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July & August 2011
IN FOCUS

John Williams of NYSERDA on Transforming Markets

"What we are trying to do with the Technology and Market Development program proposal is ensure that the spectrum of clean energy opportunities for New Yorkers is maintained over the longer term."
-John Williams, Director of Energy Analysis at NYSERDA

With New York in the midst of state energy planning, and beginning to look at forward activities in efficiency and clean energy policies and programs, Highlights was glad to catch up with John Williams, a man at the center of the action. As Director of Energy Analysis for the New York State Energy Research and Development Authority (NYSERDA), Williams is helping to guide the state into the next era of energy use and planning. Among other things, he heads the state's inter-agency working group that is putting together the 2013 New York State Energy Plan, as well as oversee the state's fuels data collection and reporting activities, energy emergency planning, energy price forecasting and systems modeling, and NYSERDA's energy efficiency and renewable energy program evaluation and analysis.

But one of the things Williams is most excited about is NYSERDA's proposal for a five year Operating Plan for Technology and Market Development, a plan to harness the electric system benefit charge to continually ratchet up efficiency markets and keep New York at the leading edge of the clean energy economy. This proposal is currently before the New York State Public Service Commission for consideration.

Transforming Markets
"There are a lot of near-term opportunities, and the Public Service Commission has structured some great programs to effectively capture those," said Williams. "What NYSERDA is proposing with the Technology and Market Development program proposal is to support the spectrum of clean energy opportunities for New Yorkers over the longer term. That's why there is a focus on the technology development and business development - both of which we feel are essential for creating healthy, vibrant and sustained markets for energy efficiency and clean energy," Williams added.

"We have robust resource acquisition that's designed to deliver real market pull by providing incentives to draw customers into programs," said Williams of the tried-and-true measures including rebates for efficiency upgrades. "Part of what market transformation can do is provide the market push to various actors in the supply chain so they can realize their own value in participating in a market for energy efficiency products and services."

"Our experience in market transformation has realized that," said Williams of New York. "We look at some of our program activities - market push combined with pull has resulted in higher levels of energy efficiency penetration than if we were looking at isolated market interventions. When you look at the supply chain, it's not solely the services provided - it's also distribution of consumer equipment, training retailers and educating the market. What NYSERDA does uniquely is provide advanced technology support that helps to move new products and technologies into the New York market place."

Building the Pipeline
Williams talks about the elements in the proposed Technology and Market Development plan as feeders to the workhorses of the Energy Efficiency Portfolio Standard and Renewable Portfolio Standard that are designed to deliver on aggressive efficiency and clean energy targets. "Over time, the potential that the resource acquisition programs are designed to capture may become more expensive and more difficult to reach," noted Williams. "What the feeder programs are designed to do is to accelerate the introduction of new technologies and new services so we can realize the resource acquisition goals and have more options to get to deeper levels of energy efficiency in the economy."

Along the Energy Innovation Chain
Williams likes to refer to what he calls the "energy innovation chain," designed to illustrate the various components that it takes to create a self-sustaining market for clean energy technologies. "It starts with ideas and research, then translates into technology development and demonstration," he explained. "Businesses and marketplace support must then be provided to ready the market and commercialize products and services on an accelerated basis. We then look at the market adoption and expansion phase (resource acquisition) to help move consumers toward adopting these products and services as standard practices."

"We've raised the bar on appliances and building codes. That's the kind of cycle we like to see happen. We should always be looking for the next new opportunity that can provide consumer benefit," said Williams.

Sustained Government Commitment
Economic downturn and changing political winds can challenge state governments to maintain the policies and funding that are critical to market certainty and long-term program success. Williams indicated that the New York recipe includes across the board buy-in to efficiency as a means to reach public policy goals as well as consistent government support.

"I think that the state's commitment to goals such as 15 by 15 (percent efficiency by 2015) and 45 by 15 (renewables and efficiency combined) is in part based on broader energy, environmental and economic development priorities that we have seen maintained in New York," commented Williams.

"We have a robust state energy planning process that is an interdisciplinary process which includes the Department of Environmental Conservation, Department of Public Service, Department of Transportation - to name just 3 of the engaged agencies. This approach helps us to identify where the New York benefits rest. As policies are developed across multiple disciplines, we wind up cultivating a lot of acceptance that can be maintained over time."

"We've learned through our 2009 State Energy Plan and we've studied the economic effect of broad-scale efficiency on electricity prices generally. The 15 by 15 efficiency target helps to pull down the wholesale price of energy across the board. So all consumers benefit from reduced electricity prices as a result of the energy efficiency program offerings in the state.