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U.S. Department of Energy Energy Efficiency and Renewable Energy

Energy Incentive Programs, Washington DC

Updated December 2011

What public-purpose-funded energy efficiency programs are available in the District of Columbia?

The electricity restructuring legislation for Washington, DC established a Sustainable Energy Trust Fund for universal service (low income), energy efficiency, and renewable energy programs. No public-purpose-funded energy efficiency programs are currently available to federal customers. However, legislation passed in 2008 by the DC City Council directs the creation of a sustainable energy utility (SEU) in Washington. The DC Energy Office oversees the SEU as part of its Green Energy DC initiative. However, there are currently no programs offered to commercial/industrial-scale customers such as federal facilities.

What utility energy efficiency programs are available to me?

DC utilities do not offer incentive programs that federal customers can take advantage of.

What load management/demand response options are available to me?

The PJM Interconnection (PJM), a regional transmission organization (RTO), offers several demand response programs. Two specific programs may be attractive to federal facilities in the PJM footprint:

  • The Economic Load Response program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. Participation is fully voluntary. Customers start by submitting load reduction bids through their curtailment service provider (any existing PJM member, such as their utility, a third-party electricity supplier, or a specialty CSP) of at least 100 kW into the day-ahead energy market. Participants whose bids are accepted are paid for their load reductions based upon the day-ahead, hourly electricity market prices (the day-ahead "locational marginal price," or LMP). Reductions are figured based on a customer baseline load (CBL), which is essentially the average load levels for the same hours in four of the facility's previous non-responding days. Regardless of which type of firm it is, the CSP will generally offer to split the revenues with the customer at a pre-determined percentage.

  • PJM's emergency "capacity" program allows demand resources to participate in PJM's Reliability Pricing Model (RPM) forward capacity market via a CSP. Participants pledge to either reduce their load by a specified amount (guaranteed load drop, GLD), or to a specific kW level (known as firm service level, FSL), within one or two hours of an event notification. Load reductions are mandatory and may occur up to ten times per year, lasting up to six hours per event. Penalties for non-compliance are substantial. Remuneration is based on the results of the annual RPM capacity auctions in various PJM regions. Remuneration levels for the 2012-13 and 2013-14 PJM years (which begin June 1, 2012 and June 1, 2013, respectively) range from $50,000-90,000 per MW for DC customers. Participants are also eligible to receive energy payments for actual reductions, if and when the program is called.

In both programs, participants can provide load reductions either through curtailing electricity use or operating on-site generation consistent with local environmental regulations and permits.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewables and Efficiency (DSIRE) provides information on programs that offer incentives for renewable distributed generation. The following program may be of interest to federal government facilities.

For PV and other types of solar projects, federal customers can take advantage of DC's renewable energy portfolio standard program. Because DC has a large solar requirement, the city participates in a trading market whereby owners of solar PV installations can sell solar renewable energy certificates (SRECs) representing the clean energy benefits of their solar systems. SRECs have been trading from roughly $0.15 to $0.35 per kWh recently (fall, 2011). Federal facilities can sell SRECs from their DC solar installations and buy back an equivalent number of generic, national RECs at a fraction of a cent per kWh, thereby augmenting the financing of their solar installation but still maintaining their contribution towards EPACT's and Executive Order 13423's renewable energy goals. SRECs in the DC market are traded through PJM's Generation Attribute Tracking System in chunks of 1 MWh (1,000 kWh).

Are there energy efficiency programs sponsored by DC government?

No city government energy efficiency programs are currently available to federal customers. For information on potential future opportunities, contact the District DC Energy Office's Green Energy DC program.

What additional opportunities are available to me?

Federal customers whose utilities have area-wide supply contracts through GSA (e.g., PEPCO and Washington Gas), may be able to take advantage of 3rd-party financed energy efficiency projects called utility energy services contracts (UESCs). Information is available on GSA's Energy Center of Expertise Library Page. Federal facilities should contact their account executive to determine the level of each utility's participation.

PJM (see above in the demand response section) now allows energy efficiency projects to participate in its forward capacity markets, based on its Reliability Pricing Model (RPM). To be eligible, EE projects must reduce load continuously by at least 100 kW during peak summer hours, and not be dispatchable. This load reduction can be bid into PJM's annual (for three years in advance) and "residual" (nearer-term) capacity auctions, and if selected will receive the auction clearing price. Interested customers can participate through energy service companies conducting ESPCs or utilities executing UESCs at their sites.

NOTE: Energy efficiency funds and demand response programs are updated at least annually. Please contact the FEMP webmaster if changes are needed between updates.