What political party do your electrons support?

By Elisa Wood

October 20, 2010

Lucky for Americans, information technology doesn’t appear to be owned by any one political party. If it were, Congress would still be squabbling over whether or not to support the Internet and you’d be reading this on paper rather than online.

Not so for energy. Generally speaking, Republicans tend to be pro-fossil fuel, while Democrats typically come down on the side of green energy. This feud – which is a key reason Congress cannot pass an energy bill — confuses me. Does a coal-fired plant represent some conservative ideal not found in wind power? What’s liberal about the squiggly light bulb illuminating my desk?

How can electrons be partisan?

Okay, I know I’m over-generalizing and bound to attract admonishments from readers who will point out where liberals are sometimes pro-brown and conservatives pro-green. But I think we’ve seen the debate come down along party lines enough in the United States that my assumption is fair.

That’s why it was intriguing to see the recent report “Pro-Partisan Power,” a combined effort of think tanks on both sides of the political spectrum: the Brookings Institution, Breakthrough Institute and the American Enterprise Institute.

In the words of the report authors:

Today, few issues in American political life are as polarized as energy policy, with both left and right entrenched in old worldviews that no longer make sense. For the better part of two decades, much of the right has speculated darkly about global warming as a United Nations-inspired conspiracy to destroy American sovereignty, all while passing off chants of “drill, baby, drill” as real energy policy. During the same period much of the left has oscillated incoherently between exhortations that avoiding the end of the world demands shared sacrifice, and contradictory assertions that today’s renewable energy and efficiency technologies can eliminate fossil fuels at no significant cost. All the while, America’s dependence on fossil fuels continues unabated and political gridlock deepens, preventing real progress towards a safer, cleaner, more secure energy system. The extremes have so dominated mainstream thinking on energy that it is easy to forget how much reasonable liberals and conservatives can actually agree on…”

The report goes on two make four key recommendations: 1) Invest in energy science and education; 2) Overhaul the energy innovation system; 3) Reform energy subsidies and use military procurement and competitive deployment incentives to drive price declines; 4) Internalize the cost of energy modernization and ensure investments do not add to the [federal] deficit.

The authors say this can be done at a cost of $25 billion, which can be recovered through small fees on imported oil, electric utility surcharges, a very low price on carbon or other means that will not cause great pain to any one group.

You may or may not agree with the recommendations. But it is hard not to be impressed with how the authors suggest we portray energy – not as a battle between left or right, but as a technology play, as innovation. I suspect this is what Rhone Resch, president and CEO of the Solar Energy Industries Association, meant when he said that solar energy is an industry, not an issue, as reported recently inRenewable Energy World North America Magazine.

Americans left or right can’t argue with innovation. It has brought us things we all like, our cell phones, our downloadable music, air conditioning, meals we can heat in minutes, and voices that tell us which way to drive our cars so that we don’t get lost — which all somehow have managed to remain free of any partisan taint.

The full report is available here:http://thebreakthrough.org/blog/2010/10/postpartisan_power.shtml

Elisa Wood is co-author of “Energy Efficiency Incentives for Businesses 2010: Eastern States,” available at www.realenergywriters.com.

Using car talk to sell home energy upgrades

By Elisa Wood

September 29, 2010

Does the word ‘audit’ give you a warm and fuzzy feeling? Not likely. Yet it’s typically the first service an energy efficiency contractor offers to a prospect. Sometimes the audit is even free, much like the unwelcome kind we receive from the IRS.

Use of words like ‘audit’ ‘retrofit’ and ‘weatherize’ turn off customers. Unless the industry rethinks its jargon, it is unlikely to win the hearts, minds and wallets of the typical American consumer.

These are some of the findings from the Lawrence Berkeley National Laboratory, which on September 29 launched a new effort: “Driving Demand for Home Energy Improvement.”

