Energy efficiency programs save ratepayers money – Arizona Capitol Times

Report on Arizona’s Energy Efficiency Initiatives and Alignment with Sustainable Development Goals

Introduction: Energy Efficiency as a Core Strategy for Sustainable Development

Energy efficiency represents a critical strategy for addressing economic affordability and advancing progress toward the United Nations Sustainable Development Goals (SDGs). In Arizona, upcoming decisions by the Arizona Corporation Commission regarding the state’s Energy Efficiency Resource Standard and the APS Demand-Side Management Plan present a significant opportunity to reinforce commitments to these global goals. This report analyzes the role of these initiatives in promoting affordable energy, sustainable infrastructure, and economic equity, directly aligning with several key SDGs.

Arizona’s Energy Efficiency Standard: Economic and Sustainability Impacts

The state’s existing Energy Efficiency Standard has yielded substantial benefits that directly support the achievement of multiple SDGs. An extension and expansion of this standard are crucial for continued progress.

Key Achievements and SDG Alignment:

• SDG 7 (Affordable and Clean Energy): The standard has resulted in cumulative peak demand savings of over 2,000 MWs, enhancing grid reliability and affordability for all consumers.
• SDG 9 (Industry, Innovation and Infrastructure): By reducing peak energy demand, the standard has obviated the need for costly capital expenditures on new power generation infrastructure, promoting a more resilient and sustainable energy system.
• SDG 1 (No Poverty) & SDG 10 (Reduced Inequalities): The standard has generated over $1.7 billion in net economic benefits, translating to lower utility bills for ratepayers. An Economic Impact Statement by Elliott D. Pollack & Company warns that discontinuing the standard would disproportionately affect low- and moderate-income households, potentially increasing energy-related financial burdens.
• SDG 11 (Sustainable Cities and Communities): The standard contributes to more sustainable urban and rural communities by ensuring access to affordable and reliable energy services, which are fundamental for economic and social well-being.

APS Demand-Side Management (DSM) Plan: A Pathway to SDG Achievement

The proposed Demand-Side Management (DSM) Plan from Arizona Public Service (APS) provides a practical framework for implementing energy efficiency measures. The plan’s approval is essential for providing consumers with tools to manage energy consumption and costs, thereby supporting key sustainability objectives.

Program Contributions to SDGs:

• SDG 7 (Affordable and Clean Energy): The plan includes programs such as smart thermostats and high-efficiency A/C units, which empower customers to reduce energy consumption and lower their electricity costs.
• SDG 11 (Sustainable Cities and Communities): These programs help mitigate strain on the electrical grid, particularly during peak demand, which is crucial for maintaining reliable energy services in a growing state.
• SDG 13 (Climate Action): By promoting reduced energy consumption, the DSM plan directly contributes to lowering greenhouse gas emissions associated with power generation.

The APS plan has been thoroughly vetted by stakeholders and confirmed as cost-effective by commission staff, ensuring its implementation will provide tangible benefits for all ratepayers while advancing Arizona’s sustainability profile.

Recommendations for the Arizona Corporation Commission

The Arizona Corporation Commission is positioned to make two critical decisions that will have long-term impacts on the state’s economic and environmental sustainability. To ensure continued progress toward the Sustainable Development Goals, the Commission should take the following actions:

1. Extend and Expand Arizona’s Energy Efficiency Standard: This action is necessary to maintain regulatory certainty, secure ongoing economic benefits for ratepayers, reduce the need for new infrastructure investments, and protect vulnerable households from rising energy costs, in alignment with SDGs 1, 7, 9, 10, and 11.
2. Approve the APS Demand-Side Management Plan: This approval will provide immediate and accessible energy-saving solutions to customers, offering financial relief and contributing to a more resilient and efficient energy grid, directly supporting SDGs 7, 11, and 13.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy

  The article’s central theme is energy efficiency, which is a cornerstone of SDG 7. It discusses programs designed to reduce electricity costs for consumers (“combat rising electricity costs,” “lower bills for ratepayers”), ensure grid reliability, and manage energy demand, all of which contribute to making energy more affordable and sustainable.

• SDG 8: Decent Work and Economic Growth

  The article connects energy efficiency initiatives to significant economic benefits. It explicitly mentions that these programs have resulted in “more than $1.7 billion in net economic benefits” and contribute to “job creation,” directly aligning with the goal of promoting sustained, inclusive, and sustainable economic growth.

