Introduction
Energy efficiency is closely linked to emerging technology trends, including grid modernization, smart consumer technology, and modern management theories, alongside a growing awareness of energy source origins Traditional methods of enhancing efficiency, such as thicker insulation, motion sensor lighting, and air sealing, are now being integrated with advanced communication systems and pricing signals.
West Virginia has seen a gradual expansion in energy efficiency opportunities across various economic sectors Success stories from the 2013, 2015, and 2017 energy efficiency conferences, organized by the West Virginia Division of Energy (WVDOE), highlight this progress Manufacturers like Bimbo Bakeries and Simonton Windows have showcased the economic advantages of investing in energy efficiency during these events.
Homer-Laughlin China, Koppers, Steel of West Virginia, and Quad Graphics are essential contributors to the economic landscape of the state, showcasing the potential for success when management emphasizes efficiency.
The commercial sector has seen significant advancements with the implementation of new and upgraded energy systems at Berkeley County Schools and the West Virginia Bureau of Prisons Notably, several new state buildings have achieved LEED (Leadership in Energy and Environmental Design) certification, indicating their commitment to sustainability in areas such as water and energy use, materials sourcing, waste management, and indoor air quality, as recognized by the US Green Building Council.
Electricity constitutes the largest share of total energy consumption in West Virginia This resource thus receives the most attention in terms of potential energy savings
Figure 1 West Virginia Direct Energy Consumption by Resource (TBtu in 2015)
SOURCE: US DOE’s Energy Information Administration, 2017
West Virginia Direct Energy Consumption- 2015
The residential sector in the State remains one of the highest energy consumers compared to other regional states Despite the expansion of utility efficiency programs, there are still significant opportunities for further enhancements in energy consumption within this sector.
Figure 2 Share of West Virginia Electricity Consumption by Industry in 2015
The industrial sector accounts for nearly 50% of the natural gas consumption in the State, presenting significant opportunities to enhance efficiency in its usage, along with electricity and petroleum According to the EIA (2016), natural gas comprises approximately 23% of total energy consumption in the industrial sector, surpassing the share of other sectors.
Figure 3 Share of West Virginia Natural Gas Consumption by Industry in 2015
Share of Total West Virginia Electricity
Share of Total West Virginia Gas Consumption in
National efficiency trends show a growing market presence of energy-efficient appliances, particularly light-emitting diode (LED) bulbs; however, their adoption rates remain significantly below the levels needed to fully realize their energy-saving potential.
In 2014, only 143 out of 4,896 trillion Btus (TBtu) in potential energy savings from LED lighting were being utilized, according to the US Department of Energy (USDOE, 2015) The majority of these energy-saving opportunities are found in linear fixtures and low/high bay indoor lighting State policies play a crucial role in promoting the adoption of LED technology to maximize these energy savings.
State energy policy plays a crucial role in shaping utility programs and reflects the level of official backing for energy efficiency as a valuable resource This support can significantly influence public perception and encourage the widespread adoption of efficient practices Key areas where state efficiency initiatives can make an impact include regulating utility program expenditures through mandated spending plans, overseeing the management of state-owned buildings, implementing building codes, and directing the allocation of U.S Department of Energy funds to promote efficiency measures.
The West Virginia Public Service Commission (WVPSC) has enhanced energy efficiency by approving utility spending on widespread efficiency programs accessible to all electricity customers, excluding rural cooperatives These initiatives are crucial for fostering energy savings and building on the momentum and expertise developed over the past five years Continuing these programs is essential for maximizing energy savings and promoting sustainable practices across the state.
State and local government buildings showcase significant energy savings achieved through performance contracting, often enhanced by utility program rebates Notably, the City of Morgantown has reported savings that surpassed initial projections (West Virginia Energy Services Coalition, 2017) Additionally, the City of Huntington and Cabell County have successfully implemented energy performance contracting to optimize their energy efficiency.
