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  • $3.1 billion for state energy efficiency programs - Just one catch
    The American Recovery and Reinvestment Act promises to advance the U.S. energy efficiency movement with an unprecedented $26 billion infusion of funds. Of that, $3.1 billion goes to state energy efficiency programs through the Department of Energy’s State Energy Program.
  • A Green Apple for the Teacher
    By news accounts Barack Obama is all the rage on college campuses these days. But there is another less reported campus movement that could considerably boost the energy efficiency industry. College students nationwide have mounted a serious campaign to clean up the nation’s energy supply. And they are starting in their own backyards – or rather dorm rooms. Nudged by these students, college administrations are installing co-generation, switching to more efficient lighting, and undertaking...
  • A new EE resource: Distributed people
    Energy efficiency is often described as the invisible resource. It improves our energy supply without any of the usual industry trappings: smokestacks, wind turbines, transmission lines and poles. This is one of its virtues.
  • And Now for Some Good Economic News: EE Workers Needed
    With energy demand high and supply tight, the only thing in abundance these days is uncertainty. So says a recent Standard & Poor’s report: “The Credit Impact of Rising Energy Costs on Industry Sectors.”

    “Whether energy production can keep up with demand growth is a major question,” says the credit rating agency. “Where the energy will go is easy to estimate. The harder question is where will it come from?” Even if oil prices dip in the short-term, S&P says they are “cycling around a rising tre
  • Are the Number Crunchers Forgetting About Energy Efficiency?
    What is good news for the environment is often bad news for the economy. Or least that’s the conventional wisdom.

    The thinking is bolstered by government findings that industrial activity and Gross Domestic Product will drop if the nation adopts a leading proposal before Congress to reduce greenhouse gases.

    But the number crunchers may be forgetting an important input: Energy efficiency. So says a report released this week by the Americ
  • Big Energy Efficiency Vote Due From Small Commission
    The European Union (EU) isn’t shy about implementing aggressive energy policy. In January, for example, the EU passed a proposal for Climate Action that includes an overall binding target of 20% renewable energy by 2020, according to the European Commission.

    The US, on the other hand continues to shy away from aggressive energy policy. However, one of the more influential energy votes of the year will be decided by a small council in Minnesota, the International Codes Council (ICC). The ICC will vote in September on an energy efficiency policy that could influence energy in the US over the next 20 years, according to the ICC.
  • Brad Pitt, Angelina Jolie and combined heat & power
    The universe contains many mysteries. A big one for me is: Why doesn’t the United States use more combined heat and power (CHP)?
    It requires an energy geek, of course, to even ask that question. Most of the world knows nothing about CHP, even when referenced by its other name: cogeneration. So it was heartening to see the Department of Energy’s recent effort to educate the public.
  • Businesses like efficiency, but hold back
    “It’s the economy, stupid,” the famous line of political strategist James Carville, seems even more relevant now than when he uttered it during Clinton’s 1992 campaign. A recent survey on executives’ attitudes shows that energy efficiency hasn’t escaped the shadow of recession, despite strong support for the resource.
  • CHP Gains Stature as Efficiency Measure
    Combined heat and power is a form of alternative energy that has been available for many decades. Yet it’s remained below the radar screen in policy discussion about our energy future.

    However, it appears to be gaining new stature as lawmakers and regulators seek ways to make energy use more efficient.

    Also called cogeneration, the technology creates both electricity and heat in one unit. Most power plants throw away two-thirds of the energy consumed in production. But CHP plants use the excess energy to heat, cool or humidify the building. As a result CHP reclaims one-third of the energy that would otherwise be lost.
  • Clean Energy Prospers: Toto, We’re Not on Wall Street Anymore
    Wall Street is in the middle of an earthquake. Main Street is shaking from the tremors. Easy Street has been wiped off the map. Is there a safe haven from this economic meltdown? Green Street looks pretty appealing.

