Excerpts from Gov. Dannel P. Malloy”™s remarks June 14 to the Northeast Energy Efficiency Partnerships”™ annual summit in Stamford.
“We are focused on developing new sources of clean, renewable energy ”“ and getting it in place at the right price. Our programs are designed to encourage renewable projects ”“ such as solar, wind, fuel cells, geothermal, hydro and others ”“ at prices that move closer to parity with the grid.
Our programs rely on reverse auctions where people bid for long-term contracts with our electric utilities ”“ and the lowest price wins the day. Through one of our programs a few months back, we awarded contracts for commercial solar at a price that was one of the lowest in the nation ”“ a 20-year average cost of 22.2 cents per kilowatt hour.
We are now rolling out another initiative which will award long-term power contracts for low and zero emissions energy projects. More than 200 people turned out for a bidders conference last month to learn more about how they can participate.
When the bids for this program are released, I think they will show once again that the rules of the marketplace apply to even renewable energy ”“ and that competitive pressures will drive prices down.
Our strategy in Connecticut is to unleash the power of private capital. We want to use just enough ratepayer and taxpayer resources to leverage financing for projects that the marketplace is determining are likely to succeed.
We want to trigger and support a technology race to see who can get to market with the best renewable projects at the best prices.
Central to our approach is recognizing the proper and effective role for government. Government does not have the resources to finance the new energy future or the expertise to pick winners and losers when it comes to technology. That is the role of private enterprise.
But there is one exception to this rule. There is one sure ”˜winner”™ government can pick. And that winner ”“ as all of you know ”“ is efficiency.
That”™s because the best and cheapest kilowatt of power is the one you don”™t use.
We know that investments in energy efficiency bring down the cost of operating the grid by reducing peak demand. We know that investments in energy efficiency can ease the pain for homeowners by lowering electric bills. And we know that investments in energy efficiency can bring down costs for business and make our states more competitive.
To steal a phrase from Amory Lovins of the Rocky Mountain Institute, we need to think in ”˜negawatts”™ ”“ the amount of power saved through increased efficiency and reduced consumption.
I know I am at a NEEP meeting so I am preaching to the choir. But I am here to tell you today that dollar for dollar, energy efficiency is still the best strategy ”“ way better than ”˜drill, baby, drill.”™
That”™s why Connecticut is firmly committed to energy efficiency and that”™s why our state is preparing to double down on efficiency with an increased investment ”¦
(The Connecticut Department of Energy and Environmental Protection) is recommending an increase in the budget for efficiency programs from $105 million to $158 million this year. This is funding for programs overseen by Connecticut”™s Energy Efficiency Board that benefit everyone ”“ homeowners and businesses ”“ by helping them undertake and finance a wide variety of efficiency measures.
To achieve this level of funding, DEEP will ask regulators at the Public Utilities Regulatory Authority for an incremental increase in the charge for efficiency programs on electric bills. This would bring the charge for efficiency to just under seven-tenths of a cent per kilowatt hour.
But the rapidly declining generation charge means that total electric bills will continue to fall. And, those who take advantage of our efficiency programs will realize savings that are much greater than this rate adjustment.
The key is for homeowners and businesses to join us on the efficiency journey to pay less in actual dollars for the power you use. Those who step up on efficiency will see significant drops in their electric bills and energy spending more generally.
Our target with the expanded efficiency program is to reduce Connecticut”™s overall energy consumption by 2.1 percent a year. This would save electricity customers ”“ after accounting for the cost of efficiency programs ”“ a net of $534 million per year.
And keep in mind that once you complete an efficiency step it keeps saving you money for 12 years on average. So the sooner you invest, the sooner those savings start piling up.”
