Hybrid Electric Buildings; A New Frontier for Energy and Grids

.OneMaritimePlaza-300x225 PeakerPlantSanFranHybrid Electric Buildings are the latest in developments for packaged energy storage in buildings which offer several advantages including long-term operational cost savings. These buildings have the flexibility to combine several technologies and energy sources in with a large-scale integrated electric battery system to operate in a cost-effective manner.

San Francisco’s landmark skyscraper, One Maritime Plaza, will become the city’s first Hybrid Electric Building using Tesla Powerpack batteries. The groundbreaking technology upgrade by Advanced Microgrid Solutions (AMS) will lower costs, increase grid and building resiliency, and reduce the building’s demand for electricity from the sources that most negatively impact the environment.

Building owner Morgan Stanley Real Estate Investing hired San Francisco-based AMS to design, build, and operate the project. The 500 kilowatt/1,000 kilowatt-hour indoor battery system will provide One Maritime Plaza with the ability to store clean energy and control demand from the electric grid. The technology enables the building to shift from grid to battery power to conserve electricity in the same way a hybrid-electric car conserves gasoline. (1)

In addition to storage solutions these buildings can offer significant roof area to install solar panel modules and arrays to generate power during the day.  Areas where sunshine is plentiful and electricity rates are high, solar PV and storage combinations for commercial installations are economically attractive.

For utility management, these systems are ideal in expansion of the overall grid, as more micro-grids attach to the utility infrastructure overall supply and resiliency is improved.

In recent developments AMS has partnered with retailer Wal-Mart to provide on-site and “behind the meter” energy storage solutions for no upfront costs.

solar-panels-roof-puerto-rico.png

Figure 2.  Solar Panels on Roof of Wal-Mart, Corporate Headquarters, Puerto Rico (3)

On Tuesday, the San Francisco-based startup announced it is working with the retail giant to install behind-the-meter batteries at stores to balance on-site energy and provide megawatts of flexibility to utilities, starting with 40 megawatt-hours of projects at 27 Southern California locations.

Under the terms of the deal, “AMS will design, install and operate advanced energy storage systems” at the stores for no upfront cost, while providing grid services and on-site energy savings. The financing was made possible by partners such as Macquarie Capital, which pledged $200 million to the startup’s pipeline last year.

For Wal-Mart, the systems bring the ability to shave expensive peaks, smooth out imbalances in on-site generation and consumption, and help it meet a goal of powering half of its operations with renewable energy by 2025. Advanced Microgrid Solutions will manage its batteries in conjunction with building load — as well as on-site solar or other generation — to create what it calls a “hybrid electric building” able to keep its own energy costs to a minimum, while retaining flexibility for utility needs.

The utility in this case is Southern California Edison, a long-time AMS partner, which “will be able to tap into these advanced energy storage systems to reduce demand on the grid as part of SCE’s groundbreaking grid modernization project,” according to Tuesday’s statement. This references the utility’s multibillion-dollar grid modernization plan, which is now before state regulators.  (2)

References:

  1. San Francisco’s First Hybrid Electric Building – Facility Executive, June 28, 2016
    https://facilityexecutive.com/2016/06/skyscraper-will-be-san-franciscos-first-hybrid-electric-building/

  2. Wal-Mart, Advanced Microgrid Solutions to Turn Big-Box Stores Into Hybrid Electric Buildings, GreenTech Media, April 11, 2017  https://www.greentechmedia.com/articles/read/wal-mart-to-turn-big-box-stores-into-hybrid-electric-buildings?utm_source=Daily&utm_medium=Newsletter&utm_campaign=GTMDaily

  3. Solar Panels on Wal-Mart Roof  http://corporate.walmart.com/_news_/photos/solar-panels-roof-puerto-rico

Energy Efficiency Financing for Existing Buildings in California

Much of our efforts to reduce carbon emissions involves fairly complicated and advanced technologies. Whether it’s solar panels, batteries, flywheels, or fuel cells, these technologies have typically required public support to bring them to scale at a reasonable price, along with significant regulatory or legal reforms to accommodate these new ways of doing old things, […]

To recommend policies to boost this capital market financing for energy retrofits, UC Berkeley and UCLA Law are today releasing a new report “Powering the Savings:How California Can Tap the Energy Efficiency Potential in Existing Commercial Buildings.” The report is the 17th in the two law schools’ Climate Change and Business Research Initiative, generously supported by Bank of America since 2009.

