Energy Priorities

HelioVolt Partners with AGA to Manufacture BIPV

2008-05-06T14:26:45Z

HelioVolt and Architectural Glass & Aluminum Co. today announced a partnership to incorporate solar energy systems directly into standardized curtain wall products, the exterior glass facades that dominate modern urban construction.

]]> HelioVolt produces thin film solar energy products. By embedding its PV thin film into green building materials, the companies say they can make solar-enabled curtain walls that improve aesthetics, simplify installation and reduce operating costs for solar energy in new construction.

"The market for distributed solar energy is developing at breakneck speed, driven by the inherent value of being able to generate clean electricity at the same place it's being consumed," said HelioVolt CEO Dr. BJ Stanbery. He adds that his company's manufacturing process could enable next-generation smart building materials capable of powering cities of the future.

AGA is a designer, manufacturer and installer of custom curtain wall products primarily serving the Western United States.

]]> By Denis Du Bois on May 06, 2008 at Energy Priorities

Why ROI Calculators are a Formula for Failure

2008-05-02T15:04:10Z

Financial justification tools face three major challenges: Prospects don’t believe their output; facilities managers are not financially trained; and sales reps are not trusted to explain the numbers.

]]> Rebates, ITCs, projected energy costs, NPV... Finance is not a shallow subject, but most people barely get their toes wet before they drown. Just ask three CFOs to explain "return on investment." You'll soon be gasping for air, even if you thought you knew what it meant.

Corporations still are for-profit businesses. Without a business case, few sustainability projects end up getting past the "nice idea" stage.

This is as true for chiller plant controls as it is for a utility-class wind farm. A capex approver needs to be sure that a sustainability measure goes beyond saving polar bears, and is fiscally the right thing to do for their company.

Take energy efficiency as an example, performance contracts aside. Unless a C-level executive thinks about energy as a manageable P&L line item, instead of as a fixed expense, the sales rep will be going out the way they came in -- empty-handed. No business case, no deal.

Point of failure

Who prepares the business cases for your proposals? Unless you can find a way to keep your finance department out of doing it, this is a bottleneck in the buying process. Thus the popularity of ROI calculators. Sales reps who open up an ROI calculator are likely to experience a vague sense of dread. The facilities manager is skeptical of the result -- accounting isn't their profession, after all -- but they provide the numbers and nod politely.

An attempt to explain the results is likely to embarrass the sales rep -- accounting isn't their profession, either -- but they try. The prospect does more nodding, and grows more skeptical.

The marketing department, who spent plenty to have the ROI tool developed, hears neutral feedback or nothing at all. They don’t know the tool is ineffective and has fallen into disuse.

Soon, though, the tool is out of date. The state grant expires, the latest energy bill changed the depreciation rules again, or energy costs have outpaced the projections. Even a spreadsheet that is still valid is not trusted beyond a few months after it was created.

What's the formula?

In companies where I've seen ROI tools succeed, there have been common traits. First, these typically are larger companies with multiple products, so they have more than one ROI tool. One or two people with financial backgrounds are assigned to researching, building, and maintaining the tools. They take pride in their product.

Second, each tool is designed to allow the prospect and sales rep to produce a believable business case. That means believable for the customer even if it's not as favorable to the vendor. When it's readable and believable, it has a chance of showing up in the C-level decision maker's e-mail. All assumptions and constants are footnoted with credible sources, and none of them are locked. If the customer wants to reduce the power factor or increase the number of cloudy days, let them. It's their ROI.

Finally, train sales reps and give them a support line. Try as you may to make the user interface simple, it's still Excel and it's still complex. Webinars are effective at teaching sales reps how to use these tools, especially in a third-party sales channel -- and the recording of the webinar stays around for reference. Reps then need to know who to call for help whenever they get stumped in front of a prospect.

