Energy Exchange

Jobs For Today AND Tomorrow

 The President’s response to the call for jobs now is necessarily focused on short-term triggers.  But, we must simultaneously seed the jobs for the next two to five years, or we will just keep putting ourselves back into the same hole.  These so-called “medium term jobs” must come from growth sectors in the global economy where the U.S. has skills and ideas to offer.  To me, the most promising of those sectors are health care and clean energy & resource management.

Source: Veterans News Now

It is in the latter area that the U.S. needs to, as David Brooks recently described, “set the table” with policies that create customers for the many small to large businesses that are striving to participate in this new sector.  In our survey of clean energy businesses, 73% are small businesses with less than 50 employees.  Of these, according to market research by Frost & Sullivan, one third believed that the failure to pass clean energy legislation last year had an effect on their business and 7 out of 10 thought their sales would increase if the U.S. passed new policies to reduce greenhouse gases.

When business of all sizes know that they are going to have customers – not just today from a short term stimulus or other plan, but customers derived from a long term commitment by our country to move to clean energy and less air pollution – they can  hire permanent employees.   In California, where the state has been slowly but steadily setting the table with rules for cleaner vehicles, a renewable portfolio standard, the Global Warming Solutions Act and energy efficient building codes, the clean energy sector is a growing source of jobs.  For example, according to Next 10 report from May 2011, jobs in manufacturing of clean energy and resource management activities grew 19% between 1995 and 2008 while total manufacturing employment in the state dropped 9%.

Without creating customers, “clean energy jobs” workforce training programs become a bridge to nowhere, the promise of clean energy jobs falters and businesses remain faced with lots of uncertainty and a natural reluctance to permanently hire new people.  The National Infrastructure Bank and rebuilding schools will hopefully create customers for some of these firms.  But what businesses really need to hire people is the prospect of customers over the medium-term.  We need Presidential leadership on federal clean energy policies to help deliver a steady-stream of customers and seed the jobs of tomorrow.

Posted in Energy Efficiency, Grid Modernization, Jobs, Renewable Energy, Washington, DC / Read 2 Responses

Using Financial Innovation To Break Down Barriers To Energy Efficiency Upgrades – Part 1: Commercial Buildings

Energy Efficiency Financing Blog Series

By: Brad Copithorne, EDF’s Energy & Financial Policy Specialist

Energy efficiency is the fastest, most cost-effective way to reduce greenhouse gas (GHG) emissions in the United States.  In many cases, energy efficiency (“EE”) projects can provide extremely attractive financial returns.  Using data from a 2009 McKinsey study, EDF estimates that there are at least $40 billion of investment opportunities for EE projects in commercial buildings that will provide annual returns in excess of 20%.  Despite this attractive potential, few of these EE projects are being funded in commercial buildings.

Over the past 12 months, EDF has engaged in an extensive dialogue with dozens of key industry participants to determine the barriers that are preventing development of this market.  We spoke with leading owners of real estate, lenders, institutional investors, EE project developers, academics and other nonprofits.  Based on this work, EDF has identified three primary market barriers that are preventing investment in EE projects for commercial buildings (for further details, see our recent white paper Show Me The Money: How Energy Efficiency Financing Makes Dollars And Sense):

1)     Lack of debt capacity – Most commercial buildings cannot borrow additional funds and/or have a first mortgage that includes a limitation on additional indebtedness that prevents incremental borrowing.

2)    Split incentives – Under the terms of most commercial leases, tenants pay for many operating expenses including energy costs.  Landlords, however, must absorb most capital expenses.  For an EE project this may mean that the landlord pays for the project but tenants capture the bulk of the savings.

3)    Lack of confidence in projected energy savings – Many building owners and lenders are skeptical that EE projects will achieve projected energy savings.


Energy Services Agreement – Part of the Solution

EDF has been working closely with several entrepreneurs to develop and promote a financing structure that may solve the debt capacity, split incentive and projection of savings barriers.  The structure, known as an Energy Services Agreement (“ESA”), allows an investor to agree to provide energy to a building at a price based on the building’s historical costs.  The investor pays for EE upgrades and then uses the savings to provide a return on investment.