    Green Street is a term used increasingly to describe businesses that offer energy efficiency, solar, wind and other forms of clean power. While the global economy braces for cost cuts
  • Congress Feels No Pain
    A big question often asked by energy analysts is: How high must energy prices be to motivate customers to change their behavior? We are beginning to think that the more perplexing matter is just how much do we pay before Congress reforms its behavior.
    Prices are plenty high enough to encourage customers to conserve. Driving is down and pursuit of efficiency is up. Federal lawmakers, however, can’t seem to get beyond partisan maneuvering to extend efficiency incentives.
  • Eastern States Ready for Big EE Boost
    Several eastern states will see a large injection of cash for energy efficiency after the nation’s first mandatory auction of carbon dioxide allowances September 25.
    The auction marks the United States entry into the world of capping and trading carbon dioxide emissions. Ten states are participating in the program, known as the Regional Greenhouse Gas Initiative (RGGI), or more commonly called “Reggie.”
  • Efficiency and the Jobs Argument
    How will the recent bad economic news affect energy efficiency efforts? Will state lawmakers retreat from the many financial commitments made over the last year?
    It is too soon to know the answer. But one thing is for sure, the industry may have to shift its marketing message. Consumers and politicians typically are keener on protecting the environment in good times than they are in bad.
  • Efficiency Guru: The Behind-the-Scenes EE Revolution
    behind-the-scenes revolution is taking place when it comes to energy efficiency.
    To get an inside look, we recently spoke with one of the industry’s long-time gurus, Steve Cowell, chairman and CEO of Conservation Services Group in Boston.

    Much of the action is happening on the state level where industry players are hammering out ways to lower costs by reducing energy consumption. In most cases, the goals are aggressive and could increase efficiency investments by 2.5 to 3 times what we have today, says Cowell.

    Industry insiders often talk about efficiency as the invisible power plant. If you need 50 MW of new power, you can build a new generating facility. Or you can find ways to reduce energy use by 50 MW. That’s like building a virtual power plant. The virtual power plant saves ratepayers money because a 1% reduction in load during high peak periods can reduce wholesale electricity prices by 10%, according to the Electric Power Research Institute.

    Cowell sees three ground-breaking efforts in the works to increase the use of efficiency: portfolio standards, procurement, and demand resources in forward-capacity markets.
  • Efficiency stimulus will lower energy bills, says federal report
    Depending on your position, the federal stimulus money is either a jobs builder or a national budget buster. The Energy Information Administration offers another take. In a recent analysis, the EIA finds that stimulus money should reduce what consumers and businesses pay to heat, cool and light buildings.
  • Efficiency’s Role in Carbon Cap-and-Trade
    We hear a lot about how efficiency will play an increasingly important role as the United States undertakes efforts to reduce carbon dioxide emissions. But how does that play out in a practical sense under cap-and-trade programs?
  • Electricity still hot
    Latest federal projections reveal that our passion isn’t cooling for large air-conditioned homes and electric gadgets. US households have increased their electricity use by 23% over the past decade, and consumption will grow another 20% by 2030, according Annual Energy Outlook 2009, released March 31 by the Energy Information Administration.
  • Electricity use falls because of efficiency
    Electricity sales can gauge the national economic health. An ailing economy uses less electricity because is produces fewer goods and services. Sometimes, however, electricity sales fall for a good reason – efficiency.
  • Energy Efficiency: A Bubble or a Vaccum?
    No one much likes hearing their industry may be in a bubble. Bubbles burst and it hurts. We’re seeing that now in housing.

    So it’s understandable that clean energy companies aren’t exactly happy that economist Eric Janszen (itulip.com) says their industry may experience the next bubble. Apparently, clean energy is exhibiting bubble-like symptoms: It is the talk of the town, attracts investors looking to make quick money, and enjoys strong government support.
  • Energy Efficiency: Not a Sound Bite Business
    I’m a star at the neighborhood playground because I write about energy. Let me explain. I have a young son, and often find myself next to the swings talking with other parents. Inevitably we talk about work. Inevitably it comes up that I know a little about energy. And inevitably I’m surrounded by a crowd that wants to know– demands to know–why the US doesn’t use more green energy.

    They are looking for a sound bite answer, like “It is Bush’s fault” or “Exxon is evil.” Instead, I find myself grasping for an answer, even though I’ve been following this business for 20 years — or more accurately – because I’ve been following this business for 20 years.
  • Energy efficiency’s $1 trillion identity
    The energy efficiency industry is a bit like the orphan who grows up to discover his long-lost parents left him a fortune.

