Great News - The State Energy Efficiency (SEE) Action Network

The Environmental Protection Agency and the U.S. Department of Energy recently announced the creation of the State Energy Efficiency Action Network (SEE Action Network), a body that will help states implement and oversee energy efficiency programs (Source:  Energy.gov, February 2).  This move, which provides support and expertise from the federal side of things, could not come at a better time.  State budgets are in the red nationwide, resulting in personnel and program cuts, while federal funding for energy efficiency programs is at an all-time high.  The net effect of these two factors is that many states are having a difficult time accessing, implementing, and tracking energy efficiency projects at a time when the funding is available to make significant strides in energy savings across the nation. (Photo Credit: http://www.wordpress.com/) 

I wrote about one example of this in my January entry, where I discussed the challenges of implementing large-scale weatherization programs in our current economic climate.  I cited some issues discovered in Illinois through a random DOE audit of these newer programs in which a contractor did some weatherization work on behalf of the state that was later deemed unsafe.   This move by the EPA and DOE ensures that all of us, homeowners, businesses, workers and manufacturers of energy efficiency materials will benefit and that those dollars will be spent wisely.  (Photo Credit: http://www.smartpower.org/)

The SEE Action Network will follow a set of guidelines set forth in the National Action Plan for Energy Efficiency, a public-private partnership that launched in 2005 to create an hard-hitting plan for energy efficiency supported by utilities, regulators, and other private businesses.  The action plan’s goal is ambitious; “to achieve all cost-effective energy efficiency by the year 2025,” but this program is now pledging to meet this goal five years sooner than originally planned (in 2020).   I am excited to see what comes of the SEE Action Network and will surely track its progress along the way. (Photo Credit:  http://www.ncsl.org/) 

Renewable Energy Standard Pros and Cons – Federally Mandated Utility Participation

The question of what percentage of utilities' output should come from renewable energy sources has been debated by legislators nationwide for years now.  Some 28 states have declared statewide standards on renewable energy use by utilities, such as Colorado’s mandate for utilities to draw 20% of their energy from renewables by 2020.  Right now, a Colorado House of Representatives committee is discussing a bill (House bill 1001) to raise that requirement to 30% by 2020 for both Xcel Energy and Black Hills Energy (Source:  DenverPost.com, February 4).  The proposed bill, while it appears to have fairly broad support across the groups involved, is being considered in a state that’s much more conducive to renewable energy generation than say, Alabama may be.  (Photo credit: switchboard.nrdc.org)

The issue of the relative accessibility of renewable energy generation opportunities and the fact that this availability varies greatly across the nation is precisely the concern with some legislation that’s currently in front of the U.S. House of Representatives.  One bill being discussed would require utilities nationwide to derive 15% of their total energy output from renewable sources by 2021 – a number that’s already been reduced from 20% after hearing concerns from utilities on the issue (Source:  RenewableEnergyWorld.com, February 5). (Photo credit: wikimedia.org)

One possible solution to this problem is adopting a specific clause that allows for energy efficiency savings to be factored in to this mandate percentage.  If a given utility can implement an efficiency savings across its customer network of say, 8% between now and 2021, that percentage would likely count toward the overall 15% goal from renewables outlined in any legislation. 

It’s plain see that a state like Arizona may have abundant access to solar energy and Texas may have an abundance of potential wind energy, but that Mississippi may have less opportunity for either.  At the same time, if a reduction in carbon emissions is to be a priority in this country, there has to be either a market-driven or mandated incentive to push states to reach this goal.  While there may be more market-driven incentive in some states terms of the dollars to be earned by achieving these goals (and some federally-funded incentive as well in the form of American Recovery and Reinvestment Act dollars), there are legitimate concerns that these alone are simply not powerful enough.  In addition, if there is no pressure on the states that appear to have fewer resources where renewable energy generation is concerned, these states are less likely to produce more creative solutions, such as using sawdust in place of fossil fuels in the energy generation process (as the previously cited RenewableEnergyWorld.com article mentions).  (Photo credit: scientificamerican.com)

One thing is for certain – it will be interesting to see what comes of these legislative discussions.  My hope is that ingenuity and technological advancement will help every state to reach these goals, whether they arrive at them on their own or via federal mandate.  It's also worth noting here that many utilities are working with each other to produce their own industry guidelines, which is likely to help the cause as well.  For more on utility-driven measures, read more about the National Action Plan for Energy Efficiency.

