Utilities worry about a lot of things, such as keeping the lights on, earning a return for investors, and making regulators and customers happy with their service.

Now there is a new worry: How can they protect customers from what one utility refers to as “mental fatigue?”

In this particular case, the utility raises the issue as it prepares to invite homeowners and small businesses to select from among new and possibly complicated rate options made available because of smart meters. The new rates should lead to greater energy efficiency. But that won’t happen if customers become overwhelmed by their complexity, throw the bill insert into the trash, and turn to the next thing demanding their attention.

Mental fatigue is a big problem not only when it comes to homeowners, but also businesses and organizations faced with technical decisions required to green their facilities. Start with the basics. Do you pursue energy efficiency or renewable energy or both? And then, do you choose to make actual physical changes, such as installing combined heat and power systems or solar panels, or do you buy from among the more virtual products such as energy efficiency certificates or renewable energy credits (RECs). And to make it even more difficult there are now a growing number of RECs to choose from: solar RECs, zero emissions RECs, low emissions RECs and more. (See my article on US RECs in the December issue of Platts Energy Economist.)

Analysts Patrick Costello and Roshni Rathi recently prepared a report for RealEnergyWriters.com that sorts through the many options presented to companies trying to go green. The detailed analysis attempts to give direction to organizations by using examples drawn, interestingly, from information technology and telecommunication companies. These industries are known for their progressive, game-changing strategies and many have led the way in reducing energy usage and emissions in their data centers, according to Costello.

The report, “Data Center Energy Efficiency, Renewable Energy, and Carbon Offset Investment Best Practices,” points out that seven of the top ten organizations in Newsweek’s Green Rankings were IT or telecom companies with IBM, HP and Sprint Nextel in the lead. IBM won further kudos this week from the European Union, which bestowed its code of conduct recognition on 27 IBM data centers for their energy efficiency. IBM met a 2007 goal to double the IT capacity of its data centers within three years without increasing its electricity usage.

But not all data centers are run by firms the size of IBM. Many are small and don’t have the kind of resources of a large IT firm, so don’t even know where to begin when installing or purchasing energy efficiency or renewable energy. REC purchases, in particular, can confound the uninitiated. Two markets exist for RECs, one voluntary and the other regulated by states, and each state has its own way of defining what constitutes a legitimate REC. “It is really important to be careful about what you purchase and where you purchase it. People often don’t have an understanding of what they are buying,” Costello said.

They don’t understand and sometimes they wish they didn’t have to. Mental fatigue may be a new occupational hazard for the energy-consuming public.

Written by Elisa Wood; who is a long-time energy business writer. To read more of her articles on energy visit www.RealEnergyWriters.com. 

In Carrollton, Ohio natural-gas drilling and coal mining are nothing new. Geologists have known for decades that the Utica and Mercellus shales make up a vast and relatively untapped natural gas and oil reservoir in eastern Ohio. State officials, according to the Akron Beacon Journal Online, estimate the reservoir contains roughly 5.5 billion barrels of propane, butane and oil, enough natural gas to fuel Ohio for 21 years.

In late May this past summer, Chesapeake Energy drilled down more than a mile and engraved a long horizontal shaft through Utica shale − a flaky black rock. If given permission by the state, high-pressure pumps will replace the drilling rig. Gallons of water, chemicals and sand will erode the shale, allowing precious natural gas, oil, butane and propane to escape to the surface.

Such a technique is referred to as “fracking.” Although on one hand, “fracking” allows Ohio energy companies to finally utilize Ohio’s untapped oil and gas reservoirs on the other it is causing massive debate among Ohio environmentalists and Ohio gas industry.

Supporters of shale drilling say such methods will expand oil-and-gas industry and provide thousands of Ohio jobs. Respectable and well-paid jobs that focus on producing a cheap and “clean” energy supply that could last for generations to come.

Environmentalists, on the other hand, say “fracking” is an environmental nightmare. A nightmare in essence that will poison Ohio soils, water and air. Scientist say there is no doubt that such chemicals used during fracturing, in addition to the heavy metals disposed of in the wastewater, pose a enormous threat to groundwater and streams and therefore, to Ohio’s citizens and surrounding neighbors.

Currently, the Ohio Department of Natural Resources’ Division of Oil and Gas Resources Management have issued permits for 23 wells.  On March 31 of this year, oil and gas companies must file reports with the Ohio Department of Natural Resources, in order to get permits and gain access to the untapped oil.

