Legend Power Blog

Last month CleanTech released it’s CleanTech Investment Monitor 1Q 2010 Report. CleanTech’s Investment Monitor is a  quarterly report on cleantech investment trends. Last month’s report highlights the growth of cleantech markets, particularly in energy efficiency. Some of the report’s key findings:

“VC funding continues to bounce back led by North America.”

Global cleantech venture investment for the first quarter of 2010 reached $2.1 billion — the highest quarterly investment total since 3Q08. North America had 82% of the share of the investment total.

“Transportation and energy efficiency lead the way in sector preferences.”

Although the amount raised by energy efficiency companies, $296 million, was down 5% from 4Q09, the most number of deals for the quarter was in energy efficiency, at 42 deals.

The report states, “Of the top three sectors this quarter, it is energy efficiency where we continue to see the strongest interest on a forward looking basis, particularly focused on the buildings segment.”

The report goes in to say that the increase in investment in lighting is because of the following factors:

• Exit opportunities: Because the major players are eager, there are various exit opportunities for investors.
• Government stimulus finding: Tax incentives and regulatory changes are making energy efficiency an appealing investment category.
• Market size: Many energy efficiency technologies have very large market opportunities.
• Energy efficiency theme: There is an overall move towards energy efficiency as a cleantech investment category.

“Utilities and corporates continue investing in cleantech.”

Corporate direct investments announced during the first quarter of 2010 increased by 140% from 4Q09.

Utilities are focusing on increasing direct investment in alternative energy generation and smart grid projects because of government incentives, improved market conditions and in order to comply with standards.

The report states, “Companies continue to invest and integrate cleantech to improve energy efficiency and reduce carbon emissions in order to reduce costs, mitigate energy price volatility risk, and comply with existing and pending regulations around carbon and climate change risk disclosure.”

For more information on clean technology investment trends, CleanTech clients can download the report here.

Commercial energy efficiency measures generally gain wide-spread adoption through utilities — either with their use of the technology or with their approval.

But how do utilities filter through all of the products and options available to decide on what energy efficiency measures to support? What do utility managers want to see when they’re considering new technologies?

In our experience at Legend Power, utilities look for technology that is proven to save energy and that won’t cause problems on the power grid (harmonics, poor power factor etc.). They also look at the cost effectiveness of the technology when making their decisions.

The following items help show a product is proven and won’t cause problems to the grid:

• UL approval. This may be costly but well worth the investment.
• Case studies & pilot projects with third party verification of energy savings.
• Well researched whitepapers.
• Patience. Many utilities often move slow and businesses like to move fast. It is possible to push a utility to move quickly, but a delicate approach is needed.

The key is that the technology must be able to be implemented by the customer. In terms of demand-side management (DSM) the utility may provide incentive funds that can be used to encourage or speed up adoption of DSM technology. It is important that the customer is able to implement the technology — if they can’t, then it doesn’t qualify as DSM.

The other key point is Measurement & Verification. Many utilities have to answer to a government body and have conservation targets to achieve, so the ability to verify the savings achieved is very valuable.

What are your experiences with utilities? Are they similar to ours or do they differ?

Photo Credit: http://www.flickr.com/photos/seattlemunicipalarchives/ / CC BY 2.0

Note: This article was originally published in Green Technology Report.

By Jonathan T. Orr

www.GreenTechnologyReport.com | Full Article

Friday, May 14,  2010

When Green Technology Report last talked to Gerry Gill CEO of Legend Power (TSX.V: LPS, FSE: XLE) he spoke confidently not only of the good their proprietary smart grid technology can do for the environment by enabling commercial facilities to minimize carbon footprints by reducing electricity usage by up to 10 percent, but also about the momentum that Legend Power was building selling the technology directly to large retailers in Canada.

Well with Legend Power’s recent announcement of an agreement with one of Canada’s largest distributors and retailers of hardware, renovations and gardening supplies, to install its first Electrical Harmonizer-AVR in one of its Toronto outlets, that confidence has proven to be well founded.

This significant agreement demonstrates clearly that this retailer’s commitment to sustainability has led them to choose Legend Power’s smart grid technology to reduce its annual energy costs and greenhouse gas emissions, now rather than in some distant future. The potential for further sales for Legend Power is huge as the retailer has 700 corporate, franchises and affiliates stores, and will be evaluating additional stores for implementation of the Electrical Harmonizer-AVR.

Gill stated, “This is the result of having a product with proven energy saving results as well as the strength of our marketing team. We now have 21 facility audits scheduled with a further 14 proposals out and the potential for forty to fifty other facilities in Ontario. Then we’re looking at California and its million plus buildings”.

The opportunity for Legend Power to capitalize on this momentum is made even more likely by the fact that the Ontario Power Authority has increased its conservation incentive funding for the entire province for technologies such as Legend Power’s Electrical Harmonizer-AVR, which will triple the companies incentive funding and addressable market size outside metro Toronto.