Energy Efficiency Programs - News, Notes and New Year's Resolutions

One interesting energy efficiency initiative in the early days of 2010 comes from the technology sector, specifically in IT and communications. Companies ranging from IBM to Yahoo! will receive portions of a $47 million grant from the U.S. Department of Energy to improve energy efficiency within their offices and operational centers, the DOE announced on January 7, 2010. The funds, which are part of the American Recovery and Reinvestment Act, will be paired with approximately $70 million more in private-sector funds to reduce the 3% overall (120 billion kWh per year) demand that the companies’ operational centers drain annually from the nation’s energy grid (Source: RenewableEnergyNews.com, January 7).  These companies are so innovative when it comes to their technological and communications solutions that it should be very interesting to see what measures they come up with to improve their energy efficiency. The DOE's investment here could spark unique efficiency innovations that apply to commercial building efficiency projects nationwide.  (Photo Credit: http://www.cleantechnica.com/)

The Challenges of Large-Scale Weatherization Implementation

While city, county and state governments are beginning to feel the influx of money allocated toward weatherization programs, a recent red flag in Illinois illustrates the difficulty in managing these large-scale stimulus-funded weatherization efforts. When the U.S. DOE recently examined $242 million in weatherization funding allocated to the state of Illinois, it found that one of state’s contractors, which was overseeing and implementing the projects, did not thoroughly inspect or safeguard its work. The audit found that one contractor failed to detect a potentially dangerous gas leak and that the state, which is required to inspect 5% of the homes that are weatherized under its program (by the contractors), did not conduct all of the necessary inspections (Source: NewYorkTimes.com, December 21, 2009). (Photo Credit: http://www.homeenergy.org/)

This finding sheds some light on the set of challenges facing these wonderful programs. It is critical to expediently funnel this unprecedented funding into the maximum number of beneficial weatherization projects possible and to ensure that they’re all safely executed. Yet staffing on a state, county, city or contractor level may not have caught up with the program’s requirements, particularly because government budgets at all levels are so stretched. One definitively positive outcome from this finding will be that all participants will tighten up procedures and oversight, in some cases by adding adequate staffing, thus ensuring the appropriate use of taxpayer money for the lofty and worthy goals set forth by the program. Expect to see changes on this front in the coming months.

Energy Efficient Appliance Rebates - State vs. Federal Oversight

The effect of a $300 million U.S. government rebate program aimed at the purchase of energy efficient appliances meeting federal Energy Star designations may be tripped up by state oversight, say industry experts. The structure of the rebate program dictates that the rebate terms and timing will be handled individually by the states, rather than the federal government. Some industry experts contend that the inherent inconsistencies in the states’ handling of these funds will hinder a much-needed boost to the appliance industry (Source: Online.WSJ.com, January 8). The counter-argument to these comments, however, is that each state has unique needs when it comes to its population and that programs which may be popular and useful in one state may be stagnant and largely inapplicable in another. Time will tell how popular these programs turn out to be and how large of an impact they will have on the appliance manufacturers, but chances are good that these manufacturers will see a significant boost in business once these programs are in full swing no matter how they are administered. (Photo Credit: www.mytorontohomeimprovement.com)

Major City’s Commitment to Energy Efficiency Grows

In some energy efficiency news across the Atlantic, it appears that new commercial building developments in London are cutting carbon emissions by one-thid as a part of Mayor Boris Johnson’s push to cut the city’s total emissions by 60% in 2025. According to reports, 71% of London’s emissions come from buildings, so these efforts are crucial to keeping on track with Mayor Johnson’s goal (Source: RenewableEnergyNews.com, January 7). In addition, the Mayor’s Building Energy Efficiency Programme (BEEP), which aims to deliver energy efficiency retrofits on an expedient basis, continues to see new signatories, recently welcoming energy supplier EDF Energy. Mayor Johnson has also pledged to tighten carbon emissions standards for all buildings sometime in the next four years, which has spurred preemptive action on the part of several private-sector companies.  (Photo Credit:  http://www.tripadvisor.com/)

