Showing posts with label energy. Show all posts
Showing posts with label energy. Show all posts

Wednesday, February 2, 2011

Where to find energy efficiency business opportunities

By Elisa Wood

February 2, 2011

No one would disagree that this is a good time to be in the energy efficiency business. Another report, this one out last week, signals just how good.

Conducted by Comverge, the survey of more than 100 US utilities found that 92% plan to increase their efficiency budgets by at least 10% in 2011. Comverge also found that 22% plan to boost their EE budgets by more than 20%.http://www.comverge.com/newsroom/comverge-press-releases/2011/January-31,-2011.

However, it is not always easy to pinpoint where the business opportunity lies, since they may emerge from so many different sources: utilities, government agencies, energy companies seeking to subcontract, or large energy consumers and others. Further, the opportunities tend to be diverse, given that the energy efficiency industry encompasses so many different kinds of businesses — installers, green builders, architects, consultants, load managers, appliance and car manufacturers, information technology companies and more. Any search requires casting a broad net.

Here are a few recent opportunities that Energy Efficiency Markets,http://www.realwriters.net/rew/news_frame.htm, picked up in its weekly search.

  • The Maryland Energy Administration seeks a consultant to help with state planning, preparation, and implementation of energy efficiency procurement contracts. Bids are due March 2.
  • The New Hampshire Office of Energy & Planning is looking for help with marketing, outreach, education and strategic communication planning for energy efficiency and renewable energy. Bids are due in two phases, March 30 and June 9.
  • The US Department of Energy’s Tribal Energy Program seeks applications for the assessment and deployment of energy efficiency improvements in Indian country. Bids are due March 16.
  • American National Standards Institute seeks an administrator and technical assistance for a new certification program that will provide third party verification of energy efficiency at industrial and commercial facilities. Proposals are due March 10.
  • The Minnesota State Energy Sector Partnership is looking for innovative proposals from Minnesota-based businesses and organizations to train state residents for jobs in the energy efficiency and renewable energy industries. Proposals are due March 3.
  • The New York Energy Research and Development Authority seeks proposals to expand the amount of customer load involved in facility peak load reduction or demand response programs for dynamic electric pricing. Bids are due March 15.

There are about 30 opportunities listed in the newsletter here,http://www.realwriters.net/rew/news_frame.htm, and updated weekly. It’s free. Another excellent free source is a monthly mailing distributed through the Washington State University Extension Energy Program, and available by contacting laurie.e.brown@comcast.net. It lists energy efficiency opportunities, as well as a broad range of other kinds of green and environmental projects.

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/

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

Thursday, June 24, 2010

Energy efficiency service companies missed the memo

By Elisa Wood

June 24, 2010

The folks who install insulated windows, efficient factory motors and energy saving lights apparently missed the memo about the economic meltdown.

As US gross domestic product slipped to under 1% in 2008, the $4.1 billion energy service industry grew 7%. Jealous? Just wait. That was nothing compared to the expansion predicted over the next couple of years, according to a new report by the Lawrence Berkeley National Laboratory. http://eetd.lbl.gov/ea/emp/ee-pubs.html.

Energy service companies, or ESCOs, will see 26% annual growth from 2009-2011 with revenue reaching $7.1 to $7.3 billion, the report estimates. ESCOs are private companies that typically offer energy savings improvements under long-term performance contracts.

How are they getting so much business in this depressed real estate market? A lot of it – nearly 70% — comes from what the industry fondly calls its MUSH market — municipal and state governments, universities, schools and hospitals. These institutions do not experience the boom and bust of private business, so were less hard hit by the economic downturn. Equally important, they have federal stimulus dollars to spend on energy efficiency.

Efficiency also has begun to catch the attention of the hard-to-persuade homeowner. The residential market in 2008 accounted for 6% of ESCO business, still small, but double what it was two years earlier. It helped that electric utilities increased their efficiency spending and subcontracted some of this work out to the private ESCOs.

State clean energy policies also aid the boom in ESCO activity. Massachusetts, Connecticut and Rhode Island, for example, have made energy efficiency a ‘first fuel,’ meaning utilities must secure all cost-effective energy savings before buying or building electric power. In addition, 18 states have created energy efficiency portfolio standards. They require that utilities achieve annual energy savings targets.

Not all of the news is good. Interest in energy efficiency ebbed among big businesses, not surprising given the economy. They accounted for 15% of market share in 2006, but only 7% in 2008. Uncertainty about the future makes them hesitant to commit to long-term performance contracts, according to the report.

“The traditional ESCO business model based on long-term performance contracts has always been a tough sell to private sector customers and the economic downturn further crimped its attractiveness,” the report said.

Where is the ESCO business heading? It appears the MUSH market will remain strong for quite some time. The report identified about $35 billion in potential business remaining from MUSH. The federal building market, which accounted for 15% of ESCO business in 2008, also continues to offer promise. The US Department of Energy invested $440 million in federal efficiency projects in 2009 and $498 million in 2010.

LNBL prepared the study with the help of the National Association of Energy Services Companies, whose news release on the study is here:http://www.naesco.org/ The US Environmental Protection Agency provides an explanation of energy performance contracting here:http://www.energystar.gov/ia/partners/spp_res/Introduction_to_Performance_Contracting.pdf

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

Thursday, June 10, 2010

Time to come clean on energy subsidies?

By Elisa Wood

What you don’t know will hurt you. That’s the message in Michael Lewis’ new book, “The Big Short,” which traces today’s worldwide economic downturn to a single problem: the secretive nature of prices in the subprime mortgage bond markets.

What’s this got to do with energy? Our industry has its own opaque corners that can cause widespread damage. This week the International Energy Agency (IEA) is attempting to focus light on a big one: energy subsides for fossil fuels.

It’s pretty easy to find out about incentives for clean energy, but not so simple to untangle how much government money supports coal, gas and oil, as they move from research & development through delivery to the consumer.

I suspect we hear so much about clean energy subsidies because they offer good PR for politicians. Government news releases tout new energy efficiency or renewable energy programs. But how often do you hear an elected official brag about offering subsidies to the fossil fuel industry? Is there a Database of State Incentives for Renewables & Efficiency (DSIRE) for fossil fuels?http://www.dsireusa.org/about/ I suspect not.

