Technology, Energy Efficiency & Renewable Energy for Emission Reduction

2. Technology, Energy Efficiency & Renewable Energy for Emission Reduction John Morrison and Ward Lenz Advanced Energy April 20, 2004

3. Advanced Energy Basics • Non-profit public benefits corporation funded by electric bill surcharge. • Formed in 1980 by the NC Public Utilities Commission. • Focus on energy efficiency, electrotechnologies and green power.

4. Outline • Efficiency and Air Quality • Efficiency and Technology + Economics • Renewables • Bringing it Together: Economics

5. Source of Air Quality Problems • Conversion of energy into work and byproducts • Can clean the conversion byproducts What “they” should do • Can reduce consumption What “we” can do

6. Projected Energy Use Total U.S. Energy Production vs. Consumption, 2000-2020 140 Total U.S. Consumption CriticalGap 120 100 80 Quadrillion Btu per year Total U.S. Production 60 40 20 0 2000 2005 2010 2015 2020 Source: Energy Information Administration projections

7. Efficiency: Residential • Building Codes • High Performance Homes

9. Cambridge Homes • Winner of National Association of Home Builders Gold Medal for incorporating High Performance into production • Guaranteed Energy (25-50% less heating and cooling) • Greater profits

10. Air Barrier Insulation Windows HVAC Ventilation Combustion Safety High Performance Homes?Quality Control!!!

12. Emissions Impact • 3.5 million households in NC • Save 3,300 kWh/household/year • 4,610 pounds CO2 reduction • 16 million pounds CO2 reduction in NC

13. Economics • Benefit to builder is $$$ • Benefit to buyer is $$$ • Benefit to community is reduced energy consumption and emissions

14. Industry • Motors: As much as 70% of electricity used in industry goes through a motor • Slight increase in motor efficiency can save lots of energy • Key is reliability

16. Motor Efficiency and AQ • 100 hp motor • 1% efficiency gain = 5,500 kWh savings • 7,700 pounds CO2 reduction per year

17. Motor Efficiency and AQ • 100 hp motor • 1% efficiency gain = 5,500 kWh savings • 7,700 pounds CO2 reduction per year • Only $431 per year savings

18. For a 250 hp pumping system operating for 10 years at $0.05/kWh… Purchase Cost = $28,000 Key Barriers Purchase cost is just the tip of the iceberg! • Lack of awareness: Perception by plant management that energy saving opportunities are small and not cost-effective • First cost thinking: Lack of recognition by supplier and customer that energy costs arekey part of pump’s life cycle costs • Lack of Corporate Energy Management: Energy not part of most corporation’s business strategy • Limited plant staff: Plant engineering has little time to find energy saving opportunities Energy Costs = $750,000 Maintenance & Misc. Costs = $260,000

19. Industry • Electrotechnologies: • Powder coating – VOC reduction, improved product quality, improved productivity, improved profits • Process heating – better control

20. Industrial Economics • Companies MUST make money • Energy consumption is small part of their picture • Find the company’s “pain” and help fix it. Solution often reduces emissions and saves energy

22. Transportation • Hybrid Electric School Bus • Produced in North Carolina • Energy savings • Emissions reductions • Jobs

23. NC GreenPower Wind, solar Biomass Landfill gas Renewable Energy

24. Bringing It Together • No single silver bullet • Figure out how to make money or ease pain • Make their job easier • Reduce costs

25. Technology, Energy Efficiency & Renewable Energy for Emission Reduction John Morrison and Ward Lenz Advanced Energy April 20, 2004

26. 909 Capability Drive, Suite 2100 Raleigh, NC www.advancedenergy.org