Lazo Benza, Omar J.

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    Development of cost - effectiveness test for energy efficiency in the building construction industry
    (2012) Lazo Benza, Omar J.; Maldonado Fortunet, Francisco; College of Engineering; Molina Bas, Omar I.; Orama Exclusa, Lionel R.; Department of Civil Engineering; Acosta Lugo, Maribel
    This document presents the methodology to evaluate cost effectiveness of energy efficiency measures for Puerto Rico, using to the cost effectiveness tests suggested in the document National Action Plan for Energy Efficiency Vision for 202 that is sponsored by the US Department of Energy that intends to promote energy efficiency as a resource to reduce electricity consumption in the USA, including Puerto Rico. A literature review in energy efficiency legislation and incentives for USA and Puerto Rico was performed. Current legislation on energy efficiency was analyzed to determine the Puerto Rico situation in this matter. Technical and economic data was used to select the residential sector as the target group to be evaluated, and a portfolio of energy efficiency initiatives was considered. This portfolio had to fulfill a requirement of decreasing 1% of the electricity consume by the residential sector, per year, from 2013 to 2025. Implementation costs and potential benefits were determinate based on data collected from the local market, USA and Puerto Rico financial and government institutions, including a study on the potentials for energy efficiency for Puerto Rico. Decreasing ratios were selected according to Vision 2025 document suggestions of benefits and costs, then calculating the present value to sustain the cost effectiveness tests. The results showed that the suggested energy efficiency initiatives portfolio can reach the goal of reducing 1% per year of the consumed electricity in the residential sector, but only if the right legislation is created to include energy efficiency as a resource to reduce energy costs.