July 29, 2009 8:20 AM PDT
McKinsey: Energy efficiency could save $700 billion
by Martin LaMonica 10 comments
Energy efficiency--it's not just the low-hanging fruit, it's the fruit that's lying on the ground, Energy Secretary Steven Chu recently quipped. Now McKinsey has put a number on the potential savings: $1.2 trillion on an investment of $520 billion over 10 years.
The consulting firm on Wednesday released a follow-up report to its often-cited economic analysis for reducing greenhouse gas emissions.
(Credit: McKinsey)
While there are countless proposals to generate energy in cleaner ways, the McKinsey study concluded that using existing products and practices, such as weatherizing homes or installing combined heat and power systems, could yield vast savings by 2020.
However, there are number of barriers, including the up-front cost, a fragmented array of products covering hundreds of thousands of buildings and billions of devices, and a lack of awareness that efficiency exists as a "fuel source" itself, McKinsey consultants said during a press conference Wednesday.
"If we do nothing, we will waste $1.2 trillion of energy," McKinsey partner Ken Ostrowski said. "Over a decade, (the up-front investment) would be $50 billion a year, which is about five times what we invest today. That investment pays back--it's one of the few that generate environmental benefits and economic cost returns."
The study examined the potential for efficiency in stationary sources, so it does not include transportation. The demand for power could be decreased 23 percent by 2020, which is equivalent to the nontransportation energy consumption of Canada or removing the entire U.S. passenger fleet from the road.
Individual homes and businesses could save about 28 percent off their current energy spending, while the industrial sector could save 20 percent. Within people's homes, electronic devices are quickly becoming a larger portion of monthly electric bills.
When surveyed, the average American estimates that "plug loads" represent 13 percent of energy consumption, but the number is more like 35 percent and growing, Ostrowski said.
Standby power alone, sometimes referred to a home's parasitic or vampire load, is 6 percent to 8 percent of the total. Putting in place efficiency standards to cut standby power could result in energy savings equivalent to the annual electricity consumption of the Netherlands, Ostrowski said.
"These things are significant but fragmented. The awareness levels are not there today, and that's one of the barriers we have to overcome," he said.
Comment
It sounds like an educational issue, to raise awareness of energy efficiency as a viable and profitable option for America. I leave my computer on when I leave so that the cancer research program on my computer can run unimpeded until I return.
Showing posts with label Energy Efficiency. Show all posts
Showing posts with label Energy Efficiency. Show all posts
Tuesday, September 29, 2009
Politicos give natural gas, efficiency top billing
August 10, 2009 6:50 PM PDT
Politicos give natural gas, efficiency top billing
by Martin LaMonica 15 comments
Increasing domestic natural gas production and retrofitting buildings to be more efficient should form the basis of a low-carbon U.S. energy policy, according to a statement put out Monday during the Clean Energy Summit.
The summit, held for the second year in Las Vegas, brought together some of the most recognized political figures shaping energy policy, including Sen. Harry Reid of Nevada, Energy Secretary Steven Chu, and businessman T. Boone Pickens. Other speakers included Bill Clinton, Labor Secretary Hilda Solis, Al Gore, and green jobs advocate Van Jones.
The event was organized by the Center for American Progress and the Energy Future Coalition, which jointly put out a memo touting the benefits of natural gas and building efficiency.
The memo says that there is now technology to tap natural gas in so-called nonconventional sources, namely trapped in shale deposits in the U.S. "This creates an unprecedented opportunity to use gas as a bridge fuel to a 21st-century energy economy that relies on efficiency, renewable sources, and low-carbon fossil fuels such as natural gas," according to the memo. (Click for PDF of full text.)
Natural gas can be used to make electricity and as a transportation fuel. The memo recommends investing in natural gas filling stations for large trucks and buses, which are much harder to run from electric batteries than passenger cars. In addition to reducing imports of oil, natural gas burns cleaner than coal, emitting half as much carbon
Efficiency, considered the most cost-effective way to reduce fossil fuel use, was a consistent topic of discussion at the summit as well.
