CHARACTERISTICS

The IPCC estimates that by 2010, residential buildings will account for approximately 60% of energy use in buildings, regardless of the country. Therefore, reducing energy use in residential buildings will have a significant impact on future GHG emissions. By reducing (or avoiding) energy and electricity use, residential DSM programs will avoid the associated emission of greenhouse gases that would have otherwise been produced.

Residential DSM activities encompass a broad range of utility/customer interactions. Activities typically involve energy conservation, or "load shaping"/"load shifting" methods to reduce peak demand requirements by encouraging 1) the installation of energy-efficient equipment, or 2) voluntary reduction in consumption by means of behavioral adjustments.

SIZE:
Scaleable to any size residential building.

FEATURES:
Residential DSM programs are primarily directed at: 1) improving energy efficiency of customer appliances (heating, cooling and lighting); 2) improving energy efficiency of new and existing construction (through weatherization and design); and 3) managing residential load (home automation systems, rate structures that encourage off-peak electricity consumption, etc.).

COST:
Varies with program. Can be minimal (load shifting) or can involve installation of new computer equipment, etc. that may require significant upfront costs (although these costs can be recovered/saved over the lifetime of the equipment).

CURRENT USAGE:
Many OECD countries have achieved considerable energy savings through DSM programs. Non-OECD countries with significant DSM programs underway include Brazil, Pakistan, Thailand, Mexico, Jamaica and the Philippines.

POTENTIAL USAGE:
One estimate is that DSM can reduce worldwide energy demand 3-7% by the year 2010 and 5-6% by the year 2050. Conservation programs are applicable in every country. Implementation is limited only by willingness of utilities to engage in programs.

ISSUES ASSOCIATED WITH IMPLEMENTING ACTION

• A lack of uniformity in residential building energy codes and retail energy efficiency standards contributes to the difficulty of producing energy-efficient residences and technologies.
• Inadequate information on costs and benefits of residential DSM activities is available, which contributes to the lack of familiarity and information on the installation of energy-efficient technologies.
• There is a lack of capital for customer purchase of new, high-efficiency equipment. Incentives from utilities, including financing, can reduce the cost of energy-efficient equipment and encourage participation in load management and conservation programs. Utilities can increase the direct installation of cost-effective conservation measures by targeting applications where customers lack sufficient motivation and/or resources.
• There is no real-time pricing for residential customers.

CLIMATE CHANGE IMPACT

EMISSION EFFECT:
    

CONDITIONS FOR EMISSIONS MITIGATION:

• The level of GHG emissions decreased or avoided will depend on the technologies used and the generation mix before and after the energy efficiency program.¹ For example, improving the efficiency of refrigerators–or other appliances that operate continuously–would result in larger energy savings than would efficiency improvements in peak technologies, such as air conditioning units. However, if baseload power is provided by a clean source (e.g., hydro) and peak power by a fossil-fuel powered source, then improving the efficiency of the peak appliance would have a greater effect on emissions.
• The greatest energy and carbon savings can be achieved in lighting, space conditioning, water heating, and miscellaneous electricity usage.

EMISSION ESTIMATE:
Varies according to the change in electricity demand before/after implementation of the DSM program.²

COST-EFFECTIVENESS:
Varies according to the administrative or investment costs required. Some investments are cost-effective regardless of the energy savings achieved.

SECONDARY EFFECTS:
Varies according to the decrease in electricity demanded. For every kWh of fossil fuel power generation avoided, the associated emissions of air pollutants are also avoided.

RESOURCES

• The U.S. Department of Energy has sponsored a variety of residential DSM programs including:
  1. The Cool Communities Program, develops community partnerships to plant trees and increase the use of highly reflective exterior surfaces on buildings and roads in order to reduce heating and cooling costs, and improve the environment.
  2. The National Earth Comfort Program, an industry/government partnership to increase the geothermal heat pump market from 40,000 units/year to 400,000 units/year.
  3. E-Seal, a national initiative to promote energy efficiency and environmental awareness in both new construction and retrofit home programs.
  4. The Office of Building Technology hosts a website, containing links to technical information, case studies, and other background information promoting residential energy efficiency at http://www.eren.doe.gov/buildings/.
• The U.S. Environmental Protection Agency has also sponsored several residential DSM initiatives. These include:
  1. Energy Star Programs to encourage the production and use of energy-efficient equipment. http://www.epa.gov/energystar/.
  2. Green Lights, whose more than 1,650 participants have invested in efficient lighting. Those involved have reduced their lighting electricity consumption by an average of 47%, saving approximately $90 million.
• Power$mart, a brochure published by the Alliance to Save Energy, identifies a range of residential DSM actions that home-owners can take to conserve energy and use energy-efficiently. http://www.ase.org.
• ACEEE produces the Consumer Guide to Home Energy Savings, a directory of the most efficient products available.

CONTACTS

Alliance to Save Energy
Bill Prindle
Washington, DC
Tel: (202) 530-2214
Fax: (202) 331-9588
bprindle@ase.org
http://www.ase.org

American Council for an Energy-Efficient Economy
Washington, DC
Tel: (202) 429-8873
aceee@ix.netcom.com
http://solstice.crest.org/efficiency/aceee

Energy-Efficient Building Association
Silver Spring, Maryland
Tel: (301) 589-2500
Fax: (301) 588-0854
info@eeba.org
http://www.eeba.org

International Institute for Energy Conservation (IIEC)
Washington, DC
Tel: (202) 842-3388
Fax: (202) 842-1565
iiec@iiec.org
http://www.iiec.org/

U.S. Department of Energy
Diane Pirkey
Manager of DSM Programs
Washington, DC
Tel: (202) 586-9839
Fax: (202) 586-1640
diane.pirkey@ee.doe.gov

U.S. Environmental Protection Agency
Atmospheric Pollution
Prevention Division
Washington, DC
Tel: (202) 564-9190
Fax: (202) 564-9569