Climate Changing on Energy Efficiency

Some 40 experts from the HVAC/R industry, U.S. Senate and several federal agencies discussed the global energy situation at the fourth Danfoss EnVisioneering Symposium, “Energy Efficiency Investment and the Emerging Global Cost Paradigm,” held April 17 in Washington, D.C. The symposium touched on a variety of complex energy issues, from global warming and the future of power prices,...

05/01/2007


Some 40 experts from the HVAC/R industry, U.S. Senate and several federal agencies discussed the global energy situation at the fourth Danfoss EnVisioneering Symposium, “Energy Efficiency Investment and the Emerging Global Cost Paradigm,” held April 17 in Washington, D.C. The symposium touched on a variety of complex energy issues, from global warming and the future of power prices, to the cost of raw materials and labor, to selling energy efficiency into the developing world, most notably China.



David Shin, chief economist and director of statistics for the American Gas Assn.

“The impact of the global energy situation on our industry is significant,” said John Galyen, president of Danfoss Refrigeration & Air-Conditioning North America. “Global raw material and labor costs are rising, spurred on by intense development efforts in countries like China and India. These cost pressures will further burden energy efficiency technologies that were already struggling with a first-cost driven demand.”

Other highlights from the symposium included:

Michael Goo, majority counsel for the U.S. Senate Environment and Public Works Committee, addressed global warming and U.S. policy. He noted that the committee already has held several hearings to help key decision-makers understand the scope and magnitude of global warming. In fact, he predicted that the U.S. Congress will pass substantial global warming legislation over the next two to four years.

On the topic, “The Future of Power Prices,” Roger Kranenburg, director of the Edison Electric Institute, and David Shin, chief economist and director of statistics for the American Gas Assn., discussed short- and long-term trends. Shin anticipates that liquified natural gas (LNG) will help “fill the gap between demand and supply from now until 2020.”

Martin Regalia, vice president and chief economist for the U.S. Chamber of Commerce, noted that the economic impact of the global energy situation will be significant in coming years. Its impact will be strongly felt in the raw materials and labor markets as well as specific energy markets. “There is definitely going to be a shift away from carbon-based fuels,” he noted. “That will be a long-term trend.”


Jean Lupinacci, chief of the ENERGY STAR Commercial and Industrial Branch, U.S. EPA.

Rachael Halpern, energy and environmental industries trade specialist for the U.S. Commerce Department, and Jean Lupinacci, chief of the ENERGY STAR Commercial and Industrial Branch with the U.S. EPA, tackled the topic “Who Uses Power, and Managing Its Hidden and Future Costs.” Lupinacci noted that EPA recently joined the U.S. Dept. of Energy, energy regulators, utilities and other influencers to begin work on a National Action Plan for Energy Efficiency. “How to make energy efficiency the fifth fuel (is the goal),” she said.

On the topic “Selling Energy Efficiency Technology into the Developing World,” symposium attendees heard from Donald Forest, managing director of Sierra Asia, and Catherine Vial, team leader for environmental industries with the U.S. Commerce Department. Forest, who lived in China for more than seven years, said that county is trying to shift away from its reliance on coal, which accounts for two-thirds of its energy production. He predicted that, over the next five years, China will invest $150 billion to $200 billion in private and public funds to improve the environment and promote energy efficiency. “There's a new (energy) paradigm in China,” Forest said. “China has turned the corner.”





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