NW Energy Efficiency Alliance Receives $11M for Green Industrial

 

Aug 20 - Daily Journal of Commerce (Portland, OR)

Northwest Energy Efficiency Alliance will begin promoting green practices in the industrial sector this fall after receiving an $11 million allocation from its board of directors earlier this month.

The board also allocated $2.2 million to the organization for two informational programs and $925,000 for a program to improve the efficiency of computer power-supply products.

The $11 million allocation clears the way for the alliance, a nonprofit corporation backed by electric utilities, public benefits administrators, state governments, consumer groups and efficiency industry representatives, to begin its five-year campaign to increase energy efficiency in the industrial sector. The allocation only funds the effort through 2007, although the alliance's strategic plan calls for a campaign through 2009.

Northwest Energy Efficiency Alliance is targeting the industrial sector's efficiency practices because it believes the industrial sector, more than most other markets, is bound by its own fiscal situation to listen to advocates of sustainable business practices. The alliance's strategic plan notes that the sector is in a state of decline with significantly reduced resources, including staff and capital. With the industrial sector needing to improve its bottom line, the Northwest Energy Efficiency Alliance expects to find listeners receptive to its plan to alter the entire sector by only changing its energy practices.

Industrial facilities are concerned about their bottom line and getting the project out the door, said the alliance's Bob Helm, who will manage the application of the $11 million to the industrial sector. In improving the processes, energy is just one component of that. If you enhance that one component, you affect the whole system. It's what we call non-energy impact, in which you may reduce labor costs and improve product quality and production.

While the Northwest Energy Efficiency Alliance frequently engages in campaigns to influence a specific practice in an industry, its industrial sector campaign will take a more holistic approach, focusing on market transformation as opposed to acquisition programs of the utilities, Helm said.

Most utilities have a rebate program, where they give the customers so much in horsepower for upgrading to a different motor, or they'll subsidize compact lights, he said. The industrial initiative is looking longer term for market transformation - We will be working with corporations on business practices to incorporate energy into planning and production improvements and how they make their decisions for projects, to get them to utilize energy as part of those decisions.

According to Northwest Energy Efficiency Alliance, the industrial sector initiative will save the Pacific Northwest nearly 130 average megawatts of electricity by 2015 at a total cost of about $0.01 per kilowatt-hour through 2015.

An average megawatt is the amount of electricity needed to power about 700 homes in the Northwest for one year.

The alliance expects to select a project manager to manage the entire project in mid- to late October. Also needed are channel managers for each of six markets - compressed air, refrigeration, pulp and paper, motors, pumps and food processing - who will design an overall program for their respective markets.

The five-year campaign will begin once the positions are filled.

In addition to the industrial sector initiative, the Northwest Energy Efficiency Alliance's Board of Directors allocated up to $1,695,000 over three years to continue funding an energy efficiency information service, and approved $525,160 for a monthly online newsletter and Web site.

The board also allocated $925,000 for the initiative 80-Plus Efficient Power Supplies for PCs. As part of the initiative, Ecos Consulting will work with computer manufacturers to encourage the purchase of computers with highly efficient power supplies through a buy-down that allows manufacturers to sell these computers at the same price as computers with less-efficient power supplies.

Northwest Energy Efficiency Alliance earlier this year launched a residential construction program, Energy Star Homes Northwest, which is an effort to get builders and developers in the Pacific Northwest to construct homes that meet Energy Star requirements.

Most builders in the Northwest are already familiar with Energy Star requirements, but some are hesitant to meet them because they fear costs would be too high, said Marci Sanders, the alliance's residential sector manager. The Energy Star Homes Northwest program is an attempt to assuage those fears.

Costs are always the issue with the builder, Sanders said. They want to know, 'How much is it going to cost me to do an Energy Star home?' And, also, (they wonder whether) 'it's a really different way and I have to get my trades to do something in a different way.' Those are the major barriers.

The Energy Star Homes Northwest program will run through 2005.