With a lot of federal money flowing into the industry, it is more important than ever to figure out why homeowners resist energy upgrades. To that end, LBNL published a 132-page report that examines human behavior when it comes to energy choices. The report includes case studies of successful programs.

Contrary to conventional wisdom, information and education will not inspire the typical homeowner to insulate and replace a boiler, according to the report. In fact, people who support the idea of conservation conserve no more than those who do not.

Even the promise of saving money doesn’t always work. Consumers feel overwhelmed by too many choices, so are likely to just opt for the status quo and leave their home as it is, says the report.

But homeowners will take action if others in their community do so, and if they are gradually eased into the idea of making energy efficiency improvements, starting with what is easy and working up to bigger projects, said Merrian Fuller, LBNL research associate, in a web presentation.

Carl Nelson, program and policy manager for the Minneapolis-based Center for Energy and Environment, found that people respond favorably to energy efficiency when they are gathered together with neighbors for community meetings. Ninety-five percent of the 2,400 people who attended the meetings signed up for audits, or rather ‘home visits,’ before leaving. They even made the required $30 co-payment.

When neighbors are all gathered together in a room to discuss energy efficiency, they begin to view home upgrades as a “public commitment,” as well as “a social norm,” like cleaning out leaves from gutters, he said. “It is something normal people do.”

As for language, it is not enough just to replace the word ‘audit’ with ‘home visit,’ or retrofit with ‘home energy upgrade.’ Language must be vivid and fit with the consumer’s existing mental frame. Don’t just say a house is leaky, said Fuller. Tell the homeowner that all of the leaks combined are the size of a basketball. One contractor found success by using car talk. He sold efficiency in terms of miles per gallon for the home.

Finally, make ‘em laugh. Humor is such a good sales tool that the Minneapolis program hired a comedian to train its workshop presenters. The presenters won laughs and action when they told homeowners: “When your refrigerator is old enough to vote, let it go.”

The report, “Driving Demand for Home Energy Improvements,” is available athttp://drivingdemand.lbl.gov/.

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

Move over Star Trek: Here comes Energy

By Elisa Wood

September 22, 2010

Remember when the idea of generating electricity from wind turbines and solar panels seemed really cool? No denying their benefits, but they are sooo last year.

Energy folks have gazed with envy at those who work in telecommunications for a long time. They invented the cell phone. Energy wanted its own thingamabob that would completely revolutionize its market. Now, with all of the thought, money and politics backing energy tinkerers, forget the cell phone. I suspect Energy is approaching a “Beam me up, Scottie” breakthrough.

Here are a few of my favorite new contraptions and concepts.

• My dog, the power plant: After scooping up after your dog, you throw the poop into what is called a ‘Park Spark,’ a device with gas tanks attached to a streetlamp. You turn a wheel to generate methane from the dog poop and the light comes on. This is not a hypothetical. A Park Spark is operating at a park in Cambridge, Massachusetts. http://newsfeed.time.com/2010/09/22/dont-toss-that-dog-poop-mass-artist-uses-waste-to-power-park-lamp/?iid=moreonnf

• My commute, the power plant: The public relations person who emailed me this information wrote in the subject line, ‘Very Cool Smart Grid/Transportation Announcement.’ I thought, ‘Oh sure, how many times have I heard that from a PR person?’ But yeah, it is.

Viridity Energy and Southeastern Pennsylvania Transportation Authority are tapping into the growing use of waste energy. (We in the US apparently waste about as much energy as the Japanese use in total.) In this case, Viridity software works to capture the energy created when a train brakes. The excess power is stored in a battery and then sold to the power grid. The first test will occur at Philadelphia’s busiest subway line. If it works, it may spread to public transportation systems across the country.