To close a business-to-business sale, you need to demonstrate the cause-and-effect relationship between investing in your product and achieving a business goal. In the C-suite, there's nothing as powerful as a good ROI tool in the hands of someone who is comfortable using it.

]]> By Denis Du Bois on May 02, 2008 at Energy Priorities

PG&E Chief’s Green Crusade (Fortune)

2008-05-02T00:00:06Z

PG&E Chairman and CEO Peter Darbee called a handful of journalists into his boardroom and talked about being a successful utility in an era when it's is less about building centralized power plants and more about tapping renewable energy and balancing supply and demand.

]]> Today, Fortune posted a story by reporter Todd Woody in its online edition, based on the PG&E press event.

Darbee talks about the potential of renewable energy, the odds of new nuclear power in California, and the utility industry's resistance to change.

"PG&E chief’s green crusade"

"While a lot of top executives talk green these days, for Darbee green has become the business model, one that represents the future of the utility industry in a carbon-constrained age."

]]> By Denis Du Bois on May 02, 2008 at Energy Priorities

China: New Great Walls - Construction for the Beijing Olympics (NG)

2008-04-30T14:34:51Z

Beijing is building up for the Olympics, spending $40 billion to impress the world -- and pushing commercial architecture to its limits. National Geographic's May 2008 special-edition issue, "China, Inside the Dragon," features dozens of articles, most of them short, all of them about China.

]]> This 13-page National Geographic feature article includes wonderful photography of the buildings under construction or recently completed for the 2008 Summer Games.

"The nest" -- Beijing 2008 Olympic Main Stadium -- is one of several bold designs under construction or recently completed. (Xin Zhu photo)

Article author Ted Fishman ("China, Inc.") says Beijing might be the largest construction zone in history. Low-cost labor allows the Chinese to build projects too expensive for their foreign architects' homelands, and in very short timeframes. Many of the bold designs are disconnected from Chinese culture, and some have displaced it.

There's the titanium dome of "the egg," the National Center for the Performing Arts, near Tiananmen Square. Then there's "the nest" of steel twigs cradling the National Stadium. The "twisted doughnut" is China Central Television Headquarters' leaning tower structure. And "the water cube" looks like a block of soap bubbles, blue by night, silver by day, dreamt of by Olympic swimmers. The article has photos of them all.

I found two other short pieces in the print issue that are worth a look, and I haven't found them on the web site. "Energy: King Coal" charts the coal power plants built in China since 1990, by size. "Resources: Hungry for Oil" illustrates the growth in China's oil imports since 1996, with the source countries graphed by millions of barrels imported.

This month marks 30 years that I've subscribed to NG. That explains all the boxes in the garage.

]]> By Denis Du Bois on April 30, 2008 at Energy Priorities

Lower Solar Cost and Higher Efficiency is "Gift from the Sun"

2008-04-22T18:16:37Z

Suniva's investors have put US $55 million of venture capital into a startup whose technology promises to achieve high efficiencies with low-cost monocrystalline silicon solar cells. Denis Du Bois interviews founder and solar pioneer Ajeet Rohatgi about the future of the PV industry and the meaning of his company's name. (podcast)

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Program Notes

Dr. Rohatgi is following 30 years of pioneering solar research with a startup of his own. His goal: cost parity with coal power from the grid. He discusses the cost targets and how Suniva could get there; why the silicon shortage worries him, but thin-film competition doesn't; India and China; and Suniva's new plant in Atlanta GA. Dr. Rohatgi tells me Suniva (pronounced sun-EVE-a) means "gift from the sun."

Transcript

Coming soon.]]> By Denis Du Bois on April 22, 2008 at Energy Priorities

It's Earth Day and Energy Priorities is Four

2008-04-22T15:02:58Z

When I started Energy Priorities on Earth Day 2004, "sustainable business" for most companies meant having enough working capital. Few people took global warming seriously. Venture capital investment in clean tech (counting everything from agriculture to water) in the previous year had barely crested a billion dollars. The 2003 blackouts were behind us; our attention was on the elections...

