It appears that between the Gulf Oil spill, climate change uncertainty, rising energy costs and the availability of future supplies has finally shaken American consumers out of their comfort zone.
Long accustomed to cheap and easy access to energy, American consumers have been notoriously resistant to changing their ways to use less energy. However, according to a recent study by GE, 79% of U.S. consumers would be willing to make short term changes in order to achieve long-term energy benefits.
A full 88% of those polled would start to use devices like smart meters to help them use energy more efficiently, and of this group, 82% say that smart meters and related devices will be “vital technologies” for the future.
Perhaps the most striking result is the 72% of respondents who agree that America’s energy use and consumption habits, if left unaltered, could stifle future economic growth. This result, GE says, proves that “consumers are ready to think differently about how they use energy.”
“There are some things that are essential to achieving a desired quality of life,” says Bob Gilligan, VP of Digital Energy for GE Energy Services, “and Americans overwhelmingly agree that investing in our nation’s energy future is one of them.”
BEIJING, May 27 (UPI) — China and the United States signed eight green energy deals Wednesday in Beijing but financial details were not disclosed, Chinese media reported.
The deals, designed to increase cooperation in the sector, cover areas such as aviation biofuel, distributed energy systems using natural gas as fuel, smart meters and cellulosic ethanol, the China Daily reported. A number of Chinese and U.S. companies would be involved in the eight deals.
The report quoted analysts that the agreements between the world’s two largest energy users would encourage global collaboration in increasing energy efficiency and protecting the environment.
The agreements came at the conclusion of the two-day China-U.S. Strategic and Economic Dialogues in Beijing.
Zhang Guobo, head of the National Energy Administration, also noted bilateral collaboration in renewable energy development, adding: “The United States has advanced technology, and China has a huge market,” the China Daily reported.
U.S. Ambassador to China Jon Huntsman was quoted as saying the two countries will “take every angle” to ensure their cooperation in energy and environment.
Zhang said renewable energy development is important for China to achieve goals of increasing the use of non-fossil energy to 15 percent of primary energy use by 2020, and reducing carbon intensity by 40 percent to 45 percent in 2020 from 2005 levels, China Daily reported.
He said China will continue to focus on the development of hydro, wind, solar, and biomass energy in the renewable sector.
According to a new report by Global Industry Analysts (GIA), increasing demand for electricity is projected to boost the market for global smart grid to $186.7 billion by 2015.
Smart grid software and infrastructure is becoming increasingly important as governments worldwide work to upgrade electricity distribution systems, which in the case of many industrialized nations, are aging poorly and becoming inefficient. Likewise, the smart grid is helping to streamline the deployment of electricity from renewable energy technologies like solar and wind into the central power grid.
Right now, the United States is the world market leader in smart grid technology. In the future, GIA also expects demand to grow for various smart grid service providers, including makers of software, hardware and communications equipment.
European Union countries aim to reduce emissions of carbon dioxide by 80% below 1990 levels by 2050; keeping within scientific recommendations to limit global temperature increases to 2°C. Major new investment will be needed to achieve cuts on this scale, specifically in renewable power projects and electricity infrastructure upgrades.
However, despite these costs, a new report from three leading consulting firms predicts that the cost of electricity in Europe in 2050 would be no higher than it would under a “business as usual” plan with no carbon-reduction action taken.
The study, jointly published by McKinsey, European Climate Foundation and E3G, highlighted the following 3 points:
- Renewable power infrastructure is capital-intensive at the onset, yet over time costs less to run than do traditional power plants.
- Replacing outdated coal-fired power plants with new ones is actually more expensive that substituting wind or solar farms instead
- Smart grid investment continent-wide will provide major savings in energy efficiency, and help improve the reliability (and price) of renewables.
Nations around the world have been stepping up their investments in smart grid software and technology, most recently the United States and Japan.
Last year, the United States Department of Energy (DOE) allocated millions of dollars in stimulus funding for smart grid development projects to update the nation’s energy infrastructure. Those grants are now being turned into actual projects on the ground. Companies like mid-Atlantic energy provider Pepco Holdings and Pacific Northwest-based Netezza are utilizing this funding to conduct regional smart grid tests to help consumers streamline energy usage and reduce inefficiencies.
Japan has enlisted Toyota, Panasonic and Toshiba in its $1.1 billion smart grid trial. According to Bloomberg, smart meters, electric charging stations and solar panels will be incorporated into homes across four cities including Yokohama and Kyoto starting at the end of the year. This trial is part of Japan’s goal to meet 10% of its national energy demand with renewable energy by 2020.
