March 11, 2010

Blog

Did energy cause this mess?

By Elisa Wood 

March 11, 2010 

Much of today’s economic debate boils down to these questions: How did we get in this mess?  And how do we get out? Two recent studies implicate the energy industry as a cause and a solution. 

While our economic tumble is clearly linked to an inflated housing market and overly-hedged financial products, we cannot discount pressure from high energy prices.  

In fact, 10 out of the 11 U.S. recessions since World War II (including this one) occurred after oil price spikes, says “Reassessing the Oil Security Premium,” a discussion paper by Resources for the Future. http://www.rff.org/News/Features/Pages/Reassessing-the-Oil-Security-Premium.aspx 

The Washington, D.C. think tank looks at price spikes caused by oil supply disruption and the economic reverberation. In particular, the paper analyzes oil externalities – the spillover effect of high oil prices onto those who are not players in the energy market. 

It works like this. If I pay a lot of money for oil, not only do I take a financial hit, but so do my neighbors down the street, even if they buy no oil. This is because high oil prices lead to losses in gross domestic product and wealth transfers to foreign oil producers. In other words, my pricey oil purchase harmed the economy and therefore harmed my neighbors. 

The report attempts to quantify the costs to society to keep oil flowing our way during worldwide supply disruptions. It calls this cost an “oil security premium.” The report estimates costs of $4.45 per barrel of oil consumed in 2008, rising to $6.82 in 2030 for imported oil. We’re damaged less by disruption in domestic oil supply, which carries a security premium of $2.28 per barrel in 2008 to $4.45 in 2030.  

If the energy sector contributed to today’s economic slowdown, can it help lift us out?

We can improve our energy security somewhat by displacing imported oil with domestic oil. But an even better way to avert the pain is through energy efficiency, according to the paper: “Our estimates suggest that energy security is more greatly enhanced by policies to reduce overall oil consumption than by those that substitute domestic production for imports.” 

Think about it. We’d be spared a couple of dollars per barrel by buying domestic instead of imported oil. But we’d be spared more than double that amount if we could forego the barrel completely. 

Another analysis, released this week by the American Council for an Energy Efficient Economy, gets even more to the point about how efficiency can help our society financially. The advocacy organization looks at how many jobs energy efficiency programs create. 

More specifically, ACEEE calculated the likely job creation from three programs under consideration before Congress. The programs include a residential retrofit program, also known as Home Star or “Cash for Caulkers,” and the commercial retrofit program, Building Star. Both programs would offer rebates for energy efficiency installations and improvements. The third program would offer $4 billion in energy efficiency grants for manufacturers. http://www.aceee.org/press/030810.htm. 

ACEEE found that three efficiency programs could add 333,000 jobs in 2010 and 184,000 in 2011. 

 Steven Nadel, ACEEE executive director, points out that the job creation points out that these job figures “are probably conservative.” There is a bigger picture to consider: “We did not examine the impact of lower energy consumption on energy prices. When energy prices go down, money is freed up for spending in more labor-intensive parts of the economy.”

No sophisticated math here.  These reports indicate that consumption carries a price tag, particularly when energy supply is low. High energy costs add to economic destabilization.  Reducing energy costs – by reducing consumption – frees up money, which can help right the economy again.

Debate about the cause of the recession has focused heavily on problems within the financial arena. Maybe we’ve been too quick, this time around, to let the energy sector off the hook?

To comment on the blog, go to

http://energyefficiencymarkets.wordpress.com/ or

http://energyefficiencymarkets.blogspot.com/ 

Podcast

Challenges of getting EE funding for startups part 2

Lisa Cohn of Energy Efficiency Markets continues her interview with Dan Pauley, principal, American Renewable Energies, about why it's tough for small- to mid-sized businesses to get startup funding in EE.

To listen and subscribe to Energy Efficiency Markets Podcast, go to

http://www.realwriters.net/rew/rtlnk.htm

Coming Soon: Energy Efficiency Incentives for Businesses 2010

Volume 1: Eastern States

By Elisa Wood and Lisa Cohn

For information about pre-ordering the guide at reduced rates, please e-mail us at realenergywriters@comcast.net

News

Patrick-Murray Administration announces April 22 launch of home appliance rebate program

http://www.mass.gov/?pageID=eoeeapressrelease&L=1&L0=Home&sid=Eoeea&b=pressrelease&f=100305_pr_arra_rebates&csid=Eoeea

Who wins in the Home Star Program? GridPoint, big box retailers

http://www.greentechmedia.com/articles/read/who-wins-in-homestar-program-gridpoint-big-box-retailers

Energy efficiency proposals could create 333,000 jobs in 2010.

http://www.aceee.org/press/030810.htm

Consumers reject lower energy use as the answer to reducing reliance on fossil fuels and energy imports

http://www.marketwatch.com/story/consumers-reject-lower-energy-use-as-the-answer-to-reducing-reliance-on-fossil-fuels-and-energy-imports-2010-03-09?reflink=MW_news_stmp

Democrats to turn spotlight on energy efficiency programs

http://www.nytimes.com/gwire/2010/03/08/08greenwire-democrats-to-turn-spotlight-on-energy-efficien-54735.html

Cisco exec touts new core router's 100G Ethernet, energy efficiency

http://www.networkworld.com/news/2010/030910-cisco-crs-3-router.html

Business opportunities & requests for proposals

Ameresco

Ameresco invites qualified engineering design firms to submit firm, fixed-price proposals for engineering design services for various HVAC improvements.

