Evaluation of the Benefits to California Electric Ratepayers from the Public Interest Energy Research Program, 1998-2003

Publication Number: CEC-500-2004-074
Publication Date: September 2004

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Executive Summary

Results from 15 new research, development and demonstration (RD&D) projects were placed into commercial use during 2003 as a result of the PIER RD&D program. These products join 18 products placed into commercial use prior to 2003 that continue to create benefits for California electric ratepayers. Benefits to California electric ratepayers were estimated based on projected applications of the products through 2008. The benefits are projected to be between $246 and $645 million, the range resulting from uncertainties in projected market success as well as in details of how the products will be used. From the start of the PIER program in 1997 through calendar year 2003, the total PIER program expenditures (contractor invoices paid, staff salaries, fringe benefits, overhead, supplies, etc) were about $200 million. The ratio of the projected benefits to costs is between 1.2 to 1 and 3.2 to 1. The projected benefits are understated by as much as several hundred millions of dollars because available data were inadequate to develop credible estimates of three new items, the Advanced Variable Air Volume (VAV) System Design Guide, the Small Commercial Heating, Ventilating, and Air Conditioning System Design Guide, and the Monitoring Applications Based on Synchronized Phasor Measurements.

The 33 commercially successful products resulting from PIER RD&D through the end of 2003 are listed in Table 1. Items commercialized during 2003 are marked with an asterisk.

Table 1 PIER RD&D Products Commercialized Through 2003

Residential and Commercial Buildings End-Use Energy Efficiency
Berkeley Lamp
Commercial Kitchen Ventilation
Particulate Emissions Measurement for Unhooded Restaurant Appliances
Revised Residential Framing Factors
HVAC Duct Sealing Technique for Small Commercial Buildings
Allowable Placement of Roof/Ceiling Insulation in Nonresidential Buildings
Requirements for Skylight Use in Low-Rise Residential and Commercial Buildings
Real-Time Energy Management and Control Systems
Cal-Arch Energy Benchmarking Tool*
Hotel Bathroom Motion Sensor Night Light*
Bi-level Stairwell Fixture*
Advanced Variable Air Volume (VAV) System Design Guide*
Small Commercial Heating, Ventilating, and Air Conditioning System Design Guide*
Design Guidelines for Skylights with Suspended Ceilings*
Industrial/Agricultural/Water End-Use Energy Efficiency
Cast Metal Industry Electricity Consumption Study
Selective Tartrate Removal System*
Neutral Line Filter for Harmonics Reduction*
Industrial Compressed Air System Energy Use Benchmarking Methodology*
Renewable Energy Technologies
NOx Control in Biomass-Fueled Boilers with Natural Gas Cofiring
PowerGuard® Solar PV System for Flat Roofs
Clean Power Estimator*
PV Mounting Approach for Flat Roofs*
Solar Power Integrated Roof Tile*
California Wind Energy Collaborative*
California Wind Energy Resource Mapping*
Environmentally-Preferred Advanced Generation
Catalytica Xonon® Cool CombustionTM Catalytic Burner
Energy-Related Environmental Research
Low NOx FIR Burner for Gas Boiler
Energy Systems Integration
DG Interconnect Hardware
Real-Time Monitoring and Dynamic Rating System for Overhead Transmission Lines
Interconnection Standards for Small Distributed Generators
Improved Substation Seismic Design
Required Utility Buildings Seismic Vulnerability
Transmission Grid Monitoring Applications Based on Synchronized Phasor Measurements*

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Abstract

Results from 15 research, development and demonstration (RD&D) projects were placed into commercial use during 2003 as a result of the PIER RD&D program. These products join eighteen products placed into commercial use prior to 2003 that continue to create benefits for California electric ratepayers. Benefits to California electric ratepayers were estimated based on projected applications of the products through 2008. The benefits are projected to be between $264 and $676 million, the range resulting from uncertainties in projected market success as well as in details of how the products will be used. From the start of the PIER program in 1997 through calendar year 2003, the total PIER program expenditures (contractor invoices paid, staff salaries, fringe benefits, overhead, supplies, etc) were about $200 million. The ratio of the projected benefits from PIER successes through 2003 to the costs through 2003 is between 1.3 : 1 and 3.4 : 1. We believe that the projected benefits are understated because available data were inadequate to develop credible estimates of three new items, the Advanced Variable Air Volume (VAV) System Design Guide, the Small Commercial Heating, Ventilating, and Air Conditioning System Design Guide, and the Monitoring Applications Based on Synchronized Phasor Measurements.

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Table of Contents

Abstract

Executive Summary

1 Introduction

2.0 Products Commercialized Between 1998 and 2002—An Update

3.0 Products Commercialized in 2003

4.0 Quantitative Benefits Results

5.0 Additional Products Nearing Commercialization in 2004

6.0 Summary and Conclusions

Appendices

Appendix A: Description of Products Commercialized Prior to 2003

Appendix B: Approach and methodology

List of Tables

Table 1 PIER RD&D Products Commercialized Through 2003

Table 2 Benefits of PIER RD&D Products Commercialized Through 2003

Table 3 Products in Advanced Stages of Commercialization