Accelerating City Wide

TITLE GOES HERE Efficiency Improvement by

shock treatment
TITLE GOESand new Economic Environment
HERE
that self-finance
TITLE GOESthe change.
HERE
TITLE GOES HERE
TITLE GOES HERE
By George Berbari – CEO
DC PRO Engineering
 The USA & the majority of the World has failed to decrease the national
energy consumption - Petroleum

• 36% in Global Petroleum

Consumption between
1980 to 2010 or 23 million
barrel per day (MBPD) of
the 84 MBPD 2010
consumption.
• 16% Increase for USA.
• 146% increase for Asian
Countries or 15 MBPD.
• European demand for
petroleum decreased 5%.
 The USA & the majority of the World has failed to decrease the national
energy consumption - Coal

• 94% in Global Coal

Consumption between
1980 to 2010 or 7.8
million Ton per Year
(Mt/Yr).
• 50% Increase for USA.
• 400% increase for Asian
Countries or 15 MBPD.
• European demand for
Coal decreased 32%.
 The USA & the majority of the World has failed to decrease the national
energy consumption – Natural Gas

World Natural Gas Consumption 1980 - 2010 World 2010 NG Consumption

3
Billion ft per Year Billion ft3

% of the world
1980 2010 % Increase Consumption 3,554
2010
20,466 29,158
USA 19,877 24,088 21.2% 21.3%
13,245
North America 22,559 29,158 29.3% 25.8% 4,854
20,638
Central & South America 1,241 4,854 291.1% 4.3% 21,005
Europe 11,193 20,638 84.4% 18.3%
Euroasia (mainly former
13,328 21,005 57.6% 18.6%
USSR)
Middle East (mainly GCC &
1,331 13,245 895.1% 11.7% North America
Iran) Central & South America

Asia & Oceania 2,577 20,466 694.2% 18.1% Europe

Euroasia (mainly former USSR)
Africa 735 3,554 383.5% 3.1% Middle East (mainly GCC & Iran)
Asia & Oceania
World 52,964 112,920 113.2% 100.0% Africa
 The World Energy Outlook!
Are we going in the right direction?
The World has Great success in Ozone Protection
efforts yet failed to combat Global Warming.

• We managed to find technically and commercially feasible alternative for ozone

depleting refrigerants but none for energy.
• Renewables despite their appeal are Capital intensive and requires high land
usage in particular solar energy.
• Nuclear Energy capital investment, safety concerns, long time to build and
commission.

• People improved quality of life is associated with

higher Energy consumption patterns.
• The complexity of Energy Planning including
Transport & Eclectic Power and the massive cost
of change.
• The American Consumption Monster beaten by
the rising of the Asian Consumption Monster and
the Gulf Countries.
 The US Electric Power Sector last Decade Analysis

United States Electric Power (Thousands of Megawatt hours)

