By Elisa Wood
January 26, 2012
Energy efficiency in the US is much light and little heat – literally. Government policy pays a great deal of attention to saving electricity, but focuses little on the thermal energy we waste.
“Policy is electricity-centric in the US. Unless you are making kilowatts, the most efficient investments are off the radar,” said Rob Thornton, president of the International District Energy Association (IDEA), who I recently interviewed while writing this year’s edition of Pennwell’s US Guide to Combined Heat and Power Companies.
We throw away a lot of the heat. Power plants, for example, create heat as a byproduct of generation. Rather than reusing this thermal energy, we often let it dissipate into the air. As a result, we waste more energy than Japan uses for everything, according to Amory Lovins, author of “Reinventing Fire: Bold Business Solutions for the New Energy Era.”
There is good news, however. Thornton and others I interviewed see a growing change in Washington’s attitude about combined heat and power (CHP), district energy, and other efficient methods of using thermal energy. Movers and shakers are becoming more aware of these energy alternatives. In addition, states are increasingly incorporating heat efficiency into clean energy portfolio standards.
“Finally, after all of these years, combined heat and power has become a hot topic in the political community,” said R. Neal Elliott, associate director for research at the American Council for an Energy-Efficient Economy.
By Elisa Wood
January 18, 2012
This is the era of Big Oil. Could the next be the era of Big Efficiency?
A new report by the American Council for an Energy-Efficient Economy suggests the possibility. Re-invented with today’s smart energy technologies, energy efficiency could displace 40 to 60 percent of our total energy needs by the year 2050, according to The Long-Term Energy Efficiency Potential: What the Evidence Suggests.
Sound far-fetched? ACEEE says history backs its assertion. Over the last 40 years we tripled the US economy, “and three-quarters of the energy needed to fuel that growth came from an amazing variety of efficiency advances—not new energy supplies,” said the report. Energy forecasters at the time predicted we would be using far more energy than we do now. The advent of the computer, the Internet, energy savings appliances and other efficiencies saved us a lot of money and a lot of oil. In 1970, our economy required 15,900 British Thermal Units of energy to support $1 of economic activity; by 2010 we needed only 7,300 Btus.
But there is a problem in repeating this feat. Today’s energy policy begins with the premise that we need to build more power plants, more refineries and more delivery systems. We do not try to first achieve greater efficiency. In other words, we build more energy infrastructure before we try to wring more work out of each unit of energy we produce. If we instead pushed efficiency first, the US could save $400 billion per year in energy costs, amounting to about $2,600 per household, according to ACEEE.
“The U.S. would prosper more if investments in new energy were not crowding out needed investments in energy efficiency,” said John A. “Skip” Laitner, ACEEE director of economic and social analysis.
In short, we are thinking small about efficiency, when we should be thinking big.
By Elisa Wood
January 11, 2012
Utilities worry about a lot of things, such as keeping the lights on, earning a return for investors, and making regulators and customers happy with their service.
Now there is a new worry: How can they protect customers from what one utility refers to as “mental fatigue?”
In this particular case, the utility raises the issue as it prepares to invite homeowners and small businesses to select from among new and possibly complicated rate options made available because of smart meters. The new rates should lead to greater energy efficiency. But that won’t happen if customers become overwhelmed by their complexity, throw the bill insert into the trash, and turn to the next thing demanding their attention.
Mental fatigue is a big problem not only when it comes to homeowners, but also businesses and organizations faced with technical decisions required to green their facilities. Start with the basics. Do you pursue energy efficiency or renewable energy or both? And then, do you choose to make actual physical changes, such as installing combined heat and power systems or solar panels, or do you buy from among the more virtual products such as energy efficiency certificates or renewable energy credits (RECs). And to make it even more difficult there are now a growing number of RECs to choose from: solar RECs, zero emissions RECs, low emissions RECs and more. (See my article on US RECs in the December issue of Platts Energy Economist.)
