PROJECT EASY GREEN

Johnson Controls released its fifth annual survey, 2011 Energy Efficiency Indicator: Global Results, which takes a birds eye view of the international state of energy efficiency.

This year, there were more than 3,800 respondents from around the world — a mix of C-level execs, building owners, vice presidents and facility managers. Over half of the participants were in the commercial sector, along with industrial and institutional organizations represented.

Many of the responses weren’t that different than last year, with just a moderate increase in awareness and action on energy efficiency topics. There is an increased emphasis on managing energy, but there are also challenges.

• Not surprisingly, China and India still rated the importance of energy management highest, with 88 percent of Indian respondents saying it was extremely or very important, compared to 66 percent for the U.S. and Canada. In every region, however, the importance continued to grow.
• The drivers for energy efficiency are still cost savings, although rebates and incentives played a more important this year than last year. However, for the first time, energy security, especially in the eyes of the Chinese, Indians and Europeans — was listed as one of the top three reasons. Here in the U.S., public image held the number three spot — an interesting diversion from other regions since we saw the return of $100 barrels of oil and Obama has called for an end to our cycles of shock and trance on energy security.
• Last year, most respondents thought energy prices would creep up. That holds true for 2011, with more than 80 percent of participants in every region saying prices will rise. The average guess at how much was about 11 percent, compared to 9 percent for last year.
• Incentives gained market traction this year, especially the influence of government incentives.
• One of the biggest areas of changing perceptions was green building certification. The figure of respondents with at least one green-certified building jumped from 19 to 37 percent, with another 32 percent saying they’ve incorporated green building elements without formal certification. In Europe there has been energy benchmarking for years, something that’s just starting in the U.S. — which is likely to keep this figure rise in coming years.
• Lighting and HVAC improvements continue to lead the pack, but with behavioral improvements (we’re assuming that’s having people turn off their computers) and peak demand management just behind.
• Only 1 percent of building mangers over 500,000 sq. feet said that they had taken no energy efficiency measures in the past 12 months.
• Occupancy or photo sensors were second only to switching out lighting as the most popular measure to achieve energy efficiency. Close behind were adjusted HVAC controls, increasing awareness amongst occupants and replacing inefficient equipment before the end of its lifecycle.
• In the U.S., respondents were bullish on the future of lighting technologies, with nearly 60 percent saying it would have the great increase in market adoption in the next decades. Nearly every other region had about 35 percent of respondents pick lighting.
• China and the U.S. saw smart building technologies getting a lot of take-up in markets in the next 10 years, although only about a quarter of Europeans felt the same way.
• No surprise, lack of money topped the list as the top barrier to pursuing energy efficiency, with insufficient ROI coming in second with 19 percent saying it was a constraint. Capital costs were less of an issue in Indian and Chinese markets than they were in North America and Europe.
• Technical expertise was surprisingly seen as a bigger setback for China and India than Europe or the U.S.
• On a positive note, 76 percent of respondents have either an energy or carbon reduction goal. Just last year, about 30 percent did not know or had not prioritized their carbon strategy, and a 2010 survey of just North American businesses by Johnson Controls found that figure was closer to 40 percent.
• Almost half of the companies measure and record their energy usage at least weekly. However, that figure looks less rosy when the follow up reveals that only 15 percent review and analyze that information on a weekly basis. However, nearly half of the companies look at the data monthly.
• 84 percent of Chinese companies polled added personnel as part of their energy efficiency programs, compared to just 45 percent of the U.S.
• Internal capital continues to be the source of funds for upgrades, with three-quarters of respondents saying they will use internal budgets in the next two years.

OPower announced its plan to save a terawatt-hour of energy by the end of 2012, the equivalent of the average annual energy usage of 100,000 U.S. homes. The company says it’s already more than one-third of the way there.

The goal is lofty, but if the company continues to lock down utility clients at the rate it has in the last year, it’s certainly possible. However, stiff competition is coming on strong. Big players like Cisco, Google and General Electric all want to help consumers manage their home energy use. Other companies such as eMeter, EnergyHub and Tendril also have solutions to provide information to consumers. And that's just the (very) short list. 

If a recent White House policy framework becomes legislation, utilities could be required to provide information to their customers — which would open up a market that is currently fragmented. It’s unlikely, however, that there would be significant change in a notoriously slow industry within 18 months. OPower’s announcement also comes with a retooled website, where anyone who’s interested can watch the kilowatt hours add up and learn more about their offerings.

