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January 30, 2007

Getting real on energy "independence"

A commentary from UtiliPoint, taking a realistc look at the investment , timeline, and portfolio needs to really dramaticaly change where we get energy from, linking it nicely to the emerging focus of global capital on this problem. Private investment will lead the way.

Why We Can't Grow Our Way Out of Energy Dependence
By Peter C. Fusaro
Chairman, Global Change Associates

The new Congress has raised the expectation bar, unfortunately, with the same fuzzy thinking. Quick fit artists are back. Ethanol is not a panacea for energy security or energy dependence. Raising the Renewable Fuel Standard (RFS) to 15 billion gallons gives us an E10 world, and not much energy savings or environmental benefit. Corn-based ethanol is highly inefficient and does little to help the United States fix its habit to foreign oil. Food for fuels is another problem area both ethically and economically.

The other major impediment to a sanguine energy and environmental policy is the problem requires a long-term strategy, and not a coalition of fast buck artists and lobbyists. The nation needs to take a deep breath and realize that to get into this energy addiction (it's not just oil) requires a total re-think of how we use energy and how it impacts the environment. Each solution will take time and lots of money. The $4 billion amount of spending by energy companies on annual R&D pales with what is really needed (U.S. automobile manufacturers spend $30 billion, by comparison). We are talking about a multi-hundred billion dollar investment that is called energy infrastructure. It's not a sexy concept, but is the right way to look at the problem.

We need to look past the quick photo opportunity and ribbon cutting and get down to what my father called “heavy lifting.” We need to rebuild America's aging infrastructure in energy, telecommunications and water. We need to educate consumers that energy efficiency does not mean sacrifice, but actually has paybacks and return on investment. And we don't need to get big government in the middle of boondoggles and cost overruns. This requires engineering solutions to build out a cleaner, greener America where everyone benefits from better health and reduced energy costs. That's what I call a true “win-win,” but it requires the acknowledgement that this task is going to take decades. Changing the automobile fleet to plug and play hybrids, the only way to really get savings and real environmental benefits, will take 10 to 12 years at a minimum. “Hydrogen highways” notwithstanding, it's going to be based on gasoline and diesel. Except this time we are going to use a lot less of it; Ethanol, hydrogen and the other alternative fuels will fill out that platform of “fuels of the future.” Charge up those cars at night during off peak rates. The economists can do the numbers, but I am sure that they make the cut .

It's the Portfolio Approach, Stupid

Secondly, we have to get real about nuclear and coal. 25 percent renewables by 2025 is very doable, and could be exceeded, but the realization must be made that fossil fuels (oil, gas and coal) are still going to be consumed in 20 and 30 years. It makes sense to focus on coal as a clean fuel alternative producing lower emissions and co-production of liquids such as diesel fuel or ethanol (It's all hydrocarbon molecules being rearranged), and marrying the carbon stream to sequestration.

Then, we have to get serious about significant greenhouse gas reductions, and that means a revisiting of nuclear power. I won't go into the mining and waste disposal issues here, which are very real. The 103 nuke plants need to be expanded to better technology with standardized designs. Nuclear power electricity does not make emissions. So, its part of any solutions package.

Greater Standards on Green Buildings

Finally, we have to accept that most of our buildings are highly inefficient (sometimes three times less efficient than their European counterparts). So, we need to invest in more green building technology for both new construction and the larger existing infrastructure. Lighting contributes heavily to commercial building load and so does pcs, laser printer, fax machines, servers, etc. We need to focus on the building envelope with more energy efficient design and applications of better and smarter energy management technologies.

New Year Beckons New Thinking on This Problem

It's a new year and a new focus on our twin problems of energy and environment. I would add a third, job security. The United States is now under globalization pressures and competition will come from everyone, so why not frame the debate in terms of growing new businesses (pun intended) for energy storage, efficiency, transport, and comfort. These investments will create jobs for Americans.

What I now see happening is that the true energy professionals are coming into the space, mostly as private equity funds for clean tech and clean energy alternative. These are established teams that have built energy projects all over this country and the world. The know-how is coming into place. Big energy will be the exit strategies and buy these new technology upstarts. We have entered the bottom of the first inning. This is a long game. It is survival of the energy fittest, and we need to start now!

Posted by adrianm at January 30, 2007 07:06 PM




Comments

MANDATORY RENEWABLE ENERGY – THE ENERGY EVOLUTION –R11

In order to insure energy and economic independence as well as better economic growth without being blackmailed by foreign countries, our country, the United States of America’s Utilization of Energy sources must change.
"Energy drives our entire economy." We must protect it. "Let's face it, without energy the whole economy and economic society we have set up would come to a halt. So you want to have control over such an important resource that you need for your society and your economy." The American way of life is not negotiable.
Our continued dependence on fossil fuels could and will lead to catastrophic consequences.

