Energy efficiency a key theme at WEC 2010

One of the key themes emerging from keynote speakers and roundtable discussion alike at the World Energy Congress is the need to improve energy efficiency. A roundtable dedicated to that topic provided the following facts and highlights:

Improvements in energy productivity have lagged behind material and labor productivity gains in the past 50 years. Energy efficiency offers the most affordable means of delivering energy.

But, energy efficiency:

• requires outlay
• has low mind share
• is fragmented across many devices
• is difficult to measure

Some energy efficiency barriers:

• Structural
• Behavioral (lack of awareness, customer and habit)
• Availability (capital availability)

George Arnold, the National Coordinator for Smart Grid Interoperability at at the US National Institute of Standards and Technology (NIST), spoke about the electrical infrastructure of the United States and what needs to be done to lead to a “smarter” grid in which energy would be used more efficiently. The US has the most extensive infrastructure in the world, he said, with 3,100 electric utility companies, 10,000 power plants, $247 billion in annual revenue and $800 billion in assets. But because this infrastructure has been built over a period of some 90+ years, it has some defining characteristics:

• One-way flow of electricity
• Centralized, bulk generation
• Responsible for 40 percent of human caused CO₂ production
• Limited automation and situational awareness
• Lack of customer-side data to manage and reduce energy use
• Less automation than the telephone networks of 30 years ago
• Customers not usually thought of as being “in the grid”

There are some smart grid goals that NIST has defined:

• Enable customers to manage and reduce energy use
• Enable increased use of renewable resources
• Improve efficiency, reliability, and security
• Facilitate infrastructure for electric vehicles, especially fast-charging and load balancing

What will smart grid look like?

• High use of renewables, 20-35 percent by 2020
• Distributed generation and microgrids
• Net metering - selling local power into the grid
• Distributed storage
• Smart meters - real time usage data
• Dynamic pricing
• Ubiquitous smart appliances
• Energy management in houses as well as communications and independent facilities linked to the grid.

In addition to Arnold, several other members of the roundtable offered insights into energy efficiency. For businesses, energy efficiency across the value chain a good measure of how well-managed a business is. Energy efficiency is not new, but it is underutilized. From 1970 to 2008, energy efficiency gains met 75 percent of new energy demands in the United States. A quote from Steven Chu, US Secretary of Energy, highlights that a lot more can be done: "Most dramatic reductions in greenhouse gas emissions will come from energy efficiency and conservation."

There are two ways of improving energy efficiency: passive (devices, installation) and active (optimizing usage and installation of devices, and monitoring and maintenance). To achieve true energy efficiency requires long-term engagement and a process. It is not just about the installation of new devices; it is also necessary to audit, measure, and manage. Another way to improve efficiency and reduce costs is to make energy visible, that is, to compare energy costs by creating energy dashboards so that consumers and companies can be aware of their energy outlay.

There are several barriers to making energy efficiency more visible, but the consensus of the panel was that we need people with the right skills, knowledge, management and especially leadership.