Developing a Green Bond Fund
strategy to fund university & NREN
infrastructure and networks
October 2016
Bill St. Arnaud
B...
Executive Summary
• Green Bond Funds are becoming an increasing popular way to pay for new
university infrastructure and r...
Green Bond Funds
• Fixed-term investments designed to create steady, if unspectacular, returns by lending money
to sustain...
How to Raise Trillions for Green
Investments
• NYTimes
– http://mobile.nytimes.com/2016/09/20/opinion/how-to-raise-trillio...
Green Bonds for Universities
• To issue a Green Bond university must articulate business case for energy savings that will...
Complete Implementation Guidebook
• Combines the expertise of energy professionals and college
administrators from dozens ...
CSA Green IT Protocol
• To qualify for Green Bond or Revolving
Door Funds ICT project must adhere to a
GHG reduction proto...
Role of NRENs
• NRENs provide network solutions to reduce energy and GHG
consumption on campus, e.g.
– Connectivity to clo...
Biggest Challenge
• Most university IT departments do not pay for electrical
consumption
– Usually facilities department p...
R&E biggest consumer of electricity in
most jurisdictions
Australian Computer Society Study
http://www.acs.org.au/attachme...
The ICT energy consumption in
higher-ed
• Campus computing 20-40% electrical energy consumption on most
campuses
– Studies...
Possible Business Models
• There are a range of outcomes and solutions to reduce energy consumption
– Decision factors inc...
Why de-couple from the Grid?
1. It saves money
– Cost of solar power cheaper than grid
power
– Deutsche Bank predicts sola...
Research Challenge – University Building and
services powered with renewable energy only
• How do you provide mission crit...
Some real world solutions and
examples
15
MIT to build data center independent
of the electrical grid
• The data center will be managed and funded by the four
main ...
Solar powered student cell phone and
computer charging stations
17
Street-charge.com
eVehicle energy storage and micro
grids for university
18
UCSD 2nd life battery program
University Delaware use of eVehicl...
Research Initiatives- Self Reliant
Internet
• Building an Internet
architecture powered solely
with renewable power
• Virt...
Internet Powered at the Edge
Passive Optical
Splitter
TDM or WDM
return
Aggregator
(AOL or RBOC))
Google
Neighborhood
Colo...
GreenStar Network
World’s First Cloud/Internet Powered solely by renewable energy independent of the
electrical grid
Cloud...
Virtualisation Applied to Networks
VR2
A DB C
ii) Path of Traffic after Virtual Router Migration
Host A
Host B
VR3VR1 VR4
...
Research Initiatives-Energy Internet
• With SDN-P it is assumed that many energy consuming devices power have their own
lo...
The benefits of challenges of SDN-P for
NRENs and data centers
• The Benefits:
– Providing dynamic workload redistribution...
The role of eVehicle in Future Network
Architectures
• With dynamic mobile charging, the
eVehicle can be charged as it is ...
Cyber-infrastructure in a Carbon Constrained World
http://net.educause.edu/ir/library/pdf/ERM0960.pdf
Let’s Keep The Conversation Going
E-mail
Blogs
http://green-broadband.blogspot.com
Twitter
http://twitter.com/BillStArnaud...