The Center for American Progress and Energy Future Coalition estimated that retrofitting 40 percent of U.S. homes and buildings would save consumers $1,200 a month on energy bills and create 625,000 jobs.
"Energy efficiency should be the first source we turn toward to meet energy demand and reduce consumers' bills" said Reid, who is a key figure in the energy and climate bill being considered by Congress. "It creates more jobs than nearly every other energy investment and the cheapest, cleanest, safest energy is the energy we never have to use."
Comment
While I like The Pickens Plan of wind power and a switch to natural gas as a bridge fuel until fuel cells or something better can be developed, I am a little concerned about his motivation. He owns a natural gas company and would stand to make a LOT of money by the the shift to natural gas. I do not mind someone making a profit, but I DO mind price gouging, whether its by the Arabs, or our own American companies. My sister lives in Augusta, Ga and said last year that natural gas prices there have tripled in the past four years. Natural gas prices are way down now, but if the demand goes way up I am concerned that the prices will go up with them.
Politicos give natural gas, efficiency top billing
by Martin LaMonica 15 comments
Increasing domestic natural gas production and retrofitting buildings to be more efficient should form the basis of a low-carbon U.S. energy policy, according to a statement put out Monday during the Clean Energy Summit.
The summit, held for the second year in Las Vegas, brought together some of the most recognized political figures shaping energy policy, including Sen. Harry Reid of Nevada, Energy Secretary Steven Chu, and businessman T. Boone Pickens. Other speakers included Bill Clinton, Labor Secretary Hilda Solis, Al Gore, and green jobs advocate Van Jones.
The event was organized by the Center for American Progress and the Energy Future Coalition, which jointly put out a memo touting the benefits of natural gas and building efficiency.
The memo says that there is now technology to tap natural gas in so-called nonconventional sources, namely trapped in shale deposits in the U.S. "This creates an unprecedented opportunity to use gas as a bridge fuel to a 21st-century energy economy that relies on efficiency, renewable sources, and low-carbon fossil fuels such as natural gas," according to the memo. (Click for PDF of full text.)
Natural gas can be used to make electricity and as a transportation fuel. The memo recommends investing in natural gas filling stations for large trucks and buses, which are much harder to run from electric batteries than passenger cars. In addition to reducing imports of oil, natural gas burns cleaner than coal, emitting half as much carbon
Efficiency, considered the most cost-effective way to reduce fossil fuel use, was a consistent topic of discussion at the summit as well.
The Center for American Progress and Energy Future Coalition estimated that retrofitting 40 percent of U.S. homes and buildings would save consumers $1,200 a month on energy bills and create 625,000 jobs.
"Energy efficiency should be the first source we turn toward to meet energy demand and reduce consumers' bills" said Reid, who is a key figure in the energy and climate bill being considered by Congress. "It creates more jobs than nearly every other energy investment and the cheapest, cleanest, safest energy is the energy we never have to use."
Comment
While I like The Pickens Plan of wind power and a switch to natural gas as a bridge fuel until fuel cells or something better can be developed, I am a little concerned about his motivation. He owns a natural gas company and would stand to make a LOT of money by the the shift to natural gas. I do not mind someone making a profit, but I DO mind price gouging, whether its by the Arabs, or our own American companies. My sister lives in Augusta, Ga and said last year that natural gas prices there have tripled in the past four years. Natural gas prices are way down now, but if the demand goes way up I am concerned that the prices will go up with them.