“The project will pair the latest 21st century technologies and energy optimization practices with one of the country’s oldest transportation systems, dating back to the deployment of electric trolleys in 1892,” says Viridity’s news release. “Mass transit systems across the country are striving to maintain high quality service while facing growing fiscal challenges which are further compounded by rising energy costs. The pilot represents a large and untapped potential for transit systems to help meet these challenges and at the same time improve grid reliability in highly populated urban neighborhoods.” http://viridityenergy.com/news/press/

• My knee, the power plant: I heard about this prototype a couple of years ago. As far as I know it’s not commercially available yet. But when it is, I want one. This gadget uses “biomechanical energy harvesting.” You wear it on your knee and it captures energy wasted from knee movement as you walk. “We believe that when you’re slowing down the knee at the end of swinging the leg, most of that energy normally is just wasted,” said its creator, Arthur Kuo, an associate professor of mechanical engineering at the University of Michigan, in aRenewable Energy World article. Your knee won’t light up cities, but it might charge your Ipod. At the time the article was published in 2008, Kuo thought the knee brace was still too bulky and he was working on streamlining it.http://www.renewableenergyworld.com/rea/news/article/2008/02/knee-brace-generates-electricity-from-walking-51434

• Wireless electricity: To think, we were all so impressed with cordless phones. Now a team at the Massachusetts Institute of Technology says we may soon be able to toss out our electric wires as well. No more looking for where to plug in the televisions, stereos, lamps and computers. As Paul Hochman put it in hisFast Company article, it is “a breakthrough that portends the literal and figurative untethering of our electronic age.” Several companies are working on commercial applications.http://www.fastcompany.com/magazine/132/brilliant.html

• Wired cows: Cows seem to hold some special place in the heart of green energy fans. It’s not unusual to see promotional photos from wind power companies with cows grazing by wind turbines. Now some Hewlett-Packard researchers are proposing that dairy farms power our energy hungry data centers. It involves cow manure, waste heat from the data center and a combined heat and power system. I’ll say no more because further details are in an article I have written on hybrid power systems for the September/October 2010 issue of Renewable Energy World International magazine. Watch for it here. http://www.renewableenergyworld.com/rea/magazine/renewable-energy-world

Those are just a few of the cool energy concepts that I’ve seen. Please let us know what you’ve come across.

Elisa Wood is co-author of “Energy Efficiency Incentives for Businesses 2010: Eastern States,” www.realenergywriters.com

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.

Energy use drops: It’s not just the economy

By Elisa Wood

May 13, 2010

We’ve been hearing a lot about a drop in energy consumption as a result of the economic downturn. In fact, US energy use per person declined last year to its lowest level since 1968.

Economic activity and energy use are directly linked. But lately, several reports have noted that the economic slowdown is not the only reason energy consumption is falling. Aggressive energy efficiency efforts also have impact.

That impact will be “major” in the years to come, according to the Energy Information Administration, the chief energy data collector for the US government. The agency this week released its “Annual Energy Outlook 2010” with projections to 2035.

The federal report shows us decreasing energy use significantly if we employ best available efficiency technologies over the next 25 years – that is if we buy the most energy efficient appliances and build homes to the highest efficiency standards. Under this scenario, energy consumption could drop by as much as 27%. But if we stick to the status quo, homeowners will increase energy use by about 0.2%.

This drop in energy use will not happen immediately. In fact, EIA sees energy consumption rising slightly as the economy rebounds. It then begins fall in 2013 as higher efficiency standards take effect for vehicles and lighting.

Lighting standards will have the most profound impact on electric consumption. Federal requirements will reduce electricity used for lights by 30% in 2014. When the standards tighten further in 2020, power use for lighting drops 60%. Overall, by 2035 our lights should eat up 44% less electricity than in 2008.

This drop in energy consumption does not signal austerity. On the contrary, our use of electric devices is growing. The EIA sees us increasing our use of computers, household appliances, water heaters, stoves, heat, air conditioning and microwaves. And for the first time this year we’ll direct more of our electricity into television watching than food refrigeration.

So it appears the predictions of today’s energy efficiency advocates may be correct: the economy can reduce energy consumption without sacrificing creature comforts.