The report describes ways that California could unlock more private investment in energy efficiency retrofits, particularly in commercial buildings.  This financing will flow if there’s a predictable, long-term, measured and verified amount of savings that can be directly traced to energy efficiency measures.  New software and methodologies can now more accurately perform this task.  They establish a building’s energy performance baseline, calibrating for a variety of factors, such as weather, building use, and occupancy changes.  That calibrated or “dynamic” baseline can then form the basis for calculating the energy savings that occur due specifically to efficiency improvements.

But the state currently lacks a uniform, state-sanctioned methodology and technology standard, so utilities are reluctant to base efficiency incentives or programs without regulatory approval to use these new methods.  The report therefore recommends that energy regulators encourage utilities to develop aggressive projects based on these emerging metering technologies that can ultimately inform a standard measurement process and catalyze “pay-for-performance” energy efficiency financing, with utilities able to procure energy efficiency savings just like they were a traditional generation resource. […]

via Solving The Energy Efficiency Puzzle — Legal Planet

The Power of the Smart Campus

Smart campus technologies harness the potential to advance everything from productivity to security measures to the operations of the buildings in which students live and study. The United States a…

Source: The Power of the Smart Campus

The Smart Grid – Modern Electrical Infrastructure

When we talk about the emerging Smart Grid there comes with the topic an array of exciting and new technologies; Micro-Grids, Distributed Generation, Smart Meters, Load Shifting, Demand Response, Electric Vehicles with Battery Storage for Demand Response, and more.  Recent development in Renewable Energy sources has been driven by concerns over Climate Change, allowing for unprecedented growth in residential and commercial PV Solar Panel installations.

redwoodhighschool.jpg

Figure 1:  Redwood High School in Larkspur, CA installed a 705kW SunPower system that’s projected to save $250,000 annually. The carports include EV charging stations for four cars. (1)

Climate Change and burning of fossil fuels are hot topics in the world. Most recently the city of San Francisco has mandated the installation of solar panels on all new buildings constructed under 10 storeys, which will come into effect in 2017 as a measure to reduce carbon emissions.  Currently all new buildings in California are required to set aside 15% of roof area for solar. (2)

“Under existing state law, California’s Title 24 Energy Standards require 15% of roof area on new small and mid-sized buildings to be “solar ready,” which means the roof is unshaded by the proposed building itself, and free of obtrusions. This state law applies to all new residential and commercial buildings of 10 floors or less.

Supervisor Wiener’s ordinance builds on this state law by requiring this 15% of “solar ready” roof area to have solar actually installed. This can take the form of either solar photovoltaic or solar water panels, both of which supply 100% renewable energy.” (3)

Weather and Aging Infrastructure:

Despite an increasing abundance of energy-efficient buildings and other measures, electricity demand has risen by around 10% over the last decade, partly driven by the massive growth of digital device usage and the expanding demand for air conditioning, as summers continue to get hotter in many states.

According to 2013 data from the Department of Energy (DOE), US power grid outages have risen by 285% since records on blackouts began in 1984, for the most part driven by the grid’s vulnerability to unusual and extreme weather events – such as the devastating Hurricane Sandy in 2012 that caused extensive power outages across the East Coast – which are becoming less unusual as the years roll on.

“We used to have two to five major weather events per year from the 50s to the 80s,” said University of Minnesota Professor of Electrical and Computer Engineering Massoud Amin in a 2014 interview with the International Business Times.

“Between 2008 and 2012, major outages caused by weather increased to 70 to 130 outages per year. Weather used to account for about 17% to 21% of all root causes. Now, in the last five years, it’s accounting for 68% to 73% of all major outages.” (4)

How is the Smart Grid so different from the traditional electrical grid?

