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CleanTechies.com Contributor

The California Shale Bubble Just Burst

The great hype surrounding the advent of a shale gas bonanza in California may turn out to be just that: hype. The U.S. Energy Information Administration (EIA) – the statistical arm of the Department of Energy – has downgraded its estimate of the total amount of recoverable oil in the Monterey Shale by a whopping 96 percent. Its previous estimate pegged the recoverable resource in California’s shale formation at 13.7 billion barrels but it now only thinks that there are 600 million barrels available.

The estimate is expected to be made public in June.

The sharply downgraded numbers come amid a heated debate in California over whether or not the state should permit oil and gas companies to use hydraulic fracturing (“fracking”) – the process in which a combination of water, chemicals and sand are injected underground at high pressure in order to break apart shale rock and access trapped natural gas.

Fracking involves enormous quantities of water; an average of 127,127 gallons of water were required to frack a single California well in 2013, according to the Western States Petroleum Association. That’s equivalent to 87 percent of the water a family of four uses in an entire year.

California is home to an enormous agricultural industry, and with the Monterey Shale located beneath the fertile Central Valley, fracking is going to compete with agriculture, ranching and other commercial and residential users for water use. With 100 percent of California now in a state of “severe” drought, critics of fracking have gained traction in the debate over the extent to which the government should allow oil and gas companies to move in.

On March 20, Santa Cruz became the first county in California to ban fracking, the biggest win by environmental activists thus far in their campaign to rid the state of the practice. The move may have been symbolic though, since there isn’t much of a presence by the industry in that locality; it was more aimed at putting pressure on Governor Jerry Brown to stop fracking in the water-starved state. That follows a unanimous February vote by the city of Los Angeles to ban the practice, the largest city to do so in the country.

Indeed, activists are pushing for a statewide ban on fracking, and a bill to do just that is working its way through the state senate. It passed a committee vote in April, but faces an uncertain future. Brown supports fracking and has trumpeted its potential for state revenues. The state has projected that fracking could bring up to 2.8 million new jobs and boost state coffers by $24.6 billion each year. He signed a bill last year that tightened regulations on the industry but also set up a permitting regime that could allow the industry to move forward.

Although the topic has been highly controversial, the ramifications may not be as significant as previously believed, now that the federal government believes only a small fraction of the Monterey Shale’s reserves are accessible. The main reason for the downgrade was that the original 2011 estimate mistakenly assumed that California’s shale oil and gas could be recovered with as much ease as it is elsewhere in the country.

But the geology of the Monterey Shale is much more complex than in the Marcellus, Bakken, or Eagle Ford Shales – the three formations principally responsible for the surge in oil and gas production in the United States. The layers of shale in the Monterey are folded in such a way that drilling is difficult, and test wells thus far have come up disappointing.

The Los Angeles Times quoted a downbeat assessment from an official with the EIA. “From the information we’ve been able to gather, we’ve not seen evidence that oil extraction in this area is very productive using techniques like fracking,” said John Staub, a petroleum analyst with the EIA. “Our oil production estimates, combined with a dearth of knowledge about geological differences among the oil fields, led to erroneous predictions and estimates,” he added.

The oil and gas industry was quick to point out that the calculation could change once again if drillers could improve technology to access the Monterey. After all, no one saw the shale revolution coming only a few short years ago. But as Staub, the EIA analyst noted, for now oil and gas production in “the Monterey formation is stagnant.” And it could remain that way.

Article by Nicholas Cunningham, appearing courtesy Oilprice.com

05/22/2014 1 comment

Energy Efficiency

New Climate Assessment Is Wake-Up Call About Need for Energy Efficiency

written by CleanTechies.com Contributor

The federal government’s new climate assessment should serve as a wake-up call that spurs policymakers to promote energy efficiency and microgrid development.

The report, based on information from more than 300 experts, summarizes scientific research about the very real threat of climate change, bringing home its point with many recent examples of the effects of climate change.

“It is important that these findings and response options be shared broadly to inform citizens and communities across our nation,” said the report. “Climate change presents a major challenge for society. This report advances our understanding of that challenge and the need for the American people to prepare for and respond to its far-reaching implications.”

Helping Policymakers Understand

“The report provides a nice summary in the most graphically smart format to help people in different regions of the country, especially policymakers, understand not only what’s projected to come in terms of heat and severe weather but what the recent trends have been,” said Steve Winkelman, director of the Center for Clean Air Policy’s adaptation and transportation programs. ”It is hopefully an entrée into a variety of resources for the federal government to do assessment and planning and increase resiliency and response.”

Energy efficiency and microgrids play an important role in helping the US cope with climate change. For example, said Winkelman, buildings with better insulation and tight envelopes will be more secure. “When the power is out, they will maintain their temperatures. A better insulated building will help get people through a power outage.”

Onsite generation and microgrid options provide an opportunity to provide both efficiency and renewable energy – which help stem global warming – and protect people from power outages, he added.

A CCAP report, “Green Resilience: Climate Adaptation and Mitigation Synergies” quotes Johnson Controls as calling for grid-responsive, energy efficient, net positive and resilient buildings.

“Microgrids, supported by distributed energy generation, are a potential solution, as they allow decentralized energy distribution at a community scale,” said the CCAP report.

The report identifies potential pilot projects in Washington, D.C. and Boston that would involve adding resilience measures to green building projects, codes and policies. What’s more it calls for installing combined heat and power in hospital and university campuses as a first step toward microgrids.

The CCAP report also suggests that FERC modify policies to facilitate microgrids.

Read the CCAP report here: Green Resilience Report From CCAP

The bottom line: The federal government’s new climate assessment doesn’t pussy-foot around about the very real threat of global warming. And that should be good news for the energy efficiency industry, which provides multiple benefits: Not only does efficiency reduce the greenhouse gases that cause global warming, it can keep buildings comfortable longer during outages. And microgrids take this idea one step further, often providing emission-free alternative energy, plus an off-grid solution.