The compete EIA report is here. http://www.eia.doe.gov/oiaf/aeo/index.html

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

Are we thinking about energy all wrong?

By Elisa Wood

April 29, 2010

The energy world operates under the premise that more is better. If we build more power plants, we’ll have ample supply, and electricity prices will drop. Even better, if those plants are clean and green, we’ll displace older, dirtier plants and reduce emissions. That will help our economy by producing jobs.

But is that the right way to think about power?

Truth be told, new energy sources are likely to play a smaller role in economic recovery than advances in energy efficiency, according to speakers at a recent symposium held by the American Council for an Energy Efficient Economy, as part of its 30^th anniversary celebration.

“Cost-effective investment that can reduce the amount of energy necessary to support a dollar of economic activity is the single most important driver of economic productivity within the United States and around the world,” said John A. “Skip” Laitner, director of economic and social analysis, American Council for an Energy-Efficient Economy.

But too often policymakers view energy efficiency not as an economic driver, but as a means to control demand until we can deploy conventional resources, such as nuclear and oil, he said.

Consider the following data that emerged from the symposium:

• America’s economy has tripled in size since 1970 and three-quarters of the energy needed to fuel that growth came from efficiency advances, not by adding more energy.
• Still, the U.S. economy remains only about 13 percent energy efficient, meaning 87% of the energy we use is wasted. We are behind Japan and several European countries, which have a 20% efficiency level.
• Energy efficiency investments can provide up to one-half of the greenhouses gas emissions reductions most scientists say are needed between now and 2050 – while lowering energy bills.

“The greatest barrier of all to more energy efficiency is the mentality of the growth imperative: the deep seated conviction that growth assures survival in the competitive global race. The focus is on growth, with profits secondary. But we have to ask: The race is to where?” said Robert Ayres, an emeritus professor at the European Institute of Business Administration and author of “Crossing the Energy Divide: Moving from Fossil Fuel Dependence to a Clean-Energy Future.”

“Growth that consumes limited resources is itself unsustainable,” he added. “A new paradigm is urgently needed. The new paradigm must focus on the cost-effective re-use, renovation, remanufacturing and recycling. The energy firms of the future will need to sell efficiency, and energy security, not fuel.”

To hear Laitner and Ayres summarize their findings and answer media questions go to: http://www.aceee.org/.

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

Wanted: GOLD for smart grid

By Elisa Wood

April 8, 2010

As John McDonald tells it, smart grid needs GOLD. And he’s not talking money.

GOLD stands for Graduates of the Last Decade, the technology savvy, risk-taking engineers and technicians who may be among the greatest benefactors of the new smart grid movement. While most recent college graduates face dismal employment prospects, for the GOLD kids, the job market is, well, golden.

“I’ve never seen electric utilities and suppliers outbidding each other for a bachelor’s degree,” said McDonald, who has had 35 years in the energy business and now serves as an IEEE Fellow and general manager of marketing for GE Energy T&D.

GOLDs benefit from two converging trends. The first is the sizeable technical task that utilities face in integrating smart grid technologies. The second is the wave of retirements expected to hit the utility industry in the next five to seven years.

These young recruits will invigorate the utility industry, which is notorious for being risk adverse, a trait that has kept the lights on but also hinders adoption of new and more effective technologies.

Two utility cultures tend to dominate today, according to McDonald. One approaches smart grid with an “over my dead body” attitude. The second is about three retirements away from embracing smart grid.

“The older folks say we’ve been doing this for 20 years. I’ve got three years to retirement, and I’m not going to do anything new that might cause a problem,” he said. “That will go away with the GOLD folks. These are folks who went to Block Buster and rented a game and learned how to use it in a matter of minutes.”

