Energy Exchange

General Motors Reposts EDF, Revokes The Heartland Institute

(Source: www.inhabitat.com)

Did EDF’s own Jamie Fine and Colin Meehan have a little influence on General Motors (GM)? Perhaps? Just a few days after GM reposted on their website a blog written by Jamie and Colin on the EDF Energy Exchange explaining the Chevy Volt’s brief production suspension and emphasizing it is not a reason to worry about the future of electric vehicles (EVs), GM decides to change course on climate change. Whereas once they were a denier by proxy, they have now seen the light. On Friday, GM announced they are pulling funding from the climate-denial group the Heartland Institute, an industry front group with contributors like Charles Koch and the U.S. Chamber of Commerce.

This announcement came after GM’s CEO Dan Akerson gave a speech last month stating that they are operating under the assumption that climate change is happening. This new messaging for GM is now consistent with their advances in alternative auto technologies such as the Volt. It would be difficult for many consumers to choose the Volt while wondering why GM takes those dollars – $45,000 over the last 3 years including 2012 – and funds active climate deniers like the Heartland Institute.

As we told you a few weeks ago, the recent pause in production of the Volt is not a reason to worry. Despite not reaching their rather optimistic sales projections, the Chevy Volt and Nissan Leaf are actually beating the sales history of their hybrid cousins. When the Toyota Prius and Honda Insight were offered as the first commercially available hybrids in 2000, only 9,350 cars were sold. The Prius is now among the best selling cars in the U.S. with over 2 million vehicles on the road. Meanwhile just last Friday, GM announced that record Volt sales in March are reportedly leading them to consider ramping up production. Change takes time and if the Volt is already outpacing its hybrid competitors, we can potentially expect millions of Volts on the road in the next decade. But you wouldn’t believe that if you listened to the naysayers.

Maybe after being on the receiving end of faux alarmists – who are all too excited to write the obituary for “Government Motors” and a fossil free future – GM is rethinking its support for groups that ignore the truth and distort facts just the same.

Posted in Climate, Electric Vehicles / Comments are closed

Energy Innovation Series Feature #2: Fuel Cell Technology From Bloom Energy

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 Bloom Energy’s fuel cell technology.

California-based Bloom Energy is developing a different approach to power generation that has already had a profound impact on the way electricity is produced around the world.

Bloom Energy’s technology relies on fuel cells, which use an electrochemical process in which oxygen and fuel (natural gas or biogas) react to produce small amounts of electricity.  When these fuel cells are stacked upon each other and arranged into large modules called Bloom Energy Servers™ or “Boxes,” they produce up to 200 kW of on-site power.  This is enough power to meet the baseload needs of the average office building or 160 average homes.

Furthermore, this approach has the potential to reduce customers’ CO2 emissions by “40%-100% compared to the U.S. grid (depending on their fuel choice) and virtually eliminate all SOx, NOx, and other harmful smog forming particulate emissions.”  It also enables the possibility of affordable on-site, user-owned power generation that is as constant and reliable as a utility and   provides an attractive economic payback for customers.

This kind of technology is a win-win economically and environmentally; one from which all sectors stand to benefit.  The Bloom Energy Server also makes the micro-generation concept feasible.  Imagine subdivisions, apartment complexes or neighborhoods with their own carbon-free (if powered by renewables), mini power plants.

Source: Bloom Energy

Founded in 2001, Bloom Energy sold its first Bloom Box to Google and can trace its roots to the NASA Mars space program.  In the last few years, the company has lined up an impressive list of name-brand customers, including eBay, Walmart, Coca-Cola and FedEx and is rumored, according to GigaOm and others, to be “the supplier behind Apple’s planned massive 5 megawatt (MW) fuel cell farm to be built at its data center in Maiden, North Carolina.”  If built, this would be the nation’s biggest non-utility fuel cell installation.

In the U.S., much of the attention the Bloom Box has generated has focused on these large corporate customers.  But the on-site generation concept could make its biggest impact in developing nations like India and China, where small communities and villages don’t have an electric infrastructure and new energy sources are in high demand. 

