energy efficiency tom eggert business sustainability wi school of business
TRANSCRIPT
The Role of Energy Efficiency
• Energy efficiency is the fastest, lowest risk, most economical way to create bottom line savings, and address climate and security concerns
• Energy efficiency creates competitiveness for the U.S. economy
• Market-ready today at attractive rates of return with enormous unexploited potential
• Energy efficiency represents investments in energy not consumed, which mitigates risks associated with future price uncertainties.
• Amory Lovins talks of nega-watts
1980U.S. electricity demand = 2 trillion kWh
Source: Energy Information Administration (EIA)
U.S. electricity demand: 1980
U.S. electricity demand: 2030
Source: Energy Information Administration (EIA)
2030U.S. electricity demand = 4.8 trillion kWh
Sources: Energy Information Administration (EIA), Annual Energy Outlook, Dec. 2009
U.S. electricity generation by fuel type projection 2010-2030
The Big Picture: Energy Use in the United States
The buildings where we work, play, and learn are responsible for nearly 56% of our country’s energy use.
Energy Information Administration, 2010
Residential22%
Transportation28%Commercial
18%
Industrial32%
90
95
100
105
110
115
120
125
130
2005
2015
2025
En
erg
y C
on
sum
pti
on
(Q
uad
s)Energy Efficiency Has the Technical Potential to Level U.S. Energy Demand Growth
Buildings
Industry
Transportation
• Super Boilers• Nano Mfg• Direct
Steelmaking• Efficient Data
Centers• CHP
EIA (Pre-EISA) Business as Usual Projected Demand
Growth
EIA (Pre-EISA) Business as Usual Projected Demand
Growth
• Hybrids• Advanced
Diesels• PHEVs• Lightweight
Materials
Source: DOE Scenario Projections
2030 Tech.
Potential Savings
18 Quads
2030 Tech.
Potential Savings
18 Quads
2015 Tech.
Potential Savings 3 Quads
2015 Tech.
Potential Savings 3 Quads
2020 Tech.
Potential Savings 8 Quads
2020 Tech.
Potential Savings 8 Quads
EISA • Lighting• Envelope• ZEBs• Appliances• Codes
• CAFE• RFS• Appliance, Bldg, Industrial Motor EE
201
0
202
0
203
0
Opportunities for Energy Efficiency
• The average building wastes 30% of the energy it consumes because of inefficiencies.
• If the energy efficiency of U.S. commercial and industrial buildings improved by 10%:– Savings of $20 billion.– Reductions in greenhouse gas emissions
equal to about 30 million vehicles.
… a year
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The Role of Energy Efficiency
• Robust and evolving pipeline of efficiency technologies– McKinsey Global Institute identified energy saving
sufficient to cut consumption growth in half using only existing technologies that offer at least a 10% IRR (MGI, Curbing Global Energy Demand Growth, May 2007)
Energy Efficient Buildings
• Builders Challenge
Recognizing Leadership in Homebuilding
• Commercial Buildings Initiative
Public-private partnerships working to enable market-ready net-zero energy commercial buildings no later than 2025 in all climate zones
Commercial Building Energy Alliances EnergySmart Hospitals EnergySmart Schools
55% of U.S. Natural Gas55% of U.S. Natural Gas
72% of U.S. Electricity72% of U.S. Electricity
The combined residential and commercial buildings sector is the largest energy consumer in the U.S.
Opportunities
Control motor speed– Variable speed drives– Pulse width modulation (PWM) circuitry– Inverter controls
• Potential to save 30 – 60% of electricity currently powering motors
Opportunities: Better Lighting
• Light emitting diodes (LEDs)
• Occupancy sensors
• Light level sensors
(Also lowers air conditioning demand in building)
Opportunities: Energy Star
Modernizing ENERGY STAR
• Update and expand the ENERGY STAR program to add new advanced technologies to the ENERGY STAR portfolio.
Added or Updated since 2006:
Clothes washer
Advanced water heaters (5 categories)
Dishwashers
Solid State Lighting (7 categories)Refrigerators
Opportunities: Standby Loss
• Appliances– TV/DVD/Audio systems– Computers
• Other devices that stay plugged in
• Can save up to 6% on energy bill
Non-market Forces Impede Energy Efficiency Market Penetration
• Ignorance of opportunities
• Inconsistent Real Estate Valuation
• Inconsistent use of Life cycle costing
• Deficit of Information
• Lack of demand by Consumers
• Out of Date Utility regulation
• Inconsistant policies (e.g., Codes)
What They Are Saying
• Listed companies with an energy efficiency program outperform their competitors
»Innovest
What They Are Saying
• The economic case for energy productivity improvements has never been stronger
»McKinsey
Benefits from Energy EfficiencyBenefits from Energy Efficiency
Co
mp
any E
ner g
y E
f fi ciency
• Cost reductions through efficient use of energy• Reduced exposure to fluctuating energy supply
and prices and blackouts• Increase in productivity and product quality• Improved reputation with customers and society• Improved employee motivation, health and
safety• Compliance with legislation and ISO 14001
targets
Increased profits and shareholder value