Saving
Energy and Money
with
Green Revolving Funds
CRSES Seminar
Stellenbosch University
@ Sustainability Institute, Lynedoch
Dr. Matthew Kuperus Heun
Engineering Department, Calvin College
mkh2@calvin.edu
15h00, 23 May 2014
What is surest way to
reduce energy consumption?
Have a recession!
7%
6%
5%
4%
3%
2%
1%
0%
!1%
!2%
40%%
30%%
25%%
20%%
15%%
10%%
5%%
0%%
GDP$Growth$Rate$[%/year]$
35%%
!5%%
!10%%
1980%
1990%
2000%
2010%
2020%
US Energy Consumption
120"
Energy'Consump.on'[1015'BTU/year]'
Energy$Consump:on$[1015$BTU/year]$
ZA Energy Consumption
100"
80"
60"
40"
20"
0"
1973
Stagflation
1940"
Early
1980s
1960"
.com
collapse
1980"
Great
Recession
2000"
2020"
Challenges to
Energy Efficiency (EE)
•  High capital cost
•  Organizational boundaries
•  Energy savings lost
Capability Trap
•
•
•
•
Organizations lack slack
EE adds to existing workload
EE benefits consumed by cost cutting
Long payback times (5 years is too long)
•  Therefore, EE not pursued
•  Therefore, EE capabilities are not developed
http://jsterman.scripts.mit.edu/docs/Sterman%20Stumbling%20towards%20Sustainability%20131111.pdf
Rebound Effect
Leakage!
Energy
Efficiency
Intervention
Monetary
Savings
Other
Purchases
Additional
Energy
Demand
in the
Economy
Unintended consequence:
Save less energy than you thought!
Green Revolving
Funds Provide
•
•
•
•
•
Funding mechanism for EE
Centralization of EE activities
Tracking and publicity for EE
A way to avoid the “Capability Trap”
A possible way around the rebound effect
Green Revolving Funds
Seed Money
GRF
Project Capital
Energy Cost
Savings
Efficiency
Project
Efficiency
Project
Efficiency
Project
Calvin College
Where in the World is
Calvin College?
Main
Campus
Ecosystem
Preserve
East
Campus
Institutional Context
•  Comprehensive Liberal
Arts institution
•  Founded in 1876 by Dutch
Calvinist immigrants
•  4000
students
•  ENGR
Dept.
•  Phys. Plant (Facilities)
Liberal Arts Context
Big questions are the lifeblood of
liberal arts education with its
emphasis ... [o]n the connections
between the disciplines. Liberal arts
education, at its best, goes beyond
simply knowing ... and acquiring
competence in some field.
(Curry, Heffner, and Joldersma, 2007)
http://en.wikipedia.org/wiki/Image:Septem-artesliberales_Herrad-von-Landsbert_Hortusdelicaiarum_1180.jpg
What would it take…?
Statement on
Sustainability
Goal: To raise the level of
environmental and sustainability
discussions in the campus
community.
Teaching
Purchasing and Admin. Services
Solid Waste Reduction & Recycling
Energy Purchasing
Water & Wastewater
Hazardous Materials
Transportation
Food & Food Serv.
Grounds & Land Use
Building Construction
Site Planning
Investment Policies
Outreach
Solid Waste and
Recycling
#1!
#13!
#2!
#3!
#12!
Calvin
Statement on
Sustainability
#11!
#5!
#6!
#8!
#7!
“Establish a waste reduction ethic
in all areas.”
#4!
#10!
#9!
Waste
Seek to recycle at least 50% of
campus waste stream.
Energy
#1!
#13!
#
3!
#12!
#4!
Calvin
Statement on
Sustainability
#11!
We continually investigate new
technologies for improved
#2!
#10!
#5!
#9!
#6!
#8!
#7!
energy systems and more
efficient use of energy
resources.
Energy
Promote linkage between energy
conservation efforts and
programs to reduce carbon
dioxide emissions and
contributions to global warming.
Energy Efficiency
#1!
#13!
#
3!
#12!
#4!
Calvin
Statement on
Sustainability
#11!
We continually investigate new
technologies for improved
energy systems and more
#2!
#10!
#5!
#9!
efficient use of energy
resources.
Energy
Promote linkage between energy
conservation efforts and
programs to reduce carbon
dioxide emissions and
contributions to global warming.
#6!
#8!
#7!
Calvin Energy
Recovery Fund
Calvin Energy
Recovery Fund (CERF)
GRF Feasibility Project
•
What would it take
to implement a
Green Revolving
Fund at Calvin
College?
