Energy Exchange

EDF Energy Innovation Series Feature #6: The Learning Thermostat From Nest

Throughout 2012, EDF’s Energy Innovation Series will highlight more than 20 innovations across a broad range of energy categories, including smart grid and renewable energy technologies, energy efficiency financing, and progressive utilities, to name a few. This series will demonstrate that cost-effective, clean energy solutions are available now and imperative to lowering our dependence on fossil fuels.

For more information on this featured innovation, please view this video on Nest’s Learning Thermostat.

Imagine you were the leader of the team that developed the first 18 iPod models and the first three iPhone models, and you’ve decided to move on to the next big thing.  What will you invent next?

Tony Fadell was the leader of those teams, and when he left Apple he set his sights on reinventing the home thermostat. That’s right, the home thermostat. And his company – Nest Labs Inc. (Nest) – has become one of the hottest startups in Silicon Valley.

Thermostats have evolved over the years, and many companies now make programmable models that can adjust temperature settings throughout the day. That’s good news: residential and commercial heating and cooling accounts for nearly 40% of all U.S. carbon emissions. So improving the efficiency of heating and cooling is a critical piece of the climate puzzle and helps to lower electricity bills.

But even today’s “modern” thermostats seem to miss the mark.

“I bet your thermostat is ugly and impossible to program,” Fadell writes on his blog. “And I bet it drives you crazy.”

Source: Nest Labs Inc.

The Nest Learning Thermostat looks like an old-fashioned circular thermostat that got a 21st century facelift. You can certainly see the design approach that produced the iPod and iPhone. But what’s inside the Nest is more interesting: proximity sensors that know when you’re home, software that learns your heating and cooling preferences and wireless technology that allows you to monitor and adjust it from a website or a smartphone.

Nest says that few people use whatever programmable features their thermostats might have, and energy-conscious owners that adjust their thermostats manually (when they leave or arrive) make up to 1,500 adjustments a year. Nest’s Learning Thermostat automates those adjustments and makes them a lot easier.

“We threw out everything we know about regular thermostats and started from scratch,” said Nest’s director of corporate communications Kate Brinks. “And we ended up with a product that’s squarely focused on the user.”

Nest estimates that 90% of us don’t want to fiddle with the programming features of thermostats. So its device “learns” its owners preferences based on how the temperature is adjusted over a week or so, and then sets a schedule based on those preferences. Its proximity sensor can detect when the home is empty and when people arrive and build those patterns into its schedule.

For users that DO want a firmly set schedule, the “learning” features can be turned off. And for the growing number of smartphone owners, the device can be securely monitored and adjusted from anywhere. Brinks says that 99% of installed Nest thermostats are running an energy-saving schedule.

The smart grid, the Internet and wireless technology are creating a convergence of consumer electronics and energy. More and more of our daily activity involves devices and systems that can now be connected. Making that potential relevant, easy and even enjoyable for people will determine whether these products go mainstream and make a real impact on our overall energy use.

Nest says its Learning Thermostat is installed in every state in the US, has recently expanded into Canada and is now available at Lowe’s, on Apple’s online store and Amazon.com.

As you’d expect from a Silicon Valley tech start-up, Nest is mum on its plans for future products. “We’re 100% focused on making the simplest, most user-oriented thermostat,” said Brinks. But it’s hard to imagine that the company doesn’t have plans to reinvent a few other home-based products.

Posted in Energy Efficiency, Energy Innovation / Comments are closed

Saving Lives By Upgrading Buildings

NYC Government, Private Sector and Civic Groups Collaborate to Cut NYC’s Soot Pollution from Heating Oil 50% by 2013

At a press conference in the Bronx today, EDF stood with leaders in government, finance and real estate to launch an unprecedented partnership to upgrade thousands of buildings in New York City to clean heating fuel and greater efficiency, with the goal of cutting soot pollution in the most polluted neighborhoods.

EDF President Fred Krupp said “The heating oils used in one percent of New York City buildings create more soot pollution than all the cars and trucks in the City combined – that’s why upgrading these buildings to cleaner heating fuel is the single largest step New Yorkers can take to solve local air pollution.”