Regarding building codes, West Virginia has adopted the 2015 versions of residential and commercial building codes at the State level The residential energy code is the 2009 International Energy
The ASHRAE 90.1-2007 standard serves as the Conservation Code and the commercial energy code However, since these codes are enforced voluntarily at the local level, many buildings do not adhere to their specifications, resulting in only partial realization of the potential energy savings benefits.
The West Virginia Department of Education (WVDOE) is leveraging discretionary SEP funds to enhance efficiency in schools through initiatives like the High Performance Schools program, which encourages performance contracting within county school systems Additionally, the WVDOE is developing a National Energy Education Development Project (NEED) curriculum that focuses on high-efficiency schools and general energy education Another notable effort includes the installation of lighting upgrades at State Parks in 2015 and 2016, funded by rebates from Appalachian Power.
West Virginia has secured federal funding to enhance its energy efficiency services, particularly benefiting low-income households through weatherization efforts managed by the West Virginia Office of Economic Opportunity Additionally, this funding supports industrial efficiency auditing and engineering services provided by West Virginia University, further promoting sustainable energy practices within the state.
Industrial Assessment Center (IAC), Manufacturing Extension Partnership (MEP) and Projects with Industry (PWI), and West Virginia’s State Energy Program (SEP) The WVDOE uses SEP funds to support
1 All troffer, panel, suspended, and pendant luminaires, as well as LED linear replacement lamps
In West Virginia, various energy efficiency and renewable energy initiatives are supported by the USDOE’s Office of Energy Efficiency and Renewable Energy (EERE), including annual conferences dedicated to these efforts.
Previous 5-Year Plan Recommendations and Actions Taken
The previous 5-year plan evaluation recommendations were (West Virginia Division of Energy, 2012):
Support the adoption of the 2009 IECC and 2007 ASHRAE standards for state-funded construction and public buildings
The West Virginia Legislature enacted the "Green Buildings Act," signed by Governor Tomblin, mandating that public agency construction projects and those funded by the state adhere to specific building codes (WV Legislature, 2012) While the 2009 IECC and ASHRAE 90.1-2007 standards apply to residential and commercial buildings, they are not enforced at the state level.
Energy code adoption should be no further than one series of codes behind the most recent version
The 2015 International Energy Conservation Code (IECC) is currently in effect, with the 2018 version set to be released soon, leaving the adopted 2009 code three iterations behind A 2016 study by the Home Builders Association of West Virginia (HBAWV) evaluated the compliance rate of residential energy codes in the state, focusing on how well new homes adhere to the energy specifications outlined in the 2009 IECC The findings indicated that while compliance is generally achieved for certain criteria, such as window standards, other areas, like the installation of high efficacy lamps, fall short of meeting the code requirements.
Code enforcement in West Virginia is voluntary by jurisdiction, leading to significant compliance issues since only eight counties have adopted building codes county-wide As a result, many new constructions are not required to adhere to these codes Consequently, it is impractical for the state to implement a more recent energy code until builders can feasibly comply with the currently adopted version.
Consider appointing an energy management specialist to an ex-officio position within the State Fire Commission to leverage their expertise and advocacy for the effective development and implementation of updated building energy codes during the rulemaking process.
No action was taken regarding this recommendation The Commission does have an architect position who is knowledgeable regarding energy codes, but there is no dedicated efficiency specialist position
Make training on energy codes and energy efficient building components available to home builders, local governments, and the built community
The West Virginia Department of Education (WVDOE) is actively supporting the training of residential builders through SEP funds, with current sessions being conducted by the Home Builders Association of West Virginia (HBAWV) This includes training for Home Energy Rating Specialist (HERS) certification, a leading system for evaluating a home's energy efficiency Upcoming local training will focus on the 2009 energy standards adopted by the state, aiming to increase the number of builders who are nationally certified and well-versed in current energy codes.
