1. Global Energy Issues Burgeoning Demand – U.S., China, India… Peak Oil, Natural Gas / Supply Constraints Climate Change / Emissions Regulations Security Health Effects Ecological Consequences On its own, each issue increases the costs of fossil fuels or of using fossil fuels

2. Solutions for these Energy Issues Nuclear, Renewable Energy, “Clean” Coal… Burgeoning Demand – U.S., China, India… Peak Oil, Natural Gas / Supply Constraints Climate Change / Emissions Regulations Energy from all sources, wars… All renewable energy, coal… Security All renewable energy except large scale hydro… Health Effects Ecological Consequences Energy from all sources, wars… All renewable energy except biomass…

3. These Issues are Converging! Nuclear, Renewable Energy, ”Clean” Coal… Burgeoning Demand – U.S., China, India… Peak Oil, Natural Gas / Supply Constraints Climate Change / Emissions Regulations Energy from all sources, wars… Energy from all sources, wars… All renewable energy, coal… Security All renewable energy except large scale hydro… Health Effects All renewable energy except biomass… Ecological Consequences We can no longer develop/afford solutions that solve one problem but exacerbate others

4. Implications of Convergence Fossil fuels will become unaffordable rapidly The only solution that fits in the intersection of these circles is the combination of energy conservation, efficiency, and generation from renewable resources The transition to the era of renewable energies has already begun We need to accelerate this transition

5. We have made energy transitions before Whale blubber  kerosene Kerosene  electricity Electricity from coal  electricity from natural gas And now…fossil fuels to alternatives

6. California is leading the transition California’s per capita electricity consumption has remained flat since the early seventies because of energy efficiency –In the rest of the U.S. electricity consumption has increased by 40% California’s “loading order” for energy investments 1.Energy Efficiency 2.Demand Reduction 3.Energy from Renewable Resources 4.Energy from Non-renewable Resources AB 32 – Global Warming Solutions Act – Emission reductions by 25% from current levels by 2020

7. Napa is leading California … in Solar U.S. (2005):.07% PG&E territory (2007 projected): <1% –PG&E has more solar installations than any other any utility in the U.S. Napa wineries: >12% –More than 50 out of 400 wineries have already installed or are installing solar

8. Napa Wineries Napa wineries have adopted at this extraordinary rate because the COMBINATION of federal, state, and utility incentives have made solar economically feasible for commercial clients that are rich (pay taxes), profitable (can use depreciation), and creditworthy.

9. Pioneering Efforts through Wineries We are helping to remove the financial, technical, and regulatory obstacles through our adoption of solar. We are demonstrating that it is ok to start with energy generation first, because it increases consciousness about energy, which in turn results in energy conservation and efficiency.

10. Financial Obstacles Overcome Financing Options 5 years ago None. The first large wineries that went solar were CASH rich. Invested in solar because they expected better returns than from the stock market. Financing Options Today Bank loans, Tax Leases, Power Purchase Agreements For Commercial and Residential

11. Technical Obstacles Overcome Solar Electric Systems are everywhere –Slopes (Chateau Montelena) –Flat Rooftops (Western Wine Services (anchored), Wine Service Co-operative (ballasted)) –Sloped Roofs (Dutch Henry) –Leach Fields (Frog’s Leap, Staglin) –Wastewater Ponds (Far Niente) –In PG&E’s right of way (Saintsbury) –Integrated in Buildings (Sutter Home) –Replacing expensive vineyards (Chappellet, Nickel and Nickel)

12. Regulatory Obstacles Overcome (and being worked on) Renewable Energy Credits belong to host customers Transformer size constraint relaxed Permitted to build in PG&E’s Right of Way (Saintsbury) Meter Aggregation

13. Non-solar energy trends / near term possibilities in the Wine Industry Energy Efficiency Retrofits Biodiesel / Biomass Cogeneration Sheep instead of mowers Packaging Alternatives Carbon Neutrality Cradle to Grave Carbon Farming Triple Bottom Line Accounting

14. Longer-Term Energy Possibilities Distributed Renewable Energy Generation – Solar thermal, Small scale Wind, Fuel Cells, Direct Geothermal Centralized Renewable Energy Generation – Wind, Concentrating Solar Power, Waste to Energy, Tidal Energy Storage (fixed and mobile) Energy Transfer – Plug-in Hybrids + Vehicle-to-Grid Fuels from Alternatives – Ethanol from Algae, Cellulosic Ethanol, Solar generated hydrogen