The federal, state and local government should implement a mandatory renewable energy installation program for residential and commercial property on new construction and remodeling projects with the use of energy efficient material, mechanical systems, appliances, lighting, etc. The source of energy must by renewable energy such as Solar-Photovoltaic, Geothermal, Wind, Biofuels, Ocean-Tidal, etc. including utilizing water from lakes, rivers and oceans to circulate in cooling towers to produce air conditioning and the utilization of proper landscaping to reduce energy consumption. (Sales tax on renewable energy products should be reduced or eliminated)

The implementation of mandatory renewable energy could be done on a gradual scale over the next 10 years. At the end of the 10 year period all construction and energy use in the structures throughout the United States must be 100% powered by renewable energy. (This can be done by amending building code)

In addition, the governments must impose laws, rules and regulations whereby the utility companies must comply with a fair “NET METERING” (the buying of excess generation from the consumer at market price), including the promotion of research and production of “renewable energy technology” with various long term incentives and grants. The various foundations in existence should be used to contribute to this cause.

A mandatory time table should also be established for the automobile industry to gradually produce an automobile powered by renewable energy. The American automobile industry is surely capable of accomplishing this task. As an inducement to buy hybrid automobiles (sales tax should be reduced or eliminated on American manufactured automobiles).

This is a way to expedite our energy independence and economic growth. (This will also create a substantial amount of new jobs). It will take maximum effort and a relentless pursuit of the private, commercial and industrial government sectors commitment to renewable energy – energy generation (wind, solar, hydro, biofuels, geothermal, energy storage (fuel cells, advance batteries), energy infrastructure (management, transmission) and energy efficiency (lighting, sensors, automation, conservation) (rainwater harvesting, water conservation) (energy and natural resources conservation) in order to achieve our energy independence.

"To succeed, you have to believe in something with such a passion that it becomes a reality."

Jay Draiman, Energy Consultant
Northridge, CA. 91325
Feb. 2, 2007

P.S. I have a very deep belief in America's capabilities. Within the next 10 years we can accomplish our energy independence, if we as a nation truly set our goals to accomplish this.
I happen to believe that we can do it. In another crisis--the one in 1942--President Franklin D. Roosevelt said this country would build 60,000 [50,000] military aircraft. By 1943, production in that program had reached 125,000 aircraft annually. They did it then. We can do it now.
The American people resilience and determination to retain the way of life is unconquerable and we as a nation will succeed in this endeavor of Energy Independence.

Solar energy is the source of all energy on the earth (excepting volcanic geothermal). Wind, wave and fossil fuels all get their energy from the sun. Fossil fuels are only a battery which will eventually run out. The sooner we can exploit all forms of Solar energy (cost effectively or not against dubiously cheap FFs) the better off we will all be. If the battery runs out first, the survivors will all be living like in the 18th century again.

Every new home built should come with a solar package. A 1.5 kW per bedroom is a good rule of thumb. The formula 1.5 X's 5 hrs per day X's 30 days will produce about 225 kWh per bedroom monthly. This peak production period will offset 17 to 2

4 cents per kWh with a potential of $160 per month or about $60,000 over the 30-year mortgage period for a three-bedroom home. It is economically feasible at the current energy price and the interest portion of the loan is deductible. Why not?

Title 24 has been mandated forcing developers to build energy efficient homes. Their bull-headedness put them in that position and now they see that Title 24 works with little added cost. Solar should also be mandated and if the developer designs a home that solar is impossible to do then they should pay an equivalent mitigation fee allowing others to put solar on in place of their negligence. (Installation should be paid “performance based”)

Installation of renewable energy and its performance should be paid to the installer and manufacturer based on "performance based" (that means they are held accountable for the performance of the product - that includes the automobile industry). This will gain the trust and confidence of the end-user to proceed with such a project; it will also prove to the public that it is a viable avenue of energy conservation.

Installing renewable energy system on your home or business increases the value of the property and provides a marketing advantage.

Nations of the world should unite and join together in a cohesive effort to develop and implement MANDATORY RENEWABLE ENERGY for the sake of humankind and future generations.


