Thursday, August 26, 2010

Energy Star failings: Much ado about something

By Elisa Wood

August 26, 2010

As suspected, Energy Star appliances do not always live up to their energy savings claims, according to preliminary results of laboratory tests reported his week by the US Department of Energy (DOE).

The DOE began testing the appliances after watchdogs raised serious questions about the federal labeling program. The Energy Star seal appears on hundreds of models of refrigerators, air conditioners, clothes washers and other appliances as proof to consumers that the products meet government standards for energy efficiency and performance.

But because manufacturers self-certify their products, the program is “vulnerable to fraud and abuse,” alleged the federal Government Accountability Office in a March 2010 report. http://www.gao.gov/products/GAO-10-470/. In response, the DOE, which runs Energy Star with the US Environmental Protection Agency, hired four independent labs to test actual energy savings against manufacturers’ claims.

Richard Karney, program leader in testing and verification for the DOE Buildings Technology Program explained findings from the first round of testing in a webinar Aug. 24.

The DOE purchased the appliances directly from stores, and the labs tested to see if they achieve savings within 5% of their claims. With over 40% of tests complete, the DOE reported failure by 16% of the refrigerators, 18% of clothes washers and 29% of room air conditioners.

To be fair, the tests also revealed that a fair number of appliances exceed Energy Star savings requirements.

So what happens now?

The DOE has informed manufacturers who failed in the first round of testing. Next, the federal agency will purchase additional appliances and retest the failed models. Manufacturers can choose to pull their models from the second round of testing. All appliances that fail a second time, or are pulled from the program by manufacturers, will be reported to the EPA for enforcement action. The EPA may then strip the appliances of the Energy Star label.

The EPA will make public the products that are disqualified. It will not name those that passed the test out of concern they will gain unfair market advantage over those appliances that have yet to be tested, Karney said. The DOE plans to test 20% of Energy Star appliances annually with the goal of evaluating all models over five years.

The initial findings underscore the importance that the efficiency industry establishes best practices to verify energy savings, a task that has haunted it for years. The nation’s new emphasis on green energy places efficiency in the spotlight, a good thing if the industry performs, a bad thing if it stumbles. The DOE is especially concerned about verification for appliances because the federal government has allotted $300 million to states for appliance rebate programs.

Cognizant of the problem, private industry groups are wisely stepping up to measure and verify energy efficiency for products and buildings, most recently the Association of Home Appliance Manufacturershttp://www.aham.org/ht/a/GetDocumentAction/i/49947.

Such self-policing is crucial to the industry’s longevity. The green energy movement has enemies who would love to portray it as a fraud. Providing consumers with accurate data is the only way to counter them.

Labs testing Energy Star appliances

  • BR Laboratories
  • CSA International (Toronto) and CSA OnSpeX (Cleveland)
  • Intertek Testing Services
  • Springboard Engineering

Elisa Wood is co-author of “Energy Efficiency Incentives for Businesses 2010: Eastern States,” http://www.realwriters.net/rew/rtlnkpr.htm.

Thursday, August 19, 2010

Northeast US a smart energy testing ground

By Elisa Wood

August 19, 2010

Ben Franklin’s saying, “Out of adversity comes opportunity” seems to characterize the energy sector in US Northeast. Electricity rates are among the nation’s highest. Population density leaves scant room for new power plants and transmission lines. And the region has little indigenous generation fuel.

So what’s the good news?

“This is why a very large and well spent push for energy efficiency and energy conservation has taken place in the Northeast,” says Ron Tabroff member of the Institute of Electrical and Electronics Engineers (IEEE) and former chairman of its Power & Energy Society, Boston Chapter.

In fact, the Northeastern states make up a large portion of a thriving East Coast energy efficiency market, spurred by about $8.6 billion in incentives being distributed by utilities and state and local governments, according to “Energy Efficiency Incentives for Businesses 2010: Eastern States” by RealEnergyWriters.http://www.realwriters.net/rew/rtlnkpr.htm

IEEE is an organization known for its love of technological advancement – it publishes nearly a third of the world’s technical literature in electrical engineering, computer science and electronics. So it is little surprise that IEEE has a keen eye on the emerging smart grid and the new openings it creates for energy efficiency.

Real-time meters, appliances that ‘talk’ to the grid, and other smart applications offer both macro and micro remedies to the kind of strain and high prices faced by the Northeast electric grid, Tabroff says.

On the macro level, if these devices curb peak usage of electricity, they should result in less need to build and operate expensive peaking generators. That means less pressure to raise electricity rates, now up to 19.4 cents/kWh for households in Connecticut, the Northeast state with the highest rates and second in the nation to only Hawaii.

On the micro level, the consumer will have the ability for the first time to purchase electricity on sale. Digital displays placed in the home will reveal the ups and downs in electricity pricing over the course of the day. You can choose to do your laundry when it’s cheap, or cut back on air conditioning when electricity prices are high.

Smart meters are now making their way into Northeast households through pilot programs. A big question to be answered is whether or not people will take the time in their busy lives to act as personal electricity managers. Tabroff is confident consumers will as they “make the link between these devices and their electricity bill.”