There is no telling what the state will decide, but sooner rather than later, Carrollton, Ohio will be target to zealous environmentalists and conservationists everywhere.

Written by Tasha Webber

Mark Wagner, Vice President of Government Relations at Johnson Controls, gives us an inside view into Johnson Controls working with the Army on the Fort Bliss project.

Full Transcript:

Recently I had the opportunity to use a Nissan Leaf™ for several full days, a much more interesting exercise than a simple test drive. As someone working in the sustainability area, as a co-chair of the California Clean Cars campaign and as a likely car buyer in 2012 (my current vehicle has over 230,000 miles on it) I am very interested in the electric vehicle (EV) market.

Nissan’s Leaf™ is among the handful of low emission cars that are presently authorized to carry a Clean Air Vehicle Sticker, entitling a single occupant to use the carpool lanes during rush hours – a very nice side benefit to EV ownership that helped speed my commute this week.

My general impression of EV driving is very favorable. This particular model is roomy, it has all the bells and whistles (bluetooth, navigation, backup camera, etc.) and most importantly, it really drives well. Acceleration, handling and power are all indistinguishable from a gas powered vehicle. The only issue I’ve had this week is the one that continues to slow down growth in the EV market, namely range anxiety and ease of recharging. I have been charging the vehicle at home and at work using conventional 120v outlets and while the process is simple and easy, it certainly takes a while, e.g. 11 hours to get a full charge last night. When I left my home the range indicator read “100 miles”, but 35 miles of highway driving depleted that amount to 42. In other words, at 60+ miles per hour, a 35 mile trip used up 58 miles of driving range. Keep in mind, I tried to use the EV just like I use my current one, driving as fast as usual as opposed to crawling along in the slow lane just to conserve the charge. With the indicator staring at you the entire time, you also start thinking about all of the devices that consume electricity in the car, such as the lights, the radio, and the seat warmers and so on. Since I want a fully functional vehicle, the notion of driving around in a dark, cold vehicle is not a selling point.

My conclusions: I love just about everything in the EV experience other than the limitations on range. If the car had a 200-mile range, I would be placing an order tomorrow. Until batteries are improved, however, fast charging 240v stations are essential and the buyers for whom EVs work perfectly may be limited. By the way

Written by Bruce Klafter. An environmental attorney by background, Bruce manages the core Environmental, Health and Safety  programs for Applied Materials and drives the company’s sustainability programs, including carbon reduction and product efficiency goals.

Energy efficiency in the US is much light and little heat – literally. Government policy pays a great deal of attention to saving electricity, but focuses little on the thermal energy we waste.

“Policy is electricity-centric in the US. Unless you are making kilowatts, the most efficient investments are off the radar,” said Rob Thornton, president of the International District Energy Association (IDEA), who I recently interviewed while writing this year’s edition of Pennwell’s US Guide to Combined Heat and Power Companies.

We throw away a lot of the heat. Power plants, for example, create heat as a byproduct of generation. Rather than reusing this thermal energy, we often let it dissipate into the air. As a result, we waste more energy than Japan uses for everything, according to Amory Lovins, author of “Reinventing Fire: Bold Business Solutions for the New Energy Era.”

There is good news, however. Thornton and others I interviewed see a growing change in Washington’s attitude about combined heat and power (CHP), district energy, and other efficient methods of using thermal energy. Movers and shakers are becoming more aware of these energy alternatives. In addition, states are increasingly incorporating heat efficiency into clean energy portfolio standards.

“Finally, after all of these years, combined heat and power has become a hot topic in the political community,” said R. Neal Elliott, associate director for research at the American Council for an Energy-Efficient Economy.

In fact, Congress is looking to improve heat efficiency in its own backyard. The Capitol Building, which already has a district energy system, plans to incorporate an 18-MW CHP system (also called cogeneration). The system is part of long-term energy plan that attempts to reduce costs and improve the efficiency and the environmental footprint of the Capitol. The CHP system will provide 200,000 lb/hour of steam to heat Congressional buildings. The steam comes from heat produced while generating the electricity, so the plant gets a twofer from the fuel. The CHP system will reduce building energy use 7.1%, according to the first quarter 2012 issue of IDEA’s District Energy magazine.