The established model of providing power to consumers involves the supply of electricity generated from a distant source and transmitted at high voltage to sub-stations local to the consumer, refer to Figure 2.  The power plants that generate the electricity are mostly thermo-electric (coal, gas and nuclear power), with some hydro-electric sources (dams and reservoirs) and most recently wind farms and large solar installations.

“The national power grid that keeps America’s lights on is a massive and immensely valuable asset. Built in the decades after the Second World War and valued today at around $876bn, the country’s grid system as a whole connects electricity from thousands of power plants to 150 million customers through more than five million miles of power lines and around 3,300 utility companies.” (4)

power_fig1 Old Grid Model.gif

Figure 2:  Existing Transmission and Distribution Grid Structure within the Power Industry (5)

The (Transmission & Distribution) market supplies equipment, services and production systems for energy markets. The initial stage in the process is converting power from a generation source (coal, nuclear, wind, etc.) into a high voltage electrical format that can be transported using the power grid, either overhead or underground. This “transformation” occurs very close to the source of the power generation.

The second stage occurs when this high-voltage power is “stepped-down” by the use of switching gears and then controlled by using circuit breakers and arresters to protect against surges. This medium voltage electrical power can then be safely distributed to urban or populated areas.

The final stage involves stepping the power down to useable voltage for the commercial or residential customer.  In short, while power generation relates to the installed capacity to produce energy from an organic or natural resource, the T&D space involves the follow up “post-power generation production” as systems and grids are put in place to transport this power to end users. (5)

The Smart Grid is an evolution in multiple technologies which in cases is overlaying or emerging from the existing grid.  New generating facilities such as wind power or solar installations which may be small or local to a municipal or industrial user are being tied into the existing grid infra-structure.  In some cases residential PV Solar systems are being tied into the Grid with some form of agreement to purchase excess energy, in some cases at rates favorable to the installer, depending on the utility and region.

Another characteristic of the evolving Smart Grid is in communication technology and scalability.  Use of wifi protocols for communication between parts of the system allow for new processes and access to resources which were previously unavailable.  Ability to control systems to defer demand to non-peak hours within a building as one example.

Microgrids, smaller autonomous systems servicing a campus of buildings or larger industry,  may plug into a larger City-wide Smart Grid in a modular manner.  In the event of a catastrophic event such as a hurricane or earthquake the Smart Grid offers users resiliency through multiple sources of energy supply.

Distributed Generation includes a number of different and smaller scale energy sources into the mix.  The newer, small scale Renewable Energy projects which are being tied to the electrical grid as well as other technologies such as Co-Generation, Waste To Energy facilities, Landfill Gas Systems, Geothermal and the like.  As growth continues there needs to be ways to control and manage these multiple energy sources into the grid.  Also increased needs to maintain privacy, isolate and control systems, and prevent unauthorized access and control.  This is leading to growth in  Energy Management and Security Systems.

ARES-rail-train

Figure 3:  An artist’s rendering of the massive rail used in the ARES power storage project to store renewable energy as gravitational potential energy. Source: ARES North America (6)

Energy Storage is emerging as necessary in the Smart Grid due to fluctuations in source supply of energy, especially Solar and Wind Power, and the intermittent and cyclical nature of user demand.   The existing grid does not have the need for energy storage systems as energy sources were traditionally large power stations which generally responded to anticipated need during the course of the day.

As more Renewable Energy systems go online the need for storage will grow.  Energy Storage in its various forms will also enable Load Shifting or Peak Shaving strategies for economic gains in user operations.  These strategies are already becoming commercially available for buildings to save the facility operators rate charges by limiting demand during peak periods at higher utility rates.

RTEmagicC_CSE1412_MAG_PP_FENERGY_Figure_1.jpg

Figure 4:  Effect of Peak Shaving using Energy Storage  (6) 

Peak-load shifting is the process of mitigating the effects of large energy load blocks during a period of time by advancing or delaying their effects until the power supply system can readily accept additional load. The traditional intent behind this process is to minimize generation capacity requirements by regulating load flow. If the loads themselves cannot be regulated, this must be accomplished by implementing energy storage systems (ESSs) to shift the load profile as seen by the generators (see Figure 4).