The Bloom Box also has the potential to address problems here at home, with reliability concerns facing electric grids throughout the country. In Texas, where the Electric Reliability Council of Texas (ERCOT) struggles with how to add new capacity to meet growing peak demands and reduce water dependency at the same time, the Bloom Box offers an approach that can provide power at well below the peak prices paid for electricity during last year’s record drought.

To learn more about this topic, please view this post by Nobile Profit.

Update: eBay announced on June 21, 2012, that it will be using Bloom Energy fuel cell technology to construct a large-scale project at its data center in Utah. The proposed 30 fuel cells (the largest non-utility fuel cell installation) will run on biogas and will make their data center independent of the electricity grid.

Posted in Energy Innovation, General / Read 3 Responses

Financing Energy Efficiency Upgrades In Commercial Properties

An Update

Last September, I wrote about some of the barriers that commercial building owners face when they want to finance energy efficiency upgrades for their properties.  The post also discussed an innovative new strategy called an Energy Services Agreement (ESA) that removes several of these barriers.  Since that time, several of the companies mentioned in that post have continued to innovate and make great progress.  I thought it would be useful to provide an update on some of their key accomplishments.

Transcend Equity

Yesterday, Transcend Equity (Transcend) announced that they are being acquired by SCIenergy, a leading energy management solutions company.  This acquisition should provide Transcend with access to additional technology, customers, capital and marketing resources.  EDF is excited to see what the combined company can accomplish.

Transcend recently made a commitment to fund $100 million of energy efficiency (EE) projects as part of the Better Buildings Challenge and broke ground on an ESA transaction in New York City.  Transcend is partnered with Mitsui to provide equity capital for their projects.

Abundant Power

Abundant Power is a diversified EE finance firm that works on a variety of products including Property Assessed Clean Energy (PACE), On-Bill Finance and revolving loan funds in addition to the ESA structure.  Recently, they have helped Alabama establish a $60 million revolving loan fund and Washington, DC establish a commercial PACE program that could finance up to $250 million of EE upgrades.  Abundant Power has also committed $100 million of financing as part of the Better Buildings Challenge.

Green Campus Partners

Green Campus Partners (GCP) has arranged over $350 million in EE financings for public sector properties and completed two ESA transactions in 2011 for private universities.  GCP committed to Better Buildings Challenge $100 million of EE financings in 2011 and another $200 million in 2012.  The firm exceeded its target in 2011 and expects to do the same in 2012.

GCP has also worked with EDF on the Clean Heat NYC campaign and recently signed a major development agreement with St. Barnabas Hospital to finance their conversion away from dirty heating oil.

Groom Energy

Groom is a Boston based EE project developer that offers ESA-style financings for customers.  To date they have been most active in the commercial and industrial space.  Groom is also a thought leader in the Enterprise Smart Grid which uses advanced technology to monitor and reduce energy usage behind the meter.  This morning, Groom published a comprehensive report on the topic.

Metrus Energy

Metrus Energy (Metrus) has had a very productive start to 2012 including a recent high-profile ESA project selection and a pipeline of advanced stage projects that totals $50 million. Metrus has broadened the geographic diversity of its pipeline which now spreads across the commercial, industrial and institutional markets, with active projects under development in the financial institutions, media and entertainment, telecommunications, hospital, higher education and non-profit sectors. Metrus is on-pace to exceed its $75 million investment commitment under the Better Buildings Challenge program. On the project implementation front, Metrus is actively advancing its existing ESA program with BAE systems with the addition of several multi-million dollar projects at new BAE sites. BAE Systems is a global company engaged in the development, delivery and support of advanced defense, security and aerospace systems.  Metrus has also expanded its base of Energy Services Companies (ESCOs), contractors and energy utility channels by adding 25 new partners.             

Carbon Lighthouse

Since launch in 2010, Carbon Lighthouse (CL) has completed projects at 70+ office towers, schools, community centers and industrial facilities in California and Oregon. CL achieves its mission by combining energy efficiency, retro-commissioning, demand response, solar and competition for pollution permits into one simple package for customers.  CL primarily provides projects on a deferred compensation basis similar to an ESA, and can also provide customers with third party direct ESAs or utility On-Bill Finance and Repayment programs.

