Solving the Community Energy Puzzle Michigan Clean Energy Summit October 15 th, 2012, Hyattsville, Maryland Smart Grids or Smart Energy Networks? Peter Garforth Principal – Garforth International llc

Most of us live in Urban Setting 70% of Global Energy Use *UN Sources Urban Population passed 50% in 2008 Percent

Total US Energy Use ~ $1.5 Trillion Most in Urban Environment Source: US DoE EIA Buildings 40.7% Industry 31.4% Transport 27.8% Coal Gas Domestic Oil Imported Oil Uranium Renewable Homes Commercial Industry Transportation Operates in Inefficient Regional Silos

Energy Productivity How well do we spend our $1.5 Trillion? *IEA and World Bank – 2009 sources Key to Competitiveness RegionPopulationGDPEnergy /Capita Energy /GDP USA4.5%23.0%17.8%100 Canada0.5%2.5%2.1% EU7.4%30.3%13.0%4556 Japan1.9%7.8%3.9%5365 China19.7%6.8%16.1%21307 India17.1%2.0%4.9%7319 World100% 22198

Dysfunctional Energy Supply Chain From fuel to service Uses 70% of all energy 25% High-cost low returns High risk High greenhouse gas 5% Pay 100% for fuel - Get less than 10% in services

Why Some Communities Care New Energy Realities… Investment and Green Jobs Energy cost and competitiveness Community Values and Image Supply quality and security Environmental legislation Weather events Nuclear, gas and coal uncertainties… Fundamentally Different From Past

Global Benchmarking Informing Community Targets We know what works! mt CO2 / capita

Copenhagen Integration from Use to Fuel Triggered by 70s energy crisis 3.5 tons / capita GHG Efficiency World leading building efficiency Energy Performance Validation District Energy Widespread across city Fuel flexibility Multi-fuel cogeneration Coal, oil, gas, biofuel, waste-to-energy Wind and solar generation Transport Urban design for bike/walking Efficient trams/trains City-wide EV plans High Value Employment 2009 – Voted Second Most Livable City

Copenhagen Results Decouple Growth from Energy Use Systematic Energy Integration Works Source: LSE Cities Study

Mannheim City Utility Integrated Utility – Multiple Sources Integrated Multi-Utility Multiple Sources Public-Private Energy Services 51% City Owned 49% Private Capital Benefits Local accountability Minimize infrastructure duplication Optimized supply choices Multi-media Smart networks Competitive costs Optimization between media Business innovation Low cost – clean – flexible - evolving MicroCHPWasteCHPCoalCHPGasCHPWoodCHPSolarCHP Cooling, heat, electricity, steam, gas, water Integrated networks control Energy Zoning *Source: MVV Energie AG

Challenging the Status Quo US & Canadian Cities Breaking the Mold Fully Integrated Breakthrough targets All aspects of energy Economic Technical Environmental Institutional Social Multi-decade Globally benchmarked

Successful Community Energy Planning Three Groups of Balanced Benefits Something for the Entire Community Competitiveness Security Environment

Guelph Community Energy Initiative Prioritized strategies Above-Code building efficiency All construction – new and retrofit Energy Performance Labels All construction – national pilot Transport & neighbourhood efficiency Urban design and vehicle choices Heat Recovery & CHP New District Energy infrastructure Industrial and other sources Renewables Biomass and Solar Photovoltaic in large scale New municipal energy services company Integrated Solution – Not a Buffet!

Community Level Integration Key to Breakthrough Energy Performance Local Governance Strategic priorities; utility oversight; flexible teaming; investment & ownership Policy and Planning Freedom Urban design; building performance; energy services; incentives; local flexibility and exceptions Local Utility Structures and Teaming Energy service integration – efficiency; electricity; gas, heating, cooling...water… Supply choice integration – heat recovery; fossil; renewable; centralized or distributed Integrated Information and Control Networks Full supply chain; all energy modalities Community level – community sharing Smart Energy Networks..not.. Smart Grids

Thank You Peter Garforth Garforth International llc +1 (419) Office +1 (419) Mobile