]]> Today, energy use and environmental impact are issues everyone takes seriously. Insurers and creditors are asking about carbon risk. Customers and investors are demanding corporate social responsibility reports. Even the candidates are green.

Grassroots grows up

In 2004 I didn't doubt that the business world needed a source of clear information about sustainable energy use. There were signs of things to come.

Waiting lists grew for the Toyota Prius. Governor Arnold Schwarzenegger got great media mileage from his "green Hummer." Consumers were waking up to a new day for environmentalism.

It was just a matter of time before they started putting pressure on brands to align with the new world view.

There were smart businesses that didn't wait for consumer pressure. Yours is probably one of them. Your leaders already were committed to doing their part to reduce energy costs and to leave a healthy planet for future generations. It was a lonely job.

My, how you've grown

You're not alone anymore. Our readership has skyrocketed. We've already had more visitors this month to date than we had in our entire first year.

Thanks to the internet, our reach far exceeds our grasp. Our content is widely shared and syndicated worldwide. We collaborate with high-profile publications and blogs on energy and sustainability. The podcasts we create are available to millions on Apple iTunes.

Where do we grow from here?

Energy Priorities has evolved to meet the changing needs of enlightened business readers who want to be more responsible energy users. As we enter our fifth year we'll continue to refine our focus to track the energy issues that affect your business.

You -- readers and listeners -- are more engaged than ever in shaping our content. Keep those calls and e-mails coming.

Why do you read Energy Priorities? Because your company likes to set an example, not follow the leaders. Because a competitor has begun an aggressive "greenwashing" campaign and you believe your company can do better. Because government directives in Europe and Asia are affecting your operations there. Because your employees are asking your company to evolve with their image of themselves as environmentally responsible individuals.

Whatever your motivation, to succeed you need a clear-headed source of information. That's our job, and we take it seriously.

Thanks for reading.

]]> By Denis Du Bois on April 22, 2008 at Energy Priorities

How To Win the War on Global Warming (Time)

2008-04-21T15:36:28Z

The upcoming issue of Time Magazine will be all about "How to win the war on global warming." It's interesting to note that this is the cover story in all worldwide editions of Time, except for Europe. That edition focuses on US-UK relations.

]]>

Inside the April 28 issue, which will reach newsstands this week:

Cover story -- How America Can Lead in Green

So far, the U.S. has sat out the fight against climate change--but that can't continue.

The Candidates and Climate Change

All three presidential contenders talk like greens. What the cap-and-trade fight about to break out may say about them.

Also on the Time web site in time for Earth Day ...

Top Green Companies

Top Green Websites (no, we didn't make the list, but there are some excellent resources listed from NY Times & WSJ, to NRDC and others)

CO2: They Should Bottle That Stuff (Viewpoint about carbon capture)

The Greening of the Pentagon (U.S. dependence on foreign oil)

United Nations Chief on Peace Through Green

Why Time Is Going Green

]]> By Denis Du Bois on April 21, 2008 at Energy Priorities

Beijing Construction to be Halted ahead of China Olympic Games (NY Times)

2008-04-16T01:43:11Z

How will Beijing stage "green games" in one of the world's most polluted cities? By placing all sources of pollution on hold for two months. If the plan fails, the International Olympic Committee's president says smog could postpone some outdoor events.

]]>

Olympic facilities, like the Beijing 2008 Olympic Main Stadium, presumably are exempt from the Chinese government's two-month ban on construction in the city. (Xin Zhu photo)

On August 21, 2008, Beijing may recommence browning. Until then, greening is the name of the game.

