Future Energy

A Smart Grid for a Green Future

Source: Treehugger.com

The Economist has provided a good description of the Smart Grid and why it is so important to a sustainable energy future in its current issue (see Building the Smart Grid, June 4th).

AROUND the world billions of dollars are being invested in clean-energy technologies of one sort or another, from solar arrays and wind turbines to electric cars. But there is a problem lurking in the power grid that links them together. Green sources of power tend to be distributed and intermittent, which makes them difficult to integrate into the existing grid. And when it comes to electric cars, a study by America’s Pacific Northwest National Laboratory (PNNL) found that there is already enough generating capacity to replace as much as 73% of America’s conventional fleet with electric vehicles—but only if the charging of those vehicles is carefully managed. In order to accommodate the flow of energy between new sources of supply and new forms of demand, the world’s electrical grids are going to have to become a lot smarter.

Even though the demands being placed on national electricity grids are changing rapidly, the grids themselves have changed very little since they were first developed more than a century ago. The first grids were built as one-way streets, consisting of power stations at one end supplying power when needed to customers at the other end. That approach worked well for many years, and helped drive the growth of industrial nations by making electricity ubiquitous, but it is now showing its age.

The U.S. administration certainly appears to listening to the need to move towards a smarter grid.  In the Christian Science Monitor's bright green blog, Mark Clayton profiles Jon Wellinghoff, Chair of the Federal Energy Regulatory Commission (see Jon Wellinghoff, Obama's energy futurist, June 8th).

In Wellinghoff’s vision of the future, where the cost of carbon dioxide emissions is added to the price of coal-fired power plants and natural-gas turbines, it may be less expensive for consumers to set their appliances to avoid buying power at peak times. Or they may choose to buy power from a collection of microturbines, fuel cell, wind, solar, biomass, and ocean power systems.

“We’re going to see more distributed generation – and we’re already starting to see that happen,” Wellinghoff says. “Not only renewable generation like photovoltaic [panels] that people put on their homes and businesses, but also fossil-fuel systems like combined heat and power,” called cogeneration units.

To coordinate and harmonize this fluctuating phalanx of power sources, customers will need to know and be able to respond to the price of power, Wellinghoff says. They will also need a new generation of appliances that switch off automatically to balance power supply and demand peaks.

And so do the U.S. utilities.  In Green News, CNET's environment blog, Martin LaMonica covers announcements by Duke Energy and ComEd of their chosen Smart Grid suppliers (see Cisco, Silver Spring Networks land smart-grid deals, June 9th).

Duke said that it has chosen Cisco to supply an array of equipment for a planned smart grid program estimated at $1 billion over the next few years. Cisco, which unveiled its smart-grid initiative last month, is expected to supply in-home energy monitors as well as networking hardware for Duke's substations, the utility said.

North Carolina-based Duke aims to provide a digital upgrade to its 11 million customers in the five states it operates.

"Replacing our analog electric grid with advanced digital technology to create a 21st century electricity delivery system largely involves data, networks, and communications--all of it Cisco's expertise," Todd Arnold, senior vice president for smart grid and customer systems at Duke Energy, said in a statement..........

Chicago-based ComEd on Tuesday announced its recommended providers, including General Electric for smart meters and Silver Spring Networks, which provides wireless communications and software.

If approved, the smart grid program would bring real-time information on electricity usage and rates to consumers by installing 141,000 two-way meters in 11 Chicago suburbs.........

Seven-year-old Silver Spring Networks has emerged as one of the most successful providers, having secured deals with a handful of utilities, including Florida Power & Light.

Cisco, meanwhile, is making a concerted push around energy efficiency and grid modernization, developing a full line of communications products for utilities, consumers, and building managers.

So the question I have now is where are the Canadian utilities and technology suppliers?

Giving Energy Efficieny the Respect it Deserves

Source: McKinsey & Co.

"Energy efficiency is almost a no brainer in policy terms." 

(Jack Mintz, writing in the Globe and Mail May 27th.)

Jack may get the quote, but McKinsey and Co. have to get the credit for demonstrating why this is so.  McKinsey released its first cost curve in 2007, demonstrating why energy efficiency was both the most important option for curbing the growth of global emissions and the most cost effective.  The curve was based on research the firm had conducted in concert with many of its clients.

