Building a Bridge to the Future: Efficiency Enabled

Building a Bridge to the Future:

Efficiency Enabled

Dr. Branko Terzic, P.E.

Regulatory Policy Leader, Energy & Resources, Deloitte Services LP

April 26, 2012

National Environmental Balancing Bureau

Copyright © 2012 Deloitte Development LLC. All rights reserved.

Global issues

• Increasing demand for energy

• Increasing global warming probability

• Increasing national security concerns

• Increasing prices under any scenario


Primary Energy Consumption by Source and Sector, 2010 (quadrillion Btu)


National Petroleum Council

• Letter of President Bush of October 5, 2005, to NPC

– “What does the future hold for global oil and natural gas supply?”

– “What…oil and gas…supply and/or demand side strategies does

the council recommend…?”

• Answer of NPC in HARD TRUTHS: Facing the Hard Truths about

Energy” July 18, 2007

– Sorry, Mr. President, but “an understanding of all energy forms

necessary to provide meaningful advice on oil and gas.” Thus the

response can back about electricity production and fuels!

– First “moderate demand by increasing energy efficiency

– Then “Expand and diversify U.S. energy supply”


Climate change consensus

• Let us agree with UK’s Stern Review

– Climate change can be considered as insurable risk

– Payment of annual insurance premium is acceptable

– Premium payment is in form of funding of research

and programs

– Select programs according to Terzic Classifications

Order of Risk and Reward


Terzic classes of climate change action

• Class I: Practical, affordable solutions we

can implement today;

• Class II: Less economical solutions with

significant societal value that deserve

consideration; and

• Class III: Difficult but impactful solutions

without associated societal benefits.


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Manufacturing energy balance

Petroleum (Aviation, Diesel, Propane,

Gasoline, Fuel Oil, Bunker)

Natural Gas (Gas supply, Pipeline

transportation, Distribution

delivery, Bundled natural

gas service)

Coal

Renewable (Biomass, Solar, Wind)

Electricity (Supply, Distributed

delivery, Bundled electricity

service)

Electricity Stand-by

Generation

Co-Generation (Electricity, Process steam)

Manufacturing (Process equipment, Refrigerated

storage)

Buildings (Office, Warehouse)

Transportation (Airplanes, Trucks, Cars)


The wise energy way

• Evaluate needs carefully

• Determine acceptable levels of risk

• Benchmark against peers

• Consider demand and supply options

• Check assumptions

• Build in flexibility


Efficient Building Systems Utility

Communications

Dynamic Systems Control

Data Management

Distribution Operations

Distributed Generation & Storage

Plug-In Hybrids

Smart End-Use Devices

Control Interface

Advanced Metering

Consumer Portal & Building EMS

Internet Renewables

PV


Policy recommendations

• Enable energy efficiency

• Get the pricing right

• Remove barriers

• Educate policymakers, the media and

public

• Join the Climate Change/Energy

Conversion debate


Branko Terzic

[email protected]

Office +1 703.251.4350

mailto:[email protected]

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Documents

Building a Bridge to the Future: Efficiency Enabled