Thursday, June 28, 2012

Energy efficiency without trying (and with)


By Elisa Wood
July 27, 2012

John Lennon wrote that life is what happens to you while you’re busy making other plans.  Apparently, the same is true of energy efficiency. Energy savings happen when we’re busy doing other things – Internet-based things specifically.
We use email, bank online and download music not to save energy, but to make life easier and more interesting.  Energy efficiency is a happy byproduct.
What online pursuits serve up the most energy savings in day-to-day life?
The Global e-Sustainability Initiative, or GeSI, recently commissioned the American Council for an Energy-Efficient Economy (ACEEE) and the Yankee Group to answer this question. The study,  “Measuring the Energy Reduction Impact of Selected Broadband-Enabled Activities within Households.” looked at eight broadband-related activities in the US, UK, Spain, Italy, Germany and France:  telecommuting, Internet news, online banking, e-commerce, music and video downloads or streaming, e-education, digital photography, and e-mail.
Telecommuting provides the greatest energy savings among the activities (83 to 86 percent). From an energy efficiency perspective, it’s better to log-on to the office than drive there. Reading the news online and participating in e-education offered the least energy savings.  Consumers tend to undertake these activities to complement, not replace, the old-fashion way of doing things. They still read the newspaper and travel to classes, so offset the savings gained by the online activity.
As telecommuting expands, and more of our daily routine takes place online, these eight activities could cut energy use by about two percent or the equivalent of 500 million barrels of oil annually. Not bad, but still small compared with the savings offered by a series of ‘scale’ activities: smart grid, manufacturing and building upgrades, electric cars, combined heat and power.
So while it’s nice that we inadvertently save energy, say by banking online, it won’t revolutionize our energy picture.  But another recent report by the ACEEE shows what might: Intelligent efficiency.
Think systems or cities instead of light bulbs or refrigerators. That’s intelligent efficiency. The US could reduce its energy use by as much as 22 percent by focusing more on system rather than gadget efficiency, says the report “A Defining Framework for Intelligent Efficiency.”
 “This is not your father’s device-driven approach to energy efficiency,” said R. Neal Elliott, ACEEE associate director for research.  “A large portion of our past efficiency gains came from improvements in individual products, appliances, and equipment, such as light bulbs, electric motors, or cars and trucks. And while device-level technology improvements will continue to play an important role, looking ahead we must take a systems-based approach to dramatically scale up energy efficiency to meet our future energy challenges. Through intelligent efficiency, utility systems, interconnected cities, transportation systems, and communications networks can become the new normal across the United States and will undergird national and regional economies that, even in the face of increasingly scarce resources, grow and thrive.”
ACEEE cites several examples of intelligent efficiency already in the works. Among them is Envision Charlotte, an attempt to reduce energy use in city buildings through a partnership of Duke Energy, Cisco, and Verizon. Interactive video monitors in the lobbies of downtown office buildings display the collective energy used, in near real time, by buildings in the core of the North Carolina city. People pass by the monitors and see the easily readable data, learn energy efficiency ideas, and hear about success stories. They become more conscious of energy through this repeated exposure and their behavior changes – that’s the theory. Duke Energy expects the project to reduce electricity usage 20 percent by 2016 in uptown Charlotte’s business community.
One important point here. None of this – our online household activities or intelligent efficiency – excludes a tried-and-true approach to save energy: utility sponsored programs. A third recent study by ACEEE (Yes, this is a productive organization.) finds that utilities increased energy efficiency budgets four fold in a decade, from $1.1 billion in 2000 to $4.6 billion in  2010. Often when utilities save energy rather than buy it, it turns out to be the cheapest approach.
“The concept of energy efficiency as a utility resource is really very simple,” said Marty Kushler, ACEEE senior fellow and co-author of the report, ‘Three Decades and Counting: A Historical Review and Current Assessment of Electric Utility Energy Efficiency Activity in the States.’ “To keep an electric system in balance, you can either add supply resources or reduce customer demand.  Utilities, regulators, and policymakers have increasingly come to realize that it is far cheaper to reduce demand through energy efficiency programs than it is to construct, fuel, and operate additional electric generating plants.”      
The report found that energy efficiency remains the lowest cost energy resource available to utilities by a wide margin. Saving electricity through efficiency is about one-third the cost of generating it from a power plant.
It’s not surprising, therefore, that states have set aggressive energy efficiency goals; no states are scaling back. Instead, “the momentum is toward growth across the map,” says the utility report.
Sometimes we save energy inadvertently, and sometimes by design. Whichever, it is clear that our digital economy, combined with our increasing understanding of the programs and behaviors that lead to energy savings, create a clear path for growth in energy efficiency.
Read more articles by Elisa Wood at RealEnergyWriters.com.