Barry Sanders, president and chief operating officer of American DG Energy, says that the smart energy movement needs to embrace heat, not just electricity, if the US is to achieve its energy independence goals.

“A gaping hole exists in the nation’s discussion about smart energy. Most of the talk focuses on electric power, and neglects thermal applications. Yet, we use a great deal of energy to heat and cool buildings, heat and chill water, and undertake thermal-driven industrial processes,” he wrote in a recent white paper, “Smart Heat: The Next Step in Clean Energy.”

In some parts of the country, we still use a good deal of imported fuel to make heat, at a time when we are trying to shift to domestic supply, Sanders wrote. He points out that oil continues to be the primary residential heating fuel in some of our most highly populated regions, such as the Northeast, the biggest single heating oil market in the US, according to the US Department of energy. And in New York, 10,000 of the city’s largest buildings use residual oil, considered a dirty fuel – 86% of the city’s soot comes from the burning of residual oil, according to New York City’s office of Long-Term Planning and Sustainability.

“By neglecting heat in our smart energy pursuit, we continue to forfeit domestic, efficient and inexpensive fuels in favor of polluting and pricey foreign imports,” Sanders wrote.

Written by Elisa Wood; who is a long-time energy business writer. To read more of her articles on energy visit www.RealEnergyWriters.com. 

As I watch the snow fall outside my window now, I am reminded that this is the time of year here in the Northeast where energy costs become very hard to bear for some.

At this time of year, we hear far too often of families struggling to pay bills and having to choose between paying for food and paying for heat.  But it’s not just an issue for those digging out from the latest snow storm.

According to the United Nations Foundation, one person in five on the planet still lacks access to modern electricity. Twice that number, three billion people, relies on wood, coal, charcoal or animal waste for cooking and heating.

The inequitable distribution of energy around the world, is not only unfair, it’s economically unsustainable, and environmentally dangerous.  While there are those who are struggling to find energy sources, there are others wasting it through inefficient energy use.

The United Nations Foundation has deemed 2012 the year of Sustainable Energy for All.  The Initiative is calling on all sectors of society: business, governments, investors, community groups and academia to work in support of three inter-linked objectives:

• Ensure universal access to modern energy services – Making sure there is easy access to reliable energy.

• Double the rate of improvement in energy efficiency – Ensuring energy efficiency measures save the maximum amount of energy use.

• Double the share of renewable energy in the global energy mix- Build the renewable energy supply to provide a diverse collection of energy sources to no one is dependent on one main source.

Whether it’s developing nations, or low income communities in developed countries like the U.S., energy efficiency is one of the most important tools to building a more sustainable energy system.

This burden of energy is the biggest reason why pursuing highest energy efficiency measures in new construction and existing buildings is vital for low income communities. The building sector, including residential, commercial and public-service buildings, offers the largest opportunity for cost-effective energy savings in the next twenty years.

According to the U.S. EPA, households across the nation spend more than $160 billion on energy to heat, cool, light, and live in their homes each year. Buildings represent 40 percent of our energy use in the U.S. and one third of the world’s primary energy.

In the face of rising energy costs it makes sense that building developers and operators would build or retrofit their properties to be as efficient as possible, yet this does not happen as often as it should because of lack of information on the benefits of energy efficiency, among other factors. Every building or industrial facility built without optimal energy efficiency measures represents a lost opportunity to lock in lower energy consumption for decades, or as long as the building is operating.

Reducing energy use in buildings is the cheapest, easiest, fastest way to solve the biggest problems around lack of sustainable energy, improve the environment and enhance both energy security and economic development. With residential energy use accounting for a significant portion of total consumption, simple improvements – such as switching to compact fluorescent light bulbs – are among the most effective. Greater environmental impact can be achieved by improving the energy efficiency of older, poorly insulated homes. Promoting energy efficiency in low-income households attacks two problems at once – climate change and poverty. Low income households traditional spend much more on energy bills than the average household. Energy efficient home weatherization measures like improved insulation can significantly reduce heating bills for these families. More efficient energy use allows money to be used for essentials like medicine or food.

Much is happening around the world to increase energy efficiency investments.  To improve sustainable energy for all it is important that countries help turn the tide by providing best practices and education for standardization and improved use of energy in both new and existing homes, businesses, public schools and universities, and commercial and industrial buildings.  There are two main approaches to focus on: Maximizing energy efficiency in new construction through advanced building guidelines and training as well as progressive building energy codes is one approach. Addressing the huge efficiency opportunity in existing homes and buildings through best practices for retrofit, building energy rating and high performance guidelines for operating and maintaining schools and public buildings for comfort and efficiency is the other.  Both must be addressed at the same to maximize opportunities for energy and cost savings.

