The trick to a successful game of “tug of war” lies in having two sides that are equally matched, but whose strengths are different.
Impasses created by matched sides are less entertaining and substantially more serious in an industry “tug of war” like that currently underway in the energy business.
Government regulators dominated the industry news this week as they made efforts to take charge of shaping the energy industry’s future, kicking off with a Monday morning White House announcement on efforts to encourage smart grid developments nationally.
The announcement left many speculating about the possibility of an American smart grid, in a country with a sprawling transmission system and hundreds of small utilities contributing power to the grid.
FERC issued a document that promises it will reassess pricing mechanisms and market regulations in light of the recent popularity of small-scale commercial and residential energy storage units.
In the private sector, Google’s investment this week of $280 million in SolarCity’s residential rooftop solar panel business will only add to this phenomenon. Thousands of additional power generators may be added to the grid as residential spaces begin to store and produce rooftop energy.
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In celebration of IBM’s Centennial Day of Service on June 15, an IBM team of volunteers in New York City working with NYC °CoolRoofs. The team coated city building rooftops with a reflective surface in an effort to reduce energy usage and lower greenhouse gas emissions by 30 percent by 2030.
Shifting consumers attitudes have also led to the growing popularity of demand response mechanisms. It is a space that has already fueled some debate about pricing mechanisms and consumption.
The EPA has not ignored the complexity of the grid and announced this week that it would delay its proposals for environmental regulations till September. The delay followed American Electric Power’s announcement it would be retiring nearly 6,000 MW of coal by 2014 in preparation for the EPA regulations to come, but the agency stuck to its position that final rules will be promulgated in May 2012.
Perhaps most important for regulators and grid operators is that the power doesn’t stop and that consumers don’t face blackouts.
Super Downsize Me
There are areas of agreement within the broader conflict, including promotion of energy efficiency.
But everywhere, it seems, agencies and private companies are trying to find new ways to cut unnecessary costs and energy use. In many cases, they have found that partnering on efficiency projects has been most effective.
For the military, these costs often come in the form of soldiers lives.
“We have lost many lives delivering fuel to bases around Afghanistan,” General David Petraeus wrote in a memorandum on energy issued by last week, with specific guidelines to commanders increasing on fuel efficiency.
New data shows that the world’s energy consumption is up over 5% this year from 2010, with China leading the way. This may be the reason that developing countries like China and India are also extremely concerned with energy efficiency.
And it is also leaving Americans, who are concerned with greenhouse gas emissions, scratching their heads in bewilderment. Margaret Ryan looks at energy efficiency and why it may have taken a backseat to other business priorities in many American corporations.
Key, Charles Holliday, chairman of Bank of America and former chairman of Dupont told Margaret Ryan, is motivated people. Leadership is needed to create a culture of sustainable energy efficiency. “Use the people you have” to raise energy efficiency, he advised.
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