Is Occupy Wall Street occupying the wrong street?

Elisa WoodBy Elisa Wood
October 26, 2011

My Dad and I have a running joke when we’re in the car together. “Look,” he’ll say. “Gas is cheap. It’s down to $3.39.” Cheap, he means, compared with the month before when it was $3.79 per gallon.

The joke illustrates a good point. A few years ago we were flabbergasted by gasoline prices that exceeded $3 per gallon. Now we’re really happy when it doesn’t hit $4 per gallon.

When it comes to energy, we’re like frogs in water coming to a slow boil. We’ve gotten so accustomed to high oil prices, we don’t notice anymore that we’re cooked.

In my two decades writing about energy, this is one of the most poignant facts I’ve run across: Oil price spikes preceded 10 of our 11 last recessions.  This statistic portrays in a nutshell the grip that petroleum holds on us.

Don’t get me wrong, I’m not letting the banks off the hook.  But by focusing so much passion on the banks in casting blame for today’s economic downturn, is Occupy Wall Street letting a major culprit slink off unnoticed down the alley?

The Econbowser.com, source of the 10 out of 11 stat, says that in 2008 high oil prices caused a drop in overall spending, which served as “the knockout punch for an economy that was already wobbly.” The article goes on to say that “there’s no question that more favorable fundamentals are exactly what we would have had if the price of oil had never gone over $100 a barrel.”

But there’s good news too. When oil prices are high, the innovators emerge. And that’s what is happening today. Over the last few months I’ve run into some pretty intriguing – possibly game changing – new energy technologies. Here are a few.

This week I interviewed Riggs Eckleberry, CEO or OriginOil, a company that has found a highly efficient way to harvest algae and extract its oil, a process that takes advantage of algae’s sensitivity to electrical fields. The approach promises to save both energy and water in processing algae. As Eckleberry puts it, algae is a renewable “petroleum that is being made fresh instead of fossilized.” He sees algae becoming an important part of the energy mix in the short-term and a serious competitor to petroleum in the long term.

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October 27, 2011 | | Tags: , , , , , | No Comments »

What’s Denver doing on the EV-Ready list?

Cara Miale

Guest Blog by Cara Miale
April 20, 2011

Looking at the list of the most EV-ready cities just released by Ford, it’s no surprise many of them are coastal. On the east and west coasts energy is pricey, so the pressure is on to achieve innovation that will control costs and reduce dependence on fossil fuels.

But what’s up with Denver out there in the middle of the map, all by its lonesome?

Government leaders in Colorado, and Denver specifically, have long been committed to sustainability and energy efficiency. Denver has worked hard over the years not only to position itself as a national leader in sustainability, but also to lead by example.

Denver was home to the first “Green Fleet” of city-use vehicles in the early 1990’s, which now includes 138 hybrid electric vehicles. The city hosted the greenest Democratic National Convention to date, and shows continued focus through clean-energy legislation. Its concentration of clean-energy workers and companies is on the rise, and Colorado continues to attract more venture capital financing for clean-tech start-ups than nearly any other state.

And, we’re not so alone after all. Denver is also participating in a U.S.-China “Eco Partnership” sponsored by U.S. Department of the Treasury, which is focused on the implementation of electric and plug-in hybrid vehicles.

On the forefront of the EV-push is the Colorado Plug-In Working Group, which engages communities (like Denver and Boulder), government and private businesses to facilitate EV market growth. Current members are no strangers to the scene: Xcel Energy, the National Renewable Energy Laboratory, the Rocky Mountain Institute, Denver Metro Clean Cities Coalition and the Governor’s Energy Office.

In putting together its list of EV-ready cities, Ford looked at several criteria including complementary state and regional activities. Of these, Denver has no shortage:

  • Intellectual resources abound. Colorado’s universities are actively researching how to increase efficiency of electricity generation and transmission and testing smart grids, and collaborating with Colorado-based national labs.
  • Greenprint Denver was established by then-Mayor Hickenlooper to position Denver as a national leader in sustainability and integrate environmental impact considerations into the city’s programs and policies.
  • The Utilities & Transmission Program at the Governor’s Energy Office (GEO) has its sights set on working with utilities to increase the proportion of demand-side management within their resource portfolios.
  • Denver P2 Partners, a pollution prevention program, works with small businesses to increase participation and adoption of sustainable practices that go beyond compliance. It’s developed industry-specific criteria to target environmental issues and concerns specific to auto repair shops. Reducing transportation pollution is one of five criteria that auto repair shop must address to maintain certification through the program. While “educational training on hybrid and alternative fuel vehicle maintenance” is listed as an elective criterion, a partnership with Denver P2 Partners could be easily expanded and used to enlist auto repair shops to support EV implementation. 
  • Voluntary Ozone Reduction program. The City & County of Denver’s Environmental Transportation Coordinators hit the streets during critical summer months to educate employees about ozone pollution and  ways to reduce ozone levels.
  • Recharge Colorado Rebate Program has pumped more than $90 million into the Colorado economy since late April 2010.
  • A year ago, Colorado company UQM Technologies received a $45 million grant from the American Recovery and Reinvestment Act to expand operations of its electric motor factory, accelerating electric vehicle projects across Colorado.
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April 20, 2011 | | Tags: , , , , | No Comments »

Electric Cars and the Kindness of Strangers

Cara Miale

Guest blog by Cara Miale
March 23, 2011

As if we don’t have enough phobias already, now there is range anxiety, a malady brought on by the electric car. But it’s okay; there is a cure, or rather an app for that.