Jay Draiman
Northridge, CA 91325
Email: renewableenergy2@msn.com

Comment by: Jay Draiman at February 1, 2007 10:09 PM

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Homeowners can cut energy bills by making their houses more energy-efficient R2
HOMEOWNERS can practically hear the meters ticking as their air conditioners fight this summer's sweltering heat.
But that doesn't mean there aren't some things they can do to ward off high energy bills now--and once winter sweeps in.
Just ask THE ENERGY EXPERT, who conducts residential energy audits as National Energy Efficiency Auditor.
"The most common problem is air infiltration," he said, "where unconditioned air meets conditioned air."
THE ENERGY EXPERT, who uses smoke pencils to detect leaks and infrared scans to check insulation, windows, attics and roofs, said poorly insulated "room additions" over garages top the list of energy wasters.
"Builders don't always sheathe the back side of the drywall in insulation, so hot attic air infiltrates the room," he said. "There's only one piece of drywall keeping the hot air out."
THE ENERGY Experts’ solution is to install energy-efficient foam board with an aluminum-foil backing behind the drywall. A recent job cost about $300 and or insulation and attic fans in the attic – there is also a rebate and tax credits (check with your local utility). (Insulation in the attic and attic fans reduce energy consumption substantially).
"It pays for itself in one season," THE ENERGY EXPERT said.
Homeowners typically spend about $1,600 a year to heat and cool the house, turn lights on and off, and operate appliances, said spokeswoman for the nonprofit Alliance to Save Energy.
But they can cut those expenses by as much as $600 by switching to more energy-efficient products and taking a variety of other energy-saving steps.
Those can be as simple as replacing a 15- to 20-year-old refrigerator with a new Energy Star model, which uses about a fourth as much electricity as an older appliance, and/or putting compact florescent bulbs or LED bulbs in at least the five most commonly used light fixtures in the house. You should also replace burned out motors/compressors with energy efficient multi-stage motors.
"Compact fluorescents cost more up front, but you really make it up because they use somewhere between 20 and 25 percent of the energy required for an incandescent and they last 10 times longer," the Energy Expert said. "Plus, they don't burn as hot, so they don't heat up the place during the summer and your air conditioner has to work less hard."
A good place for homeowners to start in determining how their energy usage stacks up is to log on to the Home Energy Saver at homeenergysaver.lbl.gov.
Developed by the Department of Energy and the Environmental Protection Agency, this site calculates energy use and savings tips based on information that users provide. Type in a ZIP code and up pop the energy costs of an average home and an energy-efficient home for that area.
The program also includes a questionnaire that asks for more detailed information so it can provide a customized answer. It also has links to sites that provide a wealth of information about its energy-saving recommendations.
On various utility companies Web sites, shoppers can order a similarly helpful gizmo called Watts Up? Plug in any standard 120-volt appliance or electronic device, and it will analyze such things as current draw, incoming voltage and cost of operation. The Watts Up? Basic model costs $89.95 and the pro version costs $123.95.
Rather leave audits to professionals?
Some auditors offer a standard audit for $100 that includes a visual inspection of the house and its heating, ventilation and air-conditioning systems. An expanded audit, which costs $200, includes tests to check for leaks in air ducts and the house's air-tightness.
Your local utility company may do audits, also has a list of providers on its Web site.
Low-income homeowners can get help for free through the Aging weatherization assistance program.
"We go into the house and do various tests to find problem areas," said the Energy Consultant. "What we do in most cases is make minor repairs and blow in insulation."
Last fiscal year, many families got help through the federally funded program.
Sometimes, however, the most effective ways to trim energy usage are the easiest, the Energy Expert said.
Putting up weather-stripping, for example, is something anyone can do yet many people overlook, he said. The same goes for changing a heating system's air filters on a regular basis or a set-back thermostat.
The Energy Expert also recommended installing ceiling fans and programmable electronic thermostats. A fan can make a room feel cooler so the air conditioning can be turned up, and a programmable thermostat automatically lowers the heat setting while homeowners are at work and raises it just before they return.
The Energy Expert has also learned that putting the screens/shades on the south-facing windows of the house in the summer will help block out some of the sun's fierce heat. In some states especially the western parts of the United States temperature at night falls to 50-60 degrees – open the windows and shut the air-condition and or utilize a fan to bring in the fresh cooler air – it is also healthier and reduces indoor pollution. In areas of the country that have a high humidity – you can install a dehumidifier in the summer to reduce energy cost and a humidifier in the winter.
"I take the screens and or shades off in the winter," The Energy Expert said.
Increasing a house's energy efficiency not only lowers the owner's bills, it also raises the value of the property. According to an EPA-funded study done in 2005, the latest year for which figures are available, a house's value jumps $10 to $25 for every $1 the owner is able to save on annual fuel/energy bills. You can also utilize rainwater and grey water to reduce your water and sewer bill. Some utility companies will allow you to install a sub-meter for the water used for landscaping, swimming pools and ponds – which eliminates the sewer charge from that portion of your water bill.
"You'll get a better price because you can show them your heating and cooling bills, which are reasonable and not outrageous," said The Energy Expert, national energy-management coordinator.
The Energy Expert oversees many Energy Saver Home programs, which inspects houses as they're being built to insure they're properly insulated and sealed. The inspections cost $250 and come with a year-long warranty. For an added service The Energy Expert will perform a site inspection for the installation of Solar/Photovoltaic system for the home and/or business and its benefits, costs, rebates, tax credits, financing and ROI.
Prospective buyers of energy-efficient houses can get a break, too.
"Some mortgage companies will allow you a better debt-to-income ratio," The Energy Expert said. "They know your electric/gas utility bills will be less so you'll have more income to put toward your mortgage."
YJ Draiman - Energy Savers 6/29/2007 – renewableenergy2@msn.com

Comment by: Jay Draiman [TypeKey Profile Page] at June 29, 2007 02:37 PM

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