EPRI ‘Total Value Test’ Adapts and Refines Best Practices to Assess Cost-Effectiveness, Social Benefits for Energy Efficiency and Electrification Programs

PALO ALTO, Calif., Aug. 13, 2019 (GLOBE NEWSWIRE) -- The Electric Power Research Institute (EPRI) published a new analytical framework to assess the cost-effectiveness of energy efficiency measures and programs. The Total Value Test (TVT) refines current analytical approaches and expands the application to any kind of energy efficiency program or electrification effort, in any economic sector.

“We designed the TVT based on guidance and experience from utility, regulatory, and policy experts, as well as a review of current test methodologies,” said EPRI Senior Technical Executive Omar Siddiqui, who led the project. “We found that conventional cost-effectiveness methodologies, in their current application, are limited in accounting for the comprehensive set of benefits and costs of utility energy efficiency and electrification programs. We believe that the TVT better supports regulatory consideration of a broad portfolio of energy efficiency and electrification projects across economic sectors.”

The TVT’s development, attributes, and application are summarized in a newly published, publicly available EPRI report, and includes a review and critique of current energy efficiency cost-effectiveness tests, perspectives from interviews with industry experts, the TVT’s methodology, and three case studies.

EPRI collaborated with The Brattle Group on development of this report.

About EPRI:

The Electric Power Research Institute, Inc. (EPRI, www.epri.com) conducts research and development relating to the generation, delivery and use of electricity for the benefit of the public. An independent, nonprofit organization, EPRI brings together its scientists and engineers as well as experts from academia and industry to help address challenges in electricity, including reliability, efficiency, affordability, health, safety and the environment. EPRI members represent 90% of the electricity generated and delivered in the United States with international participation extending to 40 countries. EPRI’s principal offices and laboratories are located in Palo Alto, Calif.; Charlotte, N.C.; Knoxville, Tenn.; Dallas, Texas; Lenox, Mass.; and Washington, D.C.