    The industry suffers from an identity crisis, says a report by the American Solar Energy Society. What is energy efficiency? Insulating attics? Demand response? Plug-in hybrids? Led lights? Combined heat and power?
  • Energy Tax Credits and the Devil in Congress
    It is difficult to get beyond the hyperbole of the election season to uncover a candidate’s true position. The non-partisan Pew Center on Global Climate Change performed a service with a recently released just-the-facts guide on the energy platforms of the presidential contenders.
  • Federal energy stimulus: The check is in the mail
    Energy efficiency companies waiting for federal stimulus money probably feel like they are being told, “The check is in the mail.” It is supposed to arrive, but when?
  • Federal stimulus: Pork or real energy policy?
    Two recent gestures by President Obama indicate that he is serious about clean energy and will pursue it differently than any of his predecessors.

    First, he made history in using his inaugural speech to promote renewable energy – something never done before by a US President, according to Department of Energy’s EERE News Network.
  • Front-load washers: Leaky solar panels revisited?
    Some days I’d like to throw my front-load clothes washer out the back door. But that probably won’t be necessary because it may walk out on its own.

    The LG product shakes and rattles so much in the spin cycle that it ‘walks’ several inches across the floor each day. One guest to my kitchen thought we were experiencing an earthquake.
  • Getting Ready for the Next US Industrial Boom
    Selling large manufacturers on energy efficiency isn’t easy, even though they stand to achieve great bang for the buck. Manufacturers are apt to only consider efficiency improvements as part of a major plant expansion or improvement. Such capital expenditures tend to occur in a cyclical fashion, and manufacturers give little thought between cycles to new efficiency measures.
  • How Long Will Efficiency Be the Favored Choice?
    Energy efficiency creates an odd sort of market. Nothing (lack of energy use) competes for customers against something (energy generation).
    There is no free lunch and even nothing, energy efficiency, costs something. But for now it is cheaper than its main competitor, the power plant.
    In fact, it is often three times less costly to install efficient light bulbs, better insulate buildings or pursue other forms of efficiency than to buy power.
  • How Power Hungry Is Home Entertainment?
    Plasma televisions, video game consoles, and cable set-top boxes find their way into more and more American homes thanks to lower prices and aggressive marketing. While this trend makes for better home entertainment, it strikes a blow to energy conservation efforts.

    For example, even when just in standby mode, a plasma television consumes nearly $160 of energy/year and a game console over $25/year, says an article in Good magazine. A study by Australian consumer group Choice found that plasma t
  • How to Find “White Tag” Markets
    Doing business in the US can be a crazy venture if you’re an international company trying to make inroads. Europeans often say it’s like learning the rules of 50 different countries. This is because important energy policy decisions are often made by state governments.

    It looks like the emerging “white tag” market for energy efficiency may be no different. So far, Congress has resisted the idea of a national energy efficiency portfolio standard, which would set uniform energy savings requirements for utilities nationwide. But several states are moving ahead with their own standards.

    Often the standards allow trading of white tags, or energy efficiency certificates. The tags are proof that an entity reduced consumption through energy efficiency. A manufacturer might earn the tags by upgrading motors; a store might install more efficient refrigeration; a hospital could add cogeneration. The business or institution can then sell the tags to utilities who use them to show they (or a surrogate) met the state’s efficiency requirement.

    Which states should you watch for white tag business?
  • How well is clean energy weathering the recession?
    The clean energy industry may not be popping the champagne cork, but it is at least holding the bottle in hand. While not unscathed by the recession, the industry sees growth in several sectors, according to recent reports.

    For example, use of smart meters—a key technology for better energy management and efficiency – is increasing at a rapid clip.
  • Is there romance in energy efficiency?
    My mother told me many good reasons why I should get married. She appears to have forgotten one. It’s energy efficient.
    Single people – at least those without roommates – appear to be gobbling up a lot of our energy supply.
  • Is Today's Interest in Efficiency a Blip?
    Political leaders push energy efficiency when electricity rates spike, then drop it like a hot potato when prices fall. So how long will the current interest last?

    Three reports out this week indicate power prices will not ease any time soon. Indeed, forces are in place to only push costs higher.