This project can only set such ambitious goals – and win – because the right stakeholders are at the table to get it done.  Everyone is doing their part: 

  • Government is setting background regulations in a way that gives buildings flexibility on how to achieve the pollution reductions;
  • Real estate leaders (from supers to landlords and managers) are “doing the math” for their buildings to find the most cost-effective path to solutions that both cut heating costs and reduce pollution;
  • Utilities and fuel providers are expanding their services to deliver a wider range of cleaner fuels — from low-sulfur oil to biodiesel and natural gas to energy efficiency upgrades; 
  • Banks , entrepreneurs and local government are stepping up to provide financing to buildings that need it in order to swap equipment that can handle the cleaner fuels; and
  • EDF (and other non-profits) are organizing reams of data to be actionable by government and the private sector, doing outreach at the community level and making the health and business case.

In fact, today’s announcement puts almost $100 million on the table to help buildings take advantage of clean fuels and technologies.  This financing, made possible by  JP Morgan Chase, Deutsche Bank, Citibank, Hudson Valley Bank, the New York City Energy Efficiency Corporation, and the Community Preservation Corporation, will target low- and moderate- income buildings.

Leading up to this announcement, this teamwork has already resulted in 450 buildings upgraded, even before the launch.  It’s one of the largest clean energy projects for buildings anywhere.  We expect over a thousand more by the end of the year; and by targeting the most polluting buildings, we will cut pollution from heating oil in half by the end of next year.

Buildings from the legendary Beresford on Central Park West, to St. Barnabas Hospital in the Bronx are on track.  I believe that this collaboration is a powerful model for cities around the world.  By bringing together government, real estate, finance, utilities, advocates and community leaders, we’re finding practical solutions that work for health, for the planet and for today’s economy.

As New Yorkers, 80% of our carbon footprint is the result of the energy used in our buildings.  Mega-cities around the world are huge ecosystems of buildings: imagine if we could take this model of collaboration to scale, across the U.S. and the world.  Next week, leaders are gathering in Rio to work on global solutions to help save the planet.  I hope they look to what we’ve accomplished, by working together, here in New York City.

For more information about Clean Heat, see NYC Clean Heat’s webpage and EDF’s website describing the background and progress so far.

Posted in Climate, Energy Efficiency, New York / Tagged | Comments are closed

New ERCOT Report On The Texas Energy Crunch: PUC Tweaks Are A Move In The Right Direction, But Not Enough To Keep The Lights On

Last week The Brattle Group released their Electric Reliability Council of Texas (ERCOT)-commissioned report on what Texas can do to make sure we keep the lights on this summer, the next and for many future summers after.  As Jim Marston discussed in the Houston Chronicle last Friday, the Brattle Group is no stranger to resource issues in Texas: in 2009 they reported on demand response opportunities in Texas and other states in a report commission by the Federal Energy Regulatory Commission. 

Using that work and more recent analyses, the report shows the role that demand response can play in meeting Texas’ future energy needs.  Demand response is any change a customer makes in normal electric usage patterns in response to market signals; Brattle recommends developing programs that pay customers a market-based price for their actions, rather than simply asking them to reduce energy during peak hours. 

So what makes such a nerdy idea so important?  The Public Utility Commission (PUC) is considering raising offer caps in the wholesale market to better reflect the true cost of peak energy usage in an effort to create a more efficient market.  According to Brattle, this move will help, and may even be needed, but “reliance on scarcity prices is unlikely to achieve ERCOT’s current reliability objectives,” largely due to extreme weather events which are expected to become more frequent as a result of global warming.

Raising the offer caps isn’t just a purely abstract concept; it means real rate increases for Texans.  At the same time, Brattle found that Texas could meet 15% of our peak energy needs through demand response alone, but only if ERCOT gets serious about allowing residents and small businesses to participate in demand response programs that have historically been aimed at big industrial customers.  Demand response programs mean more money in ratepayers pockets, all while helping to stabilize the grid. 

Improvements in small programs with a limited scope like the “ERS” program are certainly helpful, but as Brattle points out repeatedly, those improvements won’t be enough to keep the lights on in the next few years.  Hopefully the PUC will direct as much effort into programs like demand response, which puts money back in customer’s pockets, as they have on increasing wholesale offer caps. 