Tuesday, August 25, 2009
Energy Efficiency Can Earn Great Financial Returns
Jonathan A. ScheinFounder of ScheinMedia
Posted: August 25, 2009 10:28 AM BIO
Energy Efficiency Can Earn Great Financial Returns
Read More: Commercial Real Estate, Energy Efficiency, Green Energy, Greenhouse Gases, Mckinsey, Real Estate, Green News
Here is a simple investment question. Would you invest one dollar if you were guaranteed to receive two dollars back and get a 100% return? I'm not talking about an email scam emanating from Nigreria but an idea for aligning financial priorities and energy efficiency. Based on a recent study by the consulting firm McKinsey, a $5.2 billion investment in energy efficiency can result in a savings of up to $1.2 trillion by 2020. These investments are not the type one thinks about when these amounts of dollars are thrown around. These savings come from simple actions such as replacing energy-draining household appliances with newer energy- saving models, sealing leaky building ducts, and other mundane initiatives. According to the study, these changes would decrease our energy consumption by 23% over the next 11 years—that's equal to the entire non-transportation energy consumption of Canada. The numbers are staggering, representing an estimated reduction of "end use energy consumption in 2020 of 9.1 trillion BTUs...potentially abating up to 1.1 gigatons greenhouse gases annually," as stated in the report.
Of course there are huge barriers to such a program. This study indicates that there has to be stimulated demand for energy efficiency in over 100 million buildings across the country, both commercial and residential. Is it possible to motivate owners and managers to become truly energy efficient? New construction is already addressing many energy efficiency needs. However, the real issue is the existing building stock, which is by no means up to standards necessary today. McKinsey indicates that the industrial and commercial sector accounts for approximately 65% of the structures that stand to gain from implementing energy efficiency upgrades, while the remaining 35% would upgrade existing housing stock.
First, there's the money issue. At this point the economic downturn has hit all sides of real estate ownership and there simply may not be enough cash on hand to pay for the upgrades, especially on the single-home-ownership front. Secondly, this project will probably take a long time to implement. Right now, there are some commercial owners and managers with the wherewithal to invest in their current portfolios, which makes great short- and long-term sense. For those who can't commit the funds now, this will be decided by the rate of economic recovery and property owners' willingness to invest in upgrades and retrofits. I can't see how anyone could fail to appreciate that this kind of investment in energy efficiency makes good sense.
Jonathan A. Schein is the publisher of MetroGreenBusiness.com and GreenBusinessCareers.com
Posted: August 25, 2009 10:28 AM BIO
Energy Efficiency Can Earn Great Financial Returns
Read More: Commercial Real Estate, Energy Efficiency, Green Energy, Greenhouse Gases, Mckinsey, Real Estate, Green News
Here is a simple investment question. Would you invest one dollar if you were guaranteed to receive two dollars back and get a 100% return? I'm not talking about an email scam emanating from Nigreria but an idea for aligning financial priorities and energy efficiency. Based on a recent study by the consulting firm McKinsey, a $5.2 billion investment in energy efficiency can result in a savings of up to $1.2 trillion by 2020. These investments are not the type one thinks about when these amounts of dollars are thrown around. These savings come from simple actions such as replacing energy-draining household appliances with newer energy- saving models, sealing leaky building ducts, and other mundane initiatives. According to the study, these changes would decrease our energy consumption by 23% over the next 11 years—that's equal to the entire non-transportation energy consumption of Canada. The numbers are staggering, representing an estimated reduction of "end use energy consumption in 2020 of 9.1 trillion BTUs...potentially abating up to 1.1 gigatons greenhouse gases annually," as stated in the report.
Of course there are huge barriers to such a program. This study indicates that there has to be stimulated demand for energy efficiency in over 100 million buildings across the country, both commercial and residential. Is it possible to motivate owners and managers to become truly energy efficient? New construction is already addressing many energy efficiency needs. However, the real issue is the existing building stock, which is by no means up to standards necessary today. McKinsey indicates that the industrial and commercial sector accounts for approximately 65% of the structures that stand to gain from implementing energy efficiency upgrades, while the remaining 35% would upgrade existing housing stock.
First, there's the money issue. At this point the economic downturn has hit all sides of real estate ownership and there simply may not be enough cash on hand to pay for the upgrades, especially on the single-home-ownership front. Secondly, this project will probably take a long time to implement. Right now, there are some commercial owners and managers with the wherewithal to invest in their current portfolios, which makes great short- and long-term sense. For those who can't commit the funds now, this will be decided by the rate of economic recovery and property owners' willingness to invest in upgrades and retrofits. I can't see how anyone could fail to appreciate that this kind of investment in energy efficiency makes good sense.
