Energy Exchange

Setting the PACE on Clean Energy Finance

By Brad Copithorne / Published: September 26, 2013

This commentary originally appeared on EDF’s California Dream 2.0 blog.

I spend most of my time working to establish On-Bill Repayment programs that allow property owners to use their utility bill to repay loans for cost-saving energy efficiency or renewable energy upgrades. Many of my colleagues work on a similar program known as Property Assessed Clean Energy (“PACE”), which uses the property tax bill for repayment. Since both utility and property tax bills are usually paid, both PACE and OBR are expected to lower the cost and increase the availability of financing for clean energy projects.

Last week, I was invited to attend a meeting of the leading PACE program administrators, property owners and other market participants in the country — and was pleasantly surprised to learn how much progress is being made.

Connecticut launched their program in January and is expected to close $20 million of PACE transactions for commercial properties by year end. The Toledo, Ohio area expects to have executed $18 million of commercial transactions by the end of 2013. Sonoma County, with a population of less than 500,000, has already completed $64 million of financings for residential and commercial properties. In late 2012, CaliforniaFIRST launched a PACE program for commercial properties that has already received 130 applications.

Also posted in California, On-bill repayment / Tagged Energy Efficiency, OBR, PACE | Read 2 Responses

Hawaii Races To The Top For Award In Energy And Water Efficiency

By Kate Zerrenner / Published: September 24, 2013

Hawaii recently topped the national rankings for energy saving initiatives for the second year in a row. In August, the Energy Services Coalition (ESC) granted the state its ‘Race to the Top’ award for modeling excellence in energy and water efficiency. ESC’s Race to the Top challenge ranks states based on investment per capita in energy savings performance contracting. Hawaii leads with $132.25 per capita, followed by Ohio with $108.58 and Kansas with $97.77. The national average hangs at a low $37.20.

Hawaii sets a strong example for outstanding, innovative energy savings performance contracting. Performance contracts are commonly used for public-sector buildings, especially schools, which often cannot afford the upfront costs attributed to energy and water efficiency upgrades. Under many performance contracts, contractors pay the upfront costs and even guarantee net energy savings for the building owner. The contractor then recoups the investment through a portion of the resulting energy savings. This payment structure enables school districts and other public-sector entities to upgrade existing buildings with improved energy efficiency and without the worry of high upfront costs. To see why upgrades are so important for school buildings, see my other blog post here.

Also posted in Grid Modernization, On-bill repayment / Tagged Energy Race to the Top, Hawaii | Comments are closed

Welcome To Chicagoland

By EDF Blogs / Published: September 23, 2013

This commentary originally appeared on EDF’s Climate Corps blog.

By: Sitar Mody, Senior Manager of Strategy, Environmental Defense Fund

Today, EDF Climate Corps is thrilled to launch a major initiative to accelerate energy performance in buildings in the city of Chicago.

Chicago is a beautiful city. Chicago is an historic city. Chicago is also a city with a clear and powerful dedication to advancing energy efforts citywide. Many buildings in Chicago are already on a path to greater energy management having committed to Retrofit Chicago – the city’s premier initiative to help buildings reduce their energy use by 20% over 5 years.

EDF’s new Building Energy Initiative in Chicago will complement Retrofit Chicago by giving building owners and operators the “boots on the ground” to sustain their commitments and facilitate access to advanced energy markets – all to save money and the environment.

EDF is recruiting 50 buildings in the city to participate in EDF Climate Corps and developing a robust network for building owners and operators to accelerate adoption of leading energy management practices and gain confidence in implementing innovative investments. We also have two experts, Devesh Nirmul and Ellen Bell, on the ground in Chicago to provide year-round technical support.

Posted in Energy Efficiency / Tagged EDF Climate Corps, energy | Comments are closed

Two Powerhouse Texas Cities Lead Country In Energy Efficiency

By Kate Zerrenner / Published: September 20, 2013

The American Council for an Energy Efficient Economy (ACEEE) recently released its inaugural City Energy Efficiency Scorecard, which ranks cities on their energy efficiency efforts, specifically on initiatives for buildings, transportation, energy and water utility efforts, local government operations and communitywide projects.

Austin placed in the top ten at #6, followed by Houston (#13), Dallas (#14) and San Antonio (#16) in the top 20 and El Paso (#23) and Fort Worth #26 falling just below that mark. Austin and San Antonio probably don’t surprise too many people, especially in light of my previous posts, but Houston, the nation’s oil and gas capital, and Dallas, a high-powered business center, probably don’t spring to mind for most people. However, these two cities have recently turned the tide and are gearing up for a big Texas clean energy showdown.

I think it’s worthwhile to mention that these two cities are impacted by the drought, although Houston feels the strain less due to its location in the Gulf Coast flood plain. But this locational drought-buffer carries its own problems, namely the threat of rising sea-levels, which are predicted to significantly affect Houston.

On top of that, both cities are in non-attainment with ozone standards, meaning their air quality is worse than the minimum threshold set by the U.S. Environmental Protection Agency (EPA). Therefore, there is a great need to improve the cities’ air quality in order to protect local citizens from health hazards. This gives them a further incentive to undertake clean energy initiatives. Read More »

Also posted in Texas / Tagged ACEEE | Comments are closed

ICP Protocol For Standard Commercial Projects

By EDF Blogs / Published: September 18, 2013

By: Matt Golden, Senior Energy Finance Consultant, Environmental Defense Fund

The Investor Confidence Project (ICP) is pleased to announce the release of our newest Energy Performance Protocol for Standard Commercial projects – defined as multiple-measure energy efficiency projects typically costing less than $1MM.

This protocol strikes a balance between engineering and measurement and verification best practices and the need for a streamlined, cost-effective approach to developing a standardized investment quality energy efficiency project. This latest addition complements our existing Large Commercial Protocol in an effort to develop a family of protocols addressing the range of projects types common in the growing energy efficiency retrofit marketplace.

The goal of the Energy Performance Protocols, as a whole, is to reduce transaction costs associated with investing in energy efficiency projects by standardizing how projects are baselined, engineered, installed, operated and measured. This allows investors and building owners to gain confidence in the long-term return on their energy efficiency investments. The goal is to bring together project originators, building owners and investors in a more transparent, and thus more robust, marketplace.

Also posted in Investor Confidence Project / Comments are closed

The Nuts And Bolts — Or Rather Watts and Volts — Of The Energy-Water Lingo

By Kate Zerrenner / Published: September 16, 2013

A glossary of energy and water terms

In recent posts I’ve discussed the need for energy and water planners to co-manage resources more comprehensively. But another significant barrier exists: language. Water and energy planners use different terminology and a lack of understanding for these distinctions hampers true coordination. Also, it prevents customers from understanding how to make sense of their own usage patterns and maximize energy and water efficiency.

Electricity measurements

Getting into the nuts and bolts — or watts and volts — of the issue can get very dry very quickly, so let’s go over some basic units of measurement to set the stage.

Electricity is measured in watts, usually represented as kilowatts (kW), megawatts (MW), but often discussed as megawatt-hours (MWh). One MW is roughly equivalent to ten running cars engines. A MWh is the total amount of electricity produced by a power plant in one hour, roughly the amount of energy used by 330 homes in one hour. According to the U.S. Energy Information Administration (EIA), in May 2013, Texas generated 12,261 gigawatt-hours (GWh) of electricity from coal-fired power plants (1 GWh = 1,000 MWh) and only 4,116 GWh from renewable energy sources, such as wind and solar.

Also posted in Energy-Water Nexus / Tagged Energy-Water Nexus | Comments are closed