Description 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010
Coal 1,881,087 1,966,265 1,903,956 1,933,130 1,973,737 1,978,301 2,012,873 1,990,511 2,016,456 1,985,801 1,755,904 1,847,290 44.8%
Petroleum 118,061 111,221 124,880 94,567 119,406 121,145 122,225 64,166 65,739 46,243 38,937 37,061 0.9%
Natural Gas 556,396 601,038 639,129 691,006 649,908 710,100 760,960 816,441 896,590 882,981 920,979 987,697 23.9%
Other Gases 14,126 13,955 9,039 11,463 15,600 15,252 13,464 14,177 13,453 11,707 10,632 11,313 0.3%
Nuclear 728,254 753,893 768,826 780,064 763,733 788,528 781,986 787,219 806,425 806,208 798,855 806,968 19.6%
Hydroelectric 319,536 275,573 216,961 264,329 275,806 268,417 270,321 289,246 247,510 254,831 273,445 260,203 6.3%
Conventional
Other
Renewable
79,423 80,906 70,769 79,109 79,487 83,067 87,329 96,525 105,238 126,101[R] 144,279 167,173 4.1%
Wind 4,488 5,593 6,737 10,354 11,187 14,144 17,811 26,589 34,450 55,363 73,886 94,652 2.3%
Solar Thermal
and 495 493 543 555 534 575 550 508 612 864 891 1,212 0.03%
Photovoltaic
Wood and
Wood Derived 37,041 37,595 35,200 38,665 37,529 38,117 38,856 38,762 39,014 37,300 36,050 37,172 0.9%
Fuels
Geothermal 14,827 14,093 13,741 14,491 14,424 14,811 14,692 14,568 14,637 14,840[R] 15,009 15,219 0.4%
Other Biomass 22,572 23,131 14,548 15,044 15,812 15,421 15,420 16,099 16,525 17,734 18,443 18,917 0.5%
Pumped
Storage
-6,097 -5,539 -8,823 -8,743 -8,535 -8,488 -6,558 -6,558 -6,896 -6,288 -4,627 -5,501 -0.1%
Other 4,024 4,794 11,906 13,527 14,045 14,232 12,821 12,974 12,231 11,804[R] 11,928 12,855 0.3%
All Energy 3,694,810 3,802,105 3,736,644 3,858,452 3,883,185 3,970,555 4,055,423 4,064,702 4,156,745 4,119,388 3,950,331 4,125,060 100.0%
Sources
Population 278,543,355 281,421,906 284,300,457 287,179,008 290,057,558 292,936,109 293,295,757 293,655,404 299,398,000 301,621,157 305,183,348 308,745,538  

KWH/Capita 13,265 13,510 13,143 13,436 13,388 13,554 13,827 13,842 13,884 13,657 12,944 13,361  

Renewables Energy in 2010 contributed to 14.4% of total

Energy consumed in the US
 Renewable Energy
The partial hope

Wind and biomass dominate projected increases in U.S. renewable electricity generation
European Renewable Energy
Overview

European Wind energy

 Renewable Energy
The partial hope (Cont’d)
Renewable Energy
Germany (2011)

Installed Capacity Annual Production Annual % of selected Renewable % of Total Energy

Renewable Source Energy produced Produced
  MW GWH FLH    
           

Solar 24,800 19,000 792 22.0% 3.13%

Wind 29,060 48,000 1,652 55.5% 7.8%
Hydro 8,590 19,500 2,270 22.5% 3.2%
           
Total Renewables 62,450 86,500 1,385.1 100.0% 14.13%
% of Total 38.7%        
           
Electricity Production 161,570 606,661 3,755    

Wind Turbines installed Cost around US $1,200 to $1,500 /Kw, produces around 1,650 kwh/year/kw as
compares to $4,000 to $6,000 for PV that produces around 800 kwh/year/kw.
 German Renewable Energy
The pain of subsidies
Germany is one of the world's top photovoltaic (PV) installers, with a solar PV capacity as of
2011 of almost 25 gigawatts (GW). The German solar PV industry installed 7.5 GW in 2011,
and solar PV provided 18 TW·h of electricity in 2011, about 3% of total electricity. Price of PV
systems has decreased more than 50% in 5 years since 2006.
Solar power in Germany has been growing considerably due to the country's feed-in tariffs for
renewable energy which were introduced by the German Renewable Energy Act. As of 2012,
the FiT costs about 14 billion euros (US$18 billion) per year to subsidize new wind and
solar installations. The cost is spread across all rate-payers in a surcharge of 3.6 €ct (4.6 ¢) per
kW·h.
The German government has set a target of 66 GW of installed solar PV capacity by 2030, to
be reached with an annual increase of 2.5–3.5 GW.
As of early 2012 the German government is promising to cut subsidies to this industry earlier
than predicted and it has come under heavy scrutiny due to the cost and inefficiency of the
technology.
 German Renewable Energy
Feed In Tariff Role Model
Current German Feed In Tariff ( €Ct /kwh)
Tailored around each technology