Depending on the application, peak-load shifting can be referred to as “peak shaving” or “peak smoothing.” The ESS is charged while the electrical supply system is powering minimal load and the cost of electric usage is reduced, such as at night. It is then discharged to provide additional power during periods of increased loading, while costs for using electricity are increased. This technique can be employed to mitigate utility bills. It also effectively shifts the impact of the load on the system, minimizing the generation capacity required. (6)

Challenges with chemical storage systems such as batteries are scale and cost.  Currently pumped hydro is the predominant method of storing energy from intermittent sources providing 99% of global energy storage. (7)

inline_demandresponse

Figure 5:  Actual Savings accrued due to Demand Response Program  (8) 

Demand Response (DR) is another technology getting traction in the Smart Grid economy. As previously mentioned Energy Management and Security Systems are “…converging with Energy Storage technology to make DR a hot topic.  First, the tools necessary to determine where energy is being stored, where it is needed and when to deliver it is have developed over decades in the telecommunications sector.  Secondly, the more recent rush of advanced battery research is making it possible to store energy and provide the flexibility necessary for demand response to really work. Mix that with the growing ability to generate energy on premises through solar, wind and other methods (Distributed Generation) and a potent new distributed structure is created.” (9)

Demand response programs provide financial incentives to reduce energy consumption during peak periods of energy demand. As utilities and independent system operators (ISOs) are pressured to keep costs down and find ways to get as many miles as they can out of every kilowatt, demand response programs have gained popularity. (8)

VirtualPowerPlant#1

Figure 6:  The Demonstration Project 2’s Virtual Power Plant (10) 

Virtual Power Plant: When an increasing share of energy is produced by renewable sources such as solar and wind, electricity production can fluctuate significantly. In the future there will be a need for services which can help balance power systems in excess of what conventional assets will be able to provide. Virtual power plants (VPPs) are one of the most promising new technologies that can deliver the necessary stabilising services.  (11)

In the VPP model an energy aggregator gathers a portfolio of smaller generators and operates them as a unified and flexible resource on the energy market or sells their power as system reserve.

VPPs are designed to maximize asset owners’ profits while also balancing the grid. They can match load fluctuations through forecasting, advance metering and computerized control, and can perform real-time optimization of energy resources.

“Virtual power plants essentially represent an ‘Internet of Energy,’ tapping existing grid networks to tailor electricity supply and demand services for a customer,” said Navigant senior analyst Peter Asmus in a market report. The VPP market will grow from less than US $1 billion per year in 2013 to $3.6 billion per year by 2020, according to Navigant’s research — and one reason is that with more variable renewables on the grid flexibility and demand response are becoming more crucial.  (12)

How-Microgrids-Work.jpg

Figure 7:   Example of a Microgrid System With Loads, Generation, Storage and Coupling to a Utility Grid (13)

Microgrids:  Microgrids are localized grids that can disconnect from the traditional grid to operate autonomously and help mitigate grid disturbances to strengthen grid resilience (14).  The structure of a microgrid is a smaller version of the smart grid formed in a recursive  hierarchy where multiple local microgrids may interconnect to form the larger smart grid which services a region or community.

Summary:

The convergence of aging existing infrastructure, continued growth in populations and electrical demand and concerns over climate change have lead to the emerging smart grid and it’s array of new technologies.  This trend is expected to continue as new growth and replacement will be necessary for an aging electrical grid system, from the larger scope transmission systems and utilities, to smaller scale microgrids.  These systems will become integrated and modular, almost plug-and-play, with inter-connectivity and control through wireless internet protocols.