–ZETA Communities, which builds affordable, net-zero energy homes, broke ground on a 22-home, net-zero-energy community. The project, known as Tierra del Sol, is in Stockton, Calif. and was developed by a local non-profit, Visionary Home Builders. ZETA was chosen because its modular buildings can be built quicker and for lower cost than traditional buildings. The homes are estimated to save the residents up to $2,000 per year on their utility bill from Pacific Gas & Electric.

The company is also building other homes, primarily multifamily units — from townhouses to apartment buildings — in different parts of California. Modular homes, which are assembled in factories and then trucked out to the foundation where they will sit, are not nearly as popular in the U.S. as they are in other places such as Japan. Because they're made in a factory, they have tight fits for high indoor air quality and less construction waste. For now, it’s still a niche market, with a lot of players trying to sell both regular and green-minded prefab construction. A recent article in the New York Times looked at the newfound interest in prefab for commercial buildings.

If net-zero building requirements catch on in the U.S. the way they have in other regions, municipalities and building companies will be looking for affordable solutions. If ZETA can continue to drive prices down, it should be well positioned as the market expands. ZETA is also offering qualified workers a home-ownership assistance plan for this development.

The modular builder is one of the green building companies incubated by Marc Porat. Other companies include Serious Materials and CalStar Products, which makes green cement and bricks.

–The International Organization for Standardization has released its latest energy management system standard, ISO 50001, for commercial and industrial properties.

The standard, which is already planned for 22 pilot projects by the U.S. Department of Energy, is based on a “Plan-Do-Check-Act” process for continual improvement. The standard will be used as part of the Superior Energy Performance certification program for industrial facilities. It will replace ANSI/MSE 2000-2008 and be compatible with ISO 9001 (quality management) and ISO 14001 (environmental management).

ISO 50001 is designed to include facilities, equipment, systems, processes and personnel, according to the DOE. It goes beyond the building itself, helping companies to find efficiency in the supply chain and create transparency on how energy resources are managed. 

It also goes much further than a one-time upgrade. “The focus is on continual improvement of energy performance, including operations over time.” said Aimee McKane, a researcher in the Environmental Energy Technologies Division of Lawrence Berkeley National Laboratory, who had a role in developing the standard.

Tendril recently closed its first deal Down Under, with a pilot involving 5,000 customers of Origin Energy, one of Australia's largest integrated energy companies.

Starting in June, Origin will deploy Tendril Energize, a suite of applications developed following the GroundedPower acquisition, that will deliver tailored energy use information via a web portal, smart phones and mailings (electronic and paper).

The Australian market has a lot going for it. The bulk of the country is deregulated and so retailers have to fight for their customers. The average churn rate is 20 percent, according to Phil Craig, General Manger of Origin Retail. “So we essentially have to replace our customer base every five years.” That’s no small feat when Origin’s gas and electricity customers are about 4.6 million people in a country of just more than 22 million residents.

There are a lot of factors that make Australia a prime target for consumer energy management tools. First of all, Craig said bills are sent out every three months. Yes, you read that correctly — bills only go out quarterly. Sticker shock is a common problem.

Smart meters are also being deployed across the state of Victoria, and Craig said that within a decade they should be everywhere in Australia. Aussies love electronics as much as any other developed nation, but they are fiercely more aware of environmental issues than most Americans. About half a million of Origin’s customers pay for green power. Prices are also already high; Craig estimated customers pay somewhere around $0.20AUS per kWh during off-peak periods in Victoria.

The purpose of the pilot is not to change behavior or to get consumers with smart meters into demand response programs, but simply to give information. Origin is trying to understand how customers will respond if the information goes out in a variety of ways. Origin is hoping the pilot will provide some answers so that it can find new ways to appeal to customers — and to retain current customers. “When we talk about utilities and our view of the utility of the future, we see Origin fitting squarely in there,” said Adrian Tuck, CEO of Tendril. “We see customers being very central.”

The utility is already offering residential solar installations, with more than 50,000 under its belt. Tendril has already expressed interest in integrating solar PV data into its offerings.

Trying to create a better relationship with the customer is central to Origin, because it has to be to survive as a business in the Australian market. “Twenty percent churn rate is very expensive to maintain,” said Craig. One of the objectives of the pilot is to create trust with consumers, something that seems to be lacking with utilities worldwide.

As for the choice of Tendril, Origin saw a company that it could grow with into the future. “I imagine there’ll be a lot of platforms over time,” he said, “but for now, Tendril seems like the most advanced.”

The pilot is expected to continue through the end of this year. If the concept is proved out, Craig said they would likely then put together programs to offer to the entire customer base with more complex offerings that customers can choose to participate in. “We’ve kind of always been a solutions-based retailer rather than just a commodity-price retailer,” said Craig. “We’re trying to find solutions for the customer.”