Cambridge Energy Initiative Charrette

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• About
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• Topics

  • Innovation Challenge Goals
  • How to Achieve Cambridge’s Energy Reduction Goals
  • Using Energy Service Companies to Meet Reduction Goals
  • Additional Measures to Reduce Peak Energy and Fossil Fuel Consumption
  • Combined Solutions Total Potential
  • Increasing Efficiency Potential through Utility Programs and Policy
  • Transportation Fuel Use Reduction Strategies
  • Next Steps
  • Appendix A: Charrette Participants
  • Appendix B: Energy Supply and Use in Cambridge
  • Appendix C: Utility and Policy Ideas from the Charrette
  • Appendix D: Boston Innovation Challenge Breakout Group Ideas

• Co-sponsoring Organizations

  • Barr Foundation
  • Cambridge Energy Alliance
  • Harvard University
  • Henry P. Kendall Foundation
  • M.I.T.
  • Rocky Mountain Institute

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Using Energy Service Companies to Meet Reduction Goals

Energy service companies (ESCOs) develop, install and arrange financing for projects designed to improve energy efficiency and maintenance costs for facilities over a seven to twenty year time period.  Using ESCOs is a core part of the solution to meeting the City of Cambridge’s energy reduction goals, and has been included in the Cambridge Energy Alliance (CEA) plans to meet the City goals.  RMI conducted analysis on the potential impact of efficiency measures in the existing residential and commercial sectors.  The other sectors (new construction and institutions) could also be implemented by ESCOs, however, RMI has chosen to look at those sectors as separate opportunities that are discussed later in the report.

The energy reduction measures and corresponding potential energy savings that RMI thought ESCOs would implement are shown in Table 2 and Table 3.  The measures that are included only impact peak demand; thus working towards the 50 MW reduction goal.  These estimated savings are based on the following assumptions:

• In the residential sector, a seven percent annual penetration rate is assumed,
• In the residential sector, seven percent of the housing stock equates to approximately 3,100 units,
• In the commercial sector, a seven percent annual penetration rate is assumed, and
• In the commercial sector, seven percent of the commercial stock equates to approximately 2,730,000 square feet.

In addition to the energy reduction measures quantified below, additional measures that we have an energy reduction potential are listed below.  The City of Cambridge and the CEA should consider the use of these energy reduction measures as well.  These measures are:

• Low-flow fixture swap outs
• Storm windows/sealants
• Rigid insulation/exterior siding retrofits
• Electric/tankless water heater
• Water heater blankets
• Spray foam insulation
• Variable speed drives

Table 2. Annual Potential Savings from Existing Residential Sector Retrofits

Energy Reduction Measure	Megawatt peak reduction (MW)
Metering/Education	0.35
Energy Star appliance replacement	0.17
Incandescent to CFL switch out	0.13
Envelope upgrades	0.10
High efficiency central AC units	0.12
High efficiency window AC units	0.22
Total annual reduction	1.1

Table 3. Annual Potential Savings from Existing Commercial Sector Retrofits

Energy Reduction Measure	Megawatt peak reduction (MW)
Dimmable switch/occupancy sensors	0.27
T5 / CFL switch out	1.1
High efficiency central AC units	1.0
Total annual reduction	2.4

Using these assumptions, RMI analysis indicates that if the City of Cambridge uses a traditional ESCO model in the existing residential and commercial buildings, there is the potential for approximately 3.44 MW peak load reduction, as shown in Table 4.  Over five years, a seven percent annual penetration rate would result in 17.2 MW reduction, which is 34 percent of the 50 MW goal.  For illustrative purposes, if a one hundred percent annual penetration rate were used in both existing and commercial buildings, the peak energy reduction could almost be met in just one year just using ESCO implemented measures.

Table 4. Annual ESCO Peak MW reduction

ESCO- only
Existing residential and commercial sector	Annual penetration rate	Annual peak MW reduction potential	Five-year peak MW reduction potential
	7%	3.4	17
	20%	9.8	49
	100%	49	49

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