References:

  1. https://cleanpowermarketinggroup.com/category/blog/
  2. http://www.npr.org/sections/thetwo-way/2016/04/20/474969107/san-francisco-requires-new-buildings-to-install-solar-panels
  3. https://medium.com/@Scott_Wiener/press-release-board-of-supervisors-unanimously-passes-supervisor-wiener-s-legislation-to-require-693deb9c2369#.3913ug8ph
  4. http://www.power-technology.com/features/featureupgrading-the-us-power-grid-for-the-21st-century-4866973/
  5. http://www.incontext.indiana.edu/2010/july-aug/article3.asp
  6. http://www.csemag.com/single-article/implementing-energy-storage-for-peak-load-shifting/95b3d2a5db6725428142c5a605ac6d89.html
  7. http://www.forbes.com/sites/jamesconca/2016/05/26/batteries-or-train-pumped-energy-for-grid-scale-power-storage/#30b5b497de55
  8. http://www.summitenergygps.com/optimize-rebates-incentives-credits.html
  9. https://duanetilden.com/2015/12/26/demand-response-energy-distribution-a-technological-revolution/
  10. https://hub.globalccsinstitute.com/publications/twenties-project-final-report-short-version/demonstration-project-2-large-scale-virtual-power-plant-integration-derint
  11. http://energy.gov/oe/services/technology-development/smart-grid/role-microgrids-helping-advance-nation-s-energy-system
  12. http://www.renewableenergyworld.com/articles/print/volume-16/issue-5/solar-energy/virtual-power-plants-a-new-model-for-renewables-integration.html
  13. http://w3.usa.siemens.com/smartgrid/us/en/microgrid/pages/microgrids.aspx
  14. http://energy.gov/oe/services/technology-development/smart-grid/role-microgrids-helping-advance-nation-s-energy-system

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DOE’s 3 Year $220M Grid Modernization Plan

With 88 projects from coast to coast, it might be the biggest grid edge R&D effort ever. Here’s how the money is going to be spent.

Sourced through Scoop.it from: www.greentechmedia.com

“[…] The Grid Modernization Multi-Year Program Plan will bring a consortium of 14 national laboratories together with more than 100 companies, utilities, research organizations, state regulators and regional grid operators. The scope of this work includes integrating renewable energy, energy storage and smart building technologies at the edges of the grid network, at a much greater scale than is done today.

That will require a complicated mix of customer-owned and utility-controlled technology, all of which must be secured against cyberattacks and extreme weather events. And at some point, all of this new technology will need to become part of how utilities, grid operators, regulators, ratepayers and new energy services providers manage the economics of the grid.

DOE has already started releasing funds to 10 “pioneer regional partnerships,” or “early-stage, public-private collaborative projects […]  The projects range from remote microgrids in Alaska and grid resiliency in New Orleans, to renewable energy integration in Vermont and Hawaii, and scaling up to statewide energy regulatory overhauls in California and New York. Others are providing software simulation capabilities to utilities and grid operators around the country, or looking at ways to tie the country’s massive eastern and western grids into a more secure and efficient whole.

Another six “core” projects are working on more central issues, like creating the “fundamental knowledge, metrics and tools we’re going to need to establish the foundation of this effort,” he said (David Danielson).  Those include technology architecture and interoperability, device testing and validation, setting values for different grid services that integrated distributed energy resources (DERs) can provide, and coming up with the right sensor and control strategy to balance costs and complexity.

Finally, the DOE has identified six “cross-cutting” technology areas that it wants to support, Patricia Hoffman, assistant secretary of DOE’s Office of Electricity Delivery and Energy Reliability, noted in last week’s conference call. Those include device and integrated system testing, sensing and measurement, system operations and controls, design and planning tools, security and resilience, and institutional support for the utilities, state regulators and regional grid operators that will be the entities that end up deploying this technology at scale.

Much of the work is being driven by the power grid modernization needs laid out in DOE’s Quadrennial Energy Review, which called for $3.5 billion in new spending to modernize and strengthen the country’s power grid, while the Quadrennial Technology Review brought cybersecurity and interoperability concerns to bear.[…]

DOE will hold six regional workshops over the coming months to provide more details, Danielson said. We’ve already seen one come out this week — the $18 million in SunShot grants for six projects testing out ways to bring storage-backed solar power to the grid at a cost of less than 14 cents per kilowatt-hour.

