Solving the Community Energy Puzzle Michigan Clean Energy Summit October 16 th, 2012, Hyattsville, Maryland Key to Community Competiveness Peter Garforth Principal – Garforth International llc

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

Energy Productivity How well do we spend our $1.5 Trillion? *IEA and World Bank – 2009 sources Key to National & Local 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 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

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

We Know What Works 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

Successful CEP Team Local Expertise – Global Perspectives Efficient Built Environment Efficient Efficient Transportation Multi-utility Distribution /Smart Grids Multi-utility IntegrationEconomicSocialEnvironmentalTechnicalIntegrationEconomicSocialEnvironmentalTechnical Electric Utility Clean & Renewable Supply options Clean & Renewable Supply options Gas Utility Efficient Industry Combine City Staff and Consultants

Develop Integrated Strategies Loading Order Prioritization Energy Efficiency Efficient homes and buildings Urban design for transport efficiency Efficient vehicles Efficient industry Local employment for commuting efficiency Heat Recovery Distributed combined heat and power District Energy in higher density neighborhoods District Energy on commercial/industrial parks Use existing waste heat Integrated Approach – Tailored for Community

Develop Integrated Strategies Loading Order Prioritization Renewable Energy Electricity - Solar PV, wind, run-of-river hydro Heat - Solar thermal, biomass, geothermal Heat and power – waste-to-energy, biomass Fuels – Ethanol, Biodiesel Energy Distribution Optimize community / regional investments Flexible community distribution approach – electricity, gas, District Energy … Flexibility to use different fuels and energy conversion technologies Smart metering and control Integrated Solution – Tailored for Community

Develop Enabling Strategies Move from Planning to Implementation Local Governance Strategic priorities, oversight, flexible teaming, investment & ownership Policy and Planning Urban design, building performance, energy services, incentives, local flexibility Local Utility Structures Energy service integration – efficiency, electricity, gas, heating, cooling, water… Supply choice integration – heat recovery, fossil, centralized or distributed Integrated Energy Information Networks Full supply chain, all energy modalities Community reporting and transparency Rethink Community Level Energy Integration

Scale Project - Industrial Park Integrated Energy Services Scale Project - Hope College Campus Scale Project - Historic District Single Family Neighborhood Scale Project - High School / Hospital / Aquatic Center Holland: Initial Scale Projects Holland: Initial Scale Projects Scale Project - District Heating Initial Network Potential Industrial link to District Heating

Benefits of Winning! Competitive-Sustainable-Flexible CommercialCommercial Reduced costs Rental values Low vacancy Productivity Reduced costs Rental values Low vacancy Productivity BanksBanks Collateral Value Credit worthiness Collateral Value Credit worthiness ResidentResident Lower utility costs Improve resale value Enhance employment Improve quality of life Lower utility costs Improve resale value Enhance employment Improve quality of life DeveloperDeveloper Premium prices Low carrying time Reduced investment Premium prices Low carrying time Reduced investment Environmental impact Community growth Attractive development Competitive energy services Reliable energy supply New business opportunities Environmental impact Community growth Attractive development Competitive energy services Reliable energy supply New business opportunities UtilitiesUtilities Higher returns Emissions reduction Customer intimacy Diversification Higher returns Emissions reduction Customer intimacy Diversification Tailored energy Lower costs Sell waste energy Reduced CO2 risks Tailored energy Lower costs Sell waste energy Reduced CO2 risks IndustryIndustry AcademicAcademic Sustainable curriculum Lower costs Student magnet Global network Sustainable curriculum Lower costs Student magnet Global network CommunityCommunity Breakthrough Benefits – Restructured Relationships

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