As Winkelman said, “I’m impressed with the administration putting out such strong, scientifically-backed work.” And it’s also impressive that the administration called for action in what hopefully will be a politically palatable manner.

What’s your take on energy efficiency, microgrids and climate change?

Article by Lisa Cohn, published under a cross licensing agreement with EnergyEfficiencyMarkets.com

05/20/2014 1 comment

Green Building

The Rebirth of the Light Switch

written by CleanTechies.com Contributor

“On and off like a light switch.” That’s the saying, anyway. But what if a light switch could do so much more than simply switch lights on and off? What would the saying be then?

Right now most tech commentators agree that it’s mobile devices that are set to become the new universal controller for the home. But what if the standard light switch, with its apparently out-of-date offerings of ‘on’ and ‘off’, could be brought firmly into the 21st century?

With domestic lighting products (such as the Hue) now offering homeowners the opportunity to do more with their lights, the traditional, binary switch needs to adapt or die. With products offering more than 16 million colors and thousands of functional operations, you might be forgiven for thinking this is the end – but it’s only just beginning.

In between smartphones with their millions of options and the humble light switch, a third option has emerged for homeowners – which is great news for those of us who aren’t quite ready to make the leap to controlling our lights using smartphones.

The Philips Hue Tap works with existing hue systems to control lights automatically, in the same way you can already do using the smartphone app. By replacing your existing light switch, you’ll not only be able to turn your lights on or off with a simple tap, you’ll also be able to change the light colors on demand to a pre-programmed scene just by tapping the button. A bit more than just ‘on and off’, then.

Now we can change the colors of lights with a tap, imagine what else might be on the horizon for the light switch. In the future light switches will be able to sense when you’re leaving one room and entering another, turning off or adjusting the lights in each room accordingly. We’ve already seen Wi-Fi enabled wooden houses and lamps that light up when our loved ones and friends across the globe are online; imagine how we could connect those with our light switches, tapping out messages to say ‘hello’ and ‘good night’ wordlessly.

The rebirth of the light switch also means the birth of great energy-saving solutions. The Philips Hue Tap operates with no energy consumption whatsoever, running entirely on kinetic energy from your fingers. It doesn’t even need wires or a power source. Are we looking at a future where the ‘light switch’ is no longer on the wall, but instead is as synonymous with ‘remote control’ as turning your TV on? Now, that really is the future calling.

“On and off like a light switch.” It’s time to come up with a new saying.

If you could do more than just turn lights on and off with your light switch, what would you do?

This post was contributed by: The Future Of Light – Philips Lighting
“We’ve been in the lighting business for over 100 years but if someone told us in 1891 that one day light would be controlled from the palm of our hand, we wouldn’t have been surprised. That’s because we’re always looking to tomorrow to understand how light will improve and influence our lives in the future. We know that the world needs more light but how this will be achieved and what it will look like is still undecided. Through the Future of Light, we will explore the global trends that are shaping innovation in lighting. We believe that smarter lighting will ensure a brighter future.”

05/13/2014 0 comment

Energy Efficiency

Interview: JP McNeill, CEO and Co-Founder of Renovate America

written by CleanTechies.com Contributor

Making the Energy Efficient Choice Affordable: PACENow’s David Gabrielson Talks with JP McNeill, CEO and Co-Founder of Renovate America.

David Gabrielson: JP, tell us about your background and how you got interested in PACE.

JP McNeill: Being a father and a spouse and wanting to promote sustainability led me into solar energy. I joined SunEdison, a company working on large scale solar PV projects for commercial, municipal and utility customers and worked with home rule municipalities that could write their own legislation to put assessments on properties in their jurisdictions, and subsequently issue bonds to fund large solar PV installations. This was prior to the first two PACE programs being launched in Berkeley and Palm Desert, CA. In 2008, once I learned about the passage of statewide PACE legislation in California, I left SunEdison and started Renovate America with the goal of creating a solution that would catalyze the mass adoption of EE/RE and water conservation measures at the household level. When home owners move forward with a project that saves them money, they realize that being more energy efficient is in their financial interest, and, ultimately, the concept of being green is not only good for the environment, but is also good for their pocket books. This realization changes people’s behavior further, when they consider what other things they can do to live more efficiently or sustainably. Thus, I think PACE can serve as a catalyst to live more sustainably.

DG: You are talking about community based awareness that comes out of individual homeowners making decisions in their best interest, and in turn sharing sustainable practices with their neighbors.

JM: David, one can make an argument that building a nuclear power plant or a PV system in the desert is a positive thing, but it doesn’t change the behavior at the household level. Putting a solar PV system on one’s home and seeing the impact that it has in terms of saving money, ultimately, results in making other decisions that create a more sustainable culture, which is what I want to be a part of.

DG: So you started in Riverside County and builtthe HERO program that has been successful. What you think is the key to this success?

JM: The HERO program is an energy efficiency financing program and these types of programs, whether they have been implemented by utilities, municipalities or public agencies, have been around for more than sixty years in North America and Europe. Operating any energy efficiency financing program means doing hundreds of things on a daily basis that impact the consumer experience. This covers the gamut from policies, processes, software, workforce training, marketing, etc. It is a culmination of doing many things really well that resulted in the success we have achieved. I’ll give you an example, last month, we handled 30,000 calls from property owners and contractors, received about 3,000 applications, and funded over 1,000 projects. There is a lot of interaction that goes on behind the scenes in order to create a better consumer experience and achieve success.

DG: You also made it simple for contractors, who are the key sales force in the residential market, to sell PACE funded energy efficiency and renewable energy upgrades.

