REPORT
Breaking Fuel Silos in Demand Side Management Policy options to align energy efficiency with net-zero emissions across all fuelsOctober 28, 2024About the report
Traditionally, utilities have administered demand-side management (DSM) programs within natural gas and electricity boundaries, creating “fuel silos” that can limit comprehensive energy efficiency efforts.
Breaking down these silos can help align DSM strategies with modern technologies like heat pumps and electric vehicles while addressing challenges like peak demands and affordability.
This report surveys policy options to align DSM strategies with net-zero emission goals by breaking down unhelpful fuel silos and explores Canadian experiences with institutional misalignments and innovative cross-fuel policy initiatives.
Authors
Brendan Haley
Sr. Director of Policy Strategy
Alyssa Nippard
Provincial Policy Analyst
James Gaede
Director of Research
Key report findings
Existing DSM program infrastructure is well-placed to deliver electrification and cross-fuel energy efficiency.
Policy options for breaking unhelpful fuel silos include defining beneficial electrification, regulatory mandates, updated cost-effectiveness testing, attributing savings appropriately, and government-funded parallel programs.
External funding from governments can induce institutional changes to demand-side management.
Regulatory rules such as clean heat standards and heating system efficiency regulations can significantly re-direct DSM strategies.
A portfolio approach can manage multiple objectives that might seem to offset and compete, such as encouraging electrification, electricity and peak demand savings.
Updating DSM governance in areas like fuel-neutral resource standards, cost-effectiveness tests, and savings attribution is needed for long-term alignment with net-zero emission goals.