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Green bond fund opportunities for NRENs and universities 2016

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Describes the process for Universities and NRENs to fund network and computing infrastructure through Green Bond or Revolving Door Funds

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Green bond fund opportunities for NRENs and universities 2016

  1. 1. Developing a Green Bond Fund strategy to fund university & NREN infrastructure and networks October 2016 Bill St. Arnaud Bill.st.arnaud@gmail.com
  2. 2. Executive Summary • Green Bond Funds are becoming an increasing popular way to pay for new university infrastructure and research • Green Bond Funds are loans from financial institutions, funding councils or university endowments that are paid back through energy savings in new building design, use of renewable power, etc • ICT consumes 20-40% of electrical power at R&E institutions. Low hanging fruit in terms of cost savings through reduction of energy consumption • NRENs role is to provide network solutions to reduce university ICT energy consumption and CO2 emissions and aggregate multiple projects into a single bond offering • Research into new Internet and Energy network architectures will also be required 2
  3. 3. Green Bond Funds • Fixed-term investments designed to create steady, if unspectacular, returns by lending money to sustainable energy or infrastructure projects. • Green bond market is exploding. In 2014 alone, more than $35-billion (U.S.) worth of bonds specifically designated as “green” were sold, up from $11-billion in 2013. The 2015 estimate is $100-billion. – http://www.theglobeandmail.com/globe-investor/green-bond-market-is-exploding-but-limited-to-individual- investors/article22221476/ • Green bonds provide investors with a way to earn tax-exempt income and gain the satisfaction of knowing the proceeds of their investment will be used in a positive manner. • Several universities have already issued Green Bond Funds for new buildings and research infrastructure e.g. Indiana, Cincinnati, etc • Several funding councils and endowments are looking at Green Bond Funds as a vehicle to fund networks and education infrastructure e.g. University Presidents Climate Commitment 3
  4. 4. How to Raise Trillions for Green Investments • NYTimes – http://mobile.nytimes.com/2016/09/20/opinion/how-to-raise-trillions-for-green- investments.html • China has declared green finance a “strategic imperative.” • China recently began an initiative to raise private capital through the sale of green bonds. After just six months, these bonds now account for 40 percent of the global market. Recent guidelines issued by the government outline an ambitious road map for creating green lending, environmental stress tests, benchmarks to ensure credibility of green investments, disclosure requirements and innovative public private partnerships. • NRENs and universities need to start to develop strategic plans on how to use Green Bond or Revolving Door Funds to pay for network and computing infrastructure • Full implementation Guidebook for universities to implement Green Revolving Fund – http://greenbillion.org/resources/ 4
  5. 5. Green Bonds for Universities • To issue a Green Bond university must articulate business case for energy savings that will enable payback of bond • ICT is low hanging fruit in terms of energy savings and using solar power and provides easiest business case for acquiring Green Bond • CSA has developed Green IT protocol to allow networks and data centers to qualify for Green Bonds http://shop.csa.ca/en/canada/climate-change/ict-protocol-version- 1/invt/27033222012 • Green Bond or Green Revolving Funds can be issued by financial institutions, endowment funds and/or funding councils • Example: The University Billion Dollar Green Challenge – http://greenbillion.org/the-challenge/ • Complete how to guide book for universities – http://greenbillion.org/resources/ 5
  6. 6. Complete Implementation Guidebook • Combines the expertise of energy professionals and college administrators from dozens of institutions to establish best practices for designing and managing green revolving funds (GRFs). • The resource is a co-publication of the Sustainable Endowments Institute (SEI) and the Association for the Advancement of Sustainability in Higher Education (AASHE), and was developed with the consulting firm ICF International. • The full version of the guide provides both a broad overview of the green revolving fund model as well as expanded technical guidance on measuring project savings, conducting accounting procedures, and evaluating fund analytics. • More case studies and solutions to common obstacles provide a higher level of detail for administrators looking to design and implement a GRF. Additionally, the guide still includes sections on the components of a GRF, the process of designing a fund, and information about joining the Billion Dollar Green Challenge. 6 http://greenbillion.org/resources/
  7. 7. CSA Green IT Protocol • To qualify for Green Bond or Revolving Door Funds ICT project must adhere to a GHG reduction protocol • New equipment or process must demonstrate energy efficiency and/or direct GHG reduction – http://shop.csa.ca/en/canada/climate- change/ict-protocol-version- 1/invt/27033222012 7 Scope This protocol provides guidance for estimating the emission reductions that could result from the provision or sourcing of low or zero carbon information and communication technology (ICT) services. This is an increasingly important topic not only because ICT has growing environmental impacts, but also due the technical complexities which underlie the delivery of ICT as a service, especially in respect of the growing use of cloud computing and the provision of ICT services over the internet. The protocol can be used both for creating verifiable emission reductions for carbon trading, and the quantification and reporting of related low or zero carbon ICT initiatives within corporate sustainability reports.