For example, imagine a building that currently pays $100,000 per month for electricity and an investor that spends $2MM to reduce the monthly expense to $60,000.  The investor collects the $40,000 in monthly savings for 6 years in order to generate a return on invested capital.  From the building owner’s perspective, all payments are operating expense so they can be passed directly to tenants (solves split incentive) and the building incurs no additional debt.  The investor takes the risk that the project may not generate expected savings.

We have been working closely with several companies in this space, including Transcend Equity, Metrus Energy, Green Campus Partners, Serious Energy, Abundant Power, Sustainable Development Capital and GEAR Energy.  Each of them has a slightly different structure and/or target market, but EDF is optimistic that these companies, among others, will be able to change how energy efficiency retrofits are financed for commercial buildings.

Innovations in Energy Efficiency Finance Conference

Citi and EDF are co-hosting a daylong conference on energy efficiency finance on September 20, 2011 to examine innovative financing solutions for energy efficiency projects in the commercial, residential and public sectors.  Stay tuned.

Posted in Energy Efficiency / Comments are closed

Just What The Doctor Ordered: Prescription For Green Savings

By: Martin Hill, 2011 Climate Corps Public Sector Fellow at Morehouse College in Atlanta, Georgia; MPA Candidate 2012 at Clark Atlanta University

Morehouse School Of Medicine (MSM) continues to strive to be a world-class leader amongst medical institutions regarding “energy efficiency”. It is a small tucked-away medical institution in Atlanta, Georgia that serves the community in many capacities.  MSM continues to strive for a healthier world whether it is through personal care or environmental health.

MSM is no stranger to energy efficiency; Director of Facilities, Mr. Alonzo Jones, conducted an Energy and Water Conservation Audit identifying key energy saving projects to implement once funding becomes available. The Doctor’s prescription, if implemented, will save energy and money as well as reduce the institution’s carbon footprint by improving air quality through the reduction of greenhouse gas emissions.

Everyone on the facilities staff has been a doctor in their own way, which is evident in their high level of dedication displayed regarding energy efficiency projects from plumbing to the Heating Ventilation Air Conditioning (HVAC) system here at MSM. Furthermore, as I worked tirelessly with the Facilities Management Team, we discovered a cure to off-setting a few capital projects with rebates offered via Georgia Power, including incentives for lighting upgrades and energy efficient HVAC systems.

Morehouse School of Medicine has demonstrated the institution’s strong commitment to energy efficiency and serves as an example of environmental stewardship among other institutions in the medical field.

EDF Climate Corps Public Sector (CCPS) trains graduate students to identify energy efficiency savings in colleges, universities, local governments and houses of worship. The program focuses on partnerships with minority serving institutions and diverse communities. Apply as a CCPS fellow, read our blog posts and follow us on Twitter to get regular updates about this program.

Posted in EDF Climate Corps / Comments are closed

Catalyzing Change: Sustainability In A Southern Town – Part 2

By Kealy Devoy, 2011 Climate Corps Public Sector Fellow at the Town of Cary, NC; MEM Candidate at Duke University’s Nicholas School of the Environment

If there’s one thing I’ve learned while working in the environmental arena, it is that change does not happen in a vacuum. We need to actively involve as many people in the organization as possible. Generating buy-in for workplace sustainability can be challenging, but with a few key strategies, we can start winning people over.

In my last post, I outlined seven core steps to catalyzing change within an organization, and talked about how the Town of Cary has implemented the first step. Those seven steps are:

  1. Make it official.
  2. Identify the changers.
  3. Change is not binary.
  4. Operate in parallel.
  5. The Rule of 7.
  6. Market internally and externally.
  7. Celebrate successes.

