Book Review: Power of the People: America's New Electricity Choices by Carol Sue Tombari

Imported oil, dirty coal, energy inefficiencies and waste, and truncated investment in alternative energy development have landed us in a quandary. Where do we turn for the power we need to run our wired and wireless economy and our increasingly mobile culture?

Carol Sue Tombari, former director of the State of Texas's energy efficiency and renewable energy programs and currently on staff at the US Department of Energy's National Renewable Energy Laboratory, describes some answers in her new book, Power of the People: America's New Electricity Choices.

Tombari provides a concise and cogent overview of how we got in this mess and a primer for how we can get out of it. Essentially, Tombari argues that we need a combination of vigorous policy agendas and massive investments in what we've called on this blog "The New Green Economy."

We are "sleepwalking toward disaster," argues the author, but she tempers her cynicism with equal doses of optimism and faith -- faith that we have the know-how and ingenuity to get us out of this mess.

If only we would wake up and change where we're going and what we're doing.

"I'm not talking about an overnight energy revolution, Tombari concludes. "Really, it's more like an evolution, incorporating both twentieth- and twenty-first-century technologies as we transition to the completely different, carbon-constrained reality in the coming years."

For anyone who wants a quick study of the path we've been on, as well as the good, the bad, and the balance of those choices, and the potential for alternatives, Power of the People is required reading.

"Renewable energy and energy efficiency can be expected to develop a larger presence in the marketplace," writes Tombari, "especially as the cost of twentieth-century fuels continues to go up and the capital costs of renewables continue to go down."

But our energy "needs remain humongous and continue to grow," Tombari argues. "Energy efficiency in particular will gain significantly greater market share because of its no-regrets nature and the fact that it doesn't require the investment of materials needed by utility-scale technologies."

While "we will continue to rely heavily on central station power plants, especially in the near- and mid-term," according to Tombari, "we as individuals, as neighbors, as citizens of our towns and states, can lead our government...Our roots as a nation are in the grass. We know how to do this."

Her optimism is infectious. Power of the People is a must-read for anyone concerned about the future of our nation and our planet.

Global Climate Change: India GHG Inventory to Help Industries Reduce Emissions

US companies and State governments are not the only ones trying to get ahead of the curve on greenhouse gas emissions (GHG). Industries in developing countries like Brazil and India are also getting in the game.

WRI announced today that it is launching a new program in India to help companies from a range of industries, including cement, pharmaceuticals, and engineering, address greenhouse gas emissions.

"The India Greenhouse Gas Inventory Program will allow our companies to consistently and credibly monitor their emissions," said Mr. K P Nyati, Principal Advisor, Confederation of Indian Industry (CII), in a press release today.

The India GHG Inventory Program will be implemented by the Sohrabji Godrej Green Business Center (GBC) of CII.

"This new program will help India establish a national model of emissions accounting," said Manish Bapna, executive vice president of the World Resources Institute (WRI). "You can't manage what you don't measure."

WRI partnered with CII-GBC and the U.S. Environmental Protection Agency (EPA) to establish the program, which is modeled after EPA's Climate Leaders.

"By adopting greenhouse gas management strategies that make business sense, India's industry leaders are demonstrating that a healthy environment and a healthy economy can, in fact, go hand-in-hand," Jim Sullivan, director of the EPA's Climate Leaders program, said in a press release issued by WRI.

India ranks seventh in the world in terms of annual GHG emissions and is responsible for nearly 3.6 percent of world emissions. That doesn't sound like a heck of alot, but it is growing with the country's economic expansion.

"A GHG inventory will improve the company's understanding of its GHG emissions profile and thereby its potential GHG liability or exposure in a carbon constrained economy," noted Mr. A. K. Kaul, Ex-Chairperson, CII Delhi State Council.

Mind you, as a developing country, India has no GHG reduction obligation under the Kyoto Protocol. Corporate GHG reporting is also voluntary, but is becoming almost de rigeur as industry tries to grapple with the potential impacts of climate change on their businesses.

Smart companies are choosing to inventory their emissions and areas of possible efficiencies, which may also improve their bottom line.

India's program is similar to one recently launched in Brazil and is based on the standardized framework of the GHG Protocol.

The GHG Protocol was created by WRI and the World Business Council for Sustainable Development (WBCSD) and is considered the global standard for accounting of GHG emissions by governments, businesses, and other organizations.

WRI reports on a new study by the Corporate Register, which found that sixty-three percent of Fortune 500 companies use the GHG protocol to disclose their emissions.

The roster of member companies of the India GHG Inventory Program sports some big names in Indian businessn including Ashok Leyland, Bosch Ltd, Capricon Food Products, Century Rayon, Control Techniques India, Godrej Industries, HIRCO, Infosys Technologies, NICCO Corporation, Tata Power, Tata Iron & Steel, and Wipro.

Funding for the program is provided by the Asia Pacific Partnership on Clean Development and Climate and the U.S. EPA, according to WRI.