•  Evaluated 9 potential
energy efficiency
projects
•  Developed fund
governance policies
•  Projected fund
balance
ENGR333
Fall 2008
Potential Projects
CERF Project Analysis
Tech
Group
1
7
1
Light Replacement
2
Motion Sensors
3
Light Harvesting
4
Chapel Airlock
5
Solar Water Heating
6
Forced Computer Shutdown
7
Dorm Heating Tunnel
8
CDH Windows
9
Dorm Hall Lights
5
Tech
Group
9
2
2
1
8
Tech
Group
3
3
6
4
Tech Group 2
Analysis Results
Project Location
4
Chapel –
Chapel Airlock
5
Fieldhouse –
Solar Water
Heating
6
All Campus –
Forced
Computer
Shutdown
1st Year Cost
Savings
[$]
Upfront Costs
[$]
Payback
Period
[yr]
$1 400
$18 000
(±15%)*
11
[therms/yr]
(±10%)
$81 800
$3 530 000
26
348 600
$30 300
$20 600
0
Energy
Savings
1640
[therms/yr]
(+20%/'50)*
98 800
[kWh/yr] (±7%)
Note: All $ amounts are in 2008 values.!
(+5%/'20%)
(±10%)
Policies
CERF Project
Life Cycle
CERF*Account*
Calvin*Budget*
I
Proposer*
VI
II
V
CERF*Interns*
III
CERF*Manager*
Physical*Plant*
IV
Environmental*Stewardship*CommiPee*
$
$
Phases*
VII
I:*Project*Proposal*
II:*Ini>al*Project*Review*
III:*Detailed*Project*Analysis**
IV:*Final*Project*Review*
V:*Project*Implementa>on*
VI:*Project*Ac>ve*Period*
VII:*Project*Hand'off*
CERF Governance
Environmental*Stewardship*CommiPee*
•  Manages
interns
•  2 hrs/week
•
•
CERF*Manager*
CERF*Interns*
•
•
•  Final project approval
•  Allocates finances
•  Members from
finance and physical
plant
•  1 meeting/month
Solicit project suggestions from
the community
Research and assess EE
projects
Updates and proposals to ESC
10 hours/week
•  Advise CERF intern
and CERF Manager
•  ~1–2 hours/year
External*
Consultants*
CERF Project Types
Blue Projects
•
•
Save energy and reduce
CO2 emissions
Short-term financial payback
(≤ 5 years)
Green Projects
•
•
•
Save energy and reduce
CO2 emissions
May not be financially viable
Raise awareness for
sustainability and renewable
energy
CERF Allocation
SEED MONEY!
CERF*
SAVINGS*
*
DIRECT*&*INDIRECT*COSTS*
CONTINGENCY*
~80%*
BLUE*
PROJECTS*
~20%*
GREEN*
PROJECTS*
INTERN*
WAGES*
Finances
Projects to Date
Computer shutdown
Science Building bathroom lighting retrofit
North Hall lighting retrofit
Meeter Center lighting retrofit
Low flow showers
Track & Tennis LED lighting retrofit
North Hall
Lighting Retrofit
North Hall Lighting
$0#
Apr-12#
May-12#
Jun-12#
Jul-12#
Aug-12#
Sep-12#
Oct-12#
Nov-12#
Dec-12#
Jan-13#
Feb-13#
Mar-13#
Apr-13#
May-13#
Jun-13#
Jul-13#
Aug-13#
Sep-13#
Oct-13#
Nov-13#
Dec-13#
Jan-14#
Feb-14#
Mar-14#
Ap
r,
M 12"
ay
,1
Ju 2"
n,
12
Ju "
l,1
Au 2"
g,
1
Se 2"
p,
1
Oc 2"
t,1
No 2"
v,
1
De 2"
c,
1
Ja 2"
n,
1
Fe 3"
b,
1
M 3"
ar
,1
Ap 3"
r,
M 13"
ay
,1
Ju 3"
n,
13
Ju "
l,1
Au 3"
g,
1
Se 3"
p,
1
Oc 3"
t,1
No 3"
v,
1
De 3"
c,
1
Ja 3"
n,
1
Fe 4"
b,
1
M 4"
ar
,1
4"
Energy'Saved'(kWh)'
North Hall Lighting
Total'Monthly'Energy'Savings'for'NH'Project'
14,000"
12,000"
10,000"
8,000"
6,000"
4,000"
2,000"
0"
North Hall Lighting
Total&Monthly&Cost&Savings&for&NH&Project&
$1,400#
$1,200#
$1,000#
$800#
$600#
$400#
$200#
North Hall Finances
•
•
•
•
Initial cost: $57 234
Rebate: $10 446
Savings rate: $11 104/year
Payback time: 4.2 years
Shower Retrofit
1st Gen!