Steps two through four are about how to initiate change. Here’s what I’ve been up to over the past few weeks:

#2: Identify The Changers

The changers are the people who are excited about sustainability. They have ideas, enthusiasm, and momentum. If the organization has many departments, finding changers in various parts of the organization will promote sustainability in each department. Through these changers, you can develop relationships with different individuals and departments on their terms. The initial focus should be on why sustainability is important, and what the benefits of pursuing it are.

One project I am working on focuses on energy efficiency improvements for the Town’s fire stations. The Fire Chief gave me a list of changers from each of the seven Cary Fire Stations who were chosen based on an interest in energy and environmental issues. Having someone at each station who is excited by sustainability has been exceedingly helpful in building buy-in.

#3: Change Is Not Binary

Sustainability is not simply green or not. There are many facets of sustainability, all of which are steps in the right direction. It is important to tackle only as many projects as your organization can handle. Start small, minimize risk, and pick the low-hanging fruit. You don’t need to be generating all of your power from solar panels by tomorrow in order to be sustainable.

Energy efficiency is a great way to get started. Many projects involve low-to-no cost, such as turning down temperatures on hot water heaters and enforcing thermostat temperature set points. Other projects have short payback periods, like upgrading exit signs to LEDs. Still more projects, like preventative maintenance of HVAC systems, have co-benefits including improved occupant comfort and better indoor air quality.

#4: Operate in Parallel

Because the route to a sustainable organization is ongoing and ever-evolving, we should use many simultaneous tools to catalyze change. These include comprehensive strategic plans, various investment structures, capital projects, maintenance programs, and more.

One important consideration here is the impact of these projects on the facilities and maintenance staff. The Town chooses to operate in parallel not only in pursuing projects, but also with how to implement these projects so that their facilities team does not get overwhelmed. Namely, they choose their in-house projects wisely, and hire contractors for the rest.

These three steps are an important part of initiating change within an organization. The next three steps are all about how to communicate this change effectively and efficiently. Check back soon for more on the remaining three steps!

This post reflects the personal opinions of Kealy Devoy, and does not reflect the positions, strategies, or opinions of the Town of Cary.

EDF Climate Corps Public Sector (CCPS) trains graduate students to identify energy efficiency savings in colleges, universities, local governments and houses of worship. The program focuses on partnerships with minority serving institutions and diverse communities. Apply as a CCPS fellow, read our blog posts and follow us on Twitter to get regular updates about this program.

Posted in EDF Climate Corps / Comments are closed

Just Do It: Sometimes Jumping In With Both Feet Is The Best Choice To Make

By Jen Weiss, 2011 EDF Climate Corps Fellow at Shaw University, MEM Candidate, Nicolas School of the Environment, Duke University, Durham, NC

A few weeks ago, I found myself peering over the edge of a forty-two foot platform willing myself to take the leap – to tackle the Mega Jump.  Okay, maybe peering is not the right word.  I was gripping the side of the platform, looking out over the horizon, and wondering how I had ever gotten convinced to do this given my severe fear of heights.  But, there I was.  I decided to stop thinking about it.  Better to trust that it was all going to work out fine than analyze every detail.  I closed my eyes, released my grip, and jumped …

The next moment, I was on the ground.  I checked for breaks or cuts – nothing.  The only thing I felt was exhilaration – a feeling of success and accomplishment.  I had done it. And I had survived.

I get a similar sense of nervous anticipation with energy efficiency.  What’s that?  You don’t follow my leap?  Consider this …

I have just wrapped up my EDF Climate Corps Fellowship at Shaw University in downtown Raleigh.  My EDF partner, Eliza, and I have made recommendations that could save the university over $125,000 a year in annual energy savings.  And, some of these recommendations come at absolutely no cost:

  • Power management (sleep mode) for PCs and copiers
  • Summer setback temperatures for some of the dorms
  • Upgrading exit signs to LED versions
  • Upgrading the residence hall’s laundry services to more energy efficient washing machines
  • Consolidation of office equipment and mini-fridges

A few other recommendations have a small price of admission, but with Progress Energy rebates and very short payback periods, they can be done quickly and savings can be seen within six months:

  • Install vending misers on all vending machines
  • Upgrade lighting to more efficient T-8s
  • Install programmable thermostats (my personal favorite – the savings here are huge!)