Since 2007, McKinsey has continued to refine and extend this work, culminating in the revised cost curve released earlier this year.  Along the way they have managed to construct a whole portfolio of sector and country specific curves and spawned a consulting tool that is widely used as a starting point for those who would advise individual companies on how to approach the as yet undefined beast that is climate change.

Essentially, McKinsey points out that when considered in concert with all of the available options for reducing greenhouse gases, energy efficiency for residential and comercial buildings, road transport and industrial processes is the most cost effective option available, often providing a positive payback.  And the emissions reduction benefits of improved energy productivity aren't small.  Out of 38 Giga tonnes of CO₂ equivalent (GtCO_2e) emission reductions estimated to be available with existing or likely to be realized technologies, 14 GtCO_2e would come as a result of energy efficiency investments.

Or put another way ....

"If all energy efficiency opportunities identified in our research were captured, annual growth in global electricity demand between 2005 and 2030 would be reduced from 2.7 percent per year in the BAU case to about 1.5 percent."

   Source: McKinsey, 2009

My goal here isn't to sing McKinsey's praises.  They're far more able to do so then I'll ever be.  No, I want to properly introduce a series of posts, articles and materials that I am increasingly coming across and will intermittantly link to here, all highlighting specific energy efficiency investments and achievements.

I'll start with a post on PG&E's Next 100 blog.  Writing June 2nd, Jonathan Marshall talks about PG&E's deployment of Smart Meters:

"One big improvement, in addition to giving customers timely and detailed information on their energy use, will be expanded availability of voluntary pricing programs that can save them money and help the environment. Such pricing programs reward customers for cutting back on energy use a few hours each year during periods of "critical peak" demand, typically on scalding days when air conditioners are running flat out."

Allowing consumers to understand and manage their energy demand is certainly a first step towards improved residential energy efficiency.

More to come.

Is Carbon a Real Commodity Now?

Source: Peter Nicholson, The Australian

Back in the day, I can remember arranging a trade in carbon emission reductions generated by company I was working for at the time, a Canadian natural gas utility, and thinking we were definitely riding the bleeding edge.  The trade was for 5,000 tonnes of CO₂ per year at $5.00 per tonne and it took a whole consortium of Japanese companies to purchase the "credits".

That was then and this is now.

Last week, the World Bank issued its annual State and Trends of the Carbon Market Report.  Looking back at 2008, the World Bank found that the market (or I should say markets because there a range of different markets in various levels of disconnect) had doubled in value over the previous year reaching a total of $,811 million metric tonnes of CO_2e worth an estimated US$126 billion.

While Kyoto based markets, including CDM and JI declined in value and activity over 2007, secondary trading in Certified Emission Reductions from CDM and JI projects increased by 382%.  Trailing behind, trading in EU Emissions Trading Scheme Allowances grew by only 87% and Voluntary Emissions Reduction markets increased by only 51%.

The World Bank has issued this report since at least 2005 ( or at least that is when I first became aware of it).  Looking at 2004, the 2005 report estimated the size of the carbon markets at 163 million tonnes CO_2e.  In four short years, the market has grown almost 30 times, mostly as a result of the initiative shown by Europe in developing their Emissions Trading Scheme.

Imagine the growth if the U.S., Canada and Australia are able to overcome their foot-dragging and begin to act on the growing concern for climate change?

Figuring Out Smart Grid

Google's PowerMeter

Source: Google.org

I've been spending some time lately reading about the "smart grid" and trying to understand what it means.  The short answer seems to be that the smart grid is whatever you want it to be, with companies ranging from General Electric to Google each staking their claim to some part of this marriage of electricity transmission and IT.  I intend to write a couple of posts about it and the companies involved.  In the meantime, you might be interested in Google's recent announcement of home energy software for the delivery end of the grid.

"Google PowerMeter receives information from utility smart meters and energy management devices and provides customers with access to their home electricity consumption right on their personal iGoogle homepage. We are currently testing Google PowerMeter with a number of utilities and plan to expand our rollout later this year."

For more information, the NYTimes Green Inc. blog tells the story better than I can.

Eco-Driving Revisited

Source: Dot Earth Blog (NYTimes)

I suggested yesterday that the Obama Administration's announcement of new emissions limits and a single national fuel efficiency standard for U.S. vehicles bbeginning in 2016 was arguably the most significant environmental step taken by a U.S. government in almost 30 years.  By comparing the proposed standard with European vehicle fuel efficiency standards, Andrew Revkin presents it in a different and negative light.  As illustrated in the graph above, in 2016 the U.S. will only be matching current European fleet efficiency levels.  Not so much of an achievement after all.    