The United Nations Foundation’s initiative is an opportunity to organize a global effort on promoting alternative energy solutions.  Events are happening all over the world from grass-roots events to major international governmental summits.  The cry for advanced energy management is being heard. We all have our part to make it happen.

Carrie Nash is the Strategic Marketing Manager for Northeast Energy Efficiency Partnerships(NEEP), a non-profit organization committed to accelerating energy efficiency in homes, buildings & industry. She also manages NEEP’s blog, Energy Efficiency Matters,www.energyefficeincymatters.org

If you answered cold fusion, eeehhhhh! Your time’s run out!   If you answered natural gas, have a cigar. Natural gas for the simple reason that it is one of the quickest ways to achieve a future in which an oil importing nation is no longer held hostage by foreign oil and carbon and other harmful emissions are sharply curtailed.

Seems like a heretical statement coming from someone who spent the last 15 years helping to develop an installed base of renewable energy projects. With 2010 Total Energy Production of 1.2% and 0.1% of wind and solar, respectively, the impact of renewable energy is a long way off. In fact, there are signs that the industry maybe softening in the U.S.

Natural gas is the cleanest burning fossil fuel. The combustion of natural gas emits significantly lower levels of carbon dioxide (CO2), nitrogen oxides, and sulfur dioxide than does the combustion of coal or oil. When used in efficient combined-cycle power plants, natural gas combustion can emit less than half as much CO2 as coal combustion, per unit of electricity output.

Are there “issues” with the extraction of natural gas from shale plays? Most certainly. Can the issues be managed? Again the answer is “Yes.”

Problems, and there were fewer than one would think, were as much a “Drill First – Figure Out Regulations Later” attitude than and real technical issues with horizontal drilling and hydraulic fracturing “Fracking.” The issues were traced to use of unproven methods buy unqualified drillers and frackers as well as misconception and perception.The fact of the matter is there were only 42 (<0.3%) documented incidents of casing failures from improper cementing out of over 15,000 shall gas wells drilled in U.S.

Another misconception is the public outrage over benzene emissions for wells. Again the facts show that there were little of no benzene emissions in the Barnett shale. Measurements ran about 0.001% or 1/1,000 of 1% benzene, compared to 0.5% to 1% in gasoline.

Environmental concerns with shale gas production are being raised throughout the global landscape where it is technically feasible to extract the natural gas. The primary driver is hydraulic fracturing’s impact on drinking water. The fracturing slurry is a mixture of 99% water and sand in combination with a proprietary mix of 1% chemical additives. The fluid is injected underground to fracture rock containing natural gas. This can impact drinking water from contaminated aquifers and wells. The other concern is the potential for water and air contamination by fugitive leakage of natural gas during extraction and delivery. Natural gas is a potent greenhouse gas with the ability to trap heat almost 21 times more effectively than carbon dioxide.

The brouhaha over water contamination arose from an unfortunate situation in Wyoming. Many news articles about the situation failed to highlight some key clauses in the EPA’s decision. First, the Agency was not definitive in blaming fracking for the water problems. Second, the EPA released the study before it had gone through the peer review process. Third, and most importantly, the Wyoming field is very different from most fracking areas. The gas-bearing rock being fractured in Wyoming was only about 1,220 feet deep and some water wells reached as far as 800 feet. By comparison, the gas-bearing rocks targeted by fracking operators in Texas and Pennsylvania are several thousand feet below any water supplies.  Unlike shale formations like the Marcellus in Pennsylvania and the Barnett in Texas, the Wyoming gas was in a sandstone reservoir and did not have a geologic barrier or “cap” atop the gas-bearing layer. With so many major geologic differences between the fracked wells near Pavillion and those in shale basins, industry experts caution against extrapolating any conclusions from the Wyoming study.

Worldwide technical recoverable shale gas reserves is estimated to be about 32,500 trillion cubic feet (Tcf) U.S.’s reserves have the potential to produce 845 Tcf including “wet gas” wells that produce liquid petroleum condensate along with natural gas. The Energy Information Administration (EIA) estimates that there are 1,279.5 Trillion cubic feet (Tcf) of technically recoverable natural gas resources in the United States.