Proposals are due by March 22.

Questions should be directed to Michael Warchol, (508) 661 2262, NCCdeRFP@ameresco.com. 

For more information go to http://www.ameresco.com/files/Ameresco%20NCC%20%20II%20Eng%20Design%20RFPFINAL022310.pdf 

City of Livonia Housing Commission

The City of Livonia seeks a qualified licensed engineer to conduct an energy audit on municipal buildings, prepare drawings and specifications for energy saving improvements to municipal buildings. The engineer will establish baseline utility data, monitor utility costs and assist the city with energy optimization programs through DTE Energy and Consumers Energy. The engineer will also be required to conduct energy audits of local businesses in the Plymouth Road Development Authority corridor and assist with establishing a revolving loan program to improve energy efficiency.

Proposals are due March 16.

Questions should be directed to the Livonia Housing Commission, (734) 421- 6450 ext. 102, or Harrison Gilbert at hgilbert8@gmail.com.

For more information go to http://www.ci.livonia.mi.us/LinkClick.aspx?fileticket=o9TtOFSrMdE%3D&tabid=1679

The Department of Energy

The DOE and other federal agencies are seeking bids for the Energy Efficient Building Systems Regional Innovation Cluster Initiative.

Proposals are due May 6.

Questions should be directed to e-ric@eda.doc.gov.

For more information go to http://www.energy.gov/hubs/documents/ERIC_FOA.pdf

The New York State Energy Research and Development Authority

NYSERDA offers funds for the installation of energy efficiency, renewable energy, and clean fleet projects. Bids are welcome from municipal governments, public K-12 schools, public universities or colleges, public and private hospitals, and not-for-profits.

Proposals are due by April 7.

Program questions should be directed to Ben Fox, 866-697-3732, ext. 3444, bf2@nyserda.org. Contractual questions should be directed to Venice Forbes, 866-697-3732, ext. 3507, vwf@nyserda.org. 

For more information go to http://www.nyserda.org/funding/1613rfp.asp 

Department of Energy

The Advanced Research Projects Agency seeks research and development on building cooling. The goal is to increase energy efficiency and reduce greenhouse gas emissions. The request focuses on (1) cooling systems that use refrigerants with low global warming potential;  (2) energy efficient air conditioning (systems for warm and humid climates with an increased coefficient of performance; and 3) vapor compression air conditioning systems for hot climates for re-circulating air loads with an increased COP.  

Intent to submit proposals is due April 2.

Questions should be directed to ARPA-E-CO@hq.doe.gov 

For more information go to

https://arpa-e-foa.energy.gov/FoaDetailsView.aspx?foaId=b5eb4b5b-34e9-49f8-8640-4d62fd90e9fe

Public Service Enterprise Group

PSEG seeks proposals for emerging energy-saving technologies that have the potential to come to market quickly. Nearly $8 million is available in this solicitation for grants that could pay the total cost of establishing a demonstration project. The state's leading energy technology organizations, including universities and small businesses, are encouraged to submit proposals.

Letters of intent are due April 16.

Questions should be directed to energy_grants@njssi.org or directed to the Technology Demonstration Program office, (732) 932-5475 ext. 868.

For more information go to http://policy.rutgers.edu/njssi/energy.asp. 

Miami Job Corps

The U.S. Department of Labor seeks small businesses to design and install two solar hot water systems at the Miami Job Corps Center in Miami Gardens, Florida.  The work must comply with requirements of Leadership in Energy and Environmental Design (LEED) or similar sustainability goals. The estimated budget is $100,000 to $500,000. 

Proposal is due by March 18.

Questions should be directed to Frank Lalumiere, (202) 401-8275

For more information go to

https://www.fbo.gov/index?s=opportunity&mode=form&id=31cb8085abdfdf89cc3bcaf9a0a2914c&tab=core&_cview=0

The Pennsylvania Public Utility Commission

The PUC seeks the services of an alternative energy credits administrator to assist the commission in implementing the Alternative Energy Portfolio Standards Act. The winner will verify utility and generation suppliers, calculate requirements on a quarterly basis, review applications for alternative energy system status, and respond to inquiries about credits.

Proposals are due by March 29.

Questions should be directed to the issuing officer, Wayne Williams at (717) 787-2139, waywilliam@state.pa.us.

For more information go to http://www.puc.state.pa.us/general/press_releases/press_releases.aspx?ShowPR=2457

The Vermont Clean Energy Fund

The fund seeks projects that promote cost-effective and environmentally sustainable power, thermal or geothermal resources, including combined heat and power.

Proposals are due by March 12.