JM: One can create a program with accurate documentation, but in order to achieve high levels of participation, it needs to be viewed as a consumer product. Contractors also need to view PACE as a product that can help them. Each property owner and contractor have certain expectations about how things should operate. Similarly, when we use cell phones or turn on a light in a room, we have certain expectations. So if a program is not aligned with a property owner’s and contractor’s expectations, neither party will use it. It requires a tremendous amount of work to build a program that meets consumer’s and contractor’s expectations.

DG: How do you market PACE to property owners?

JM: Homeowners want two things: first they want to know what options they have when it comes to home improvements. Secondly, they want to select the best product, the best contractor and the best financing option. In terms of getting the word out, we do some outreach to homeowners, but it’s difficult and expensive to do a lot of outreach to homeowners. Many homeowners call their bank to see what financing options are available to them. Contractors also inform homeowners what payment options exist, which also includes credit cards and HERO. HERO is a much better option than credit cards, because interest rates are lower, payments are fixed, interest is tax deductible and the payments stay with the property. Thus, we work with contractors to educate them on the benefits of HERO. From the property owner’s perspective, HERO protects them by ensuring that only contractors who are licensed, bonded and in good standing with the program can participate; only products that meet the U.S. Department of Energy Star minimum efficiency standards are available; permits must be pulled for all projects; the contractor must provide fair pricing; and the project must be completed and homeowner must be completely satisfied before payment is made. Unfortunately, if a homeowner uses a bank or credit card, none of these consumer protections exist.

DG: Have you put together a training program? If so, how many contractors have you trained?

JM: We have a certification program and a continuous training program for contractors. So far, over 5,000 people who have registered with the program, which includes field reps, technicians, office staff, and marketing staff. Also, we built partnerships with big box retailers: Lowes and Home Depot. The interaction with the contractor community is never ending. We have a team of people that work with contractors on a daily basis. Our team makes sure that contractors understand how to answer questions from property owners and when to use the call center.

DG: In the commercial arena, contractor training and certification seem to have brought great results in markets where this is being done. Are you seeing an 80/20 rule in action, 20% of contractors you train bring 80% of the leads?

JM: HERO is a new product so there is an adoption curve associated with it. The 80/20 dynamic is more typical in mature markets. The new product paradigm is different. Each one of us adopts new products within a different time period. Some of us are early adopters and some of us are laggards. Over time, as the product matures, more people use it and then I think we will see the 80/20 rule.

DG: Tell us more about the approval process for HERO financing. We’ve heard it’s easy and fast?

JM: We are meeting consumer expectations and providing a service at the level they have been accustomed to. If you don’t meet consumer expectation as it relates to a timely response, they look for alternatives. And credit card financing is an option many homeowners use, not because it’s the cheapest financing, but because it meets their expectations. We are working really hard to offer them a more affordable option.

DG: How many communities in California offer HERO financing? Where do you expect to be in 6 months?

JM: Today, there are 140 cities and counties that have approved HERO. Five of the top 10 cities, 10 of the top 20, and 49 of the top 100 make HERO financing available to their constituents. Over time, we think every city and county will adopt HERO, and probably other programs as well. The ability to offer multiple options will raise awareness of EE/RE, , improve service and lower the price for homeowners. Cities will benefit by creating more jobs, a higher economic stimulus and lower emissions. Plus, they reduce risk, because they shouldn’t put all their eggs in one basket by just offering one program to their residents. Many cities are doing this including San Diego and San Jose.

DG: Is HERO offered anywhere outside of California?

JM: People underestimate how difficult it is to create a successful program, whether it covers a city or a region. We are focused on creating a great consumer experience within the markets we operate in and overtime we will expand to new markets outside of California.

DG: How many homes took advantage of HERO financing? What types of projects were these?

JM: Over 11,000 homeowners have utilized HERO to make improvements to their home to lower their energy bill. Approximately 2/3 of the homeowners financed an energy efficient measure such as insulation, weatherization, efficient furnaces, efficient air-conditioning, efficient roofs and other products that consume less energy. About 1/3 of the homeowners used HERO to purchase solar PV systems and charging stations. We are also seeing an increase in homeowners using HERO to finance water efficient measures due to the drought in California.

DG: This is impressive. Are you seeing any trends with mortgage foreclosure rates?

JM: I don’t know if you have ever done a home improvement project, but it’s not what most people want to do on weekends or weekdays. These people move forward with higher quality projects that use less energy because they want to lower their bills and increase their disposable income. As a result, it doesn’t surprise me that we are seeing homes that participate with HERO have a lower mortgage foreclosure rate than homes that would otherwise qualify for HERO, but did not participate. This is important because the lending industry would love to lower utility bills and increase disposable income so that homeowners can pay their mortgage. In fact, the lending industry has long sought to create a financing product that would enable adoption of EE/RE measures for this reason. If we, as an industry, can demonstrate that a PACE product, with proper underwriting and consumer protection, can lower the mortgage default rates, protect the consumer better than other financing products and have a positive impact on job growth and environment, it will be a compelling value proposition for the mortgage industry. We will continue to monitor our portfolio and share data.

DG: Moving on to your position on home energy audits. Do homeowners take advantage of audits through the HERO program?

JM: We certainly encourage audits, but at the end of the day it is up to the property owner to determine whether they want to take advantage of one. When homeowners are in the market to replace broken or poor performing equipment, they are less inclined to purchase other products (audits) with it. Property owners undertake audits when they are looking to do an evaluation of their home. Historically, analysis of energy efficiency and renewable energy programs in North America and Europe shows that the more hurdles a program puts in front of a property owner, the less likely it is to achieve a high participation rate.

DG: Let’s talk about the recent securitization of residential PACE bonds.

JM: We started the process to securitize PACE assessments four years ago and began working with rating agencies and attorneys, who went through a very thorough analysis of our portfolio. We are very happy with the outcome.

DG: This issue was privately placed? Are they municipal bonds?

