American homes, as well as the national impact analysis for different market share scenarios. In order to get an accurate measurement of real energy savings potential, the paper offers a new energy use calculation methodology that takes into account the most current data on clothes washer cycles, clothes dryer usage frequency, remaining moisture content, and load weight per cycle, which is very different from current test procedure values. Using the above methodology along with product cost estimates developed by DOE, the paper presents the results of a life-cycle cost analysis of the adoption of HPCDs in a representative sample of American homes. The results show that HPCDs have positive economic benefits only for households with high clothes dryer usage or for households with high electricity prices and moderately high utilization.

A primary justification for the establishment of energy efficiency standards for home appliances is the existence of information deficiencies and externalities in the market for appliances. For example, when a long-term homeowner purchases a new gas-fired water heater, she will maximize the value of her purchase by comparing the life-cycle cost of ownership of available units, including both total installed cost - purchase price plus installation costs - and operating cost in the calculus. Choice of the appliance with the lowest life-cycle costs leads to the most economically efficient balance between capital cost and fuel cost. However, if the purchaser's expected period of ownership is shorter than the useful life of the appliance, or the purchaser does not pay for the fuel used by the appliance, as is often the case with rental property, fuel cost will be external to her costs, biasing her decision toward spending less on fuel efficiency and resulting in the purchase of an appliance with greater than optimal fuel usage. By imposing an efficiency standard on appliances, less efficient appliances are made unavailable, precluding less efficient purchases and reducing fuel usage. The reduction in fuel demanded by residential users affects the total demand for such fuels as natural gas, for example. Reduced demand implies that residential customers are willing to purchase less gas at each price level. That is, the demand curve, labeled D{sub 0} in Figure 1, shifts to the left to D{sub 1}. If there is no change in the supply function, the supply curve will intersect the demand curve at a lower price. Residential demand is only one component of the total demand for natural gas. It is possible that total demand will decline very little if demand in other sectors increases substantially in response to a decline in the price. If demand does decrease, modeling studies generally confirm the intuition that reductions in demand for natural gas will result in reductions in its price as seen at the wellhead (Wiser 2007). The magnitude of the effect on price relative to the demand reduction, and the mechanism through which it occurs, is less well established. This report attempts to quantify the potential effects of reduced demand for natural gas in the residential sector, in response to the implementation of an energy efficiency standard for water heaters.

Heat pump water heaters (HPWHs) are over twice as energy-efficient as conventional electric resistance water heaters, with the potential to save substantial amounts of electricity. Drawing on analysis conducted for the U.S. Department of Energy's recently-concluded rulemaking on amended standards for water heaters, this paper evaluates key issues that will determine how well, and to what extent, this technology will fit in American homes. The key issues include: 1) equipment cost of HPWHs; 2) cooling of the indoor environment by HPWHs; 3) size and air flow requirements of HPWHs; 4) performance of HPWH under different climate conditions and varying hot water use patterns; and 5) operating cost savings under different electricity prices and hot water use. The paper presents the results of a life-cycle cost analysis of the adoption of HPWHs in a representative sample of American homes, as well as national impact analysis for different market share scenarios. Assuming equipment costs that would result from high production volume, the results show that HPWHs can be cost effective in all regions for most single family homes, especially when the water heater is not installed in a conditioned space. HPWHs are not cost effective for most manufactured home and multi-family installations, due to lower average hot water use and the water heater in the majority of cases being installed in conditioned space, where cooling of the indoor environment and size and air flow requirements of HPWHs increase installation costs.

Heat pump clothes dryers (HPCDs) can be as much as 50percent more energy-efficient than conventional electric resistance clothes dryers, and therefore have the potential to save substantial amounts of electricity. While not currently available in the U.S., there are manufacturers in Europe and Japan that produce units for those markets. Drawing on analysis conducted for the U.S. Department of Energy's (DOE) current rulemaking on amended standards for clothes dryers, this paper evaluates the cost-effectiveness of HPCDs in American homes, as well as the national impact analysis for different market share scenarios. In order to get an accurate measurement of real energy savings potential, the paper offers a new energy use calculation methodology that takes into account the most current data on clothes washer cycles, clothes dryer usage frequency, remaining moisture content, and load weight per cycle, which is very different from current test procedure values. Using the above methodology along with product cost estimates developed by DOE, the paper presents the results of a life-cycle cost analysis of the adoption of HPCDs in a representative sample of American homes. The results show that HPCDs have positive economic benefits only for households with high clothes dryer usage or for households with high electricity prices and moderately high utilization.