What is the fastest and most immediate way to reduce the globe’s rapidly rising demand for energy? According to a publication from leaders at the World Economic Forum, entitled Energy Vision Update 2010; Towards a More Energy Efficient World, energy efficiency is the answer.
By closing the “efficiency gap” between today’s wasteful production methods and other more streamlined options, we can reduce global resource strain, and potentially save billions of dollars. For every dollar spent on efficiency methods, the report estimates savings of $2-$4 in what would have been wasted energy.
Important developments in this sector are occurring around the world, including massive smart grid investment in South Korea, construction of new high voltage transmission lines in China and development of smart grid software in high-tech hubs in the United States and India.
The following chart shows where we are now… and how far we still need to go.
China’s energy needs are predicted to double over the next ten years, and the nation is making big moves into the smart grid technology space, says smart grid research and consultancy firm Zpryme.
In an effort to modernize its power grid, China is planning $7.3 billion (USD) in federal funding for smart grid technologies. The U.S. runs a close second, with a planned $7.1 billion in Department of Energy (DOE) grants for smart grid projects.
The smart grid will play an important role in China’s “master plan,” says Zpryme, and data from the China Electricity Council shows China’s investment in smart grid has been steadily increasing over the past four years. In 2009, China’s investment in smart grid was actually higher than its overall investment in new power generation, with $51.3 billion USD and $43.9 billion invested respectively.
Major companies are taking notice of this trend, and China has already formulated partnerships with smart grid-focused conglomerates like GE, IBM and Cisco. In a recent Business Week article, IBM predicted over $400 million in smart-grid revenues to come from China over the next four years.
New Delhi, 4 February 2010 – The World Business Council for Sustainable Development (WBCSD) today launched the Vision 2050 report ( 2.6 MB), a study that lays out a pathway leading to a global population of some 9 billion people living well, within the resource limits of the planet by 2050. The report, released at the World CEO Forum in New Delhi, India, was compiled by 29 leading global companies representing 14 industries.
This work results from an 18-month combined effort with CEOs and experts, and dialogues with over 200 companies and external stakeholders in some 20 countries.
The report presents new opportunities for business in a broad range of business segments with the foresight to lead their societies on a sustainable business development agenda. Entitled Vision 2050: The new agenda for business, the report “lays out the challenges, pathway and options that business can use to create an opportunity-rich strategy, both regionally and globally, that will lead to a sustainable world,” said Dr. Mohammad A. Zaidi, Executive Vice President and Chief Technology Officer of Alcoa, who led the project as one of four co-chairs.
“The world already has the knowledge, science, technologies, skills and financial resources needed to achieve Vision 2050. However, concerted global action in the next decade will be required to bring these capabilities and resources together, putting the world on the path to sustainability,” explained WBCSD President Bjorn Stigson.
The publication outlines a future in which 9 billion people live well, enjoying health, food, shelter, energy, mobility, education and other basics of life. Syngenta CEO, Michael Mack added that “humanity has largely had an exploitative relationship with our planet; we can, and should, aim to make this a symbiotic one.” In the Vision 2050scenario, global society attains this standard of living at a sustainable rate, without further harm to biodiversity, climate and ecosystem services.
The report states that the world already has the resources to achieve Vision 2050,but there is a catch: “The radical changes highlighted in Vision 2050 demand a different perspective from business leaders, requiring them to rethink how they operate to stay on-track for a sustainable future,” added Samuel A. DiPiazza Jr., former CEO and Chairman of PricewaterhouseCoopers. This includes a radical transformation of global markets, governance and infrastructure, and a re-thinking of our ideas of growth and progress.
Vision 2050 spells out the “must haves” – the things that must happen over the coming decade to make a sustainable planetary society possible. These include incorporating the costs of externalities, starting with carbon, ecosystem services and water, into the structure of the marketplace; doubling agricultural output without increasing the amount of land or water used; halting deforestation and increasing yields from planted forests: halving carbon emissions worldwide (based on 2005 levels) by 2050 through a shift to low-carbon energy systems and improved demand-side energy efficiency, and providing universal access to low-carbon mobility.
As part of this transformation, Vision 2050 calls for a new agenda for business: to work with government and society worldwide to transform markets and competition. “Sustainability will become a key driver for all our investment decisions,” added Idar Kreutzer, CEO of Storebrand and another project co-chair. New rules for markets will reframe environmental challenges as economic challenges, driving innovation and competition in the direction of sustainability and away from resource- and energy-intensive production. Rationalizing prices to include such externalities as climate and biodiversity impacts will make corporate environmental efficiency a true competitive advantage across all industries and regions.
