The Century of Energy Efficiency: Taking it to the Cities


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Kateri Callahan joined Israeli mayors and senior representatives from local Tel Aviv authorities and agencies to discuss the challenges and potential for Israeli cities in deploying energy efficiency at scale. Showcasing success stories and case studies from the U.S. and around the world, Callahan demonstrated the economic, environmental, and security benefits of advancing programs, technologies, funding and infrastructure that promote efficient energy use.

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  • 30 minutes (this includes presentation + discussion) Audience will not be too familiar with topic, so Yael asks that you make sure to cover energy efficiency in depth and talk about the opportunities/challenges for cities/municipalities
  • 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.”
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  • 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.
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  • Money to be entirely obligated by September 30, 2010
  • A note about urban infrastructure:   the problem doesn't just lie in the energy that gets consumed within city limits. More often than not the bigger environmental issue lies in how resources are transported to the city in the first place (widens the problem beyond city borders)
  • ICLEI – international association of local governments as well as national and regional local government organizations that have made a commitment to sustainable development; over 1107 cities, towns, counties, and their associations worldwid European Union Covenant of Mayors: Covenant of Mayors  is a commitment by signatory towns and cities to go beyond the objectives of EU energy policy in terms of reduction in CO 2  emissions through enhanced energy efficiency and cleaner energy production and use. Clinton Climate C40 Cities Project: a group of the world's largest cities committed to tackling climate change; includes: Istanbul, Cairo; Karachi, Pakistan; Delhi, India (I’m naming cities in the region of Israel – might be a touchy subject because a majority of these cities/countries have not-so-great relations with the Israeli government; but then again, it could inspire the mayors in the audience to focus more on energy/efficiency issues) Other cities: Shangai, Tokyo, Chicago, New York, Buenos Aires, Toronto, Sydney, Mexico City Asian Cities Climate Change Resilience Network: increase attention, funding, and action on building climate change resilience for poor and vulnerable people by creating robust models and methodologies for assessing and addressing risk through active engagement and analysis of various cities.
  • THIS SLIDE IS ANIMATED – TEXT IS BEHIND THE MAP (move the map to edit the text, then you can move the map back; or you can get rid of the map altogether. If you’re using the map, in the slide presentation: click to move the map and reveal the text) A groundbreaking $100 million initiative to implement massive energy efficiency and clean energy generation throughout the city Reduce peak demand by 50 MW, electric use by 10% and other fossil fuel use by 5% over 5 years Reduce Cambridge’s carbon footprint by at least 150,000 tons over 5 years A collaboration between the City of Cambridge, Cambridge Health Alliance, and the Henry P. Kendall Foundation -model for the Cincinnati Energy Alliance NSTAR: local electricity/gas utility CSG involvement: CSG conducts the MassSAVE audits for NSTAR, as well as CEA’s enhanced audit. The MassSave audit includes an evaluation of building envelope, insulation, and other building needs such as windows.
  • Energy conservation was a common feature of life in Soviet Union  after the fall of the Berlin Wall, post-Soviet societies became more inefficient
  • Taken from an International Energy Agency report on “Cities and Energy”, 2008 Of note: energy efficiency is among the most common features in city energy savings programs  drastic savings