This creates a public image problem for clean energy. People think renewable energy gets government support and fossil fuels do not. I often hear the question: If green is so good, why can’t it stand on its own two feet? Green advocates counter that the competition – fossil fuels – receives incentives too and that green just wants a level playing field.

That leads to the next question: What will it take to create a level playing? Just how much do governments spend on fossil fuels anyway? Thanks to a new report by IEA,http://www.iea.org/files/energy_subsidies.pdf , we now know the number is $557 billion worldwide as of 2008.

The number comes from IEA’s survey of the 37 countries that represent 95% of global subsidization of fossil fuels. IEA hopes to identify how subsidies artificially dampen fossil fuel pricing and encourage people to use more energy.

IEA says that phasing out fossil fuel subsides between 2011 and 2020 would:

  • Cut primary global energy demand by 5.8% by 2020. This is equivalent to the current energy consumption of Japan, Korea, Australia and New Zealand combined.
  • Cut global oil demand by 6.5 mb/d in 2020 – the equivalent of one third of current US oil demand.
  • Reduce carbon dioxide emissions by 6.9% by 2020, equal to current emissions of France, Germany, Italy, Spain, and the UK combined.

IEA intends to set up an online database of fossil‐fuel subsidies by country, by fuel, and by year. A next good step would be a side-by-side comparison of fossil fuel and clean energy subsidies.

Many would argue that energy subsidies are required because energy is a basic need. This may be true, but incentives skew true price. Not knowing true price at best leads to poor decisions by consumers, business and government and at worst opens the door for market manipulation, as we saw with the subprime mortgage markets. Better to have transparency on all energy incentives, so that we can steer ahead with open eyes, and avoid the kind of crash we’ve seen in the financial markets.

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

Thursday, March 4, 2010

Will public support for efficiency continue?

By Elisa Wood

March 4, 2010

What’s the shelf life of today’s support for energy efficiency technologies? The industry has seen an unprecedented boom over the last several years. But all booms eventually bust.

A recent souring of public opinion about global warming science has some industry insiders bracing for impact. Will American enthusiasm for clean energy come to a halt? Only if it was global warming that spurred the enthusiasm in the first place – and I suspect it was not.

Americans tend to make energy decisions first based on economics, second on environment. While climate change has been the mantra within the energy and the environmental community, it is dollars – coupled with energy independence concerns – that have largely driven public support.

Consider the trajectory of today’s clean energy boom. It took off in a big way following the rapid price spikes in natural gas and oil after Hurricane Katrina in 2005.

True, the boom sustained itself even when prices dropped again. Why? While some industry analysts credit climate change concerns, others point to turmoil in the Middle East and our desire to reduce dependence on foreign oil.

I tend to favor the theory that we continued to see the post–hurricane price spikes in the rear-view mirror. For once our memories served us when it comes to energy policy.

But it’s not just hindsight that will prod us to incorporate more efficiency and free-fuel renewables into the power portfolio. The road ahead indicates price increases to come for electric power, and consumers are not likely to take kindly to them. So says the 2010 annual utility industry outlook by Moody’s Investor Services:

“The desire to refurbish, enhance and rebuild a relatively antiquated electric infrastructure is driving the need for steadily increasing rates…In our July 2009 Industry Outlook Update report, we estimated that consumers might stop tolerating rate increases at a 50%-or-so rise above the current average U.S. rate of $0.10 per kwh. At the time we wrote that, this “inflection point” would not be reached until about 2018 or 2019. Whether or not this inflection point remains the base case is unclear, but recessionary pressures on residential household budgets, and a lack of clear evidence of wage inflation, lead us to wonder whether the inflection point might arrive sooner.”

How likely are these rate increases? Moody’s cites several reasons electric rates may rise, in addition to the need for new energy infrastructure. Roughly $65 million in utility credit facilities is set to expire in 2011 and again in 2012. At the same time, utility pension plans are underfunded by $29 billion – leaving them 78% funded at the end of 2009.

In addition, as the economic slowdown continues to deplete local government coffers, new tax revenue will be sought. Adding more taxes on utility bills is not unlikely. In some states such taxes are already the norm. New York public service commissioner Maureen Harris pointed out during a recent public meeting that of a $421 million rate hike being sought by Consolidated Edison, $140 million is attributable to taxes.

Climate change concerns or no, with so much pressure on electricity rates, the American consumer is likely to continue to support energy efficiency as a quick, low-cost way to reduce energy bills.

Visit Elisa Wood at http://www.realenergywriters.com/ and pick up her free Energy Efficiency Markets podcast and newsletter.

Thursday, February 25, 2010

How risky are energy efficiency investments?

By Elisa Wood

February 25, 2010

Last week’s announcement of $8.3 billion – and possibly as much as $54.5 billion – in US federal loan guarantees for nuclear power plants sparked debate about risk of default on loans. What are the chances the plants will be built?

Critics unearthed a Congressional Budget Office report citing a 50% risk the projects will fail. The Department of Energy countered that the report is seven years old and not germane. http://motherjones.com/blue-marble/2010/02/chu-not-aware-nuclear-default-rates

The truth is that all power projects entail significant risk. In some regions of the country, up to 60% of the plants proposed are never built.http://www.lowellsun.com/ci_14331942?source=most_emailed Projects fall by the wayside as they try to win government approvals, contract with suppliers and buyers, and secure financing. And even if all of this is accomplished, the bizarre can occur. Witness the explosion in February that killed six people at a nearly complete gas-fired plant in Connecticut — temporarily and possibly permanently shutting down construction.

Considering the risks associated with power plant development, energy efficiency looks like a good alternative. But efficiency installations – whether for lighting, heating, cooling, refrigeration, industrial processes or home weatherization — carry uncertainty too.

What are these risks? For one, promised energy savings might not materialize. Or results may not continue as long as expected over time. So an appliance or installation may not produce its promised bang for the buck. This is why it is crucial that the efficiency industry ensure its credibility with accurate data collection, measurement and verification. Unfortunately, baseline data is not always accurate. As the Alliance to Save Energy points out, states cannot even agree on how much energy is saved from a single compact fluorescent light bulbhttp://ase.org/content/article/detail/5976.