JM: It was a private placement. It was a not a municipal bond product, but an asset backed securities product.

DG: 4.75% seems pretty attractive at this point, but might still be a bit high given the credit strength. It’s still a very illiquid market.

JM: You have to look at the weighted average life of the pool and at the spread: 180 basis points over the swap rate at 11 years. More than anything these numbers are a function of the illiquidity of the asset. When you have a small inventory of assets, you aren’t going to have a significant amount of trading on the secondary market. So any product that was purchased will more than likely, won’t be traded. Overall, credit is strong but liquidity is weak, which has an impact on price. As far as it being AA rated by Kroll, it is hard to find too many AA notes with and 11 years average life that trade at a tighter spread.

DG: What would you tell a homeowner about HERO program?

JP: Consumers have a variety of choices, not everybody qualifies for HERO and there are people who might be able to get a lower cost of financing elsewhere, (although one can’t get the same PACE characteristics in a mortgage or a home equity line). Homeowners should look at all alternatives and find the best option. Our goal is to create a financing mechanism that enables homeowners to select the products they want to save them money.

Article appearing courtesy PACENow.

05/08/2014 0 comment

Clean Transportation

Mercedes Announces Pricing for Its B-Class Electric Car

written by CleanTechies.com Contributor

Mercedes recently announced pricing for its first production-level all-electric car. The five-seat small luxury sedan, the B-Class Electric Drive, will go on sale this summer in the United States, with a starting price of $41,450—nearly an identical price to its primary competitor, the BMW i3.

Together, the two cars represent the new wave of luxury electric vehicles available in the U.S.—a market that has thus far been limited to the more expensive Tesla Model S. As it happens, Tesla supplies the drivetrain and battery pack for the B-Class Electric Drive, which follows Tesla’s preference for sandwiching the battery pack between the floor of the car and the passenger space above. The electric model is based on the conventional Mercedes B-Class, available in Europe and Canada, but coming to the United States for the first time.

The space configuration is one of the main distinctions between the B-Class and the BMW i3, which seats just four. Another key difference is the i3’s optional range-extender, which allows that car to run on gas after its battery range is depleted. The B-Class doesn’t offer the feature—which costs $4,000 extra on the i3.

Mercedes B-Class Electric Drive offers a range of 85 miles and can charge completely in about 3.5 hours on a 240-volt charger.

Both the B-Class and the i3 are way ahead of the pack of other small EVs in terms of performance. The B-Class nets 177 horsepower and 251 pound-feet of torque, while the i3 maxes out at 170 horsepower and 184 pound-feet of torque. By comparison, the Nissan LEAF is capable of just 107 horsepower. The superb handling characteristics of the B-Class, and its interior fit and finish, are what you would expect from a Mercedes vehicle.

Mercedes will sell the B-Class electric in eight states to start: California, Connecticut, Maryland, New Jersey, New York, Oregon, Rhode Island and Vermont. Sales in those states begin this summer, followed by the rest of the country sometime next year.

Thanks to the $7,500 federal tax credit for EVs, the B-Class can be had for $33,950—with residents of California and Marylandeligible for additional state credits of $2,500 and $2,000, respectively. The B-Class also earns carpool lane access in California and New Jersey (which exempts EV buyers from paying sales tax on the purchase).

Article by Brad Berman, appearing courtesy ebay Green Driving.

05/07/2014 1 comment

Renewable Energy

Why Hasn’t The U.S. Gone After Gazprom?

written by CleanTechies.com Contributor

Amidst the deepening war of words over Moscow’s annexation of Crimea, U.S. President Barack Obama on April 28 added more Russian individuals and companies to a sanctions list that already included influential members of Russian President Vladimir Putin’s inner circle and Bank Rossiya, which has close ties to the Russian leadership. The new list freezes the assets of Igor Sechin, head of Russia’s major oil company, Rosneft, six other individuals and 17 companies.

Significantly, the new U.S. list does not include Alexei Miller, CEO of the Russian natural gas state monopoly, Gazprom.

Although the European Union has imposed its own tough sanctions on 48 Russian individuals, Gazprom is arguably where daylight exists between the Obama administration and the EU on the issue of penalizing Moscow for its actions in Ukraine.

The numbers make it clear why. Russia is the EU’s third-biggest trading partner, after the U.S. and China; in 2012, bilateral EU-Russian trade amounted to almost $370 billion. The same year, U.S. trade with Russia amounted to just $26 billion.

More than half of Russia’s exports go to Europe, and 45 percent of its imports come from Europe, according to the EU EUROSTAT agency. Out of 485 billion cubic meters of gas consumed by the EU annually, Russia supplies about 160 billion cubic meters, or almost one-third the total volume.

Germany, the EU’s economic powerhouse, has been explicit about the costs for the German economy from increased sanctions. Anton Borner, the president of Germany’s main trade group, BGA, warned that more than 6,000 German businesses with $105 billion of turnover are interlinked with Russia and stand to lose if sanctions are ratcheted up.

U.S. Representative Lois Frankel (D-FL), who recently visited Ukraine with a Congressional delegation, has offered the likeliest official explanation for why the White House left Gazprom and CEO Miller untouched in the most recent round of sanctions.

In an April 28 appearance on MSNBC, Frankel said, “I think our president is taking a cautious approach warranted because our European allies are…trade partners with Russia, they depend on Russia’s energy. And so we have [to] be careful because sanctions against Russia also have the good probability of hurting our allies.”

Other members of Congress have shown less willingness to accommodate the EU’s delicate economic position. In recent days, senior members of the U.S. Senate have increased their calls for the White House to move against Gazprom. Carl Levin (D -MI), John McCain (R-AZ) and Bob Corker (R-TN) want Obama to use an executive order that allows him to punish broad sectors of the Russian economy in response to Russia’s actions in Crimea.