  8. 8. Role of NRENs • NRENs provide network solutions to reduce energy and GHG consumption on campus, e.g. – Connectivity to cloud and HPC providers that use renewable energy – Virtualization and remote management of campus firewalls, WiFi, routers etc – Design and consultation of building campus networks that use renewable energy • NRENs can combine many small energy efficient ICT projects at different campuses and aggregate into a single bond issue – Similar to a mortgage backed security (without the negative aspects) • NRENs manage conformance of project to Green Standards (e.g. CSA) and negotiate Green Bond with underwriters 8
  9. 9. Biggest Challenge • Most university IT departments do not pay for electrical consumption – Usually facilities department pays for electricity and does not breakout electrical consumption of ICT • NREN and CIO must negotiate with facilities department to make payments on green bond fund related to the reduction in energy consumption from more efficient ICT equipment and network infrastructure • Well quantified measurements and documentation essential 9
  10. 10. R&E biggest consumer of electricity in most jurisdictions Australian Computer Society Study http://www.acs.org.au/attachments/ICFACSV4100412.pdf Per employee Per sector
  11. 11. The ICT energy consumption in higher-ed • Campus computing 20-40% electrical energy consumption on most campuses – Studies in USA, UK and The Netherlands – http://goo.gl/k9Kib • Closet clusters represent up to 15% of electrical consumption – http://isis.sauder.ubc.ca/research/clean-technology-and- energy/green-it/ • Campus data center alone represents 8-20% of electrical consumption – http://www.iisd.org/publications/pub.aspx?pno=1341
  12. 12. Possible Business Models • There are a range of outcomes and solutions to reduce energy consumption – Decision factors include degree of risk, tolerance to risk, etc • The simplest is to decouple from the grid and deploy local independent sources of electricity (e.g. micro grids) that are not dependent on fossil fuel deliveries and are loosely coupled to electrical grid such as solar panels and windmills – Many companies will pay for capital cost in return for guaranteed purchase of power – Power from local renewable power sources can be sold to grid under Feed In Tariff (FIT) programs – UCSD saves $850K per month because they deployed their own micro grid • http://mobile.bloomberg.com/news/2013-10-17/ebay-to-ellison-embrace-microgrids-in- threat-to-utilities.html • Next step is to develop an energy routing architecture and policy – Local independent renewable power will unlikely be sufficient for most institutions so power will need to be routed in a priority basis – Using SDN-P to integrate micro grids with data networks on campus and NRENs http://goo.gl/SFaW6p 12
  13. 13. Why de-couple from the Grid? 1. It saves money – Cost of solar power cheaper than grid power – Deutsche Bank predicts solar will be cheaper than electricity from grid in 80% of the world by 2017 – http://cleantechnica.com/2015/01/14/deu tsche-bank-predicts-solar-grid-parity-80- global-market-2017/ 2. It provides for greater resiliency of electricity supply 3. It reduces GHG emissions 4. May be forced to use solar power if governments get serious about global GHG treaty 13 3 hours of sunshine hitting the plant equals our total annual energy consumption
  14. 14. Research Challenge – University Building and services powered with renewable energy only • How do you provide mission critical services when energy source is unreliable? – Ebbing wind or setting sun • Back up diesel are not an option because they are not zero carbon and power outages can last for days or weeks • Need new energy delivery architectures and business models to ensure reliable service delivery – R&E networks and clouds can play a critical role – Not so much in energy efficiency, but building smart solutions that adapt to availability of renewable power
  15. 15. Some real world solutions and examples 15
  16. 16. MIT to build data center independent of the electrical grid • The data center will be managed and funded by the four main partners in the facility: the Massachusetts Institute of Technology, Cisco Systems, the University of Massachusetts and EMC. • It will be a high-performance computing environment that will help expand the research and development capabilities of the companies and schools in Holyoke MA – http://www.greenercomputing.com/news/2009/06/11 /cisco-emc-team-mit-launch-100m-green-data-center • Huge energy cost savings in being disconnected from electrical grid • Computers connected to universities in Boston by dedicated high speed optical fiber
  17. 17. Solar powered student cell phone and computer charging stations 17 Street-charge.com
  18. 18. eVehicle energy storage and micro grids for university 18 UCSD 2nd life battery program University Delaware use of eVehicles for power
  19. 19. Research Initiatives- Self Reliant Internet • Building an Internet architecture powered solely with renewable power • Virtually all routing and forwarding done at edge using local solar panels – E.g. aBitCool • RPON – reverse passive optical networks, distributed FIBs 19 http://www.slideshare.net/apnic/a bitcool-a-vast-array-of-smallscale- service-providers-with-gigabit- access-by-tony-hain-apnic-38- apops-3