The efficiency industry also, at times, faces the problem of ‘if-we-build-it-will-they-come?’ A government agency or utility may offer generous financial incentives, but find it cannot meet its efficiency goals because customers ignore the offer. For example, the Center for an Urban Future recently found such missed opportunities in New York City where small businesses often ignore generous city and state conservation subsidies. http://www.nycfuture.org/

Burned by our current risk-induced financial crisis, the public is increasingly wary of investment failures. Thus, it is important for the efficiency industry to address risk factors with honesty, especially as the US undertakes an unprecedented ramp up in efficiency funding. The nation’s utilities increased their spending on energy efficiency by 43% in 2009, according to the Consortium for Energy Efficiency. In all, utilities spent $4.4 billion for electric energy efficiency and $930 million for natural gas programs. In addition, CEE found that 46 states offered energy efficiency programs last year, up from 37 states in 2008.http://www.cee1.org/files/2009CEEAnnualReport.pdf.

The federal government has heightened the stakes by offering about $25 billion in energy efficiency programs through federal stimulus funds. The money represents the biggest boon – and biggest risk — ever faced by the energy efficiency industry. The public needs accurate information about return on this investment. As ASE says, “This is the windfall efficiency advocates have long waited for – should we prove unable to realize energy savings commensurate with the funding, we may never again have a chance to do so.”

Visit Elisa Wood at http://www.realenergywriters.com/ and pick up her free Energy Efficiency Markets podcast and newsletter.

Thursday, February 11, 2010

Reasons for efficiency: Plain as the smudge on your face

By Elisa Wood

February 11, 2010

Remember soot? A long time ago, before global warming, getting rid of soot was considered a good reason to make our energy supply cleaner and more efficient. These small dirty particles, created from auto and power plant combustion, discolor walls and do worse to our lungs. Their harm is immediate, yet we seem to have forgotten this, as we’ve become consumed in energy debate about future worries.

Maybe this is because new technologies have helped reduce soot in our environment. But soot (also called particulate matter) has not gone away. In fact, it may be doing more damage to mountain glaciers than carbon dioxide emissions, according to research by the Lawrence Berkeley National Laboratory.

A form of soot, black carbon, appears to be a major reason why Himalayan glaciers are disappearing, a huge concern because they feed rivers that provide water for more than a billion people in China and India.

Black carbon, which comes mostly from burning fossil fuels and biomass, absorbs sunlight, so when the snow becomes dirty, it melts faster.

This kind of soot has increased with economic growth in India and China — by 46 percent from 1990 to 2000 and by another 51 percent from 2000 to 2010, according to Surabi Menon, lead LBNL scientist on the project.

The findings are significant because they offer a simple way to slowdown snow melt, almost immediately, Menon says, in an article posted on the LBNL site.http://newscenter.lbl.gov/feature-stories/2010/02/03/black-carbon-himalayan-glaciers. “Carbon dioxide stays in the atmosphere for 100 years, but black carbon doesn’t stay in the atmosphere for more than a few weeks, so the effects of controlling black carbon are much faster. If you control black carbon now, you’re going to see an immediate effect.”

Soot is just one of the plain-as-the-smudge-on-your face reasons we’re aiming for a more efficient energy supply. Efficiency also cuts manufacturing expenses, reduces the cost to society of building generating plants and power lines and increases energy independence. These may be obvious, yet we tend not to see them in the US as we become consumed in carbon cap and trade debate.

See the LBNL paper, “Black carbon aerosols and the third polar ice cap,” athttp://www.atmos-chem-phys-discuss.net/9/26593/2009/acpd-9-26593-2009.html

Visit Elisa Wood at http://www.realenergywriters.com/ and pick up her free Energy Efficiency Markets podcast and newsletter.

Thursday, February 4, 2010

Hot sectors for energy efficiency

By Elisa Wood

February 4, 2010

It’s clear that the energy efficiency industry is undergoing an unprecedented boom, spurred by state and federal support and movement toward a smarter grid. But for those in the industry, where exactly can the new business – and the jobs – be found?

Two new reports by Colorado-based Pike Research shed some light.

After years of focusing on bringing efficiency to manufacturing, policymakers are turning attention to deep retrofits for the home. Tax credits, low-cost financing, and other incentives make it easier for homeowners to install efficient heating systems, replace windows and insulate attics.

Thus, if you are a home energy auditor – or thinking of becoming one – you are in luck. The report forecasts that the energy auditing market will triple from $8.1 billion in 2009 to $23.4 billion by 2014. And from those audits will come recommendations that spur home improvements. Pike Research predicts a $50.2 billion market in the installation of new electrical systems, appliances and major equipment, HVAC systems, roofing, windows and doors and other efficiency improvements by 2014, up from $39.3 billion.

The more efficient homes need more efficient appliances, so the Energy Star appliance market also may see revenue growth. Under a business-as-usual scenario the industry is expected to generate $21.9 billion by 2014. But the market could see the addition of another $11.3 billion under a high-penetration efficiency scenario, says the study.

“Energy efficiency is stepping into the light after a long period of obscurity,” says Clint Wheelock, Pike Research managing director. “A number of factors are converging to make energy efficient residential products and services a hot sector over the next several years. These drivers include increased environmental awareness among consumers, government incentives, utility energy efficiency programs, and new offerings and rebates from product manufacturers.”

Meanwhile, the US also is realizing that a smart grid must be a safe grid. Increased attention is being placed on cyber security, measures to protect the electrical grid from attacks by terrorists and hackers, natural disasters, equipment failures and human error.

Companies that offer services and equipment to secure the grid are seeing a rapid increase in demand for their wares. Pike Research forecasts that from 2010 to 2015 about $21 billion will be invested globally in cyber security for the smart grid.

“No utility wants to be the weak link in the chain,” Wheelock says “The concern over grid vulnerability is driving utility technologists to work closely with systems integrators, infrastructure suppliers, and standards bodies to develop a robust framework for smart grid cyber security across multiple domains.”

The report finds that equipment protection and configuration management will experience greatest demand. Among smart grid applications, the firm expects that the greatest investments will go into cyber security for distribution automation (DA) and transmission upgrades, followed by security measures for advanced metering infrastructure (AMI) smart meters.

See www.pikeresearch.com for more details.

Visit Elisa Wood at http://www.realenergywriters.com/ and pick up her free Energy Efficiency Markets podcast and newsletter.