Studies indicate that many electric car drivers – and those considering joining the ranks – suffer the fear of running out of power and being stranded with a dead battery. A little planning ahead could take the pressure off; there are an estimated 1,400 vehicle charging stations in the United States today and the number is growing. Even though most people drive less than the 100 miles a day allowed by many EV’s, range anxiety remains a logistical – and largely psychological – impediment to widespread electric vehicle adoption by consumers.  One 2010 study showed range anxiety even caused EV drivers to modify their driving behaviors, decreasing the travel range and limiting most trips to no more than 25 miles.

Several companies have stepped up to ease the pain. The navigation system in the new electric Ford Focus finds electrical charging stations nearby and can help the driver conserve power by suggesting turning off the A/C or taking a more leisurely route. Google Maps, in partnership with the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) recently added electric vehicle charging stations to its popular platform, allowing users to search for and pinpoint more than 600 charging stations.

PlugShare, a new free app from Xatori, goes one step further with a personal touch: users can find home charging stations close by, and even list their own as a safe-haven for range-anxious drivers. PlugShare works with iPhone, iPad and iPod Touch, and you don’t need an EV or a special outlet to join. Accounts are customizable; those who wish to share can list their name, number and address as well as what types of energy they have available and where to find it (like the garage). The integrated app uses handy icons to identify private and public standard outlets, EV plugs and charging stations. With just a few clicks, you can identify the nearest charging station, call or text the person who listed it, and get directions. PlugShare hopes to launch a study of the app’s impact on the environment so users can celebrate the positive impact they’re making, not unlike other resource-sharing models like Denver B-cycle (members can track their miles ridden, calories burned, carbon off-set and money saved – and compare their stats to other members of the B-cycle community).

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March 23, 2011 | | Tags: , , , , , , | No Comments »

Electric vehicles: A win for Detroit and EE

By Reid Smith

At this week’s Detroit Auto Show, electric vehicles are on top. Two of the year’s highest-rated cars are electric. The plug-in hybrid electric Chevy Volt was awarded this year’s “Car of the Year,” just beating out the all-electric Nissan LEAF.

But regardless of which car wins, the message is clear: electric cars are generating a lot of excitement.

It’s not just the auto industry that will benefit. The EV industry offers growth to other industries as well, including the energy efficiency sector.

Utilities win because a growing electric auto fleet means more use of electricity to replace gasoline. GM sold between 250 and 350 Chevy Volts in December and Nissan has sold fewer than 10 LEAF sedans in the past two weeks, which means utilities need to begin thinking about how they will manage growing demand as more EVs hit the market. One way utilities can manage additional load is through energy efficiency programs, special energy pricing rates, and demand response.

Both GM and Nissan are selling their electric vehicles in selected test markets. The utilities in these test markets have been preparing energy management strategies and are now starting to collect the first real electric vehicle energy data. “Our role is to do everything we can to make EV’s successful,” said Chris Chen, market development manager for San Diego Gas and Electric, a test market for the Nissan LEAF. http://www.intelligentutility.com/resource/demand-webcast/electric-vehicles-tale-three-cities

The new data will tell utilities when consumers are charging their electric cars and how much their use will affect the grid. Because less energy is generally used at night, the existing electric infrastructure and power load can accommodate the extra energy required from electric vehicles, at least for a few years, if customers charge at night as expected. Utilities plan to encourage customers to charge their cars at night and to manage energy use to maximize the current grid’s potential.

One utility, San Diego Gas and Electric, is trying out three rate-incentive pricing schemes in different areas of its service territory. “We are trying to see if lower off-peak rates will encourage different charging patterns,” said Chen.

Another utility, DTE Energy in Michigan, is educating consumers about energy use and time-of-day rates through special energy workshops and sessions for businesses, partners, and consumers, said Jeff LeBrun, principal marketing analyst at DTE Energy.  Michigan is also the headquarters to several battery manufacturers, which are growing along with the electric vehicle industry. LG Chem, one Michigan battery company, is the chosen manufacturer for both the Chevy Volt and Ford’s electric Focus, set to be released later in 2011.

