Energy efficiency, the Nerd

By Elisa Wood
April 13, 2011

The renewable energy business has done a remarkable job at positioning itself in the public psyche as the ‘it girl’ of our era. Just about everyone – politicians, celebrities, major industries – likes to be seen as pro-renewable.

But if renewable energy is the girl that everyone wants to be photographed near, energy efficiency is her nerdy tag-along little brother. Ever notice how when politicians say they support renewable energy they quickly throw in the words “and energy efficiency” as if it were a babysitting obligation?

Or consider the excitement with which homeowners talk about their recently installed rooftop solar panels. Does anyone wax on like that about new wall insulation? Let’s be honest, renewable energy is colorful, green to be exact. Energy efficiency, well, it’s “smart” energy.

What’s it going to take for energy efficiency to shed its big glasses and pencil pocket protector?

“Let’s face it; we’re selling to the lunatic fringe of green, the lunatic fringe of efficiency. The market is this small strata right now. And of course we want to grow the market outside of the small strata,” said Paul Holland of Foundation Capital, when he spoke recently at the ACI Home Energy Summit in San Francisco, Calif. “We need less kumbaya in this industry and less expectation. We preach to each other, when we really need to become better marketers.”

Speaking at the same conference, Sheeraz Hiji, CEO of Cleantech Group, pointed out that part of the problem is dollars and cents. The solar industry wisely has figured out how to make it very easy for homeowners to finance solar panels on homes. The energy efficiency industry has not been as successful.

“The key of unlocking the industry is in the financing. Consumers don’t care that much. You have to lower the transaction cost. Some of the companies in the solar side have done this very well. They’ve made it very easy. If anyone is doing that in the home energy retrofit industry, they need to stand up on the table and scream about it,” Hiji said. (Please feel free to do your screaming in the comments section of this blog.)

It’s not that energy efficiency doesn’t have its bragging rights; it’s just not so good – yet – about getting them out. But at the conference, attended by 2,000 people, speakers offered some good makeover material.

For example, Gavin Newsom, California’s Lieutenant Governor, provided the following about investing in various energy resources.

• $1 billion in coal = 870 jobs.
• $1 billion in a nuclear plant = 1,500 jobs
• $1 billion in solar energy= 1,900 jobs
• $1 billion in wind energy= 3,300 jobs
• $1 billion in energy efficiency retrofits =7,000 jobs.

“Energy efficiency is a no brainer,” Newsom said. “We need to start talking about it more.”

Steve Cowell, chairman and CEO of Conservation Services Group, noted that in 2003 to 2005, energy costs accounted for 3.5% of US median household income in the United States and by 2007 to 2008 it had risen to 8.5%. What does that mean to the average household? A 12% drop in pre-tax income and 15% post tax. You took a pay cut without knowing it. By using less energy you can get some of your paycheck back.

More details about this and other discussions at the ACI Home Energy Summit are available here.

Goodbye to Light Bulb Jokes?

By Elisa Wood
April 6, 2011

Once upon a time, joking about ‘how many it takes to screw in a light bulb’ was a great way to poke fun at people’s intelligence. After all, what could be easier than screwing in a light bulb? Any idiot could do it.

Not so any more. Lighting has exploded into a sophisticated business. And for those who manage commercial buildings it can be downright intimidating.

Figuring out the difference between LEDs and CFLs is just the start. Then there are a whole range of dimmers, sensors, data loggers and controllers, both wired and wireless, and computer software to bring it all together. There are considerations to be made about light harvesting, interior space planning, and human behavior. And while learning all of this, the building manager is constantly wondering, ‘Will I really save energy? Will my utility bills drop enough to justify the investment?”

Clanton & Associates, a Silicon Valley lighting company, is trying to help answer the big cost questions in a newly released, six-month study of life cycle costs for lighting control systems and technologies. Researchers looked at buildings in Boston and Los Angeles that had installed efficient lighting systems.

Dane Sanders, professional engineer at Clanton & Associates, says his company was trying to address the “fear factor” that exists for building owners when it comes to lighting projects. “The growth of these types of systems is happening so fast that keeping up with the technology is difficult,” he said. “This helps people understand the real benefits of advanced lighting control, and gives some basis for people to make decisions about what lighting control systems best suit their ends.”