Shaw is now standing on the edge of the platform waiting to jump.  The eager faces in the audience as Eliza and I presented these recommendations tell me that they have the desire and commitment to make the changes and lead Shaw into sustainability.  And they certainly have the experience and knowledge to get it done.  The next step is up to them. 

At this point, Shaw needs to take a leap of faith. They need to jump off the platform and feel the exhilaration that comes from saving the planet (and saving money).  There is absolutely nothing to lose and a tremendous amount to gain. My advice? 

Just Do It!

EDF Climate Corps Public Sector (CCPS) trains graduate students to identify energy efficiency savings in colleges, universities, local governments and houses of worship. The program focuses on partnerships with minority serving institutions and diverse communities. Apply as a CCPS fellow, read our blog posts and follow us on Twitter to get regular updates about this program.

Posted in EDF Climate Corps / Tagged | Read 1 Response

Fulfilling The Spelman Legacy: A Choice To Change The World

By: Melissa Wise, 2011 Climate Corps Public Sector Fellow at Spelman College; MBA candidate at Keller Graduate School of Management

Here I am back on Spelman’s campus.  It’s been eight years since the first time I walked through their gates as a student.  I never thought that I’d be back here so soon after graduation, living a dream that I once had out of desperation as a “freshwoman” trying to survive the non-air-conditioned dorms.  I had a vision of one day returning to the Spelman community as an Alumna and providing at least one dorm with the air-conditioning that it deserved.  It seemed to be a “rite of passage” at Spelman for first-year students to live in non-air-conditioned buildings. Those unbearable long summer seasons in “Hot-lanta” will never be forgotten.  So, I vowed that when I became a well-established businesswoman, it would be my gift to the school.  Being a fellow with EDF may make that dream come true a little sooner than planned.

 Here’s what I’ve learned upon my return:

  • The Suites, Spelman’s newest dormitory, received a silver-level certification from LEED.  This makes it the first of its kind for a residence hall on the campus of a historically Black university.
  • My office equipment inventory has shown that Spelman uses a very high percentage of Energy Star products including: copiers, fax machines, computers, and monitors. Spelman also has a high percentage of Energy Star vending and snack machines.
  • Lighting upgrades are well under way from T12 to T8 bulbs, along with many other energy efficient bulb choices.

 And the list just goes on at this pioneering institute.  Often, I find myself coming across an idea for a possible improvement, just to find out that it has already been considered or underway in future plans.  Spelman seems to have it all under control, so I’ll just have to keep on digging!  It is definitely hard to find fault behind these gates.

 Interesting quotes I frequently hear:

  • “It’s my choice, and I choose to change the world!” A line from Spelman’s theme song sung by our Glee Club.  I hear this song or see this phrase often around campus and in articles on the school website.
  • “Ahh, touché!” Friendly debates involving opposing views of equipment and upgrades.  For example, the campus mechanical “Mr. Fix –it” may feel that a heating/cooling unit needs to be replaced due to its extensive life cycle, while the Automatic Control System guru will say that it’s working just fine. Who is right?
  • “Hey, who turned out the lights?” The Director of Facilities Management and Services (my supervisor) will randomly make trips to areas around campus during peak demand hours and turn off lights in unoccupied areas.

Choosing to change the world may seem like a difficult task for such a small school, but Spelman is no stranger to leadership and service. Be it students, alumnae, faculty or staff, Spelman is dedicated to serving its community and making choices that will impact many generations to come.  I am proud to join the continuous, precious legacy of Spelman’s story that dates back to 1881. Needless to say, this opportunity is a dream come true.

EDF Climate Corps Public Sector (CCPS) trains graduate students to identify energy efficiency savings in colleges, universities, local governments and houses of worship. The program focuses on partnerships with minority serving institutions and diverse communities. Apply as a CCPS fellow, read our blog posts and follow us on Twitter to get regular updates about this program.

Posted in EDF Climate Corps / Comments are closed