Demand response is a big piece of the picture but it’s not the whole painting: energy efficiency programs and an expansion of peaking renewable resources like solar and coastal wind power will also play a large role, particularly as we consider a hotter, drier future in Texas with less water to cool power plants.   The Brattle report lays out some excellent recommendations, demand response among them, and – as the summer continues – we’ll be looking into Brattle’s work as well as other initiatives that Texas can take to find its way out of this energy crunch.

Posted in Demand Response, Energy Efficiency, Renewable Energy, Texas, Utility Business Models / Read 1 Response

When Utilities Embrace The Smart Grid, Customers And The Environment Win

By: Scott Robinson, EDF Energy Intern and Energy & Earth Resources Fellow at The University of Texas at Austin, Jackson School of Geosciences

Source: Greentech Media

Earlier this month, Greentech Media released their “Top Ten Utility Smart Grid Deployments in North America.”  These are utilities that deserve recognition—while most experts agree that bringing the transformative power of information technology to the grid is critical to achieving a clean, low-carbon economy,  being an early adopter means carrying a certain amount of risk.  A utility’s willingness to take on this risk demonstrates a long-term commitment to its customers.  EDF is championing well-designed smart grids as the path to abundant, cheaper and cleaner energy.  Because utilities will be responsible for building and operating this new “energy internet,” our push for smart grid innovation has led to productive partnerships with several of Greentech Media’s top ten.

In Austin, Texas, we are working with Austin Energy and the University of Texas, among others, to develop the Pecan Street smart grid demonstration project in the Mueller community: a real neighborhood and living laboratory that will allow researchers to better understand what smart grid will look like on the ground, as well as how individual technologies—from smart appliances to residential solar PV to electric vehicles—will interact to enable greater reliance on renewable and community-based resources.  For consumers, this means real-time insight into how they’re using energy and its true cost: understanding its source and emissions to help them make decisions that save money and shrink their environmental footprint.

In Charlotte, North Carolina, EDF is working with Duke Energy and others on the Envision Charlotte project to increase energy management in big downtown buildings, improve local air quality and reduce water consumption and waste in a concentrated urban area. We are helping to implement the use of smart grid technologies with the ultimate goal of reducing energy consumption by 20 percent in 60 high-rises over five years: through better information for building occupants about their energy use and tools enabling them to act on that insight.  Also, during the summer of 2011, two EDF Climate Corps fellows reviewed three buildings in Mecklenburg County (where Charlotte is located) and found energy efficiency measures that could save the county more than $500,000 in just five years.

In California, EDF has worked on multiple cutting-edge projects, including working directly with San Diego Gas and Electric (SDG&E) – the nation’s most intelligent utility  – and developing a “scorecard ” to evaluate the Smart Grid Deployment Plans of California’s three largest investor-owned utilities’ – SDG&E, Pacific Gas & Electric (PG&E) and Southern California Edison (SCE) for their overall direction in meeting environmental and savings goals.  We will continue to drive the benefits from the smart grid for Californian’s utility bills, health and environment. 

To maximize environmental returns on these multi-billion dollar investments in grid modernization, it is critical that utilities develop holistic plans and build open platforms that give customers access to new energy saving technologies and “apps” and enable scale integration of renewables and electric vehicles.  Done right, the smart grid will drive the clean energy revolution we need—helping utilities reliably deliver power, securing our energy independence, increasing our ability to compete in the global clean energy market, growing our economy and empowering consumers—all while protecting our air, water, and health.  EDF is committed to finding ways that allow utilities and consumers to reap the benefits of their investment in the future.

Our partnerships with utilities have led to a greater understanding of the smart grid as an emerging solution to today’s environmental and electricity problems.  We look forward to continuing our work with these energy pioneers and expanding our partnerships to help other utilities get their projects off the ground.

Posted in Grid Modernization / Read 2 Responses

Energy Innovation Series Feature #5: Data Analytics From GridGlo

Throughout 2012, EDF’s Energy Innovation Series will highlight more than 20 innovations across a broad range of energy categories, including smart grid and renewable energy technologies, energy efficiency financing, and progressive utilities, to name a few. This series will demonstrate that cost-effective, clean energy solutions are available now and imperative to lowering our dependence on fossil fuels.
 
