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.

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/

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Smart meters: Truly a cure for energy blindness?

By Elisa Wood

July 1, 2010

And now for a dose of reality.

No doubt smart meters are a good thing, but even their most ardent fans must admit that a degree of hoopla surrounds these little digital boxes. We hear that if consumers can just see how much power they use in real time, and what it costs, our energy woes will be no more.

Smart meters will even cure the blind. The energy blind that is.

“It can be difficult to separate the hype from legitimate claims,” said the American Council for an Energy-Efficient Economy in a new report that evaluates what works – and what doesn’t – when it comes to smart meters.

ACEEE points out that we no longer load the stove with coal and wood for our primary energy. Instead, gas and electricity flow unseen to take care of our needs. Since we see only a monthly bill, we have no idea what energy costs in real time, how much we use, or even the acceptable social norm for energy consumption.

Thus, most people in the US are “among the energy blind,” says the report. Asking us to save energy based on our monthly bills alone is like asking a dieter to lose weight without a scale. “Perhaps it can be done, but the task is a lot more difficult,” the report says.

But seeing how much energy we use is one thing; acting on it another. Smart meters will not do their job if we rely on the technology alone. The consumer needs good reason to act, according to ACEEE.

These findings are important because the US and other nations are making a huge investment in smart grid technology. Smart meters represented only about 4.7% of US household meters in 2008. But their market share is expected to grow to 40% over the next five to seven years, according to the report.

The report looked at 57 studies, three decades of research in Europe, North America, Australia and Japan, and found that smart meters can be effective. In fact, households using them have reduced electricity use 4% to 12%.

But much depends on how the meters present information and feedback and how we respond. Ultimately, the smartness of smart meters relies on utilities understanding human psychology.

The report offers several interesting insights about our energy behaviour. For example:

• We are less apt to respond to programs that focus on reducing energy at specific times (peak periods when costs are high) than reducing energy all the time.
• We need to feel our actions truly make a difference.
• An energy crisis is more likely to motivate us to conserve than arguments about climate change, especially if we live in the US.
• Smart meters may be unnecessary. We like our cell phones, and if only 20% of US consumers used them to manage household energy use, we could significantly reduce energy waste.
• We need feedback on a long-term basis to continue to save energy.
• When we receive feedback on energy use, we tend to change our habits and make small changes like installing weather stripping. To a lesser degree, we replace appliances, although they offer the most energy savings.

There has been a lot of talk about how smart grid will marry two giant industries: energy and information technology. True. But the ACEEE study makes apparent that a third field needs to play a big role: behavioural science.

“The bottom line here is very simple: Smart meters in and of themselves are just not ‘smart’ enough to get the job done for consumers and our economy. While advanced metering provides a useful tool to save energy, cut consumer electric bills and reduce greenhouse gas emissions from power plants, utilities need to use these advanced meters to provide consumers with information on their consumption in ways that grab consumers attention and encourage them to take action,” said John “Skip” Laitner, ACEEE’s director of economic and social analysis.

The report can be found at http://www.aceee.org/press/e105pr.htm

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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

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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.

EE funding: The cascade begins

By Elisa Wood

March 25, 2010

It’s been a heady time for the energy efficiency businesses, with the federal government last year announcing financial support never before seen by the industry. But months after the initial hoopla many of the smaller companies – which make up a large swath of the marketplace – say they still have not seen dollars come their way.

That’s changing now, according to the National Association of Energy Service Companies, which held a recent workshop in Washington, DC to discuss federal energy efficiency initiatives. Donald Gilligan, NAESCO president, and James Dixon, NAESCO, vice chairman, took a few minutes away from the action to talk to me about their view of the marketplace.

Dixon, who is also a vice president at ConEdison Solutions, says his company has been seeing a lot of business spurred by federal stimulus dollars. The funds are now flowing from the energy service performance contractors and energy service companies (ESCOs) down to the general contractors, lighting contractors, manufacturers and others in the chain of services. “It’s a huge cascading effect with far ranging impact throughout the country,” Dixon said.

Gilligan expects this cascade to flow even faster in the second quarter. “It is ramping up quickly. We expect most the money to be committed in a few months.”

How do you stay on top of the action?

