Sunday, April 03, 2011

Powering Down in Japan


   Wall Street Journal


A key question for Japan's economy is how much electricity it will have in the peak summer months.
The region around Tokyo, which accounts for 40% of the nation's economy, most of Japan Inc.'s head offices and a third of the population, can barely meet peak demand now. In the event of a hot summer, there may only be enough electricity to supply three-quarters of demand. Shortfalls could last months, or years.
So far, rolling blackouts, conservation, lower industrial demand and spring weather have prevented the situation from turning dire. But the future isn't bright.
First, four of the six reactors at the Fukushima Daiichi nuclear power plant are finished. The other two reactors might be as well simply by association. Other nuclear plants that powered down after the March earthquake and those that were already off line for regular maintenance may struggle to get local political approval to soon fire up again.
Fixing nuclear facility vulnerabilities such as inadequate backup cooling systems as well as earthquake and tsunami-proofing could take years and billions of dollars. And until this month, barely-contained spent uranium fuel pools weren't a focus. They are now.
Plants across Japan are sitting on 13,500 tons of spent fuel, much of that in pools that proved hazardous in Fukushima. Reactors are forecast to generate that much again over the next decade, Japan's Federation of Electric Power Companies said last year.
Four years after a 2007 quake, three of seven reactors in the Kashiwazaki Kariwa nuclear plant operated by Tokyo Electric Power Co. still aren't generating power. In August, two more Kashiwazaki reactors are set to shut down for scheduled maintenance. All told, just the nuclear-power shortfall may mean 23% of TEPCO's generating capacity would be out. That excludes damaged conventional plants, which may not return to use as quickly as the company's optimistic assumptions. Also, any shortfall in electricity or a shortage of rainfall makes it harder to operate pump-type hydroelectric stations.
Other types of generation such as natural gas and oil are used for peak periods, but nuclear plants operate as continuously as possible to meet baseload demand. When it comes to electricity, the heat will be on for the foreseeable future.

Sunday, March 20, 2011

New Yorkers are warming up to solar power thanks to Con Edison's program


BY Mike Jaccarino

Sunday, March 20th 2011, 4:00 AM

Con Edison says 144 customers in the city installed the panels last year, up threefold from 2009.
Gentner/AP
Con Edison says 144 customers in the city installed the panels last year, up threefold from 2009.

Con Edison's solar-panel program is turning more New Yorkers into sun worshipers - and helping them cut their power bills. The utility says 144 customers in the city installed the panels last year, up almost threefold from 2009.  There are now 273 customers in the five boroughs converting sun power into electricity, saving some green while going green. "It's a win for everybody," said Staten Islander Nicholas LaMonica, 68, who put 36 2-by-4-foot panels atop his two-family home in September. "I save money. The environment gets less carbon dioxide, and Con Ed has less peak demand. It's a no-brainer."

The panels absorb the sun's rays and convert heat into direct-current electricity. An inverter changes the DC power into the alternating-current variety used by appliances and air conditioners. If customers produce excess power, they sell it back to Con Ed for cash and credits. If they need more, the system taps into Con Ed's grid. "It's been a great thing," said Cliff Blaker, 40, president of Miller Blaker, a South Bronx woodworking company that paid $250,000 for 200 panels on its two-story building in 2009.
With a 40% reduction in the company's power bills in 2010, Blaker estimates it will take five years to recoup the installation cost - all while giving Mother Nature a big hand.  Like the others, Blaker's system tallies the carbon dioxide kept out of the air: 67,000 pounds in 2010, equivalent to what 1,400 mature trees consume annually.
"How can you argue with that?" said Blaker. "It's a wonderful thing."
LaMonica leveraged tax breaks and rebates for solar customers to lower the $52,000 installation tab to less than $10,000. The New York Energy Research and Development Authority gave him $16,000 that went directly to the installer. Uncle Sam gave him a 30% tax credit on the remaining $36,000. The state ponied up a 25% tax credit of up to $5,000, and the city handed him a 35% credit on his property taxes over four years, he said. With his 2010 power bills only 25% of what they were in 2009, he said, "I'll make it all back in four years. It's so good, I'm getting my daughter to do it on her house on Staten Island, too."
Margarett Jolly, a Con Ed solar specialist, said the utility is hoping to sell more customers on the panels. "We have a ways to go, but there's a lot of potential in the city," she said.
http://www.nydailynews.com/ny_local/2011/03/20/2011-03-20_city_homeowners_warming_up_to_solar_power.html#ixzz1HCQJ508X