GridGlo uses “data fusion” to analyze and predict energy consumption behavior.  Find more information on this featured innovation here. 
 

The smart grid industry is more than a foundation for solar energy and electric vehicles. It is also a treasure trove of information that requires a much more sophisticated way to capture, analyze and use the billions of bytes of information that a modernized grid and its many components will generate.

Add to that the massive amounts of weather, social, emissions and other kinds of data already being collected and you can see that a smarter grid is going offer lots of job opportunities to data geeks and software engineers.

Media and analysts predict that the smart grid information sector will be a multi-billion dollar market and companies are already jockeying for big data market leadership, from established IT giants like IBM and energy hardware companies like Landys+Gyr, to tech-driven start-ups like Florida-based GridGlo.

GridGlo works with utilities to integrate energy usage and behavioral data using its unique software platform to identify, score and predict energy consumption behavior. One of its products, Energy People Meter™ (EPM), provides a real-time digital fingerprint of energy behavior patterns and creates score that helps utilities (and consumers) save energy and money.

“Utilities have spent billions upgrading their metering infrastructure,” said GridGlo’s founder and CEO Isaias Sudit. “But those systems are now generating a lot of data and the utilities need help figuring out how to use it effectively. Our software allows them to save money on the infrastructure side, while providing new and exciting services to their customers.”

Utilities have long used data as a forensic tool to help pinpoint problems that happened in the past, such as blackouts. The real opportunity and challenge, according to Sudit, is moving from using energy data to tell us what has happened, to using it to tell us what is happening right now – and eventually, helping us predict what will happen in the future.

That kind of predictive analysis requires merging energy data with other data sets, like weather, lifestyle trends or demographics – a process GridGlo calls “data fusion.” For example, utilities could use known demographics of likely electric vehicle buyers to better plan where infrastructure improvements are needed – before the grid is overstressed. Or national or regional demographic shifts could help utilities or regulators better plan transmission construction.

“Ultimately, all of this has to show value to the customer,” Sudit said. Eventually, he thinks data fusion will be used by third party service providers and app makers, much like mobile, location and social data is used to power some of today’s most popular products.

“But our most urgent need is to show how utilities can use this information to provide value directly to customers,” he said. “If we can do that, the secondary markets will follow.”

 

Posted in Energy Innovation, General / Comments are closed

The Missing Link: Energy Efficiency Data And The Capital Markets

EDF And Bloomberg New Energy Finance Host A Successful Conference

Last week, Environmental Defense Fund (EDF) and Bloomberg New Energy Finance (“BNEF”) hosted 150 property owners, energy efficiency project developers, ESCOs, banks, institutional investors and other thought leaders to discuss how improved datasets could spur the market for energy efficiency (EE) investment.  Dan Doctoroff, Bloomberg’s CEO, kicked off the morning by discussing the company’s plans to provide this data and how similar efforts have spurred financial innovation in the past.

Three types of energy efficiency data were the basis of most of the conversation:

Project Performance Data – Accurately forecasting the energy savings from a retrofit project remains an elusive goal due to wide variance in benchmarking and forecasting standards.  Chris Lohmann of the Department of Energy discussed a large database that he is developing that will attempt to provide comparisons to historical projects.  Elizabeth Stein of EDF discussed a project that she is leading to develop a standardized methodology for estimating savings and pointed out that robust standards for comparing projects will substantially enhance the value of an EE project performance database.

Benchmarking Data – New York, San Francisco and other cities have taken steps to benchmark energy usage for commercial tenants.  Riggs Kubiak of Honest Buildings discussed how his company is publishing this data on the web and believes it will allow prospective tenants to compare properties and spur landlords to invest in EE projects.

EE Loan Performance Data – While several EE loan programs have shown strong repayment performance to date, the rating agencies will need a far longer history in order to provide the best terms for securitizations.  On-Bill Repayment (OBR) may be able to benefit from the long history of utility bill payments to create a data stream for the rating agencies.

EDF looks forward to working with Bloomberg and other market participants on each of these initiatives.

Posted in Energy Efficiency, General, New York, On-bill repayment / Comments are closed