1. (CDM) Conservation & Demand Management:
The Big Picture
Generating Value Today,
Enabling the Low-Carbon Economy Tomorrow
Tom Rand, P.Eng., Ph.D.
Cleantech Lead Advisor, MaRS Discovery District
Nov. 4, 2010
2. The Low Carbon Economy
Will be difficult
Is necessary & urgent
www.kickthefossilfuelhabit.com January 29, 20152
Is possible
3. The Low Carbon Economy
www.kickthefossilfuelhabit.com January 29, 20153
Business-as-usual commits us to 2 degrees of
warming by 2021.
Climate Change – Where we were.
“ climate change … could alter the way we live in the
most fundamental way … It is life itself that we battle
to preserve.“
Margaret Thatcher, to the UN General Assembly, 1989.
Climate Change – Where we are.
“ The nation that leads the world in creating a new
clean energy economy will be the nation that leads the
21st century global economy.“
President Obama, 2009
Climate Change – Where we’re going.
11. The Energy Internet
www.kickthefossilfuelhabit.com January 29, 201511
Continental –
Grid-
Balancing,
Reliability.
Regional –
Distributed
Production.
Local –
Demand
Reduction
Local –
Demand
Reduction
Three Scales of Network
18. www.kickthefossilfuelhabit.com January 29, 201518
Planet Traveler:
Performance
Technology Energy Reductions
Geo-exchange 40 %
Solar Thermal 7.5 %
Power-pipetm 7.5%
LED Lighting/switching 5%
Total: 60%
Cost = 4% of buildings value
6.5 year payback, cash-flow positive from day one
22. www.kickthefossilfuelhabit.com January 29, 201522
Planet Traveler:
Performance
Technology Energy Reductions
Geo-exchange 40 %
Solar Thermal 7.5 %
Solar PV 15%
Power-pipetm 7.5%
LED Lighting/switching 5%
Total: 75%
Cost = 5% of buildings value
6.5 year payback, cash-flow positive from day one
5% of capital unlocks 75% reduction
at a profit.
23. Demand Reduction
www.kickthefossilfuelhabit.com January 29, 201523
Energy
Efficiency
Peak
Reduction
Demand
Response
Local
Energy
Production
Cost Savings
Income
Independent
intelligence
Responsive
intelligence
The Value Proposition
CDM is not yesterday’s conservation (noble, Jimmy Carter).
Me VC, behavioural change needs economic signal.
It’s about VP to you the energy users. more profitable, better use of your assets.
part of a bigger picture.
CDM is first step largest infrastructure build in human history.
Climate change – we will decarbon our economy.
Biggest challenge of our time, biggest economic opportunity.
Build Energy Internet. New patterns of production/use.
CDM is necessary for the Energy Internet.
Energy Internet is necessary to move to low-carbon economy.
Your energy assets = front line of economic opportunity.
This is your chance – driven by clear value propositions – to play a role you can be proud of, shareholders will be happy about.
Contrary to FOX News – necessary and urgent – environmental, moral and economic necessity.
Contrary to many on the energy & financial side – its possible.
Contrary to many who do advocate action/acknowledge cc – is very difficult due to scale, displace existing stock of capital equipment, difficulty of the international politics and co-operation and - the thing many on the “take action side” are unwilling to say : will be expensive!
Following Nick Stern – much, much more expensive to follow business as usual.
Possible : have the technology, policy tools, clear moral, political and economic incentives – if discussed in the right way.
Take decades, long transition.
Natural gas is important transition fuel, one reason Enbridge is partner.
Also: green gas, largest operating PV plant in the world.
Some companies – Enbridge, Transalta – are doing the hard work of managing this transition, playing an active role.
Scale and 24 hour production
Solar farms here in Ontario, 80 MW in Sarnia
WIND – SOLAR – CORRELATION WITH WIND – needs storage and Demand Reduction
Scale and 24 hour production
Solar farms here in Ontario, 80 MW in Sarnia
WIND – SOLAR – CORRELATION WITH WIND – needs storage and Demand Reduction
Scale and 24 hour production
Solar farms here in Ontario, 80 MW in Sarnia
WIND – SOLAR – CORRELATION WITH WIND – needs storage and Demand Reduction
Scale and 24 hour production
Solar farms here in Ontario, 80 MW in Sarnia
WIND – SOLAR – CORRELATION WITH WIND – needs storage and Demand Reduction
Scale and 24 hour production
Solar farms here in Ontario, 80 MW in Sarnia
WIND – SOLAR – CORRELATION WITH WIND – needs storage and Demand Reduction
Scale and 24 hour production
Solar farms here in Ontario, 80 MW in Sarnia
WIND – SOLAR – CORRELATION WITH WIND – needs storage and Demand Reduction
3 scales of network
Continental – really leverage wind, build reliability at systemic level.
