New direction for that federal agency whose name I can’t remember

By Elisa Wood
November 17, 2011

The US Department of Energy’s reputation is now enshrined as the agency that Republican presidential contender Rick Perry wants to dismantle – if only he could remember its name. But a recent report by the American Academy of Arts and Sciences offers a different direction for the federal agency, one that may not make it more memorable, but a bit more people-centered.

The academy tackles a problem that beguiles the energy industry. Now that we have the technology that lets householders take more control of their energy destiny, how do we inspire them to do so?

The question is central to energy efficiency efforts because smart technologies, such as home energy displays and cell-phone controlled thermostats, offer new ways to save energy. A lot of energy – and therefore money – is at stake. Homes account for about 30–40 percent of US energy consumption. So cutting household energy use by just 20 percent would reduce total national energy use 7.5 percent, according to the report.

We can blame the energy industry for our lack of interest in home energy management, or credit the industry, depending on how you look at it. Utilities have done their job too well. Energy flows invisibly into our homes. Or as Steven Koonin, DOE undersecretary for science, says in the report: “One of the great triumphs of modern society is that we’ve hidden the infrastructure. Nobody really understands where electricity, gas, or water come from.”

Now that we want people to be aware, how do we make energy infrastructure visible, at least psychologically?

The academy says it’s time for the energy industry to seek answers within the social sciences, a realm it’s rarely delved into. Drawing from a two-day workshop the academy held in May, the report highlights several places were human nature and energy realities collide.

• People don’t trust government or institutions. In fact, trust in almost every major American institution has declined since the 1960s. But our trust can be re-won, albeit not easily, if we’re invited to participate in the creation of policy and programs.
• Humans are not rational. We make decisions based on incomplete information or the advice of trusted acquaintances who may not know much. Arguments by industry experts won’t win us over, but we may start saving energy if we think it will enhance our social status.
• An energy efficiency paradox exists. Even if people can save money, they may not pursue energy savings. Part of the problem is a perception that energy savings technologies lack quality, as in misconceptions that efficient lighting must be hard on the eyes.
• Making our homes more energy efficient needs to be easy, and is often not. “Poor marketing, delayed incentives, burdensome paperwork, and uncertain product quality” characterize too many home retrofit programs, says the report.
• Even if energy efficiency produces long-term savings, people often will avoid spending the money on retrofits or new appliances if upfront costs are high.

There are no easy answers here. The report recommends that the DOE’s number crunching arm, the Energy Information Administration, begin gathering data that will help social scientists figure out why and how we consume energy. The report acknowledges, though, that any attempt to expand the DOE to do this work may be met with political resistance at this time.

For those interested in the topic of energy and human behavior, look to more information likely to emerge later this month from the annual Behavior, Energy and Climate Changeconference that will be held in Washington, DC.

Elisa Wood is a long-time energy writer whose work can be found at RealEnergyWriters.com.

Zero touch energy audit: Will it change the game?

By Elisa Wood
November 2, 2011

What new energy efficiency technologies will change the game? I’d like to use this space on occasion to explore that question and get your feedback on companies that I profile.

This week’s company is FirstFuel Software, which it appears could make the conventional energy building audit go the way of the buggy whip.

FirstFuel ‘audits’commercial buildings from afar. No human ever needs to set foot in the building and no monitoring or measurement devices are installed on the premises, hence the audit is “zero touch.”

The Massachusetts-based company relies on a Geographic Information Systems (GIS), the Internet, and a proprietary algorithm to remotely analyze a building’s energy use. The program requires some data from the utility, but not a lot: the address of the building and one year of hourly interval electric and gas billing information. It combines this information with building characteristics mapped through GIS and high frequency weather and climate data.

After running all of the information through its algorithm, FirstFuel comes up with a series of specific recommendations to improve the buildings efficiency, the cost and the expected savings.

FirstFuel, which has financial backing from Battery Ventures and Nth Power, describes its work not so much as auditing, but as mining useful data to make sense of a building’s energy profile.

“We sell information. We provide the intelligence about the performance of buildings,” saidSwapnil Shah, co-founder and CEO, in an interview. Shah is the veteran of three software startups that have gone to IPO or acquisition: Open Environment, WebSpective Software and mValent.

FirstFuel’s work doesn’t end with the audit; the platform continues monitoring and measuring the building to see if the energy efficiency upgrades are working and how the building stacks up against other like structures. The information flows via a portal that serves as home to a relationship the platform attempts to cultivate between the utility and customer. The goal is to get the customer engaged and motivated about energy efficiency.

What’s interesting is the scale FirstFuel appears to offer. Many states have energy efficiency targets, some with financial penalties if utilities fail to make the grade. Meanwhile, the Obama administration has set a goal to reduce energy use in commercial buildings by 20 percent over the next decade. Given that commercial buildings consume 20% of our energy, and there about five million commercial buildings in the US, how does a utility get to all of them in its territory with an on-site energy audit? How does it even decide which buildings should get priority because they offer the most bang for the buck?

Shah thinks FirstFuel’s platform offers the solution: “We can do hundreds of buildings in the time it takes to do one energy audit” Shah said.

The software is being tested in about 50 buildings. A Department of Energy-funded project earlier this year evaluated the accuracy of the system against data from 50 submeters at a 312,000 square-foot LEED Platinum National Grid building in Waltham, Massachusetts. FirstFuel took about 19 hours to complete its zero touch analysis of the building and came up with results close to that of the submeters, according to the study, conducted by Fraunhofer CSE.

In another case study, FirstFuel analyzed the energy usage of five municipal buildings in Lexington, Massachusetts, and found ways to save 7.3% of the buildings $1.6 million budget with no investment required by the building owner. FirstFuel identified operational problems that if fixed could save energy without installation of any new equipment in the building. For example, lights were on in the building when no one was there and thermometers were not set at best temperatures.

So is FirstFuel a game changer? How will this technology affect the conventional energy auditing business? Please post your thoughts here. Thanks!

Elisa Wood is a long-time energy writer whose work is available atwww.RealEnergyWriters.com