Energy Efficiency and the Consumer's 'Triple Bottom Line'

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Eilat- Eilot: International Renewable Energy Conference
Eilat, Israel
Kateri Callahan
President, Alliance to Save Energy
February 18, 2010

Published in: Technology, Economy & Finance
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  • Length: 12 minutes presentation February 18, 11:30 – 12:30: Policy & Implementation: Changing Habits, the Secret Way to Save Energy
  • Slide is animated
  • Annual world-wide investment of $170 billion in energy efficiency through 2020 could: cut global growth in energy demand by ½! save $900 billion a year in avoided energy costs dramatically reduce greenhouse gas emissions Source: The McKinsey Global Institute “ Energy efficiency is the nation’s greatest energy resource—we saved 50 quads in 2007 due to energy efficiency and conservation efforts taken since 1973. This is more energy than we get from any single energy source, including oil.”   “ If we tried to run today’s economy without the energy-efficiency improvements that have taken place since 1973, we would need nearly 50% more energy than we use now. This is more than what we get from any single energy source, including oil, natural gas, coal, and nuclear power.”
  • The good news is that there is a very large opportunity to contain energy demand growth in an economically attractive way. By capturing the potential available from existing technologies with an internal rate of return of 10 percent or more, we could cut global energy demand growth by half or more over the next 15 years. In other words, global energy demand in 2020 would decline by an amount equal to almost 150 percent of the entire US energy consumption today.
  • Stats from the Shelton Group’s 2009 EcoPulse Study (published June 2009): Consumer focus groups in Los Angeles and St. Louis Q: Given a choice between your comfort, your convenience, and the environment, which do you most often choose: A: 38.4% said convenience, 35.4% said comfort; 26.3% said the environment Q: Whats the number one reason to participate in energy conservation activities or buy an energy-efficiency product? A: 30.1% said to save money ; 24% to protect the environment; 4% to protect our nation’s economy Shows that consumers don’t “go green” just to save the planet or help the country – money talks! Q: If you thought it was harming the environment, which of the following would you give up? A: 41.5% willing to give up iPod; 38.1 dishwasher; 27.8 microwave; 23.5% not willing to give up ANYTHING to better the environment (other options were cell phone, air conditioning, TV, computer, car)
  • The strain on consumers’ wallets helped cause the biggest decline in VMT since the 1970s, pushed consumers to buy more hybrids and fuel-efficient vehicles, to embrace EE
  • Energy crisis – why? Spikes in energy prices - From June 2000 through July 2000 wholesale electricity prices increased on average 270 percent over the same period in 1999 Power shortages and rolling blackouts - Stage 3 emergency notifications, which may necessitate rotating blackouts, had increased from 1 in 2000 to 38 through May 22, 2001 Financial instability in major California IOUs - Investment in new power generation capacity did not keep pace with increasing demand for electricity; many independent power generators reluctant to sell power to utilities (PG&E and SCE) because of financial troubles
  • BATON ROUGE, LA – December 2008 36% increase in home’s energy efficiency ALBUQUERQUE, NM, February 22, 2007 The home energy-efficiency makeover was performed on a 60-year-old, one-story, four-bedroom, two-bath house located in the Northeast Heights that is owned by Alejandro and Teresa Porath. Materials and labor for the makeover of the Porath family ’s house were provided by a number of local and national companies and agencies. Until the makeover, the Porath family had to rely on the living room fireplace and an outdated, overtaxed heating system. The old windows throughout the house and the sparse insulation did little to keep the cold air out and the warm air inside. The heating and water bills, which combined ranged from $200-300 a month, forced Alejandro to curtail many non-essential expenses, such as Internet access for his son Abraham. Even with such cutbacks, the Poraths struggled to make monthly payments under the local energy company’s payment plan. The donated energy-efficiency improvements will lower the Porath family’s energy bills, while also increasing the family’s indoor comfort. Other donated services will lower their gasoline costs by keeping their vehicles tuned up and well maintained. Washington DC – September 11 2009 – Rebuilding Together event
  • The Alliance works to bring the EE message to all levels of government in the U.S. and around the globe, to all sectors of the economy.
  • You can change the logos contained herein. Logos are saved in the H drive: H:Public and Corporate RelationsAssociates ProgramIndividual Associate Files If you cannot access the PCR folder but need Associate logos, please contact Chris Amos or Heather Rubacky (or someone else on the PCR team) For any other questions about this slide, please contact Sandy Fard (sfard@ase.org).
  • Energy Efficiency and the Consumer's 'Triple Bottom Line'

