Solutions Spotlight: A Q&A with the National Association of Energy Service Companies | Article

At the forefront of energy efficiency retrofits, the National Association of Energy Service Companies (NAESCO), a sponsor of EESI’s 2021 Congressional Clean Energy EXPO and Policy Forum, is an energy efficiency industry advocacy and accreditation organization representing energy service companies (ESCOs) and other energy efficiency industry firms delivering cost-effective retrofits nationwide.

Energy efficiency retrofits can provide a number of benefits, including saving people money on their energy bills and reducing emissions. But an added benefit of these retrofits is increased resilience against climate and security threats. Timothy Unruh, Executive Director of NAESCO, sat down with EESI to discuss how energy efficiency and resilience measures can work hand-in-hand to provide maximum benefits and support to communities.

EESI: Why are energy efficiency retrofits so critical as we move forward in addressing climate change?

Unruh: What we know, from an ACEEE study, is that energy efficiency can provide roughly half of the carbon emissions reductions needed to meet the nation's mid-century climate goals. And what we know about energy efficiency solutions is that they are readily available and cost-effective, especially since many of these solutions effectively pay for themselves. While renewable power is certainly an important piece of the overall portfolio of energy-system decarbonization solutions, expanding renewable energy may take a little longer and additional funding. We should engage the energy efficiency available today to reduce carbon and other greenhouse gas emissions without having to install and integrate more renewable generating capacity than we need.

EESI: How can energy efficiency retrofits help move us towards a more equitable future?

Unruh: Energy efficiency retrofits have a dual justice ability. On one side, new efficiency measures are often installed by local contractors, so you can employ people who may come from disadvantaged communities.

The other side of energy efficiency that I think really provides an aspect of justice is how it materially improves buildings. When we implement energy efficiency, we always expect, and actually experience, that the building performs better after projects are completed. If it is a lighting retrofit, these lighting installations have higher luminance, so it creates a better environment. If efficiency improvements are made for heating, ventilation, or air conditioning, it also improves the indoor air quality of the building.

Often, some of the most disadvantaged communities have inefficient buildings because of chronic underfunding. Energy efficiency can make immediate improvements to those buildings so that whether it is a school, a government building, or a community center, they can be better places for people to live, work, and play.

EESI: You discussed on an EXPO panel the link between energy efficiency and resilience. How often do companies or contractors think about bringing those ideas together, or how can this work be incentivized to happen more?

Unruh: We think that resilience tends to be a part of every project, whether it is resilience from a cybersecurity or power protection perspective, or protecting buildings from storms. An energy efficiency project is a broad effort, encompassing doors and windows, weather stripping, HVAC control systems, backup power systems, microgrids, and more. I think resilience really falls into every project.

What I think we have to recognize is that resilience is really a metric of building performance. When building lighting systems and new exterior lights are added, we make safer buildings, and people can go to these buildings for shelter, safety, and protection. And we do not often think of that as resilience, but it provides a way for the community to survive. Buildings that operate properly are those with a varied set of functions that guarantee the performance of conventional operations under both normal conditions and under infrequent and often unanticipated disruptions. Put another way, buildings that operate properly are resilient, flexible systems, and energy efficiency upgrades are often about shoring up that flexibility component.

EESI: How can we bring resilience into the forefront of people’s minds to purposefully integrate resilience into these projects?

Unruh: During project development, we advocate building owners sit down with ESCOs to discuss a more integrated design process. What that means is discussing how a building might be used in the future. This process may not perfectly predict the future, but it helps to think about the possibilities of how buildings will be used.

It is hard for me to say ‘this building needs this type of equipment to make it resilient against this’ because every case is unique. When I worked for the federal government, the General Services Administration went through a process called the deep energy retrofit phase. And in that process, we found that when the ESCO and the building owner sat down and had frank, open conversations about what they wanted to do with the building and what the opportunities were, we saw projects almost double the operational energy and maintenance cost savings.

EESI: Where do you think this work will be moving to in the future? What does NAESCO see as important issues on the horizon?

Unruh: I think that there are a couple of industry trends we are watching. The predominant project delivery mechanism - Energy Savings Performance Contracts (ESPCs) - seems to be in flux. We are seeing Energy-as-a-Service growing in interest, which is a different type of savings-based delivery model. It is hard to see that there is a consistent approach to developing these types of projects. Each project tends to be unique, but I think that is one option we see coming in the future. I also think new technologies, such as grid-interactive efficient buildings, can provide power system stability and operational flexibility for building assets. And I also think renewables are going to become even less expensive and proliferate even more at local buildings and grid locations.

The interview was edited and condensed for clarity.

Author: Emma Johnson