Regional – two-way streets; energy units are like network packets – can be associated with carbon content.
Demand Response – Christmas card factory.
matching supply to demand – this ENABLES the rest of the energy internet.
Efficiency is not conservation – same result, less energy.
Carbon efficiency one step further – same result, less carbon-based energy.
All IEA scenarios include approx 50% reduction in emissions from efficiency.
Only way this will happen in a free market –increased costs of energy.
Opportunity is not just allowing North America to be more competitive, but the developing world.
( Canada = $70 per Mbtu, Europe = $200/Mbtu )
Massive exporting market of expertise and technology.
As many opportunities as there are processes.
Efficiency is not conservation – same result, less energy.
Carbon efficiency one step further – same result, less carbon-based energy.
All IEA scenarios include approx 50% reduction in emissions from efficiency.
Only way this will happen in a free market –increased costs of energy.
Opportunity is not just allowing North America to be more competitive, but the developing world.
( Canada = $70 per Mbtu, Europe = $200/Mbtu )
Massive exporting market of expertise and technology.
As many opportunities as there are processes.
Efficiency is not conservation – same result, less energy.
Carbon efficiency one step further – same result, less carbon-based energy.
All IEA scenarios include approx 50% reduction in emissions from efficiency.
Only way this will happen in a free market –increased costs of energy.
Opportunity is not just allowing North America to be more competitive, but the developing world.
( Canada = $70 per Mbtu, Europe = $200/Mbtu )
Massive exporting market of expertise and technology.
As many opportunities as there are processes.
Efficiency is not conservation – same result, less energy.
Carbon efficiency one step further – same result, less carbon-based energy.
All IEA scenarios include approx 50% reduction in emissions from efficiency.
Only way this will happen in a free market –increased costs of energy.
Opportunity is not just allowing North America to be more competitive, but the developing world.
( Canada = $70 per Mbtu, Europe = $200/Mbtu )
Massive exporting market of expertise and technology.
As many opportunities as there are processes.
Efficiency is not conservation – same result, less energy.
Carbon efficiency one step further – same result, less carbon-based energy.
All IEA scenarios include approx 50% reduction in emissions from efficiency.
Only way this will happen in a free market –increased costs of energy.
Opportunity is not just allowing North America to be more competitive, but the developing world.
( Canada = $70 per Mbtu, Europe = $200/Mbtu )
Massive exporting market of expertise and technology.
As many opportunities as there are processes.
Efficiency is not conservation – same result, less energy.
Carbon efficiency one step further – same result, less carbon-based energy.
All IEA scenarios include approx 50% reduction in emissions from efficiency.
Only way this will happen in a free market –increased costs of energy.
Opportunity is not just allowing North America to be more competitive, but the developing world.
( Canada = $70 per Mbtu, Europe = $200/Mbtu )
Massive exporting market of expertise and technology.
As many opportunities as there are processes.
Efficiency is not conservation – same result, less energy.
Carbon efficiency one step further – same result, less carbon-based energy.
All IEA scenarios include approx 50% reduction in emissions from efficiency.
Only way this will happen in a free market –increased costs of energy.
Opportunity is not just allowing North America to be more competitive, but the developing world.
( Canada = $70 per Mbtu, Europe = $200/Mbtu )
Massive exporting market of expertise and technology.
As many opportunities as there are processes.
Efficiency is not conservation – same result, less energy.
Carbon efficiency one step further – same result, less carbon-based energy.
All IEA scenarios include approx 50% reduction in emissions from efficiency.
Only way this will happen in a free market –increased costs of energy.
Opportunity is not just allowing North America to be more competitive, but the developing world.
( Canada = $70 per Mbtu, Europe = $200/Mbtu )
Massive exporting market of expertise and technology.
As many opportunities as there are processes.
Efficiency is not conservation – same result, less energy.
Carbon efficiency one step further – same result, less carbon-based energy.
All IEA scenarios include approx 50% reduction in emissions from efficiency.
Only way this will happen in a free market –increased costs of energy.
Opportunity is not just allowing North America to be more competitive, but the developing world.
( Canada = $70 per Mbtu, Europe = $200/Mbtu )
Massive exporting market of expertise and technology.
As many opportunities as there are processes.
Efficiency is not conservation – same result, less energy.
Carbon efficiency one step further – same result, less carbon-based energy.
All IEA scenarios include approx 50% reduction in emissions from efficiency.
Only way this will happen in a free market –increased costs of energy.
Opportunity is not just allowing North America to be more competitive, but the developing world.
( Canada = $70 per Mbtu, Europe = $200/Mbtu )
Massive exporting market of expertise and technology.
As many opportunities as there are processes.