Continuing on my re-visit of yesterday's post, I combined the various eco-driving tips lists to come up with what seems to be the most popular (and practical) suggestions.  My (not very original) top five list includes:

• avoid jack-rabbit starts and braking;

• avoid idling, switching off your engine for short (and long) stops;

• maintain recommended tire pressure;

• slow down and keep your highway speed to 55 mph (90 kph);

• maintain your vehicle and its engine.

I would have to say that Ford's 10 Eco-Driving Tips for Everyone is the best of the three lists I provided yesterday.

 

 

Obama brings on eco-driving?

Source: Sustainable Energy Europe

Today, the U.S. took perhaps the most significant environmental step by a federal government since George Bush the elder ushered in the Acid Rain program for U.S. utilities with amendments to the Clean Air Act in 1990.  President Obama's Administration announced that it will put in place regulations that will require vehicles sold in the U.S. to meet stringent greenhouse gas emissions limits and a new federal standard for fuel efficeincy by 2016. 

For passenger vehicles, the standard will require average fuel efficiency of at least 35.5 miles per gallon (or 6.62 litres per 100 kilometres) but is expected to increase average auto costs by US$600 per vehicle over what already existing standards would require. 

By putting in place a single national standard for fuel efficiency, the President has met the demands of the auto makers.  By setting the standard at a level sought by California, he has brought that state and thirteen others that had wanted to implement California's proposed standard, on board.  He has provided certainty of direction for auto makers who surely knew that more efficient vehicles would be required and he has dragged the issue out of the courts and into the realm of political negotiation where it properly belongs.

Not bad for a day's work.

Looking at the news stories reporting on this morning I was reminded of the Eco-Driving movement that has emerged in recent years.  Is the U.S. on the path to becoming a nation of eco-drivers? 

If so there is a host of information on how drivers can significantly improve their fuel efficiency every day.

First of all, apparently May is eco-driving month, at least according to ecoDrivingUSA and the Auto Alliance, an industry group of 11 auto manufacturers.  ecoDrivingUSA provides Quick Tips and a detailed brochure on its Education page.

Ford tested drivers who had taken eco-driving training and found that on average they could improve their fuel economy by 24% simply by changing the way that they drove.  Ford provides 10 eco-driving tips that anyone can follow.

And finally (among the sites I am aware of - I am sure there are many others), Ecodriving, a European organization, offers workshops and simulations to teach eco-driving skills.  They also provide 17 tips for drivers.

But if you get rerally enthusiastic about improving your car's fuel efficiency, perhaps you can qualify as a hypermiler.   An article in Mother Jones explains (see This Guy can Get 59 MPG in a Plain Old Accord.  Beat That, Punk.  January/February 2007)

Dirty Brown Grease

In a world of peak oil, growing population and even faster growing demand for energy, it seems self-evident to me that we will cast in increasingly wide net in the search for new sources of energy.  If that is indeed the case, we'll see much more variety in our future fuel sources, with many niche technologies and materials emerging in the years to come.

Not too long ago I cam across a small company that epitomizes this shift to me.  Originally called Philadelphia Fry-o-Diesel, the company recently changed its name to BlackGold Biofuels, although, they remain in the same business - converting grease to biodiesel.  And not just any grease, BlackGold specializes in converting restaurant trap grease.  By their own admission, trap grease is "gross, it smells terrible ... an undesireable material". 

Source: BlackGold Biofuels

Captured in traps in commercial kitchens, the grease must be regularly pumped out for disposal before it can escape into sewer lines and clog them.  BlackGold appears to have started out with an interest in manufacturing biodeisel and has evolved to supplying its self-developed technogy to others across the U.S. who want to be in the business of converting a polluting waste into a useful energy product.

Source: BlackGold Biofuels

Sustainability doesn't get much better than this.

BlackGold appears to be a co-op based company and they are actively trying to license their technology but they do have some competition.  CNET ran a story in February about a venture sponsored by the City of San Francisco.  I've also been told that there is a company manufacturing biodiesel from trap grease here in Vancouver (Canada).  However, I haven't been able to find any information on that.

I'm Back!

