Strategic Energy Management Program Persistence and Cost Effectiveness An Analysis of the SEM Program Landscape
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Strategic Energy Management Program Persistence and Cost Effectiveness An Analysis of the SEM Program Landscape

Abstract

This study examines the relationship between strategic energy management (SEM) programs and their persistence and cost effectiveness, with analysis based on interview data from 24 SEM program administrators, SEM program evaluations, and other reports. The 80 interview questions focused on the topics of program design, energy savings, energy savings persistence, cost effectiveness, and customer SEM persistence. The generosity of interview respondents provided a wealth of data, resulting in a report of sufficient length to warrant inclusion of this brief guide of the report structure. The major sections are listed below with brief descriptions. Individual sections of this report are mainly stand-alone and do not require reading of other sections. As a result, there is some duplication between sections, but with differing levels of detail. Executive Summary: Presents three key conclusions of this work with a short description of potential actions to advance the understanding of each key finding. Brief Observations: Lists a large number of bulleted observations resulting from this research, arranged by the five major topic areas included in the interviews. Analysis details are provided in the Analysis of Interview Results section. Foundations for this Research: Provides an overview of SEM, SEM frameworks, SEM programs, the topics of persistence and cost effectiveness, and the focus of this research. Methodology: Details the approach and strategy of this research, providing background information relevant to the formulation of interview questions and the identification of which SEM programs to interview. Observations from Compiled Evaluations and Other Reports: Reports observations from the collection and analysis of program evaluations, annual reports, utility planning documents, and SEM-related white papers. This section, presented in bullet form, highlights challenges in data collection and ultimately a comparison of program practices as they pertain to persistence and cost effectiveness. Analysis of Interview Results: Presents detailed analysis of responses from SEM program administrators, arranged by the five major categories examined: program design, energy savings, energy savings persistence, cost effectiveness, and customer SEM persistence. Interview questions are generally grouped together into subsections when it makes sense to examine them together. SEM Programs Challenge Traditional Cost-Effectiveness Metrics: Details an analysis based on five key factors showing that applying traditional cost-effectiveness metrics to SEM programs is not straightforward. This invites the opportunity to consider whether traditional cost-effectiveness metrics are applicable to SEM programs, either individually or at large. Resolution of Research Hypotheses: Tabulates a set of hypotheses that were developed to address the fundamental nature of the research at hand. Analysis of responses to multiple questions informs an understanding of each hypothesis and can be used to better understand the SEM program environment at large.

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