Technology Ct/kWh   Technology Ct/kwh   Technology Ct/kwh

Hydropower (§ 23 EEG)     Biomass (§ 27 EEG)     Offshore wind (§ 31 EEG)  
Up to 500 kW 12.7   Up to 150 kW 14.3   Basic fees  
Initial fee (first 12 years of operation;
Up to 2 MW 8.8   Up to 500 kW 12.3   extension for remote/deep water 15
installations)
Up to 5 MW 6.3   Up to 5 MW 11   Initial tariff in acceleration model 19
Up to 10 MW 5.5   Up to 20 MW 6   Basic tariff 3.5
Up to 20 MW 5.3         Degression %  
Up to 50 MW 4.2   Geothermal (§ 28 EEG)     until 2017/from 2018 0 / 7.0 %
Over 50 MW 3.4   Basic tariff 25      
Increase due to utilization of petro 5 Solari radiation (§§ 32, 33 EEG)
      thermal technology    
Landfill gas, sewage gas and mine For facilities with petro thermal 5   Roof-mounted facilities
gas    
technology  
Landfill gas (§ 24 EEG)           Up to 30 kW 24.43
Up to 500 kW 8.6   Onshore wind (§§ 29, 30 EEG)     Up to 100 kW 23.23
Up to 5 MW 5.89   Basic Fees     Up to 1 MW 21.98
Initial fee (first 5 years from start of 8.93 Over 1 MW 18.33
      operation; plus extension formula time*)  
Sewage gas (§ 25 EEG)     Base fee 4.87  
If generated electricity is consumed within immediate vicinity
Up to 500 kW 6.79   Small-scale up to 50 kW 8.93   of building/facility by operator or third parties for
installations up to 500 kW: Payment of feed-in tariffs for
Up to 5 MW 5.89   Bonuses:    
consumed electricity, but the applicable feed-in tariffs will be
      System service bonus 0.48   reduced by EUR 0.1638 for up to 30 percent of the generated
power and by EUR 0.12 for the remaining power.
Mine gas (§ 26 EEG)     Repowering bonus 0.5  

Up to 1 MW 6.84   Degression rate 0.015   Freestanding facilities  

Up to 5 MW 4.93         Conversion/Sealed Areas 18.76
Other Qualified Areas (additional
Over 5 MW 3.98 *Depending on coverage of reference yield, extension of initial tariff pursuant 17.94
  to Section 29(2) EEG   requirements apply)
 Spain Renewable Energy
The pain of subsidies
Spain is one of the most advanced countries in the development of solar energy, and it is one
of the countries of Europe with more hours of sunshine (1,725 hour/year). The Spanish
government committed to achieving a target of 12 percent of primary energy from renewable
energy by 2010 with an installed solar generating capacity of 3,000 megawatt (MW).

Spain added a record 2.6 GW of solar power in 2008,increasing capacity to 3.5 GW. Total solar
power in Spain was 4 GW by the end of 2010 and solar energy produced 6.9 terawatt-watt
(TW·h), covering 2.7% of the electricity demand in 2010.
In the wake of the 2008 financial crisis, the Spanish government drastically cut its subsidies for
solar power and capped future increases in capacity at 500 MW per year, with effects upon the
industry worldwide.
 The Future of renewable Energy
The human intelligence

Renewable Energy will be driven by the pure fundamentals of Economic where the least capital
intensive technologies will be the most popular attracting the majority of investments.

New technologies such as Hydrogen production from green algae, Nano technologies will be
the prime focus for future Solar technologies.

Wind energy will flourish through larger turbines and lower cost.

Current natural gas infrastructure will be utilized to pump hydrogen.

Biomass and bio fuels will play important role.

Current solar PV and thermal power plants technologies will be subject to economic scrutiny.

Water Desalinations breakthrough such as forward osmosis and

Nano Technologies membrane will resolve future shortages of
Water inmost coastal areas.
 The Coal Dilemma….