Thursday, December 3, 2009

How many negawatts do I need before I retire?

By Elisa Wood

December 3, 2009

A candy shop owner on Cape Cod offers a new approach to build a retirement portfolio: put solar panels on your roof.

“We looked at the stock market last year and it didn’t look too good so we decided to invest in electricity,” said Ray Hebert, owner of Stage Stop Candy in Dennisport, in an article on wickedlocal.com by Nicole Muller. http://www.wickedlocal.com/dennis/news/business/x1792920283/PHOTO-GALLERY-Solar-energy-to-power-chocolate-production-at-Dennisport-shop

Thanks to today’s generous state and federal subsidies, Hebert expects to recover costs in five years and then begin collecting a return on investment of 13.8%. “What investment can guarantee that?” he asks. “And since electricity costs are expected to climb, my profit will go up, up, up over time.” He plans to channel the savings into his retirement account.

I’m not a financial planner, so won’t pretend to know if Hebert’s numbers are correct. But his reasoning points out a new and growing way consumers and businesses have begun to think about electricity. Efficiency allows them to not only save money, but also to earn it.

In Hebert’s case, he is saving money by using a generation source that has no fuel costs – sunshine is free – and by taking advantage of Massachusetts net metering laws, which allow consumers to sell back to the local utility any excess power generated by their solar panels.

But there are other ways, as well, that consumers can earn a return on electricity savings. Neighboring Connecticut, for example, has become the king of monetizing energy savings through its innovative energy efficiency certificates. The certificates represent energy savings (negawatts) businesses achieve when they install efficient technologies. Each megawatt-hour of savings equates to one certificate. The businesses then sell the certificates to utilities or retail electricity suppliers who use them to prove to regulators that they’ve achieved state-mandated levels of energy savings.

So far, the Connecticut program is largely confined to businesses, although homeowners are eligible. Private companies have been trying to come up with ways the householder can easily participate, but are having trouble convincing state regulators that their programs can work. One company proposed a green stamps approach, where customers could buy lights, appliances and other efficiency equipment through certificate savings. (See the CPower case before the Connecticut Department of Public Utility Control: http://www.dpuc.state.ct.us/DOCKCURR.NSF/4ad307989ca5ed2a85257523004e0191/d122623c2e5eab5c8525767400500afc?OpenDocument&scrollTop=545)

Programs that monetize electricity savings are likely to grow as more utilities install smart meters in homes and businesses. Smart meters let consumers see when and how they use electricity, so that they can better control costs. Connecticut Light & Power found that consumers who participated in a smart meter pilot program liked using the devices, although those who did so for environmental reasons were more satisfied than those who participated to save money. This isn’t surprising since residential customers only saved $24.69 on average from June 1 to August 31, 2009. http://nuwnotes1.nu.com/apps/mediarelease/clp-pr.nsf/0/0E66EBF11810786085257673004EA13B?OpenDocument

Would the savings be more meaningful if packaged into an investment that increases the value of the money — the Cape Cod candy shop owner’s approach? The possibilities are many: Pairing energy efficiency companies with financial firms to offer energy savings retirement accounts or college funds, or perhaps channeling the money into tax deductible donations. Whatever the case, translating kilowatt-hour savings into concrete financial products for consumers offers intriguing market possibilities for the electricity industry.

http://www.wickedlocal.com/dennis/news/business/x1792920283/PHOTO-GALLERY-Solar-energy-to-power-chocolate-production-at-Dennisport-shop

Visit Elisa Wood at http://www.realenergywriters.com/ and pick up her free Energy Efficiency Markets podcast and newsletter.

Thursday, March 19, 2009

$3.1 billion for state energy efficiency programs - Just one catch

By Patrick Costello, guest contributor

March 19, 2009

The American Recovery and Reinvestment Act promises to advance the U.S. energy efficiency movement with an unprecedented $26 billion infusion of funds. Of that, $3.1 billion goes to state energy efficiency programs through the Department of Energy’s State Energy Program.

Great news, right? Maybe not, says the Electricity Consumers Resource Council (ELCON) and the National Association of Regulatory Utility Commissioners (NARUC).

To receive the federal stimulus money, states must agree to set up financial incentives that encourage utilities to pursue energy efficiency programs. ELCON and NARUC fear that this promotes a “one-size-fits-all” approach to the administration of energy efficiency programs. In particular, they are concerned that these stimulus funds will sway states to implement revenue decoupling at the expense of developing a more unbiased energy efficiency program plan.

Revenue decoupling is a ratemaking mechanism that breaks the link between a utility’s revenues and energy sales. Since utilities normally profit from selling energy, it’s not in their best interest to push efficiency. Doing so reduces demand for their product. Revenue decoupling counters this problem by allowing utilities to earn a fair rate of return, and sometimes additional financial incentives, on energy efficiency programs. Decoupling has become a common way to align utility financial interests with state efforts to achieve greater energy efficiency.

The debate over revenue decoupling is central to discussion over what makes an energy efficiency program effective. Ratepayers measure success based on how much money they save. And how much money they save may depend on who runs the program.

Utilities, state agencies, third party non-profit organizations, or some combination of the three typically administer efficiency initiatives. Each state shapes its own approach. No one program design seems to be the most effective. Many highly regarded programs differ greatly from one another. But the best programs share one commonality: They are tailored to the unique policies and economic profile of the state and are based on input from a variety of stakeholders.

Critics of the stimulus bill argue that ‘the catch’ – the condition placed upon states before they can receive stimulus money – may stifle such tailoring, hinder development of a state’s full energy efficiency potential, and diminish cost savings. Decoupling creates the foundation for utilities to serve as the primary administrators of efficiency programs. By pushing for revenue decoupling, a state is arguably saying it wants utilities, not a third party non-profit or state agency, to take the lead in developing and administering energy efficiency programs. Therefore, the stimulus bill walks a fine line between encouraging states to implement only utility-administered programs and encouraging them to reform their ratemaking policy so that utilities can, on some level, contribute to the development of a sound energy efficiency program.

Decoupling is somewhat arcane, but ratepayers should be aware of how it may influence their rates as energy efficiency programs evolve.