Questions should be directed to Andrew Perchlik, (802) 828-4017, andrew.perchlik@state.vt.us

For more information go to http://publicservice.vermont.gov/energy/ee_files/cedf/Febuary2010CleanEnergyDevelopmentFundRFP_final.pdf

California Energy Commission

The CEC requests proposals for the Energy Innovations Small Grant Transportation Program that will support research on vehicle energy efficiency and alternative fuels. The research will provide tools and methods to produce data and understanding that will help decision-makers.

Proposals are due March 30.

Questions should be directed to (619) 594-1049, eisg@projects.sdsu.edu.

For more information go to 

http://www.energy.ca.gov/contracts/smallgrant/10-01T_electricity/Application_Manual_10-01T_electricity.pdf

National Grid expects to generate jobs for ESCOs

National Grid expects to rely heavily on energy efficiency service companies to provide work under a new program proposed in Massachusetts that expands the utility efficiency offerings three-fold between 2010 and 2012.  The utility says it plans to use competitive bidding to identify qualified energy efficiency service companies that will provide much of the work. The proposal is under review before the Massachusetts Department of Public Utilities. The utility wants to expand spending on electric efficiency from $85 million in 2009, to $570 million between 2010 and 2012, and natural gas efficiency from $20 million in 2009 to nearly $200 million. Details are available at: https://www.nationalgridus.com/masselectric/a3-1_news2.asp?document=4594

The Department of Energy

The DOE is offering $210 million in 2010 weatherization funds to state governments and Native American tribes.  States and tribes use the funds to weatherize low-income households.  The DOE will make 58 awards, each no higher than $15 million and no lower than $79,000. 

Proposals are due August 1.

Questions should be directed to Amanda Lopez, (304) 285-4220, amanda.lopez@netl.doe.gov.

For more information go to

http://www07.grants.gov/search/search.do?&mode=VIEW&flag2006=false&oppId=50891. 

The New York State Energy Research and Development Authority 

NYSERDA seeks partners to deliver energy efficiency training programs in New York. The goal is to train workers for jobs being created as a result of the state’s energy efficiency portfolio standard.

Open enrollment, applications accepted through August 1

For Technical questions please contact: Kelli Herndon, kmh@nyserda.org.



For more information please visit http://www.nyserda.org/funding/1816pon.asp

The New York State Energy Research and Development Authority

The FlexTech Program from NYSERDA seeks customers interested in study of efficiency, process improvement, peak-load reduction, energy procurement, and peak-load curtailment plans for their facilities. The program also offers analysis of possible combined heat & power and renewable generation installations.

Applications are accepted on a first-come, first-serve basis through December 15, 2011.

For technical questions please contact Clararose Voigt or Joanna Moore, cfv@nyserda.org.

For more information go to http://www.nyserda.org/funding/1746pon.asp  

The New Jersey Economic Development Authority

Money is available for companies to site Class I renewable energy or energy efficiency product manufacturing facilities in New Jersey. New Jersey clean technology manufacturers can receive funding for project assessment and design, or project construction and operation.

Applications are now being accepted in an open, rolling process and will be reviewed on a first-come, first-serve basis.

Questions should be directed to EdisonCEMF@njeda.com, (866) 534-7789

For more information go to http://www.njeda.com/web/Aspx_pg/Templates/Npic_Text.aspx?Doc_Id=1085&menuid=1287&topid=718&levelid=6&midid=1175

Upcoming Events          

2010 IEEE PES Transmission and Distribution Conference and Exposition: April 19 - 22, New Orleans.

http://www.ieeet-d.org/

GreenNet 2010: April 29, San Francisco.

http://events.earth2tech.com/greennet/10/

The 2010 ACEEE Hot Water Forum: May 12-14, 2010. Ontario, California.

http://www.aceee.org/conf/10whforum/

The Networked Grid 2010: May 18 - 19, Palm Springs, California.

http://www.greentechmedia.com/events/live/the-networked-grid-2010/

Job Listing

Email us at realenergywriters@comcast.net to list your EE job.

Recommended Reading

US Solar Spins 360

http://www.renewableenergyworld.com/rea/news/article/2009/12/us-solar-spins-a-360

Where Are the Green Collar Jobs You Promised, Mr. President

http://pepei.pennnet.com/display_article/370851/17/ARTCL/none/none/1/Where-are-the-green-collar-jobs-you-promised,-Mr-President?/

Monitoring Geothermal Heat Pump Performance  

http://www.onsetcomp.com/resources/white_papers

Full House at Solar Power International 2009

http://www.realwriters.net/rew/spi1.pdf.pdf

Lisa Cohn’s new Energy Blog

Read and comment on Lisa Cohn's new energy blog, Cohn's Corner, for SNL Energy:

http://www.snl.com/Interactivex/article.aspx?CdId=A-10828279-10035

Check out stories we are writing on twitter.com

Podcast Suggestions?

We are open to suggestions for our popular podcast, which attracts up to 240 new subscribers a day. We are now seeking interviews with efficiency experts who can walk us through hypothetical projects and discuss efficiency changes they would recommend to clients. Contact us at realenergywriter@comcast.net.  

Editor: Reid Smith

realenergywriter@comcast.net

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