• Coal is one of the least expensive and most abundant fuel source in the world US $ 70 /
short Ton or $70/19.8 Million BTU = $ 3.5 / MMBtu compared to $100 / Barrel of oil or
$100/5.8 Million BTU = $17.2 / MMBtu and equivalent to US$ 4.15 /MMBtu for NG
delivered to power plants.
• The United States has more than 1,400 coal-fired electricity generating units in operation
at more than 600 plants across the country and consume about one billion short tons of
coal per year.
However Coal is the heaviest polluter emitting
more CO2 per unit of energy than any other fuel.
 The Prospect of Clean Coal Technology

• The economics of burning coal may change if the U.S. Congress approves
legislation that restricts or otherwise controls carbon dioxide emissions. For
example, a cap-and-trade program to regulate carbon dioxide emissions would likely
increase the cost of burning coal because of its carbon content, and thereby cause
power companies to consider using less carbon-intensive generating technologies such
as Clean Coal, nuclear, renewables, and natural gas.
• Clean Coal Technologies such as Coal gasification and Carbon Capture and Storage
(CCS) are being pursued extensively in the US & the world.
 Gradual Phasing Out of Old, inefficient Coal Power
Plants..

Midwest Generation's Crawford Generating Station, a

coal-fired power plant, is seen Wednesday, Feb. 29,
2012, in Chicago. The city's two coal-fired plants will
shut down early under a deal between the operator,
city officials and environmental groups.

Power Research Institute expects more companies to

close old, inefficient Coal power plants.
 Electric Power & Buildings in the US

Electricity Consumption Totaled Nearly 3,884 Billion Kilowatt-hours (kWh) in 2010

U.S. electricity use in 2010 was more than 13 times greater than electricity use in 1950.

Share of electricity use by major consuming sectors:

• Residential — 39% 74% used in
• Commercial — 35% Buildings
• Industrial — 26%
• Residential Space: 193.5 Billion ft2 (627 ft2/Capita) with Primary
Energy Usage of 113.9 MBTU/ft2/year.
• 82.56 Million Single Family Home, 25.32 million multifamily Home,
6.6 Million Mobile Home or a total of 114.74 Million Home with
average home space of 1,686 ft2 and 2.69 Resident / home.
• Commercial Space: 80.3 Billion ft2 (263 ft2/Capita) with Primary
Energy Usage of 225.2 MBTU/ft2/year.
 2010 Electric Power Price in the US

The overall US average price of Electricity in the US in 2010 was:

• Residential: 8.24 US Cents / Kwh

• Commercial: 7.43 US Cents / Kwh
• Industrial: 4.64 US Cents / Kwh
• Overall 6.81 US Cents / Kwh
• State by State pricing Samples (US Cents / Kwh):
• The most expensive was Hawaii at 25.12, followed by Connecticut at 17.39
and new York City at 16.41.

• The Least expensive state was Wyoming at 6.2 followed by Idaho at 6.54.
• Total sale was US $ 368.1 Billion or around 2.5% of GDP. Residential sales was US
$ 166.78 Billion or US $546.5/capita/ year or a mere US$ 45.5/capita/month or US
$ 1,453 / house /year or US $ 0.86/ft2/year as compared to US $ 1.38/ft2/year
average US Property Tax in 2007.
Electric Power & Buildings in the US
 Can we Reduce our Buildings Energy Usage?
Cost Efficient Passive Houses as European Standard (CEPHUS)
Cost Efficient Passive Houses as European Standard
(CEPHUS)
Cost Efficient Passive Houses as European Standard
(CEPHUS)
Cost Efficient Passive Houses as European Standard
(CEPHUS)
 The Federal Government & Sustainability ….
Too Little Too Late

USGBC in their follow up report on “Better Buildings through executive action” in

2012 cited:
Even as this report acknowledges progress made over the last year, it cautions against
complacency by the Administration and stakeholders going forward. Some of the initiatives
undertaken last year are still in their initial phases, and will only come to fruition after further
administrative steps and active implementation. Moreover, not all federal programs have
seen progress: dozens of promising opportunities identified in the 2010 Report remain to be
implemented.