    1. 1. Changing Habits, the Secret Way to Save Energy : Energy Efficiency and the Consumer’s “Triple Bottom Line” Kateri Callahan, President Alliance to Save Energy February 18, 2010
    2. 2. Presentation Overview <ul><li>A few words about the Alliance to Save Energy </li></ul><ul><li>Why energy efficiency? Our great energy resource </li></ul><ul><li>Clean, Quickest, Cheapest </li></ul><ul><li>Appealing to the Consumer’s Triple Bottom Line Clean , Comfortable , Cost-effective </li></ul><ul><li>What is the Alliance doing? </li></ul>
    3. 3. What is the Alliance to Save Energy? <ul><li>Mission: </li></ul><ul><li>To promote energy efficiency worldwide to achieve a healthier economy, a cleaner environment, and greater energy security. </li></ul><ul><li>Organization: </li></ul><ul><li>Staffed by 60+ professionals </li></ul><ul><li>32 years of experience </li></ul><ul><li>$12 million annual budget </li></ul><ul><li>Recognized as premier EE organization in the world </li></ul>
    4. 4. Working with and Across All Sectors of the Economy - 170 companies, organizations, and institution in Associates Program - Associates Program membership represents all economic sectors - Initiatives underway in research, policy advocacy, education, technology deployment, market transformation and communications
    5. 5. What is energy efficiency??? <ul><li>Doing the same (or MORE ) with less </li></ul><ul><li>CHEAPEST </li></ul><ul><li>QUICKEST </li></ul><ul><li>CLEANEST </li></ul><ul><li>Versus energy conservation </li></ul>
    6. 6. A good track record in the U.S. – Our Greatest Energy Resource 4
    7. 7. But we can still do more: Enormous Potential for Savings in ALL Sectors … Source: McKinsey Global Institute
    8. 8. How to unlock the potential of EE? Start with energy consumers! What does it take to change habits? Help the consumer’s Triple Bottom Line - The 3 C’s:
    9. 9. Example 1 : Gasoline, 2008, U.S. <ul><li>A Blessing in Disguise?? </li></ul><ul><li>BIG EFFECT ON CONSUMER BEHAVIOR: </li></ul><ul><li> From Nov. 2007 and Oct. 2008: Americans drove 100 billion fewer miles (3.3% decrease from 2007) </li></ul><ul><li> Annual transit ridership rose by 420 million passengers (4% increase) </li></ul><ul><li> Shift in purchasing behavior to more fuel-efficient vehicles: </li></ul><ul><li>>> 2004 : 50,000 hybrid cars sold in U.S. </li></ul><ul><li>>> 2008 : +300,000 </li></ul>Average gallon of gasoline topped $4.00 in July 2008! (compare to $2.85 in July 2007)
    10. 10. Example 2: Electricity, 2000-1, California <ul><li>California Cut Energy Use and Peak Demand </li></ul><ul><li>“ Flex Your Power Campaign” </li></ul><ul><ul><li>Retail promotions </li></ul></ul><ul><ul><li>TV, Print & Radio Advertising </li></ul></ul><ul><li>20/20 Utility Rebate Program </li></ul><ul><ul><li> Simple Requirement </li></ul></ul><ul><ul><li> All Investor-owned Utilities </li></ul></ul><ul><ul><li>Automatic enrollment </li></ul></ul><ul><ul><li>Executive Order </li></ul></ul><ul><li>Results </li></ul><ul><li>Reduced energy consumption at peak by 14% </li></ul><ul><li>32% of residents & businesses cut energy use by at least 20% </li></ul><ul><li>Per capita energy use lower than any industrialized nation </li></ul><ul><li>Cost of savings lower than contract or spot market power purchases </li></ul>
    11. 11. So, what’s the Alliance doing? Bringing the message home… <ul><li>Super Powers </li></ul><ul><li>EPA, NYSERDA, Alliance </li></ul><ul><li>Nationwide TV & Radio </li></ul><ul><li>(ABC, CBS, CNN) </li></ul><ul><li>Consumer Website </li></ul><ul><li>Powerful $avings </li></ul><ul><li>DOE & Alliance Partnership </li></ul><ul><li>All Media Outlets </li></ul><ul><li>The Power is In Your Hands </li></ul><ul><li>Industry, DOE, EPA, Alliance </li></ul><ul><li>All Media Outlets, Web & Collateral </li></ul>Energy Hog DOE, Ad Council, Alliance, States All Media Outlets Web, Collateral Materials P&G ColdWater Campaign P&G, Alliance All Media Outlets & Web Eureka $mart House Energy-Efficiency Challenge NBC Universal, Industry, DOE, Alliance On Air, Web–Home Makeover Contest … via effective consumer campaigns:
    12. 12. Rep. Heather Wilson and Homeowner Alejandro Porath Building the message at home “ Makeovers,” home rehabilitation projects conducted in communities across the U.S.: Albuquerque, NM Baton Rouge, LA Washington, D.C.
    13. 13. Taking EE to the classroom… <ul><li>The Alliance’s Green Schools and Green Campus Programs take energy efficiency to school: </li></ul><ul><ul><li>Educate students about energy and the link between energy efficiency and the environment, providing hands-on, real-world learning opportunities that empower them to make a real difference </li></ul></ul><ul><ul><li>Save energy at school </li></ul></ul><ul><ul><li>Students take their knowledge </li></ul></ul><ul><ul><li>home and to the community </li></ul></ul><ul><ul><li>Train the next generation </li></ul></ul><ul><ul><li>of energy professionals through </li></ul></ul><ul><ul><li>internships and workshop </li></ul></ul>
    14. 14. … and beyond
    15. 15. <ul><li>EE Global 2010: Ideas, Intersections, Solutions to Power an Energy-Efficient Economy </li></ul><ul><li>May 10-12, 2010 : Washington D.C. Convention Center </li></ul><ul><li>Established in 2007; held annually, rotating among 5 regions of the world </li></ul><ul><ul><li>Africa, Asia/Pacific, Europe, Latin America, North America </li></ul></ul><ul><li>Organized by an International Steering Committee </li></ul><ul><li>Draws 700+ stakeholders </li></ul><ul><ul><li>High-level – 40% of 2009 attendees self-identified as executives, and another 50% as managers </li></ul></ul><ul><ul><li>International –40 countries represented in 2009 </li></ul></ul><ul><ul><li>Representative of all sectors – buildings, industrial, utilities, transportation, finance </li></ul></ul><ul><ul><li>Even split of government (28%), business (37%) and non-profit (28%) in 2007 & 2009 </li></ul></ul>
    16. 16. Thank you! <ul><li>Contact information: </li></ul><ul><li>Kateri Callahan </li></ul><ul><li>[email_address] </li></ul><ul><li>+1-202-530-2219 </li></ul>

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