Section 1.

2
Trends, Policies and Why Energy
Management is Important

Learning Objectives & Contents

Awareness of:
• Global Trends on Energy, Economy and Sustainability
• Non-Technical ”Drivers” that create the need for energy projects

• Basic Energy to Emissions Conversions

• Selling Points for Energy Projects

• Energy Projects only save $$ when they are approved and implemented
• Additional Selling Points…(pursue after your CEM exam)

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 Science & Sustainability
Correlated: Temperature and CO2

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Summer Temperatures Have Shifted

0.5
Cooler than average Baseline (1951 - 1980) mean
Average
0.4
Warmer than average The “extreme”
Frequency of Occurrence

Extremely hot temperature events used

0.3 to cover 0.1% of the Earth.
2020: covered 22.1%.

0.2

0.1

0
-5 -4 -3 -2 -1 0 1 2 3 4 5 6
Deviation from Mean

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 Melting Ice:

Implications:
• Sea level rise
• Less reflectivity (more solar
energy is absorbed)

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Big Picture: Energy, Environment & Economy

We are all linked together on a planet with limited resources
Energy access & affluence is growing!

Thus reducing energy waste:

• Preserves resources and our environment
• Helps cost-competitiveness and our economy

Generally- the more energy management & conservation… the better.

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 * 1 Quad = 293 TWh
100 Quads = 29 366 TWh

USManagement
Trends, Policies and Why Energy Energy Flow in 2019
(Pre-Pandemic ~10077 Quads)
is Important
2020 during Pandemic: was about 90 Quads

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What is “Energy Management”

Energy Management: includes planning and operation of energy-related
assets to increase efficiency/effectiveness, maintain reliability while
reducing costs and environmental impact.

Generates energy savings via:

• Conservation and/or behavior change
• Improvements in energy efficiency
• Changing patterns of energy use
• Shifting to other sources of energy
• Waste minimization

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 Interface Areas with Energy Management
• Productivity Improvement
• Lean Manufacturing, Total Quality Management, Six Sigma, “Treasure Hunts”
• Health & Safety… Especially post-COVID
• Water Conservation
• De-Carbonization and Electrification Initiatives
• Renewable Energy
• Sustainability / GHG Management / Green Buildings / Net Zero
• Energy Savings projects help reduce the amount of carbon offsets needing to be
purchased as well as other “benefits” to a sustainability mission.

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“Drivers” that Create Demand for Energy Projects

• Cost-Competitiveness
• Special Tax Benefits or Utility Rebates (that do expire… creating a compelling event)
• Regulations and/or Requirements
• Government (national or local ordinances), SEC Filings, ESGs, etc.
• Industry-Related
• Sustainability Marketing and Image
• Occupant Comfort, Morale, Attraction and Retention
• Energy Independence, Self-Reliance or Resiliency
• Improved Product Sales or Image

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 Countries with RE & Carbon Policies by Sector

World Bank, State and Trends of Carbon Pricing 2018

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Renewable Portfolio Standards by State

% of Renewable Energy Required per State… due by Year X

Renewable & Clean Energy Standards

www.dsireusa.org / November 2022
ME: 100% x 2050
WA: 15% x 2020*
NH: 25.2% x 2025
(100% x 2045)
ND: 10% x 2015 MN: 26.5% VT: 75% x 2032
OR: 50%x 2040* x 2025 (IOUs) MA: 40% x 2030 + 1% each
(large utilities) 31.5% x 2020 year thereafter (new resources)
(100% x 2040) (Xcel) WI:
10% 2015 NY:70% x 2030 3.56% x 2021 (existing resources)
SD: 10% x 2015 (100% x (100% x 2040) (80% x 2050)
MI: 15% x
2050) RI: 100% x 2033
2021*†
NV: 50% x
IA: 105 MW IN: OH: 8.5%
2030 CT: 40% x 2030; (100% x
(100% x 2050) IL: 50% 10% x x 2026
UT: 20% x 2040)
CO: 30% by 2020 x 2040 2025†
2025*† (IOUs) *†
VA: 100% x NJ: 50% x 2030; (100% x
CA: 60% KS: 20% x 2020 MO:15% x 2045/2050
(100% x 2050) DC 2050)
x 2030 2021 PA: 18% x 2021†
(100% x 2045) NC: 12.5% x 2021 (IOUs)
DE: 25% x 2026*
NM: 80%x 2040 OK: 15% x
AZ: 15% x MD: 50% x 2030
(IOUs) 2015 SC: 2% 2021
2025*
(100% by 2045 DC: 100% x 2032
(IOUs))