Key Difficulties facing the US Government sustainability program are:

• The large Capital Cost and large land use of renewable energy.
• The major cost of old inefficient buildings retrofit.
• The necessity of Coal for power production.
• The Large capital cost and safety concerns of Nuclear Energy.
• The limited usage of co-generation, tri-generation and district energy in low
density dominant country.
 The Federal Government & Sustainability ….
Few Key Measures
Feed In Tariff:
• The first form of feed-in tariff was implemented in the US in 1978 under President Jimmy
Carter, who signed the National Energy Act (NEA). This Act included five separate Acts, one
of which was the Public Utility Regulatory Policies Act (PURPA). The purpose of the National
Energy Act was to encourage energy conservation and the development of new energy
resources, including renewables such as wind, solar and geothermal power.
• Within PURPA was a provision that required utilities to purchase electricity generated from
qualifying independent power producers at rates not to exceed their avoided cost.

THE CLEAN ENERGY STANDARD ACT OF 2012

• The CES only applies to utilities that are selling electricity to retail consumers, and exempts
small utilities. In 2015, only 8% of all utilities would need to meet the standard, and in 2025
only 13% of all utilities would need to meet it.
• EIA modeling efforts show that the CES could reduce emissions in the power sector by nearly
20 percent compared to a business-as-usual scenario in 2025 and by 40 percent in 2035.
• A CHP unit may be awarded credits for its generation in a similar manner, and is also awarded
additional partial credits to reflect the efficiency of using the heat from the combined system
instead of installing a separate boiler.
 Key Sustainability Organizations ….
Moderate success
ASHRAE
• ASHRAE was formed as the American Society of Heating, Refrigerating and Air-Conditioning Engineers
by the merger in 1959 of American Society of Heating and Air-Conditioning Engineers (ASHAE) founded
in 1894 and The American Society of Refrigerating Engineers (ASRE) founded in 1904.
• Key codes such as widely adopted standards 90.1 for energy efficiency & 62.1 for fresh Air.

USGBC
• The U.S. Green Building Council (USGBC), co-founded by Mike Italiano, David Gottfried and Rick Fedrizzi
in 1993, is a non-profit trade organization that promotes sustainability.
• Leadership in Energy and Environmental Design (LEED) is widely popular both in the US and in the
world.
• 1.8 Billion ft2 certified commercial space so far in the US & abroad.

IDEA
• International District Energy Association (IDEA) was founded in Toledo, Ohio, July 9, 1909. six attendees
at the 14th annual convention of the Ohio Electric Light Association as the National District Heating
Association (NDHA).
• 0.5 Billion ft2 connected in the US.
 Does Certified Green Buildings Save Energy?
Yes, But…..

• The largest study to date was undertaken by the New Buildings Institute (NBI), under contract
to the USGBC [Turner & Frankel, 2008] and further examination by National Research
Council Canada (NRCC) cited:

• The study reported that the median EUI of the LEED buildings was 32% lower than the
mean EUI in the CBECS database (5000+ buildings in the 2003 Commercial Building
Energy Consumption Survey (CBECS) database of EIA, 2003).

• 28-35% of LEED buildings used more energy per floor area than their individually-
matched CBECS building.

• Further, there was no statistically significant relationship between LEED certification

level and energy use intensity, or % energy saved vs. baseline. In other words, LEED
Silver buildings did not exhibit better energy performance than LEED Certified buildings, and
LEED Gold/Platinum buildings did not exhibit better energy performance than LEED Silver
buildings.
 US & District Energy
837 systems with 400 in Colleges & Universities
 US & District Energy
Capacity and space added
US District Energy Operational Data (2009)
No. of Hot Water Chilled Water
  Installations Steam (lbs./hr.) (MMBtu/hr.) (Tons) Cogen (MWe)
         
TOTAL 627 180,084,608 7,653 3,833,318 9,293
           
 What Can the US learn from international successes
Iceland

Iceland’s various geothermal district and municipal

heating entities provide space heating and hot water to
over 90% of homes and buildings. And, the capital city,
Reykjavik boasts the world’s largest and most
sophisticated geothermal district heating systems in
the world
• There are five geothermal plants in Iceland – producing
26.5% of the country's electricity and 87% of the housing
and building heating needs (2005).
• In Reykjavik 73.4% of energy comes from hydropower, with
0.1% of energy coming from fossil fuels; Consumption of
primary geothermal energy is 53.4% (2004) of the total
national consumption of primary energy;
• Hydropower made up 17.2%, petroleum 26.3%, and coal 3%
of national consumption;
• Almost 29% of primary energy in Iceland is imported a little
over 71% is domestic renewable energy.
 What Can the US learn from international successes
Finland