    One force is the renewable portfolio standard, according to Standard & Poor’s Ratings Services in “The Race for the Green: How Renewable Portfolio Standards Could Affect U.S. Utility Credit Quality.” Half of the states, representing 40% of electric load, now require that a percentage of power come from green energy. S&P warns that the requirement is moving “squarely away from least-cost procurement and toward acquiring often above-market renewable generation in unprecedented quantities.” The standards are in their infancy, so the price impact is still to come in most states, says S&P.
  • Lower energy prices: Now you see them, now you don’t
    When combined with efficiency, solar homes can achieve ‘net zero’ – they consume no more energy than they produce. It is likely we will see a growing number of net zero homes built as more states reach what is called ‘grid parity’ – the cost of solar energy becomes no higher than the power we buy from our utility. Industry insiders say that about a dozen states already have reached this goal.
  • Maryland and the Electron-Hungry Mob
    Governments remain in power as long as the people have enough food, or so the old adage goes. But in today’s appliance-driven society, political longevity may depend as much on giving us our daily share of electrons.

    So it is little surprise that government leaders in Maryland are looking hard for ways to ward off a possible power shortage. Without quick action, the state could face blackouts in three years. Thus, energy efficiency is a big topic of conversation.
  • Mr. Pickens, What About Plug-In Hybrids?
    T. Boone Pickens deserves kudos for his attention-grabbing television campaign aimed at helping America kick the oil habit. The billionaire energy fund manager can stop the most dedicated channel surfer mid-click when he proclaims that our spending on foreign oil could soon become the largest transfer of wealth in human history.
  • Negawatts Beat Megawatts in New England
    Energy efficiency advocates have argued for years that a negawatt is cheaper than a megawatt. That is, it is less costly to install energy efficiency equipment and reduce consumption than to build new power plants.

    In New England, the premise was recently tested, and the results should hearten anyone in the efficiency business.

    ISO New England invited demand-side resources, like energy efficiency or demand response projects, to compete on equal terms against power generation projects to fill the region's need for electric capacity in 2010/2011. The test took place during the wholesale market manager's first forward capacity auction. After three days of bidding, demand-resources stood up handily to generation. In fact, ISO-NE announced at the close of bidding in mid-February that it had selected new efficiency-related measures that will create 1,188 MW of energy savings, but only 626 MW of proposed power generation.
  • Overcoming the dirty secret of clean energy
    A dirty secret of clean energy is that being green can be an expensive pursuit. The cost of solar panels and hybrid cars is declining, but they remain too expensive for many people. As a result, the green energy movement is often viewed as an upper-income trend in the United States.

    But a recent survey indicates energy efficiency may be a more egalitarian product.

    The intent of “The 2008 Energy Costs Survey,” released this week by the Energy Programs Consortium and the National Energy Assistance Directors’ Association, is to show the sacrifices made by low, moderate, and middle-income households because of rising energy costs. Households are cutting back on food, medicine, clothing, heating and cooling, education and eating out. And they are paying their bills later, according to survey of more than 500 households in May.
  • Reducing Hospital Costs through Efficiency
    The energy and healthcare industries share a mutual woe. Both are experiencing meteoric price increases.
    The Alliance to Save Energy projects a household’s energy costs will be about $6,300 this year, representing about 13% of median pre-tax earnings. Meanwhile, the National Coalition on Health Care reports that medical costs rose 6.9%— two times the rate of inflation last year with total spending of $2.3 trillion or $7,600 per person.
  • Report Reveals Unusual EE Market Pattern
    “Big dogs eat first” is a phrase often used to describe energy markets. That is, expect large energy consumers – usually manufacturers -- to be the first at the plate to take advantage of any economic benefits. But a recent report suggests that when it comes to energy efficiency, householders may nudge the Mastiffs out of the way.

    The American Council for an Energy-Efficient Economy found that in divvying up EE investment dollars, the US home makes up a disproportionate share. Specifically, appliances and electronics made up 48% of the $178 billion spent on buildings in 2004. Yet these devices represented only 8% of the energy consumed by buildings. Meanwhile, the industrial sector received only 25% of EE investment dollars even though these businesses use up 34% of our energy.
  • Rhode Island: Little State, Big Energy Efficiency Opportunity
    Rhode Island is often the butt of jokes about its size, a lot of them having to do with an inability among residents to screw in electric light bulbs. But when it comes to energy policy, the state has often loomed large, even if few people notice.

