Wednesday, September 28, 2011

CHP: Not the Brad and Jen of energy, but….

By Elisa Wood
September 28, 2011

I hesitate to start this blog with the words “combined heat and power.” You might stop reading.

Okay, so it’s not the Brad and Jen of energy. (That would be solar and wind.) But what it lacks in glamor, it makes up for in constancy and results. It’s an old guy, been around for about a century. And while its name might not sound green, it offers an extraordinarily efficient way to energize buildings.

About once a year, the American Council for an Energy Efficient Economyissues findings that raise the profile of combined heat and power, or CHP, for at least a couple of days.

Why bother? Because despite its ponderous name, CHP is a “Wow” approach to energy, one that people should talk about at parties as much as they do solar these days.

CHP units, often used at universities, hospitals and factories, put to good use the waste heat created in producing electricity. Usually, we just let this heat vanish into the sky. But CHP, a form of distributed generation, reuses the byproduct to heat and cool buildings or assist in industrial processes. CHP can produce energy twice as efficiently as a typical centralized power plant because it provides two energy sources from one fuel. We know it works because, as ACEEE points out, CHP “has been cleanly and quietly providing over 12% of U.S. electricity.”

If it’s so good, why don’t we use more of it? The US is trying – at least some areas of the country.

“CHP markets differ considerably among states,” said Anna Chittum, ACEEE senior policy analyst and lead author of ACEEE’s September 28 report ‘Challenges Facing Combined Heat and Power Today: A State-by-State Assessment.

Do you live in a pro-CHP state? Not if you’re in Alabama, Arkansas, Delaware, Florida, Georgia, Hawaii, Idaho, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, North Dakota, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia, West Virginia and Wyoming.

You do, if you’re in California, Connecticut, Illinois, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania South Dakota, Texas, Washington and Wisconsin.

(You can find an analysis of your state’s CHP markets and policies here.)

CHP’s woes are not simply a result of bad public policy. Local market factors, utility electricity prices and other influences come into play, not the least of which is today’s stalled economy.

Utilities sometimes discourage CHP development because CHP reduces their sales by letting utility customers produce all or part of their own energy. In addition, CHP tends to be “homeless” in the world of energy regulation and advocacy, according to ACEEE. No big, powerful organization devotes itself to CHP. It has no equivalent to the American Wind Energy Association or the Solar Energy Industries Association. (But you can find information on CHP here and here.)

“CHP is not well understood by regulators, not well-suited for renewable energy programs – because it often is fueled by non-renewable fuels – and too expensive for most short-term energy efficiency programs – because its payback period is long and its upfront costs high compared to many other efficiency measures,” said ACEEE. “Consequently, few state administrations or lawmakers have taken up the cause of CHP.”

So CHP has a public relations problem. It’s not only no Brad and Jen, but it also is downright homeless. Let’s start a trend to get CHP off the street. Open up a conversation at a party with, “Hey, how about that combined heat and power…”

And thank you for reading this blog.

Wednesday, September 21, 2011

Energy Efficiency and the Solydra Effect

By Elisa Wood
September 21, 2011

Not so long ago the green energy movement celebrated because President Obama used words like ‘renewable energy’ and ‘climate change’ in his inaugural speech. It was a first for a US president.

Now comes the downside of being a political darling.

Opponents of green energy – or rather opponents of its proponents – are using the collapse of California solar manufacturer Solyndra as weaponry. As Scott Sklar of The Stella Group said in his recent blog, “With politicians throwing brickbats at each other, the green industries are right in the middle dodging these projectiles.”

Sure, Solyndra doesn’t embody the state of the green energy industry – it’s just one company. But the average person rushing to work hears only the thud of the brickbats… something about solar and financial collapse, scandal, expensive green energy and wasteful government spending. They are left with the impression that something is amiss with the world of green energy.

How will this affect the energy efficiency industry?

Energy insiders are quick to point out that in the scope of energy failings, the Solyndra collapse is small. And, of course, solar and energy efficiency are two different industries, even if both are ‘green.’ But those are fine points that most people miss, as they pick up only the background noise about the Solyndra collapse.

That’s the bad news for energy efficiency; the good news is that the industry has been getting a tremendous amount of positive press lately, and it may counter the Solyndra effect. Those reports leave the busy person rushing to work hearing something about energy efficiency jumpstarting a national market, creating jobs, and lowering electric bills. Consider some of this week’s news.

