Energy Efficiency: Expanded Scale of Opportunities Arshad Mansoor Vice President, Power Delivery & Utilization, EPRI 2008 Summer Seminar August 4, 2008

2 © 2008 Electric Power Research Institute, Inc. All rights reserved. Carbon Footprint of End Use Energy in U.S., 2006 In a Low Carbon Future Carbon Footprint Becomes the Primary Metrics to Gauge the Scale of Energy Efficiency DOE EIA, Annual Energy Outlook 2008, Tables A2. and A18.

3 © 2008 Electric Power Research Institute, Inc. All rights reserved. The Expanded Scale of Energy Efficiency Traditional Energy Efficiency Measures –Reducing carbon footprint by reducing use of electricity through increasingly higher efficiency Electrifying End Use Processes –Reducing carbon footprint by replacing direct combustion of fossil fuel in end use processes with low carbon electricity Electrifying Transportation –Reducing carbon footprint by replacing direct combustion of petroleum with low carbon electricity Significant Opportunity to Expand the Scale of Energy Efficiency

4 © 2008 Electric Power Research Institute, Inc. All rights reserved. Low Carbon Generation is the Key Decarbonizing the Electricity Sector Increases the Opportunity to Reduce Carbon Footprint Through Efficient Use of Electricity

5 © 2008 Electric Power Research Institute, Inc. All rights reserved. Generation TransmissionDistribution Residence/ Buildings ~5% ~3% ~5%~62% Significant Opportunity to Improve End to End Efficiency Industries Breakdown of Electricity Use ~25% Electricity Industry is the Single Largest End User of Electricity Traditional Energy Efficiency Measures: End to End

6 © 2008 Electric Power Research Institute, Inc. All rights reserved. Appliance Efficiency: Codes and Standards Decrease in Energy Use for Three Major Appliances (Source: S. Nadel, ACEEE, in ECEEE 2003 Summer Study,

7 © 2008 Electric Power Research Institute, Inc. All rights reserved. Next Generation Appliances: Codes & Standards Plasma TV (~250W), Set-top Box (~30W) By 2030 almost 30% of residential load will be “plug connected” (DOE/EIA Annual Energy Outlook 2007) Increase in electricity use by adding a 46” plasma and a set-top box: ~860 kWh/yr/household or 2.7% of US Electricity Consumption Increase in electricity use by adding one digital photo frame per household: ~Five 250MW Generation Plant Digital photo frame (6W-15W)

8 © 2008 Electric Power Research Institute, Inc. All rights reserved. Electrifying End Uses: Heat Pump Example 41% Reduction in Energy and 32% Reduction in Carbon Footprint Power system losses based on average U.S. generation mix, AFUE: Annual Fuel Utilization Efficiency; COP: Coefficient of Performance DOE EIA Annual Energy Review 2006.

9 © 2008 Electric Power Research Institute, Inc. All rights reserved. Japanese Heat Pump Technology R&D New heat pump technologies emerging –Heat pump water heaters million in Japan by 2010 –Heat pump washer/dryer –6% of global CO2 reduction using Heat Pumps (IEA) Electric utilities sponsored R&D EPRI has initiated a large scale demonstration project on emerging heat pump technologies Heat Pump Water Heater Heat Pump Washer Dryer [1] International Energy Agency Heat Pump Centre,

10 © 2008 Electric Power Research Institute, Inc. All rights reserved. Annual Energy Consumption and Carbon Footprint Impact Benefits of 20 Mile Range PHEV

11 © 2008 Electric Power Research Institute, Inc. All rights reserved. Example: Expanded Scale of Energy Efficiency Single-Family Home Heat Pump Replaces Gas Furnace PHEV 20 Replaces Mid-Size Car Energy Efficiency Improvements

12 © 2008 Electric Power Research Institute, Inc. All rights reserved. Baseline: Energy Use & Carbon Footprint

13 © 2008 Electric Power Research Institute, Inc. All rights reserved. Deploying Traditional Energy Efficiency

14 © 2008 Electric Power Research Institute, Inc. All rights reserved. Deploying Heat Pump Technology

15 © 2008 Electric Power Research Institute, Inc. All rights reserved. Deploying 20 Mile PHEV

16 © 2008 Electric Power Research Institute, Inc. All rights reserved. Effects of Traditional Energy Efficiency, Heat Pump Heating & Cooling, Mid-Size PHEV, and Low Carbon Generation Opportunity for Expanding Scale of Energy Efficiency

17 © 2008 Electric Power Research Institute, Inc. All rights reserved. Need All Infrastructures to Evolve To Significantly Reduce Carbon Footprint Through Efficient Use of Energy Infrastructure Need For Expanded Scale of EE