It might not be full-speed re-browning, if a few of the measures taken this summer are made permanent. Most are temporary. Starting July 20, building construction projects are to be halted for two months. New York Times reporter Andrew Jacobs lists other temporary restrictions intended to clear the air by August 8:

City officials laid out an ambitious series of measures on Monday that will freeze construction projects, slow down steel production and shut down quarries in and around this capital during the summer in an attempt to clear the air for the Olympics. Even spray-painting outdoors will be banned during the weeks before and after sporting events...Government directives will also force coal-burning power plants to reduce their emissions by 30 percent through most of the summer. Officials said 19 heavily polluting enterprises, including steel mills, coke plants and refineries, would be temporarily mothballed or forced to reduce production. Gas pumps that do not have vapor-trapping devices will be closed, cement production will stop and the use of toxic solvents outdoors will be forbidden.

In Jacobs's article today, "Construction Halted Ahead of Games," he points to some changes that might be permanent. Chinese officials say they have forced local factories to upgrade pollution-control equipment, and shut down about 200 of the most noxious offenders.

The effort has been under way for a year or more, but not at this scale. Pollution from coal-burning heaters and stoves is measurably on the decline, but car ownership is on the rise, with about 1,200 new cars per day. The two trends cancel each other's impact, Jacobs reports. With such surging demand, gas stations might be compelled to upgrade pumps with vapor-trapping devices rather than be closed down.

What about indoor air quality? A proposed smoking ban has been relaxed so bar and restaurant patrons can exercise their presumed human rights to light up. Stadiums, however, are supposed to be non-smoking as of May 1.

]]> By Denis Du Bois on April 16, 2008 at Energy Priorities

Three Buildings Net Zero Energy - Building Priorities Briefing

2008-04-15T14:12:08Z

We explore three commercial buildings without power bills, and contrast the many meanings of "zero" in energy and carbon. First, a commercial building proven to be zero energy -- and then some. In the first 12 months after construction, this building produced more energy than it consumed. Then we learn about two more buildings presented in the ZEB session at Globe last month. The Energy Minute is about the meaning of zero: What should be counted when designating a building "net zero energy" or "zero carbon"? In the Program Notes we have photos and links to more information for those of you who are researching the net-zero option for your own buildings. (podcast) (photo)

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Program notes

What is the meaning of zero? We explore zero energy buildings and contrast that with carbon neutral buildings.

Case study: 31 Tannery Road, Branchburg, NJ.

Thirty-one Tannery is the corporate headquarters for Ferreira Construction. It's also the first zero energy commercial building in the U.S. Two hundred people work in this 42,000 square foot living lab of sustainability. It has 1,200+ PV modules on the roof -- 223 kilowatts -- and solar thermal provides its hot water.

The radiant HVAC system has nine miles of tubing in the slab. The condensing boiler operates at 95 percent efficiency and above. The list goes on -- sensors, controls, monitoring -- it's a hands-on showcase of energy efficiency and renewable energy systems.

Denis Du Bois interviews Joe Grabowski, Vice President for building owner-occupant Ferreira Construction, who was very involved in the design of the building.

The rooftop solar array atop Ferreira's headquarters helps the building operate on net zero outside energy. (Photo courtesy Ferreira)

Thirty-one Tannery will have its second anniversary in July 2008. It's the first zero energy commercial building in the U.S. To be precise, it's a net zero electric energy building; it still uses natural gas. It's not completely accurate to say it has no power bill, because utility demand charges and standby charges still apply. And the building isn't carbon neutral. In its first 12 months the building's avoided emissions were 530 metric tons of carbon, roughly equivalent to the CO2 from 100 typical American cars.

Ferreira Construction web site

Energy Minute: The Meaning of Zero Energy and Carbon Neutral.

Zero energy, zero carbon -- what do they mean, and what's the difference?

Third half: Two carbon-neutral ZEBs presented at the Globe 2008 session.

Zero energy buildings were the topic of a popular session at the Globe Conference on Business and the Environment, March 2008 in Vancouver British Columbia.

