CalMTA solicits, reviews, scores, and develops ideas for market transformation into full initiatives. These market transformation initiatives (MTIs) will help California achieve its climate goals for energy efficiency, decarbonization, workforce development, and equity. Read on to understand more about how these MTIs are developed or to learn more about each of our current MTIs.
In collaboration with a Market Transformation Advisory Board (MTAB), we have 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. Two of those ideas have full MTI Plans that are pending approval from the California Public Utilities Commission (CPUC).
Our MTI development process derives from the comprehensive Market Transformation Framework of the California Public Utilities Commission (CPUC) that was adopted in Decision 19-12-021. It 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.
During Phase I, we identify technologies or practices that might be an appropriate MTI. CalMTA vets the opportunity against established criteria through a two-stage scoring process and explores available research to fill gaps in knowledge.
Near the end of Phase I, we prioritize the top ideas and consult with the MTAB to determine which ideas advance. Phase I concludes with the delivery of an Advancement Plan that describes the research and analysis to be conducted to determine viability and develop a full MTI Plan.
During Phase II, CalMTA works to confirm market barriers and ensure the potential MTI has sufficient 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 MTI 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 file a request with the CPUC for approval of the MTI Plan and funding to move forward to Phase III: Market Deployment.
During Phase III, 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, the Room Heat Pumps and Induction Cooking MTIs are being reviewed by the CPUC for approval to move to Phase III. Upon approval, CalMTA will release RFPs to contract for program delivery.
Ongoing monitoring and annual reporting of market progress indicators (MPIs) will tell us whether we are achieving our goals. Reports evaluating MTI efforts will confirm MPIs are being met or identify opportunities to improve on program strategy.
Based on the evaluation findings, we will transition the MTI into long-term tracking when it is determined 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.
The California Market Transformation Administrator (CalMTA) develops and manages market transformation initiatives in the state to reduce energy use and reduce greenhouse gas (GHG) emissions.
CalMTA follows a rigorous process for reviewing, scoring, and then developing relevant, timely market transformation initiatives. The process supports market transformation initiative creation from concept to program development to market deployment, as well as the eventual exiting of the market.
We welcome your questions and suggestions.
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CalMTA
Resource Innovations
719 Main Street, Suite A
Half Moon Bay, CA, 94019
(888) 217-0217
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