MTI Development

Since launching in late 2022, CalMTA has been working to develop a set of potential market transformation initiatives (MTIs) to help achieve California’s climate goals for energy efficiency, decarbonization, workforce development, and equity.

In the 1st quarter of 2024, in collaboration with the Market Transformation Advisory Board (MTAB), we moved forward with the development of seven promising market transformation (MT) ideas that have high potential to create market-level change that drives adoption of products and practices that deliver lasting, cost-effective efficiency. Those ideas are currently under development in either Phase I or Phase II of our process.

MTI Development/Deployment Process

That process includes a stage gate model, commonly used in product development, applied to MTI strategy and program creation. The three-phase process and end-phase stage gates help manage program risk, maximize the use of resources, and increase transparency in our work. The process supports MTI creation from concept to program development to market deployment, as well as the eventual exiting of the market.

Phase I: Concept Development 

During Phase I, we identify technologies or practices that might be an appropriate MTI. CalMTA vets the opportunity against our criteria and explores available research to fill gaps in knowledge. At the end of Phase I, we prioritize the top ideas and consult with the MTAB to determine which ideas advance. CalMTA has adopted a two-stage scoring and selection method to cull the most viable ideas.

Phase II: Program Development

During Phase II, CalMTA works to confirm market barriers and ensure the potential MTI has viable market leverage points and sound program logic. We develop cost-effectiveness models, and conduct a market characterization study, technology assessment, and in some cases Strategy Pilots to test MT strategies. All of these feed the creation of a full Market Transformation Initiative Plan.

Throughout this phase, there is ongoing consultation with the MTAB on the outcomes and progress being made. At the end of Phase II, we consult with the California Public Utilities Commission (CPUC) for approval of the MTI Plan to move forward to Phase III: Market Deployment.

Phase III: Market Deployment 

During Phase III is when CalMTA resources are fully committed to intervening in the market to drive higher adoption of targeted products or practices and deliver on cost-effective energy efficiency. Currently, no ideas are ready for Phase III. When they are, CalMTA will release RFPs to contract for program delivery.

Monitoring of market progress indicators will tell us whether we are achieving our goals. Market progress evaluations will be conducted to track progress against those indicators and identify opportunities to improve our program design.

Based on the evaluation findings, we will transition the MTI into long-term tracking when we determine that the barriers have been removed or reduced enough that the market will continue to transform without further intervention. We will continue to monitor the MTI’s adoption to report savings and ensure barriers have been sufficiently removed.

Watch the video below for further information on the MTI development process.