Conclusion

EDF has worked with each of these five firms and we are encouraged by their energy, focus and innovation.  Each firm has a somewhat different business strategy and mix of products, but the EE market should be large enough to support a variety of business models.  We look forward to continuing to work with these firms and others as this critical market grows in the coming years.

Posted in Energy Efficiency, On-bill repayment / Tagged | Read 1 Response

Austin Energy’s Electric Rates Are Lower Than The Texas Public Policy Foundation Would Have You Believe

Austin Energy’s Residential Rates: 12% Below the Average Rate in ERCOT’s Competitive Markets – After Accounting for the Proposed 14.4% Rate Increase

Austin Energy has been in the news a lot lately, and most often for some controversy around the ongoing rate review process.  What often gets lost in these heated discussions is that fact that Austin’s heritage of clean energy and innovative approaches to economic development are firmly rooted in our city’s electric utility, and that the utility allows city leaders to keep taxes low.  At the same time, Austin Energy’s leadership often puts it in the crosshairs of groups that are ideologically opposed to clean energy and city owned utilities, and whether supported by facts or not, the opportunity to criticize Austin Energy has proven too difficult to resist.

(Source: www.inhabitat.com)

The Texas Public Policy Foundation (TPPF) is often one of the ringleaders in the crusade against clean energy as well as city owned utilities, and they’re not going to let facts get in the way of scoring an ideological point.  In knocking Austin Energy and promoting their agenda, TPPF cherry picks data and uses coded language like the idea that customers “can choose” rates lower than Austin Energy’s if they are in the competitive regions of the Electric Reliability Council of Texas (ERCOT).  The truth is, for a customer in the competitive areas of ERCOT to maintain lower rates than Austin Energy they would have to change electric providers each month, and they’d have to be pretty lucky on top of it.

The problem is that the rates TPPF reference when they say customers can choose lower rates are usually introductory, variable or otherwise subject to increases not included in the rates that customers do choose.  What this means is that customers actually pay more than TPPF’s selective math would suggest, but TPPF seems more concerned with scoring political points than what customers actually pay for their electricity.

Look at the data from a more logical point of view and you will see that competitive regions in ERCOT average higher residential rates than ERCOT’s average rates.  In fact, ERCOT rates are kept low largely by municipal and co-operative utilities like Austin Energy, the customer owned utility model that TPPF criticizes in their latest missive.  The most recent data available for a real analysis of the rates Texans pay was released by the Energy Information Administration just a few months ago, including data through 2010.  As the chart below shows, Austin Energy’s rates are well below the ERCOT average, and even farther below the average competitive market rate, despite TPPF’s claims to the contrary.  

Source: Energy Information Adminstration (EIA)

Even if you account for Austin’s proposed 14.4% residential rate increase through 2015, the the new rates are 12% below current competitive rates in ERCOT. This calculation doesn’t even take into account the fact that nominal retail energy prices in ERCOT are projected to go up by 11% by 2015 according to the Energy Information Administration.  Taking this projected rate increase into account  it’s clear that Austin Energy’s rates – even after the rate review is completed – will be below the competitive average.

As we talk about rates in our community and across Texas, it’s important to remain focused on factual analysis and avoid misleading assumptions driven more by ideology than a desire for real debate. Unfortunately, arguments like those put forward by TPPF don’t contribute to an honest discourse; they mislead the public, distort reality, and threaten Austinite’s low tax lifestyle.

Posted in Texas, Utility Business Models / Read 6 Responses

A Triple Bottom Line for the Central Valley: Environment, Economy, Equity

city of fresno sealThis week the Air Resources Board (ARB) held a public workshop in Fresno, California, to gather public input on ways to invest proceeds from California’s cap-and-trade auction.  ARB heard from a wide variety of individuals and organizations with bright ideas on how to spend this money on projects that can lower greenhouse gases (GHG) and maximize the benefit to disadvantaged communities who are the most vulnerable to climate change and pollution impacts.