In other developments beyond our borders, the U.S. Department of Energy announced three projects under the Low-Carbon Communities of the Americas (LCCA) program, which was announced in June 2009 and aims to assist Latin American countries with the implementation of energy efficiency measures (Source: http://www.doe.gov/, January 8). Included within the three projects are training programs, wind generation program testing, and technical support programs for everything from auditing to reporting in Costa Rica, several Caribbean nations, and Dominica.

Wind Power News Highlights

Wind energy generation is increasing, particularly in the United States, at a rapid pace. This pace is so rapid that, “The American Wind Energy Association (AWEA) reported today in its third quarter (Q3) market report that the U.S. wind energy industry installed 1,649 megawatts (MW) of new power generating capacity in the third quarter…bringing the total capacity added this year to date to over 5,800 MW” (Source: AmericanWindEnergyAssociation.com, October 20, 2009). In fact, as of February 2009, the United States surpassed every country in the world in wind energy generation (Source: NREL.gov, February 2009).

A Different Kind of Ownership

Though a large number of wind farm projects are funded by utilities, economic-stimulus funding, and private companies, a new type of group is taking on wind energy in the state of Montana. A community-owned wind farm projected to generate 500 megawatts will undergo on-site testing for the next year before the first phase of the turbine installation will begin. The project, a joint venture between National Wind and area ranchers and Montana Wind Resources LLC, will phase in several stages of 100+ megawatt turbine clusters over the next five to eight years (Source: RenewableEnergyWorld.com, December 1).

Combating the Wind Energy Storage Problem

Calmac recently developed a different approach to wind power storage that involves an interesting component; ice. Given that roughly 75% of the energy used in the United States is used by buildings and that a significant percentage of that goes towards air conditioning, excess energy storage in the form of ice has a lot of potential (Source: AlernativeEnergyNews.info, December 1). The thought process is that excess wind energy can be converted into ice during non-peak use hours, such as at night (when the wind is typically strongest), thus lessening the overall demand during peak times. Though there are similar devices available on the market, Calmac’s tank allows for the uniform building of ice throughout, charges in 6-12 hours, and can cut energy demand costs from 20-40%.

Re-framing the Storage Question

What if wind power could be reliably used by utilities without needing battery storage? The National Renewable Energy Laboratory recently announced a project that may bring researchers a step closer to this reality. NREL and Second Wind Inc., will test the Triton Sonic Wind Profiler, a device aimed at better predicting when and where wind will blow (Source: RenewableEnergyWorld.com, December 9). This testing, which will take place over the course of the next year, will eventually lead to the incorporation of the Triton Sonic Wind Profiler in a Wind Instrument Characterization System at the National Wind Technology Center. In the long run, the hope is for this collective set of tools to reliably predict future wind power output for use in the real-time power grid and to aid in development of new wind generation plants for optimal gathering capabilities.

Existing Technology, New Approach

In its own response to the wind power battery dilemma, Duke Energy is pursuing a more traditional battery storage project. The project, which will use an economic-stimulus grant of $22 million, involves the installation of batteries at its 151-megawatt Notrees wind farm in Texas. Duke Energy intends to prove that current batteries can store sufficient amounts wind-generated energy for reliable use by utilities, even when the wind is not blowing (Source: Charlotte.BizJournals.com, December 2).

Wind Energy Cost Hurdles and Drawbacks

Besides the obvious issues that wind farms create (noise, unsightliness, hazards to birds or bats, energy storage issues), there are a few other items worthy of consideration. As noted in an article by Daniel Price in Hutchnews.com, there is a tendency for wind farms to be built away from population centers and a fairly substantial up-front investment cost. In his article, he explains that transmission from these more remote locations poses a challenge for utility providers. A recent study by the found that the presence of wind turbines does not negatively impact housing prices (Source: NYTimes.com, December 9). If these wind farms truly do not negatively impact property values in their immediate vicinity, a compelling case exists for more of these facilities to be built closer to population centers, thus reducing transmission costs.