To maintain a competitive edge in energy costs, it is crucial to continue offering energy services to manufacturers in West Virginia This approach helps sustain a low energy cost environment, which serves as a key incentive for attracting and retaining energy-intensive industries in the region.
The Industrial Assessment Center and Manufacturing Extension Partnership at WVU have continued their efforts to support manufacturers through recurring IAC grants and SEP funds These funds are allocated to firms that meet or exceed the energy consumption criteria set by the DOE for IAC centers, thereby increasing the number of manufacturers eligible for valuable energy assessments.
Provide technical assistance to manufacturing and small businesses using the resources of Projects with Industry Program, Manufacturing Extension Partnership and Industrial Assessment Center
Activity matching this recommendation is the same as above
Implementing benchmark programs for state buildings, county school systems, and local governments is essential for enhancing energy efficiency Utilizing tools like the ENERGY STAR® Portfolio Manager enables decision-makers to evaluate energy performance accurately and identify opportunities for improvement, ultimately leading to significant energy savings in these facilities.
Several State agencies in West Virginia have utilized rebate opportunities from the Appalachian Power and FirstEnergy efficiency program to upgrade State-owned buildings While no formal energy benchmarking initiative has been implemented, the General Services Division tracks energy usage based on building square footage to prioritize upgrades These efforts are part of a larger strategy aimed at cost savings, which also involves reducing the number of buildings leased by the State.
Establish, in concert with electric utilities, an energy savings target for utility energy efficiency initiatives This will help reinforce the concept that energy efficiency is a quantifiable energy resource
No action was taken regarding this recommendation Utility and regulatory support for an energy savings target is low
Energy Efficiency Opportunities
There are many opportunities to expand and initiate energy efficiency measures in West Virginia
Despite the recommendations outlined in the previous 5-year energy plan, several opportunities remain unaddressed, including the appointment of an energy efficiency expert to the State Fire Commission and the creation of comprehensive benchmarking programs for energy usage in State facilities Moreover, new opportunities have emerged across all sectors of the economy, highlighting the ongoing potential for enhancing energy efficiency and sustainability.
The chart illustrates the total energy consumption across West Virginia's residential, commercial, and industrial sectors It highlights that the industrial sector is significantly influenced by economic trends, evidenced by a drop in energy usage during the Great Recession In contrast, the commercial sector demonstrates minimal responsiveness to these economic fluctuations.
Figure 4 Total West Virginia Energy Consumption by Sector, 2006-2015 (Tbtu)
Implementing industrial energy efficiency in West Virginia could significantly benefit the state's economy, as the manufacturing sector accounted for 7% of direct private employment and 10% of total economic output in 2015 Investments in energy efficiency not only enhance operational performance but also lower costs, improve working conditions, and prolong the lifespan of facilities.
West Virginia's industrial sector accounts for approximately 49% of the state's natural gas consumption and 40% of its electricity usage In comparison to the commercial sector, which utilizes 72% of its energy from electricity, and the residential sector at 71%, the industrial sector relies more heavily on natural gas, representing 44% of its total energy consumption.
2 These percentages would be higher if including indirect employment and output
Total Energy Consumption Per Sector
Figure 5 Average Electricity Share of Total Energy Consumption by Sector, 2006-2015
West Virginia’s manufacturers also maintain positions in the supply chain for energy efficient products These include chemical inputs to insulation manufacturing, various types of foam and sheet metal fabrication
A report from the WVU School of Law highlights that technological innovations in industrial efficiency can significantly benefit the state Energy efficiency upgrades not only reduce costs for industrial facilities but also enhance their competitive edge and facilitate expansion Additionally, developing businesses that specialize in industrial systems and management aligns with the growing global demand for energy-efficient products, presenting a promising export opportunity.
The report’s recommendations for realizing these opportunities include:
To enhance the State's industrial energy efficiency (EE) sector and supply chain, it is essential to establish an energy efficiency industry working group, bolster the State's foreign direct investment strategy, and implement an anchor company tax credit These initiatives aim to foster collaboration and attract investment, ultimately driving growth in the energy efficiency sector.
