NRG Energy
At a Glance
Industry
Energy or Utility
Project Type
Sustainability and Energy Management Strategy
Year
2016
Location
Princeton, NJ
Net Present Value:
$158,000
Annual kWh Savings:
327,000 kWh
Annual CO2 Reductions:
140 metric tons
Summary
John Adamo conducted an analysis of frameworks and methods used to develop and apply an internal carbon price and developed a strategy to expand the Workplace Energy Challenge to all NRG leased office facilities.
Goals:
NRG, the largest independent power producer (IPP) in the United States, has committed to reduce GHG emissions across its entire portfolio 50% by 2030 and 90% by 2050, from a 2014 baseline. EDF Climate Corps fellow John Adamo was enlisted to assist NRG in developing an internal carbon price to earmark funds for energy efficiency investments. He too, was tasked with crafting a strategy for expanding the Workplace Energy Challenge—an employee engagement program that inspires employees to implement energy efficiency projects –across all NRG-leased office facilities.
Solutions:
John researched several private and public examples of carbon pricing to determine an appropriate method for NRG. Using facility utility consumption and cost data, he found the future value of the potential savings achieved by a 50% reduction in emissions by 2030. He then ran a sensitivity analysis on annual investment budgets and project emissions to identify a range of carbon prices. The other piece of the puzzle, expanding facility-wide engagement of the company challenge, was a three part process. First, John recommended ways to prioritize facilities for energy efficiency investments based on: cost and consumption profiles, leverage availability of renewable energy purchasing and demand response programs. Secondly, he increased the capability of a web-based platform to boost participation. Finally, John supported the development of preliminary business case analyses for energy efficiency investments at the WEC’s first four pilot locations.
Potential Impact:
John’s carbon price analysis laid the groundwork for a financial mechanism to internally fund energy efficiency projects, bringing NRG one step closer to reaching their GHG reduction goals. And, thanks to his strategy for the Workplace Energy Challenge, NRG employees are left with a revived sense of motivation to propose efficiency projects of their own.