Another barrier to lowering the cost-per-kilowatt-hour of energy generated by wind turbines is the large amount of land necessary for industrial-use wind farms. “…it takes 60 acres per megawatt of installed capacity but only about 5 percent to 8 percent (three to six acres) are actually occupied by turbines, access roads and other equipment.” If the scale of these wind turbines is a clear barrier to more widespread use, what are some viable smaller-scale wind turbine options? The National Renewable Energy Laboratory is currently exploring this market by testing a handful of small turbine systems for certification; for more information, please click here.

Environmental Effects

At the request of congress, The National Academy of the Sciences recently produced a study about the hidden costs and effects associated with different types of energy generation. This study found that damages to the environment in terms of hidden pollutants, toxins and general effects were very small compared with traditional fossil fuel sources (Source: AmericanWindEnergyAssociation.com, December 2009). To read the full report, please click here.

Energy Efficiency Outreach Programs

Boulder County, Colorado, recently launched an interesting energy efficiency outreach program funded partially by the American Recovery and Reinvestment Act. The program involves door-to-door energy efficiency outreach every Saturday from November through April, during which time homes in the targeted area will get a free two-hour energy audit. The outreach workers, dubbed the “Energy Corps,” will install small efficiency upgrades such as compact fluorescent light bulbs, low-flow showerheads, programmable thermostats, weather stripping and clotheslines. They will also check household appliances and make adjustments to those items as necessary to improve efficiency (Source: DailyCamera.com, 10/18/09).

Homeowners associations within the county can apply on behalf of their tenants and will work with county officials to sign up the willing households for the upgrades. If the program is deemed successful, the county will actively seek new sources of funding to continue it past the current deadline of April. In addition to county efforts, the City of Boulder is implementing its own door-to-door program that assesses larger-scale energy upgrade needs, arranges for financing, and schedules the projects for home owners.

On October 19, the US Department of Energy released a Recovery Through Retrofit report stating that energy efficiency retrofitting on existing homes could reduce energy waste by 40%, and that these changes alone could “…cut energy bills by $21 billion and reduce greenhouse gas emissions by 160 million metric tons every year” (Source EnergyEfficiencyNews.com, October 21). With this in mind, proactive programs like the one Boulder County is piloting could be a tremendously positive force in the United States’ drive to reduce energy consumption and carbon emissions levels as rapidly as possible. For more information about the Recovery Through Retrofit report and its full list of recommendations, please click here.

Similar programs to those seen in Boulder are rolling out nationwide as a part of the Energy Efficiency and Conservation Block Grant Program, which has earmarked more than $2.7 billion in grants available to cities, counties, tribes and SEOs and has granted more than $1.4 billion in funding already (Source: EECBG.energy.gov). To see a full listing of recipients, please click here.

In a separate finding, a recent study by the American Council for an Energy-Efficient Economy surveyed state-implemented energy efficiency programs (using data from 2007) and found that, “… it costs an average of 2.5 cents to save a kilowatt hour of electricity through the programs” (Source: WSJ.com, October 22). In contrast, according to the same study, building new energy plants results in a cost-per-kilowatt-hour of nearly three-times that rate.

Beyond the government-driven initiatives are growing efforts by utilities to reduce energy consumption. These customer initiatives range from free high-efficiency light bulbs to tiered pricing based on total energy consumption. In many states, comprehensive partnerships are forming to align the efforts of both government and utility programs toward a shared set of overall goals. One example of this type of partnership can be found in the Colorado Public Utilities Commission's recent Energy Efficiency Status Report. For a state scorecard on Utility-based energy efficiency programs provided by the ACEEE, please click here.