The study offers some interesting findings for those making their way through the maze of options. Wireless controls, for example, deliver up to 25% lower lifetime costs than comparable wired systems, according to the paper.

Wireless systems with full dimming capability – a Cadillac system — seem to offer the best bang for the buck. “It pays back relatively soon; that is a very interesting conclusion. Just doing the minimum isn’t necessarily the best. A bit more investment upfront can pay back very quickly,” he said.

Dimmers also get points for being less jarring on the eyes than a sudden on/off of lights. “With dimming it happens slowly and smoothly and is imperceptible,” Sanders said.

In addition, it does make a difference who sits where in a building. The study finds the ‘inverted space plan’ works best, even though it runs counter to traditional office planning. In the inverted plan open offices are located on the perimeter, where the maximum number of people can take advantage of natural lighting. Private offices are pushed to the interior

Underwritten by Daintree Networks, the study can be downloaded free of charge here.

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US at top worldwide in EE innovation

By Elisa Wood
March 30, 2011

This week’s energy news looks bad for the United States – at first glance. The nation has slipped to second behind China in clean energy investment. Moreover, five of the G-20 nations have surpassed the US for clean energy investment relative to size of economy.

But look at little deeper into the report, “Who’s Winning the Clean Energy Race,” and you’ll see that the US did not slide in all forms of clean energy. In fact, its level of energy efficiency investment tops others worldwide in two of three investment categories analyzed in the report.

The US stood out as the strongest among the G-20 nations for public market financing of energy efficiency and related low carbon dioxide technologies and services in 2009, the year studied. And it dramatically surpassed all of the other countries when it came to venture capital for these resources.

In fact, the report found that the US “remained the overwhelming leader in venture capital investment” with energy efficiency and smart grid among the top resources attracting investors. VC investment totaled $3.9 billion in the US, far exceeding the second place country, Brazil, with $0.7 billion. China had only “negligible” VC activity.

“The United States remained the enduring leader in venture capital investment, reflecting its strong foundation of technology innovation,” the report said.

There are some good arguments to be made for the US’ pursuit of energy efficiency. Energy prices reverberate throughout the economy, pushing up the cost of goods and services when they rise. Efficiency advocates like to say that the megawatt never generated is the cheapest one, so it’s best to pursue all cost effective efficiency before building new energy infrastructure.

After reading the Pew report, it’s easy to see why the Obama administration is pushing so hard to build the energy efficiency industry in the United States, one positioned to export its innovations to the world. Obama reiterated his commitment March 30 in a speech to students at Georgetown University:

And by the way – we also know that ushering in a clean energy economy has the potential to create an untold number of new jobs and new businesses – jobs that we want right here in America. Part of this change comes from wasting less energy. Today, our homes and businesses consume 40 percent of the energy we use, costing us billions in energy bills. Manufacturers that require large amounts of energy to make their products are challenged by rising energy costs. That’s why we’ve proposed new programs to help Americans upgrade their homes and businesses and plants with new, energy-efficient building materials like lighting, windows, heating and cooling – investments that will save consumers and business owners tens of billions of dollars a year, free up money for investment and hiring, and create jobs for workers and contractors.

Of course, the Pew report relies on figures that are now a few years old. Have we maintained our position? Will we build the energy efficiency export industry that is just getting off the ground? It’s hard to say. But the bigger question in energy is always: What will be the game changer? Who will come up with the light bulb of the Internet age? Call me an optimist, but I’ll bet on the country of innovators.

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Electric Cars and the Kindness of Strangers

Guest blog by Cara Miale

March 23, 2011

As if we don’t have enough phobias already, now there is range anxiety, a malady brought on by the electric car. But it’s okay; there is a cure, or rather an app for that.