Analysts Patrick Costello and Roshni Rathi recently prepared a report for RealEnergyWriters.com that sorts through the many options presented to companies trying to go green. The detailed analysis attempts to give direction to organizations by using examples drawn, interestingly, from information technology and telecommunication companies. These industries are known for their progressive, game-changing strategies and many have led the way in reducing energy usage and emissions in their data centers, according to Costello.
By Elisa Wood
January 4, 2012
Americans tend to beat themselves up over their imperfections. We eat too much, watch too much TV and owe China too much money. Despite all of our sloth, we can feel good about one area: our progress saving energy.
A report issued this week by the Institute for Electric Efficiency found that we saved enough electricity to power almost 10 million homes in 2010 (about 112 TWh). That’s 21 percent better than we did the previous year. And it looks like when 2011 data comes out, we’ll have done even better.
You’re saying, “Who me? Not possible. I forget to shut off the lights, my computer stays on all the time and my kids won’t get off the Xbox.”
Therein lies the beauty of energy efficiency today; it requires no huge effort on our part. New appliances, light bulbs, thermostats, heating and cooling systems and electric gadgets are increasingly designed with energy efficiency in mind. Those with an energy conscience don’t have to fumble in the dark and cold.
The report studied programs offered by utilities, which spent $4.8 billion in 2010 on energy efficiency, about 28 percent more than the previous year, and $6.8 billion in 2011, a 25 percent increase. Utilities are expanding their energy efficiency efforts so quickly that IEE expects them to surpass optimistic forecasts that they will dedicate $12 billion annually to efficiency by 2020.
“This steady increase in electricity savings is really impressive. And the growth in electric utility expenditures for energy efficiency is the major reason behind it,” said Lisa Wood, IEE Executive director. (No relationship to me.)
Efficiency is considered a good investment because it’s cheaper to save energy then make energy. The report pegs the cost of saving energy at 3.5 to 4.3 cents/kWh. Check your utility bill – chances are buying electricity costs you a great deal more.
Our success stems from energy efficiency resource standards, which are savings requirements set by state governments. Typically, the requirements mandate that utilities save a set percentage of energy annually. About half of the states, representing two-thirds of the US’ population, now have these standards, according to IEE.
By Elisa Wood
December 15, 2011
If someone told me they could improve the efficiency of my computer so that it operates quicker, at no extra cost to me, I can’t imagine I’d turn them away. Yet, the energy efficiency industry offers a similar option for homes and businesses and at least so far, consumers aren’t flocking to the programs.
On-bill financing gives customers the ability to finance energy efficiency improvements made to their homes and businesses at no upfront cost. Customers pay for the insulation, lighting, new heating system or other efficiency measure over extended terms on their monthly utility bills. Typically, the savings from the efficiency improvement offset the cost, so the customer sees no increase in the monthly utility bill. You get a building that uses less energy and yet experience no financial pain in doing so.
There is no catch here. It sounds like a good deal for the consumer and early reports indicate it is. So why aren’t consumers interested?
A new report by the American Council for an Energy-Efficient Economy takes a close look at 19 on-bill financing programs offered in 15 states. In many cases, less than 1 percent of eligible customers choose to participate in these programs.
The concept is just beginning to take hold, so the problem may simply be lack of awareness, says Casey Bell, lead author of the report.
“The growth of these programs depends on a number of factors. We are seeing a trend where they are emerging in more states. While I profiled 19 programs, we found 31 in 20 different states. A lot of these programs are still new, and many are still in the pilot phase,” Bell said.
Indeed, when it comes to energy, it’s not easy convincing consumers to accept new ideas, even those that directly benefit them, as behavioral scientists made clear at an ACEEE-sponsored conference on energy use and behavior in Washington, DC earlier this month. Even if they read the brochure from their utility, watch a TV commercial and spot a sign on the bus, they still are slow to respond. What does convince them? A chat with a neighbor who tried the program, a push by their church, community or social group, a direct knock on the door by a real live person.