In Finland, district heating accounts for about 50% of the total heating market, four out of five
of which are being produced from CHPs.
• Over 90% of apartment blocks, more than half of all terraced houses, and the bulk of public
buildings and business premises are connected to a district heating network. Natural gas is
mostly used in areas to the south east of gas pipeline networks.
• Imported coal is used in areas close to ports, and peat is used in northern areas, where it is
a natural resource. However, other renewable resources, such as wood chips and other
paper industry combustible by-products are also used, as is the energy recovered from the
incineration of municipal solid wastes.
• Industrial units, which generate heat as an industrial by-product, sell waste heat to the
networks, rather than releasing it into the environment.
 What Can the US learn from international successes
South Korea

South Korea’s population of 49 million people consists of 14.4 million households, of which 1.87
million households, or 13% of the total population, use district heating. Government plans a
call for another 670,000 households to use district heating by 2013, to meet stricter
environmental targets.
• South Korea targets CHP expansion, thanks to CHP being firmly embedded in the country, mainly
due to its role in the country’s extensive district heating systems. The country is now working on
district cooling technologies, too, and has ambitious plans for the expansion of both
Technologies.
• The South Korean Government’s target will also help boost the use of renewable energy in the
country, as all district heating companies building new CHP units are required to build renewable
energy projects, whether or not they are connected to the district heating projects.
• Government plans a call for another 670,000 households to use district heating by 2013, to meet
stricter environmental targets. Thus, the number of households using district heating will grow by
36%, with almost one in six households expected to use district heating by the end of the current
CHP development phase.
 What Can the US learn from international successes
Dubai, United Arab Emirates
The world highest penetration of District Cooling into the HVAC market
where Dubai has achieved 20% penetration (550,000 Ton) of actual peak
DC capacity out of estimated 2,800,000 Ton of actual estimated capacity
(2/3 of the 2011 peak of 6,200 MW is contributed to HVAC).
• More than six public and private district cooling utilities operate in Dubai.
(Tabreed, Palm Utilities, Empower, EmiCool, Emaar DC, Dubai Festival city, etc.).
• Several new development areas has district cooling as part of initial Planning
such as Jumeirah Palm island, Emaar square, Business Bay, Motor City, Dubai
Investment Park, Health care City, internet & Media city, etc.
 What About Smart grid?
Can It Save Energy?

Report # B122 dated February 2012 from The American Council for an Energy-Efficient Economy (ACEEE).
ACEE is a nonprofit, 501(c)(3) organization that acts as a catalyst to advance energy efficiency policies,
programs, technologies, investments, and behaviors.
 The US, The world & Sustainability
So far, not so good……
• Is what has been achieved so far by the US and the world sufficient?

USGBC 2012 Report “BETTER BUILDINGS THROUGH EXECUTIVE ACTION” cited:

Even as this report acknowledges progress made over the last year, it cautions against
complacency by the Administration and stakeholders going forward. Some of the initiatives
undertaken last year are still in their initial phases, and will only come to fruition after further
administrative steps and active implementation. Moreover, not all federal programs have seen
progress: dozens of promising opportunities identified in the 2010 Report remain to be
implemented.
• Will the US wake up and lead the world efforts in beating Global warming?
• What is the biggest hurdle so far in the US & the world?
• Financing the Change.
• What is the Solution?
• Innovative financing mechanism that have No Cost to the federal government.
• The Solution lies at the federal or Local government Level in partnership with the
utilities
 Voices for the Local Government

