Solving the Community Energy Puzzle

Michigan Clean Energy SummitOctober 16th, 2012, Hyattsville, Maryland

Key to Community Competiveness

Peter GarforthPrincipal – Garforth International llc

Why Some Communities CareNew Energy Realities…

Investment and Green Jobs Energy cost and competitiveness Community Values and Image Supply quality and security Environmental legislation Weather events Nuclear, gas and coal uncertainties…

Fundamentally Different From Past

Energy ProductivityHow well do we spend our $1.5 Trillion?

*IEA and World Bank – 2009 sources

Key to National & Local Competitiveness

Region Population GDP EnergyEnergy/Capita

Energy/GDP

USA 4.5% 23.0% 17.8% 100 100

Canada 0.5% 2.5% 2.1% 107 108

EU 7.4% 30.3% 13.0% 45 56

Japan 1.9% 7.8% 3.9% 53 65

China 19.7% 6.8% 16.1% 21 307

India 17.1% 2.0% 4.9% 7 319

World 100% 100% 100% 22 198

Dysfunctional Energy Supply ChainFrom fuel to service

70% of all energy

25%

High-cost low returns High risk High greenhouse gas

5%

Pay 100% for fuel - Get less than 10% in services

Copenhagen, Denmark

Guelph, Ontario

Mannheim, Germany

Holland. MI

Arlington, VA

Loudoun, VA

EU - "Municipal"

EU - Total

USA - "Municipal"

USA - Total

0 10 20 30

Global BenchmarkingInforming Community Targets

We know what works!

mt CO2 / capita

We Know What WorksCopenhagen - Integration from Use to Fuel

Triggered by 70’s energy crisis 3.5 tons / capita GHG Efficiency

World leading building efficiency Energy Performance Validation

District Energy Widespread across city

Fuel flexibility Multi-fuel cogeneration Coal, oil, gas, biofuel, waste-to-energy Wind and solar generation

Transport Urban design for bike/walking Efficient trams/trains City-wide EV plans

High Value Employment

2009 – Voted “Second Most Livable City”

Copenhagen ResultsDecouple Growth from Energy Use

Systematic Energy Integration WorksSource: LSE Cities Study - 2012

Mannheim City UtilityIntegrated Utility – Multiple Sources

Integrated Multi-Utility Multiple Sources Public-Private Energy Services

51% City Owned 49% Private Capital

Benefits Local accountability Minimize infrastructure duplication Optimized supply choices Multi-media Smart networks Competitive costs Optimization between media Business innovation

Low cost – clean – flexible - evolving

MicroCHP

WasteCHP

CoalCHP

GasCHP

WoodCHP

SolarCHP

Cooling, heat, electricity, steam, gas, water

Integrated networks control

Energy Zoning

*Source: MVV Energie AG

Challenging the Status QuoUS & Canadian Cities Breaking the Mold

Fully Integrated Breakthrough targets All aspects of energy

Economic Technical Environmental Institutional Social

Multi-decade Globally benchmarked

Successful Community Energy PlanningThree Groups of Balanced Benefits

Something for the Entire Community

Competitiveness Security

Environment

Successful CEP TeamLocal Expertise – Global Perspectives

Efficient Built Environment

Efficient Transportation

Multi-utilityDistribution /Smart Grids

IntegrationEconomic

SocialEnvironmental

Technical

Electric Utility

Clean & Renewable Supply options

Gas Utility

Efficient Industry

Combine City Staff and Consultants

Develop Integrated StrategiesLoading Order Prioritization

Energy Efficiency Efficient homes and buildings Urban design for transport efficiency Efficient vehicles Efficient industry Local employment for commuting efficiency

Heat Recovery Distributed combined heat and power District Energy in higher density neighborhoods District Energy on commercial/industrial parks Use existing “waste” heat

Integrated Approach – Tailored for Community

Develop Integrated StrategiesLoading Order Prioritization

Renewable Energy Electricity - Solar PV, wind, run-of-river hydro Heat - Solar thermal, biomass, geothermal Heat and power – waste-to-energy, biomass Fuels – Ethanol, Biodiesel

Energy Distribution Optimize community / regional investments Flexible community distribution approach –

electricity, gas, District Energy … Flexibility to use different fuels and energy

conversion technologies Smart metering and control

Integrated Solution – Tailored for Community

Develop Enabling StrategiesMove from Planning to Implementation

Local Governance Strategic priorities, oversight, flexible teaming, investment

& ownership

Policy and Planning Urban design, building performance, energy services,

incentives, local flexibility

Local Utility Structures Energy service integration – efficiency, electricity, gas,

heating, cooling, water… Supply choice integration – heat recovery, fossil,

centralized or distributed

Integrated Energy Information Networks Full supply chain, all energy modalities Community reporting and transparencyRethink Community Level Energy Integration

Scale Project - Industrial Park Integrated Energy

Services

Scale Project - Hope College Campus

Scale Project - Historic District Single Family Neighborhood

Scale Project - High School / Hospital / Aquatic

Center

Holland: InitialScale Projects

Scale Project - District Heating Initial Network

Potential Industrial link to District Heating

Benefits of Winning!Competitive-Sustainable-Flexible

CommercialCommercial

• Reduced costs• Rental values• Low vacancy• Productivity

• Reduced costs• Rental values• Low vacancy• Productivity

BanksBanks

• Collateral Value• Credit worthiness

• Collateral Value• Credit worthiness

ResidentResident

• Lower utility costs• Improve resale value• Enhance employment• Improve quality of life

• Lower utility costs• Improve resale value• Enhance employment• Improve quality of life

DeveloperDeveloper

• Premium prices• Low carrying time• Reduced investment

• Premium prices• Low carrying time• Reduced investment

• Environmental impact• Community growth• Attractive development• Competitive energy services• Reliable energy supply• New business opportunities

• Environmental impact• Community growth• Attractive development• Competitive energy services• Reliable energy supply• New business opportunities UtilitiesUtilities

• Higher returns• Emissions reduction• Customer intimacy• Diversification

• Higher returns• Emissions reduction• Customer intimacy• Diversification

• Tailored energy• Lower costs• Sell waste energy• Reduced CO2 risks

• Tailored energy• Lower costs• Sell waste energy• Reduced CO2 risks

IndustryIndustry

AcademicAcademic

• Sustainable curriculum• Lower costs• Student magnet• Global network

• Sustainable curriculum• Lower costs• Student magnet• Global network

CommunityCommunity

Breakthrough Benefits – Restructured Relationships

Thank You

Peter GarforthGarforth International llcpeter@garforthint.com

+1 (419) 578 9613 - Office+1 (419) 320 0664 - Mobile