Its been quite a while since I last posted to this blog - five months in fact.  All I can plead is workload and family responsibilities.  Whatever the reasons, I'm going to once again take a stab at regularly posting on energy, sustainability and occasionally, investing in sustainable energy.

When I started this blog, I was thinking a lot about investing in clean, green, sustainable, etc. energy.  Oil prices were high (WTI hit US$82.51/bbl the day of my first post) and heading higher.  Clean energy funds and renewable energy start-ups were being announced daily and there was a "sky is falling" tenor to the press commentaries on energy.

Energy prices are lower now (today, WTI is sitting at US$58.81/bbl) and many of the start-ups that were the focus of so much attention 18 months ago have slipped beneath the waves - likely never to be seen again.  What remains is a pressing need for sustainable energy to address mounting evidence of climate change and what will be the inevitable return to concerns for peak oil.

With this iteration of my blog writing efforts, I don't expect to write as much about investing in energy - there isn't as much to talk about in that regard these days and my interests have shifted a bit.  What I will try to focus on more is interesting and/or small scale technologies as well as the effects of our addiction to oil and gas and some of the solutions that appear to be emerging.  Needless to say, I will also be looking at the growing momentum for climate legislation and regulation in North America. 

Perhaps another way if putting this would be to highlight a quote from the Wall Street Journal's Environmental Capital blog.  Writing today about a CERI report concerning Canada's oil sands (see Shifting Sands, May 13), Ben Casselman concludes:

"a basic truth the bears repeating: putting a price on carbon has the potential for vast changes in the energy landscape that will take years, if not decades, to manifest."

It would be nice to play a small part in exploring those vast changes.

Green Muscle Cars

A year ago, I put together a post about Fast Company's article on a Wichita, Kansas "professional car hacker" named Jonathan Goodwin.  Mr. Goodwin is back in the news in a pair of videos at CNET's Green Tech blog (see Muscle Cars Meet Green Technology, December 10th).

I'm not sure that converting F-450's, Hummers and Lincoln Continental's to hydrogen injected hybrids is a sustainable solution to reducing auto emissions but its interesting.

You can go directly to the videos at CBS using the following links:

• http://www.cbsnews.com/video/watch/?id=4659107n; and
• http://www.cbsnews.com/video/watch/?id=4659212n.

Tropical Deforestation and the Carbon Markets

   

Rhett Butler, writing at Yale's Environment 360 last week, talked about using the finacial markets to help preserve tropical rainforests (see As Rain Forests Disappear, A Market Solution Emerges, December 11th). 

"The key question today is whether new models of conservation — including an increasingly popular, market-based program known as REDD — will be able to reverse the steady loss of tropical forests, not only in the Amazon, but also in Indonesia, Borneo, and Africa’s Congo basin, where virgin woodlands continue to be razed at an unprecedented rate."

Butler highlights a number of examples in Sumatra, Borneo, Guyana and involving financial players such as Merrill Lynch.  In each case the premise is that REDD (reducing emmissions from deforestation and degredation) deals can make financial markets pay for the environmental services offered by healthy forests, including preservation of biodiversity, water supply and carbon sequestration.

The biggest REDD deal is undoubtedly the sustainable development fund announced by Brazil's president, Lula da Silva on December 1st (see Brazil Pledges to Cut Amazon Destruction in Half, Reuters, December 1st).  Coinciding with the opening of the Poznan climate change discussions, President da Silva committed Brazil to reducing deforestation from 19,533 square kilomtres per year to 5,850 square kilometres by 2014.

Brazil is proposing to fund the change with a US $21 billion fund to be raised from developed countries, companies and others (Norway has already committed US $1 billion).  A review of the plan at mongabay.com points to some questions: How will Brazil actually make significant changes in land use - the commitment remains vague, with money to be spent on "sustainable development and protected areas".  And most of the changes are not scheduled to occur until after President da Silva's term in office ends in 2011.

Despite the negative view of forest based carbon sequestration among many players in todays carbon markets (e.g. Vancity: "we decided to use only offsets from projects that directly reduce energy consumption and/or create some kind of renewable energy"),  the IPCC reports that more than 20% of current man-made emissions originate as a result of deforestation.  If 20% of the problem relates to deforestation,  approaches like REDD, that apply market based tools to slowing the pace of forest destruction, are essential to addressing the climate change problem.  There are limits to how many protected areas can be created.