The lawmakers’ statements on the issue have been widely covered in the Ukrainian and Russian press.

In an April 12 letter to Obama, Corker, a ranking member of the Senate Foreign Relations Committee, said, “Unless Russia ends its destabilization of eastern Ukraine and drastically reduces troop levels on the Ukrainian border immediately, further sanctions against strategic sectors of the Russian economy, particularly targeting Gazprom and additional important financial institutions, should be imposed within days.”

After the latest round of U.S. sanctions this week, Corker repeated that call in a joint statement with Senator Kelly Ayotte (R-NH), the ranking member of the Senate Armed Services Readiness Subcommittee, in which he said, “Until Putin feels the real pain of sanctions targeting entities like Gazprom, which the Kremlin uses to coerce Ukraine and other neighbors, as well as some significant financial institutions, I don’t think diplomacy will change Russian behavior and de-escalate this crisis.”

During an April 25 visit to the Ukrainian capital, Kiev, Levin told reporters, “The existing authority is sufficient to take very strong sanctioning action against Russian banks that have correspondent accounts in the United States. The authority exists. It should be used, and that includes Gazprom.”

McCain advocated in an April 25 press release, “The United States needs to expand sanctions to major Russian banks, energy companies, and sectors of its economy, such as the arms industry, which serve as instruments of Putin’s foreign policy. NATO needs to move toward a robust and persistent military presence in central Europe and the Baltic countries, including increased missile defense capabilities. We need a transatlantic energy strategy to break Europe’s dependence on Russian oil and gas,” which would include sanctions against Gazprom, according to his office.

McCain recently suggested he has a broader agenda in mind when he said, “The strategy of the U.S. for saving Ukraine must be built in opposition to Russia’s gas strategy, as this will be the end of Putin and his empire.”

Given Gazprom’s centrality to the Russian economy, it’s unlikely that Putin won’t react if and when the company comes in for Western sanctions. In preparation for that possibility, Gazprom’s subsidiary, Gazprombank, Russia’s third largest, last month transferred nearly $7 billion to the Central Bank of the Russian Federation.

Gazprom has already warned that further Western sanctions could disrupt gas exports to Europe.

And Russian Natural Resources Minister Sergei Donskoi has made it explicit that there will be consequences for Western energy firms that comply with sanctions. Speaking on April 24 to journalists in Russia’s far eastern city of Birobidzhan, Donskoi said, “It is obvious that they won’t return in the near future if they sever investment agreements with us, I mean there are consequences as well. Russia is one of the most promising countries in terms of hydrocarbons production. If some contracts are severed here, then, colleagues, you lose a serious lump of your future pie.”

Donskoi also expressed the certainty that if Western firms leave Russia, other foreign energy companies would take their place.

That kind of threatening rhetoric will only make it harder for U.S. officials to sell an already nervous Brussels on the idea of more sanctions, if it comes to that, and on targeting Gazprom, in particular.

Article by John C.K. Daly of Oilprice.com

05/07/2014 0 comment

Renewable Energy

Utilities Need to Get Real about the Distributed Energy Threat

written by CleanTechies.com Contributor

We’ve all heard a lot lately about the distributed energy threat and how it might hurt utilities.

For example, the Rocky Mountain Institute earlier this year released a report saying that customers will soon begin defecting from their utilities and embracing off-grid solutions that involve solar energy and storage. RMI found that in the southwest (especially California), and in the northeast (especially New York City), these systems could be economic for tens of millions of customers in the next 10 years.

So, given that defection and mutiny seem inevitable, what’s a utility to do?

A new report from from Ernst & Young, “From Defense to Offense: Distributed Energy and the Challenge of Transformation in the Utilities Sector,” gives utilities some tips, chief of which is: Don’t be so defensive. Utilities need to see the threat as an opportunity that we all can benefit from, says the report.

“The report…asserts the power and utility industry must shift from its current defensive posture regarding distributed energy resources (DER) and instead go on the offensive and lead the revolution,” says a summary.

Echoing RMI’s finding, the report says that by 2020, rooftop solar PV will become cheaper than power from the grid in most parts of the US.

“As a result, conventional centralized, dispatchable, fossil- or nuclear-based generation will gradually cede ground to distributed energy resources (DER). In fact, some foresee a future cliff for traditional generation when DER is combined with affordable storage technologies,” says the report’s executive summary.

What’s more, energy efficiency, along with distributed energy, will alter the sector’s value chain, says the report. Instead of an integrated one-way model, the sector will become multidirectional, with consumer-producers acting as generators.

“The threat DER poses to incumbents is severe, and attempting to deny the situation with status quo forecasts or blocking the inevitable outcome by penalizing customers who adopt DER is futile,” says the executive summary. “It’s time for the sector to move over to the offensive by developing DER friendly strategies and business models that focus on creating customer as well as shareholder value.”

The report suggests that utilities commit to transforming how they operate, offering new products and services that compete against new entrants.

In addition, utilities should transform the grid so that it’s more distributed, digital and dynamic, and provides two-way communication between customer locations and the utility, says a report summary.

Along the way, utilities need to manage the transition by seeking full cost recovery of legacy assets to recover investments incurred during the pre-distributed energy era.

And utilities need to “innovate and accelerate,” providing value related to the rise of distributed energy.

The writing is on the wall for utilities. As the report says, it’s time to accept the inevitable and take action that ensures everyone benefits from the distributed energy revolution.

Article by Lisa Cohn, published under a cross licensing agreement with EnergyEfficiencyMarkets.com

05/06/2014 0 comment

Clean Transportation

2015 Volkswagen Jetta Diesel Jumps to 45 MPG on Highway

written by CleanTechies.com Contributor

Volkswagen unveiled the latest updates to its popular VW Jetta line at this year’s New York International Auto Show. The car will get a few minor styling tweaks, but what interests us are the improvements under the hood—where fuel efficiency counts.