Natural gas can change the region’s economic landscape.  Recently the IHS Global Insight reported:

“….. natural gas “shale gale” that began in the Barnett Shale is having “profound economic impacts” on the U.S. economy — creating jobs, reducing consumer costs for natural gas and electricity and escalating federal, state and local tax revenues,”

“….. shale gas development, after contributing $76.9 billion to the nation’s economic output in 2010, will add $118.2 billion in 2015 and $231.1 billion in 2035.”

“….. in 2010, the shale gas industry supported more than 600,000 jobs; that number will likely grow to nearly 870,000 by 2015 and 1.6 million-plus by 2035.”

“….. savings from lower natural gas prices, as well as associated lower prices for other consumer purchases, will add an average $926 in disposable income per household annually from 2012 to 2015 and more than $2,000 annually by 2035.”

“….. the shale gas industry and related jobs pay higher wages — an average $23.16 per hour — than those in manufacturing, transportation and education.”

“….. the boom in domestic gas production has held down natural gas prices and thus electric rates in Texas because gas is burned to generate much of the power.”

“….. as a transportation fuel, compressed natural gas is cleaner-burning and much cheaper than gasoline,”

The primary economic consideration is the need to boost demand of natural gas. As supplies increase, unless there is a corresponding increase in demand, the price will plummet until it becomes financially sound to stop productions.

The two primary sectors that use fossil fuels are electricity generation through coal-fired power generation stations and the transportation industry through petroleum. T Converting coal-fired to natural gas-fired electricity generation plant is on a relative basis a no brainer. However, the transportation sector is somewhat more problematic in terms of converting vehicles internal combustion energy from gasoline to natural gas. The cost of conversion can range from $12,000 for light-duty to over $35,000 for heavy-duty vehicles. When gasoline retail prices fall below $3.00 a gallon, it’s a difficult proposition to justify the cost to convert vehicles to run on CNG. However, over $3.25 a gallon, conversion is a sound investment.

Natural gas can also play an essential role in the export market. An article that ran early last year in the Huffington Post points in this direction.”U.S. Becomes Net Exporter Of Fuel For First Time In Nearly 20 Years”. Diesel and other oil-based fuels led the increase.

So what can be said about natural gas can be summed up in one phrase: “A thousand workers can provide it, hundreds of countries can benefit from it, billions can use it, and one earth can be protected by it.

In closing, more than any other fuel source today and for the near future, natural gas is the only fuel that can be utilized across major fossil fuel hungry sectors. As a sustainabilist would say, it supports the triple bottom line of people, planet and profit. Renewable fuels fail to satisfy these criteria.

References:

1. EIA: http://www.eia.gov/totalenergy/data/annual/showtext.cfm?t=ptb0103
2. The Future of Natural Gas: An Interdisciplinary MIT Study:http://web.mit.edu/mitei/research/studies/naturalgas.html
3. NaturalGas.org http://www.naturalgas.org/business/analysis.asp
4. IHS Global Insight:  http://www.ihs.com/info/ecc/a/shale-gas-jobs-report.aspx
5. Huffington Post: http://www.huffingtonpost.com/2011/05/03/us-becomes-net-exporter-o_n_857085.html 

The opinions expressed in this article are solely those of the author Dr. Barry Stevens, an accomplished business developer and entrepreneur in technology-driven enterprises. He is the founder of TBD America Inc., a global technology business development group. In this role, he is responsible for leading the development of emerging and mature technology driven enterprises in the shale gas, natural gas, renewable energy and sustainability industries. To learn more about TBD America, please visit: http://tbdamericainc.com/

 Aging grid infrastructure, rising energy costs and demand, and new and pending government legislation are some of the factors motivating consumers and utilities alike to seek more energy efficient, sustainable solutions. Smart grid technologies are the key to addressing these challenges and bringing energy management to the masses.

2012 will prove to be another exciting year to watch the smart grid market evolve. Here are a few top trends to expect next year:

1) Distributed Automation takes center stage 

Many utilities are preparing to leverage smart grid technologies to deliver improved reliability through increased automation.  Distributed Automation (DA) is a key element to this strategy as it enables two-way communication with substations, power lines, intelligent devices, and other physical facilities. As a result, utilities are able to remotely monitor and control systems, automatically identify and isolate faults and quickly restore service.