This is the House Energy and Commerce Committee’s report where the controversial provision can be found on page 26:

http://www.rules.house.gov/111/CommJurRpt/111_hr1_encrpt.pdf

To see a breakdown of the stimulus package’s energy efficiency measures, visit:

http://ase.org/content/article/detail/5388

To learn about and obtain forms for stimulus package energy efficiency tax incentives, visit:

http://www.energytaxincentives.org/

To see how your state’s energy efficiency efforts rank nationally, visit:

http://www.aceee.org/pubs/e086.htm

Visit us at www.realenergywriters.com and pick up our free Energy Efficiency Markets podcast and newsletter.

Thursday, March 12, 2009

How US businesses can access federal stimulus money

By Elisa Wood

March 11, 2009

I thought that “federal stimulus” would be high on Google’s hit list. But alas, when I checked its analysis of hot trends yesterday, I discovered that “Rockin’ Robin” is number one.

Thanks to American Idol this 1950s song dominates the search engine. Bringing more music to the ears of business owners, however, is the $20 billion made available for energy efficiency through the American Recovery and Reinvestment Act of 2009. While it is easy to find information about homeowner opportunities (www.energystar.gov), it is difficult to ferret out how Joe-business USA can take advantage of the act’s benefits.

I did, however, find a few valuable sources. Linked-in brought me to a paper by law firm K&L Gates that advises companies with early stage projects on how to apply for money. The paper focuses on renewable energy, but also touches on efficiency, and includes guidance on how to approach government fund managers. Applicants need to make the case that their projects are “game changing” to win priority. They also must be “shovel-ready” – able to begin in 90 days. The paper is available by contacting fred.greguras@klgates.com.

Energytaxincentives.org, a coalition of public interest groups, offers detailed information on existing incentives for commercial buildings, appliance manufacturers and combined heat and power. But the site appears to be still updating to include the ARRA, not surprising considering how many funding details are yet to be worked out, particularly at the state level.

The old standby, Dsireusa.org, is quickly updating information to include ARRA offerings. Those who manufacture certain energy saving and renewable energy products will find details about the 30% tax credit at the site. The program offers $2.3 billion in credits for projects certified by the US Treasury. Preference will go to those projects that are commercially viable, and are best at producing jobs, reducing air pollution, deploying commercial technology and getting off the ground quickly. The Treasury also will look at the applicant’s costs for generating energy, saving energy or reducing greenhouse gases. Additional guidelines will be available in August.

Please post here, or email lisawood@aol.com, with other sites, papers or reports that offer details about how businesses can access incentives through the ARRA 2009.

Visit Elisa Wood at www.realenergywriters.com and pick up her free Energy Efficiency Markets podcast and newsletter.

Thursday, March 5, 2009

How well is clean energy weathering the recession?

By Elisa Wood

March 5, 2009

The clean energy industry may not be popping the champagne cork, but it is at least holding the bottle in hand. While not unscathed by the recession, the industry sees growth in several sectors, according to recent reports.

For example, use of smart meters—a key technology for better energy management and efficiency – is increasing at a rapid clip. A study by ABI Research, “Advanced Metering Infrastructure (AMM and AMI),” forecasts that the number of smart meters installed worldwide will reach 76 million this year, up from 49 million in 2007. Smart meters will benefit from an estimated $4.5 billion that the US plans to spend on smart grid initiatives as part of the federal stimulus package.

“We don’t think that the economic crisis is having a significant effect,” says Sam Lucero, senior analyst for ABI Research. “Utilities’ smart metering deployments are typically multi-year plans developed in the context of regulated market environments, and not terribly susceptible to short-term economic fluctuations.”

Press reports indicate that two other energy-cutting products are poised for significant growth this year. Moneynews.com quotes analysts who say demand response companies are likely to see recovery in 2009 following a dramatic fall in stocks of some leading companies. Meanwhile, industry insiders say they expect continued expansion for combined heat and power, a resource that has won new federal tax incentives and state support. See my article in the January/February issue of Cogeneration and Onsite Power Production magazine for more details.

Not all the news is good though. Greentech Media and the Prometheus Institute for Sustainable Development project that the global market for photovoltaics will shrink 15% this year to $12 billion. This is solar energy’s poorest performance since 1994, according to the report. At the same time, Lux Research says this year’s solar shakeout – caused by oversupply of cell and module capacity – will push solar prices closer to grid parity and precipitate expansion.

Meanwhile, expect to read a lot more about the clean energy sector in the coming year. William Brent’s Search for Cleantech reports that members of the media foresee heightened coverage of the cleantech sector in 2009 (and it certainly wasn’t light coverage last year.) Seventy-five percent of bloggers, mainstream newspapers, magazines and broadcasters surveyed say readers and editors will demand more coverage of the sector. So while the champagne may not be flowing yet, the information certainly is.

Visit Elisa Wood at www.realenergywriters.com and pick up her free Energy Efficiency Markets podcast and newsletter.

Thursday, February 26, 2009

Where to find a green job?

By Elisa Wood

February 26, 2009

William Carlos Williams began one of his most famous poems: “So much depends upon a red wheel barrow.” Maybe if he were writing today he’d switch ‘red wheelbarrow’ to ‘green job.’

The US is relying on green jobs to push forward economic recovery. Our political leaders promise they are on their way, spurred by $80 billion in stimulus money for efficiency and renewable energy.

But what are green jobs? Who offers them? What training do they require?

Most green jobs are not exotic. In fact, the green job of tomorrow is likely the job you have today (or had before the recession). The product you deliver may be different, but the work is much the same, according to a report issued by the Political Economy Research Institute (PERI).

“The vast majority of green jobs are in the same areas of employment that people already work in today, in every region and state of the country. For example, constructing wind farms creates jobs for sheet metal workers, machinists and truck drivers, among many others. Increasing the energy efficiency of buildings through retrofitting relies, among others, on roofers, insulators and building inspectors,” says Job Opportunities for the Green Economy: A state-by-state picture of occupations that gain from green investments.

Many of the green efficiency jobs are in the building and auto sectors, areas particularly hard hit by this recession. Building retrofits require electricians, heating/air conditioning installers, carpenters, construction equipment operators, roofers, insulation workers, carpenter’s helpers, industrial truck drivers, construction managers, and building inspectors. Manufacturing plug-in electric vehicles and other efficient cars take the work of computer software engineers, electrical engineers, engineering technicians, welders, transportation equipment painters, metal fabricators, computer-controlled machine operators, engine assemblers, production helpers and operations managers.