Jonathan A. Schein is the publisher of MetroGreenBusiness.com and GreenBusinessCareers.com
Wednesday, May 6, 2009
Energy Efficiency- Repower America
Energy Efficiency
The Problem: Millions of dollars and enormous amounts of energy are wasted each year simply because our homes and businesses aren’t as energy-efficient as they could be. Meanwhile, our demand for electricity is expected to grow by over 25% in the next two decades.1
The Solution: To make the most out of the energy we currently produce, America needs a national efficiency upgrade. Make new buildings more efficient, upgrade old buildings to save energy, and update our appliances and equipment to use less energy and perform the same or more functions than they do now.
The Benefits: Energy efficiency is where the greatest and most immediate gains can be made. Household and commercial building efficiency can increase by 30% with existing technologies – an upgrade that will save the typical homeowner $450 dollars a year on utility bills.2 Improving devices that use power in “stand-by” mode alone would save consumers $3 billion per year.3 These improvements will drive economic growth. Many efficiency upgrades will pay for themselves in just a year or two. The result will be more comfortable and valuable homes and buildings, lower utility bills, and tens of thousands of new jobs as we retrofit existing buildings to be more efficient and manufacture more American products that use less energy.
How We Get There
Implement government policies and programs that quickly improve efficiency in all sectors of our economy. There are clear examples of the enormous financial and technical benefits of investing in efficiency. What’s needed now is a systematic approach to achieve such savings across the board, so that ALL businesses and homeowners can start realizing savings. This should be a massive mobilization that will involve utilities and their regulators; equipment and appliance manufacturers and installers; and homeowners, business operators and landlords across the nation. Lights, air conditioning, heaters, appliances, computers, electronics, water heaters, motors, fans – each of these technology categories can perform its function and consume 20%-70% less energy (and much more, in some cases). Plus, with every successive generation of new products, more savings can be achieved. It's about an ongoing economy-wide effort to make every home and every building – along with every item inside those homes and buildings – more efficient.
Elements to include in a National Efficiency Upgrade:
Home and building upgrades: Neighborhood by neighborhood, town by town. All buildings eligible for an efficiency upgrade can immediately save energy and lower utility bills.
New building standards: National efficiency standards for new homes and commercial buildings so people pay less to keep warmer in the winter and cooler in the summer.
Updated appliance and equipment standards: Revisit our national standards and Energy Star program to ensure that everything people buy is more efficient.
Regulatory reforms: Efficiency targets or other regulatory schemes so utilities have an incentive to sell less electricity, rather than more.
Commercial and industrial programs: Incentive programs that encourage businesses of all sizes to become more efficient and productive.
Retrofit and replacement programs: Incentives to scrap inefficient appliances like old refrigerators or industrial motors that waste energy and money and replace them with the most efficient machinery.
Owner-renter incentives: Policies that align the interests of owners and renters, so both benefit from the lower utility bills.
Buyer-seller incentives: Policies to ensure that homes are upgraded when they change hands, so they become more efficient through energy inspections, efficiency ratings, or other programs.
Universal installation of existing technologies: Greater access to tools and technologies, like smart meters and programmable thermostats, which allow for better control of energy use.
Join us: "I want to Repower America with 100% clean electricity within 10 years."
Signed,
Did you know?
In the United States, buildings are responsible for approximately 30% of greenhouse gas emissions and 72% of all electricity use. By making simple changes, like using the proper amount of insulation and the best windows, we can significantly save the energy it takes to heat, cool, light, and otherwise provide power to buildings. And, with buildings lasting for 40-50 years or more, efficiency choices we make now will last at least a generation.
Investment in efficiency now will pay for itself through lower energy bills. Lowering energy costs for schools means more funds for teachers, books, and scholarships. Retrofitting hospitals releases money for better patient care. And incentives for private-sector investment in commercial buildings and factories helps American businesses and consumers save money and improve our quality of life.5
Use of energy-efficient appliances in 2007 avoided global warming pollution equivalent to nearly 27 million cars.6 By similarly improving all of America's buildings, industry, and transportation -- we could reduce annual emissions equivalent to nearly 400 million cars. That's at least 2 billion fewer tons of CO2 or more than 6,000 times the weight of the Empire State Building.