• SDG 9: Industry, Innovation, and Infrastructure

  The discussion on reducing the need to build “capital-intensive power plants” and avoiding “additional infrastructure investment” by managing peak demand relates to building resilient and sustainable infrastructure. The promotion of new technologies like “smart thermostats and more efficient A/C units” also aligns with the innovation aspect of this goal.

• SDG 10: Reduced Inequalities

  The article highlights the social equity dimension of energy policy. It warns that without energy efficiency standards, “low-and moderate-income households – especially in rural areas could be disproportionately affected” by higher utility bills. This concern for vulnerable populations directly addresses the aim of reducing inequalities.

• SDG 16: Peace, Justice, and Strong Institutions

  The article emphasizes the importance of a stable regulatory framework (“regulatory certainty”) and transparent, participatory governance. It mentions that the Arizona Corporation Commission’s decisions are crucial and highlights the value of “meaningful opportunities for public participation” and stakeholder involvement in vetting utility plans, which are key components of effective and accountable institutions.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 7: Affordable and Clean Energy

  1. Target 7.1: Ensure universal access to affordable, reliable and modern energy services. The article’s focus on programs that “combat rising electricity costs” and provide “relief for all its ratepayers” directly supports the goal of energy affordability. The mention of contributing to the “capacity and reliability of the grid” aligns with ensuring reliable energy services.
  2. Target 7.3: By 2030, double the global rate of improvement in energy efficiency. The entire article advocates for extending and expanding “Arizona’s Energy Efficiency Standard” and approving the “APS Demand-Side Management Plan,” which are the primary mechanisms for improving energy efficiency discussed.

• SDG 8: Decent Work and Economic Growth

  1. Target 8.4: Improve progressively, through 2030, global resource efficiency in consumption and production. Energy efficiency is a direct measure of improving resource efficiency. The article’s promotion of saving energy through better technology and demand management is a practical application of this target.

• SDG 9: Industry, Innovation, and Infrastructure

  1. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure. By reducing peak demand, the energy efficiency programs help avoid “additional strain on an increasingly overstretched and expensive grid,” thus contributing to the grid’s resilience and sustainability.
  2. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency. The article’s mention of utility offerings like “smart thermostats and more efficient A/C units” is an example of upgrading technology and infrastructure to increase resource-use efficiency.

• SDG 10: Reduced Inequalities

  1. Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all… irrespective of economic or other status. The article’s concern that the absence of efficiency standards could “disproportionately affect” low- and moderate-income households implies that these programs are a tool for preventing increased economic inequality.

• SDG 16: Peace, Justice, and Strong Institutions

  1. Target 16.7: Ensure responsive, inclusive, participatory and representative decision-making at all levels. The article points to the process where APS’s plans have been “vetted by stakeholders” and highlights the importance of “meaningful opportunities for public participation,” which are hallmarks of inclusive decision-making.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• SDG 7: Affordable and Clean Energy

  1. Indicator for Target 7.3: The article explicitly states a key metric: “over 2,000 MWs in cumulative peak demand energy savings.” This is a direct indicator of energy efficiency improvements (related to Indicator 7.3.1: Energy intensity).
  2. Indicator for Target 7.1: The article implies progress can be measured by “lower bills for ratepayers.” Tracking average household energy expenditure as a percentage of income would be a relevant indicator of affordability.

• SDG 8: Decent Work and Economic Growth

  1. Indicator for Target 8.4: The article provides a clear economic metric: “more than $1.7 billion in net economic benefits.” This quantifies the economic value generated from resource efficiency. The mention of “job creation” is another direct indicator.

• SDG 9: Industry, Innovation, and Infrastructure

  1. Indicator for Target 9.1 & 9.4: An implied indicator is the amount of deferred or avoided capital expenditure on new power plants. The article states that efficiency has “reduced the need for costly expenditures on additional generation,” which can be quantified and tracked.

• SDG 10: Reduced Inequalities

  1. Indicator for Target 10.2: The article implies the need for an indicator that measures the energy burden on different income groups. An analysis of utility bill impacts on “low-and moderate-income households” versus higher-income households would serve as an indicator of whether inequality is being addressed or exacerbated.

• SDG 16: Peace, Justice, and Strong Institutions

  1. Indicator for Target 16.7: The existence of stakeholder vetting processes and public participation opportunities, as mentioned in the article, serves as a qualitative indicator. The number of public comments received or stakeholder meetings held during the review of the “APS Demand-Side Management Plan” could be a quantitative measure.

4. Summary Table of SDGs, Targets, and Indicators

Source: azcapitoltimes.com