creating and sustaining clean energy markets sustainable energy fund energy service provider...

Creating and SustainingClean Energy Markets

Sustainable Energy FundEnergy Service Provider Conference

Hershey, PAJanuary 29, 2011

Clean Energy Imperative

“ It’s about national power. Everything America (or any country) can do to go green today will make it stronger, healthier, more secure, more innovative, more competitive, and more respected. What can be more patriotic, capitalistic and geostrategic than that?”

Thomas Friedman, “Hot, Flat and Crowded”

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Recent Headline: “Residential Energy Efficiency Market Poised

for Strong Growth During the Economic Recovery”Pike Research, Energy Efficient Homes, 2/2/10

ENERGY EFFICIENCY

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Drivers of EE Market

• Government:– ARRA funding– DOE’s Weatherization Assistance program increase

• Utility energy efficiency program mandates• Manufacturers: New offerings and rebates

from product manufacturers• Consumers: Increased demand due to

environmental awareness and incentives

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Residential Energy Efficiency Market(Billions)

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2009 2014

$38.3 $50.2

31%

Source: Pike Research, Energy Efficient Homes, 2/2/2010

Home Energy Audits

Home Improvements

Energy Star Appliances

Residential EE Growth Areas

• Home Energy Audits• Energy Efficient Home Improvement: Includes

upgraded electrical systems, appliances and major equipment, HVAC systems, roofing replacements, and window/door replacements

• Energy Star certified refrigerators and clothes washers

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Commercial Energy Efficiency Market

• Urban Land Institute estimates market for Commercial energy efficiency retrofits from 2010 – 2020 $190 Billion

• EE retrofits typically save 20% to 30% of energy use, depending on building's age, type, design, condition and maintenance

Source: Urban Land Institute, New Tools, New Rules, 10/2010

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Drivers of Commercial EE Market• Operating-cost reductions• Sustainability initiatives & image • Funding for new markets or lines of service• Improved employee working environments, =

employee retention and higher productivity• Lower building vacancy rates and tenant

turnover• Reduced risk due to energy price volatility

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RENEWABLE ENERGY“From Beijing to Seoul and Washington DC to Brussels, clean

energy has become a driving force for economic recovery”“Total investments in new clean- energy generation capacity

outpaced conventional fossil fuels for the past two years in a row. In the U.S., wind power roughly matched natural gas as the leading source of new electricity generation for the third consecutive year.

Clean Energy Trends 2010

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Drivers of Renewable Energy Markets• Government:– State RPS – 29 states enacted– State system benefits funds & carbon auctions– Federal ARRA spending - $100B/$787B– Federal tax credits – 8 yr extension ITC; 3 yr PTC; 30%

grant; utilities eligible for ITCs• Private Equity: Percentage of Investment

portfolios grew from 11.4 percent in 2008 to 12.5 percent in 2009

• Sustainability initiatives • Consumer demand

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RE Growth, by Resource(Billions)

BiofuelsSolarWindTOTAL

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2007 2008 2009 2019

$25.4 $34.8 $44.9 $112.5

20.3 51.4 36.1 114.5

30.1 29.6 63.5 114.5

Source: Clean Edge, Clean Energy Trends 2008, Clean Energy Trends 2009

75.8 115.9 $144.5 325.1

40% 35% 25%

State Renewable Portfolio Standards

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29 states and DC have an RPS

Challenges of RE Growth

• Stock market declines affect IPO markets• Tightened credit markets• Cumbersome federal procurement process• Increasing NIMBY and regulatory challenges• Escalating cost of materials• Intermittent nature solar & wind

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Future Drivers

• “Smart Grid” • Infrastructure:

– ”Green Power Express”-North Dakota -Indiana transmission line 3,000 miles of (765 kV) transmission - $10- $12 B

– Offshore Wind- Cape Wind 300 MW

• Utility scale energy storage • Increase in micro grids • Developing nations

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CONTACT INFORMATIONCONTACT INFORMATIONEllen Lutz Ellen Lutz

215-242-1424215-242-1424elutz@cleanmarketswork.comelutz@cleanmarketswork.com

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