  • 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 (
  • The Century of Energy Efficiency: Taking it to the Cities

    1. 1. Kateri Callahan, President Alliance to Save Energy February 15, 2010 The Century of Energy Efficiency: Taking it to the Cities
    2. 2. Presentation Overview <ul><li>A few words about the Alliance </li></ul><ul><li>Why energy efficiency? Why now? </li></ul><ul><li>Driving energy efficiency – the public policy imperative </li></ul><ul><li>Energy challenges/potential in urban settings </li></ul><ul><li>A Quick Tour: Success Stories </li></ul><ul><li>Taking it to the next level – the challenge for Israel </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 the premier energy efficiency organization in the world </li></ul>
    4. 4. What is the Alliance to Save Energy? <ul><ul><li>Non-profit organization headquartered in U.S.; operations world-wide </li></ul></ul><ul><ul><li>Led by Senator Mark Pryor (D-Ark.) and Peter Darbee, President and CEO of Pacific Gas and Electric </li></ul></ul><ul><ul><li>Includes 10 Members of Congress – Bi-Cameral; Bi-Partisan </li></ul></ul><ul><ul><li>Also includes environmental, consumer, and trade associations heads, state and local policy makers, corporate executives </li></ul></ul>
    5. 5. Working with and Across All Sectors of the Economy <ul><li>1 70 companies, organizations, and institutions in Associates Program </li></ul><ul><li>Associates Program membership represents all economic sectors </li></ul><ul><li>Initiatives underway in research, policy advocacy, education, technology deployment, market transformation and communications </li></ul>
    6. 6. <ul><li>3 in India </li></ul><ul><li>1 in Pakistan </li></ul><ul><li>2+ pending in China </li></ul><ul><li>5 more in Asia-Pacific region </li></ul><ul><li>4 in Africa </li></ul><ul><li>3 in Latin America (Mexico, Central America, Caribbean) </li></ul><ul><li>1 in Ukraine </li></ul><ul><li>1 in Eastern Europe/Eurasia region </li></ul><ul><li>2 in North America </li></ul>A Global Reach: 22+ International Projects
    7. 7. Why Energy Efficiency? America’s Greatest Energy Resource Reducing Energy Use, Saving Money, and Powering the domestic economy for over 30 years:
    8. 8. WHY EE? WHY NOW? Global “Business as Usual” is Unsustainable Global demand grows by more than half over the next quarter of a century, with coal use rising most in absolute terms 0 2 4 6 8 10 12 14 16 18 1980 1990 2000 2010 2020 2030 billion tonnes of oil equivalent Other renewables Biomass Hydro Nuclear Gas Oil Coal 0 2 4 6 8 10 12 14 16 18 1980 1990 2000 2010 2020 2030 billion tonnes of oil equivalent Other renewables Biomass Hydro Nuclear Gas Oil Coal
    9. 9. In sum, energy use has a direct effect on… <ul><li>Global Emissions: </li></ul><ul><li>Energy use directly linked to </li></ul><ul><li>GHG emissions..U.S. example: </li></ul><ul><li>Energy Security: Unchecked growth in energy demand can: </li></ul><ul><ul><li>Accelerate fossil fuel depletion </li></ul></ul><ul><ul><li>Increase our reliance on foreign sources of energy </li></ul></ul><ul><li>The Economy: </li></ul><ul><ul><li>According to a McKinsey estimate: “Business as usual” energy use will waste more than $1.2 trillion between now and 2020 in the U.S. alone – and this does not include transportation energy consumption. </li></ul></ul>
    10. 10. Efficiency: Enormous Potential for Savings in ALL Sectors … Source: McKinsey Global Institute
    11. 11. And: A No-Cost Way to Reduce GHG Emissions Energy efficiency should be fully considered in GHG reductions. All items to the left of the arrow represent “negative marginal costs”
    12. 12. BUT: Many “Non-Price” Barriers Uncertain costs? Lock-in SPLIT / INCENTIVES Misinformation Energy Subsidies
    13. 13. Tackling Market Distortions/Barriers Requires a Foundation of Public Policy <ul><li>To encourage technological innovation </li></ul><ul><li>To gain foothold in market </li></ul><ul><li>To achieve market penetration </li></ul><ul><li>To lock in savings for consumers and businesses </li></ul>
    14. 14. And Strong EE Policies Do Make a Difference!