And if they do not, no worries. Down the road, technology geeks are figuring out how to solve that one too. The next wave of smart electrical devices will act as our personal electricity shoppers. These include refrigerators programmed to defrost when electricity prices are cheap and dishwashers instructed not to turn on until the electric grid offers up a good deal.

The opportunity is great for engineers and energy service companies in the Northeast, where support is strong for new smart energy programs . The large investment the region is making into these technologies make it a testing ground. It’s a region for the world to keep an eye on.

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Thursday, August 12, 2010

Export opportunity for US energy efficiency?

By Elisa Wood

August 12, 2010

For a long time the energy efficiency industry operated largely under the two-guys-and-a-truck-model: local businesses made up of small contractors.

Then the ‘super’ energy efficiency service companies (ESCOs) emerged, big operations taking on big contracts often for government, schools or hospitals, like the $35 million deal that Pepco Energy Services signed with the Prince George’s County Maryland Public Schools this week. http://www.pepcoenergy.com/

The US energy efficiency industry has continued to expand. Is it ready, now, to make serious headway exporting goods and services into international markets?

The International Trade Administration seems to think so. Anna Chittum, research associate for the American Council for an Energy Efficiency Economy, says in her blog that the ITA has been seeking comment on a national export strategy for both renewable energy and energy efficiency. http://www.aceee.org/blog.

Part of a federal goal to double exports by 2015, the strategy is due to the Obama administration in September.

What might US energy efficiency companies export?

Possibilities are discussed in the 2010 Energy Industry Assessment, posted on the ITA Energy Team Home page. http://www.ita.doc.gov/td/energy/

The report points out that little export of energy services has occurred so far, although some US companies have established a foothold in international markets, such as Rockwell Automation, Honeywell, and Johnson Controls. But the potential is large for US ESCOs, especially in parts of the world where demand for energy is rising and reliability questionable. China and India are obvious candidates.

Export opportunity also may exist for companies that develop district energy and combined heat and power, according to industry assessment report. China, the Middle East, and India are prime markets. For example, China plans to invest $360 billion over the next decade in district energy and US companies could capture at least $8.2 billion in sales, the report says. The Middle East is expected to invest $7 billion in district energy over the next decade and $15 billion over 20 years.

Of course, obstacles exist for U.S. companies in these markets. The report points out lack of protection for intellectual property, particularly in India and China, and demands for unconditional guarantees on letters of credit, and in some cases, no cap on economic losses in contract guarantees.

Should the export strategy work, large ESCOs may find a wealth of new prospects. Of course, at home we will still need two-guys-and-a-truck, much like the HVAC contractor (one guy and a truck) who installed the new efficient heat pump in my home — and to whom, I must say, I am deeply grateful when I open my electric bill now and see it has dropped by half.

More information about the ITA’s export strategy is available at this US Department of Commerce page http://www.ita.doc.gov/td/energy/. Insight into the global energy efficiency market can be found here:http://www.globalbusinessinsights.com/content/rben0238m.pdf.

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Thursday, August 5, 2010

Congress: Start the energy revolution without me

By Elisa Wood

August 5, 2010

Congress has considered some big plans for energy since Obama took office: carbon cap and trade, renewable and energy efficiency standards, cash for caulkers. But at this point it looks unlikely Congress will make any major policy changes this year; next year doesn’t look so good either.

But maybe it doesn’t matter.

The energy revolution is already underway in the US, led by states and fueled by entrepreneurs, advocates, and forward thinkers.

Here is some evidence of what’s happening in the states, even without new federal laws. The Presidential Climate Action Project (PCAP), a foundation-funded organization of Natural Capitalism Solutions in Boulder, Colorado, issued a report August 5 that notes:

  • More than 30 states representing two-thirds of the US population have their own climate action plans or are developing them
  • A similar number have renewable energy portfolio standards
  • Three regional cap-and-trade systems are underway or being developed
  • States have created their own appliance efficiency standards, vehicle efficiency standards and fuel standards
  • Twenty-three key state policies could influence 90% of U.S. greenhouse gas emissions, according to the Center for Climate Strategies

It appears the US is developing a defacto national energy policy without Congress. PCAP is taking this idea a step further; it recently issued a list of five energy actions Obama has the authority to pursue without Congress.

The first on the list calls for Obama to work with the states and local governments to create a national roadmap to the clean energy economy, a project that is likely to be more about connecting the dots than drawing new highways. The proposal includes seeking new “energy transition partnerships” between state, local and federal agencies. It also includes defending state and local powers against preemption by Congress, except when a uniform national policy is clearly in the national interest.

“At the top of our list is a full partnership between all levels of government in the United States to build the clean energy economy,” said Terry Tamminen, former secretary of the California Environmental Protection Agency and special advisor to California Gov. Arnold Schwarzenegger. “The Senate has debated whether to preempt some of the states’ power to deal with climate change. Instead, the federal government should help states expand the leadership they have shown for more than a decade.

PCAP also calls on Obama to declare a war on energy waste, reinvent national transportation policy, eliminate fossil energy subsidies that are under his control and restore ecosystems as a climate action strategy.

The group is hoping Obama will adopt the recommendations in preparation for November’s international negotiations on a global climate treaty in Cancún, Mexico. He may arrive without a mandate from Congress, but the states appear to be speaking loud and clear.

The full report is available here: http://www.climateactionproject.com/

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