DA is set to play a significant role in smart grid infrastructure. Two drivers of this trend are: the expected proliferation of plug-in electric vehicles (PEVs) and distributed energy resources (DER) such as renewables.

IDC predicts that there will be 120,000 PEVs sold in North America in 2012. Consequently, the rate of DA adoption will accelerate as utilities seek to provide power to meet the added load requirements from EVs, while simultaneously maintaining grid reliability and safety.  Additionally, DA will be increasingly important as utilities seek to integrate distributed renewable generation resources into the grid.

Over the past 30+ years, DA has helped the utility industry realize cost savings and improve operational efficiency, reliability, and energy conservation, and its impact is projected to continue to grow in coming years (Pike Research forecasts that DA revenues will reach $10.4 billion by 2014, up from $2.7 billion in 2010). 

2) Demand response becomes ubiquitous

By enabling energy users to adjust power consumption based on signals from the grid, demand response (DR) provides a more efficient and less expensive way to use energy.

In recent years, DR has evolved from an economic and reliability tool towards being an active energy management solution. Building owner participation in DR stands to result in significant environmental benefits and help utilities improve grid reliability while meeting increasing energy demand.

Legislation is also encouraging commercial buildings to participate in DR programs.  For instance, the Federal Energy Regulatory Commission (FERC) recently issued ruling 745, which puts DR resources on par with traditional generation resources, enabling building owners to generate a revenue stream through DR participation. Additionally, the U.S. Green Building Council (USGBC) recently announced plans to release an updated LEED DR Pilot Credit which will establish guidelines anticipated to increase participation in automated DR programs.

On the residential front, the proliferation of smart meters and home automation systems in recent years has enabled residential DR participation. As an increasing number of homeowners hear about energy management programs from utilities, DR participation in the residential sector will continue to rise.

3) Cyber Security will continue to be an important focus 

Along with the benefits associated with smart grid infrastructure, there are some security challenges that utilities need to consider. Security is clearly a priority – Pike Research estimates that utilities will invest $14 billion, between 2011 and 2018, in cyber security solutions to secure their infrastructure.

Security vendors will increasingly focus on industrial control system (ICS) security to better secure transmission systems, substation automation, and distribution automation.  In the past, security vendors have placed a large focus on IT security functions, such as AMI security. In the coming years, we expect to see increased attention paid towards cyber security solutions which focus on securing control system segments.

4) Utilities will invest in analytics to extract value from big data 

Sensors and other smart grid technologies are producing a vast amount of data which, if monitored and analyzed properly, can lead to key insights about energy usage patterns and ultimately result in economic and environmental benefits and improved grid stability.  However, managing this data can be overwhelming. The ability to process and analyze data in real-time will be essential for the smart grid.

In 2012, utilities will begin to investigate analytics solutions, and we expect to see broad adoption by utilities over the next two to three years.

5) Utilities will reassess smart grid training, education and communication

The root philosophy behind the smart grid is that open communication between utilities and end-users will help change (for the better) the way we manage and consume energy.  The bi-directional flow of information remains a new concept to many utilities; as a result, education and training of utility stakeholders and customers on the benefits is important. As illustrated by The Smart Grid Consumer Collaborative’s (SGCC) recent report on consumer engagement, over the next few years there will be an increased focus by organizations and utilities with consumer-facing smart grid programs on educating and communicating with consumers about smart grid strategies.

Although it is still early to focus on consumer adoption and education, we will start to see players in the smart grid industry and regulators aim to turn consumers into smart grid advocates through enhanced communication campaigns.

2012 will be a transitional year for the smart grid market as smart grid technologies and solutions increasingly become seen as a key to addressing our country’s energy challenges.  Through the smart grid, utilities and consumers will be able to work together to manage energy more efficiently, resulting in improved energy efficiency and lower costs.  Although there is still work to be done, 2012 will be an exciting year to watch as these trends unfold and we work towards making the smart grid a reality.

Written by Donald Rickey, Senior Vice President, Energy Business, Schneider Electric

So Christmas went by without a hitch, now all that’s left to be done is prepare for the New Year. Well that and sort out your presents, the trickiest of which is a $5,000 gift from your wealthy uncle with the specification that the money must be used to Invest in a green energy company. What company do you choose? None.