7 Improving energy-efficiency would provide much needed financial relief to very low-income families. Home energy costs have increased much faster than incomes for very low-income households, rising 33 percent since 1998. Families eligible for federal home energy assistance spend 20% of their income on home energy bills – six times more than average. Improving efficiency in very low-income housing would deliver 25 percent to 40 percent energy savings in up to 25 million residential units.
8 Retrofitting buildings to improve energy efficiency will create tens of thousands of new jobs in a variety of sectors, including: Electricians, Heating/Air Conditioning Installers, Carpenters, Construction Equipment Operators, Roofers, Insulation Workers, Carpenter Helpers, Industrial Truck Drivers, Construction Managers, Building Inspectors.9
California’s energy efficiency program has saved the equivalent of the energy required to power 3.8 million homes – and avoided the need to build 24 power plants.10
References
1.Annual Energy Outlook 2008, EIA
2.Partnerships for Home Energy Efficiency http://www.energystar.gov/ia/home_improvement/PHEE_Report_final.pdf.
3.Department of Energy, http://www.eia.doe.gov/kids/classactivities/energyarticles.html#energyvampires
4.World Resources Institute, http://www.wri.org/chart/us-greenhouse-gas-emissions-flow-chart; US Department of Energy http://buildingsdatabook.eren.doe.gov/?id=view_book&c=1
1.CAP/PERI. “Green Recovery Report.” September 2008.
2.DOE Energy Star. http://www.energystar.gov/index.cfm?c=about.ab_index
6.McKinsey & Company. “Reducing U.S. Greenhouse Gas Emissions: How Much at What Cost?” 2007.
7.Enterprise Community Partners. “Bringing Home the Benefit of Energy Efficiency to Low-Income Households: The Case for a National Commitment.” 2008.
8.Center for American Progress. “Green Recovery.” September 2008.
9.California Public Utilities Commission. “Energy Efficiency California’s Highest Priority Resource.” 2006
The Problem: Millions of dollars and enormous amounts of energy are wasted each year simply because our homes and businesses aren’t as energy-efficient as they could be. Meanwhile, our demand for electricity is expected to grow by over 25% in the next two decades.1
The Solution: To make the most out of the energy we currently produce, America needs a national efficiency upgrade. Make new buildings more efficient, upgrade old buildings to save energy, and update our appliances and equipment to use less energy and perform the same or more functions than they do now.
The Benefits: Energy efficiency is where the greatest and most immediate gains can be made. Household and commercial building efficiency can increase by 30% with existing technologies – an upgrade that will save the typical homeowner $450 dollars a year on utility bills.2 Improving devices that use power in “stand-by” mode alone would save consumers $3 billion per year.3 These improvements will drive economic growth. Many efficiency upgrades will pay for themselves in just a year or two. The result will be more comfortable and valuable homes and buildings, lower utility bills, and tens of thousands of new jobs as we retrofit existing buildings to be more efficient and manufacture more American products that use less energy.
How We Get There
Implement government policies and programs that quickly improve efficiency in all sectors of our economy. There are clear examples of the enormous financial and technical benefits of investing in efficiency. What’s needed now is a systematic approach to achieve such savings across the board, so that ALL businesses and homeowners can start realizing savings. This should be a massive mobilization that will involve utilities and their regulators; equipment and appliance manufacturers and installers; and homeowners, business operators and landlords across the nation. Lights, air conditioning, heaters, appliances, computers, electronics, water heaters, motors, fans – each of these technology categories can perform its function and consume 20%-70% less energy (and much more, in some cases). Plus, with every successive generation of new products, more savings can be achieved. It's about an ongoing economy-wide effort to make every home and every building – along with every item inside those homes and buildings – more efficient.
Elements to include in a National Efficiency Upgrade:
Home and building upgrades: Neighborhood by neighborhood, town by town. All buildings eligible for an efficiency upgrade can immediately save energy and lower utility bills.