Studies indicate that many electric car drivers – and those considering joining the ranks – suffer the fear of running out of power and being stranded with a dead battery. A little planning ahead could take the pressure off; there are an estimated 1,400 vehicle charging stations in the United States today and the number is growing. Even though most people drive less than the 100 miles a day allowed by many EV’s, range anxiety remains a logistical – and largely psychological – impediment to widespread electric vehicle adoption by consumers. One 2010 study showed range anxiety even caused EV drivers to modify their driving behaviors, decreasing the travel range and limiting most trips to no more than 25 miles.

Several companies have stepped up to ease the pain. The navigation system in the new electric Ford Focus finds electrical charging stations nearby and can help the driver conserve power by suggesting turning off the A/C or taking a more leisurely route. Google Maps, in partnership with the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) recently added electric vehicle charging stations to its popular platform, allowing users to search for and pinpoint more than 600 charging stations.

PlugShare, a new free app from Xatori, goes one step further with a personal touch: users can find home charging stations close by, and even list their own as a safe-haven for range-anxious drivers. PlugShare works with iPhone, iPad and iPod Touch, and you don’t need an EV or a special outlet to join. Accounts are customizable; those who wish to share can list their name, number and address as well as what types of energy they have available and where to find it (like the garage). The integrated app uses handy icons to identify private and public standard outlets, EV plugs and charging stations. With just a few clicks, you can identify the nearest charging station, call or text the person who listed it, and get directions. PlugShare hopes to launch a study of the app’s impact on the environment so users can celebrate the positive impact they’re making, not unlike other resource-sharing models like Denver B-cycle (members can track their miles ridden, calories burned, carbon off-set and money saved – and compare their stats to other members of the B-cycle community).

PlugShare’s website even encourages those without EVs to join the community: “Sooner or later an EV owner may ask to charge at your outlet, and you’ll be able to talk to a real person (not a dealer or a salesman) to find out if an EV is right for you!”

With President Obama’s goal to have one million electric vehicles on the road by 2015, community-building applications like PlugShare may bring the unintended benefits: more folks who get to know their neighbors. And, it could mean the end of the EV car salesman as we know him.

Cara Miale is a freelance writer in Denver.

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Breaking light bulb myths

By Elisa Wood
March 16, 2011

I have to agree with the Tea Party; the US government should not choose the light bulbs I use in my home. And fortunately, it does not.

Yet that’s the spin being pushed by those who want to roll back federal lighting performance standards. An odd mythology is developing around the standards.

Opponents claim that the standards amount to government picking and choosing winners and forcing them upon us. More specifically, they say that the feds have banned the incandescent light bulb, which has been around since Thomas Edison’s time.

This is not true; the incandescent light bulb is not being banned; the standards are agnostic about technology type as long as they perform as required. The 2007 law is meant to act as a market mechanism that encourages innovation. With a benchmark to work towards, scientists, engineers and product designers are working to displace older, inefficient devices. Already several different kind of light bulbs have made their way into the marketplace, including a new and better incandescent.

We have efficiency standards not only for light bulbs, but also for refrigerators, water heaters, air conditioners, microwaves and other appliances. They are nothing new. Those who see them as government intrusion may be surprised to find that the first US appliance standards were set under Ronald Reagan.

Still one might ask, do we really need appliance standards? Are they worth the bother? That’s a $300 billion question – the amount the American Council for an Energy Efficient Economy estimates the US will save on electricity costs by 2030 through existing appliance and lighting standards.

Here are other important points about appliance standards made by Steven Nadel, ACEEE’s executive director, in a testimony on March 10 before the US Senate’s Energy and Natural Resource Committee. Nadel urged that Congress reject S. 395, the Better Use of Light Bulbs Act (BULB), which would repeal lighting standards set in 2007 under the Bush administration.

• Appliance standards generated 340,000 net jobs in the U.S. in 2010.
• The majority of the standards are based on consensus agreements between manufacturers and energy efficiency advocates.
• Four types of bulbs already meet the standards, although the standards do not take effect until 2012. Two are incandescent bulbs.
• The 2007 lighting standards, alone, are expected to reduce annual electricity use by 72 billion kWh by 2020, enough to serve the annual electricity needs of 6.6 million average households and avoid construction of about 30 power plants.
• ACEEE forecasts that the lighting standards will reduce consumer energy bills by more than $7 billion by 2020, or about $50 per American household annually.
• A recent USA Today survey of 1,016 adults found that despite misinformation circulated about a light bulb ban, 61% of Americans favor the 2007 lighting standards, while 31% say they are bad.

