Overcoming challenges to building green power markets

1
Overcoming challenges to building green power
markets
2
Climate change is one of the key challenges of
the 21st century
Source Climate Change State of Knowledge
Report, Office of Science and Technology Policy,
Executive Office of the President, 1997
3
Burning fossil fuels is the largest source of US
man-made greenhouse gas emissions...
US GHG emissions by source (2002) Percent, 100
6,934 Tg CO2e
Fuel processing other
Industrial processes manufacturing
7
4
Agriculture
7
82
Energy generation from fossil fuels
Tg CO2e Teragrams of carbon dioxide
equivalents
Source US EPA, Inventory of U.S. Greenhouse Gas
Emissions and Sinks 1990-2002 (2004), Table
ES-3. Does not include sinks.
4
...and the largest source of corporate GHG
emissions in the US
US industrial sector GHG emissions (2002)
Percent, 100 1,987.2 Tg CO2e
Industrial processes manufacturing
16
On-site energy generation
48
36
Purchased electricity
Tg CO2e Teragrams of carbon dioxide
equivalents
Source US EPA, Inventory of U.S. Greenhouse Gas
Emissions and Sinks 1990-2002 (2004), Table
ES-6. Does not include sinks.
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Switching to green power is a strategy for
reducing corporate GHG emissions
Energy efficiency
Green power
Process improvements
Carbon sequestration
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In 2000, WRI convened the Green Power Market
Development Group
Alcoa Inc.

• Developing corporate markets for 1,000 MW of new,
  cost-competitive green power by 2010

Cargill Dow LLC
Delphi Corporation
The Dow Chemical Company
DuPont
General Motors
IBM
Interface
Johnson Johnson
Kinkos
Pitney Bowes
Staples
7
The Group is pursuing several forms of green power

• Wind
• Solar
• Biomass
• Landfill gas
• Geothermal
• Low-impact hydro
• Clean technologies (e.g., fuel cells)

8
The Group has completed 112 MW of green power
projects and purchases
Total 112 megawatts (MW)
As of December 2003
Other renewable power
Landfill gas
6
16
Renewable energy certificates
36 MW
19
Wind power
35
Hydrogen fuel cells
9
US green power markets are growing
MW installed capacity
Wind
Solar
Source U.S. Department of Energy (Wind Energy
Program) AWEA (2004). Available at
www.awea.org/faq/instcap.html IEA Photovoltaic
Power Systems Programme (2003). Available at
http//www.oja-services.nl/iea-pvps/isr/22.htm
Solarbuzz Annual World Solar Photovoltaic Market
2003 Report (2004). Available at
http//www.solarbuzz.com/Marketbuzz2004-intro.htm
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However, green power markets for corporate energy
users face several challenges

• Large up-front capital expenditures for on-site
  systems
• High cost per kilowatt-hour
• Lack of availability in some regions

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Todays speakers will share new business models
products that address these challenges

• Claire Broido
• Vince Van Son
• Mark Buckley