Wednesday, June 20, 2012

How to grow a solar energy garden


By Elisa Wood
June 21, 2012

Getting energy from the sun is a great idea. However, installing solar panels house-by-house is slow, costly and cumbersome, and downright inefficient if the goal is to bring solar to the masses.
This problem troubled Paul Spencer after he built his own uber-efficient, custom solar home near Aspen, Colorado in 2004.  The engineer and serial entrepreneur wondered how he could replicate his home many times over across the United States.
Out of this problem came the community-owned solar garden – or at least a version pioneered by the Clean Energy Collective, a Colorado company founded by Spencer in 2009. What is a solar garden? Think community vegetable garden, where everyone in the neighborhood tends a common plot and then shares the harvest. Except here the crop is solar energy, often produced by ground-mounted photovoltaic panels on an open piece of land or large rooftop.
Variations on the solar garden idea are catching on in California, Colorado, Massachusetts, New Mexico and other states.
Some models rely on virtual net metering – where utility customers  receive retail power credits as though their solar panels were on their home or business.  However, only a small number of states allow virtual net metering.
In another variation, the utility owns the solar panels and customers who decide to join the garden pay a premium on their bill in return for membership.
Neither of these models offer a good way to grow residential solar quickly across the country, says Spencer. Convincing lawmakers to adopt virtual net metering takes too much time and is often controversial. And under the utility-ownership model, customers don’t receive direct financial benefits from the solar panels.
His company has developed solar gardens in New Mexico and Colorado that avoid these problems. CEC’s approach foregoes virtual net metering, but allows customers to own solar panels with a good payback.
It works like this. CEC develops the solar facility and invites community members to join in the ownership, which starts at about $500-$800 per panel. 
CEC sells the power from the facility to the local utility under a solar power purchase agreement, a model that attracts third-party investors because it creates certain tax benefits.  A management entity, akin to a homeowners association, maintains the garden with set aside escrow monies, which is expected to produce power for 40-50 years, Spencer says.
The community garden approach gives members a chance to lower their electricity costs – they  receive monthly bill credits for the energy produced by the panels. When members move, or just no longer want to participate, they can sell their panels. 
This approach makes solar available to households who would otherwise be ineligible – and there are many. About 80 percent of metered utility customers in the United States cannot install rooftop solar for various reasons, according to Spencer. Their roofs are too shady or they live in apartments.
CEC’s model also helps remove utility resistance toward solar gardens, according to Spencer.  A proprietary remote meter system, developed by the company, tracks the solar garden’s energy production and directly credits members’ utility bills. This removes a headache for utilities that sometimes resist the idea of solar gardens because of the tracking and crediting burden placed upon them. CEC also partners with utilities to establish fair solar power pricing for both the utility and its customers. 
Will this model work? So far the company has seven facilities built or in development, with a typical capacity of one-half to one MW each. Now in talks with several utilities nationwide, CEC expects to build 5 to 10 MW of capacity this year, and six to seven times that amount in 2013.
“It is easily conceivable that community solar can contribute hundreds of megawatts of new capacity to the grid per year,” Spencer says.
Hundreds of megawatts may not sound like a lot in a country where one nuclear plant in California produces nearly 4,000 MW. But, all of the photovoltaic solar in America amounts to only about 4,400 MW. Most of that comes from large utility-scale plants. The US solar residential market added only 94 MW in the first quarter of 2012, according to the Solar Energy Industries Association.
Is the solar garden the secret to bringing efficiency and scale to residential solar?  The idea has been planted. Let’s see if it takes.
Elisa Wood is a long-time energy writer and co-publisher of Energy Efficiency Markets newsletter. 


Wednesday, June 6, 2012

Benchmarking: How does your building stack up?


By David Pospisil
Guest Blogger, Energy Efficiency Markets
June 6, 2012

Energy benchmarking can help you better understand your commercial property’s energy use and monitor performance over time. It allows for comparisons among similar building types and helps identify which ones could operate more efficiently.
The Environmental Protection Agency and its ENERGY STAR® Program offers a free online tool called Portfolio Manager that allows users to track and assess building energy consumption for a single building or an entire portfolio. Portfolio Manager can help comply with local energy laws, set investment priorities, identify under-performing buildings, verify efficiency improvements and receive EPA recognition for superior energy performance.
If you have already been through the benchmarking process, are you on track to increase your building’s energy performance rating this year? While benchmarking helps you understand the current state of your building’s performance, an energy audit can help you identify and prioritize opportunities for substantial energy and operational savings.
Not all energy audits are equal however. The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) recognizes three levels that vary in scope and cost:
·      Walk-Through Assessment (Level 1): This is the least costly of the three levels. It provides an energy bill analysis and possibly a brief survey of the facility. Subsequently, the report outlines no-cost and low-cost opportunities.
·      Energy Survey and Analysis (Level 2): A more detailed analysis taking into consideration the owners' operations and maintenance, constraints and economic factors. The final report may include potential capital-intensive energy efficiency opportunities.
·      Detailed Analysis (Investment Grade Audit) (Level 3): This analysis provides a higher degree of data collection, monitoring and analysis and focuses on capital-intensive opportunities. The report usually includes detailed analysis on project cost and savings and may include a timeline for implementation for each measure.
Benchmarking and energy analysis work together as integral steps of a business’ energy management plan. The benchmarking process can help you identify your building’s performance rating and an energy audit can help you effectively evaluate the energy-saving opportunities so you can understand where your investment in sustainability will have the greatest impact.
Incentives from government and/or utility-based programs may be available to help pay for the cost of an energy audit, as well as energy efficiency upgrades. For example, the Con Edison Commercial and Industrial Energy Efficiency Program offers:
·      Payment of up to 50% of costs, with a cap of $67,000, for a Level 3 energy audit
·      Rebates for high-efficiency electric and gas equipment including lighting fixtures, LED exit signs, chillers, packaged heating, ventilation, and air-conditioning systems, motors, water and steam boilers
·      Performance-based custom incentives for installing high-efficiency equipment or energy-saving solutions not eligible for equipment rebates
Check to see what funding may be available in your area.
 Join the discussion on LinkedIn (Con-Edison-Commercial-Industrial), Facebook (ConEd Green Team C&I), Twitter (ConEd Green Team C&I) and YouTube (ConEd Green Team C&I).
David Pospisil is Program Manager of Con Edison's Commercial & Industrial Energy Efficiency Program, New York, NY.