I represented EDF at the workshop, and an extended version of my public comments follows:

Read More »

Posted in California, Cap and Trade, Clean Energy, Energy Efficiency, General, Renewable Energy, State / Comments are closed

Though The NOAA Study Provides An Important New Set Of Data, It Is Only A Limited Snap Shot

By: Steven Hamburg, EDF’s Chief Scientist

This week the National Oceanic and Atmospheric Administration (NOAA) released a study that estimates that natural gas producers in an area known as the Denver-Julesburg Basin are leaking roughly 4% of their gas – or methane – into the atmosphere.  Leaks of that magnitude could undermine natural gas’ role as a lower carbon alternative to coal and oil.  This is yet another contribution to the long running debate about exactly how much methane is vented or leaked during the production and distribution of natural gas.  The questions are: Why does this matter, and why is what NOAA saying an interesting and new contribution to this debate?

A recent paper in Science illustrates that reducing methane emissions and black carbon can have a positive near-term impact on the climate system.  It is becoming clearer that reducing methane emissions is key to reducing net radiative forcing (or the amount of energy reaching the surface of the earth), which – in turn – helps reduce the chances of a climate catastrophe.  The Environmental Protection Agency (EPA) inventory of U.S. greenhouse gas pollution shows that the oil and gas sector is the largest source of man-made methane, and most of those methane emissions are from leaks resulting from the production and transport of natural gas. 

As we’ve mentioned before, it is clear that the actual combustion of natural gas is cleaner than the combustion of gasoline or diesel, but there are other emissions associated with the production, delivery and use of those fuels.  Natural gas is largely methane, even when it comes out of the ground, and as a result is a potent greenhouse gas.  Over the first 2o years after it is emitted, a pound of methane is 72 times more potent than a pound of carbon dioxide when it comes to trapping heat.  As natural gas is produced and piped across the country, there are plenty of opportunities for it to leak into the atmosphere.  EPA estimates that leak rate to be somewhere between 2-3%, but the exact amount is the subject of much debate.

At a 2-3% leak rate, natural gas-produced energy has a net benefit to the climate system as compared to producing energy using coal.  If we want to reduce the risk of climate surprises and increasingly frequent extreme weather events, reducing leak rates from natural gas production is one of the most effective ways of doing so, at least in the short term.

Given that natural gas produced by un-conventional means already represents more than one third of US production, the key issue moving forward regarding leak rates is not whether they are high or low, but rather how to ensure that they are as low as technically possible.  The NOAA study provides an important new set of data, but only one snap shot of what is happening in natural gas production fields. 

Unfortunately, the news here is not good, in that it finds methane leak rates to be almost twice as high as the EPA estimates – which would mean that, in the short-term and absence of leak reductions, natural gas is unlikely to be better for the climate than is coal.  Though there are a few larger studies that are gearing up which plan to use a diverse array of techniques that add to the NOAA study to better define overall leak rates, scientifically sound and rigorous sampling and monitoring is still much-needed to quantify the average amount of methane emissions that result from natural gas production.  No matter what the data will show about leak rates, though, the next steps are clear – reduce leak rates!

One of the central questions that the forth coming research needs to answer is: Where are the leaks happening and, in turn, what needs to be done to minimize them? It is possible that a relatively small percentage of wells account for a large majority of emissions, meaning that getting practices right at just these high-emitting wells could reduce overall leak rates significantly.  

Getting practices right entails implementing the Department of Energy’s Shale Gas Production Subcommittee’s recommendations, which propose a focused set of steps for strengthening environmental management in the shale gas industry.  The Subcommitte’s report calls for measures to be taken to reduce emissions of air pollutants, ozone precursors, and methane as quickly as practicable and stresses the need for gathering the data necessary to determine whether, and to what degree, natural gas provides greenhouse gas benefits when substituted for coal or oil in energy production or transportation.

As EDF, and others, collect much-needed data the picture will quickly become clearer.  Stay tuned to the Energy Exchange for more information on this topic.

Posted in Natural Gas / Read 1 Response