Many of these jobs are the old blue collar variety. What sets a green job apart is that it supports energy efficiency, renewable energy or some other environmentally beneficial product.

High-tech workers also are likely to benefit from the green boom, especially as the nation begins to create a smart grid, most often characterized as a system that allows your refrigerator and utility to ‘talk’ and save you energy and money. By some estimates the smart grid may create as many as 280,000 jobs in the next five years. As a result, many of the old names in technology are moving into energy, among them Cisco, IBM, Google and Hewlett Packard.

So if you want a green job, you may not have to look too far beyond where you’d find your wheelbarrow. Right in your back yard.

Visit energy writer Elisa Wood at www.realenergywriters.com and pick up her free EE Markets newsletter and podcast.

Thursday, January 15, 2009

Retire the clunker?

By Elisa Wood

January 15, 2009

What would it take to convince you to get rid of your gas-guzzling old clunker? Would $5,500 do?

Some members of Congress think this is the magic figure. Under a bill introduced in the House and Senate today, Uncle Sam would give you a credit of up to $5,500 to scrap your old car. You could spend the credit on a new, fuel efficient vehicle or mass transportation.

The proposal makes a lot of sense and has won support from the American Council for an Energy-Efficient Economy.

Why the incentive? Because the rush for hybrids and other fuel-efficient autos is largely an upper- income trend. Nearly half of the nation’s $100,000/year-plus earners own cars that are less than four years old. But only about a quarter of the $40,000-$45,000 set have such young vehicles, says an ACEEE whitepaper. http://aceee.org/transportation/Crusher%20white%20paper%20fin.pdf.

The credit would bring middle-income families into the market to buy new and cleaner cars. Greater sales of these cars should reduce the cost of their advanced technologies.

Equally important, the credit helps fill a hole in the Corporate Average Fuel Economy standard passed in 2007. The CAFÉ standard requires a 40% improvement in fuel economy for new vehicles by 2020. Nice idea, but not enough people buy new cars for the standard to significantly lower our oil use. In fact, about 70% of today’s auto purchases involve used vehicles.

Called the Accelerated Retirement of Inefficient Vehicles Retirement Act of 2009 (ARIVA), the bill would apply to used cars that get less than 18 miles/gallon and would be in effect from 2009 to 2012. ACEEE estimates consumers would retire 575,000 vehicles annually and save 46,000 barrels per day of oil by 2013.

I think I’d take the deal. But will Congress and the Obama administration? Stay tuned.

Visit Elisa Wood at www.realenergywriters.com and pick up her free Energy Efficiency Markets podcast and newsletter.

Thursday, January 8, 2009

Energy Efficiency Markets chooses its favorites of 2008

By Reid Smith
January 8, 2009

We appreciate the entries submitted for Energy Efficiency Markets’ first annual ‘best of’ contest. It is difficult to select winners in an industry that is burgeoning with innovation. We hope you find our selections as intriguing as we did. Please continue to email us (realenergywriters@comcast.net) about interesting projects – we’d like to highlight them periodically in our weekly newsletter:

1. Best appliance: Energy orb

Remember the mood rings we wore as kids? The stone changed color depending on how we felt. Here is a variation on the theme: an orb that signals the energy mood of a building, glowing angry red when energy use is high and green when consumption is low. A kind of smart meter, this crystal ball helped Oberlin College students cut back by 56% on energy use in their dorms. What’s interesting is that the kids don’t pay energy bills – still they responded to the magic ball. http://features.csmonitor.com/innovation/2008/12/18/power-meters-help-homeowners-track-and-cut-their-energy-use/

2. Most innovative public policy: Connecticut

Connecticut tends toward gutsy moves when it comes to energy policy. The state is embracing innovation to reduce its electric rates, which hover around the second or third highest in the nation. We like Connecticut’s energy efficiency certificate or “white tag” trading program, which takes a page from the successful renewable energy certificate market now in several states. Companies, colleges, hospitals, factories and others earn the tags or credits for their energy reductions. They then sell credits to utilities or others who need them to meet state energy efficiency mandates. http://www.incisivemedia.com/energyrisk/Environmental_Risk/PDFs/Spring2008/7_EnvRisk_EnergyEfficiency.pdf

3. ESCO: CMC Energy Services

The health of any industry depends on truth in advertising. If the efficiency industry overstates what it can achieve, consumers will quickly lose faith. That is why we like the honesty in CMC Energy Services’ Home Energy Tune-uP®. The company calls it a pay-as-you-save residential energy audit program; it identifies the group of improvements in the home that will truly pay for themselves when financed. The whole house audit takes into account how various improvements interact and change your payback. If you install insulation, and you also get a new heat pump, less scrupulous auditors will calculate insulation savings based on your old, inefficient heat pump. That overstates your savings. CMC adjusts its audit to take into account the new heat pump. Consumers get a realistic picture. CMC also uses home inspectors to do the audits, rather than contractors who may have a natural conflict of interest. http://www.hometuneup.com/

4. Demand-response: Energy Curtailment Specialists

The DR market has several emerging players that deserve credit for growing use of the resource. We had a hard time deciding who to choose. We finally selected Energy Curtailment Specialists because of its intelligently packaged “Power Pay.” See http://www.ecsgrid.com for the company’s plain-talk pitch, one that avoids most of the jargon peculiar to demand response programs. FAO Schwarz and the Hyatt Regency are among recent converts to the program.

5. Transportation: Google

Google made a product that is so popular its name has become a commonly used verb. Now the company turns its attention to greening the world. Among other things, Google has a fleet of plug-in hybrid electric vehicles (PHEV) at its Mountain View headquarters for employee use. Following a seven-week experiment, Google announced some impressive performance from its fleet. The PHEVs averaged as much as 93 MPG average across all trips, and 115 MPG on city trips. http://www.google.org/recharge/. Will we eventually “PHEV” instead of drive?