The TDI diesel variant of the Jetta will be updated, earning an efficiency boost of 2 mpg in the city and 3 mpg on the highway. Expected EPA numbers for the 2015 Jetta TDI are 32 mpg city, 45 mpg highway—and 37 mpg combined. At the same time, the TDI’s 2.0-liter, 4-cylinder EA288 Clean Diesel engine will be more powerful, increasing output from 140 horsepower to 150 horsepower. Faster and more efficient…not a bad deal.

These improvements come from less engine friction and better thermal management, thanks to new coolant loops—as well as automatic radiator grill shutters, which give a boost to aerodynamics.

It’s evidence that diesel continues to catch up with hybrid technology—especially considering that the gasoline and hybrid powertrains for the Jetta will remain the same for 2015. (All the models will get more aerodynamic head and tail lamps.) There will also be a number of new options available for the car, including daytime LED lamps, chrome trim and new driver assistance features, as well as updates to its infotainment system, steering wheel, and control clusters.

The Jetta’s impressive new diesel beats the combined fuel economy of the turbocharged gas engine by 7 mpg—a 23 percent difference—lagging behind only the hybrid version of the car, which is still the king at 45 mpg combined city-highway efficiency. The TDI has proved to be far more popular than the Jetta Hybrid, which launched in 2013. The Jetta TDI remains the most popular clean diesel in the United States. The Jetta line as a whole is also VW’s most popular on the American market.

The 2015 Jetta is scheduled to hit the market in the fall, though pricing details are yet to be announced. Currently, the base gas-fueled Jetta retails for $16,895 while the most affordable TDI trim will set you back $23,625. The Jetta Hybrid costs a little more, starting at $25,560, perhaps explaining why it hasn’t sold as well. One other note: the Sportwagen, which has been a Jetta, will now join VW’s Golf model lineup.

Article by Brad Berman, appearing courtesy ebay Green Driving.

05/05/2014 0 comment

Renewable Energy

Chile’s Largest Utility Appeals to New Government on Energy Policy

written by CleanTechies.com Contributor

Jorge Rosenblut, the President of Endesa, one of the biggest utilities in Chile, gave a speech at the Enersis annual convention (Enersis is part of the Endesa Group) recently. In his address to those gathered, he urged the new government to focus on the development of local sources of energy that are both sustainable and competitive.

Chile is historically known for lacking internal conventional energy resources. This situation has made the country import the fuels needed for electricity generation, and thus making them dependent on their partners’ economy fluctuations.

According to Rosenblut, the import of fuels represents between 4% and 5% of the overall imports that arrive in Chile. To reverse this situation he stated the need to invest in local energies that would reduce the energy dependence of the country.

Among the natural resources that Chile holds, solar radiation is one that has not been fully exploited yet. However, with the approval of the new renewables objectives (20% of renewable generation by 2025) this situation will be changing in the next few years.

At present there is an 110MW CSP project being developed by Abengoa Solar, which will serve as proof of concept in Chile. Many other projects are under planning in the country, which have to potential to source the Endesa´s President´s request for the development of sustainable and competitive energy resources in Chile.

On the 27th and 28th of May the international CSP industry will gather at ChileSol 2014 in Santiago de Chile to discuss the development of CSP projects in the country. Leading companies such as Abengoa, SolarReserve and BrightSrouce Energy will be joined by local authorities such as the National Commission of Energy, the CDEC-SIC and CDEC-SING among others.

05/01/2014 1 comment

Renewable Energy

Plant These Vegetables To Help the Environment

written by CleanTechies.com Contributor

When beginning a vegetable garden, it is important to understand which vegetables to plant during which times. There are plants that can thrive starting in the early parts of the year while others do better waiting until spring or even summer. By using a comprehensive guide, you will be able to create a vegetable garden space that will keep your kitchen stocked with fresh vegetables year after year.

Several vegetables can be planted during the early months of the year from February to March. These plants make it easy for you to begin a garden at your home. An example of this would be the Cucumber. This plant can be placed in a garden from February to March and then harvested in September.

The March to April time frame is perfect for a variety of vegetables. You will be able to plant as soon as spring begins to bloom and you can harvest from June to September depending on the type of plant you have decided to place in the garden. Vegetables that can be planted from March to April are: Potatoes, Broad Beans, Tomatoes and Spring Onions.
As your garden begins to grow during the spring time months, you will be able to gradually add even more vegetables.

From April to July, such vegetables as Beetroots, Carrots and Pumpkins can be planted and then harvested from August to October. Remember to continue to water and care for the vegetables that are growing as you add more items to your vegetable garden.

As the late summer and fall months arrive, you can still plant vegetables and continue to harvest items for eating as well as canning and freezing. During the late summer to fall months you can plant Shallots, Onions, Turnips and Spinach and harvest during the later months of the year such as October to December. Some plants need more time to grow and will continue until the early parts of next year such as Spinach and Onions.

Cabbages, Peas, Lettuce and Garlic are considered winter vegetables and go in during the early spring to late summer and winter months. As you plant, you will be able to have vegetables to harvest during the winter as well as into the spring so that you can continue to have a full garden of items to choose from throughout the year.

As you plant your vegetables and create a new garden, you will want to have a nice area for relaxing, shelling peas or storing vegetables.

It is important to remember that every vegetable has a sow and harvest date. Pay careful attention to the time frame in which you plant a vegetable and ensure that this date is correct. As you care for the vegetables, you will see each seed begin to sprout and grow, with the hope of a new vegetable coming up from the ground.

Creating your own garden is a great way to save money on fresh vegetables and also is environmentally friendly. You will be able to have many different vegetables just outside the home and pick whatever you want fresh from the garden!

Article by Aiden Korr, appearing courtesy 2GreenEnergy.