  • The New York Times reported Tuesday that Lockheed Martin and Barclays plan to invest up to $650 million over the next few years to retrofit buildings in Sacramento and Miami using Property Assessed Clean Energy financing. The Carbon War Room put together the consortium, which the article said represents “the most ambitious effort yet to jump-start a national market for energy upgrades that many people believe could eventually be worth billions.” Interestingly, the deal also includes an insurance plan that backs the energy savings. Offered by Energi, such insurance is a relatively new product for the energy efficiency industry and one that could help projects secure financing.
  • Conservation Services Group, a national energy services firm, has signed more than $100 million in new, expanded and renewed contracts, much of it retrofit and weatherization work. The company says it is bucking the ailing economy. Since 2008 CSG’s employment has grown 68 percent, and its revenue has increased from $62 million to more than $100 million.
  • The American Council for an Energy-Efficient Economy found an “extremely” low default rate among energy efficiency loans in a report issued this week. The default rate hovered around 0-3% throughout the life of 24 loan programs studied. It remained that low even during the near collapse of the real estate market. Small commercial banks and credit unions do most of the lending, but bigger banks are now moving into the market. The loan market has barely begun to show its full potential, according to ACEEE.
  • And there is this quote from the New York Times review about Daniel Yergin’s new book, “The Quest: Energy, Security, and the Remaking of the Modern World.” The Pulitzer Prize-winner spends 800-pages exploring the energy industry, and in his conclusion “focuses on the importance of thinking seriously about one energy source that ‘has the potential to have the biggest impact of all.’ That source is efficiency.” The Times goes on to say: “It’s a simple idea, he points out, but one that is oddly ‘the hardest to wrap one’s mind around.’ More efficient buildings, cars, airplanes, computers and other products have the potential to change our world.”

We will soon know whether Solyndra has any lasting influence on public perception or is a news cycle blip. If 10 percent of the population holds an unshakeable belief, a tipping point occurs, and the “idea spreads like flame,” according to a study by scientists at Rensselaer Polytechnic Institute reported by Intelligent Utility. The green energy industry has worked hard in recent years to capture public sentiment. Has it achieved the tipping point? Solyndra will be a test.

Wednesday, September 14, 2011

Squinting toward retirement: A boon for the lighting industry

By Elisa Wood
September 14, 2011

Americans report in surveys that they are likely to retire later than expected as a result of this economic downturn that doesn’t seem to want to quit. While that’s bad news for golf courses and Florida real estate, it helps one industry: energy efficient lighting.

We are squinting, rather than sprinting toward retirement these days. As part of the post-50 crowd, I very much appreciate good lighting in my work space, and I discovered that I am not alone in researching a recent report on lighting.

Why do we geezers need better lighting? A 60-year-old employee’s eyes receive only 40 percent as much light as a worker who is 30 to 40 years younger, according to a paper by Leviton. These older employees tend to dislike the one-size-fits-all lighting of most commercial buildings; in fact, find it stressful.

Lighting is best when tailored to the needs of the individual. This can be done by giving employees manual override of automated lighting, so that they can adjust brightness and color depending on what they are doing in their work station at any given moment. And of course that is one of the features touted by lighting control manufacturers – the ability of consumers to customize lighting preferences.

Why worry so much about worker comfort? Happy workers tend to stay in their jobs, and that saves employers money, says a white paper “Personal Control: Boosting Productivity, Energy Savings” by the Lighting Controls Association. New employees need about 13.5 months on the job to achieve maximum work performance. As a result, worker turnover costs a business about 1.2 to 2 times the salary allotted for the position. Research indicates that workplace design plays a significant role in employee satisfaction. And right now many people dislike the lighting, heat and acoustics of their workplace, even young folk.

Improving lighting doesn’t necessarily mean giving employees their own remotely control light bulbs – although it helps. The Light Right Consortium looked at six different lighting options in a typical office space in Albany, New York. Between 81 percent and 85 percent of employees said they were comfortable with a lighting design that provided direct/indirect lighting and wallwashing. By comparison, designs that provided light only from above received a ‘comfortable rating’ from only 69 to 71 percent of study participants. But the combination that the employees liked most included direct/indirect lighting, wallwashing and dimming controls that allowed workers to customize their lighting. This design won a ‘comfortable’ rating from 91 percent of employees.

Lighting is a booming industry. The use of LED lighting, alone, is expected to grow by 30 percent in 2011 and become a $1 billion market by 2014, according to a study, “Enterprise LED Lighting Research Report,” by Groom Energy and Greentech Media. The study targets the market for commercial and industrial LED lighting. Similar growth is occurring in the lighting controls market. Pike Research sees global revenue for lighting controls rising from $1.3 billion to $2.6 billion by 2016. Businesses, not households, are driving this growth.

Many factors account for the lighting industry’s enviable boom. But one, I think, is that it enjoys a feature most green energy products do not. Efficient and well-planned lighting provides immediate and concrete satisfaction. In contrast, I may really like the idea of my employer installing solar panels, but my senses won’t register a difference in the building’s electricity. In that regard, efficient lighting may be the “cell phone” of energy that the industry has sought for so many years – a product that can attract the mass market and turn conventional technology on its ear.

See Elisa Wood’s report “Energy Efficient Lighting Explained: A guide for business people who aren’t lighting techies”

Wednesday, September 7, 2011

Energy efficiency is so in right now Part II: The delight factor (and more energy puns)

Guest blog by Cara Miale
September 8, 2011

Last week, we looked at how the energy efficiency industry is working on its cool factor (Dare I say sex appeal?), to make clean energy more accessible to the masses.