2.0–2.5 gal/min
2nd Gen!
3rd Gen!
~1.2 gal/min
Components of
Shower Retrofit Savings
Total'Monthly'Natural'Gas'Savings'for'
Low:Flow'Showerhead'Project'
Natural'Gas'Savings'(MMBtu)'
Water&Saved&(gal)&
Total&Monthly&Water&Savings&for&Low9
Flow&Showerhead&Project&
90,000"
80,000"
70,000"
60,000"
50,000"
40,000"
30,000"
20,000"
10,000"
0"
Sep013"
Oct013"
Nov013"
Dec013"
Jan014"
Feb014"
Mar014"
100"
80"
60"
40"
20"
0"
Sep+13"
Oct+13"
Nov+13"
Dec+13"
Jan+14"
Feb+14"
Total&Monthly&Sewer&Cost&Savings&for&
Low6Flow&Showerhead&Project&
$400#
$200#
$0#
Sep)13#
Oct)13#
Nov)13#
Dec)13#
Jan)14#
Feb)14#
Mar)14#
Shower Retrofit
Total&Monthly&Cost&Savings&for&Low5Flow&
Showerhead&Project&
$1,400#
$1,200#
$1,000#
$800#
$600#
$400#
$200#
$0#
Sep-13#
Oct-13#
Nov-13#
Dec-13#
Jan-14#
Feb-14#
Mar-14#
Mar+14"
Shower Finances
•
•
•
•
Initial cost: $2 295
Rebate: none
Savings rate: $7 750/yr
Payback time: 0.3 years
Project Extension
2nd&Gen&Showerhead&Flow&Rates&&
5"
Do
Nothing!
4"
Old$Showerhead$Flow$Rates
Average'[gpm]
Previous'Average'[gpm]
#'of'Old'Showerheads'Tested'
Replace!
1.44
1.65
25
Count&
3"
2"
1"
0"
0.8"
0.9"
1"
1.1"
1.2"
1.3"
1.4"
1.5"
1.6"
1.7"
1.8"
1.9"
Flow&Rate&[gpm]&
2"
2.1"
2.2"
2.3"
2.4"
2.5"
More"
Huizenga
Track and Tennis Center
142 Metal Halide Lamps
New LED Fixtures
New LED Fixtures
T&T Finances
•
•
•
•
Initial cost: $154 240
Rebate: $46 176
Savings rate: $23 000/year
Payback time: 4.7 years
Project Progress Tracker
CERF Savings to Date
•
•
•
•
•
679 MWh electricity
663 MMBtu of natural gas
605 566 gallons of water
503 Metric tons of CO2
$56 978.76
If Used by the Typical
Michigan Resident
•
•
•
•
65 years of electricity
8 years of natural gas
30 years of CO2 emissions
18 years of water
US¢/kW-hr
CERF Performance
*Average of peak and off-peak rates
Notes
•  Student involvement throughout
•  Service learning works!
•  Interdisciplinary learning opportunities
•  Fully embedded in college faculty governance
structure
•  Carefully tracking comparable metrics for
energy and CO2
•  Implemented without a sustainability
coordinator
Fundraising
https://www.calvin.edu/support/energy/
~ 3 ¢/kW-hr
Billingsley, M.A., et. al. The Program Administrator Cost of Saved Energy for Utility Customer-Funded Energy Efficiency Programs.
Lawrence Berkeley National Laboratory. March 2014.
Green Billion
Challenge
http://greenbillion.org/wp-content/uploads/2012/11/Greening-the-Bottom-Line-2012.pdf
http://greenbillion.org
http://greenbillion.org/wp-content/uploads/2013/01/GRF_Implementation_Guide.pdf
Response to!
$100k Seeded!
divestment pressure!
from students!
$12M!
Saved $17M since 1996!
Avoid Capability Trap
•  EE analysis done by interns
•  EE savings are protected
•  Long payback times (~5 years) are acceptable
•  Carefully develop EE expertise
GRFs and the
Rebound Effect
Energy
Efficiency
Intervention
Monetary
Savings
Other
Purchases
Additional
Energy
Demand
in the
Economy
What Does It Take…?
•  An account with seed funding
•  Policies
•  Doers
•  A manager
•  Oversight
•  Integrity
•  Fortitude
Financial
Innovation
Two Stories
“We don’t need this.”
“Accounting systems change behavior.”
Further Information
•  CERF Student Project Reports and
Presentations
http://www.calvin.edu/~mkh2
•  Green Billion Challenge http://greenbillion.org
•  Calvin College Statement on Sustainability
http://www.calvin.edu/admin/provost/
environmental/sustainabilitystatement.html
•  mkh2@calvin.edu