“We can’t look at one attribute of the grid at a time,” he said. “We’re not just looking for a secure grid — we’re looking for an affordable grid, a sustainable grid, a resilient grid.” And one that can foster renewable energy and greenhouse gas reduction at the state-by-state and national levels. […]

See on Scoop.itGreen Energy Technologies & Development

Energy Storage Compared to Conventional Resources Using LCOE Analysis

In its first analysis of the levelized cost of storage, Lazard finds some promising economic trends.

Sourced through Scoop.it from: www.greentechmedia.com

“[…] “Although in its formative stages, the energy storage industry appears to be at an inflection point, much like that experienced by the renewable energy industry around the time we created the LCOE study eight years ago,” said George Bilicic, the head of Lazard’s energy and infrastructure group, in a release about the report.

Lazard modeled a bunch of different use cases for storage in front of the meter (replacing peaker plants, grid balancing, and equipment upgrade deferrals) and behind the meter (demand charge reduction, microgrid support, solar integration). It also modeled eight different technologies, ranging from compressed-air energy storage to lithium-ion batteries.

“As a first iteration, Lazard has captured the complexity of valuating storage costs pretty well. Unlike with solar or other generation technologies, storage cost analysis needs to account for not just different technologies, but also location and application, essentially creating a three-dimensional grid,” said Ravi Manghani, GTM Research’s senior storage analyst.

In select cases, assuming best-case capital costs and performance, a handful of storage technologies rival conventional alternatives on an unsubsidized basis in front of the meter. Using lithium-ion batteries for frequency regulation is one example. Deploying pumped hydro to integrate renewables into the transmission system is another.  […]

See on Scoop.itGreen Energy Technologies & Development

Demand Response Energy Distribution a Technological Revolution

Demand response (DR) energy distribution appears to be gaining momentum in the United States and elsewhere. In the U.S., however, the DR sector is awaiting a Supreme Court decision that will have great impact on the evolution of the technology, administrative and business models.

Sourced through Scoop.it from: www.energymanagertoday.com

“[…] A lot is going on besides the Supreme Court case, however. Technology evolutions in two discreet areas are converging to make DR a hot topic. The tools necessary to determine where energy is being stored, where it is needed and when to deliver it is have developed over decades in the telecommunications sector. Secondly, the more recent rush of advanced battery research is making it possible to store energy and provide the flexibility necessary for demand response to really work. Mix that with the growing ability to generate energy on premises through solar, wind and other methods and a potent new distributed structure is created.

In October, Advanced Energy Economy (AEE) released a report entitled “Peak Demand Reduction Strategy,” which was prepared for it by Navigant Research. The research found that the upside is high. For instance, for every $1 spent on reducing peak demand, savings of $2.62 and $3.26 or more can be expected in Illinois and Massachusetts, respectively. The most progress has been made in the United States, the report found. Last year, the U.S. accounted for $1.25 billion of the total worldwide $2 billion demand response market, according to JR Tolbert, the AEE’s Senior Director of State Policy. The U.S. market, he wrote in response to questions emailed by Energy Manager Today, grew 14 percent last year compared to 2013.

The report painted a bright picture for the future of demand response. “The key takeaway from this report is that by passing peak demand reduction mandates into law, or creating peak demand reduction programs, policy makers and utilities could significantly reduce costs for ratepayers, strengthen reliability of the electricity system, and facilitate compliance with the Clean Power Plan,” Tolbert wrote. “As states plan for their energy future, demand response should be a go-to option for legislators and regulators.” […]”

See on Scoop.itGreen & Sustainable News

Electric Vehicles Future Threatens OPEC

The oil cartel is living in a time-warp, seemingly unaware that global energy politics have changed forever

Sourced through Scoop.it from: www.telegraph.co.uk

“…OPEC says battery costs may fall by 30-50pc over the next quarter century but doubts that this will be enough to make much difference, due to “consumer resistance”.

