2021 Year in Review (and key things to watch for in 2022)
December 13, 2021
At EMC, we are always looking for ways to connect our customers with program opportunities that help them become more successful. Some of these tie into what utilities are trying to do to manage specific system issues (or comply with local regulatory mandates), while others may connect with broader public policy initiatives and trends. Here are a few highlights that we noted in 2021 and some commentary on what to watch for in 2022.
A New Administration. The Biden Administration and associated new Congress have been active when it comes to policy and legislation supporting energy efficiency and other decarbonization efforts. The recently signed infrastructure bill includes billions of dollars to support decarbonization strategies. Other impactful policy changes are being implemented at various agencies through rule changes.
What to watch for: While political winds can shift, there are opportunities currently (or very soon) at hand that can further support energy efficiency and other carbon-reduction strategies.
Electric Vehicles. The biggest TV event of the year is the Super Bowl, and if you watch the game as much for the commercials as you do the football, this year you may have noticed that virtually every car ad featured an electric vehicle (EV). Ford began taking orders for the F-150 Lightning, the electric version of the best-selling vehicle in America, which promises 230 miles of range at a price tag under $40,000. GM announced a goal to stop selling gasoline powered vehicles by 2035, Mercedes and Volvo by 2030.
What to watch for: Customers will value traveling to places that have EV charging infrastructure available. The tipping point for it becoming an expectation is coming sooner than most people think.
Beneficial Electrification. Policymakers at various levels have hitched their wagons to the idea that since electric generation is moving increasingly towards zero-emission options like wind and solar, the ultimate path toward a carbon-free future is to channel more and more end-uses from fossil fuel to electric powered. While electric vehicles may be the most visible, there is also a strong push towards electrified building technologies such as heat pumps. Certain jurisdictions are also looking at forcing the use of such options by limiting the availability of natural gas distribution.
What to watch for: We are all going to become more dependent on the electric grid. Grids will need to be enhanced, which costs money and will be paid for (at least in part) by ratepayers. As more pressure is placed on the grid, the value of using power more efficiently will increase.
Demand Response. Finally, at the utility program level, we are seeing a strengthening of programs to encourage demand-response, or at least demand-response capabilities. The enhancements include both higher incentive levels and easier options to participate in such programs.
What to watch for: When considering a retrofit project, look for opportunities to include features that allow for both manual and automated control. In the lighting realm, this could include things like occupancy sensors, daylight integration and high-end trim. Not sure what these things mean? We can help. There are solutions that are completely transparent to occupants and additional utility incentives can often fully cover the incremental first cost!
Kris Leaf is EMC's Senior Manager of Customer Incentives. He has developed and managed energy efficiency incentive programs for numerous utilities including Xcel Energy, ComEd and MidAmerican Energy.