Implementing climate adaptation financing

Climate finance has become an intense talking point around the world,
especially in regards to adaptation financing. Cities play a key role. The
World Bank recently estimated that up to 80 percent of the expected US$80-
100 billion per year in climate change adaptation costs are to be borne by
urban areas.
Finance needs are being calculated, governments are making commitments,
and international and financial institutions are positioning themselves and
developing elaborate funding criteria and rules.
At the Resilient Cities 2010 world congress it was felt that a top-down
Mr. Konrad Otto- approach could emerge. But, cities and local governments need to design
Zimmermann infrastructure projects that are optimized according to a set of local criteria
Secretary General and finance institutions need to instead finance what is needed on the
ICLEI – Local ground rather than determine what they think cities might – or should – need.
Governments for
Sustainability

ICLEI - Local Governments for Sustainability is an association of over 1220 local government Members who
are committed to sustainable development. Our Members come from 70 different countries and represent more
than 569,885,000 people. Website : www.iclei.org
 Voices for the Local Government: Mexico City Mayor

Cities taking action

Cities and local communities are at the front line of the battle against
climate change and already suffer from increasing stresses it causes.
At the same time cities and urban areas need to continue to develop, plan
for and reduce risks from other sources. They need to be able to mobilize
resources to respond to these challenges and become more resilient.

The Pact was an outcome of the World Mayors Summit on Climate in Mexico
City on 21 November 2010, which was convened under my leadership in my
capacity as the Chair of the World Mayors Council on Climate Change.
Marcelo Ebrard
Mayor of Mexico City The Mexico City Pact establishes a set of voluntary commitments to promote
Chair of the World strategies and actions aimed at mitigating greenhouse gas emissions and
Mayors Council on
adapting cities to the impacts of climate change.
Climate Change

The City Mayors Foundation awards The World Mayor Prize every two years to a mayor who has made
outstanding contributions to his or her community. Website : www.worldmayor.com
 The Local Government: Basel Mayor

Monday

Jan30,2012

Mayors’ Voices: Basel Mayor Dr. Guy Morin

Monday, January 30, 2012 at 09:30AM

While national governments fail to come to an agreement on how to stop global

warming, cities of all hemispheres are already acting. They would do even better if

adequate financial resources were available. The C40 affiliate City of Basel,

Switzerland, a centre for cleantech and finance, has initiated the platform “Global

Energy Basel (GEB) – The Sustainable Infrastructure Financing Summit.” Today, I am

happy and proud to invite all fellow Mayors and Senior City Officials from Environmental
and Finance Departments of cities to the 2 nd GEB Summit.

C40 Cities Climate Leadership Group (C40) is President Clinton Climate Initiative currently
chaired by NY Mayor Bloomberg. Website : http://live.c40cities.org/
 The Local Government: Sydney Mayor

2nd April 2012

Lord Mayor Clover Moore

Announces first City Wide Low Carbon network

of Tri-Generation Plant of 360 MW to be build
by year 2030.

Sydney sign a $440 million deal with Origin Energy to set up what it says will be the
first low carbon energy network in an Australian city.

The technology involves using special power generators called tri-generation plants in
city buildings that convert natural gas or renewable energy into electricity, and which
provide heating as well as cooling.

It's hoped they'll provide 70 per cent of the city's electricity by 2030 and achieve the
twin goals of cutting emissions in half and reducing power bills.
Accumulated Knowledge, skills & experience leads to
my words, my vision….

The basic truth is accurately measured and reported

energy data is more valid than any modeling or prediction
and our future energy policies including pricing should
revolve around that.

Voluntary programs have limited penetration and limited

impact on the future conservation policies.

Renewables should be generated away from cities and fed into the city through
the electric grid. Economic fundamentals will determine the spread of each
application and the % of our total energy that we can and plan to afford.

Cities will consume 70% of our electric powers in the near future and it is the
prime responsibility of every city to be in charge for its energy management
through master planning and active role with utilities.
 What Cities should Do
my words, my vision….

• Work with electric Utility at a common base rate for electric power segmented
into residential, commercial and industrial. back to the basics

• The utility will take that average flat rate per sector to cover their operating cost,
for example 8.24 Cent/kwh for residential sector.