Not only will GOLD engineers find it easy to get jobs in the electric power industry, but they also are likely to advance quickly in the ranks, McDonald said. Utilities have done little hiring in the last 15 years. Thus, the middle group – those in between upper management and new recruits – tends to be thin. So the way is clear for GOLDs to enter management early in their careers.

Demand for GOLDS is already strong, but it is likely to get even more intense. Smart grid is still new, only in the design/engineering phase, still to take on manufacturing and field deployment. More jobs will open as these stages occur.

What can engineering students do to position themselves for the plum jobs? McDonald advises that they pursue internships in the power and energy industry with electric utilities, testing labs and suppliers or snag research positions with professors. IEEE also has set up a website where job seekers can post resumes: http://www.ieee-pes.org/workforce/pes-careers.

“It is exciting for me because my son is in that [GOLD] space. The potential for him is much greater than it is for me,” McDonald said. “I’m 58. Most of us who have been in the industry for a long time will be more than willing to give decision-making to this group.”

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

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.

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.

What’s geothermal again?

October 29, 2009

By Elisa Wood

Some green energy sources seem to have charisma; others struggle for public attention with little success.

Solar energy is an “it” technology, as evidenced once again by the tremendous participation in the annual Solar Power International conference in Anaheim, California this week (Oct. 27-29). Twice as many companies (945) are displaying their wares in the Expo Hall this year, despite the still lagging economy. And overall attendance is expected to break last year’s record, itself a record breaker.

Even on Main Street, ask pretty much anyone and they know solar, probably like it, and see it as an economy builder.

Ask the same people about geothermal heat pumps and there is a good chance they won’t know what you’re talking about. Or they may give an answer that confuses the appliances with geothermal geyser power plants. For whatever reason, the concept of extracting heat from the ground has yet to capture the public or political imagination as much as extracting it from the sun.

Yet, geothermal heat pumps could have a significant impact on our energy supply. They can be installed pretty much anywhere there is a building. And if we used them to maximum potential in the United States, we could avoid building 91-105 gigawatts of generation, nearly half of the new power we will need in 2030, according to the US Department of Energy.

Homeowners who consider then discard the idea often cite the high upfront installation costs. Yet the same argument could easily be made about solar photovoltaic panels. So why is geothermal an also ran technology?

One problem, according to the DOE, is that the heat pump industry needs to collect and disseminate more solid data on heat pumps. Work underway by the Chewonki Foundation, an educational institute in Maine, moves in this direction. With a grant from the Maine Public Utilities Commission, Chewonki is monitoring and measuring the performance of a newly installed heat pump system at its 11,000 square-foot meeting hall. The state is looking for an alternative to heating buildings with oil, a relatively common fuel in Maine. Geothermal heat pumps may prove to be that alternative. http://www.onsetcomp.com/resources/white_papers

This is not to imply that the geothermal heat pump industry is not growing. To the contrary, US shipments of geothermal heat pumps grew 40 percent last year, according to a report released this month by the Energy Information Administration.http://www.eia.doe.gov/cneaf/solar.renewables/page/ghpsurvey/geothermalrpt.pdf. The industry is very much a domestic jobs builder. Most of the systems shipped in the US last year where manufactured here — 416,019 tons – with the remaining 86 tons from China. Sixteen percent of US product was exported.

Still, the geothermal heat pump industry is a small one, representing $319 million last year. Compare this to a domestic solar PV cell and module market of $1.72 billion in 2007 (2008 figures are not yet available from EIA).

Of course, it was just a few years ago that solar conferences were drawing hundreds, not tens of thousands of people, as Solar Power International does now. So who knows? Perhaps it’s not far-fetched to imagine the term” geothermal” rolling off the tongue of the average consumer, as easily as “solar” does today.

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

It’s the environment, stupid

By Elisa Wood

October 22, 2009

If Harry Truman were running for president today, he’d probably ‘Give ‘em Green,’ rather than ‘Give ‘em Hell.’ Bill Clinton’s campaign slogan would be, ‘It’s the environment, stupid.’ And Herbert Hoover might be promising a solar panel on every roof, rather than a chicken in every pot – and the pot would sit on a smart-metered stove, powered by a plug-in hybrid, eligible for renewable energy certificates.

