-
Letter to the Region
Twenty-five years ago, the energy efficiency community in Idaho, Montana, Washington and Oregon created the Northwest Energy Efficiency Alliance (NEEA) based on a shared belief that together, the region could accomplish far more than it could alone. This past year has emphasized the importance of this unique, collaborative approach. Although the impacts of COVID-19 have reverberated throughout the country, the alliance has adapted to continue to pioneer the transformation of the Northwest’s energy market toward greater efficiency despite market disruptions and health challenges.
2020 marked a year of change that profoundly impacted the industry and energy efficiency in the region. Yet through this challenging and difficult year, the alliance remained committed to its purpose: to pool resources and share risks to transform the market for energy efficiency to the benefit of consumers in the Northwest.
2020 Portfolio Highlights:
-
Energy efficiency is a key pillar in Washington’s plan for a cleaner energy future. Not only does energy efficiency save money, it ensures a robust, resilient and equitable energy system. Thank you to the Northwest Energy Efficiency Alliance for serving as a guiding force for the region and helping to provide affordable energy-efficient products, services and practices to the Northwest and beyond.
-Jay Inslee, Governor of Washington
Success Stories
-
ENERGY STAR® Retail Products Platform
Flexible Strength in the Face of Uncertainty - Despite the pandemic’s overwhelming impact on the retail world, the ENERGY STAR Retail Products Platform's (ESRPP) strong partnerships and inherent flexibility helped the program grow stronger in 2020. In addition to accessing incredibly timely online sales data for the first time, ESRPP welcomed two new utility partners to the national, giving the Northwest increased scale and influence on consumer products market.
-
Water Heating
A Dual-Fuel Approach to Market Transformation - Recognized as a national leader in water-heating Market Transformation, the alliance has blazed the trail for any utility looking to use efficient water heaters to achieve energy efficiency or carbon reduction goals. And now, building on the relationships and lessons learned at the forefront of electric hybrid technology, the alliance is opening the door for gas heat pump water heaters to enter the market with considerable momentum.
-
Ductless Heat Pumps
Setting a Market Transformation Standard - For more than fifteen years, the Ductless Heat Pump (DHP) program has proven the flexibility and staying power of the alliance’s Market Transformation efforts. Thanks to an adaptive, explorative and collaborative effort, DHPs are expected to have a lasting foothold in the Northwest, with an opportunity to serve a wide variety of customers, including low-income and manufactured homes.
Impacts and Investments
2020 Energy Savings Results
-
2020 Co-Created Energy Savings
NEEA estimates that the alliance delivered almost 37 average megawatts (aMW) of Co-Created energy savings in 2020, exceeding its goal of 26.8 aMW by almost 30%. With 2020 marking the first year of NEEA's Cycle 6 Business Plan, most of those savings are the result of investments made during previous business cycles.
-
2020 Total Regional Natural Gas Savings
NEEA estimates that the alliance delivered .66 Million Therms (MM Therms) of Total Regional natural gas savings in 2020, exceeding its goal of .6 MM Therms by almost 10%.
The alliance’s natural gas portfolio is still in early development and several potential savings streams are not yet accounted for.
-
Co-Created Electric Energy Savings
For its Cycle 6 Business Plan (2020-2024), the alliance is estimating it will deliver between 115-176 average megawatts (aMW) of Co-Created electric energy savings, enough energy to power more than 85,000 Northwest homes each year.
Co-Created - or shared - energy savings include all savings above the baseline that occur in the market due to the combined efforts of NEEA and its partners.
1 aMW = enough energy to power about 730 Northwest homes per year
-
Total Regional Natural Gas Energy Savings
And, the alliance is estimating it will deliver between 6-13 Million (MM) Therms of Total Regional natural gas energy savings during its Cycle 6 Business Plan (2020-2024).
Total Regional Savings include all savings calculated above the pre-intervention market starting point due to the combined efforts of NEEA and its partners.
20 Year Levelized Cost:
Current Portfolio = .61 cents/kWh
20-year Electric Benefit-Cost Ratio*: 2.1
*Reflects the 20-year value of the regional investment in Market Transformation efforts. The alliance only advances a program into the market if it meets the minimum benefit-cost ratio threshold of 1.
2020 Regional Peak Demand Savings:
8.4 MW winter peak (current investments in market development)
2020 Avoided CO2 Emissions:
Electric - 214,000 tons
Natural Gas - 3,800
Additive Co-Created Savings (aMW): 1997–2020
Market Transformation is a long-term process that delivers permanent market change. Alliance activities during any one business cycle continue to deliver energy savings after the 5-year investment period has ended. This chart shows energy savings associated with the funding cycle as well as how savings continue to grow and/or contribute to regional savings goals well into the future.
Working together, the region has delivered more than 850 average megawatts (aMW) of Co-Created energy savings since 1997 – enough energy to power more than 620,000 Northwest homes each year.
2020 Investments
$21.8 Million
Market Development & Transformation
$4.1 Million
Analytics, Research & Evaluation
$5 Million
Business Administration
$1.6 Million
Stakeholder Engagement, Corporate Strategy & Communications
$2.6 Million
Natural Gas
$1.1 Million
End Use Load Research
Balance Sheet
As of December 31, 2020
| Assets | |
| Cash and cash equivalents | $1,512,136 |
| Short-term investments | $14,175,272 |
| Funder and other receivables | $461,845 |
| Prepaid expenses | $735,543 |
| Property and equipment | $1,711,900 |
| Total Assets | $18,596,696 |
| Liabilities and net assets | |
| Accounts payable and other liabilities | $4,893,640 |
| Advances from funders | $10,122,773 |
| Total liabilities | $15,016,413 |
| Net Assets | |
| Unrestricted | $2,368,783 |
| Temporarily restricted | $1,211,500 |
| Total Net Assets | $3,580,283 |
| Total Liabilities and Net Assets | $18,596,696 |
Statement of Activities
Year ending December 31, 2020
| Revenues | |
| Electric contributions | $29,775,981 |
| Natural Gas contributions | $3,355,251 |
| End Use Load Research Contributions | $1,840,213 |
| Special fund contributions | $2,703,330 |
| Interest and other income | $183,729 |
| Total Revenue | $37,858,504 |
| Expenses | |
| Compensation and benefits | $12,839,206 |
| General administration | $2,508,186 |
| Direct project costs | $20,832,841 |
| Total Expenses | $36,180,233 |
| Change in net assets | $1,678,271 |
NEEA Board of Directors