So to improve participation levels, it may be matter of more utilities offering more on-bill financing programs and then being patient; it may take some time for participation to snowball.
Will this happen? Can you expect to see your utility offer on-bill financing any time soon? The ACEEE report points out various reasons utilities are hesitating. Not surprisingly, money is a big issue. Utilities see less opportunity to finance an on-bill program, especially now that government funds are dwindling.
Energy Efficiency Markets Podcast- The Advantages of On-Bill EE FinancingLisa Cohn of RealEnergyWriters.com interviews Catherine Bell, senior economic analyst at ACEEE and author of a new report from ACEEE about financing EE using a number of methods, and having these financing costs included in utility bills. She describes growth in on-bill financing, advantages, and ACEEE's recommendations for boosting the use of it. […]
- Monitoring Technology to Improve Data Center EfficiencyLisa Cohn of RealEnergyWriters.com interviews Craig Compiano, CEO of Modius, a company that provides software that optimizes the infrastructure and operations of critical facilities. He explains how using monitoring technology can significantly increase overall energy efficiency in data centers. Check out our new report on data center efficiency by visiting […]
- Best Practices for Greening Your OrganizationLisa Cohn of RealEnergyWriters.com interviews Patrick Costello, co-author of "Data Center Energy Efficiency, Renewable Energy, and Carbon Offset Investment Best Practices - A Guide to Greening Your Organization’s Energy Consumption," about the report and why its findings apply to any organization interested in greening its operations. The report is […]
- An Easy Way to Switch to Efficient Light BulbsLisa Cohn of RealEnergyWriters.com interviews Adam Borut, co-founder of Eco Hatchery, which develops the Light Bulb Finder mobile app. It was the winner of the "Best Overall App" in the EPA Apps for the Environmental Challenge. […]
- Innovative Clean Energy Financing Using Property Tax IncreaseLisa Cohn of RealEnergyWriters.com interviews Dan Schaefer, president of Ygrene, which has launched a clean energy finance and job creation model. Ygrene's PACE enables building owners to fund renewable energy and efficiency improvements at no upfront cost though an annual assessment on building owners' tax bills. The savings pay back the cost of t […]
- Innovative Clean Energy Financing Using Property Tax IncreaseLisa Cohn of RealEnergyWriters.com interviews Dan Schaefer, president of Ygrene, which has launched a clean energy finance and job creation model. Ygrene's PACE enables building owners to fund renewable energy and efficiency improvements at no upfront cost though an annual assessment on building owners' tax bills. The savings pay back the cost of t […]
- EE Important to 95% of Americans, But...Lisa Cohn of realenergywriters.com interviews Chris Hartmann, executive vice president and CEO of Rexel Holdings USA, one of the world2019s largest electrical distributors, about an international study that showed 95% of Americans consider EE an important issue. However, fewer Americans have taken action than people in Europe. […]
- What Motivates Consumers to Use Less Energy part 2Lisa Cohn of RealEnergyWriters.com continues her interview with Susan Mazur-Stommen, director of the Behavior and Human Dimensions Program for ACEEE, about her plans to radically change our programs for motivating people to conserve energy. […]
- What Motivates Consumers to Use Less Energy part 1Lisa Cohn of RealEnergyWriters.com interviews Susan Mazur-Stommen, director of the Behavior and Human Dimensions Program for ACEEE, about her plans to radically change our programs for motivating people to conserve energy. […]
- Electric Vehicle that Gets the Equivalent of 300 MPGLisa Cohn of RealEnergyWriters.com interviews a team of students from the West Philadelphia High School Auto Academy who were winners in the Spirit of Innovation awards for their design of an electric very light car. The car, being prepared for commercial markets, is expected to set the efficiency standard for EVs. The award program is seeking more entries: […]
- The Advantages of On-Bill EE Financing
