On September 14, Executive Vice President for Programs Brian Castelli keynoted the Riso International Energy Conference 2009 at the Technical University of Denmark, where he addressed the role of energy efficiency in reducing greenhouse gases (GHG).
Zeshan Sattar- Assessing the skill requirements and industry expectations for...
Perspectives on Energy Efficiency: Opportunities, Strategies, and Technologies
1. Perspectives on Energy Efficiency
Opportunities and Strategies:
O ii dS i
Technology and Policy
Risø International Energy Conference 2009
September 14, 2009
14
Brian T. Castelli
2. Alliance Directors: Bi-Partisan
Elected Officials and Industry Leaders
Guided by an elected Board of Directors
Leaders of environmental, consumer, and trade
associations; state and local policy makers; corporate
executives
Senator Mark Jim Rogers, CEO Bi-partisan, bi-cameral Honorary Vice Chairs
2
Pryor (D-Ark.) Duke Energy
3. About the Alliance (cont’d)
b h lli ( d)
NGO coalition of 150 prominent business, government, environmental and
150+
consumer leaders.
Conduct
policy, education, research, technology deployment, market transformation
and communication initiatives
initiatives.
Headquartered in Washington, D.C. with operations in Eastern Europe, South Africa,
Mexico, India and several states in the U.S.
3
4. Energy Efficiency –
the Greatest Energy Resource
h
America's Greatest Energy Resource
Energy Efficiency and Conservation Improvements Since 1973
Have Reduced Annual Energy Consumption by 52 Quads in 2008
Energy Efficiency and Conservation 52
Petroleum 37
Natural Gas 24
Coal 22
Nuclear Electric Power
Nuclear Electric Power 8
Biomass 4
Conventional Hydroelectric 2
Geothermal, Solar and Wind 1
0 10 20 30 40 50 60
Quads
Energy Efficiency and Conservation 2008 Domestic Production Net Imports
4
Alliance to Save Energy, June 2009
5. Huge EE Potential Remains
Energy Effi i
E Efficiency Potential 40%
P t ti l
Adapted from McKinsey Analysis
9. EE potential is uncertain
i li i
Depends
Note:
- Discount rates Supply potential is
- Economic growth uncertain too
- Energy prices
- Capital turnover
- Technology development
- Market barriers
- Policy to overcome market barriers
7
10. The ‘New Green Economy’
and Green Jobs
d b
The
Th creation of so-called ‘
ti f ll d ‘green j b ’ h
jobs’ has
been touted as a major selling point for
energy efficiency programs.
- Investing $1 million in energy efficiency
generates 19 to 25 jobs
Efficiencymore labor intensive than energy
labor-intensive
production - $1 million in energy production
creates only 5 to 10 jobs
(MRG Associates 2004)
8
11. Energy Efficiency in Practice
ffi i i i
Energy efficiency as a resource
E ffi i
- Energy Efficiency Resource Standards
- ‘White tags’
- Carbon market offsets
- Efficiency projects substituting for generation
in electricity forward capacity markets
9
12. Energy Efficiency in Practice
ffi i i i
Energy Effi i
E Efficiency Resource Standards
R St d d
(EERS)
- Efficiency counterpart to renewable portfolio
standards
- Require a certain percentage of a utility’s load
to be met with efficiency measures
- Implemented by several
US states. Federal
states
program has been
proposed alongside
10
renewable standards. States with Energy Efficiency Resource Standards
13. Energy Efficiency in Practice
ffi i i i
Energy Effi i
E Efficiency Resource Standards
R St d d
(EERS)
- In some EERS programs, efficiency credits
are tradable, making efficiency itself a
, g y
tradable commodity
11
14. Energy Efficiency in Practice
ffi i i i
Efficiency in forward capacity markets
- When electricity distribution networks hold
auctions f generators t bid f contracts, some
ti for t to for t t
distribution networks now allow entities to
propose efficiency programs to meet projected
load
- The Federal Energy Regulatory Commission
recently required that the PJM interconnection
(serving much of the mid-Atlantic coast region
mid Atlantic
and some of the mid-west region) allow providers
of efficiency programs to bid in their forward
yp g
capacity market 12
15. Energy Efficiency in Practice
ffi i i i
Evaluation, Measurement,
Evaluation Measurement & Verification
- ‘EM&V’ – how to measure the additionality of
efficiency programs?
ffi i ?
- With programs promising or claiming
quantifiable energy savings, we must
tifi bl i t
develop metrics to measure success
- Several US states have developed their
own protocols, but they vary
The same CFL bulb gets credited with different
savings depending on what state it’s in, based on
different states’ assumptions
states
13
Similar issue across EU
16. End-Use Technology Example
Smart Grid - Potential Benefits
Enhance customer service
Improve operational efficiency
E h
Enhanced DR and l d control
d d load t l
Customer behavior
Support new utility business models
I t
Integrate intermittent RE and PHEVs
t i t itt t d PHEV
“The Green Grid; Energy Savings and Carbon Emissions Reductions
Enabled by a Smart Grid.” Report, No. 1016905
17. End-Use Technology Example
d h l l
Smart grid and consumer d t
S t id d data
display systems
- Allow real-time or near-real-time
knowledge of energy usage.