A move like this from India, which recognizes that growth doesn't have to come at the cost of the environment, sends a strong message to the rest of the world. India wants to lead.


(Blogging via BlackBerry; links to come.)

Global Climate Change: Tea for the Tillerson, Exxon Shareholders Try to Force Hand

More on the Rockefeller-led shareholder uprising at Exxon in today's New York Times:

The Rockefeller family built one of the great American fortunes by supplying the nation with oil. Now history has come full circle: some family members say it is time to start moving beyond the oil age.

The family members have thrown their support behind a shareholder rebellion that is ruffling feathers at Exxon Mobil, the giant oil company descended from John D. Rockefeller’s Standard Oil Trust.

Three of the resolutions, to be voted on at the company’s shareholder meeting on Wednesday, are considered unlikely to pass, even with Rockefeller family support.

The resolutions ask Exxon to take the threat of global warming more seriously and look for alternatives to spewing greenhouse gases into the air.

One resolution would urge the company to study the impact of global warming on poor countries, another would encourage Exxon to reduce its emissions and a third would encourage it to do more research on renewable energy sources like solar panels and wind turbines.

A fourth resolution, which the Rockefellers are most united in supporting, is considered more likely to pass. It would strip Rex W. Tillerson of his position as chairman of Exxon’s board, forcing the company to separate that job from the chief executive’s job.

A shareholder vote in favor of that idea would be a rebuke of Mr. Tillerson, who is widely perceived as more resistant than other oil chieftains to investing in alternative energy.

The Rockefellers say they are not trying to embarrass Mr. Tillerson, also Exxon’s chief executive, but think it is time for the company to spend more of its funds helping the nation chart a new energy future.

Read the article in full (requires log-in): Rockefellers

Clean Tech: Alternative Energy Execs Dream Of Oil Crunch (Reuters)

Gerard Wynn of REUTERS NEWS SERVICE writes from London that "while most companies are watching soaring oil prices with an eye on rising costs some renewable energy executives are licking their lips at the prospect of 'spectacular' growth."

Here's the article:

"Oil sped above $135 to a new record for a third straight day on Thursday. That and new forecasts of a higher floor price has some alternative energy suppliers dreaming of an era of peak oil when global crude output starts to fall.

"'Our time is very definitely coming,' said Jeremy Leggett, chairman of British solar power company Solar Century and former environmental campaigner. 'The world is going to be beating a path to our doors ... The oil crunch is coming soon. The drivers are going to be spectacular.'

"Thursday's record oil price knocked world stocks to a one-month low as concerns grew that rising raw material costs would hit companies and consumers in an economic slowdown.

"In their latest rally since May 1 oil prices have risen 20 percent. In that time the MSCI index of the world's biggest stocks is up 1.5 percent, while a ABN AMRO index of renewable energy stocks has climbed 9.5 percent.

"But support for renewables has been jittery after months of hype helped fuel valuations at a time of tight credit.

"In particular, solar power stocks dived as much as 50 percent in January as investors feared that a credit crunch would make 'big ticket' solar panels unaffordable and that over-capacity in the sector could swamp demand.

"'There's obviously been underlying concern in the renewable energy markets that valuations are inflated, (asking) are we in the middle of a green technology bubble,' said Merrill's head of carbon emissions trading Abyd Karmali.

"'Drivers in the oil market leading to higher oil prices, as well as expected more sustained carbon pricing... lead us to suggest that actually alternative energy is going to be commercially viable sooner than people anticipated.'

WIND GOOD, SOLAR BAD

"But even $135 oil is not enough to make all alternatives competitive, said the Chief Economist to the International Energy Agency, Fatih Birol, on Thursday -- using the example of electricity production from the sun called solar PV.

"'We need to see a lot of reduction in the cost of PV.'

"Solar power executives said at a conference hosted by Greenpower on Wednesday that an expected glut in capacity -- to 29 gigawatts of solar module production in 2012 from 3 GW in 2007 according to consultants McKinsey -- would slash prices.

"The solar power industry uses expected year on year increases in power prices -- as a result of soaring oil and gas prices -- to try and plot when solar power without subsidies will be the same price as conventional electricity.

"McKinsey's Christer Tryggestad said such grid parity may be reached as early as 2010 or 2011 in Italy and California.

"But at current oil prices wind has already reached that point, said the IEA's Birol.

"'Many many projects which are on good sites become profitable versus gas,' he said.

"Ad van Wijk, chief executive of Netherlands-based renewable energy project developer Econcern, said wholesale power prices had trebled in the past two years -- as a result of soaring oil prices -- making his on-shore wind projects competitive with natural gas on windy sites, without subsidies.

"'It's the high oil price and especially the outlook that they will not go down,' which means he can get high wholesale prices now, said van Wijk.

"Analysts and industry officials have predicted for decades that the world's oil output may soon plateau but oil companies have downplayed the 'peak oil' theory. BP data suggest the world has proven oil reserves of 1.2 trillion barrels, enough to sustain current output for 40 years.