Perhaps a bikini charger doesn’t make much difference when the grid is under great strain as it was this summer; but it does get people thinking about alternatives that could lead to – or add up to – more important changes.

Time to shed some light on lighting. An energy efficient approach to lighting has gained traction in the commercial world – with wireless controls, dimmers and aclear ROI for building owners. But so far, consumer touch points have largely revolved around bulb efficiency standards – which are dull, governmental and even intrusive.

There are very cool things on the horizon, like Professor Haas’ LED-light-based data transmission, which could feed our hunger for greater capacity for cell phones and all things Wi-Fi. Here are some other lighting innovations that might generate excitement at home (or rather, at your slick downtown condo):

  • Mood lighting made simple. No, please – don’t get up. This LED lightbulb from Sharpcomes with a tiny remote that allows you to turn the bulb on and off, increase or decrease the brightness and even adjust the color temp (for mood lighting, perhaps?) all without lifting a finger (er, ok, barely lifting a finger). Its life is long, its efficiency impressive, but perhaps more importantly – it has novelty potential we haven’t seen since the clap-on, clap-off lamp control. The bulbs start around $40 – not cheap for the average consumer – but then again, what are a couple of Jacksons compared to how smooth you’ll look on date night?
  • Party on the patio. The Oasys from Sol is a complete unit that houses their aiSUN controller, batteries, and LED fixture. When darkness falls, the party doesn’t have to end: reliable light (and again, spiffy dimming capabilities) can be yours. Although we must say, their website needs a few tips on more accessible language if they’re going to get through to us.
  • Energy on display while you’re away. These days, being cool is not always about how much money you can spend – you also get bragging rights for snagging great deals (hence the Groupon boom) and saving money. The PowerCost Monitor is an inexpensive, DIY system that reads home electricity usage and transmits it to your iPhone or iPad – so you can see how much energy your pad (your house, that is) is gobbling while you’re away. You can slice and dice your data and track usage in kilowatt-hours (zzzzz) and in dollars and cents (even better).

Blue Line Innovations and People Power have also done a great job of connecting with the consumer market – they not only use mobile apps to drive their technology; they’re also all over social media, and recently moved their technology to the cloud through a partnership with PlotWatt for real time updates. They even use video to explain their product activation to users.

These are a few of my favorite, cool energy gadgets. Do you know others? Let’s encourage the trend; post in the comments section here any you’ve come across.

Cara Miale is a freelance writer in Denver, Colorado and a frequent contributor to Energy Efficiency Markets.

Thursday, September 1, 2011

Efficiency is so in right now

Guest blog by Cara Miale
August 31, 2011

In the movie The Social Network, Facebook founder Mark Zuckerberg doesn’t want ads on an early version of his social network; he understands that first and foremost, his site has to be cool. And ads, he says, aren’t cool.

Unlike Zuckerberg (well, at least in the beginning), the energy efficiency industry hasn’t quite grasped the value of being cool. It’s an industry that hopes to be popular because it’s right, and it uses less-than-sexy language like “demand-side management” and “load following device” to describe itself. Sure, being “green” seems to have taken off, but when it comes to efficiency, well, it’s hard to build a cool brand around an industry that so loves its technical jargon.

Luckily, the industry is beginning to wake up. This week and next we’ll take a look at how the energy efficiency industry is working on its cool factor. No pun intended.

Gadgets like portable music devices, smart phones and cameras have long been must-haves for the “it” crowd. And next, charging them in unique and efficient ways will be the rage.

Enter the itsy-bitsy, teenie-weenie, photovoltaic bikini – proof that form-meets-function stands a chance beyond the energy nerd. We’ve seen the solar-charger backpacks, laptop cases and other wearables like military uniforms – but nothing says sexy like a chick in a bikini.

That may be why designer Andrew Schneider came up with this hot little number: a custom-made solar bikini retrofitted with 40 1×4” PowerFilm Solar photovoltaic film strips that are sewn together with conductive thread and end in a USB port.

That’s right – even beach babes care about energy efficiency. A gal in a solar bikini can generate enough energy to charge her iPhone with an output similar to that of a laptop’s USB port – and look good while doing it. Since no energy is actually stored in the bikini, wearers can still take an “unplugged” dip and return to charging when the suit is completely dry.

Ok, so perhaps solar panels need some time before they’re sexy enough for the runway. But the intention behind the swimsuit suggests we’re headed in the right direction: there are easy, fun and energy efficient ways to support that hip lifestyle of yours.

And speaking of, if you’re looking for something form-meets function but with a little more coverage, stay tuned for iDrink – men’s solar swim trunks with enough surface area to keep your drinks cold.

Final note: A very limited number of suits are available from Solar Coterie, although you might have to skip the snow cones if you want one. The cost of the solar bikini will range from $500-$1,500 and up, depending on the design.

Cara Miale is a freelance writer in Denver, Colorado and a frequent contributor to Energy Efficiency Markets.