Foundations for Efficiency: Industrial Energy Efficiency Program Structures in the U.S. and Canada

Abstract

Industrial energy efficiency programs at the state and provincial level in the U.S. and Canada have years of experience developing and supervising energy savings delivery systems under contract or regulatory frameworks using a variety of different models. Unfortunately, this wealth of experience is not broadly known. Drawing on the experience of a number of industrial energy efficiency programs in North America, this paper discusses several key elements of the different institutional models and some pros and cons associated with them. These elements include choices of: delivery institution, funding sources and management, target setting, contractual arrangements, and monitoring and verification processes. The objective is to highlight as clearly as possible the lessons learned in program design and implementation in key states and provinces. These findings are presented for the practical consideration of governments and utilities in their efforts to develop or upgrade their own industrial energy efficiency efforts.