TX: 5,880 MW x 2015*

29 States + DC have a
Renewable Portfolio
Standard, 6 states have a
U.S. Territories Clean Energy Standard
HI: 100% x 2045
NMI: 20% x 2016 Guam: 25% x 2035 (7 states have renewable
PR: 100% x 2050 USVI: 30% x 2025 portfolio goals, 6 states have
clean energy goals)
Renewable portfolio standard
Renewable portfolio goal
Clean energy standard
Clean energy goal *† Extra credit for solar or customer-sited renewables
Includes non-renewable alternative resources

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 Companies are taking action too…

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“Energy Efficiency/Management” is a major part of:

• Popular Sustainability Initiatives:
• DeCarbonization • Net-Zero • ESGs
• Electrification • Smart Cities • CSRs
• Clean Energy • Resiliency/Energy Security

(After your Exam)…CEMs should use the following slides to:

1. Get credit for what you do (energy management affects the popular topics),
2. Present/Sell your projects (get more projects approved).

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 Connected: Energy and CO2e Emissions
For fossil-fueled energy sources: when you use energy, you cause emissions.

Example: On average, 1 GWh used in the USA causes the following:

• 884 metric tones of CO2 equivalent emissions
• ~ 355,658 kg of coal being burned

When you reduce energy consumption, you usually reduce emissions.

EPA

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Basic Emissions Accounting/Reporting

Best Practice: When you save energy, report your emissions savings too!

• Know how to convert kWh and fuel consumption to C02e

• Greenhouse gas calculators make it easy:

Equivalencies can help your audience EPA.gov

understand/relate… and approve your project!
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 Emissions
Definitions:

EPA.gov

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For Additional Training on GHG Accounting:

CAP Certification has been offered since 2008… and is recognized on several continents.

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 Selling Points for Energy Management
• A typical low-risk, energy management project has a long lifetime and
yields a 25% to 50% return on investment, which is better than:
• Many other potential investments
• Compared to Energy Savings (a profit)…What would you have to do (how many widgets
would you have to sell) to keep an equivalent profit?
• Many renewable energy projects
• Also- if you reduce the energy consumed, you don’t need to buy as many renewable
products (# solar panels, size of a bio-reactor, etc.).

• But you must “position” the project such that it meets the customer
requirements, and so that the buyer sees it is a “better deal” for them

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Additional Selling Points for Energy Management

Additional Reading (after your CEM Exam)

“Energy Management Projects Out-Performed

the Dow Jones Index in 8 out of 10 years!”

Source: E. Woodroof (2018) ”Energy Efficiency BEATs Wall Street Returns”, Buildings.com

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 Additional Selling Points for Energy Management
Additional Reading (after your CEM Exam)

Non-Utility Benefits:
• Maintenance, Material & Labor Savings
• Better Cost-Competitiveness
• Often, the Project ROI > Company’s Profit Margin
• Often, the Project ROI > Cost of Finance
• Improved “Green”, “Sustainable” Image
• Boost Sales and/or Employee Recruitment
• Ability to Meet Supplier/Govt. Requirements
• Reduced Need to Purchase “Offsets”
• Improved Real Estate Value

Source: E. Woodroof, W. Turner, W. Heffington and B. Capehart (2012) ”Energy Conservation also Yields:
Capital Operations, Recognition and Environmental Benefits”, Energy Engineering Vol. 109 (5).

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Additional Selling Points for Energy Management

Additional Reading (after your CEM Exam)

Non-Utility Benefits:
• Improved Building Value
• Tangible benefit to building owner

• Other external societal benefits

Free webinars: search “Selling Energy Projects” playlist on AEE YouTube Channel
Sources: E. Woodroof (2017) ”Increase Your Building’s Value with an Energy Project”, Buildings.com
International Energy Agency (2014) ”Capturing the Multiple Benefits of Energy Efficiency”

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 Review
Awareness of:
• Global Trends on Energy, Economy and Sustainability
• Non-Technical ”Drivers” that create the need for energy projects

• Basic Energy to Emissions Conversions

• Selling Points for Energy Projects

• Energy Projects only save $$ when they are approved and implemented
• Additional Selling Points…(pursue after your CEM exam)

Certified Energy Manager® Trends,

Trends,Policies
Policiesand
andWhy
WhyEnergy
EnergyManagement
Managementis isImportant
Important 25

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