04/30/2014 2 comments

Renewable Energy

Microgrids: How the Military Connection Advances the Technology

written by CleanTechies.com Contributor

When you think about it, the military’s interest in microgrid technology makes sense: With its need for facilities to stay powered all day every day, getting off the grid is critical.

“Microgrids provide the military with energy security and reliability 24-7 and 365 days a year. They need power if the entire world disappears around them,” says John Carroll, business development director for Intelligent Power & Energy Research Corporation (IPERC), a New York-based company that manufactures microgrid controls and is a contractor for installations on four bases.

The military isn’t the only organization that thinks the Navy, Army and other arms of the government need to get into microgrids and renewable energy. The Department of Defense recently published a report, “Quadrennial Defense Review,” an assessment of U.S. defense readiness, which focuses on the growing threat that climate change poses to military capabilities and global operations. In addition, the United Nations’ Intergovernmental Panel on Climate Change report says that we’ll be seeing more and more extreme weather across the globe.

Given all these pressures, Carroll predicts that the market for microgrids in the military is in the tens of billions of dollars. “The total available market is huge,” he says.

What’s more, the military’s interest in microgrids is fueling the interest of municipalities and utilities.

“The military is the technology leader. Every utility is looking at the Department of Defense for how they are deploying microgrids. At conferences all over the country, utilities and municipalities are coming together to understand what the military has been doing,” he says. “The military is absolutely the leader.”

Microgrid Military Potential

The military microgrid market will produce more than 54.8 MW of capacity by 2018, according to a report from Red Mountain Insights, “Military Microgrids Market Potential.” More than 40 US military bases have microgrids in operation or are planning or studying them. Afghanistan, in particular, needs efficient, mobile microgrids. The Department of Defense moves about 50 million gallons of fuel monthly in Afghanistan, much of it power more than 15,000 generators, according to the report.

IPERC, which has been in the microgrid business for 10 years, sees all this as good news for its company. However, says Carroll, funding the installations is a major challenge. The four base installations were funded by the Smart Power Infrastructure Demonstration for Energy Reliability and Security, a Department of Defense program.

“That program will end this time next year. The next step: It will be up to individual bases and their budgets, or private partnerships and state grants. It will become a collage of money sources.”

A collage of issues have come together to create the need for the military to embrace microgrids. Will the collage of funding sources help fill the need?

Article by Lisa Cohn, published under a cross licensing agreement with EnergyEfficiencyMarkets.com

04/29/2014 0 comment

Clean Transportation

Guide to Buying Plug-in Hybrid and Electric Cars

written by CleanTechies.com Contributor

Is an Electric Car Right for You?

Operating a car without needing to visit a gas station is intriguing idea to many American drivers. After all, the pumps can be a painful place—gas prices have been on a roller coaster ride the past few years. But in the minds of many American, electric cars are nothing more than glorified golf cars incapable of providing adequate daily driving range or sufficient highway speed. In this new era of electrified transportation, those misconceptions need to be tossed aside.

Todays’ electric vehicles, like the Nissan Leaf, provide all the creature comforts and capabilities of gasoline internal combustion cars. These EVs comfortably seat four or five passengers, offer quasi-luxury features, and serve up smooth, silent and sporty levels of acceleration. But there are a couple of important issues to consider—such as driving range and refueling times.

Are There Drawbacks To Consider?

Except for top-of-the line expensive models like the Tesla Model S, which offers 250 or more miles of range on a single charge, most of the new EVs commonly provide about 80 to 100 miles of travel after receiving a full charge.

Actually, the average distance traveled by commuters in the U.S. is about 30 miles. So EVs provide plenty of range for the most common routes. The limitation only becomes an issue for single-car families or those who regularly go on a road-trip of hundreds of miles. If you are a road warrior who takes long trips all the time—or have a daily commute of more than 60 or 70 miles—an electric car is probably not right for you.

For everybody else, an EV is a refreshing break from the petro-dominated past.

Unlike a gas car that refuels at a gas station in a matter of minutes, an electric car commonly takes a few hours to fully recharge. This is mostly overstated as a concern because your car is almost always parked overnight while you sleep. That’s the perfect time to charge, so that you can wake up with a full 80 to 100 miles of driving in front of you. It’s as easy as pulling into your driveway or garage, reaching for the cord, and plugging it in. This might be challenging for folks without a dedicated parking spot, but for most drivers, charging an electric car is more convenient than making those dreaded trips to a gas station.

What Are the Top Models?

The two top electric models today are the Nissan Leaf and Chevrolet Volt. Keep in mind that not all electric cars are created the same. The Nissan Leaf is a pure electric car, while the Chevrolet Volt is what General Motors calls “an extended-range electric vehicle.” This is also referred to as a plug-in hybrid—meaning that the first set of miles, after a charge, are provided by batteries and an electric motor, after which a gas engine is used to extend range by hundreds of miles. Other plug-in hybrids include the Ford C-Max Energi, Fisker Karma, and Toyota Prius Plug-in Hybrid.

Chevrolet Volt
The Chevy Volt is a well-equipped, five-door, four-seat hatchback that operates as an electric car for its first 37 or so miles after a full charge—and then uses gas to extend its range.

Ford Focus Electric
The five-door hatchback provides about 80 miles of range. It features higher speed charging than many competitors—as well as liquid cooled/heated batteries for maintaining range in hot and cold weather. Availability is somewhat limited.

Nissan Leaf
Nissan’s groundbreaking electric car is the most popular EV ever produced. It comfortably seats five adults and is loaded with high-tech luxury-like features. As of summer 2012, the Leaf is available to test-drive and purchase at Nissan dealerships throughout the United States.

Tesla Model S
The full-size Model S sedan has swept awards for Car of the Year in 2012. It’s not only the most capable, comfortable, luxurious, and sporty EV on the road, it beats nearly every gas-powered sedan on all these same categories. Range, with its largest battery pack, is more than 250 miles on a charge. Expect a high price tag, and a wait of at least a few months.

