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.

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

How to become energy efficiency’s #1

Elisa WoodBy Elisa Wood
May 10, 2012

 

It’s easy to get the impression that technology game-changers happen in a near flash. And the stories of Facebook, Google, Microsoft and Apple leave us thinking that genius pops right out of the dorm room.

 

But in the energy industry it’s not that easy. The innovation we see today often stems from years of late nights, deep discussion and hard negotiation.

 

Take, for example, the Massachusetts story. The American Council for an Energy Efficient Economy named it number one for energy efficiency in October. You may wonder, how did that happen? Why not California –  isn’t it the greenest of states?

 

But for Steve Cowell, chairman and CEO of Conservation Services Group,  it was no surprise to see Massachusetts rise to the top. Cowell has been on the inside of the state’s energy efficiency scene for decades, going back to when he worked for former Governor Michael Dukakis in the late 1970s. He was there when the groundwork was laid to bring Massachusetts where it is today.

 

Cowell cites a pivotal event in the mid-1980s A group of influential activists, thinkers and utility leaders converged in the state, ready to bring efficiency to the forefront.  Their names weren’t necessarily recognizable then, but today several are national leaders in the energy arena: Jon Wellinghoff, Steve Nadel, Rick Sergel, Peter Flynn, Doug Foy, Armond Cohen, Alan Nogee, Ralph Cavanaugh, Mary Beth Gentleman, Clare Moorhead, Timothy Stout, Bob King, Joseph M. Chaisson, Rachel Greenberg, Brad Steele.

 

And then there was John Rowe, CEO of Exelon, now arguably one of the power industry’s most influential figures. Back then, he headed a smaller utility called  New England Electric System (later absorbed by National Grid.) Rowe directed a legendary challenge to the group that would frame the region’s direction. “I’m the rat, show me cheese.” In other words, give utilities a financial incentive to pursue energy efficiency, and they will do it.

Share
May 11, 2012 | | Tags: , , | 2 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.

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

How do we create an ethical grid?

Housley CarrBy Housley Carr
Guest Blogger, Energy Efficiency Markets
April 18, 2012

 

So much of what’s discussed in offices these days – and forever really – focuses on this: What’s best for the company? How do we increase profits?

 

That’s totally understandable, given that a primary responsibility of any for-profit enterprise is to benefit its owners and investors. Still, as individuals, and I would argue, as part of the capitalist system, we have responsibilities that go beyond improving the financial bottom line. Most of all, we have a duty to be ethical.

 

The initial thought of almost everyone in business or government when the issue of ethics comes up is, “Oh, I’m ethical in everything I do. I follow the letter of the law.” But there is much more to it than that, and the energy efficiency sector of the US electric industry provides a perfect example.

 

When it comes to ethics, there are three ways of doing business: immorally, amorally and morally. The immoral approach is based on pure selfishness; the goal of immoral managers is profitability and organizational success at any price.

 

The amoral approach, which is unfortunately a dominant one in US business, focuses on what can be done legally to maximize profits. Amoral managers may be well-intentioned, but they don’t give a lot of thought to what their decisions mean to others. They lack empathy.

 

Moral managers are different. They run their thoughts and plans through another filter before making a decision. They ask, “Is what I’m doing fair to others? Is it just?”

 

My definition of an ethical grid flows from that. To me, an ethical grid is an electric industry in which the rights and responsibilities of utilities are carefully and properly balanced with legitimate interests of power consumers, the environment and society at large.

Share
April 18, 2012 | | Tags: , , , | 1 Comment »

Debunking efficiency misconceptions

By  Scott Schnelle
Guest Blogger, Energy Efficiency Markets
April 11, 2012

 

Your clients may hold some common misconceptions about how to begin conserving energy in their homes. In this article, I hope to debunk a few of those misconceptions. An audit from a company like EnergyLink is a good place to begin; it shows homeowners where to concentrate.

 

A report called Driving Demand for Home Energy Improvements looked at successful and unsuccessful energy efficient programs across the country. Here are a few common illusions that prevented programs from being as effective as possible.

 

Misconception 1: People get energy efficient improvements just to save money.

There are a number of reasons that people cite as to why they want to improve the efficiency of their homes. These reasons include cutting down on waste, stimulating the economy, achieving tax incentives and just plain being kinder to the earth.

 

Misconception 2: Solar panels and expensive installations are the only way to improve efficiency.

There are many things your clients can do to cut back on the amount of energy they use: air seal their windows and doors, install insulation or energy efficient lighting and replace windows and seal ducts. They might also replace air conditioners, hot water heaters and washers and dryers that are past their prime with more energy efficient models.

Share
April 11, 2012 | | Tags: , , | No Comments »
« Older Entries