Promotion of a more innovative small business culture – Steps to do this could include creating a philanthropic foundation liaison to interface between funding groups and State government
Increasing access to capital – This could include establishing tax credits for investments in startups or creating a “fund of funds” to be a source of capital
Support of training in the EE industry, including at high schools and community colleges
State policies can effectively stimulate demand for industrial energy efficiency (EE) technology by implementing strategies such as energy efficiency tax incentives for manufacturers, engaging in Regional Energy Efficiency Organizations (REEOs), enacting Local Energy Efficiency Partnerships (LEEP) financing, and establishing a utility energy efficiency resource standard (EERS).
WVU’s existing partnerships with industry can be a foundation for these efforts The IAC, MEP and PWI programs already have experience surveying industrial facilities and recommending efficiency upgrades
These relationships with manufacturers can allow sharing of expertise and know-how regarding potential cost savings
West Virginia has the highest residential energy consumption per capita in the 11-state region
Population data indicates that the State has the lowest population density and the fewest people per household, which may contribute to consumption patterns Additionally, high demand for housing may be linked to an aging and inefficient housing stock.
Table 1 Residential Energy Consumption by State in 2015
Delivered Energy to Residential Sector (MMBTUs)
Population in Occupied Housing Units
Consumption Per Capita in Occupied Units (MMBTUs)
Population Density (people per sq mi.)
Sources: National Multifamily Housing Council, EIA and US Census
West Virginia has implemented the 2009 International Energy Conservation Code (IECC) for new residential constructions; however, this standard is not consistently applied across all new homes Moreover, there are substantial opportunities for retrofitting existing residences to enhance energy efficiency.
Appalachian Power has observed that residential customers were initially slow to utilize rebates for energy-efficient appliances, although participation increased following outreach efforts to contractors This slow uptake may be attributed to financial constraints that prevent households from purchasing new appliances, even with available rebates Additionally, eligibility restrictions limit the number of households that can benefit from the utility's HVAC system efficiency rebates.
In 2015, 41% of households in West Virginia relied on natural gas for heating, while 44% used electricity, marking a significant increase from 2000 when only 32% of homes were primarily heated with electricity This shift highlights a growing trend towards electric heating in the state.
Appalachian Power offers rebates through its HomeSMART program, yet only 44% of residential electricity customers benefit from incentives for insulation, air sealing, and HVAC system maintenance and upgrades.
FirstEnergy’s residential efficiency programs only offer rebates for Energy Star Appliances and LED lightbulbs To date, HVAC systems and related upgrades are not part of the program
The commercial sector encompasses a diverse array of buildings serving various functions and energy requirements, including federal, state, and local government facilities, as well as private and public organizations like religious and social groups, institutional housing, and sewage treatment plants (EIA, 2017) Similar to the residential sector, electricity is the primary energy source utilized Over the past decade, West Virginia has experienced a modest increase in total commercial energy usage, rising by less than one percent annually.
West Virginia has implemented the 2007 ASHRAE Standard 90.1 for new commercial buildings, but its full application is often lacking in these structures Moreover, there are substantial opportunities for retrofitting existing buildings to enhance energy efficiency.
Appalachian Power's efficiency program has seen greater engagement from commercial customers compared to residential ones, with the commercial and industrial (C&I) program achieving the highest energy savings among all initiatives This trend indicates a significant demand for opportunities to lower costs through energy efficiency measures.
Summary and Recommendations
West Virginia presents numerous energy efficiency opportunities across all economic sectors, including industrial, commercial, and residential Key actions for the state involve increasing investments in energy efficiency within public buildings and enhancing support for efficiency initiatives By building on the progress achieved through existing utility programs, West Virginia can strategically plan for expanded and sustainable energy efficiency efforts.