    15. 15. The U.S. Example: ARRA: Built on the Pillars of Good Public Policy <ul><li>RD&D </li></ul><ul><ul><li>Smart Grid ($4.5 bill) </li></ul></ul><ul><ul><li>DOE RD&D ($2.25 billion) </li></ul></ul><ul><li>Incentives </li></ul><ul><ul><li>Extension and Increase in consumer EE tax incentives </li></ul></ul><ul><li>Codes & Standards </li></ul><ul><ul><li>“ Conditions” State funding on strong building codes </li></ul></ul><ul><li>Education & Outreach </li></ul><ul><ul><li>State Energy Star rebate programs ($300 million) </li></ul></ul><ul><li>PLUS: Government Leadership by Example </li></ul><ul><ul><li>Federal “High-Performance Green Buildings” ($4.5 billion) </li></ul></ul>
    16. 16. Stimulus: $65B Related to Energy Efficiency Funding in Millions of US Dollars
    17. 17. Core Energy Funding Obligation & Spending to date <ul><li>State Energy Program </li></ul><ul><ul><li>Appropriated: $3.1 billion </li></ul></ul><ul><ul><li>Obligated: $3.1 billion </li></ul></ul><ul><ul><li>Spent: $45 million (2%) </li></ul></ul><ul><li>Energy Efficiency and Conservation Block Grants </li></ul><ul><ul><li>Appropriated: $3.2 billion </li></ul></ul><ul><ul><li>Obligated: $2.3 billion </li></ul></ul><ul><ul><li>Spent: $78 million (3%) </li></ul></ul><ul><li>Weatherization Assistance Program </li></ul><ul><ul><li>Appropriated: $5.0 billion </li></ul></ul><ul><ul><li>Obligated: $4.8 billion </li></ul></ul><ul><ul><li>Spent: $441 million (9%) </li></ul></ul><ul><li>Appliance Rebates </li></ul><ul><ul><li>Appropriated: $300 million </li></ul></ul><ul><ul><li>Obligated: $300 million </li></ul></ul><ul><ul><li>Spent: $276 thousand </li></ul></ul><ul><li>Smart Grid Grants and Demonstration </li></ul><ul><ul><li>Appropriated: $4.2 billion </li></ul></ul><ul><ul><li>Obligated: $2.5 billion </li></ul></ul><ul><ul><li>Spent: $4 million (0.1%) </li></ul></ul><ul><li>RD&D (EERE and ARPA-E) </li></ul><ul><ul><li>Appropriated: $1.2 billion </li></ul></ul><ul><ul><li>Obligated: $484 million </li></ul></ul><ul><ul><li>Spent: $43 million (4%) </li></ul></ul>In core EE, $560 million of $11.6 billion spent (5%)
    18. 18. More about the EECBGs... <ul><li>Obama administration: strong focus on deploying EE at city/state level </li></ul><ul><li>Funds to units of local and state government, Indian tribes, and territories </li></ul><ul><li>Develop and implement projects to improve EE, reduce energy use/emissions </li></ul><ul><li>“ Retrofit Ramp-up”: </li></ul><ul><ul><li>8-20 awards of up to $75 million for comprehensive energy efficiency programs in cities </li></ul></ul><ul><ul><li>Total = $454 million </li></ul></ul><ul><ul><li>170 proposal applications (Alliance involved in 5) </li></ul></ul><ul><li>“ The aim of the ‘Retrofit Ramp-Up’ program is to jump-start an industry that makes energy efficiency savings easy to access and available to everyone. By encouraging partnerships between local governments and effective private enterprises, we hope tune-ups for buildings will become as accepted as tune-ups for cars. These efforts will save Americans millions of dollars, reduce carbon pollution, and create new green jobs,” said Secretary Chu. </li></ul>
    19. 19. Energy use in cities <ul><li>The Challenge: Cities are resource-hungry, and they’re growing </li></ul><ul><ul><ul><li>+50% of the global population lives in cities; 60% by 2030 (U.N. estimate) </li></ul></ul></ul><ul><ul><ul><li>Cities emit disproportionate amount– 80% global GHGs (U.N. Habitat) </li></ul></ul></ul><ul><ul><ul><li>Drastically reducing growth in emissions requires wide-scale changes, involving: </li></ul></ul></ul><ul><ul><ul><ul><ul><li>Infrastructural changes, Behavioral changes </li></ul></ul></ul></ul></ul><ul><ul><ul><li>The developing world : </li></ul></ul></ul><ul><ul><ul><ul><ul><li>75 percent of the world's billion poorest humans live in urban areas </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Dilemma: who finances sustainable urban development?) </li></ul></ul></ul></ul></ul><ul><li>The Potential: Efficiency First </li></ul><ul><ul><li>With optimal EE investments: </li></ul></ul><ul><ul><ul><li>Developed countries (G-8 + 5) can avoid $3 trillion worth of new generation (UN Foundation) </li></ul></ul></ul><ul><ul><ul><li>Developing world can reduce energy demand by 25% by 2020 (McKinsey Global Inst.) </li></ul></ul></ul><ul><ul><li>Most of these improvements need to happen at regional/municipal level </li></ul></ul><ul><ul><li>70 % of technologies required are available or on the horizon (McKinsey) </li></ul></ul><ul><ul><li>Energy savings can pave way for investments in wide-scale renewable, clean energy, climate improvements </li></ul></ul><ul><ul><ul><ul><li>( over 11 trillion Israeli shekel) </li></ul></ul></ul></ul>
    20. 20. Cities Responding to Challenge
    21. 21. Answering the Climate Challenge in the U.S.
