Brutal Cold Underscores Mission and Timing of Midwest Energy Solutions Conference
breaking temperatures as low as -37 degrees F sent the Midwest into a deep
freeze last week, thought leaders in energy strategy, policy, technology, and
program design gathered in
Solutions conference (http://www.meeaconference.org).
“Our only moral position is to get more efficiency out of every resource,”
proclaimed conference speaker,
Development, LLC, a company that captures heat normally wasted during
manufacturing processes and converts it into clean power.
Hosted by the Midwest Energy Efficiency Alliance (MEEA)
(http://www.mwalliance.org), 2009 Midwest Energy Solutions — Delivering
Progress — the largest conference of its kind in the region — broke some
records of its own this year.
“Despite tough economic times in which organizations are cutting back on
non-essential travel and expenses, and even with holding the conference in
early January in
noted
importance and urgency of addressing the critical energy challenges that face
our region and the growing recognition and importance of energy efficiency.”
Topics covered during the final two days of the conference, which was held
at the InterContinental Chicago (the city’s first ENERGY STAR(R) certified
hotel), included, among others, the following:
-- Greening the Olympic Built Environment
-- Financial Analysis of Incentive Approaches to Energy Efficiency
-- Incorporating Efficiency into the Utility Business Model
-- Recycled Energy
-- Midwest Governors Association Energy Security and Climate Stewardship
Platform
For a complete conference schedule, visit
http://meeaconference.org/conference_schedule.php. For coverage of
Galvin’s
associated 2009 Inspiring Efficiency Awards Dinner and Gala, visit
http://www.meeaconference.org/awards.php.
Greening the Olympic Built Environment
Panelists representing
Department of Commerce and Economic Opportunity, and Commonwealth Edison
discussed the key role energy efficiency and other green initiatives play in
planning an event of international scope.
bid to become the official Host City of the 2016 International Olympic and
Paralympic Games, is working with local and national businesses and non-profit
organizations on creating the “greenest Olympic bid ever.” The bid, which is
due in mid-February, includes a series of Green Urban Centers located around
the city’s potential Olympic Venues, which will demonstrate
commitment to climate action and create an environmental legacy for
generations to come.
Powering just the Olympic games could require about 170,000 megawatt hours
of electricity, roughly enough to power 168,000 single family homes for a
month. To help meet this need,
the top of an “energy hierarchy” that also calls for increasing renewable
energy capacity.
Key strategies include implementing energy reduction actions through new
technology and innovative programs, implementing a low carbon materials
procurement and use plan, and using low carbon fuels.
Commonwealth Edison provided details on its three-year portfolio of energy
efficiency programs, approved by the Illinois Commerce Commission in 2007, and
commenced in mid-2008. This portfolio is expected to reduce electricity
consumption by 1.2 million megawatt hours. By 2016, ComEd estimated that
through its current programs it could reduce electricity consumption by over 2
million megawatt hours, going a long way toward meeting the requirements of
the Olympic games and area residents and businesses.
Financial Analysis of Incentive Approaches to Energy Efficiency
Guest speaker Peter Cappers, Lawrence Berkeley National Laboratory (LBNL),
provided an in-depth look at a study he co-authored with
of LBNL, entitled: Financial Impact of Energy Efficiency at a Kansas “Super-
Utility.”
The study, which analyzed the impacts of various utility performance
incentives and ratemaking mechanisms on shareholders and ratepayers over a 10-
year period, simulated a
three largest investor owned utilities.
Cappers indicated that while aggressive and sustained energy efficiency
efforts can produce significant benefits, there is an inverse relationship
between ratepayer and shareholder benefit. Shareholder returns decrease as
ratepayer bill savings increase.
Without shareholder incentives, net benefits ranged from
$242 million
scenario, net benefits dropped anywhere from
The study reveals how critical it is to balance shareholder incentive and
security with ratepayer and societal benefit in creating successful energy
efficiency initiatives.
