Upload
alliance-to-save-energy
View
326
Download
3
Embed Size (px)
Citation preview
Center for Energy, Development, and the Global Environment
DUKE University
October 6, 2010Durham, NC
Brian T. CastelliExecutive Vice President
Programs and Development
PathwaysPathways to to
Energy EfficiencyEnergy Efficiency
What is the Alliance to Save Energy?
- Non-profit organization headquartered in U.S.; operations world-wideNon-profit organization headquartered in U.S.; operations world-wide
- Led by Led by Senator Jeanne Shaheen (D-NH) Senator Jeanne Shaheen (D-NH) and and Peter Darbee, President and Peter Darbee, President and CEO of Pacific Gas and ElectricCEO of Pacific Gas and Electric
- Includes 15 Members of Congress – Bi-Cameral; Bi-PartisanIncludes 15 Members of Congress – Bi-Cameral; Bi-Partisan
- Also includes environmental, consumer, and trade associations heads, state Also includes environmental, consumer, and trade associations heads, state and local policy makers, corporate executivesand local policy makers, corporate executives
Working with and Across All Sectors of the Economy
170 companies, organizations, and institutions in Associates Program170 companies, organizations, and institutions in Associates Program Associates Program membership represents all economic sectorsAssociates Program membership represents all economic sectors Initiatives underway in research, policy advocacy, education, technology Initiatives underway in research, policy advocacy, education, technology
deployment, market transformation and communicationsdeployment, market transformation and communications
Features of the Global Energy Market
Tight Supplies Growing Demand Limited Spare Capacity Heightened Geopolitical and Investment risk Higher Prices Climate Concerns
……an an
UNSUSTAINABLE UNSUSTAINABLE TRACKTRACK
CLIFF CLIFF AHEADAHEAD(sorry)(sorry)
Source: Frank Verrastro, CSISSource: Frank Verrastro, CSIS
Energy use has a direct effect on…
Global Emissions: Energy use directly linked to
GHG emissions..U.S. example:
SecuritySecurity:Unchecked growth in energy demand can:Unchecked growth in energy demand can:• Accelerate fossil fuel depletionAccelerate fossil fuel depletion• Increase our reliance on foreign sources Increase our reliance on foreign sources
of energyof energy
Economy:• According to a McKinsey estimate: According to a McKinsey estimate:
“Business as usual” energy use will “Business as usual” energy use will waste more than $1.2 trillion between waste more than $1.2 trillion between now and 2020 in the U.S. alone – and now and 2020 in the U.S. alone – and this does not include transportation this does not include transportation energy consumption.energy consumption.
Why EE? Why Now? Global “Business as Usual” is Unsustainable
Global energy demand grows by 33 percent over the next 20 years, Global energy demand grows by 33 percent over the next 20 years, with coal use rising the most in absolute terms.with coal use rising the most in absolute terms.
Quadrillion Quadrillion btubtu
Why More EE? Why Now?Energy Use is a Global Climate Issue
China, 19%
Russia, 6%
Japan, 4%
India, 4%Western Europe,
13%
, 0
Others, 32%
US Other Sectors, 13%
US Buildings, 8%
Share of Global Energy-Related CO2 Emissions by Country (2005)
Source: Energy Information AdministrationSource: Energy Information Administration
As an energy resource, efficiency is: CHEAPER- Each $1 invested in Energy Star program = $75 in energy
cost savings and $15 of investment in new efficiency technologies
QUICKER- In 2001, California cut peak electricity use by 10% in less
than a year
CLEANER- “Negawatts” produce NO ENVIRONMENTAL FOOTPRINT
MORE SECURE- A “homegrown” resource!
Why Energy Efficiency?
2626
2828
3030
3232
3434
3636
3838
4040
4242
20102010 20152015 20202020 20252025 20302030
GtGt
Reference ScenarioReference Scenario
450 Scenario450 Scenario
End-useEnd-useefficiencyefficiency
Power plantsPower plants
RenewablesRenewablesBiofuelsBiofuels
NuclearNuclear
CCSCCS
52% of the required cuts in GHG emissions to achieve the 450 scenario is 52% of the required cuts in GHG emissions to achieve the 450 scenario is estimated to come from energy efficiency savings by 2030 (WEO 2009)estimated to come from energy efficiency savings by 2030 (WEO 2009)
World Energy Outlook 2009 450 Scenario
Energy Efficiency – America’s Greatest Energy Resource
44
Plenty of Opportunity for Improving Energy Intensity
Source: Frank Verrastro, CSISSource: Frank Verrastro, CSIS
Potential Demand Reduction with Industrial EE
Source: McKinsey & Company, 2007.Source: McKinsey & Company, 2007.