    22. 22. Success story: Charlottesville, Virginia <ul><li>Winner of SEEA’s regional cities competition </li></ul><ul><li>$500,000 award </li></ul><ul><li>Creation of community-based EE program: The Local Energy Alliance Program (LEAP) </li></ul><ul><li>Residential : Home Performance w. ENERGYSTAR </li></ul><ul><li>Keys to success: </li></ul><ul><ul><li>Public Private Partnership </li></ul></ul><ul><ul><li>Mobilization of local stakeholders in community, government, business, academia </li></ul></ul>
    23. 23. Cambridge, Massachusetts <ul><li>Comprehensive energy audits for Cambridge buildings (generally for free) </li></ul><ul><li>Up to 30% reductions in energy bills </li></ul><ul><li>Energy efficiency upgrades with no up front cash required </li></ul><ul><li>Sponsored by the City of Cambridge and NSTAR </li></ul><ul><li>GOAL:  reduce energy use in Cambridge by an average of 10% [and about 15% (50 MW) of peak use] in next few years by promoting the adoption of energy efficiency technologies and behaviors </li></ul><ul><li>Collaboration with lenders, ESCOs, local businesses, citizens </li></ul><ul><li>Involvement from Alliance Associate Conservation Services Group </li></ul>
    24. 24. Municipal Heating Reform: Ukraine <ul><li>3-year project launched Feb. 2009 </li></ul><ul><li>No upgrade to municipal heat generation/ transportation facilities in +10 years  60% waste </li></ul><ul><li>Raise awareness, cooperation, understanding among government, heat providers and consumers of communal services </li></ul><ul><li>First large-scale heating energy saving campaign conducted in the Ukraine </li></ul>Soviet poster promoting electric power conservation: “Conserve Electric Power! One percent of the electric power saved by an industrial plant is equal to the consumption of 2000 apartments.”
    25. 26. What is the potential and challenge for Israel? <ul><li>According to a November 2009 McKinsey analysis: </li></ul><ul><ul><li>BAU: GHG emissions will double by 2030 </li></ul></ul><ul><ul><li>Potential to Reduce Growth by 2/3 with Technical Abatement Measures </li></ul></ul><ul><ul><ul><li>No impact on consumers quality of life </li></ul></ul></ul><ul><ul><ul><li>Total net cost of measures = ZERO (many are net positive </li></ul></ul></ul><ul><ul><li>Abatement potential via energy efficiency: </li></ul></ul><ul><ul><ul><li>Improved fuel efficiency of motor vehicles </li></ul></ul></ul><ul><ul><ul><li>Increased efficiency in new buildings </li></ul></ul></ul><ul><ul><ul><li>Efficient lighting and lighting control systems </li></ul></ul></ul><ul><ul><ul><li>Residential retrofits with improved insulation measures </li></ul></ul></ul>
    26. 27. What can be done here? <ul><li>Israeli government must take four key steps to realize the described potential: </li></ul><ul><li>Establish ambitious national GHG abatement goals </li></ul><ul><li>Formulate a national Low Carbon Growth Plan (LCGP) - that defines the levers, the mechanism and the timing of implementation </li></ul><ul><li>Translate the national abatement plan into detailed operational measures including ways to incentivize financing of the upfront investment </li></ul><ul><li>Establish a central body to monitor progress in implementation and provide a fact base for ongoing political and technical decisions </li></ul>
    27. 28. EE: A Trend Not a Fad <ul><li>“ To control our own destiny, America must develop new forms of energy and new ways of using it. This is not a challenge for government alone…it is a challenge for all of us.” President Barack Obama </li></ul>
    28. 29. <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>Honorary Government Co-Chairs Industry Chair Vice Chairs </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>Christopher B. Curtis President & CEO, N.A. Operating Div. & Buildings Business, Schneider Electric Rep. Edward Markey James E. Rogers Chairman, President & CEO, Duke Energy Robert J. Dixon Sr. VP & Global Head Efficiency & Sustainability, Building Automation, Siemens Building Technologies Inc. David Szczupak EVP, Global Product Organizations, Whirlpool Corporation Nobuo Tanaka Executive Director, IEA Sen. Mark Pryor
    29. 30. Questions? Thank you! Contact information: Kateri Callahan [email_address] +1-202-530-2219