Last, on the local effort level and though it’s hardly news, each state continues to offer energy efficiency upgrades and weatherization efforts for low-income residents as a part of a series of US Department of Energy weatherization and low-income energy programs (Source: EERE.energy.gov).

Residential Energy Generation News

Although there are dozens of energy efficiency improvements that the average homeowner can embrace, there are an increasing number of renewable energy generation systems - and incentives – that are appearing in the residential marketplace.

Selling Your Energy - Ontario's Feed-In Tariff Proposal

The province of Ontario, Canada recently announced a strong feed-in tariff system modeled after similar programs in Europe. The program takes into account the cost differential between energy types and rewards participants accordingly, so the same number of watts fed into the main grid from these private sources are rewarded on a scale according to the estimated installation and generation costs to the energy contributor (Source: RenewableEnergyWord.com, September 25).

The proposed program includes everything from solar-generated energy to offshore wind energy and unlike programs that exist in the United States, there are no government subsidies or credits involved. In addition to the proposed feed-in tariffs, the province will commit to building an infrastructure of what they term “enabler” lines to aid in transmission of these new, privately generated renewables to the main transmission grid.

One anticipated result of these tariffs is a swift growth in the installation of renewable energy generation systems in private homes and commercial buildings. With such a wide variety of opportunities to generate renewables, one could expect to see an expansion upon the traditional hardware available to facilitate this generation.

A Material Improvement

One area where more experimental forms of energy generating components are already available to the homeowner is in solar generation cells. Several companies are developing building and roofing materials that include photovoltaic films that can be integrated into an existing roof design, rather than in the form of the standard - but less aesthetically pleasing - solar panels. Such roofing materials, while appealing, are still more costly and less efficient at this stage than the traditional solar panel technologies (Source: NewYorkTimes.com, September 26).

This week, however, some of the top experts in the development of solar materials presented some encouraging news in the development of solar generation materials at the Photovoltaic Solar Energy Conference and Exhibition (PVSEC), a European solar tradeshow. Among the many stated goals of these experts were advancements in both the efficiency of crystalline silicon (c-Si) and thin-film solar photovoltaics (PV) and the costs to produce these materials (Source: TradingMarkets.com, September 26).

Energy Efficiency Meets Renewable Energy - Geothermal

Another type of energy generation system that holds some promise on the homeowner’s level are geothermal systems, in which ground source heat pumps transfer heat stored in the ground to the residence, where a small amount of electricity can then be used to bring the temperature up further and the heat can be used for the home or to heat water. If no additional energy is added, the relatively cool temperature (compared to surface-level temperatures) can be used to cool air for dispersion into the home. Depending on the location of the home, a vertical system may involve drilling down to 200 feet and could cost as little at $10,000-$15,000, though many systems can cost more (Source: BCLocalNews.com, September 26). For the typical cost of a system, a homeowner could expect to recover the costs of installation at around seven years of operation, which tends to be sooner than the payoff seen with some other forms of energy efficiency or renewable energy generation systems at the homeowner’s level.

Making an Impact with Energy Efficiency - Where to Start

As I’ve mentioned in previous blogs, the best starting place for many homeowners is still to take on the simpler, less expensive energy efficiency improvements before seeking out more costly renewable energy generation systems. For homeowners who don’t have any idea where to start looking for the most cost-effective energy efficiency improvements to their home, I recommend The Home Energy Saver website tool, which was developed by the Environmental Energy Technologies Division at Lawrence Berkeley National Laboratory.

Changes in the Residential Energy Efficiency and Renewable Energy Marketplace

Off the Grid - Total Energy Solutions for the Home

In an effort to serve growing demand for a broad spectrum of energy efficiency improvements that can be made to our homes, GE recently announced plans to become a one-stop shop for residential energy efficiency products (Source: EnergyEfficiencyNews.com, July 15). In addition to some of the more conventional products that GE offers, such as energy efficient light bulbs, appliances, and climate control consoles, the company will soon add residential energy generation and storage products. GE estimates that by improving the energy use of appliances, HVAC systems, and lighting, peak energy demand will decline by 7% in the United States.