6. Green building and construction: Pairing of green energy and efficiency

Here we honor not so much a company but a concept: the efforts by renewable energy companies to get customers to pursue all cost-effective efficiency before buying green energy. For example, California-based3Degrees, which markets renewable energy certificates (RECs) and carbon offsets, starts by analyzing a building’s carbon footprint. If it finds strong efficiency potential, 3Degress contracts with a third party to take on the project. http://www.3degreesinc.com. Chevron Energy Services offers a good example of successfully pairing solar and efficiency at three campuses of Contra Costa Community College. The $35.2 million Northern California project includes a 3.2-MW solar power generation system, efficient lighting and energy management systems, efficient heating, ventilation and air-conditioning, and high-voltage electrical system replacements. http://www.chevron.com/News/Press/release/?id=2008-01-31

Visit Reid Smith at www.realenergywriters.com and pick up his free Energy Efficiency Markets podcast and newsletter.

Thursday, December 18, 2008

Will support for efficiency hold in 2009?

By Elisa Wood
December 18, 2008

The stars are aligned to make 2009 a good year for energy efficiency — or at least, most of the stars.

President-Elect Barack Obama has assembled an energy team that supports clean technologies. Most notably, Obama named Steven Chu as energy secretary on December 15. Chu is a Nobel Prize winner and director of the Lawrence Berkeley National Laboratory, a leader in bringing energy efficiency technologies to market, such as the compact fluorescent light bulb. http://www.lbl.gov/

Obama also is in the process of putting together an economic recovery package that places high priority on energy, including investment in efficiency. The goal is to quickly create jobs by giving ‘shovel-ready’ projects a boost in the sluggish economy. Efficiency projects more easily qualify as ‘shovel-ready’ — set for quick development – than most energy undertakings. Efficiency measures rarely require the kind of time-consuming permitting, engineering and financing of power plant or transmission construction.

So what star is out of place in the sky? The star that governs oil prices. It costs far less to fill up the gas tank now than it did last summer. That is a good thing. The problem is that the US consumer tends to be short-sighted. If gasoline is cheap today, who cares about tomorrow? Energy efficiency falls out of favor.

Joe Loper, senior vice president for the Alliance to Save Energy, warned about this “cycle of complacency” in testimony before the Senate Committee on Energy and Natural Resources December 10. Loper recommended $15 billion in economic stimulus money for energy efficiency to keep the nation’s energy goals on track. Investing in efficiency will not only create jobs, but also will foster continued use of technologies that have already proven their worth. “A silent partner” in meeting the nation’s energy needs, efficiency has reduced America’s energy bill and related carbon emissions by 50% since 1973, he said.

Obama, himself, is worried that declining gas prices may erode support for his aggressive energy agenda. He told Time magazine that lower oil prices make “the politics of it tougher than it might have been six months ago.” http://change.gov/newsroom/entry/the_president-elect_on_his_goals_and_agenda_in_a_time_of_crisis/

We’ll see in the next several weeks if support continues for an overhaul of the nation’s energy portfolio, or if the public follows the wrong star in the sky.

Visit Elisa Wood at www.realenergywriters.com and pick up her free Energy Efficiency Markets podcast and newsletter.

Thursday, October 23, 2008

Toasting Pop-Tarts cheap: How electricity may solve our energy woes

By Elisa Wood

October 23, 2008

We tend to talk about electricity in terms of its problems — it degrades the environment, costs too much and messes up scenic views. But the Manhattan Institute’s Peter Huber takes a different stand in his new report “The Million-Volt Answer to Oil.”

Huber says electric power may be the cheap, efficient resource we seek to give America energy independence. He divides energy into two camps: electric power and transportation fuel. Our energy woes stem from our dependence on oil for transportation. To get over $4 per gallon gas, he says, we need to connect our transportation fleet and home heating systems to cheap 4 cents/kWh electricity.

“We spend roughly half as much on electricity—about $350 billion a year—as we’re currently spending on $100-a-barrel oil, and electrically powered systems do more, faster and better, than oil-fired alternatives,” he says in the report.

Huber’s theory opens the door wide for use of plug-in hybrid cars and electric heat pumps. “If we could deliver electricity straight to electric motors connected to our wheels, it would deliver miles at a price that most current car engines could match only on gasoline priced under a dollar a gallon. Delivered to our homes at off-peak prices, electrical heat would cost homeowners a lot less than $4-a-gallon heating oil,” he says.

Of course, electricity doesn’t cost 4/kWh cents everywhere. Some places it is 19 cents/kWh. And no matter where you live, the price goes up and down dramatically all day, depending on how many customers use power at any given time. When the East Coast is winding down its work day and its electricity prices fall, the West Coast is still going full tilt and its electricity prices rise. The trick is to transmit the cheap power quickly from place to place, and keep it rolling over four time zones by building a new and sophisticated high-voltage transmission backbone that can handle such movement.

“A kilowatt-hour of electricity toasts as many Pop-Tarts in Palo Alto as it does in Poughkeepsie; an efficient, integrated market with cheap, long-distance transmission available would charge everyone the same price for toasting them,” he says.

The technology exists, and it is not terribly pricey, to create such a transmission system. Huber estimates that building a 21,000-mile grid to network all major sources electricity, and push wind power from the Midwest to the coasts, would add roughly 0.3 cents/kWh to the current 9-cent/kWh average retail price of electricity.

He points out that a single 765-kV transmission line can move “almost 1 percent (4 GW) of the total average power generation of the entire United States, or 0.5 percent of the power that Americans collectively consume during the most power-hungry minute of the year.”

With such a transmission system in place, developers could build power plants and wind farms in rural expanses, rather than the crowded coasts where people object to the intrusion on their space.

Last, he points out that very few US power plants now use imported oil as a fuel, and instead use domestic sources, increasingly renewable. “With electricity, America controls its own destiny,” he says.

As Huber tells it, electricity is not part of the energy problem, but is the overlooked solution.

See the report at http://www.manhattan-institute.org/html/eper_03.htm.

Visit Elisa Wood at www.realenergywriters.com and pick up her free Energy Efficiency Markets podcast and newsletter.

Thursday, July 24, 2008

What's Cool about Air Conditioning

By Elisa Wood

July 24, 2008

Conservationists often mock Americans for their love affair with the car. But the air conditioner appears to be a growing rival for our affection.

Twenty years ago only about one-quarter of US residences had central air conditioning; by 2005 it was up to 62%, according to the United States Census Bureau. http://www.ahrinet.org/ARI/util/showdoc.aspx?doc=703.