New building standards: National efficiency standards for new homes and commercial buildings so people pay less to keep warmer in the winter and cooler in the summer.
Updated appliance and equipment standards: Revisit our national standards and Energy Star program to ensure that everything people buy is more efficient.
Regulatory reforms: Efficiency targets or other regulatory schemes so utilities have an incentive to sell less electricity, rather than more.
Commercial and industrial programs: Incentive programs that encourage businesses of all sizes to become more efficient and productive.
Retrofit and replacement programs: Incentives to scrap inefficient appliances like old refrigerators or industrial motors that waste energy and money and replace them with the most efficient machinery.
Owner-renter incentives: Policies that align the interests of owners and renters, so both benefit from the lower utility bills.
Buyer-seller incentives: Policies to ensure that homes are upgraded when they change hands, so they become more efficient through energy inspections, efficiency ratings, or other programs.
Universal installation of existing technologies: Greater access to tools and technologies, like smart meters and programmable thermostats, which allow for better control of energy use.
Join us: "I want to Repower America with 100% clean electricity within 10 years."
Signed,
Did you know?
In the United States, buildings are responsible for approximately 30% of greenhouse gas emissions and 72% of all electricity use. By making simple changes, like using the proper amount of insulation and the best windows, we can significantly save the energy it takes to heat, cool, light, and otherwise provide power to buildings. And, with buildings lasting for 40-50 years or more, efficiency choices we make now will last at least a generation.
Investment in efficiency now will pay for itself through lower energy bills. Lowering energy costs for schools means more funds for teachers, books, and scholarships. Retrofitting hospitals releases money for better patient care. And incentives for private-sector investment in commercial buildings and factories helps American businesses and consumers save money and improve our quality of life.5
Use of energy-efficient appliances in 2007 avoided global warming pollution equivalent to nearly 27 million cars.6 By similarly improving all of America's buildings, industry, and transportation -- we could reduce annual emissions equivalent to nearly 400 million cars. That's at least 2 billion fewer tons of CO2 or more than 6,000 times the weight of the Empire State Building.
7 Improving energy-efficiency would provide much needed financial relief to very low-income families. Home energy costs have increased much faster than incomes for very low-income households, rising 33 percent since 1998. Families eligible for federal home energy assistance spend 20% of their income on home energy bills – six times more than average. Improving efficiency in very low-income housing would deliver 25 percent to 40 percent energy savings in up to 25 million residential units.
8 Retrofitting buildings to improve energy efficiency will create tens of thousands of new jobs in a variety of sectors, including: Electricians, Heating/Air Conditioning Installers, Carpenters, Construction Equipment Operators, Roofers, Insulation Workers, Carpenter Helpers, Industrial Truck Drivers, Construction Managers, Building Inspectors.9
California’s energy efficiency program has saved the equivalent of the energy required to power 3.8 million homes – and avoided the need to build 24 power plants.10
References
1.Annual Energy Outlook 2008, EIA
2.Partnerships for Home Energy Efficiency http://www.energystar.gov/ia/home_improvement/PHEE_Report_final.pdf.
3.Department of Energy, http://www.eia.doe.gov/kids/classactivities/energyarticles.html#energyvampires
4.World Resources Institute, http://www.wri.org/chart/us-greenhouse-gas-emissions-flow-chart; US Department of Energy http://buildingsdatabook.eren.doe.gov/?id=view_book&c=1
1.CAP/PERI. “Green Recovery Report.” September 2008.
2.DOE Energy Star. http://www.energystar.gov/index.cfm?c=about.ab_index
6.McKinsey & Company. “Reducing U.S. Greenhouse Gas Emissions: How Much at What Cost?” 2007.
7.Enterprise Community Partners. “Bringing Home the Benefit of Energy Efficiency to Low-Income Households: The Case for a National Commitment.” 2008.
8.Center for American Progress. “Green Recovery.” September 2008.
9.California Public Utilities Commission. “Energy Efficiency California’s Highest Priority Resource.” 2006
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