Legend Power Blog

A recent study by Pike Research ,”Energy Efficiency Retrofits for Commercial and Public Buildings,” finds that there are untapped opportunities in energy efficiency retrofits for commercial buildings in the US.

According to an article in GreenerBuildings that refers to the study,

Owners of commercial buildings in the U.S. could save more than $41 billion a year in energy costs, if all currently existing commercial space were placed in a decade-long energy efficiency retrofit program requiring an annual investment of about $22.5 billion.

The Pike study notes that while the best-funded energy retrofit projects are in institutional and government buildings, federal non-industrial buildings only represent 3% of commercial buildings and that the real focus should be on private commercial buildings.

According to GreenerBuildings, the report said:

If the goal of the energy retrofit industry is to spend a little money on efficiency, while total national demand for energy continues to grow, then present policy is functioning well. However, if the goal is to reduce the total demand for energy in buildings over time, by the 50 percent or more needed to address international competitiveness, global warming, and energy independence, then present energy policy needs a substantial retrofit.

If national carbon-emissions legislation addressed energy use in commercial buildings with a combination of high energy prices and reinvested incentives, then the market for energy efficiency retrofits (and for educating the workers in this market) would explode with activity.

Download the executive summary of the Pike Research report.

One viable option for commercial building owners to achieve these savings is conservation voltage regulation, an energy conservation technique that regulates the incoming voltage to buildings.

Legend Power’s conservation voltage regulation technology, the Harmonizer-AVR, is an electronic tap changers that regulates the voltage coming into a building. Tests show that the Harmonizer-AVR saves 6-10% of a building’s energy costs. For example, Honda Canada reduced their power costs by 6%.

For more information about conservation voltage regulation and Legend’s technology:

• How Energy Conservation Through Conservation Voltage Regulation Works
• Legend Power’s Smart Grid Technology
• How Legend’s Smart Transformer Earns You LEED Points
• US Energy Efficiency Incentive Programs

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.

Suppose your CEO calls tomorrow and asks, “What are we doing about power consumption?” What will you say?

Reducing consumption by turning off computer monitors and equipment requires lifestyle changes to be adopted through the entire organization. These are easy choices to make but they are hard to implement and substantial return on investment is not assured.

Proven, existing efficiency technologies — in everything from lighting to climate control and voltage regulation — can unlock the untapped reserves of efficiency gains buried in many non-residential buildings. Plus government incentive programs remove the barriers to implementation by making the up-front costs and payback periods affordable.

In high-cost energy states such as California, the state government has allocated $3.1 billion for energy incentives for the next three years. New York State also passed legislation at the end of 2009 to make loans available for businesses that want to improve their energy efficiency.

Each state’s programs require different application processes for commercial and institutional buildings and industrial facilities, which means that despite the availability of funding, many building owners and facility managers leave this money on the table, in part because they overestimate the cost of saving energy and forfeit researching their energy saving options.

So when the CEO comes calling, consider whether you are being overbilled for your energy and review the options and funding.

IKEA, for example, saved 7% of its annual energy consumption and saw a 50 kilowatt reduction in peak demand after installing Legend Power’s voltage regulation device in it’s Richmond, BC, facility. The electronic tap changer regulates incoming voltage and reduces energy consumption and costs, extends the life of equipment and does not require workflow changes.

Lighting retrofits, and the replacement of air conditioning sytems, industrial motors and other devices that consume electricity are other commonplace solutions covered by incentive programs.

To give you an idea of what is available, the following chart lists the states with the most expensive energy costs, the number of incentive programs that are available, and the state budget for energy efficiency projects.

To save money, reduce greenhouse gas emissions, and conserve power, find the incentive programs in your area:

The Database of State Incentives for Renewables and Efficiency lists all of the incentive programs in the US, by state.

The US Department of Energy explains each state’s energy incentive programs.

An explanation of inefficiencies in the power grid.

Global interactive entertainment software company selects Electrical Harmonizer-AVR

Burnaby, British Columbia, March 31, 2010 – Legend Power Systems Inc. (“Legend Power”) (TSX-V: LPS) announces that it has signed a sales agreement with a leading global interactive entertainment software developer providing it’s British Columbia location, one of their many facilities worldwide, with Legend Power’s patented Electrical Harmonizer-AVR system to reduce power consumption.

“This sale, to a highly regarded company that is committed to corporate and environmental responsibility, is a real milestone. It supports our conviction that the Electrical Harmonizer-AVR effectively and economically achieves substantial energy savings,” said Gerry Gill, Chairman and CEO of Legend Power.

Legend Power sees many more similar opportunities in the North American market and will continue to develop its technological advantage to capture them. The company intends to create value for shareholders by solidifying its position in the vanguard of practical energy conservation.

View the full press release.

Last Saturday, March 27th was Earth Hour. At 8:30 pm countries around the world turned off their lights in celebration of energy conservation.

Started in 2007 in Sydney, Australia, Earth Hour is now a global movement with more than 50 million people across 35 countries who participate every year to take a stand against climate change. According to the Earth Hour website, Earth Hour is

a global call to action to every individual, every business and every community throughout the world. It is a call to stand up, to take responsibility, to get involved and lead the way towards a sustainable future.

This year’s Earth Hour saw savings across Canada. British Columbians reduced electricity consumption enough to reduce the province’s electrical load by 1.04 per cent. Hamilton, Ontario reduced energy consumption by more than three times what they did last year during Earth Hour – decreasing demand 19.1 megawatts from the previous year,  representing a 3.5 per cent drop in demand.

While Earth Hour does an excellent job of increasing awareness of energy conservation and helps to cut down on energy use for that hour, installing Legend Power’s electronic tap changer, the Harmonizer-AVR, conserves electrical energy throughout the year.

