Increasing Energy Productivity through Strategic Energy Management (SEM)

In Massachusetts, meeting the goals in the 2016-2018 three year plan and beyond will require savings from new tools and methods. The use of energy productivity metrics to measure changes in energy intensity for a variable, dynamic process is not a common method in Massachusetts. Strategic Energy Management programs (SEM) offer customers a comprehensive approach to energy management to improve energy productivity. This memo outlines the practices of Strategic Energy Management that could be adopted or expanded in Massachusetts (MA) to increase energy productivity, engage with Commercial and Industrial (C&I) customers more comprehensively, and contribute to the success of the energy efficiency programs.

SEM is a customer engagement approach where Program Administrators (PA) work closely with customers to identify both operational changes that can save energy as well as traditional equipment retrofit energy efficiency projects. This is good model for working with large energy intensive customers either individually or as a group, or cohort, of up to 10 customers. SEM programs in other states have provided a basis of knowledge that the Massachusetts PAs are researching to determine how SEM program offerings can complement current customer engagement strategies. SEM activities include the identification and execution of capital projects, retrocommissioning, procurement, and behavior modification through employee engagement. Savings are calculated by using regression analysis models as a counterfactual baseline that is compared to actual customer production and energy use. Based on the identified market in Massachusetts and on the performance of SEM programs in other regions and states, SEM programs have the potential to save over 46 annual GWh and 170 lifetime GWh after five years of implementation, which is 5.7% and 1.8% of the C&I 2018 annual and lifetime goals respectively.

Click here to read the full memo, “Increasing Energy Productivity through Strategic Energy Management (SEM).”