Beneficial Electrification: Not Just Another Buzzword
Beneficial or strategic electrification has been a hot topic in the energy policy world for over half a decade, since electrifying energy end uses is recognized as a key decarbonization path. But in 2018, the level of interest has hit new highs, and electrification now permeates everything from policy discussions in California to program development efforts at rural electric cooperatives. A growing number of conferences and forums have now dedicated themselves solely to this topic. Vox has even gone so far as to reduce our climate change strategy down two basic steps: (1) Clean up electricity and (2) Electrify everything.
Is the hype real? There’s good reason to believe so. Electrification that is truly beneficial (and not merely a convenient way to build load) really can benefit a broad array of stakeholders. Consumers benefit through lower utility bills and the elimination of combustion hazards in their homes. Utilities can build sales. Grid operators can leverage smart controls to provide grid services through certain electric loads. Finally, society at large benefits from lower carbon emissions.
What is beneficial?
To encourage electrification that is truly beneficial, it is incumbent on the policy, regulatory, and market transformation communities to promote the right opportunities, in the right locations, at the right times. It cannot simply be a green-washed attempt to sell more kilowatt-hours. To capture the multiple benefits of electrification and achieve long-term market success, it must work for consumers, the grid, and the environment.
Ultimately this means establishing a common definition of what it means to be beneficial and principles for applying it. Our friends at the Regulatory Assistance Project (RAP) have done just this through their white paper, “Beneficial Electrification: Ensuring Electrification in the Public Interest,” which provides a concise definition for beneficial electrification as well as guidance to regulators on how to advance the concept. RAP defines beneficial electrification based on three criteria. It must: (1) save consumers money over the long run, (2) enable better grid management, and (3) reduce negative environmental impacts. These criteria, coupled with RAP’s six electrification principles, provide a solid foundation for pursuing electrification that benefits all parties.
Going beyond “follow the money”
Even if we ensure the integrity of beneficial electrification, it still requires promotion. The climate crisis cannot wait for market forces alone to decarbonize buildings, transportation, and industry. Half of the challenge lies in identifying the right opportunities from a technical and economic standpoint. (For more on this, see two recent studies from Rocky Mountain Institute and the American Council for an Energy Efficient Economy [ACEEE]). The other half lies in promoting those opportunities effectively and to the right consumers. The energy efficiency industry often promotes savings opportunities using a fairly simple two-part formula:
- Go green, it’s good for your wallet!
- Go green, it’s good for the planet!
Smart thermostats an efficiency success story partly propelled by non-energy benefits that provide superior performance over incumbent products.
No doubt the same type of language will be used to promote beneficial electrification as well. But can we do better?
Consumers do care about saving money and making environmentally responsible purchasing decisions, but myriad other factors influence a purchasing decision, particularly quality. Some of the most wildly successful energy efficient products could simply be viewed as superior products that happen to be energy efficient. Smart thermostats provide a dramatically more intuitive, attractive, and engaging user interface as well as connected convenience. They managed to bring design chic to a previously forgotten piece of equipment and have succeeded where programmable thermostats largely failed.
Focusing on non-energy benefits
For beneficial electrification to accelerate, we must focus on these non-energy benefits and ensure superior electric-powered alternatives. The benefits vary by end use and application, but some common categories include:
- Health and safety – by eliminating the combustion of fossil fuels in enclosed spaces, we eliminate many of the risks posed by exhaust, mainly the buildup of flue gases like carbon monoxide. This is a strong advantage when electrifying water and space heating.
- Noise – internal combustion is a loud process. Depending on the environment, quiet electric motors may have a strong advantage. Would you rather work in a warehouse that uses propane-fuel forklifts or electric ones?
- Air quality – electrification can be particularly beneficial to outdoor air quality when it displaces a large number of inefficient, fossil fuel-powered engines. For example, natural gas engines used to operate compressors in many oil and gas fields can “slip” a significant amount of methane through the engine, resulting in poor air quality. Electric compressors have been used to address air quality problems, particularly in EPA non-attainment regions.
- Durability and maintenance – electric motors have fewer points of failure and require less frequent maintenance than their internal combustion counterparts.
Consumers, commercial building operators, and industry need to be aware of these benefits (and traditional energy-environmental savings) to further build momentum for beneficial electrification.
Join us!
Join us this summer at the following beneficial electrification and energy efficiency events!
- Community Storage Initiative Forum to Discussion Beneficial Electrification – July 17-18, 2018, Arlington, VA
See us at “Co-op Successes and Lessons Learned” panel - ACEEE Summer Study on Energy Efficiency in Buildings – August 13-17, 2018, Asilomar, CA
- EPRI Electrification 2018 – August 20-23, 2018, Long Beach, CA
See us at “Session B4: Strategies for Industrial Customer Engagement” panel