Business will lead market change by doing what business does best: forming partnerships, creating efficiencies and competitive advantage, seizing opportunities and meeting customer needs. At the same time, a shift toward sustainability will trigger trillions of dollars in new investments in infrastructure, technology and human services, creating new opportunities for business to thrive and grow. A recent study commissioned for this project with PricewaterhouseCoopers and released today indicates that this investment could reach US$ 3-10 trillion per annum in 2050.
Vision 2050, with its best-case scenario for sustainability and pathways for reaching it, is a tool for thought leadership, a platform for beginning the dialogue that must take place to navigate the challenging years to come. “It is hoped that the Vision 2050 work will be used for many years to come. It is designed to be a platform for companies when deliberating strategies and for dialogue with governments and society about how to realize the sustainable future,” concluded Per Sandberg, Project Director for Vision 2050.
New market research from Pike Research predicts the investment in smart grid technology could grow to $200 billion within the next five years.
The need for a “smart,” responsive and interactive grid management system is growing as new renewable energy sources come online and nations around the world clamp down on losses of energy due to grid inefficiencies.
Smart meters may currently be the “highest-profile” segment of the smart grid market, says Pike Research managing director Clint Wheelock, but they are really “just the tip of the iceburg.” Pike’s analysis predicts 84% of smart grid investment will go towards grid automation initiatives, 14% towards advanced metering systems, and 2% towards management of electric vehicle charging.
Washington – US President Barack Obama on Tuesday announced 3.4 billion dollars in new government grants to modernize the country’s electric power grid. The funds will help make the US electricity-generating grid more efficient and accommodate an expansion of renewable energies like wind and solar power. The money comes from a 787-billion-dollar fiscal stimulus measure approved in February.
The government grants were being matched by industry groups, amounting to total funding of more than 8 billion dollars. Obama said the US electricity grid “still runs on century-old technology” and was in desperate need of an upgrade.
Many renewable energy alternatives have struggled to gain traction in the United States because they are produced in rural parts of the country that have not been properly linked up with the national power grid.
The investment “will make our grid more secure and reliable,” Obama said in making the announcement at a solar plant in Arcadia, Florida.
“It will allow us to more effectively transport renewable energy generated in remote places to large population centers, so that a wind farm in rural South Dakota can power homes in Chicago,” he said.
As it expands its clean technology investments, General Electric (GE) has taken stakes in two new startups. GE, the largest conglomerate in the United States, announced it had acquired stakes in SolarEdge, an Israel-based startup that works to increase the efficiency of solar photovoltaic panels, and Tendril, a Colorado-based smart grid company. GE’s previous clean tech investment proved to be a profitable one. Stock prices in A123 Systems Inc., a next-generation lithium ion battery company, have soared since the company’s successful initial public offering last month.
Siemens Aims for €6 Billion Worth of Smart Grid Orders by 2014
Already one of the largest suppliers of Smart Grid systems worldwide, Siemens AG wants to strengthen its position and “grow twice as fast as the overall market,” according to a recent press release. Over the next five years, Siemens expects the smart grid market to reach €30 billion. The company estimates it will fill €1 billion in new orders this year alone, and hopes to grab 20% of the global market share by 2014. “The world needs intelligent power grids in order to meet the growing demand for energy in a way that is eco-friendly and reliable. We estimate the demand for electricity will double by 2030, due to trends like e-mobility, which is just emerging,” said Siemens Energy Sector CEO Wolfgang Dehen. Smart grids will become more important as new renewable energy technologies increase their energy contributions, and can also help reduce energy lost to inefficiencies across the grid. Around the world, economic stimulus packages have included smart grid funding packages; the U.S., for example, plans to spend approx. €3 in this sector over the next few years.
Utility Seeks Grant For Largest-Ever Grid Storage Battery for Wind Power
Southern California Edison is seeking $25 million in U.S. Department of Energy grants to construct a pilot project involving the world’s largest-ever grid storage battery. Built by Massachusetts-based A123 Systems, the utility sized battery will be used to store wind power generated by farms in California’s Tehachapi region. New state requirements have led many utilities to increase renewable energy generation, but because of the inherent intermittency of technologies like solar and wind, storing unused power for later use has always been a problem. By 2015, Southern California Edison plans to have 4,500MW of wind power in the Tehachapi region and needs a reliable storage mechanism before that time. “We do recognize that there is a need for energy storage to help with mitigating some of the intermittency of wind,” said Paul DeMartini, VP of Advanced Technologies. The utility has been one of the nation’s leading renewable energy providers, transmitting 65% of all solar energy produced in the U.S. last year.
Nations around the world have been stepping up their investments in smart grid software and technology, most recently the United States and Japan.
New market research from Pike Research predicts the investment in smart grid technology could grow to $200 billion within the next five years.