g gy g
- Pilot program energy use reductions
highly variable: 1%-27% (Darby
1% 27% (Darby,
2006)
- Design of human interface (viz. data
(viz
display) very important, also real-time
pricing
15
18. End-Use Technology Example
d h l l
Smart grid and consumer d t
S t id d data
display systems
- Could facilitate demand response
Not
ot necessarily reducing tota e e gy use d ect y –
ecessa y educ g total energy directly
peak shaving tends to just move
demand to other times of day, though
y g
it could reduce transmission line loss
16
19. Supply-Side Technology
Example
l
Combined Heat d Power
C bi d H t and P
- Greater fuel use efficiency through the
capture of waste heat in electricity generation,
or generation of electricity while producing
heat
- Can be used in a y thermal ge e a o
Ca any e a generation
system
- Popular in Scandinavia
- Increasingly available in smaller-scale units
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20. Miracles Wanted
i l d
American Ph i l Society list (Sept. 2008)
A i Physical S i t li t (S t
- energy storage -solid-state lighting
- thermoelectric devices -lightweight materials
- advanced windows -advanced ventilation
- ultrathin insulators -thermodynamic cycles
- behavioural research
Others
- High temperature superconductivity
- Clean energy resources
21. The American Political
Perspective
i
Energy efficiency is b
E ffi i i becoming i
i increasingly
i l
visible in national policy-making
- Energy Policy Act of 2005 (EPAct ‘05)
- Energy Independence and Security Act of
2007 (EISA)
- Stimulus (February 2009)
- Energy & Climate bill now in Congress
AmericanClean Energy and Security Act (House
of Representatives) and American Clean Energy
Leadership Act (Senate)
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22. 2005 Federal Energy Legislation
Energy Policy Act of 2005 will by 2020:
- Reduce U.S. energy use by 2%
- Reduce electricity demand by 4%
- Reduce oil use by 0%
Energy savings from
- Appliance standards
- Tax incentives – lots of incentives for buildings
- Federal energy management
- New programs authorized (but not funded –
some have since been funded in the stimulus
bill) 20
23. 2007 Federal Energy Legislation
Energy Independence and Security Act of 2007 will
by 2020 (2030):
- Reduce U.S. energy use by 4% (7%)
gy y ( )
- Reduce electricity demand by 4% (5%)
- Reduce oil use by 5% (10%)
- Reduce CO2 emissions by 5% (9%)
%
Energy Savings from:
- Vehicle CAFE standards
- Appliance standards
- F d l energy management
Federal t
- Certain building standards
- R&D program authorizations
21
24. American Recovery and
Reinvestment Act
• Major focus: the largest spending and tax bill in the
M j f th l t di d t bill i th
nation’s history
• Larger than the New Deal
• Big time opportunities …
• But also big time issues
about implementation
about implementation
• Major victory for the
Administration, but not without need for $150 billion
$
compromise to secure moderate Rs and get to 60
votes in the Senate.
26. Core Energy EfficiencyFunding
ff d
SEP Smart Grid Investment Grant
Smart Grid Investment Grant
- Appropriated: $3.1 billion Program
- Appropriated: $4.5 billion
EECBG
C G
- Appropriated: $3.2 billion Smart Grid Demonstration
Projects
WAP - Appropriated: $615 million
- Appropriated: $5 billion
HUD s EE Public Housing
HUD’s EE Public Housing
Green Jobs Capital Funds
- Appropriated: $500 million - Appropriated: $4 billion
HUD’s Green Retrofit Program
- Appropriated $250 million
24
27. Cap on carbon: 83% reduction in covered
C b 83% d ti i d
emissions by 2050 (85% of emissions are covered)
Building codes, building labels, appliance
standards and labels
standards and labels
Renewable electricity standard of 20% by 2020 –
a quarter may be met through EE, or 40% if
g
governor requests
q
Vehicle emissions standards
L d
Land use planning to reduce VMT
l i d VMT 25
28. Renewable electricity standard of 15% by 2021
R bl l t i it t d d f 15% b 2021
4% may come from efficiency if governor petitions
Improvements in model building energy codes
30% by 2010
50% by 2016
Energy Efficiency in Manufacturing
Funding for research and implementation of EE technologies,
expansion of IACs
Clean energy investment fund
Cl i t tf d
Loans, loan guarantees, etc., for commercialization of clean energy
technologies
26
29. New energy efficiency standards
N ffi i t d d
for portable lighting fixtures, commercial furnaces and reflector
lamps; new appliance test procedures
lamps; new appliance test procedures
State building retrofit grant program
Grants for retrofits of residential and commercial buildings
G t f t fit f id ti l d i l b ildi
Voluntary building energy performance information
program
- To display relative energy performance; raise public awareness
Residential High‐Performance Zero‐Net‐Energy Buildings
Initiative
- Goal to enable residential buildings without net emissions to be 27
cost‐effective by 2020
30. Thank You!
h k
Brian Castelli
Alliance t S
Alli to Save E
Energy
@
bcastelli@ase.orgg
www.ase.org
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