The federal government is engaged in a large-scale effort to bring more efficiency to its buildings. Those contracts tend to go directly to the “super ESCos,” sixteen companies that were awarded special umbrella energy savings performance contracts by the U.S. Department of Energy late last year. A list of the super ESCOs and contacts is here: http://www.nema.org/gov/economic-stimulus/upload/Fact%20Sheet%20and%20Contact%20Info%20for%20ESCOs.pdf

Super ESCos often subcontract work out to the smaller energy companies. Smaller players also can keep an eye on the significant increase in energy efficiency spending by state governments, particularly in the Northeast. Much of the state money flows directly to utilities who in turn subcontract projects to energy service companies.

Those who have been in the industry for decades have seen interest in energy efficiency ebb and flow. What’s the impetus this time? And how long will efficiency hold society’s interest?

“If you go back four to five years, then you begin to see the trend toward increased energy efficiency. That was also the time when you began to see utility companies propose to build new power plants,” Gilligan said.

“Those new power plants are phenomenally expensive. What happened across the country, at the state level, at the public utility commissions, when they were asked to review the applications for those power plants, they said, ‘What else is there? There has got to be something less expensive than this.’ You saw a real renewed interest in energy efficiency in parts of the country that had not show interest in energy efficiency for 10 or 15 years. That trend is not going to stop, as the country continues to grow, as we continue to need more power supplies. Energy efficiency is always less expensive than new power plants,” Gilligan added.

Dixon concurred: “I‘ve been working the utility industry for about 28 years, so I’ve seen this ebb and flow. I think this is a long term trend.”

So if you’re in the energy efficiency business and haven’t yet seen increased action yet, hang on, it’s coming soon. And it looks like you’re in for a long ride.

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

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.

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.

Investors and public back energy efficiency

By Elisa Wood

January 21, 2010

Energy efficiency finally has transitioned from being a good idea to a good business – to a very good business.

Money poured into the industry last year, pumping up total deal values by 664.7% and making 2009 energy efficiency’s break-out year, according to Peachtree Green Advisors.http://peachtreemediaadvisors.com/green/downloads/2009GreentechM&ARound-Up.pdf.

This increase for EE — from $164 million to $1.3 billion — came despite a 4.1% drop in overall transaction value for the green tech sector.

“VCs and angels—have targeted the energy efficiency as the next frontier in green tech investing,” the report said, noting that “a slew of money” was channeled into software technologies that manage energy use, as well as electric and hybrid cars.

What’s ahead for 2010? Much may depend on how the industry describes itself.

The Peachtree report warns that once federal stimulus money dries up, green projects may be shelved. Placing a carbon value on energy would bolster the industry, but that will take tremendous “political willpower,” says Peachtree.

And political willpower seems scarce in Congress, particularly with the surprise election this week of Republican Scott Brown to the open US Senate seat in Massachusetts. Those already nervous about voting for cap and trade see the Brown vote as a surprise indictment of not only Obama’s healthcare agenda but also his energy policy. http://www.bloomberg.com/apps/news?pid=20601087&sid=aLrXr50OGPR0&pos=9

But the electorate’s sentiments are hard to read right now. And it may be off the mark to assume that Brown’s election means weak public backing for cap and trade. In fact, an interesting poll by Frank Luntz indicates just the opposite.http://www.edf.org/language

Issued January 21 by the Environmental Defense Fund and NRG Energy, the poll shows Americans eager for Congress to act on climate legislation that would promote energy independence and a healthier environment. And the support crossed party lines.

Much depends, though, on how the issue is framed, according to Luntz. Discard the words “carbon neutral,” he says: “People want companies to focus on greater energy efficiency and a healthier environment – not on being carbon neutral.”

In fact, energy efficiency got the top response (47%) when pollsters asked, “If a company was genuinely interested in energy and environmental issues, which of the following do you most want them to focus on?” After efficiency, poll participants said they want a healthier environment (41%), a cleaner environment (32%), reduced energy consumption (29%), greater environmental stewardship (24%), carbon neutral (12%), none of the above – it’s a waste of time, (8%).

If this poll is correct, fearful lawmakers may again be misreading the public sentiment. A carbon cap and trade bill still can be won, if it is presented correctly to the public. The word from investors is that efficiency is a good bet. The word from the American public appears to be the same. Now we await word from Congress.

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

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.

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.