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

Technology, Energy Efficiency & Renewable

Energy for Emission Reduction

John Morrison and Ward LenzAdvanced Energy

April 20, 2004

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.

Outline

• Efficiency and Air Quality• Efficiency and Technology +

Economics• Renewables• Bringing it Together: Economics

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

Projected Energy UseTotal U.S. Energy Production vs. Consumption,

2000-2020

0

20

40

60

80

100

120

140

2000 2005 2010 2015 2020

Qua

drill

ion

Btu

per

yea

r

Total U.S. Production

Total U.S. Consumption

Source: Energy Information Administration projections

CriticalGap

Efficiency: Residential

• Building Codes• High Performance Homes

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

High Performance Homes?Quality Control!!!

• Air Barrier• Insulation• Windows

• HVAC• Ventilation• Combustion

Safety

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

Economics

• Benefit to builder is $$$• Benefit to buyer is $$$• Benefit to community is reduced

energy consumption and emissions

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

Motor Efficiency and AQ

• 100 hp motor• 1% efficiency gain = 5,500 kWh

savings• 7,700 pounds CO2 reduction per

year

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

Key Barriers• Lack of awareness: Perception

by plant management that energy saving opportunities are small and not cost-effective For a 250 hp pumping

system operating for 10 years at $0.05/kWh…

Purchase Cost = $28,000

Energy Costs = $750,000

Maintenance & Misc. Costs = $260,000

Purchase cost is just the tip of the iceberg!

• 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

• First cost thinking: Lack of recognition by supplier and customer that energy costs arekey part of pump’s life cycle costs

Industry

• Electrotechnologies:• Powder coating – VOC reduction,

improved product quality, improved productivity, improved profits

• Process heating – better control

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

Transportation

• Hybrid Electric School Bus

• Produced in North Carolina

• Energy savings• Emissions reductions• Jobs

Renewable Energy

• NC GreenPower• Wind, solar• Biomass• Landfill gas

Bringing It Together

• No single silver bullet• Figure out how to make money or

ease pain • Make their job easier• Reduce costs

Technology, Energy Efficiency & Renewable

Energy for Emission Reduction

John Morrison and Ward LenzAdvanced Energy

April 20, 2004

909 Capability Drive, Suite 2100Raleigh, NC

www.advancedenergy.org