From Mega-Watts to Nega-Watts

Nega-Watts (energy conservation) is overlooked in favour of “mega-watts” (energy generation).  So says Dr Morgan Williams, previously New Zealand’s Parliamentary Commissioner for the Environment for the last 10 years says.

“Get Smart, Think Small” concludes that local energy systems are cost effective, resilient, provide good market returns on investment, and should be emphasis right now.  Since Thomas Edison over 80 years ago, the whole regulatory environment has been focused on unlimited, large-scale, centralised energy supply.  It’s time to change the paradigm.

Mega-Watts Take the Media and Money Headlines

The smart money is hot on the trail of the next industrial revolution.  A riptide of capital is mainstreaming biomimicry and clean tech, now the third largest domain of venture capital investment. In Silicon Valley, the “watt.com” era has dawned. Compared with $100 billion for the entire Internet market, the worldwide energy market is $6 trillion.

Google just put forth a $4.4 trillion Clean Energy plan. By 2030, it proposes to slash fossil fuel use by 88% and CO2 emissions by 95%. Quercus Trust , a Californian VC has over 34 companies funded.  Quercus runs second to Khosla Ventures for VC money.

There’s mounting pressure on Uncle Sam because government policies make or break markets; and for the past 8 years Bush has not provided direction except for more oil wells!

Astoundingly the US has no national energy policy. That’s hopefully about to change. David Orr, the nation’s leading environmental educator, helped assemble a national network to deliver PCAP — the Presidential Climate Action Plan. It’s a pragmatic 100-day action plan for the incoming Obama 2009 administration, and it’s in play.

But for now, in the US the real action is happening at local and regional levels and has a way to go to catch up with the rest of the world.

California, the world’s sixth largest economy, passed AB 32, the world’s first comprehensive climate change legislation, and is gearing up to install 12.5 square miles of Photo Voltaic solar panels (PV);  12 times the previous largest. Massachusetts just passed the nation’s most far-reaching package of renewables and green jobs legislation. Texas is about to build the biggest wind installation ever, surpassing Germany as the world leader.

Other Countries

The number one use of solar energy is Germany. It invested nearly US$5 billion and captures almost 50% of the world market of PV cells. The “solar park” in Arnstein, Bavaria is one of the biggest PV plants in the world at 12 MW. It became operational in 2006 with more than 1,400 PV solar panels.  Germany legislated with Renewable Energies Laws (EEG) in 2000.

Germany’s solar industry is not limited to the production of PV for electricity. Other notable usage includes solar panels for home water heating system. The solar hot water market is over US$1.5 billion per year.

The next biggest country in terms of usage of solar energy is Spain. Their PV solar energy usage has a world market share of 27%. Their latest is a 60 MW solar field in Olmedilla de Alarcón, near Cuenca. Opening in 2007, a solar park 12 miles outside of Salamanca, has 70,000 PV panels divided into three 36-hectare arrays of 13.8 MW and powers 5,000 homes.

Spain in 2006 mandated all buildings supply 30 to 70% of hot water by solar, and if over 4000m2 use PV as well.

Japan and the US have an 8% market share in the PV world market.

Israel required all residential buildings to install solar water heating systems in the early 90s.

China is the single largest solar hot water producer, partly due to energy shortage. The Evacuated Tube was an Australian invention, taken back to China because the economic and legislative framework is Australia was not supportive of solar energy.

Conclusions:

Get Smart, think Local is the smart way to address climate change initiatives cost effectively. Dreaming the Future Can Create the Future is an article about how to achieve these local solutions.

There needs to be the right legislative environment and it is clear that Australia has only partially addressed some of these issues with initiatives such as RECs and ETS.  Australia, state and Federal, needs to mandate energy efficiency, to make the process happen now.  Initiatives could be similar to Spain, to mandate solar hot water, and mandate PV for larger buildings.
Lobby politicians.  Without informed politicians, the focus will be on big schemes not small schemes and established mega-watt producers will continue to get air-time.

Leave the high tech solutions to the money men. Go with the local energy supply and install a solar hot water system to reduce your residential energy footprint by 30%.  No fancy technology required; get an immediate return on your investment; and it is safer than money in a bank (or in market led securities!)


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