Implemented across North America, the Harmonizer-AVR would save 30 days worth of power. This is equal to 720 Earth Hours per year.

What energy conservation efforts are you involved in?

A new website, MyEex.com (pronounced “my-eeks”), has your sustainability efforts working for you, letting you earn money for reducing your personal energy use.

From their website:

My Emissions Exchange…is a personal carbon exchange that lets you earn money for reducing your carbon footprint. My Emissions Exchange tackles the increasingly important issue of global warming in a new way: by paying individuals for reducing their carbon emissions. MyEex allows participating members to earn money by brokering their personal carbon credits on the voluntary carbon market and returning the proceeds.

Their slogan is Measure, Reduce, Earn and it sounds simple enough.

First, you signup and record your electric and heat usage for the last year. Next, you follow their tips for reducing your energy use and enter your usage once a month. MyEex.com does the calculations to figure out how much you are saving and earning in credits. They will then certify your reductions and you’ll earn carbon credits like those granted to companies, states, and countries. You’ll receive your earnings via Pay Pal.

Credits are sold on the Voluntary Carbon Market. The site says that you can expect to earn between $10 and $25 for your VER (Voluntary Emissions Reductions). In addition, you’ll also see savings on your utility bill — it’s a win-win situation!

Watch the video to find out more:

If oil runs out in 2050, and coal is the new default for electrical energy, what’s next? How does electricity generation from coal affect global warming? What role does energy conservation and alternative energy play?

Have your say. Comment on the Global Oil Countdown Clock.

The Energy Pyramid is a simple but effective diagram outlining how renewable energy, energy efficiency and energy conservation must work together to achieve our clean energy goals. While renewable energy is important, energy efficiency and energy conservation have the most opportunities and, thus, are where we should focus are efforts.

“One-third of all the energy used in commercial buildings is wasted.”

This is according to Robert H. Lane, president of Robert H. Lane and Associates Inc., in a seminar during Construct Canada, Canada’s largest building design and construction show, last month.

Referring to Lane’s presentation, RCD Digital Media stated:

When it comes to understanding intelligent buildings – those with systems and technologies that work in sync to create efficiencies and save energy – developers and contractors need to do more homework.

Despite the current trend in green building and sustainability, there’s a lot more to learn. As Lane says “I think there is a general know-how and experience lacking in a lot of building professionals.”

Intelligent building design is essential to cutting down on our energy consumption and eliminating energy wastage. Unlike most other countries, Canada’s energy consumption is going up, not down as Lisa Bate, Chair of Canada Green Building Council pointed out in her seminar at Construct Canada.

Part of the problem, as Lane points out, is that building professionals “often overestimate the cost of saving energy.” Building professionals need to sit down and take the time to learn about energy saving processes and issues.

At Legend Power we are noticing an interesting shift in attitudes about energy efficiency. Instead of choosing energy efficiency for environmental reasons only, companies are now talking about the financial benefits of doing so.

In fact, newspapers are now covering this angle more easily given the industry data available that reinforces the financial sense of going green. The Wall Street Journal reported on January 6 that, according to a new study from venture capital firm Good Energies Inc., half of non-residential buildings will be green by 2015.

In particular, WSJ is referring to results released in November 2009 by Gregory Kats, managing director of Good Energies. The results of Kats’ two-year independently funded study are available in a book called Greening Our Built World.

According to the Wall Street Journal:

Kats and his partners interviewed 100 architects working on 170 green non-residential buildings, mostly located throughout the U.S. He also obtained information from the USGBC, the American Institute of Architects, the American Public Health Association, the National Association of Realtors, BOMA International, the Federation of American Scientists, the Real Estate Roundtable, the National Association of State Energy Officials, Enterprise Community Partners and the World Green Building Council.

The interesting shift in attitude here is that “Green Buildings”–buildings that use fewer resources to build and to sustain—are commonly thought to be too expensive to attract builders and buyers. But the costs are not as high as expected.

Kats’ study provides detailed findings on the costs and financial benefits of building green. According to the study, green buildings cost roughly 2% more to build than conventional buildings—far less than previously assumed—and provide a wide range of financial, health and social benefits. In addition, green buildings reduce energy use by an average of 33%, resulting in significant cost savings.

The study provides a large enough, detailed enough body of data to say that green building is very cost-effective and “it reduces risk in a number of areas including health, exposure to energy and water prices and obsolescence,” says Kats.

In addition for real estate investors, energy efficiency measures, whether introduced at the building stage or in retrofits, enhance real estate portfolios

A new report, “Energy Efficiency in Real Estate Portfolios: Opportunities for Investors” (PDF), was commissioned by Ceres and authored by the responsible investment group of the investment consulting business Mercer.

The report draws on key industry and academic research on building efficiency’s economic impacts. It also shows that “proven, existing efficiency technologies — in everything from lighting to climate control and more — can unlock the untapped reserves of efficiency gains buried in many real estate holdings” (Source: GreenerBuildings, December 24, 2009)

Those gains would be a boon to real estate investors’ bottom lines—both direct property owners like large pension funds and smaller investors who primarily hold real estate securities.

So whether it’s making a new building less power-hungry or conserving energy in an existing building, both efforts combat climate change and leverage efficiency to achieve cost and risk reductions.

For more information, see our case studies from industry leaders showing the positive impacts of voltage optimization on power and electrical costs.

Read Case Studies

• IKEA Richmond Saves 7% on Electricity
• Honda Canada reduces power costs by 6%
• Science World’s Energy Conservation Efforts Reduce in Electricity Costs by 8.5%

The Legend Power Harmonizer has received the 2005 Canadian Energy Efficiency Grand Prix Award and been recognized under the Energy Star Partner program.