This is a brave call given that Apple and Google have thrown their vast resources into the race for plug-in vehicles, and Tesla’s Model 3s will be on the market by 2017 for around $35,000.

Ford has just announced that it will invest $4.5bn in electric and hybrid cars, with 13 models for sale by 2020. Volkswagen is to unveil its “completely new concept car” next month, promising a new era of “affordable long-distance electromobility.”

The OPEC report is equally dismissive of Toyota’s decision to bet its future on hydrogen fuel cars, starting with the Mirai as a loss-leader. One should have thought that a decision by the world’s biggest car company to end all production of petrol and diesel cars by 2050 might be a wake-up call.

Goldman Sachs expects ‘grid-connected vehicles’ to capture 22pc of the global market within a decade, with sales of 25m a year, and by then – it says – the auto giants will think twice before investing any more money in the internal combustion engine. Once critical mass is reached, it is not hard to imagine a wholesale shift to electrification in the 2030s.  […]

A team of Cambridge chemists says it has cracked the technology of a lithium-air battery with 90pc efficiency, able to power a car from London to Edinburgh on a single charge. It promises to cut costs by four-fifths, and could be on the road within a decade.

There is now a global race to win the battery prize. The US Department of Energy is funding a project by the universities of Michigan, Stanford, and Chicago, in concert with the Argonne and Lawrence Berkeley national laboratories. The Japan Science and Technology Agency has its own project in Osaka. South Korea and China are mobilising their research centres.

A regulatory squeeze is quickly changing the rules of global energy.The Grantham Institute at the London School of Economics counts 800 policies and laws aimed at curbing emissions worldwide.

Goldman Sachs says the model to watch is Norway, where electric vehicles already command 16.3pc of the market. The switch has been driven by tax exemptions, priority use of traffic lanes, and a forest of charging stations.

California is following suit. It has a mandatory 22pc target for ‘grid-connected’ vehicles within ten years. New cars in China will have to meet emission standards of 5 litres per 100km by 2020, even stricter than in Europe. […]

In the meantime, OPEC revenues have crashed from $1.2 trillion in 2012 to nearer $400bn at today’s Brent price of $36.75, with fiscal and regime pain to match.

This policy has eroded global spare capacity to a wafer-thin 1.5m b/d, leaving the world vulnerable to a future shock. It implies a far more volatile market in which prices gyrate wildly, eroding confidence in oil as a reliable source of energy.

The more that this Saudi policy succeeds, the quicker the world will adopt policies to break reliance on its only product. As internal critics in Riyadh keep grumbling, the strategy is suicide.

Saudi Arabia and the Gulf states are lucky. They have been warned in advance that OPEC faces slow-run off. The cartel has 25 years to prepare for a new order that will require far less oil.

If they have any planning sense, they will manage the market to ensure crude prices of $70 to $80. They will eke out their revenues long enough to control spending and train their people for a post-petrol economy, rather than clinging to 20th Century illusions.

Sheikh Ahmed Zaki Yamani, the former Saudi oil minister, warned in aninterview with the Telegraph fifteen years ago that this moment of reckoning was coming and he specifically cited fuel-cell technologies.

“Thirty years from now there will be a huge amount of oil – and no buyers. Oil will be left in the ground. The Stone Age came to an end, not because we had a lack of stones.”

They did not listen to him then, and they are not listening now.”

See on Scoop.itGreen Energy Technologies & Development

Venture Capital from GE, Autodesk Invest in Smart Building Technology Boom

Sales of smart building technologies almost could triple to $17.4 billion between 2014 and 2019. That’s driving a flood of investment from corporations and venture capitalists alike.

Source: www.greenbiz.com

>” […] As of this week, you can add cloud software company Lucid to the list of energy-efficiency startups — particularly those that monitor building power consumption for lighting and climate-control systems — attracting substantial cash infusions this year.

Among those contributing to the $14.2 million Series B round disclosed by Lucid this week: GE Ventures, Autodesk, Formation 8 and Zetta Venture Partners.