"Nevertheless, oil firms are using higher price assumptions to plan their businesses, in a sign the forecast floor price is moving up, oil analysts say. BP is using $60 a barrel, for example, while just a few years ago companies assumed long-run prices of $25."

Clean Tech: Water, Water Everywhere; Time to Wade In?

Smarter minds than mine have been wading into water this week.

It's a part of the clean tech space that I've neglected thus far. Time to get a toe in the water and test it out.

Looking into TTEK, AMN, and CCC, thanks to @jmclarty.

Also taking a look at SWWC, AWK, and WTR.

I'm hoping the water is warm...

Wondering what ever happened to eMembrane, which had an interesting nanotech filtering technology.

And curious what's happening with Water Health International.

For another take on water and sanitation, check out Ashoka's Changemakers and Global Water Challenge competition, which just announced its winners: Tapping Local Innovation, the most innovative approaches to providing access to safe drinking water and sanitation.

(And you must check out India's Oscar-wiining director Shekhar Kapur, ("Elizabeth" and "Elizabeth: The Golden Age," who blogged on "Paani" (Water), his new film about the daily struggle for drinking water in the slums of Mumbai.)

(Disclosure: The author is an employee of Ashoka, but does not work directly for its Changemakers initiative. This post is for informational purposes only and is neither intended to be investment advice nor an offer, or the solicitation of any offer, to buy or sell any securities.)

Earth: The Sequel by Fred Krup and Miriam Horn: A Review

Entrepreneurs can save the planet, but they need a cap-and-trade system to do it.

That's the premise of Earth: The Sequel, by Fred Krup and Miriam Horn, and published in March by W.W. Norton.

The authors, the head of Environmental Defense and a journalist now working for the same, respectively, argue passionately on behalf of emissions cap-and-trade as the solution to unleashing the entrepreneurial spirit of Americans (and others) to solve the climate crisis.

They also tell the story of some of "cutting-edge" innovators in the clean energy space, people like Conrad Burke of Innovalight, the solar nanotechnology company, Isaac Berzin, the chemical engineer who co-founded algae-farm biofuel developer GreenFuel Technologies, and the colorful Bernie Karl of Chena Hot Springs, who is trying to capitalize on geothermal energy found below the Alaska bush with the help of Fortune 500 company United Technologies Corporation.

The stories are simply told, some of them compelling, some bordering on boosterism, but the focus on entrepreneurs is welcome. There's nary a whiff of skepticism in these pages, however, which read like a virtual catalog of potential clean tech investments.

I realize the authors don't want to back one technology solution over another -- and the new green economy requires not just one silver bullet but a full chamber -- but a little more critical analysis of the full panoply would have been nice (see Pernick and Wilder's The Clean Revolution for more in-depth analysis of the sector).

Private investment is fine, the authors reason, whether entreprenuer or venture capitalist; however, it can't scale without a cap on carbon emissions. In their view, a cap is the only thing that will make alternative energy more affordable to generate. Without it, we will neither reduce emissions enough nor grow the burgeoning clean tech industry.

"To save the planet from calamity," write Krup and Horn, "innovation and deployment of known technologies must occur now at a pace as intense and a scope as vast as the settlement of the western frontier."

Scientists have determined we need to reduce CO2 emissions by 80 percent by midcentury to "stabilize the global climate." According to the authors, "we must produce at least 14 trillion watts of carbon-free energy by 2050 -- about as much power as we now get from the entire fossil energy business" to reach that goal.

The advantage of a cap is that it puts a true limit on total emissions; the problem is it can lead to higher prices for consumers and windfalls for certain companies.

Companies need the stability and predictability of a cap. As Dupont CEO Chad Holliday, whose company is part of a coalition calling for a national cap, says in a quote from the book, "You need some certainty on the incentives side and on the market side, because we are talking about multiyear investments, billions of dollars that will take a long time to pay off."

A national cap would provide that certainty. We just need to make sure it covers all the carbon economy and that the permits are sold not given away free, as in the current European Union scheme. There is even talk of a cap-and-dividend style program that would make equal payments to all Americans (along the lines of the Alaska Permanent Fund Dividend).

"We have before us an extraordinary opportunity," Krup and Horn conclude. "to harness the power of the United States of America's huge and dynamic markets to ensure a safe future...Enacting a cap on carbon will gather U.S. ingenuity and resourcefulness to serve a higher purpose: protecting this planet for generations to come. We have the talent and a brief window of time to create the world of possibilities. All we need is the resolve."

Higher purpose or base greed, I don't care; let's just get moving on the new green economy.

In the end, as NYC Mayor Michael Bloomberg offers in his advance praise blurb, "Earth: The Sequel makes it crystal clear that we can build a low-carbon economy while unleashing American entrepreneurs to save the planet, putting optimism back into the environmental story."