Solving the Community Energy Puzzle Michigan Clean Energy Summit October 15 th, 2012, Hyattsville, Maryland Smart Grids or Smart Energy Networks? Peter.

Solving the Community Energy Puzzle

Michigan Clean Energy SummitOctober 15th, 2012, Hyattsville, Maryland

Smart Grids or Smart Energy Networks?

Peter GarforthPrincipal – Garforth International llc

Most of us live in Urban Setting70% of Global Energy Use

*UN Sources

Urban Population passed 50% in 2008

Percent

Total US Energy Use ~ $1.5 TrillionMost in Urban Environment

Source: US DoE EIA - 2011

Buildings40.7%

Industry31.4%

Transport27.8%

CoalCoal

GasGas

Domestic OilDomestic Oil

Imported OilImported Oil

UraniumUranium

RenewableRenewable

HomesHomes

CommercialCommercial

IndustryIndustry

TransportationTransportation

Operates in Inefficient Regional Silos

Energy ProductivityHow well do we spend our $1.5 Trillion?

*IEA and World Bank – 2009 sources

Key to Competitiveness

Region Population GDP EnergyEnergy/Capita

Energy/GDP

USA 4.5% 23.0% 17.8% 100 100

Canada 0.5% 2.5% 2.1% 107 108

EU 7.4% 30.3% 13.0% 45 56

Japan 1.9% 7.8% 3.9% 53 65

China 19.7% 6.8% 16.1% 21 307

India 17.1% 2.0% 4.9% 7 319

World 100% 100% 100% 22 198

Dysfunctional Energy Supply ChainFrom fuel to service

Uses 70% of all energy

25%

High-cost low returns High risk High greenhouse gas

5%

Pay 100% for fuel - Get less than 10% in services

Why Some Communities CareNew Energy Realities…

Investment and Green Jobs Energy cost and competitiveness Community Values and Image Supply quality and security Environmental legislation Weather events Nuclear, gas and coal uncertainties…

Fundamentally Different From Past

Copenhagen, Denmark

Guelph, Ontario

Mannheim, Germany

Holland. MI

Arlington, VA

Loudoun, VA

EU - "Municipal"

EU - Total

USA - "Municipal"

USA - Total

0 10 20 30

Global BenchmarkingInforming Community Targets

We know what works!

mt CO2 / capita

CopenhagenIntegration from Use to Fuel

Triggered by 70’s energy crisis 3.5 tons / capita GHG Efficiency

World leading building efficiency Energy Performance Validation

District Energy Widespread across city

Fuel flexibility Multi-fuel cogeneration Coal, oil, gas, biofuel, waste-to-energy Wind and solar generation

Transport Urban design for bike/walking Efficient trams/trains City-wide EV plans

High Value Employment

2009 – Voted “Second Most Livable City”

Copenhagen ResultsDecouple Growth from Energy Use

Systematic Energy Integration WorksSource: LSE Cities Study - 2012

Mannheim City UtilityIntegrated Utility – Multiple Sources

Integrated Multi-Utility Multiple Sources Public-Private Energy Services

51% City Owned 49% Private Capital

Benefits Local accountability Minimize infrastructure duplication Optimized supply choices Multi-media Smart networks Competitive costs Optimization between media Business innovation

Low cost – clean – flexible - evolving

MicroCHP

WasteCHP

CoalCHP

GasCHP

WoodCHP

SolarCHP

Cooling, heat, electricity, steam, gas, water

Integrated networks control

Energy Zoning

*Source: MVV Energie AG

Challenging the Status QuoUS & Canadian Cities Breaking the Mold

Fully Integrated Breakthrough targets All aspects of energy

Economic Technical Environmental Institutional Social

Multi-decade Globally benchmarked

Successful Community Energy PlanningThree Groups of Balanced Benefits

Something for the Entire Community

Competitiveness Security

Environment

Guelph Community Energy InitiativePrioritized strategies 2008-2031

Above-Code building efficiency All construction – new and retrofit

Energy Performance Labels All construction – national pilot

Transport & neighbourhood efficiency Urban design and vehicle choices

Heat Recovery & CHP New District Energy infrastructure Industrial and other sources

Renewables Biomass and Solar Photovoltaic in large scale

New municipal energy services companyIntegrated Solution – Not a Buffet!

Community Level Integration Key to Breakthrough Energy Performance

Local Governance Strategic priorities; utility oversight; flexible teaming;

investment & ownership

Policy and Planning Freedom Urban design; building performance; energy services;

incentives; local flexibility and exceptions

Local Utility Structures and Teaming Energy service integration – efficiency; electricity; gas,

heating, cooling...water… Supply choice integration – heat recovery; fossil;

renewable; centralized or distributed

Integrated Information and Control Networks Full supply chain; all energy modalities Community level – community sharing

Smart Energy Networks ..not.. Smart Grids

Thank You

Peter GarforthGarforth International [email protected]

+1 (419) 578 9613 - Office+1 (419) 320 0664 - Mobile