With the sector of green energy being in its infancy it is nearly impossible to determine which companies will thrive and which companies will falter (think dot coms). Depicting where government subsidies and restrictions will be in the upcoming years is just as cloudy. So instead of taking your $5,000 gift and placing it into a few companies with the hope of getting a winner, the answer is exchange-traded funds.

An exchange traded fund is a security that features the tradability of a stock, coupled with the coverage of an index fund. So, instead of investing in say Trina Solar LTD (ADS) because the future of clean energy seems bright to you, take that money and invest in PowerShares WilderHill Clean Energy Portfolio (PBW) which is the largest green ETF (Trina Solar LTD accounts for 4.41% of the ETF’s weight and is the largest holding). This particular ETF has invested in 52 companies which tend to be small companies in the business of fuel cells, solar, semiconductors, basic materials, and utilities.

Let’s say that you don’t believe in all green energy but only solar energy. No problem, look to the Claymore/MAC Global Solar Index ETF (TAN). This ETF holds 30 companies that produce solar power equipment, fabrication companies that make solar panels, solar cell manufacturers, and companies that install, distribute and integrate solar into energy solutions.

With a little research you can find many ETF’s ranging in many green energy selections. Your money will then be diversified among numerous companies that increase the chances you will hold what becomes the industry leader and likely revolutionary company creating promising returns for you.

Things to look at once you find the fuel cell ETF or wind power ETF (whatever section of ETF you want) are the top ten holdings of the ETF, and check these with the key players in the sector. ,Also, note the number of overall holdings, an ETF with five holdings might not be the place for your money. The expense ratio is another thing you should note. You will be able to find many with a ratio below one percent.

In review, consider you receive $5,000 from you rich Uncle Dana. He prescribes that it must be invested in green energy. Taking this sum of money and sending it to perhaps 3 ETF’s (fuel cells, solar, and wind) not only diversifies your money among three top sectors of green energy and numerous companies within each aspect giving you the ability to see the growth within the sector reflected within your portfolio but will simultaneously relegate the failure of one company or impact of a government decision on five companies to an infantile loss.

Written by Benjamin H. Childers. 

Juhl Wind becomes development partner for Black Oak wind project in New York

Juhl Wind Inc. has signed a development services agreement with the Black Oak wind farm located near Ithaca, New York. The project is a proposed 15MW-30MW facility with expectation of the project being online during the third quarter 2013. Juhl Wind will be serving as a development partner for the project. In addition, the Black Oak wind farm has teamed up with Val-Add Service Corp., a South Dakota project management company, whose recent success includes structuring and coordination of a 10.5 MW community-owned wind project in Central South Dakota.

Duke, Integrys, Smart Energy complete 1.5 MW solar projects for New Jersey’s school district

Duke Energy Renewables, Integrys Energy Services and Smart Energy Capital announced the completion of two ground-mounted photovoltaic systems for the Central Regional School District in Bayville, New Jersey. The PV solar arrays at Central Regional Middle School and Central Regional High School can collectively produce about 1.5 MW of zero-emission electricity.

The school district is purchasing all of the output from its respective PV systems at a fixed rate under the terms of a 20-year power purchase agreement with a project company owned by INDU Solar Holdings. INDU is a 50-50 joint venture between Duke Energy Renewables and Integrys Energy Services. Smart Energy Capital developed the PV projects for the school district, while INDU financed all of the construction costs for the projects.

JPMorgan earns LEED Platinum certification for global headquarters in NYC

JPMorgan Chase has achieved the highest possible rating, LEED Platinum, from the U.S. Green Building Council for the renovation of its global headquarters at in Manhattan, New York City. The renovation will allow the 50-story building to cut its electricity consumption in half compared to pre-renovation levels. In addition, the building will save more than 1 million gallons of water a year by installing new, highly efficient systems and an innovative draining and filtering system.

SunPower breaks ground on 13.78-MW solar plant at Naval Air Weapons Station China Lake

SunPower Corp. has broken ground on a 13.78-MW solar photovoltaic power system at Naval Air Weapons Station China Lake in California. The plant is expected generate the equivalent of more than 30% of NAWS China Lake’s annual energy load, helping to reduce costs by an estimated $13 million over the next 20 years. NAWS China Lake will host the system, and buy electricity at prices currently below the retail utility rate, which provides the Navy with a long-term hedge against rising power prices with no initial capital investment. SunPower will operate and maintain the plant.