Equal Pay for Equal Work: Treating Energy Efficiency Fairly in Wholesale Capacity Markets

With an expensive push underway to build large power plants and transmission to meet growing electric demand, energy efficiency is gaining new importance. Creating more negawatts (energy reduction) reduces the need to build new energy infrastructure, saving everyone a lot of money.

Despite its benefits, energy efficiency has always been a “little engine that could” technology trying to overcome market obstacles. Now it faces problems collecting fair compensation in wholesale markets because of a Federal Energy Regulatory Commission ruling.

Guest Paula Glover, president of the Alliance to Save Energy, dives into the specifics of the ruling, its implications for wholesale capacity payments in the PJM market and the broader ramifications.

Be sure to listen to the end to hear Glover’s analogy explaining how energy efficiency is like cooking a Thanksgiving dinner. It’s spot on. (We recorded this podcast just after the U.S. Thanksgiving holiday)

00:00 Introduction to Energy Changemakers

00:28 The Impact of FERC's Decision on Energy Efficiency

01:43 Interview with Paula Glover: Insights on Energy Efficiency

04:31 Defining Energy Efficiency in Today's World

06:07 The Role of Demand Response in Energy Efficiency

07:50 Understanding Capacity Markets

17:11 Alliance to Save Energy's Current Focus

22:30 The Importance of Energy Efficiency Messaging

25:24 Conclusion and Call to Action 

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