  20. 20. Internet Powered at the Edge Passive Optical Splitter TDM or WDM return Aggregator (AOL or RBOC)) Google Neighborhood Colo Node OXC Customer Controlled or Owned Fiber Active laser & optional CWDM at customer premises Only the contracted SP provides return signal Yahoo Service provider can be several km away Active laser and CWDM at customer premises. Customer controls routing of lambdas Neighbourho od Colo OXC Service Provider A Service Provider B Edge router with distributed FIB
  21. 21. GreenStar Network World’s First Cloud/Internet Powered solely by renewable energy independent of the electrical grid Cloud Manager Host Resource Cloud Manager Network Manager VM Mantychore2 Host Resource Canadian GSN Domain European GSN Domain Dynamically Configure IP Tunnel • Shudown VM • Copy Image • Update VM Context • Start VM Export VM VM VM Internet Notify EU Cloud Manager Cloud Proxy Host Cloud Proxy Lightpath Optical switch Optical switch Shared storage Shared storage Host INTEC UGhent
  22. 22. Virtualisation Applied to Networks VR2 A DB C ii) Path of Traffic after Virtual Router Migration Host A Host B VR3VR1 VR4 Virtual Router Migration Sleeping Router VR2 A DB C i) Path of Traffic before Virtual Router Migration Host A Host B VR3VR1 VR4 Physical Router Platform Virtual Router (VR) Instance Optical Transport Switch Optical Lightpath (A  D) Host Physical Link Y. Wang, E. Keller, B. Biskeborn, J. van der Merwe, and J. Rexford, “Virtual routers on the move: live router migration as a networkmanagement primitive” in Proc. ACM SIGCOMM, 2008 A key constraint is to maintain the logical IP topology Use a combination of virtual router migration, infrastructure sleeping together with traffic grooming in the optical layer
  23. 23. Research Initiatives-Energy Internet • With SDN-P it is assumed that many energy consuming devices power have their own local power source e.g: – WiFi spot with its own solar panel – Backup battery power on computer – Electric vehicle with its own battery bank – https://www.researchgate.net/publication/267037505_Software_Defined_Networks_for_Electrical _Power_Distribution_over_Data_Channels_%28SDN-P%29 • Many possible virtual and real power circuits. – PoE, USB, Traditional 110/220, 48V Dc,Pulse power over Cat 5 – Power routing across devices following path of virtual power circuit • Ideal for existing intelligent networked devices like computers, switches, routers, servers, Wifi hot spots , electric vehicle charging stations, etc – Most of these devices have their own on board storage and so techniques such as round-robin power distribution are possible • Network engineers & researchers have to start thinking how to deploy networks that are powered solely by solar power – http://www.theglobeandmail.com/report-on-business/rob-commentary/rob-insight/an-earth-day- look-at-the-sunny-state-of-solar/article18101176/#dashboard/follows/ … 23
  24. 24. The benefits of challenges of SDN-P for NRENs and data centers • The Benefits: – Providing dynamic workload redistribution – Providing dynamic reallocation of resources to optimize the use of power and finding the least costly power – Providing resource-consumption planning, allowing for bulk purchases of power and demand planning – Automating responses to environmental changes or other trigger events – Adjusting to changing power needs based on application demands • Key takeaways from this report include: – Because of software-defined power’s ROI and reliability benefits, it can pay for itself in a short time. – Innovative companies are leveraging software-defined power to increase reliability and reduce costs. 24 The benefits and challenges of software-defined power SDN-P http://dlvr.it/5TGrR5
  25. 25. The role of eVehicle in Future Network Architectures • With dynamic mobile charging, the eVehicle can be charged as it is travelling along the highway using power from roadside solar panels and/or windmills – Technology already in use for public bus transportation in various cities • eVehicle can then be used to deliver this energy as a backup or primary power source to the network, rather than consuming electricity at destination • eVehicle becomes competitor to electrical grid for delivery of renewable power to homes, business & networks • Ideal application for autonomous eVehicles – http://www.slideshare.net/bstarn/dynamic- charging-latest-developments-17234454
  26. 26. Cyber-infrastructure in a Carbon Constrained World http://net.educause.edu/ir/library/pdf/ERM0960.pdf
  27. 27. Let’s Keep The Conversation Going E-mail Blogs http://green-broadband.blogspot.com Twitter http://twitter.com/BillStArnaud Bill.St.Arnaud@gmail.com Bill St. Arnaud is a R&E Network and Green IT consultant who works with clients on a variety of subjects such as green data centers and networks. He also works with clients to develop practical solutions to reduce GHG emissions from ICT (See http://green- broadband.blogspot.com/) .

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