DENVER - Thursday, Aug. 20, 2020 - The Colorado Energy Office today released a Beneficial Electrification in Colorado Market Potential Study 2021-2030 and an accompanying report, Beneficial Electrification in Colorado Market Barriers and Policy Recommendations.
Beneficial electrification—also referred to as BE—is an emerging trend across the US. As the electricity sector makes major strides toward high levels of renewable generation, electrification is being considered as a solution for reducing fossil fuel consumption and its associated greenhouse gas (GHG) emissions. Replacing equipment and appliances that burn natural gas, propane, fuel oil, gasoline or diesel fuels with energy-efficient electric technologies will reduce GHG emissions in the near term. As the grid continues to decarbonize, BE will produce even greater reductions in GHG emissions over the long term.
Governor Polis is acting to address Colorado’s climate crisis through a bold vision to get to 100 percent renewable energy by 2040 and meet the science-based targets for reducing GHG pollution. Under the direction of the Governor’s Climate Cabinet, several state agencies including the Colorado Energy Office and the Colorado Department of Public Health & Environment are working together to deliver on the goals of this vision by building a roadmap for climate action. While the roadmap is not yet finished, work to date suggests a wide variety of strategies will be needed to reduce carbon pollution from buildings including improved building energy codes, commercial building benchmarking requirements and performance standards, expanded weatherization and energy efficiency programs, the use of lower carbon renewable natural gas (biomethane and hydrogen), and a significant uptake of building electrification technologies. Preliminary estimates indicate these strategies could yield reductions of GHG emissions in 2030 of 6.7 million tons with electrification responsible for over a third of these reductions.
Completed by GDS Associates, Inc., the research estimates the technical, economic and achievable potentials for BE in buildings in Colorado from 2021-2030, identifies key technologies and sectors that can benefit, estimates the effect of BE on natural gas, propane, and electricity sales as well as net carbon emissions reductions (CO2 equivalent), analyzes market barriers that impede electrification efforts, and provides policy and program recommendations to accelerate the
adoption of BE technologies.
Several key findings emerged from the research:
- Colorado has substantial opportunities to develop building electrification over the 2021-2030 decade and beyond.
- The residential sector has the most potential due to the use of standardized space heating and water heating technologies
- In a high electrification scenario, nearly 200,000 homes could have electric heat pumps by 2030, and electrification would accelerate thereafter
- Whole-building efficiency and air-conditioning savings are key to making BE cost-effective
- Electrifying propane use is more cost effective than natural gas.
- Electrifying propane end-uses should be prioritized, as these efforts can help inform programs to electrify natural gas end-uses
- Colorado should help natural gas customers adopt cost-effective electrification measures and support the development of technologies that may become cost-effective in the future
- Colorado can take advantage of the work that other regions in the US have undertaken to improve heat pump technology, the market for heat pumps and related electrification technologies.
- Regional efforts in the Northwest and Northeast have helped develop heat pump technologies, program structures and marketing—Colorado can leverage these efforts to launch market transformation initiatives
- Maximizing beneficial electrification will require policies that support market transformation.
- The BE market in Colorado is nascent—the next five years will be a critical market preparation period to develop policies, programs, outreach, awareness, contractor training and the supply chain to drive higher adoption rates over the long term
BE policies and programs need to ensure equitable participation across customer segments and reduce risks for vulnerable populations. The BE research identified several recommended next steps including coordinating and engaging with a broad set of stakeholders to overcome market barriers and advance building electrification, supporting workforce development initiatives, developing consistent messaging and building consumer awareness, promoting advanced building codes, leading by example in state buildings, considering legislation and working closely with other state agencies around potential rulemakings.
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