Energy efficiency is the most cost-effective carbon reduction optionEnergy efficiency is the most cost-effective carbon reduction option• Stated in an Independent Study by McKinsey & CompanyStated in an Independent Study by McKinsey & Company
Huge EE Potential RemainsHuge EE Potential Remains
Energy Efficiency Potential 40%Energy Efficiency Potential 40%
Adapted from McKinsey AnalysisAdapted from McKinsey Analysis
Energy efficiency should be fully considered in Energy efficiency should be fully considered in GHG reductions. All items to the left of the GHG reductions. All items to the left of the arrow represent “negative marginal costs”, i.e. arrow represent “negative marginal costs”, i.e. profitable investments profitable investments
Energy Efficiency: the 1st Fuel Average Utility Cost of New Electric Resources
0
2
4
6
8
10
12
14
16
EnergyEfficiency (a)
Wind Biomass Nat. GasCombined
Cycle
PulverizedCoal
Nuclear Coal IGCC
Lev
eliz
ed
Co
st (
cen
ts/k
Wh
)
w/o Carbon W/ $20/Ton Carbon
Source: UCS 2009 except (a) ACEEE 2009Source: UCS 2009 except (a) ACEEE 2009
Energy Efficiency: the 1Energy Efficiency: the 1stst Fuel Fuel
Many “Non-Price” BarriersMany “Non-Price” Barriers
Industrial Systems Energy Efficiency
Industrial firms tend to invest in process changes for EE and productivity – long term and high cost
Cross-cutting energy systems (motors-driven, steam, process heating) offer 20-50% savings potential
- Inefficient systems found in nearly every plant
- Near-term, lower-cost savings are from optimizing systems not components (only 2-5% savings)
Customize system energy efficiency for each site US DOE strategy since 1992 (BestPractices):
- Educate plant engineers – training, software, technical publications
- Industry partnerships
- Cost-shared plant energy assessments
U.S.: Save Energy Now
““25 in 10”25 in 10”
Drive a 25% reduction in Drive a 25% reduction in industrial energy intensity industrial energy intensity
by 2017by 2017
Saving 8.4 quads each year Saving 8.4 quads each year —— an amount of energy an amount of energy
equal to that consumed by equal to that consumed by CaliforniaCalifornia
How About Buildings?
66
• • Buildings consume 39% of all energy in the U.S., Buildings consume 39% of all energy in the U.S., including 72% of electricity, and account for 38% of including 72% of electricity, and account for 38% of carbon emissions.carbon emissions.
• • EIA projects that buildings-related CO2 emissions will EIA projects that buildings-related CO2 emissions will increase by 270 million tons by 2030, and 82% of the increase by 270 million tons by 2030, and 82% of the total projected electric load growth is from buildings.total projected electric load growth is from buildings.
• • Massive improvements in both existing and new Massive improvements in both existing and new buildings are needed at large scale & quickly.buildings are needed at large scale & quickly.
Commercial Buildings Sector – Where Are We Today?
““Net-Net-Zero”Zero”
Source: R. Anderson, NRELSource: R. Anderson, NREL
Thanks to Doug Gatlin, USGBC at Thanks to Doug Gatlin, USGBC at National Association of Realtors May 13, 2008National Association of Realtors May 13, 2008
The Business The Business BenefitsBenefits
The Business Benefits
Operating CostsOperating Costs Average Expected Decrease = Average Expected Decrease = 8%-9%8%-9% Main motivator for green in all sectorsMain motivator for green in all sectors
Energy UseEnergy Use Average Expected Decrease = Average Expected Decrease = 30%30%
Building ValueBuilding Value Average Expected Increase = Average Expected Increase = 7.5%7.5%
Operating IncomeOperating Income Average Expected Increase = Average Expected Increase = 6.6%6.6%
Occupancy and Rent RatiosOccupancy and Rent Ratios Increased Occupancy = Increased Occupancy = 3.5%3.5% Rent Ratio Increase =Rent Ratio Increase = 3% 3%
Thanks to Doug Gatlin, USGBC at Thanks to Doug Gatlin, USGBC at National Association of Realtors May 13, 2008National Association of Realtors May 13, 2008
Example Green Building Savings
Thanks to Doug Gatlin, USGBC at Thanks to Doug Gatlin, USGBC at National Association of Realtors May 13, 2008National Association of Realtors May 13, 2008
Municipal EE Challenges and Opportunities
Water systems - Aging infrastructure Leaky distribution systems
- System inefficiencies (pumps, motors)
Municipal infrastructure and operations- Inefficient buildings (housing, government offices, schools)
- Lack of energy/water metering
- Institutionalized purchasing of energy-inefficient equipment
- Inefficient street-lighting
CASE STUDY: Fortaleza, in Brazil’s Arid NE
PROBLEMS • • Many households not connected to service
•• Many inefficiencies: pumps, O&M, system management
•• Utility couldn’t afford energy costs
PROJECT: automated controls on pressure & pumping
improved data collection & analysis improved motor efficiency (replaced or re-wound them)
RESULTS • • 88 million kWh saved over 4 years
• • …while adding 88,000 new connections using same amount of water
• • $2.5 M saved every year w/investment of only $1.1 M
• • Payback: 7 months
Deploying EE at Scale Requires: A Foundation of Public Policy
To encourage technological innovation
To gain foothold in To gain foothold in marketmarket
To achieve market To achieve market penetrationpenetration
To lock in savings for To lock in savings for consumers and businessesconsumers and businesses
Key Strategies for EE Deployment1) POLICY
Improve Legal & regulatory frameworks…
Create incentives for promoting energy efficiency
Open the energy sector to private participation
Promote metering and DSM measures
Eliminate subsidies ~ Energy tariffs should recover costs ~
Modernize energy standards & technical regulations
Promote energy efficiency services market
Key Strategies for EE Deployment2) CAPACITY and AWARENESS
• Strengthen national agencies for: setting energy efficiency targets developing programs ensuring implementation• Train energy managers and auditors• Cultivate partnerships among: energy consumers, service providers, financiers• Provide Information: test EE models, document case studies, prepare guidelines, advocate.
3) FINANCING - Initiate mechanisms, such as… loan funds vendor credits leasing credit guarantees carbon finance
Why is all this important? We only have one World…
2828
Thank you!Thank you!
Brian T. CastelliBrian T. CastelliExecutive Vice PresidentExecutive Vice President
[email protected]@ase.org202-857-0666202-857-0666www.ase.orgwww.ase.org