Lucid plans to use the new funds for enhancements to BuildingOS, a cloud service that analyzes data from more than 160 hardware and software building technologies.

“Lucid’s technology is rapidly connecting many disparate building systems together, making the vision of truly connected buildings and real-time management possible,” said Ben Sampson, an associate with GE Ventures.

Its reference accounts include Genentech, along with more than a half-dozen educational institutions such as Cornell University and Stanford University.

Lucid joins a respectable list of companies attracting private capital this year, as businesses and organizations become more comfortable with gathering data from the Internet of Things.

Research firm Mercom Capital Group reports that startups focused on smart grid and energy efficiency raised more than $325 million in the first quarter.

Two deals last quarter that explicitly focused on building management or analytics: Blue Pillar, which scored a $14 million deal after more than 250 deployments; and Enbala Power Networks, which raised $11 million.

All told, the last year has been incredibly active in the sector, reaching $944 million in 2014. Those investments covered more than 111 deals at a time when the broader field of cleantech has suffered a decline in available capital, according to a separate report from Lux Research.

“While cleantech is declining from its peak of 291 deals in 2008, building energy deals have risen steadily since then, growing by 208 percent over the same period,” Lux wrote in its presentation about funding trends.

One of the more notable deals over the past two years was Distech Controls, which raised about $37 million in May 2013. […]

Why so active?

The spike in funding reflects the rather bullish revenue projects for building energy management technologies over the next decade. Depending on how broadly you view the market, projections vary dramatically.

If you focus just on building energy management, revenue is likely to reach around $2.4 billion this year, growing almost fivefold to $10.8 billion by 2024, according to the forecast from Navigant Research.

Players in the space include not only a slew of startups, but also multinational companies such as Siemans and Intel.

“Building energy management systems (BEMS) represent an important evolutionary step in the approach to facilities and operations management,” said Casey Talon, senior analyst, commenting on that projection. “As the market matures, more integrated and sophisticated BEMS solutions are delivering energy efficiency improvements while also enabling comprehensive business intelligence and strategic management.”

Indeed, if you consider smart buildings from a more holistic perspective, the growth potential is much larger — up to $17.4 billion by 2019, compared with $6.3 billion last year, according to IDC Energy Insights. In North America, spending is being driven by large corporate operational efficiency initiatives. “<

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The Smart City

“With this unprecedented access to information, Smart Cities will deliver new levels of efficiency, effectiveness, safety, reliability, and higher levels of service. This access enables a city to anticipate and prevent problems in areas like reducing accidents by rerouting traffic, and reducing crime by identifying hot spots. New insight also enables the provision of services like finding a parking spot, monitoring air pollution, intelligent lighting, and others. A sense and respond model (a key future enabler) allows for the delivery of many of these services without human intervention.

A next generation of efficiency is also enabled, as asset tracking will streamline operations and insight will deliver unprecedented levels of efficiency. For example, a recent survey of water utilities found a saving potential between $7.1 and $12.5 billion each year through smart water solutions. The chief globalization officer of Cisco has said that smart cities drive energy consumption savings of 30% and water consumption savings of 50%. These environmental benefits include reducing greenhouse gas emissions and improving waste management. Boston University Installed self-powered trash receptacles which wirelessly alerted collection vehicles when they were full, resulting in on-campus trash collection being reduced from 14 times per week to an average of 1.6 times per week.

The Smart City

The Smart City is Defined as a developed urban area that creates sustainable economic development and a high quality of life by excelling in multiple key areas; economy, mobility, environment, people, living, and government. Excelling in these key areas requires strong human capital, social capital, and information and communications technology. We are in the early days of an evolution towards Smart Cities, and IDC Government Insights finds that most cities are deploying these projects department by department. In a recent IDC White paper, they provide a maturity model to describe this Smart City evolution…”

Frank Diana's Blog

Next up in this ongoing look at disruptive scenarios is the Smart City. For the first time in history, more than 50% of the world’s population lives in cities, and that percentage moves to 70% by 2050. This visual effectively captures the dramatic move towards urbanization:

Urbanization Statistics

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