2. Technology, Energy Efficiency & Renewable Energy for Emission Reduction John Morrison and Ward Lenz Advanced Energy April 20, 2004

3. Advanced Energy Basics Non-profit public benefits corporation funded by electric bill surcharge. Formed in 1980 by the NC Public Utilities Commission. Focus on energy efficiency, electrotechnologies and green power.

4. Outline Efficiency and Air Quality Efficiency and Technology + Economics Renewables Bringing it Together: Economics

5. Source of Air Quality Problems Conversion of energy into work and byproducts Can clean the conversion byproducts What they should do Can reduce consumption What we can do

6. Projected Energy Use Total U.S. Energy Production vs. Consumption, 2000-2020 0 20 40 60 80 100 120 140 20002005201020152020 Quadrillion Btu per year Total U.S. Production Total U.S. Consumption Source: Energy Information Administration projections Critical Gap

7. Efficiency: Residential Building Codes High Performance Homes

9. Cambridge Homes Winner of National Association of Home Builders Gold Medal for incorporating High Performance into production Guaranteed Energy (25-50% less heating and cooling) Greater profits

10. High Performance Homes? Quality Control!!! Air Barrier Insulation Windows HVAC Ventilation Combustion Safety

12. Emissions Impact 3.5 million households in NC Save 3,300 kWh/household/year 4,610 pounds CO2 reduction 16 million pounds CO2 reduction in NC

13. Economics Benefit to builder is $$$ Benefit to buyer is $$$ Benefit to community is reduced energy consumption and emissions

14. Industry Motors: As much as 70% of electricity used in industry goes through a motor Slight increase in motor efficiency can save lots of energy Key is reliability

16. Motor Efficiency and AQ 100 hp motor 1% efficiency gain = 5,500 kWh savings 7,700 pounds CO2 reduction per year

17. Motor Efficiency and AQ 100 hp motor 1% efficiency gain = 5,500 kWh savings 7,700 pounds CO2 reduction per year Only $431 per year savings

18. Key Barriers Lack of awareness: Perception by plant management that energy saving opportunities are small and not cost-effective For a 250 hp pumping system operating for 10 years at $0.05/kWh… Purchase Cost = $28,000 Energy Costs = $750,000 Maintenance & Misc. Costs = $260,000 Purchase cost is just the tip of the iceberg! Lack of Corporate Energy Management: Energy not part of most corporations business strategy Limited plant staff: Plant engineering has little time to find energy saving opportunities First cost thinking: Lack of recognition by supplier and customer that energy costs are key part of pumps life cycle costs

19. Industry Electrotechnologies: Powder coating – VOC reduction, improved product quality, improved productivity, improved profits Process heating – better control

20. Industrial Economics Companies MUST make money Energy consumption is small part of their picture Find the companys pain and help fix it. Solution often reduces emissions and saves energy

22. Transportation Hybrid Electric School Bus Produced in North Carolina Energy savings Emissions reductions Jobs

23. Renewable Energy NC GreenPower Wind, solar Biomass Landfill gas

24. Bringing It Together No single silver bullet Figure out how to make money or ease pain Make their job easier Reduce costs

25. Technology, Energy Efficiency & Renewable Energy for Emission Reduction John Morrison and Ward Lenz Advanced Energy April 20, 2004

26. 909 Capability Drive, Suite 2100 Raleigh, NC www.advancedenergy.org