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May the Force be energy efficient

By Elisa Wood

March 9, 2011

It was hard to get excited about IBM’s Watson besting two humans in the TV game show Jeopardy and walking away with a $1 million prize last month. After all, thanks to the entertainment industry, we’ve seen robots and computers win in all kinds of ways, from HAL duping the smart astronauts in2001: A Space Odyssey to R2D2 disabling the Death Star. What’s the big deal about racking up some trivia points?

Stay tuned because Watson’s got bigger plans. This computer system understands natural language and can use that ability to solve problems and answer questions precisely. As IBM tells it, Watson can use this ability to bring us beyond smart grid into genius grid.

If you’re an energy company looking to hire something that appears to be aGoogle/C3P0 hybrid, consider Watson’s curriculum vitae. IBM says that Watson can:

• Assist energy personnel working in the field and educate consumers about their energy use – a distribution line worker and marketing specialists all in one.
• Help with decision-making in energy control rooms. Watson where were you in August 2003?
• Be on standby via cell phone (no lunch breaks) to answer queries from field personnel who need help with troubleshooting. Watson can suggest the correct action to fix a power disruption and identify causes of certain problems in the field.

At a more personal level, Watson can teach humans about their energy consumption, according to IBM. Watson’s a quick study and can assimilate energy best practice databases. Consumers might query Watson on how to improve their energy management. Watson would answer by drawing on deep knowledge of smart meter data, weather and historical information.

Watson, it appears, may put our robot heroes from Star Wars and 2001 to shame. I’ve always wondered how much energy The Force used, especially when theJedi were all using their lightsabers at once. Maybe Watson can offer them a little advice on peak shaving.

This blog is open source & copyright free with attribution to www.realenergywriters.com.

Prospects for US energy efficiency companies in Israel

By Elisa Wood

March 2, 2011

The push for energy efficiency has clearly become worldwide, creating new prospects for US green energy companies to pursue export and foreign partnerships.

One such opportunity comes from Israel, with the help of the United States-Israel Science and Technology Foundation (USISTF), a Washington-based non-profit organization.

Israel is not a country we hear much about in terms of energy opportunity. China, India, North America, South Korea, Japan – these countries tend to steal the headlines in energy news.

But Ann Liebschutz, the foundation’s executive director, says new frontiers are opening in Israel because of its drive to adopt clean energy and its expertise in communications technology and software – the foundation of smart grid. Moreover, Israel’s Office of the Chief Scientist offers funding that US companies can benefit from when they partner with companies in Israel.

“In the energy efficiency space, Israel is uniquely positioned to provide services and products to US industry. Smart infrastructure and buildings — a lot of that is software driven. And that is where Israel’s core strengths are,” Liebschutz said. “If I were a US company, I would be looking to where the most significant research and development is taking place. Being able to plug into the emerging industry in Israel will produce a lot of assets for US companies.”

How do US companies tap into these opportunities?

One way is through partnerships that the USISTF is currently setting up between US states and Israel. Wisconsin was the first state out of the box, and now has a joint solicitation underway with the Israel government, available here,http://www.matimop.org.il/Content.aspx?code=256&cat=21. The two governments seek proposals from Israel/Wisconsin partnerships working on industrial and technological research and development. The goal is to develop innovative products or services that can be commercialized in the global market. The proposals are not confined to energy efficiency, but it is a sector that will be considered.

Winning proposals will receive financing from both Israel’s government and the Wisconsin Department of Commerce. The Israel partner can secure an interest free loan for up to 50% of project costs, plus special incentives for those ventures located in development zones. The Wisconsin partner is eligible for up to 50% of project funding from the state in the form of either tax credits or a low interest loan with deferred repayment schedules.

The USISTF also is in the process of negotiating additional partnerships between Israel and the states of Virginia, Maryland, Colorado and Oregon.

More details about the USISTF is available at http://www.usistf.org/index.html.

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