Today, green credentials count. Hardly a day goes by without a mayor, governor or legislator claiming some sort of first, best or highest green energy goal.

That’s why the state energy efficiency scorecard, released this week by the American Council for an Energy Efficient Economy, is significant. It carries political currency.

Bragging rights go to California, Massachusetts, Connecticut, Oregon and New York,* the top five states (in that order) doing good by energy efficiency. Some red faces, however, might be found in Nebraska, Alabama, Mississippi, North Dakota, and Wyoming, the group that ACEEE says “most needs to improve.”

States are expected to continue their pursuit of energy efficiency into the next decade. The ACEEE reports that utility ratepayer-funds for efficiency will likely grow from $3.1 billion in 2008 to $5.4-$12 billion in 2020.

What’s most interesting is that so much money and effort is being put into energy efficiency now – during the Great Recession – when states face deficits. This defies conventional behavior: Historically, Americans worry about the environment only when the economy is sound. It appears that green energy advocates have successfully imprinted in the American psyche a link between renewable energy and efficiency and economic prosperity.

“This growing and deepening commitment to energy efficiency is so strong that the current recession has not put a dent in the vast majority of state programs,” says Steven Nadel, ACEEE executive director. “And that is for good reason: Energy efficiency is the only resource that can actually reduce energy consumption while growing the economy — making efficiency the ‘first fuel’ states can use to balance their energy portfolios.”

So we find ourselves in a kinder, greener nation, one with no electric meter left behind, where we walk softly and carry a big wind tower…

*At about the same time the ACEEE released the report, New York announced plans to shift Regional Greenhouse Gas Initiative money, slated for clean energy programs, toward reducing its deficit. This may have reduced New York’s ranking in the eyes of the environmental community.

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

Is small business left out of the EE boom?

By Elisa Wood

October 1, 2009

The US has about 29.6 million small businesses and they employ over half of the nation’s private sector. They hire 40% of our high tech workers, make up 97.3% of our exporters, and generate most of our innovations, according to SCORE. http://www.score.org/small_biz_stats.html

Still, we hear small business often say it gets the shaft when it comes to public policy; it just doesn’t have the political clout of big business.

What’s this got to do with energy efficiency? I’ve been wondering – suspecting actually – that small business is getting left out of the energy efficiency boom sweeping the United States.

I admit that my evidence is purely empirical and cursory. I have been trying to collect case studies from the Eastern states for an energy efficiency guide that I am collaborating on with my colleagues at RealEnergyWriters.com. I’ve put out a request for the case studies from small businesses to my many good sources, as well as through the social media.

I’ve received profiles of schools, colleges, hospitals, and manufacturing facilities – all non-profits or large energy users. Where I wonder is the dry cleaner, the Mom & Pop shop, the car wash?

I don’t mean to imply there are no small business efficiency programs. Several people have directed me to Efficiency Maine’s program, which does not target small businesses per se, but does serve many. I’ve also received some great examples from United Illuminating in Connecticut.

Manufacturers and data centers are low-hanging fruit that energy service companies like to pursue. Homeowners have consumer groups pressing state regulators on their behalf. But who is pushing before state utility commission’s to be sure small business gets its fair share of the vast amount of efficiency funding now being distributed?

Perhaps the fault lies with small business, itself. Overwhelmed by trying to operate in this economy, do small business owners have the time to think about energy efficiency? It’s likely few even realize funds and financing mechanisms exist in several states to help them with upfront capital costs.