While many green technology companies struggle to convince businesses of the practicality of their products or to demonstrate clear savings to companies, Legend Power continues to power forward and now has a full pipeline of sales about to pour forth in Canada and beyond. Based on the fact that this announcement is precisely what the company told us they would accomplish when we last wrote about them we think clean tech minded investors that admire results will want to ride this momentum with them.

Electricity Savings Now

While climate legislation and green energy policies remain stalled throughout the world, Legend Power provides a solution that will make practical sense to anyone: with it’s patented technology they can reduce a company’s energy costs by simply optimizing voltage use. With Legend Power’s smart grid system companies need not go through lengthy government consultations or costly environmental evaluations, they can save money today and reduce stress on the broader electricity grid while doing it.

For environmentally concerned consumers, green focused CEOs, and clean tech investors, deciding upon the best possible solutions to our dilemma of ever increasing GHG gas emissions can promote paralysis. So rather than generate more statistical smog or elucidating more convoluted theories, lets just sum up what Legend Power can offer.

• Up to 10% savings on electricity with improved efficiency
• A free facility audit
• A direct reduction in electricity grid usage
• A clear and concurrent reduction in C02 emissions
• No lengthy government consultations or environmental assessments

Gill was clear about LPS’ sales potential for other large retailers “We have a great answer to the question that any CEO would ask. How can you help us? We can help you by saving you money right now, not in the future and by reducing your corporation’s carbon footprint in one the world’s most environmentally aware countries. We can do this for you today.”

How It Works

The Electrical Harmonizer-AVR uses a transformer with a set of taps to set the degree of voltage optimization for the incoming power supply. The AVR component enables the taps to automatically change, under load, in response to fluctuations of the power grid. By optimizing the voltage level the Electrical Harmonizer-AVR allows customers to reduce energy consumption, peak demand, greenhouse gas emissions and maintenance costs while improving overall power quality issues.

The fundamental concept underlying Legend Power’s technology is based on “Conservation Voltage Regulation” (CVR) or Voltage Optimization. Simply put, the patented Electrical Harmonizer-AVR allows you to make best use of your electricity by giving you voltage when you need it and by limiting it when you don’t. Unbeknownst to many companies, they are frequently paying for electricity that they are not using as well as operating machinery and lights at its highest capacity and prematurely wearing them out.

Proof Is In The Power Savings

Many companies promising these kinds of energy savings and emissions reductions simply state that this is the case and ask you to rely on their expertise without being able to prove it. Legend Power’s Electrical Harmonizer-AVR results have been proven to reduce electricity consumption by 7% to 10% and have been independently verified by no other authority than BC Hydro. But you don’t have to take BC Hydro’s word because LPS will provide your company with a free energy use audit. This process includes a review of your energy billing, a walkthrough of your facility, a simulation of the Electrical Harmonizer-AVR technology and an in-depth presentation of the results.

This sale to such a large Canadian retailer is a clear testament to the attractiveness of Legend Power’s technology for clients who want to effectively and economically achieve substantial energy savings, while reducing their carbon footprint “. But LPS don’t intend to stop at Canada’s borders.

As Leonard Cohen might have put it for Legend ‘Once we take Ontario, then we take California’. Mr. Gill pointed out that “California is the world’s 8^th biggest economy with a million buildings and some of the highest utility rates in the country. It holds massive potential for a company like us and we intend to make it our next field of expansion”

Legend Power is on the cusp of major sales in Ontario with a focused and aggressive Canadian and North American expansion plan. At this rate it’s starting to look as though Legend Power are living up to their name as we predicated when we first wrote about them on GTR and bold investors will want to be part of the story.

Follow the company’s progress at: http://www.legendpower.com/

DISCLOSURE: A fee has been paid for the production and distribution of this article and as such should be viewed in the context of advertising.

Cool Globes: Save Power with Energy Efficiency

Tomorrow is Earth Day and people around the world are promoting environmental awareness and encouraging community action. According to the Earth Day Network, more than 1 billion people participate in Earth Day activities, making it the largest secular civic event in the world.

Here are 4 reasons why you should celebrate Earth Day:

The Clean Energy Revolution is Coming

Obama’s attention right now is on energy reform. Last week, he urged business heads to push Congress in support of climate and energy bill. He told the group the climate bill – which would cap global warming emissions – is good for business and that members of Congress need to hear that.

Next on the Obama administration’s agenda is developing a clean energy and climate bill, a bill which, according to Dan Lashof in the Huffington Post, will add “2 million clean energy jobs, cut pollution by 2 billion tons, and save 2 trillion dollars worth of oil imports.” To push Obama to move ahead, Senators John Kerry, Lindsey Graham, and Joe Lieberman are expected to release a bipartisan proposal on April 26th.