LBNL-4749E A Framework for Comparative Assessments of Energy Efficiency Policy Measures Helcio Blum, Barbara Atkinson, and Alex Lekov Energy Analysis Department Lawrence Berkeley National Laboratory Berkeley, CA 94720 May 2011 This work was supported by the Assistant Secretary for Energy Efficiency and Renewable Energy, Office of Building Technology, State, and Community Programs, of the U.S. Department of Energy under Contract No. DE- AC02-05CH11231.

Residential space and water heating accounts for over 90percent of total residential primary gas consumption in the United States. Condensing space and water heating equipment are 10-30percent more energy-efficient than conventional space and water heating. Currently, condensing gas furnaces represent 40 percent of shipments and are common in the Northern U.S. market. Meanwhile, manufacturers are planning to develop condensing gas storage water heaters to qualify for Energy Star? certification. Consumers, installers, and builders who make decisions about installing space and water heating equipment generally do not perform an analysis to assess the economic impacts of different combinations and efficiencies of space and water heating equipment. Thus, equipment is often installed without taking into consideration the potential life-cycle economic and energy savings of installing space and water heating equipment combinations. Drawing on previous and current analysis conducted for the United States Department of Energy rulemaking on amended standards for furnaces and water heaters, this paper evaluates the extent to which condensing equipment can provide life-cycle cost-effectiveness in a representative sample of single family American homes. The economic analyses indicate that significant energy savings and consumer benefits may result from large-scale introduction of condensing water heaters combined with condensing furnaces in U.S.more » residential single-family housing, particularly in the Northern region. The analyses also shows that important benefits may be overlooked when policy analysts evaluate the impact of space and water heating equipment separately.« less

In 2006, the Public Interest Energy Research Program (PIER) Demand Response Research Center (DRRC) at Lawrence Berkeley National Laboratory initiated research into Automated Demand Response (OpenADR) applications in California industry. The goal is to improve electric grid reliability and lower electricity use during periods of peak demand. The purpose of this research is to begin to define the relationship among a portfolio of actions that industrial facilities can undertake relative to their electricity use. This “electricity value chain” defines energy management and demand response (DR) at six levels of service, distinguished by the magnitude, type, and rapidity of response. One element in the electricity supply chain is OpenADR, an open-standards based communications system to send signals to customers to allow them to manage their electric demand in response to supply conditions, such as prices or reliability, through a set of standard, open communications. Initial DRRC research suggests that industrial facilities that have undertaken energy efficiency measures are probably more, not less, likely to initiate other actions within this value chain such as daily load management and demand response. Moreover, OpenADR appears to afford some facilities the opportunity to develop the supporting control structure and to “demo” potential reductions in energy use that can later be applied to either more effective load management or a permanent reduction in use via energy efficiency. Under the right conditions, some types of industrial facilities can shift or shed loads, without any, or minimal disruption to operations, to protect their energy supply reliability and to take advantage of financial incentives. In 2007 and 2008, 35 industrial facilities agreed to implement OpenADR, representing a total capacity of nearly 40 MW. This paper describes how integrated or centralized demand management and system-level network controls are linked to OpenADR systems. Case studies of refrigerated warehouses and wastewater treatment facilities are used to illustrate OpenADR load reduction potential. Typical shed and shift strategies include: turning off or operating compressors, aerator blowers and pumps at reduced capacity, increasing temperature set-points or pre-cooling cold storage areas and over-oxygenating stored wastewater prior to a DR event. This study concludes that understanding industrial end-use processes and control capabilities is a key to support reduced service during DR events and these capabilities, if DR enabled, hold significant promise in reducing the electricity demand of the industrial sector during utility peak periods.