Small business may well fall victim to some of the market failures Environment Northeast points out in its October 1 report, “Energy Efficiency: Engine of Economic Growth.” http://www.env-ne.org/

These failures are:

* Liquidity Constraints – when a consumer or business has inadequate access to capital to purchase efficient equipment or improve building energy performance

* Split Incentives – when the owner of a piece of equipment or building (the landlord) does not pay the energy bill and is thus unlikely to invest in efficiency improvements that would benefit the resident/renter

* Information Problems – when purchasers do not know the future energy costs of a product or property and are thus unlikely to invest in the more efficient option with a higher upfront cost

* Behavioral Problems, such as bounded rationality – when the complexity of a decision is beyond the ability of a consumer to make an economically optimal choice.

So this blog does not really reach a conclusion, but asks a question: Are small businesses getting left out of the energy efficiency boom? If so, what’s the problem? If not, please direct me to success stories!

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

Businesses like efficiency, but hold back

By Elisa Wood

May 7, 2009

“It’s the economy, stupid,” the famous line of political strategist James Carville, seems even more relevant now than when he uttered it during Clinton’s 1992 campaign. A recent survey on executives’ attitudes shows that energy efficiency hasn’t escaped the shadow of recession, despite strong support for the resource.

Johnson Controls and the International Facility Management Association asked 1,400 business executives in April what they think of energy efficiency. They like it. A lot.

Seventy one percent said they pay more attention to energy efficiency than they did a year ago; 51 percent see energy management as extremely or very important; 45 percent plan to use efficiency as their top strategy to reduce carbon dioxide emissions.

Yet, the survey also found businesses holding back on making investments. The problem? “Economic and regulatory uncertainty,” says C. David Myers, president of Johnson Controls Building Efficiency division, in a May 6 news release.

Energy prices have dropped significantly over the last year. But businesses apparently do not feel confident enough about the future to prepare to take the savings and invest it in energy efficiency — in preparation for the next jump in energy prices. In fact, the survey revealed a likely 10 percent decrease from last year in the use of facility capital budgets to fund energy efficiency projects. It also showed a six percent drop in the number of businesses planning to use their operation budgets to invest in efficiency.

Not surprising, nearly half of those interviewed cited lack of capital as a barrier to pursuing efficiency. However, if Washington plays it right, efficiency investment should rebound once the economy does. Business leaders believe incentives from utilities or government will drive the investment, according to the survey. Eighty-five percent expect either legislation mandating energy efficiency or carbon reduction within two years.

Businesses are understandably hesitant to risk capital until they know the specifics about an energy efficiency portfolio standard and carbon requirements now under debate in Congress. Perhaps the slogan for this point in history should be: “It’s about the economy, stupid…and Washington.”

More information on the survey is available at: http://www.johnsoncontrols.com/.

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

The 14 best states for energy efficiency

By Elisa Wood and Reid Smith

April 16, 2009

Once a “token gesture,” energy efficiency is now increasingly becoming a “first fuel” — the resource utilities seek before any other, even before renewable energy or other in-favor generation sources.

So says the report, “Meeting Aggressive New State Goals for Utility-Sector Energy Efficiency: Examining Key Factors Associated with High Savings,” issued today by the American Council for an Energy-Efficient Economy.

Chances are you are experiencing the benefits of efficiency – or are about to do so – if you live in one of 14 states the report identifies as leaders: California, Massachusetts, Connecticut, Vermont, Wisconsin, New York, Oregon, Minnesota, New Jersey, Washington, Texas, Iowa, Rhode Island, and Nevada.

These states show the biggest gains from efficiency. They also spend the most on programs and have the greatest legislative support.

What else makes the states stand out?

*Almost all offer direct financial incentives for delivering utility energy efficiency programs well.

*Eight of the top 14 states have an energy efficiency resource standard (EERS), which requires they meet a certain percentage of energy demand through efficiency. Typically, the requirement ramps up gradually over several years. Such standards do not deliver a lot of savings yet, but will in later years as requirements increase.