Canadians Are Leading Commercial Energy Conservation

Canadian Companies are providing some of the world’s leading commercial energy conservation solutions. As mentioned in an earlier post, companies doing interesting things include:

• Pulse™ Energy, has software that collects, analyzes and communicates real-time energy intelligence for building operators and management, enabling savings of 5-25% with improved operating efficiency.
• PowerKure™, an integrated modular system that is custom engineered for each facility to effectively and economically optimize power quality, providing guaranteed energy savings, through reductions in power demand and power consumption. (KVA/KW and KWH)
• REGEN Energy provides commercial, industrial, institutional, and multi-unit residential facilities with the ability to reduce their electrical demand charges by at least 25-30%.
• Fifth Light offers advanced Lighting Solutions that conserve energy, improve lighting quality and simplify facility management while generating an attractive return on investment.

Smart Grid Technologies are Within Grasp

Worldwide adoption of smart grid technologies is growing and if you need proof, just look at China. Monday was the grand opening of Yangzhou’s state-of-the-art Smart Grid Demonstration Center. The center is meant to serve as a model for smart grid adoption throughout China.

Cool Globes are at Science World

Cool Globes: Hot Ideas for a Cooler Planet, is a public art exhibition designed to raise awareness of solutions to climate change. With globes ranging from “Green Your Screens” to “Cool Urban Roofs” to “Tidal Energy”, they are meant to remind us of the many ways in which we can contribute to solving global warming.

Cool Globes grew out of a commitment at the Clinton Global Initiative in 2005, and was incorporated as a non-profit organization in 2006.  Since that time, Cool Globes premiered in Chicago and went on tour across the country from Washington DC to San Francisco, San Diego, Sundance, Los Angeles and Houston.  In the fall of 2009, Cool Globes opened the first international exhibit in Copenhagen. We currently have globes on display at Science World in Vancouver, and are planning exhibits in Geneva and Marseilles.  It is our hope that the millions of people who have experienced the exhibit, leave with a vast array of solutions to climate change, and with one clear message….we can solve this.

For more reasons to celebrate, watch this video:

Do you associate smart meters with higher energy bills? Would you if you were charged more for energy during peak hours?

A Wall Street Journal article written by Rebecca Smith, entitled “What Utilities Have Learned From Smart-Meter Tests…”, explores the opportunities that smart meters are missing out on.

Smith says that because smart meters send readings on electricity usage to utilities throughout the day, they make it possible for utilities to charge more for power when demand is highest (in the afternoon) and less when usage falls off (at night). But, according to Smith, utilities are hesitant to charge customers for extra energy use. They fear that if customers associate smart meters with higher bills, this will have a negative effect on how the technology is perceived.

Smart meters are expected to represent 1/3 of US electric meters in the next 5 years.

By making variable pricing plans possible, smart meters are expected to play a big role in getting customers to reduce their peak-hour energy consumption, a key goal of utility executives and policy makers. Electricity grids are sized to meet the maximum electricity need, so a drop in peak demand would let utilities operate with fewer expensive power plants, meaning they could provide electricity at a lower cost and with less pollution.

Utilities have run dozens of pilot tests of digital meters and found that people cut power consumption the most when faced with higher peak-hour rates. But utility executives and regulators have been reluctant to implement rate plans that penalize people for too much energy use, fearing that if customers associate smart meters with higher bills, they will stall the technology’s advance just as it is gaining traction.

…So, many utilities are trying an approach that is less controversial, but also less effective: offering rebates to customers who conserve energy in key periods of the day.

The article continues on to say that utilities are also finding that commercial customers are unable to cut their power usage. Last summer, Connecticut Light & Power Co., a subsidiary of Northeast Utilities Service Co., gave new meters to 3,000 residential and business customers. Commercial customers, faced with peak-hour pricing, cut their demand 7%—far last than residential customers who cut their peak use by 16-23%.

Jessica Brahaney Cain, director of CL&P’s smart-grid planning, said that this shows that many commercial customers don’t have the option of cutting usage during times of peak demand. “A restaurant has to use its ovens,” she says. “A dentist has to use his drills.”

How effective are smart meters if utilities don’t take advantage of the opportunities that they present? Should commercial facilities be charged more for energy during peak hours? If not, what other options are available?

Dr. William Dunford is Legend Power’s Chief Technology Officer and developer of the automatic voltage regulator and an Associate Professor in Electrical Engineering & Power Electronics at UBC.

Dr. Dunford has a master’s degree in electrical engineering from Imperial College, London and a PhD from the University of Toronto. He has also been a faculty member at both institutions. Dr. Dunford’s industrial experience includes periods in the aerospace industry at the Royal Aircraft Establishment (now Qinetiq) and Alcatel Espace. He was also a field engineer for Schlumberger in various locations in the Middle East.

Dr. Dunford has been involved with many research projects in conjunction with companies and government agencies, including a teaching company scheme in the UK. Several of these projects have been related to energy conversion and alternative energy, such as a photovoltaic powered pumping system for African villages and a similar system for watering cattle in British Columbia. Others have involved the design of hardware for industrial and traction applications, such as a drive system for a mining locomotive.

Dr. Dunford has been on Legend Power’s board since 2006 and he was Legend Power’s first webinar speaker on The Effects of Voltage Optimization.