EREN Network News

February 7, 2001

News and Events

• California Adds $404 Million in New Energy-Saving Programs
• California Water Agencies to Generate Their Own Power
• Siemens Solar to Manufacture Solar Panels in Los Angeles
• U.S. Mayors Call for Cutting Energy Use by 10 Percent
• Trash-to-Ethanol Facility in New York State Moves Ahead
• Hybrid Electric Buses Being Added to Denver Open-Air Mall

• Canadian Hydropower Association

• A More Detailed Look at the California Energy Situation
• Insurers: Climate Change to Cost $300 Billion Annually

News and Events

California Adds $404 Million in New Energy-Saving Programs
California Governor Gray Davis announced last week that the state will spend more than $800 million this year to encourage energy efficiency and electrical load reductions. A new program, funded at $404 million, will augment the $424 million in programs already being carried out through the California Energy Commission and the Public Utilities Commission. The new program includes an additional $75 million in rebates for consumers who replace inefficient appliances, $50 million to improve energy efficiency in state buildings, and $50 million for reflective lighting and roofs, improved shading, and other measures for commercial buildings. See the Governor's February 1st press release.

California continues to face critically tight supplies of electricity. Today is the 23rd day under "Stage Three" alert for California, meaning that the state's electrical demand is expected to be within 1.5 percent of the available power supply. The company that operates the California electrical grid, the California Independent System Operator (ISO), estimates that conservation efforts are saving between 600 and 1000 megawatts — currently about 2 to 3 percent of California's peak electrical load. See the California ISO press releases.

California Water Agencies to Generate Their Own Power
The Association of California Water Agencies-Utility Service Agency (ACWA-USA) announced last week that it had reached agreements with two companies to assist members' purchase of solar power devices and microturbine electricity generators. Water agencies throughout the state are now able to buy solar electric systems at 30 percent off the retail price and will also be able to buy 30-kilowatt and 60-kilowatt natural-gas-fueled microturbine generators at a discount. The deals could supply up to 140 participating water agencies with alternative power sources amid the current California energy crisis. See the ACWA-USA press release.

There is, in fact, a significant potential for such "distributed generation" approaches to help meet U.S. power needs. One example is a project announced last week by Sixth Dimension, Inc. and Celerity Energy LLC. The companies have created a network of existing standby generators throughout New Mexico that can be called upon to provide peak power to the Public Service Company of New Mexico. The network will provide 25 megawatts of generating capacity, enough to power 5,000 homes. See the Celerity Energy press release.

Siemens Solar to Manufacture Solar Panels in Los Angeles
The Los Angeles Department of Power and Water (DWP) announced yesterday that Siemens Solar, a leading manufacturer of solar photovoltaic systems, will open a solar panel manufacturing facility in Los Angeles. The Siemens Solar facility will manufacture solar panels for residential and commercial systems and will also include a showroom and a training center for installers.

The facility will employ about 50 people, and its products will qualify for a DWP cash incentive. DWP customers can receive an incentive payment of up to $5 per watt for installing solar power systems manufactured in the city (those manufactured elsewhere earn at most $3 per watt). Residential systems can earn incentive payments up to $50,000; commercial systems can yield up to $1 million in incentives. See the DWP press release.

A similar arrangement led last year to a commitment from Spire Corporation to start manufacturing operations in Chicago — a venture called Spire Solar Chicago. The venture's latest accomplishment is a 30-kilowatt system installed on the roof of Chicago’s Peggy Notebaert Nature Museum. See the Spire press release.

U.S. Mayors Call for Cutting Energy Use by 10 Percent
Mayors from throughout the United States called in January for a 10-percent across-the-board reduction in energy use in America's cities and communities. Expressing concerns about an energy crisis, the mayors called for national energy policies that would further this goal. The announcement was made during the 69th Winter Meeting of the U.S. Conference of Mayors. See the press release on the U.S. Conference of Mayors Web site.

In related news, the American Council for an Energy Efficient Economy (ACEEE) released last week a new report, which finds that the United States could cut peak electricity demand by 5 to 15 percent without reducing comfort or service. Nationwide, the savings could total 60,000 megawatts by 2010, according to the report. To achieve these savings, the report recommends six measures, all relating to either air conditioning or commercial lighting. See the ACEEE press release.

Trash-to-Ethanol Facility in New York State Moves Ahead
Masada OxyNol LLC announced Monday an agreement with Kvaerner Process Services Inc. to provide engineering, procurement, and construction services for a $100 million waste-to-ethanol conversion facility in Middletown, New York. The facility, which has been planned for years, will be a state-of-the-art waste management facility capable of reusing and recycling more than 90 percent of the incoming municipal solid waste and sewage sludge. The waste conversion process will primarily produce ethanol, which will be sold as a fuel additive. Construction of the facility will employ 350 to 800 workers, and the project is expected to contribute an estimated $38 million annually to the local economy. According to Masada OxyNol, the facility will create 200 new permanent jobs for the Orange County region. See the Masada OxyNol press release.

Hybrid Electric Buses Being Added to Denver Open-Air Mall
A fleet of new hybrid electric buses are now providing shuttle service along the 16th Street Mall in Denver, Colorado. Transportation Techniques LLC, or TransTeq, is providing a fleet of 36 hybrid electric buses to Denver's Regional Transportation District (RTD) for use on the open-air mall. The buses use a 70-horsepower engine, fueled with compressed natural gas, to generate electricity to charge a battery pack. The battery pack runs a pair of electric motors that together can produce up to 440 horsepower. According to company president Dale Hill, 15 of the buses have been delivered to RTD, and the remainder will be delivered by September. See the TransTeq press release.

Site News

Canadian Hydropower Association
This trade association is dedicated to representing the interests of the Canadian hydropower industry. The site shares the history of hydropower, explains how hydropower works, and provides recent news about the industry. It also includes several publications on topics such as the environmental impact of hydropower and its future.

For this and other recent additions to the EREN Web site, see http://www.eren.doe.gov/new/whats-new.html.

Energy Facts and Tips

A More Detailed Look at the California Energy Situation
Want to know more about the energy situation in California? One source of information is DOE's Energy Information Administration (EIA), which has a page of statistics on energy use in the state. An interesting fact is that California actually ranks high in the United States in terms of energy efficiency — the average residential user in California uses about 37 percent less electricity each month than the typical U.S. consumer. That has a direct impact on the pocketbook: even though Californians had the third-highest cost of electricity in 1999, their monthly bills were 17 percent below the national average. See the "California Electric Energy Crisis" page on the EIA Web site. ñ

Insurers: Climate Change to Cost $300 Billion Annually
A report by Munich RE, one of the world's largest reinsurance companies, is predicting that the worldwide cost of climate change will reach $300 billion annually by 2050. The report anticipates losses due to more frequent tropical cyclones, loss of land as a result of rising sea levels, and damage to fishing stocks, agriculture, and water supplies. The report was announced on Saturday by the United Nations Environment Programme (UNEP). See the UNEP press release.

Reinsurance, by the way, can be thought of as "insurance for insurance companies," a way for a primary insurer to protect against unforeseen or extraordinary losses. According to the Reinsurance Association of America (RAA), reinsurance plays a critical role in the financial management of natural disaster losses. See the RAA Web site.

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