Toyota Prius Plug-in Hybrid
The Toyota Prius Plug-in Hybrid’s 4.4 kilowatt-hour battery pack provides 11 or more all-electric miles after a full charge. As a result, drivers with short commutes commonly get more than 100 miles per gallon. After the battery is depleted, the car works just like a conventional hybrid, providing about 50 miles per gallon.

Where Do I Get Fuel?

Electricity is ubiquitous in the United States. So charging an electric vehicle is as close as your nearest electric receptacle. For plug-in hybrids, you’ll only ever really 110-volt charging (using the cord set provided with the car). For pure electric cars with larger batteries, you’ll likely want to install a piece of hardware referred to as “electric vehicle service equipment,” that can provide a 220-volt supply of juice. The public charging infrastructure is in its infancy, but if you live in one of the major markets for electric cars, you’ll discover hundreds of local charging spots.

How Much Does the Fuel Cost?

As a rule of thumb, miles of travel on electricity are between one-fourth to one-sixth the cost of gasoline or diesel. That means returning to the days of (the equivalent of) one dollar a gallon. Some public EV charging is slightly more expensive, but by and large, the price advantage of using electricity as an automotive fuel is dramatic.

Are Electric Cars Green?

Regardless of how your local electricity is produced—whether by coal, hydro, nuclear or renewables—driving an electric car is as green as a motorist can get. That’s because EVs are very efficient, using as much as 90 percent of onboard electricity (stored in batteries) as propulsion for the wheels—compared to gasoline internal combustion engine vehicle that use only a small percentage of its fuel to move the car down the road. The rest of that energy is wasted as heat or, unfortunately, tailpipe emissions.

As time passes, and our electric grids increasingly use renewables, such as wind and solar, the environmental profile of EVs will become even greener. Many of today’s electric cars have home photovoltaic (solar) systems, so they can essentially power their electric cars with sunshine today.

Article by Brad Berman, appearing courtesy ebay Green Driving.

04/28/2014 4 comments

Renewable Energy

New Patent on Investment Vehicle Could Impact Renewable Project Developers

written by CleanTechies.com Contributor

A recently issued patent could make the use of master limited partnerships (MLPs) more difficult in wind projects without a license or reliance on the patent owner to provide software / services to enable transactions.

Entitled “Apparatus and method for combining easements under a master limited partnership,” U.S. Patent No. 8,700,517 (’517 Patent) describes a master limited partnership as follows:

A master limited partnership (MLP) is a business organization governed by a contract between management (e.g., general partners) and investors (e.g., limited partners). A master limited partnership combines the tax benefits of a limited partnership with the liquidity of publicly traded securities. The master limited partnership was originally conceived as an organizational structure to capitalize on mature, low growth, cash generating businesses. Accordingly, master limited partnerships have been used in such industries as oil, gas, real estate, and natural resources.

Presently, this type of investment vehicle is being deliberated by the U.S. Congress as a mechanism to help facilitate the deployment of renewables. The implication would be that a broader base of potential investors that do not require accreditation could become partners / investors in wind farms or solar parks.

We have seen recent trends towards crowd-funding of wind parks in Europe, and some developers here in the U.S. believe MLPs could be a useful tool.

The ’517 Patent describes a business method for using a computer system to store data and information related to property easements secured under the MLP structure:

A computer includes a processor and a memory connected to the processor. The memory stores capital data characterizing capital raised for the purchase of real property easements, operating data characterizing fees collected in connection with the real property easements, and a master limited partnership module with executable instructions executed by the processor to designate master limited partnership income based upon the capital data, the operating data and terms of an easement ma[s]ter limited partnership.

An easement is a property right under common law, and is often sought by a renewable project developer from a landowner so that valuable consideration is provided to the landowner for the use of the property for renewable project construction.

An examination of the breadth of claim 1 of the ’517 Patent shows that the inventors propose a computer system and a means for cataloging and storing information related to easements of specific projects with an MLP structure:

1. A computer, comprising: a processor; and a memory connected to the processor, the memory storing capital data characterizing capital raised for the purchase of real property easements, operating data characterizing fees collected in connection with the real property easements, wherein the fees are from aggregated real property easement rights and associated rental fees from rent generating fixtures, and a master limited partnership module with executable instructions executed by the processor to designate master limited partnership income based upon the capital data, the operating data and terms of an easement ma[s]ter limited partnership.

The implications of this claim breadth would be to make the assignee of the ’517 Patent, American Infrastructure Funds, LLC, the owner of a de-facto standard for many MLP deal structures, even outside of renewables.

The ’517 Patent might be treated similarly to a “standards essential” patent, and compulsory licensing may be required since it would appear that many investment management companies and project developers would utilize computer systems and software which comprise this method.

Interestingly, while many companies may propose to argue against the obviousness of something so broad, the method described would have likely been treated by investment companies and project developers in the past as a company trade secret. Thus, there may be little public domain disclosure of relevant prior art to this method, and their original priority claim from the patent family dates back over 12 years.

It will be interesting to see how enforcement of the ’517 Patent unfolds as renewable projects attempt to get on the MLP bandwagon.

Article by Philip Totaro, Principal at Totaro & Associates, a consulting firm focused on innovation strategy, competitive intelligence, product development and patent search. To find out more, or get in touch please visit www.totaro-associates.com. Article appearing courtesy Green Patent Blog.

04/24/2014 0 comment

Renewable Energy

Living the Green Life – Celebrate Earth Day

written by CleanTechies.com Contributor

Earth Day is a great time to think about how you and your family can do more to live the green life. In this episode of Living the Green Life, find out some simple things you can do this Earth Day to make an impact as a family.

Appearing courtesy SaveOn Energy.

04/22/2014 0 comment

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