As a result, for a handful of hot days, we use enormous amounts of electricity. We must build expensive power plants to ensure that we have enough electricity to run the air conditioners, even though the power plants aren’t needed for the rest of the year. Our grid operators usually use the least expensive power first. But with demand so high, even the dirty and high priced plants are called upon. With everything running full tilt in the heat, the system is vulnerable to outages.

The problem reveals itself again and again each summer, most recently last weekend in New York City, where Consolidated Edison found itself delivering dry ice to keep Brooklyn customers cool after they lost power. A heat wave sent demand for electricity soaring to the second highest level on record.

I live in the southeast, so I am as enamored with the air conditioner as anyone. The good news is that the energy efficiency marketplace is spurring innovation to help avert grid problems brought on by our use of central air conditioning.

One rapidly growing innovation is demand response, which offers businesses payment to limit electricity use when the grid is under strain, reducing the likelihood of power outages. Companies might dim lights, delay expensive manufacturing processes until a time of day electric demand is lower, or engage in other energy reduction strategies. The approach is becoming so popular, hardly a week goes by without word of new major demand response deal. For example, EnergyConnect, an Oregon-based demand-response provider recently signed up Yahoo! As a result, when demand peaked July 10 on the PG&E system, Yahoo! reduced power its electricity use at its corporate headquarters and data centers in northern California by 1 MW, enough power to serve 750 homes. http://energyconnectinc.com/news/press-releases/2008/07/microfields-energy-connect-launches-relationship-with-yahoo/

On the other side of the country, in New England, demand response is also becoming increasing important. In fact, ISO New England reports that demand response makes up 10% of its resources (the majority of other resources are power plants) and the number could grow to 13% by 2011. http://www.iso-ne.com/nwsiss/nwltrs/outlook/2008/outlook_july_2008.pdf

In addition, central air conditioners are being built to better and better efficiency standards. Their efficiency has increased a minimum of 30% over the last two years, according to the Air-Conditioning, Heating, and Refrigeration Institute. This efficiency, however, can be lost if the air conditioners are not installed and maintained properly and used conservatively. To help solve this problem AHRI, utilities, energy efficiency groups and others recently created the 2 Degree Pledge http://www.2degreepledge.org/. The campaign encourages consumers to reduce thermostat temperatures two degrees in the winter and increase them by 2 degrees in the summer. The site also offers customers a zip code search of certified air conditioning technicians.

It looks like our love affair with the air conditioner isn’t going away any time soon. Eighty-nine percent of new houses completed in 2006 had central air, according to the U.S. Census Bureau. Air conditioners, like computers, cell phones and other electric gadgets are bringing about a new round of electrification in our society. They make life easier and more productive. Let’s make more of them – and more ways to use them efficiently.

Visit energy writer Elisa Wood at www.realenergywriters.com and pick up her free Energy Efficiency markets Newsletter and podcast.

Thursday, March 13, 2008

Is Today's Interest in Efficiency a Blip?

By Elisa Wood


Political leaders push energy efficiency when electricity rates spike, then drop it like a hot potato when prices fall. So how long will the current interest last?

Three reports out this week indicate power prices will not ease any time soon. Indeed, forces are in place to only push costs higher.

One force is the renewable portfolio standard, according to Standard & Poor's Ratings Services in “The Race for the Green: How Renewable Portfolio Standards Could Affect U.S. Utility Credit Quality.” Half of the states, representing 40% of electric load, now require that a percentage of power come from green energy. S&P warns that the requirement is moving “squarely away from least-cost procurement and toward acquiring often above-market renewable generation in unprecedented quantities.” The standards are in their infancy, so the price impact is still to come in most states, says S&P.

Meanwhile, the Natural Gas Council sent a report to Congress warning that expected restrictions on carbon emissions are likely to drive up demand for clean-burning natural gas by 20%. This is not good news for electricity prices. Most new power plants in the US are built to burn gas. Higher demand for gas could easily mean higher prices for electricity. http://www.ngsa.org

And finally, Oak Ridge National Laboratory found in a study that plug-in hybrid cars may put more pressure on the electric grid than previously thought. The nation may have to build as many as 160 new power plants – a costly endeavor – if everyone plugs in their cars for recharge right when they get home from work. http://www.ornl.gov/info/press_releases/get_press_release.cfm?ReleaseNumber=mr20080312-02

These price pressures, combined with the growing treatment of efficiency as a market commodity--not a subsidy-driven service -- indicate efficiency may have finally found a solid foothold. It may be a blip no more.

Visit energy writer Elisa Wood at www.realenergywriters.com and pick up the free Energy Efficiency Markets newsletter and podcast.

Thursday, February 28, 2008

A Green Apple for the Teacher

By news accounts Barack Obama is all the rage on college campuses these days. But there is another less reported campus movement that could considerably boost the energy efficiency industry.

College students nationwide have mounted a serious campaign to clean up the nation’s energy supply. And they are starting in their own backyards – or rather dorm rooms. Nudged by these students, college administrations are installing co-generation, switching to more efficient lighting, and undertaking other initiatives to reduce energy use.

Students are not just organizing on their own college campuses, but are forming coalitions of several schools to improve their clout. One of the most interesting organizations is the Energy Action Coalition, comprised of 50 student groups.

Energy Action brings some fun to the otherwise staid energy industry. For example, on Valentine’s Day, group members in Michigan sent love notes to legislators to push a green energy agenda. Among other things, the students sought a 2% annual increase in energy efficiency through 2015.

Next the group plans to revamp the sometimes decadent spring-break-at-the-beach tradition. Energy Action is organizing trips to coal states where members will learn more about the industry, help in river clean-up and engage in some good-old fashion college fun – protests. In particular, they plan to take on planned coal-fired projects.

College administrators at several schools say that student action is influencing their energy decisions. Indeed, college presidents themselves are becoming a force in the climate change movement. About one-quarter of the nation’s colleges have signed on to the American College & University Presidents Cli­mate Commitment. The program requires that campuses create a plan to become carbon neutral within a specified time. Many are finding that efficiency is the cheapest and quickest way to reach the goal.

The Association for the Advancement of Sustainability in Higher Education has set up a rating system to judge college green achievements. This time it is the colleges who are being graded – and the students are watching just how well they will do.

Visit energy writer Elisa Wood at www.realenergywriters.com and pick up her free Energy Efficiency Markets newsletter.