As we look at the expansion of energy offerings that could feasibly enter the residential market in the coming months and years, one wonders which methods will truly be the most cost effective in the long run. Though most people are aware by now that better insulation, smart climate control consoles, energy efficient light bulbs and other small items can drastically reduce energy waste in their homes, what can be said of energy generation products designed for residential use?

For most, residential solar panels, wind turbines and other energy generation technologies have historically been out of reach both financially and logistically. As I mentioned in this earlier blog, however, the options available to the average homeowner in terms of renewable energy hardware and financing for such systems are increasing rapidly. The price of solar panels, for example, has dropped 40% this past year, opening the door for some to consider installation of such panels on their property for the first time (Source, NewYorkTimes.com, August 28).

In addition to improvements in technology and the reduction in price of some renewable energy components, government and utility subsidy programs for residential renewable energy systems are also starting to gain momentum. Though a reduction in market pricing and increases in availability of private financing for such systems is a positive trend, the impact of government subsidization and financing programs face a high standard of scrutiny. With a wider range of options now available for both energy conservation and renewable energy generation in the typical residence, a recent article in the Wall Street Journal raises an important question where our tax dollars are concerned; “…should the government be doing more to subsidize conservation?”

This same article cites a study by a consulting firm McKinsey & Co. that examined the cost of eliminating one ton of CO2 emissions via different methods, including light-emitting diodes, energy efficient appliances, wind power and solar power (Source, Online.WSJ.com, July 15). The study found, not surprisingly, that reducing energy demand through an upgrade of more efficient items for the home reduced CO2 more cheaply than generating new energy through the installation of renewable energy collection devices. The latter part of this article goes on to discuss a bill that’s pending in congress right now that would do just such a thing by offering tax incentives for homeowners and businesses who install these energy saving items. In addition to its focus on reducing energy demand, the bill is structured on a results-basis so as to provide the greatest incentive for the most energy demand reduced.

Government Funding - Upgrades for the Home

Many countries worldwide are rolling out with similar energy efficiency incentive packages, such as a £15 million home makeover package, which will provide free energy audits, advice, and free or discounted insulation materials to 96,000 homes (Source: EnergyEfficiencyNews.com, August 3). As I mentioned in an earlier blog, there are similar programs being considered or implemented at national, state and local levels, such as Boulder County's (Colorado) ClimateSmart program, which loans income-qualified homeowners up to $50,000 to make energy efficiency improvements to their homes and applies the debt to the property itself. ClimateSmart participants may also install renewable energy hardware under the program, including photovoltaic, solar thermal, or wind energy systems (a full list of approved projects is available at this link).



On a national level and as a part of the American Recovery and Reinvestment Act, tax credits are available at 30% of the cost, up to $1,500, in 2009 & 2010 for several energy efficiency improvements to existing homes, including roofs, HVAC upgrades, insulation, water heaters and more (Source: EnergyStar.gov). On the renewable energy side, the Federal Government is offering a 30% individual tax credit for residential solar electric expenditures through December 31, 2016, several of which have no upper limit on the base cost (Source: Energy.gov, EnergyStar.gov). This renewable energy tax credit includes small wind property credits with a cap of $4,000 and geothermal heat pumps up to $2,000.

Return on Investment - Thoughts on Spending Stimulus Dollars Wisely

As efforts to reduce CO2 emissions ramp up in the United States and worldwide, it will be interesting to see how many new programs will be geared toward simple efficiency upgrades as opposed to renewable energy research and industry. Currently, there's a wide variety of funding and programs in place at the federal, state, county and some city levels for either or both types of improvements. While the goal is to ultimately reduce our overall pollutant waste, we should also be mindful of squeezing the most energy savings out of each dollar we spend wherever possible. I expect to see a rash of cost-effective net energy-savings studies on both commercial and residential properties in the coming months as individuals and builders begin utilizing stimulus funding to pursue these upgrades. My hope is that these studies will also factor in the net employment stimulus effect that these projects are having so that funding is most strongly allocated to those that are serving the dual purpose of employing the most workers for the most energy savings gained per dollar spent.