• The City will set an efficiency slab rate where the nation average consumption
was 7.5 Kwh/ft2/year for 2010 residential sector.
Reduction or Increase of Energy usage Rate cent/kwh
• Reduction of 40% or more (< 4.5 Kwh/ft2/year) 8.24
• Reduction of 30% to 40% (< 5.25 Kwh/ft2/year) =1.1x8.24= 9.06
• Reduction of 20% to 30% (< 6.0 Kwh/ft2/year) =1.2x8.24= 9.89
• Reduction of 10% to 20% (< 6.75 Kwh/ft2/year) =1.3x8.24=10.71
• Reduction of 0% to 10% (< 7.5 Kwh/ft /year)
2
=1.4x8.24=11.54
• Increase of 0% to 10% (< 8.25 Kwh/ft /year)
2
=1.5x8.24=12.36
• Increase of 10% to 20% (< 9.0 Kwh/ft2/year) =1.6x8.24=13.18
• Increase of more than 20% (> 9.0 Kwh/ft2/year) =1.7x8.24=14.0
 What Cities should Do
my words, my vision….

• Cities & Town across the united state are expected to generate utilities income
of US $105.82 Billion per year or 35% of the US $ 302.34 of the 2010 utilities
revenue from commercial and residential sectors ($ 28.89/person/month for res.
+ com. & $15.9 / person/month for residential sector only)
• The bench mark for energy will be revised and continuously reduced every
three years period to keep the momentum for nation wide conservation.

• The additional Revenues will be retained by the local governments of various

cities and counties and will be used to fund:
• Rebates for energy efficient capital investment improvement such as better
insulation, Glazing, heat recovery, controls etc.
• City Wide District Energy Piping Networks for chilled and hot water to be
owned by local government.
• Renewable energy.
• Energy related research.
 What Cities should Do
my words, my vision….

• A Similar scheme will apply to diesel oil or natural gas supplied for housing generating
further revenues estimated at US $ 40 Billion per year.
• The existing non efficient building will be expensive to live in and will create interest to
refurbish these buildings or move to new efficient houses and hence revitalize the real
estate sector and create more construction related jobs.
• The customers will be encouraged to connect to district energy as these will lower their
slab utility rate, natural gas or diesel slab rate.
• District Energy, CHP and Tri-Generation biggest hurdle is the piping network that has
serious financing and legislation issues. This will be resolved by local government taking
charge of the network which its non existence has chocked the sector to less than 1%
penetration rate. The required investment in the DE networks is estimated to be less
than US $200 billion required over the next 25 years or US $8 billion per year.
 What Cities should Do
my words, my vision….
• There is no better energy storage tool or demand management tool than thermal storage
(Cold and Hot). The best news of Thermal Storage that it reduce the total capital
investment of CHP by more than 15% through reducing the equipment (Generators,
Chillers, Boilers) capacity by 20%. It is optimum performance is in peak shaving or load
leveling as they can shave 20% of peak demand. Partial load shifting in response to real
peak demand values offers great economic benefits and a smarter grid as well.

• District Energy and CHP will be then given to private, public or PPP utilities that will
develop similar efficiency slab rates that will generate dual revenues for local government
i.e. a portion to cover for the cost of network (Over ten years period) and non-efficiency
penalties that will further increase the investment in sustainability and continuously
reducing energy demand.

• District Energy will operate in light regulation frame work that will safeguard their interest,
the end user as well as the local government.
 What Cities should Do
my final words.….
• United State that invented the A/C and had IDEA for 113 years actively
promoting District Energy & CHP. Where is District Energy & CHP in America !!
US can easily achieve 50% Penetration Rate of District Energy by 2040
compared to 0.183% currently.

• United States that lead the world technologically, financially and Militarily should
wake up and lead the world environmental efforts.
• If we follow the current sustainability track, we are bound to face the same bulk
failures and partial success. My Ideas are just one new way to think differently
and tackle the global warming in an economically sustainable plan that creates
jobs and revitalize the ailing real estate sector.