Energy efficiency: What are the laggards thinking?

Elisa WoodBy Elisa Wood
May 17, 2012

 

Why do some states avoid creating policies that encourage consumers and businesses to save energy? What’s the psychology of the laggards?

 

A new report by the American Council for an Energy Efficiency Economy sheds some insight as it examines the states that consistently fall behind in the organization’s annual energy efficiency ranking.

 

The bottom states are: Alabama, Kansas, Mississippi, Missouri, North Dakota, Oklahoma, South Carolina, South Dakota, West Virginia, and Wyoming. The good news is that even these laggards are beginning to adopt policies to save energy, according to the report, “Opportunity Knocks: Examining Low-Ranking States in the State Energy Efficiency Scorecard.”

 

But they still have a lot of catching up to do. And why did they fall behind in the first place?

 

The report authors, who interviewed 55 stakeholders, found one reason is a general lack of awareness about energy efficiency’s benefits. Another is an aversion to government mandates. But one of the most fascinating barriers is a misperception about energy costs.

 

Industry folklore says that consumers in states with low electric rates have no motivation to save energy. This folklore discourages policymakers from putting time and money into energy efficiency programs. In truth, these states have good economic reasons to  encourage consumers to insulate, install better lighting, and undertake other energy savings measures.  It turns out that even though electric rates are low in these states, consumers are paying high monthly bills.

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May 17, 2012 | | Tags: , , , , | No Comments »

What’s undermining energy efficiency?

Elisa WoodBy Elisa Wood
April 25, 2012

 

Exhilaration swept through the energy efficiency industry as city after city, state after state and nation after nation set aggressive energy saving goals over the last several years. But with target dates nearing in certain jurisdictions, a more sober attitude now  permeates. Some governments are asking: Are we reaching too high?

 

A global report issued this week by PwC, which looks into the minds of power industry executives, suggests the worry may be justified. Called ‘The shape of power to come,’ the annual  report emerged from interviews with senior executives at 72 power companies in 43 countries. It found that a good number (45%) of executives are dubious that we will reach energy efficiency targets by 2030.

 

Meanwhile, PwC also says North America and Europe may be heading for a  blackout watch. Remember those? Such warnings sprang up during the pre-recession era of heady economic growth. With economic recovery, the risk of power shortages again rises, as worldwide energy demand expands from 17,200 TWh in 2009 to over 31,700 TWh in 2035.

 

Energy efficiency is widely seen as the cheapest way to meet at least some of the new demand.  But the report cites two significant problems that hinder efficiency efforts. The first is fossil fuel subsidies; the second is human nature.

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April 25, 2012 | | Tags: , , , , , | 3 Comments »

Business Intelligence for utilities: Five planning strategies

Skip LaitnerBy Chris Lewis
Guest blogger, Energy Efficiency Markets
March 28, 2012

 

Business Intelligence is not a new concept to utilities, as the analysis of data is as entrenched in every utility as the concept of providing safe, reliable and affordable power. However, the unique challenge facing utilities today is that there is exponentially more data, from more advanced sources, and dispersed to many more functional areas of the organization.

 

Utilities are operating in a new smart grid environment where they must start examining Business Intelligence and Analytics as a core competency. Careful planning and strategies need to be put in place to ensure data quality, manage and support system integrations, and ultimately determine the level of engagement of the customer.

 

Cognera conducted research in this area and surveyed investor-owned utilities, co-operatives, and municipally owned and operated utilities, and found some interesting facts:

 

  • Almost 70% of respondents with advanced metering infrastructure installations planned to use the data for purposes other than billing and specifically for a Business Intelligence application.
  • The most preferred single source for Business Intelligence software was within the actual provider of the AMI system themselves (50%), followed by a desire to see meter data management systems (25%) and customer information systems (15%) provide the Business Intelligence function.
  • 70% of respondents said that they are currently unsure or would be using a combination of systems to provide the analytics and reporting required.

 

Five planning strategies for Business Intelligence

If you are part of the 70% unsure about Business Intelligence, consider the following as you begin the planning process.

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March 28, 2012 | | Tags: , , , , , | 1 Comment »

All sustainability is local

Elisa WoodBy Elisa Wood
March 15, 2012

 

“All politics is local.” This quote from the late US Congressman Tip O’Neill continues to frame political strategies today. It turns out his premise also applies to environmentalism. All sustainability is local, as a Massachusetts software company reveals in a new application that takes on the complicated task of quantifying the green efforts of corporations.

 

Massachusetts-based Energy Points has devised a sustainability algorithm that considers location, right down to the zip code, in sorting the many variables that reveal how well a company performs environmentally. What’s most sustainable in one location might not be so important elsewhere. For example, installing LED lighting could be wise move for a Massachusetts operation, but a company in the Mojave Desert might be better off with a new water management system, says Energy Points founder Ory Zik.

 

We tend to use the terms ‘sustainable’ and ‘green’ loosely, and they have become more advertising slogans than clear descriptions. Energy Points says it overcomes this problem by measuring sustainability “on math not myth.”

 

More specifically, the company takes its cue from Weight Watchers by reducing a complex set of calculations into a simple point system. Energy Points converts a company’s sustainability profile into what it calls an energy per gallon metric, a mirror of the per gallon of gasoline measure that is easily understood by most Americans.

 

But there is nothing simple about the software platform’s data base, which took three years to build. In addition to location, the algorithm considers such variables as a company’s management of fuel, transportation, waste, water and electricity, where resources are used, when they are used, and how they are created, distributed and treated.

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March 15, 2012 | | Tags: , , , , , | No Comments »

Will cyber-sensitives reveal the future of energy efficiency?

Elisa WoodBy Elisa Wood
February 29, 2012

 

The US economy is three times larger than China’s, yet when it comes to developing a clean energy industry, China keeps besting us. The US came in second – again – to China this quarter in Ernst & Young’s much-watched renewable energy ranking released February 28.

 

But there is one clean energy segment where the US leads: demand response.

 

Demand response comes into play when there is high demand for power straining the electric grid, usually hot summer days. Utilities or grid operators give factories and other businesses a payment in return for decreasing their energy use during these peak periods. As a result, demand response not only averts blackouts, but also saves us money, since it is far cheaper to conserve energy when the grid is strained than it is to generate more power.

 

An American-grown industry, demand response is now gaining international attention. EnerNOC, a Boston company that provides demand response services, finds itself increasingly explaining the concept abroad, according to Gregg Dixon, senior vice president of marketing and sales. The company now serves about 12,000 businesses, colleges, hospitals and other large energy users, not only in the US, but also in Canada, the United Kingdom, Australia and New Zealand.

 

Other demand response companies, Comverge, Johnson Controls, Silver Spring Networks, Wipro and Honeywell, also report international expansion, according to Pike Research, which expects the $1.3 billion global market for demand response to see a compound annual growth rate of 37% by 2016.

 

So demand response is clearly a success story, at least when it comes to reducing use of energy by companies and large institutions. The next frontier for demand response is the homeowner. And unfortunately, that might be a tougher market to crack. The average person shows little interest in taking the time to cut back on energy use during peak periods.

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February 29, 2012 | | Tags: , , , , , | 1 Comment »
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