the financial costs of energy waste nasuca conference – san antonio, tx june 27, 2011
TRANSCRIPT
The Financial Costs of Energy Waste
NASUCA Conference – San Antonio, TX
June 27, 2011
The Story
Page 2
The potential for energy efficiency is massive
The cost of NOT tapping EE is extremely high
We can’t manage what we don’t measure
Demand response is the skeleton key to energy efficiency
Technology is our friend
We need rules that credits “persistence” of operational efficiency
Pop Quiz
Where in the top 30 does the US rank in terms of
energy efficient countries?
Page 3
Geographic Energy EfficiencyThe combination of technology access and energy inefficiency make the US the single best market opportunity for clean and intelligent energy management.
Sources: Peter Corless 30 Sep 2005 Analysis of top 40 largest national economies (GDP) by plotting GDP per capita vs. 'energy efficiency' (GDP per million Btus consumed); an inverse examination of 'energy intensity.'
GDP vs. Energy Efficiency(Top 40 Economies by GDP)
Page 4
What is the Cost of Energy Waste?
Page 5
There is more energy efficiency potential in the US
than the total proven oil reserves in Saudi Arabia at
less than 20% the unit price!
Relative Cost of Renewable Electricity in US
Page 6
2010 Average $/kWh
Source: REN21, Renewables 2010 Global Status Report, DOE EIA.
Page 7
The cheapest kWh is the one never used – it also happens to be
the greenest!
Don’t Take My Word for It
“By 2020, the US could reduce annual energy consumption by 29% in the commercial sector by deploying an array of NPV-positive efficiency measures.”- McKinsey
“Energy efficiency constitutes the largest, most evenly geographically distributed, and least expensive energy resource.”- United Nations Foundation
“Combined U.S. electric and gas utility efficiency program budgets have doubled since 2006.”- Consortium of Energy Efficiency
“The average cost of an energy efficiency kWh in the US is $0.027/kWh compared with the average retail rate of $0.097/kWh.”- National Academy of Sciences
Page 8
“Why is there so much latent EE potential?”
“Why haven’t customers bought in?”
“What gives?”
Page 9
Page 10
A Personal Perspective – The Enemy!
Energy Managers – A Rare Species!
Source: Analysis of ~39,000 contact titles associated with C&I customer accounts in ECRM.
Plant Manager 1,236General Manager 633IT 490President 466Operations Manager 402Maintenance Manager 362Facilities Manager 354Owner 296Vice President 261Maintenance Supervisor 251CFO 241Controller 239Chief Engineer 235Manager 225Production Manager 218Facilities 180Electrician 173Facility manager 166Plant Engineer 166Director of Operations 161
2% of our customer’s
titles contain “energy” “sus”
or “env”
Top 20 Titles of Existing EnerNOC Customers
Page 11
Page 12
“Energy doesn’t call in the middle of the night and tell you that it’s getting wasted.”
Chris PowellDirector, Brown University(Answering the question: “Why EnerNOC?”)
Page 13
Our Customers Love Our DR!
As of March 31, 2011:
6,300 MW under management
3,900 C&I demand response customers
10,100 C&I sites under management
Page 14
15
Energy Network Operations Center
Page 15
DR is EE’s Skeleton Key
EnerNOC DR is:– No cost – we install DR technology for free– No risk – we protect customers from event
underperformance– Cash Payments – we pay you to be ready/to respond– Simple – we make easy what would be complex
Our DR technology unlocks EE by providing:– Real-time, five-minute, web-based visibility into usage– Training wheels for deeper energy management– An extensible platform – we connect to anything– DR payments become catalyst to invest– Baseline from which to “prove” EE to CFO
Page 16
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A Story About Operational Energy Savings
Page 17
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Action Recommended: Enable auto-control – no cost! As a result of this measure new protocols were established for requesting off-hours usage to further limit this issue from re-occurring. $21,000 annual savings, 102 Tons of CO2.
Those Hooligan Chess Players!
Page 18
Two Paths to Energy Efficiency
1. Traditional – Capital/Equipment Retrofits
2. Progressive – Real-Time Operational/Behavioral Efficiency
Page 19
The Story Revisited
Page 20
The potential for energy efficiency is massive
The cost of NOT tapping EE is extremely high
We can’t manage what we don’t measure
Demand response is the skeleton key to energy efficiency
Technology is our friend
We need rules that credits “persistence” of operational efficiency