Incorporating Efficiency into the Utility Business Model
Panelists representing AmerenUE (moderator), MidAmerican Energy, Xcel
Energy and Duke Energy, discussed how their utilities have utilized energy
efficiency as a core business strategy.
The panelists concurred that current utility regulation discourages energy
efficiency for a variety of reasons including: program costs (not in included
rates which must be deferred for future cost recovery), aggressive
conservation and efficiency (which can lead to under-recovery of fixed costs),
and efficiency (which does not earn a profit).
All of the utilities are working with state legislatures on innovative
approaches that include shared savings. Xcel Energy described an approach
where shareholders receive a portion of the energy efficiency savings. Duke
provided an overview of its Save-a-Watt program, which is unique in that the
utility is compensated based on the performance of the program, from which it
must pay all customer incentives and marketing, measurement and administrative
costs. If compensation goals aren’t met, the company loses money.
Keynote Address:
Opening the final day of the conference was
Recycled Energy Development. Casten, whose company captures wasted heat and
turns it into clean energy, portrayed electricity generation inefficiency as
the “elephant in the room.”
Casten indicated that only 33% of the energy used in generating
electricity is actually turned into electricity. The rest is wasted, lost
either as heat or in transmitting electricity far distances across high
voltage power lines. Despite all the gains made on the consumption side of the
meter, the percentage of wasted generation energy has remained fairly
consistent over the past three decades.
Until now. There are over 250 localized generation projects in
States
alternate methods that capture wasted energy. Casten noted six industrial heat
waste recovery projects that deliver over 90% efficiency, 190 steam pressure
recovery projects that deliver near 90% efficiency and 56 combined heat and
power projects that deliver efficiencies ranging from over 60% to over 90%.
The return of clean energy per dollar invested in the type of energy
recovery projects that Casten described can be 72 times greater than of solar
collectors, and 20 times that of wind turbines.
With electricity generation currently accounting for 42% of CO2 emissions
in
environmental benefits.
Despite the business and environmental case for energy recovery, there are
quite a few regulatory barriers. Some solutions to those barriers could be for
states to recognize recovered energy in the same way they recognize energy
efficiency and renewable energy projects and, to protect the utilities that
distribute electricity, compel the local generators to sell the electricity
back to the grid.
Midwest Governors Association Energy Security and Climate Stewardship
Platform
Panelists from MEEA (moderator), the Illinois Department of Commerce and
Economic Opportunity, Iowa Office of Energy Independence and the Wisconsin
Office of Energy Independence discussed energy efficiency and what their
states are doing as signatories to the Midwestern Governors Association (MGA)
Energy Security and Climate Stewardship Platform.
The MGA Platform looks to meet at least 2 percent of regional annual
retail sales of natural gas and electricity through energy efficiency
improvements by 2015 and continue to achieve an additional 2 percent in
efficiency improvements every year thereafter.
has set goals of 0.2% reduction in annual electricity load, rising to 2% by
2015 and beyond. For every
dollars
assistance to projects that will improve
and energy efficiency sectors. Applications totaled more than
requests,
The
Energy has established goals for government agencies to purchase energy
efficient equipment, satisfy 25% of electricity and fuel requirements from
renewable resources by 2025, and become national leader in groundbreaking
energy research.
projects.
About MEEA — The Source on Energy Efficiency
The Midwest Energy Efficiency Alliance (http://www.mwalliance.org) is a
collaborative network advancing energy efficiency in the Midwest to support
sustainable economic development and environmental preservation.
MEEA promotes the market transformation of energy efficiency technologies,
processes and best practices within a 13-state area, through policy advocacy,
program design and facilitation and piloting of energy technologies. MEEA
bridges the gap between policy adoption and program implementation.
Energy efficiency is the critical first step in meeting our nation’s
myriad energy challenges due to low entry costs, proven and emerging
technologies, ease of implementation, fast return on investment and measurable
results.
Through our diverse network of members and regional allies, MEEA possesses
the practical experience and informed vision to effect positive change today
by supporting the region’s stakeholders to achieve their efficiency goals for
the future.
SOURCE Midwest Energy Efficiency Alliance