West Virginia currently faces budgetary constraints that hinder its ability to establish its own energy efficiency grant or loan programs, which could otherwise align it with regional incentives A significant immediate opportunity lies in the state's potential to set an example by implementing energy efficiency measures in public facilities, ultimately reducing future energy costs for taxpayers Additionally, the state should focus on promoting the expansion of electric utility programs and enhancing existing industrial expertise to strengthen the manufacturing sector.
The State can shape public perception and bolster support for resource efficiency through targeted outreach initiatives This outreach may include educational programs in public schools and effective communication strategies with State employees, fostering a greater understanding of the importance of resource efficiency.
RECOMMENDATION 1: Elevate the profile of energy efficiency opportunities, and examples of successful investments, via educational programs in schools
The WVDOE has supported energy efficiency outreach activities since its inception, and a few West Virginia teachers have utilized curricula developed by national organizations in their classrooms
Expanding this activity will promote use of the resource
RECOMMENDATION 2: Reissue State guidance on energy efficiency for State employees as an update to the 2008 Governor’s memos
This action will show that the State is a champion for efficiency and induce public employees to become mindful of opportunities to use energy more efficiently b Utility Recommendations
Surveys indicate that electric utility programs hold significant potential for enhancing energy efficiency and saving energy, a trend that is also evident in West Virginia.
RECOMMENDATION 1: Approve renewals of the utility programs, including multi-year plans for the programs to expand and innovate
Electric utility programs have a significant reach, connecting with nearly every household in the state, making them ideal for sharing information about energy efficiency options As experts in electricity consumer behavior, utilities are well-equipped to provide guidance on the effectiveness of various energy-saving initiatives.
To enhance information-sharing, it is recommended to use utility-specific hourly load data This approach enables a better understanding of peak demand patterns, including the timing and duration of these peaks throughout different times of the day and across various seasons.
The West Virginia Public Service Commission (WVPSC) plays a crucial role in regulating utility data to enhance consumer protection By analyzing hourly load data, the WVPSC can not only support regulatory measures but also collaborate with other organizations to develop innovative services like demand response programs The extensive databases maintained by utilities offer essential insights into electricity demand, aiding in the identification of optimal locations and times for implementing peak shaving and communication-based efficiency initiatives.
RECOMMENDATION 3: Implement an energy efficiency program by gas utilities
This will allow businesses and households that heat with gas to participate more fully in efficiency programs c Sector Recommendations
These recommendations apply largely to the commercial or industrial sectors, including government
RECOMMENDATION 1: Increase the amount of the tax credit allowed under the "West Virginia
Manufacturing Investment Tax Credit Act" to be applied specifically to EE investments to 10 percent or
20, from the current five percent
This action would increase the economic incentive for manufacturers to invest in efficient equipment, and if utilized would increase the value of industrial property in the State
RECOMMENDATION 2: Authorize Local Energy and Efficiency Partnership (LEEP) financing
This legislation will enable local governments to provide private firms with a cost-effective way to finance energy efficiency upgrades
RECOMMENDATION 3: Support additional efforts to train builders to the energy code currently adopted
The State can collaborate with the Homebuilders Association and various organizations to enhance and expand the outcomes of existing training initiatives, promoting the construction of more homes and buildings that meet these specific standards.
RECOMMENDATION 4: Modernize State rules regarding performance contracting
Eliminating the mandate for public facilities to adhere to the same lowest bid guidelines as construction projects will enable the realization of optimal value in performance contracts.
RECOMMENDATION 5: Authorize issuance of Qualified Energy Conservation Bonds (QECBs) for use by State and local government
This financing option will increase the opportunity for State and local governments to cost-effectively finance energy efficiency upgrades
RECOMMENDATION 6: Establish a robust benchmarking project to track energy consumption in State buildings that includes goals for program accomplishments
An energy usage benchmarking program will enhance existing data collection and efficiency initiatives led by State facility managers Following USDOE recommendations, these programs should be created with upper management support and aligned with a strategic plan for efficiency investments based on thorough data analysis.
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