An increasing share of natural gas supplies distributed to residential appliances in the U.S. may come from liquefied natural gas (LNG) imports. The imported gas will be of a higher Wobbe number than domestic gas, and there is concern that it could produce more pollutant emissions at the point of use. This report will review recently undertaken studies, some of which have observed substantial effects on various appliances when operated on different mixtures of imported LNG. While we will summarize findings of major studies, we will not try to characterize broad effects of LNG, but describe how different components of the appliance itself will be affected by imported LNG. This paper considers how the operation of each major component of the gas appliances may be impacted by a switch to LNG, and how this local impact may affect overall safety, performance and pollutant emissions.

This report summarizes the Lawrence Berkeley National Laboratory's research to date in characterizing energy efficiency and open automated demand response opportunities for industrial refrigerated warehouses in California. The report describes refrigerated warehouses characteristics, energy use and demand, and control systems. It also discusses energy efficiency and open automated demand response opportunities and provides analysis results from three demand response studies. In addition, several energy efficiency, load management, and demand response case studies are provided for refrigerated warehouses. This study shows that refrigerated warehouses can be excellent candidates for open automated demand response and that facilities which have implemented energy efficiency measures and have centralized control systems are well-suited to shift or shed electrical loads in response to financial incentives, utility bill savings, and/or opportunities to enhance reliability of service. Control technologies installed for energy efficiency and load management purposes can often be adapted for open automated demand response (OpenADR) at little additional cost. These improved controls may prepare facilities to be more receptive to OpenADR due to both increased confidence in the opportunities for controlling energy cost/use and access to the real-time data.

In 2006, the Public Interest Energy Research Program (PIER) Demand Response Research Center (DRRC) at Lawrence Berkeley National Laboratory initiated research into Automated Demand Response (OpenADR) applications in California industry. The goal is to improve electric grid reliability and lower electricity use during periods of peak demand. The purpose of this research is to begin to define the relationship among a portfolio of actions that industrial facilities can undertake relative to their electricity use. This ?electricity value chain? defines energy management and demand response (DR) at six levels of service, distinguished by the magnitude, type, and rapidity of response. One element in the electricity supply chain is OpenADR, an open-standards based communications system to send signals to customers to allow them to manage their electric demand in response to supply conditions, such as prices or reliability, through a set of standard, open communications. Initial DRRC research suggests that industrial facilities that have undertaken energy efficiency measures are probably more, not less, likely to initiate other actions within this value chain such as daily load management and demand response. Moreover, OpenADR appears to afford some facilities the opportunity to develop the supporting control structure and to"demo" potential reductions in energy use that can later be applied to either more effective load management or a permanent reduction in use via energy efficiency. Under the right conditions, some types of industrial facilities can shift or shed loads, without any, or minimal disruption to operations, to protect their energy supply reliability and to take advantage of financial incentives.1 In 2007 and 2008, 35 industrial facilities agreed to implement OpenADR, representing a total capacity of nearly 40 MW. This paper describes how integrated or centralized demand management and system-level network controls are linked to OpenADR systems. Case studies of refrigerated warehouses and wastewater treatment facilities are used to illustrate OpenADR load reduction potential. Typical shed and shift strategies include: turning off or operating compressors, aerator blowers and pumps at reduced capacity, increasing temperature set-points or pre-cooling cold storage areas and over-oxygenating stored wastewater prior to a DR event. This study concludes that understanding industrial end-use processes and control capabilities is a key to support reduced service during DR events and these capabilities, if DR enabled, hold significant promise in reducing the electricity demand of the industrial sector during utility peak periods.

This report summarizes the Lawrence Berkeley National Laboratory?s research to date in characterizing energy efficiency and automated demand response opportunities for wastewater treatment facilities in California. The report describes the characteristics of wastewater treatment facilities, the nature of the wastewater stream, energy use and demand, as well as details of the wastewater treatment process. It also discusses control systems and energy efficiency and automated demand response opportunities. In addition, several energy efficiency and load management case studies are provided for wastewater treatment facilities.This study shows that wastewater treatment facilities can be excellent candidates for open automated demand response and that facilities which have implemented energy efficiency measures and have centralized control systems are well-suited to shift or shed electrical loads in response to financial incentives, utility bill savings, and/or opportunities to enhance reliability of service. Control technologies installed for energy efficiency and load management purposes can often be adapted for automated demand response at little additional cost. These improved controls may prepare facilities to be more receptive to open automated demand response due to both increased confidence in the opportunities for controlling energy cost/use and access to the real-time data.