Utilities such as San Diego Gas and Electric are also looking at demand response programs designed specifically for electric vehicles. As more and more vehicle charging stations are installed, demand response programs can help manage surging energy loads and peak loads. It’s likely the demand response market will develop with the electric car market.

But how fast will the electric market grow? Will your next car likely be electric?

Right now, utilities project that electric vehicles will develop slowly because car companies are limiting the number of units sold and are gradually ramping up production.  A slow-growing industry is good for utilities, which have time to test different electric vehicle adoption and energy management strategies. Limited expansion is good as long as consumer demand continues. About 50,000 people are on waiting lists for electric vehicles.

Consumers will adopt electric vehicles as long as utilities make the transition to ownership a positive experience. In many ways the success of the electric vehicle industry ultimately depends on the utility’s ability to manage energy and promote energy efficiency, thus being able to provide electric vehicle owners with the proper energy infrastructure and simplicity that they demand.

Visit Reid Smith at www.realenergywriters.com and pick up his free weekly newsletter and podcast.

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January 12, 2011 | | Tags: , , , , , , , , , | No Comments »

Electrifying vehicles: A car and its drama

By Elisa Wood

July 15, 2010

Who will play the lead character in Who Revived the Electric Car?, the sequel that is bound to be made to the famous documentary, Who Killed the Electric Car? http://www.whokilledtheelectriccar.com/.  Many are vying for the role: car manufacturers, battery producers, scientists and now the Obama Administration.

The White House issued a report July 14 that credits federal stimulus money for the rapid drop in costs for electric cars. http://www.whitehouse.gov/files/documents/Battery-and-Electric-Vehicle-Report-FINAL.pdf. Once written off as a technological mishap, the electric car now appears nearly road ready for American consumers. The price tag is dropping rapidly, in part because of the $12 billion the federal government has pumped into alternative vehicles, according to the report. Of that $5 billion went to electrifying the US transportation fleet.

Electric cars will cost between $25,000 and $35,000, after tax credits, by the end of this year, says the White House. That’s down from $100,000 before passage of the 2009 American Recovery and Reinvestment Act. Electric cars are dropping in price because stimulus-funded manufacturers are producing batteries more cheaply.

Not long ago, it cost $33,000 for the battery of an electric vehicle with a 100-mile range. The Department of Energy expects the cost to drop by half between 2009 and 2013. By the end of 2015 some batteries should cost $10,000. The price of batteries for plug-in hybrid vehicles, or PHEVs, is falling quickly too. PHEVs can travel 40 miles on electricity and then automatically shift to gasoline. Priced at about $13,000 in 2009, the PHEV batteries are expected to cost only $6,700 in 2013 and $4,000 in 2015, according to the DOE.

The new electric car is seen as a way to reduce reliance on oil, which now supplies 95% of our transportation fuel. But the electric car has several interesting side stories as well.

Electricity is cheaper than gasoline. So, consumers should find themselves paying the equivalent of only $1/gallon to fuel electric cars, according to the National Renewable Energy Laboratory. http://www.nrel.gov/docs/fy07osti/41410.pdf. In coming up with that figure, NREL assumed it will take 9-10 kWh per gallon to operate a typical mid-size car, with vehicle efficiency of 2.9 mile/kWh. Researchers also assumed an electricity cost of 9.4 cents/kWh as the cost of electricity. While that is a fair average, the truth is that the price of electricity varies significantly nationally, and the cost of driving an electric car will vary accordingly. For example, in North Dakota electric rates run about 7 cents/kWh, while in Connecticut they are 19 cents/kWh.

Keeping operating costs low will depend on wide-spread implementation by utilities of time-of-use pricing, and of consumer willingness to take advantage of electricity at bargain times. Prices for electricity fall at night when demand diminishes. Electric grid planners are hoping consumers will charge their cars at night. Otherwise we may have to build more power plants to accommodate the cars, and that will negate some of their environmental and cost savings. Time-of-use pricing, which reflects lower night-time costs, should help encourage consumers to plug in at night. But consumer behavior is hard to predict.

Another side story is that the electric vehicle gives consumers a chance to act as power producers. The car batteries can store power which consumers can sell back to their local utility, possibly at high prices if done when the grid is in short supply.

And finally, it looks like the electric car will help the US create manufacturing jobs. The White House report says that in 2009, we had only two factories manufacturing advanced vehicle batteries. Those factories produced less than two percent of the world’s advanced vehicle batteries. By 2012, the US should have 30 factories with a 20 percent market share and by 2015 a 40 percent market share.

Should all this come to be, it is hard to say who will get the credit. What’s clear is that the story offers lots of happy endings to today’s energy woes. Here’s hoping it is a tale told true.

Visit www.realenergywriters.com to pick up a free Energy Efficiency Markets podcast and newsletter.

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July 16, 2010 | | Tags: , , , , , , , | No Comments »
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