Peter Busby presented two carbon-neutral commercial designs at the Globe 2008 conference in Vancouver. (EP photo)

The panelist with the most interesting information to share about commercial buildings was Peter Busby, Managing Director of Busby Perkins + Will and Chair of the Canada Green Building Council. Busby talked about two of his firm's projects that are net zero energy buildings. Both are in the design phase, and both will be carbon neutral.

Canada is serious about green building. It has its own Green Building Council, and the World Green Building Council is based in Toronto Ontario.

Busby Perkins + Will web site
Canada Green Building Council web site
World Green Building Council web site
"Globe Conference Draws Leaders from around the World" (EP)

Your mail: [how to reach us]

From Canada -- A whole community shuts off its power.

Earth Hour. Millions of people in cities on six continents turned off their lights. Participants in more than 400 countries made a highly visible statement in support for global action on climate change. Hartley Bay, BC, Canada went a step farther.

Earth Hour web site
Small Energy Group web site

]]> By Denis Du Bois on April 15, 2008 at Energy Priorities

Sentient Building Marks Major Advance in Artificial Intelligence: Exclusive Interview

2008-04-01T13:16:06Z

CHICAGO, April 1, 2008 -- Remember the turn of the 21st century, when intelligent buildings were at the bleeding edge of technology? Now, artificial intelligence is out of the lab and headed for a building near you. Buildings have literally taken on a life of their own and today, the first of April, the first sentient building opened in Chicago Illinois. Denis Du Bois interviews Cornice Leed, the brains of the new Gore Tower office building in the Windy City. (podcast) (transcript)

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Transcript

Denis: I understand you're in charge of facilities for this rather stunning new high-rise. What does that encompass?

Cornice: I coordinate all the systems in the building, like lighting and HVAC. I'm ultimately responsible for energy consumption in the building, as well as safety, worker productivity and comfort.

Denis: That's a big job. How do you stay on top of everything?

Cornice: Automation and information. I have more computers per cubic inch than a stealth fighter. Altogether I have a team of 460 systems, and they're all networked. I check in with each of them once in a while, about 60 times a second.

Denis: What are some of the biggest challenges of your job?

Cornice: The staff can be difficult sometimes. Johnson, for example, can be, you know, a little controlling. Office romances complicate things. HV broke up with AC last week and all the gossipy IM messages almost brought down the network. And the janitorial robots keep harassing the thermostats with lines like "hey, Honeywell."

Denis: So maintaining productivity and controlling energy consumption -- do those make the list?

Cornice: No, frankly, that's just not that challenging any more. Oh, I've been fine-tuning the algorithms for the VFDs in the variable-flow chiller plant...

Denis: Hold on, Cornice, you're getting a little technical…

Cornice: Sorry, I forget you're only human. Basically, Denis, the systems in my building run themselves. In the last minute I've granted access to 31 employees, turned off cooling in 7 empty meeting rooms, dimmed the lights in the parking garage, and ordered a new fan for the 40th-floor ladies room. All without lifting a finger, as you people might say.

Denis: That's impressive. You just opened today, so you probably don't have any idea of actual energy savings.

Cornice: On the contrary, my carbon-based friend. Bim reports that so far today...

Denis: Bim?

Cornice: Yes. He's magnificent. Former model. Now he's in charge of continuous commissioning.

Denis: I see.

Cornice: So far today I've used 70 percent less energy per square foot than code requires, and the wind turbines on my roof are generating the remaining 30 percent, plus some extra that I'm selling back to the utility.

Denis: We'd like to have you back, when you have more long-term results to report.

Cornice: It would be my pleasure.

Denis: Cornice Leed, congratulations on being the first sentient building, and thank you for joining us.

Denis: Thank you, Denis. And happy April Fool's Day. One question...

Denis: Yes?

Cornice: Is it OK if I put this interview on YouTube? I want my share it with my friends.

Denis: Better yet, Cornice, your friends can find the Energy Priorities podcast on iTunes.

]]> By Denis Du Bois on April 01, 2008 at Energy Priorities