Upload
alliance-to-save-energy
View
1.585
Download
0
Embed Size (px)
DESCRIPTION
Hiroyasu Naito, President of Rinnai Corporation
Citation preview
Mr. Hiroyasu NaitoPresident
Rinnai CorporationNagoya, Japan
International Policy Leaders Dialogue on Energy EfficiencyThe Alliance to Save Energy
Washington, DC
Corporate headquarters: Nagoya, Japan
Formed in 1920
Operate in 20+ countries around the world
One of world’s leaders in gas technology and gas appliances
Leading manufacturer of on-demand/ tankless water heaters in the world
Head OfficeHead Office
Corporate headquarters: Peachtree City, Georgia (south of Atlanta)
Formed in 1974
Tankless water heaters, direct vent heaters, fireplaces
Leading share of on-demand/ tankless water heaters in the US
Climate change
National security
Economic competitiveness
Quality of life
Gasoline prices up substantially
Soaring electricity and natural gas prices
Global climate change
Concern for energy security is at an all-time high◦ World market for oil and gas◦ Electricity generating capacity and grid reliability
We’ve reached the tipping point: government, industry, and the public all agree there is no turning back…we have to re-think how to work together
7 billion people projected to call the Earth home in 2012◦ Only 6 billion in 1999◦ 6.7 billion today: China (1.33billion), India (1.15 billion ), US (304
million)
Projected energy consumptions 2030 v. 2004:◦ Worldwide: 57%◦ Developed countries: 24%◦ Developing countries: 95%◦ China and India alone will be 45% of
the worldwide increase
Electricity◦ US alone: expected to grow 39% from 2030 v. 2005
Oil◦ US: 5% of world population, consumes 25% of the world oil, but the
GNP in China is growing at 4x the rate of the US
Imagine if the Chinese and Indian lifestyle gets more “western”, impact on electricity and oil◦ Oil usage would rise from 87 million barrels/day to 247 million
barrels/day, exceeding the capacity of the planets ecosystem
Unsubsidized, ◦ Coal and gas is in the 5 – 10 cents/ kilowatt hour◦ Nuclear is 5 – 10 cents/ kilowatt hour◦ Wind energy is 8 – 10 cents/ kilowatt hour◦ Solar energy is currently more than 30 cents/ kilowatt hour, but
public interest and public policy has a lot to do with prices
US was largest emitter, but passed by China in ’07◦ China: 24%◦ US: 21%
Projected increase in carbon emissions 2030 v. 2003: 75%
Carbon caps will be coming in some form◦ Global carbon trading has already increased from $10billion in ‘05
to $63billion in ’07
Water heating: 13 – 17% of home energy cost #1 energy cost behind heating and cooling
Traditionally done with a tank, that heats water 24/7/365, inefficient by design
Each year: approx 9.5 million tank water heaters sold
60 million US homes heat their water this way
Responsible use: heat it only when you need it
Off when it is off
30% more efficient than typical tank water heater
Energy is conserved, since actual therms are reduced
If consider replacing 500,000 homes with Rinnai water heaters rather than gas tank water heaters:◦ Consumer savings: $51 million ◦ CO2 reduction: 442 million pounds◦ Landfills: save the space of 130,000 SUV’s◦ Therms reduced: 37 million
These savings are per year, every year
No waiting for twenty years to get these savings: Commercially available today and sold in all fifty states
Must be a cooperation on multiple levels
Both industry and government take responsibility to work together
Rinnai approach: we have an obligation to bring the most EE equipment we can to market
Invest in R&D, pushing the technological limits
Understand the market application
Must prove it is high quality, performance, safety, reliability, on a mass-production basis
In Rinnai’s case:
Engineers, architects, code officials, gas companies, builders, specifiers, and installers
Proper sizing, application, and intended use Raise the technical competence 90,000 industry people trained; 31,000 active
installers in-person installer training www.rinnai.solutions.com developed just for
technical people Get them installing, help them build their confidence
Public relations and media outlets Performance, safety, and proper use Created www.foreverhotwater.com, with many inter-
active tools Make the consumer comfortable with the technology Dispel myths, explain the process, connect them with
trained installers Answer as much consumer information as possible,
since installers often are not sales people Feed electronic sales leads to the installers Make installer feedback public to keep quality high
Warranty returns as a per cent of sales: less than 0.5%
Leading market share We don’t have customers, we have “believers” High quality product + proper installation = market
introduction success We consider training for proper installation and
educating the consumer our “obligation”
At this point, government needs to come forward with incentives and policy support
Tax Incentive Energy Star Regulation Change
Timeline
‘07 ‘08 ‘09 ‘10 ‘11 ‘12
Tankless Sales
Click 3x for animation
Manufacturers are more confident that they might ultimately achieve a return on their energy-efficient technology investment
Prices for manufacturers and installers stabilize or fall, which stimulates consumer sales
More volume installed, positive impact on consumer prices, more benefit to the environment, and more energy is conserved
Policy and process must be led at the federal level, and must not let it default to multiple versions of
state codes
Multiple versions of state codes drives up costs, which are passed to consumers, inhibiting growth, energy is not saved; everybody loses
US is a leader in many categories; should be a leader in all energy efficiency categories as well
Policy-makers need to study what has been successful in other countries, and get it moving in the US sooner
Otherwise, a lot of money and time is wasted
Future solutions will not just be discrete projects, but combinations of technologies◦ “Silos” of different technologies will become a thing of the past
Therefore incentives, public policy and laws needs to be technology “neutral” with the goal just focused on higher efficiency standards
Rinnai will continue its move to expand from gas appliance company to energy solutions portfolio company
Rinnai is optimistic that the political climate and government policy is now more favorable than ever before toward energy efficient technology
Rinnai will continue to innovate and broaden our energy solutions portfolio in the market
We are hopeful that policy-makers will strive for “innovation” in their process, and quicken their pace on facilitating support for new technology
If the cooperation is working properly – and keeps pace with industry – it will be a great enabler for energy efficiency, and for Rinnai making the business case of energy efficient products-to-market successfully.
Thank you.