The Leadership Challenge for Utilities Irene M Stillings

The Leadership Challenge for Utilities Irene M. Stillings California Center for Sustainable Energy MEC 2011 www. energycenter. org

About CCSE • • Independent non- profit 501 (c)(3) organization Focus Areas: Energy Efficiency, Renewable Energy, Transportation Energy, Climate Change Funding: utility ratepayers, California Energy Commission, US Department of Energy, California Air Resources Board, foundation grants, private donations Governed by Board of Directors / 75 employees / $40 mm restricted funds Core activities: program administration, clean energy tech assistance, training & education, policy support • • • We promote the adoption of sustainable policies and practices to ensure clean energy for all generations • We provide the education, resources and tools that allow you to make wise decisions about your energy use 2 www. energycenter. org

California Solar Initiative (CSI) Total Solar Installed 924 MW at end 2010 • CSI goal to install 1, 940 MW of rooftop solar 2007 -2016 • Up-front and per KWh incentives from $2. 2 b budget • 506 MW installed under CSI as of Apr 2011 • 416 MW installed under pre-CSI programs 3 www. energycenter. org

Big Solar • • CEC approved 8 projects for 3, 528 MW in 2010 BLM approved 5 projects for 2, 374 MW in 2010 In 2011 9 projects for 3, 705 MW eligible for ARRA Transmission lines under construction to bring solar power to population centers 4 www. energycenter. org

RPS, TRECs, NEM, FIT, AB 32 • • • 5 RPS of 33% by 2020 TRECs authorized for RPS compliance CARB adopted Cap-and Trade Increasing calls for a FIT Self Generation Incentive Program (SGIP) State energy policy mandates “loading order” of energy efficiency, demand response, renewable energy, transmission and base load power plant www. energycenter. org

Clean Transportation • Statewide rebate program – CVRP • CA sales of 14, 400 EV in 2011, 366, 000 by 2012 • 20% statewide EV sales occur in San Diego; 34% are solar charged • WHY? • Developed charging station infrastructure • Green minded early adopters • High gasoline prices 6 www. energycenter. org

So what’s the problem? • • • 7 Dysfunctional federal government No national energy policy Fragmented state government Near bankrupt state, federal and local governments Stagnant economy Political paralysis Polarized populace Exhausted, stressed, fearful consumers High costs, government mandates, etc…. . www. energycenter. org

Consumer Angst • Surveys show overwhelming majority of citizens want to protect the environment and “save” the planet – but…… • Most people are too stressed, exhausted, consumed with survival in today’s economy to take action • Want utility to protect the planet, but make sure my power doesn’t go off – and angry about high CEO salaries! • Customers do not know and do not understand, yet utilities under communicate, under educate and fail to engage the customer 8 www. energycenter. org

National Competitive Advantage “The United States and other countries need an entirely new way of thinking about the relationship between environment and industrial competitiveness – one closer to the reality of modern competition … success must involve innovation-based solutions that promote both environmentalism and industrial competitiveness. ” Michael Porter 9 www. energycenter. org

Megatrends in Business: • The 70 s and 80 s: Quality • The 90 s and 00 s: Innovation • The next big megatrend is Sustainability 10 www. energycenter. org

Corporate Competitive Advantage A 2010 UN – Accenture CEO Study* reports that the overwhelming majority of corporate CEOs – 93 percent – say that sustainability will be critical to the future success of their companies. *results from on-line survey of 766 CEOs around the globe and interviews with 50 of the world’s leading CEOs 11 www. energycenter. org

Definition of Sustainability: “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. ” Brundtland Report 12 www. energycenter. org

Sustainability means living and working as if you really believe there is a tomorrow 13 www. energycenter. org

Elements of Sustainability Behavioral Change Economy Energy & Power Food Security Protected Areas Gender Equality Human Development Natural Resources Transportation Urban Design 14 www. energycenter. org

Energy and Power Redefining Electric Power Conversion Transphorm has developed a cost-efficient and easy-to-embed power conversion system that can reduce energy losses by up to 90% by significantly minimizing heat waste. Artificial leaf transforms sun to energy In mimicking what plants do best, a group of MIT chemists led by Dr. Dan Nocera has developed the first artificial leaf that can feasibly convert sunlight and water to energy in an affordable and accessible way. 15 Harvesting Energy from Highways Researchers at Innowattech and Technion Institute of Technology in Haifa, Israel have discovered a new way to generate clean energy by converting the mechanical energy www. energycenter. org from highways and railroads into electricity.

Behavior Change Billionaires Pledge Wealth to Philanthropy The Giving Pledge invites America’s wealthiest families and individuals to make a moral commitment to donate a majority of their wealth to charitable causes during their lifetime or after their death. Empowering South African Communities My Arms Wide Open Foundation empowers the women and children of South Africa to break the chains of poverty through education, sustainable communities and socially responsible businesses 16 ‘Green Challenges’ for Greener Habits VERDEate. com is an online movement that uses social media to promote greener habits by allowing participants to accept or create Green Challenges—specific acts to reduce their CO 2 emissions as part of a collective effort to combat www. energycenter. org climate change.

Transportation The World’s Most Fuel-Efficient Car With a fuel consumption of 261 mpg, the Volkswagen XL 1 aims to redefine the automobile industry by becoming the world’s most fuel-efficient hybrid car. Project Brief: Synthetic Jet-Fuel Sasol just became the world’s first producer of a fully synthetic fuel-powered passenger plane. It’s maiden flight: Johannesburg to Cape Town in South Africa. 17 Revolutionizing Airport and Urban Transportation Passengers at London’s Heathrow Airport can now board their personal ULTra PRT pod and go straight to their destination without worrying about long waits for an airport www. energycenter. org bus, gridlocked traffic or their carbon footprint.

Corporate Competitive Advantage A 2010 UN – Accenture CEO Study* reports that the overwhelming majority of corporate CEOs – 93 percent – say that sustainability will be critical to the future success of their companies. *results from on-line survey of 766 CEOs around the globe and interviews with 50 of the world’s leading CEOs 18 www. energycenter. org

What does the energy industry do? • Utilities uniquely positioned to be leaders in drive towards sustainability • Can you manage & balance consumer, community and stockholder needs? • Can you – will you - take leadership? 19 www. energycenter. org

Collaboration is Key “I not only use all of the brains I have, but all I can borrow” -Woodrow Wilson, 28 th President of the United States 20 www. energycenter. org