    For example, it was Rhode Island that led the way with electric industry restructuring in the 1990s. California and Massachusetts usually get the credit.
  • The Ghost of High Energy Prices Past
    Halloween is still a few weeks away, but a ghost is already making an appearance, this one floating over the presidential campaigns. His name is Conservation.
    I first heard the specter of sacrifice evoked by Sen. Barack Obama in the Oct. 7 debate. The next day Gov. Sarah Palin repeated the term several times in a television interview. Conservation, she said, is part of Senator John McCain’s “all-
  • The one energy efficiency report to read
    Jon Wellinghoff, chairman of the Federal Energy Regulatory Commission, raised a lot of eyebrows recently when he suggested that the US may no longer need to build conventional power plants – that efficiency and renewable energy might meet our needs.
  • Think Gas Prices Are High? Electricity is Next.
    Today’s interest in energy efficiency may be nothing compared to tomorrow’s, if power prices rise as much as expected.

    One of the biggest price drivers, at this point, appears to be greenhouse gas restrictions, which Congress is expected to enact. It’s not clear yet exactly what the rules will be. But a federal analysis of a leading proposal shows electricity prices rising 5% to 27% by 2020 and as much as 64% by 2030.

    And greenhouse gas restrictions are only one factor pushing up electricity prices. Industry insiders cite additional pressure from rising fuel costs, higher component costs, and new transmission investments.
  • Toasting Pop-Tarts cheap: How electricity may solve our energy woes
    We tend to talk about electricity in terms of its problems -- it degrades the environment, costs too much and messes up scenic views. But the Manhattan Institute’s Peter Huber takes a different stand in his new report “The Million-Volt Answer to Oil.”
  • Utilities: Friendsor Foes of Energy Efficiency
    With oil prices so high, talk again has turned to making the U.S. more energy efficient. In the power industry, utilities have been typically charged with this mission. Or to more aptly describe it, they have gotten dragged, kicking and screaming, into helping their customers use less electricity.

    You can’t blame them for resisting. An electric utility is a business that makes its money selling power. If too many customers dim the lights, utility profits fall.
  • What price motivates customers to save energy?
    “Are we there yet?” We’ve heard that refrain often over the last couple of years. No, not from our kids in the backseat of the car, but from energy observers wondering exactly how much price pain the consumer will take before cutting back significantly on use.

    Two reports circulating this week indicate that we have arrived – or at least we are close.

    Americans drove their cars 4.3% fewer miles in March 2008 than they did a year earlier, according to the Federal Highway Administration. This is the first time since 1979 that we took to the road less in March. While a 4.3% drop may not sound like much, it amounts to 11 billion miles, and represents the largest decline since the FHWA began reporting monthly statistics in 1942.
  • What's Cool about Air Conditioning
    Conservationists often mock Americans for their love affair with the car. But the air conditioner appears to be a growing rival for our affection.
    Twenty years ago only about one-quarter of US residences had central air conditioning; by 2005 it was up to 62%, according to the United States Census Bureau.
  • Who gets the EE stimulus money?
    The ink is dry on President Obama’s signature to the federal stimulus bill and word is out that energy efficiency receives more than $20 billion. How will homeowners and businesses benefit?
  • Why it is so Hard – and so Important – To Increase Distributed Resources
    If distributed resources are such a good idea, why don’t we build more of them?
    A report released this week by Tufts University sheds some light on the answer. Despite all of the talk about the efficiency they bring to the grid, resources like solar energy and combined heat and power still face significant regulatory and monetary hurdles.
    Consider the following findings from “Distributed Energy: The Way Forward” produced by Tufts’ Center for International Environment and Resource Policy.
  • Will support for efficiency hold in 2009?
    The stars are aligned to make 2009 a good year for energy efficiency — or at least, most of the stars.
    President-Elect Barrack Obama has assembled an energy team that supports clean technologies. Most notably, Obama named Steven Chu as energy secretary on December 15. Chu is a Nobel Prize winner and director of the Lawrence Berkeley National Laboratory.

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