The report also looked at which efficiency measures generate the most savings. Lighting retrofits top the list, accounting for 63% to 92% of all residential energy savings and 55% to 69% of commercial and industrial savings.

The winning states still have a long way to go. Few report energy efficiency savings of 1.5% to 2.0% per year or more – the amount targeted by many state policies. Vermont is an exception with energy savings close to 2.0% of total electricity sales. What can speed delivery of results? There is no magic bullet, but the report recommends shareholder incentives, decoupling and support from top utility management.

The report is available for free download at http://www.aceee.org/

Electricity still hot

By Elisa Wood

April 2, 2009

Latest federal projections reveal that our passion isn’t cooling for large air-conditioned homes and electric gadgets.

US households have increased their electricity use by 23% over the past decade, and consumption will grow another 20% by 2030, according Annual Energy Outlook 2009, released March 31 by the Energy Information Administration. http://www.eia.doe.gov/oiaf/aeo/index.html?featureclicked=1&

The report sees air conditioning use rising 24%, as the population migrates to the South and West. The number of refrigerators, washers and dryers grows as we add more houses; home electronics continue to “proliferate,” EIA says.

It is not just households gobbling up the power. We go to hotels, restaurants, stores, and movie theaters more. And they require more computers and other electronic equipment to serve us. In addition, as the population ages, it needs more electric medical and monitoring equipment. So power use in commercial buildings grows an average of 1.4% per year to 2030.

Of course, the economic recession is likely to dampen electricity consumption somewhat for now. But the report attempts to look “beyond current economic and financial woes and focus on factors that drive U.S. energy markets in the longer term.”

Energy efficiency is a bit like computer software created to negate viruses. The more viruses, the more updates to the software we need. So as electricity use grows, the efficiency industry is likely to find growing demand for its product — technology that allows us to use more and more electronic devices, but less and less electricity.

The report points out that best available efficiency technology cuts energy use without reducing service. By installing compact fluorescent bulbs, solid-state lighting, and condensing gas furnaces, we can reduce home energy consumption 29% over a business-as-usual scenario. Concern about energy prices, power plant emissions and energy independence will drive demand for these products.

The bottom line? Electricity will remain hot, and efficiency may be even hotter.

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

$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.

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.

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.

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.

Federal stimulus: Pork or real energy policy?

By Elisa Wood

February 5, 2009

Two recent gestures by President Obama indicate that he is serious about clean energy and will pursue it differently than any of his predecessors.

First, he made history in using his inaugural speech to promote renewable energy – something never done before by a US President, according to Department of Energy’s EERE News Network. http://www.eere.energy.gov/

Second, on February 5 Obama drilled down to the nitty-gritty of energy efficiency policy. In a presidential memorandum, he called for the DOE to establish higher standards for common household appliances.

“We’ll save through these simple steps over the next thirty years the amount of energy produced over a two-year period by all the coal-fired power plants in America,” he said in remarks at the DOE.

The American Council for an Energy-Efficient Economy says the memorandum marks the first time Obama has made efficiency standards a top priority in his domestic energy policy. Obama seeks legal deadlines to set standards, “an important break from his predecessors who fell behind on updates for some 22 standards,” according to ACEEE. http://www.aceee.org/

Both of these gestures were important, and indicate he will fulfill – or at least try – his energy campaign promises. But the true test of his ability to revamp US energy policy comes as he tries to sell the $50 billion for energy in the federal stimulus package. Critics are slamming some of the provisions, such as plans to upgrade federal buildings and improve the federal transportation fleet.

“They call it pork,” Obama said. “You know the truth. It will not only save the government significant money over time, it will not only create jobs manufacturing those vehicles, it will set a standard for private industry to match. And so when you hear these attacks deriding something of such obvious importance as this, you have to ask yourself – is it any wonder we haven’t had a real energy policy in this country?”

Obama – and the clean energy industry – clearly have an education effort ahead in a world where pork and fuel efficient vehicles are seen as one in the same.

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