Ambitious Collaboration Aims to Cut Campus Electricity Use

News Updates

Efficiency Forward: Partnering for Success On January 11th, MIT President Susan Hockfield and NSTAR CEO Tom May hosted “Efficiency Forward: Partnering for Success,” a forum to recognize the important role energy efficiency plays in Massachusetts’s clean energy economy and to celebrate the strong progress of the MIT and NSTAR collaboration. Joining President Hockfield and Mr. May in making remarks included Cambridge Mayor David Maher, state Undersecretary for Energy Phil Giudice, and Sloan School Dean David Schmittlein. A key feature of the Forum held on the MIT campus was a workshop attended by over 100 local business, community, and university leaders to support broader adoption of large-scale, energy efficiency programs in Massachusetts.

In May 2010, MIT established MIT Efficiency Forward a three year, $13M collaborative energy conservation and efficiency program with its electric and gas utility company NSTAR. The program is a first-ever-of-its-kind with a utility company and is the single largest energy efficiency project NSTAR has developed with a customer. The program will invest over $13M over three years, with a mix of funds from MIT, NSTAR incentive payments, and reinvestment of energy savings.

“MIT Efficiency Forward will capitalize on one of MIT’s core strengths: the passion of our faculty, staff and students to tackle the world’s most challenging problems...Through this exciting new program, right here on the MIT campus, we will pursue one of the major opportunities to reduce energy consumption: finding smart, sensible, economic approaches to energy efficiency. Our participation in the program signals that the solutions for today’s climate and energy challenges will come not only from our research laboratories and classrooms, but also from practice-based management innovations.”

– MIT President Susan Hockfield

“What we are launching with MIT is a bold new plan for confronting climate change and a proposal to officially establish energy efficiency as the ‘first fuel’ in Massachusetts...Aggressive goals require aggressive action, and MIT is demonstrating its leadership in campus sustainability once again. They are taking advantage of every energy-saving tool NSTAR has available and I’m confident the results will be a model—and an inspiration—for all other customers to follow."

– Tom May, NSTAR Chairman, President and CEO

MIT has committed to a goal of reducing electrical use on campus by 34 million kilowatt hours over three years—equivalent to 15% of MIT’s current electrical use. The total estimated savings over the lifetime of the investments is estimated in excess of $50M. MIT and NSTAR designed Efficiency Forward to create a new model for enhanced utility efficiency programs to support the Massachusetts Green Communities Act and the state’s desire to make efficiency competitive with new source generation.

The program employs an innovative funding strategy that leverages funds from MIT, NSTAR incentive payments, and reinvestment of energy savings in additional projects. In addition, the Institute will dedicate its efforts toward a strong community engagement including outreach, awareness, and education on energy conservation and efficiency.

In January 2011, MIT marks a milestone: the partnership concludes its first year of collaboration with very strong success. Through MIT’s close partnership with NSTAR, MIT has been able to surpass its first year goal of achieving 10 million kWh of energy savings.

What is unique about MIT's program and partnership with NSTAR?

• It is a long-term partnership between a major utility and its customer (initial three year agreement)
• Represents a commitment from MIT to specific annual reduction targets in kilowatt hours totaling 34 million kWh (10 MkWh in 2010, 12 MkWh in 2011 and 2012)
• Includes a commitment from the utility to pay a fixed incentive payment rate for each kWh saved
• MIT is committed to reinvest of a portion of energy savings for additional projects
• It will utilize a portfolio approach to energy project implementation that does not have different incentive rates for different technologies and applications
• Can include incentive payments for power saved from behavior change measures when a mutually acceptable measurement and verification protocol is developed
• Provides streamlined process for savings measurement, verification, and incentive payment
• Provides access to NSTAR’s preferred procurement rates for equipment and services
• Engages MIT’s academic community including anticipated integration of project-based learning and research opportunities
• Engages students through a Student Advisory Group and study projects
• Includes a commitment to strong community engagement, outreach, awareness, and education on energy conservation and efficiency