Saturday, February 19, 2011

KB Home to lure buyers with energy bill savings

By Alex Veiga 

Updated: 02/18/2011 10:03:56 PM PST

LOS ANGELES -- Homebuilders say one of the biggest advantages of buying a newly built home is energy efficiency. However, some of the ways that builders make homes burn less cash might not be as recognizable to buyers as say, kitchen appliances, generous closets and bathroom amenities. So now some builders are boiling energy efficiency down to something every buyer understands: money.
Last week, Los Angeles-based builder KB Home began giving prospective homebuyers an estimate upfront of what their monthly gas and electric bill will be if they buy one of the company's homes. The estimate label clearly shows buyers where the home ranks on an energy efficiency scale. Houston-based McGuyer Homebuilders earlier this month began providing customers with estimates of what the annual heating and cooling portion of their utility bills will be on homes in the company's Dallas market. If buyers end up paying more, McGuyer promises to reimburse them for the difference in the first two years.
The strategy comes as homebuilders grapple with fierce competition from existing homes on the market, particularly sharply discounted foreclosed properties. Sales of new homes, which make up a fraction of overall home sales, sank last year to the lowest level since at least 1963. New homes, many bristling with energy-efficient features, often are priced at a premium to older homes. That can be a deal-breaker for buyers expecting to see bargain-priced properties as
the housing downturn enters its fifth year.
But builders are betting that breaking out utility bill savings in black and white will persuade buyers to consider a newly built home.
"It's the biggest purchase decision that people are making at that time in their lives, and typically they have no idea what it's going to cost to truly own the thing until they've been there for several months," said Jeffrey Mezger, KB Home's president and CEO. "It's a cost of homeownership that hasn't been out there."
The building industry has been good at explaining the technology inside a home and behind the walls, but not at clearly showing buyers how it all translates to lower utility bills, says Nate Kredich, vice president of residential market development at the U.S. Green Building Council. This new approach by KB and other builders is similar to what automakers have done for years with miles-per-gallon labels, and it's helped make fuel-efficient cars more popular.
"The model is there," Kredich says, "but homes are significantly more complex than automobiles."
KB's Energy Performance Guide draws its utility cost estimates from a home's ranking on the Home Energy Rating System (HERS) Index, which is regarded as an industry standard for calculating energy efficiency. The lower the score -- which also is displayed on the label -- the lower its projected energy costs.
A typical new home will garner a score of 100 on the index, while Energy Star qualified homes will typically rank at about 85. Resale homes typically fare around 130 on the scale.
What does that mean in terms of dollars and cents? The difference between a score of 80 and 130 could amount to seeing one's energy bill double, KB's Mezger says.
A Department of Energy program that launched in 2009 has been issuing certificates to builders whose homes achieve a HERS score of 70 or less. The builders also get the right to display the department's EnergySmart Home Scale label. Like KB's, it features the home's HERS score and an estimated average monthly energy bill.
The program has issued certificates on more some 5,500 homes, most of them newly built, said George James, the program's project manager.
KB, which builds homes to order, said it will provide both an initial HERS ranking and energy bill estimate when a buyer selects the type of home they want to purchase. An independent energy rater then inspects the home once it's built, and the homebuyer will receive an updated estimate and HERS ranking.
The HERS rankings and monthly energy bill estimates can vary among KB's homes, depending on size and the part of the country they're in.
And just as with cars' fuel efficiency estimates, how a buyer uses a home can raise or lower the energy bill projections provided by KB. Leaving the lights on all day or setting a thermostat too high in the winter or too low in the summer will skew energy costs.
For that reason KB doesn't guarantee any specific level of gas and electric utility costs, though it says the HERS rating it advertises to buyers will be exact.

Thursday, January 27, 2011

New Push for congestion pricing? Not from City Hall


Wall Street Journal




Bloomberg News
Traffic on the Robert F. Kennedy Bridge in New York City.
New York City Mayor Michael Bloomberg still strongly supports the idea of charging motorists to enter the most congested parts of Manhattan. Just don’t expect him to re-launch another effort to get the controversial, revenue-generating proposal approved in Albany any time soon.
“I happen to think it makes some sense, but I’m going to stay out of it,” Bloomberg said at a news conference Wednesday afternoon. “We’ve done everything we can.”
In 2007 Bloomberg pledged to “fight like heck” to get the state Legislature to approve a congestion-pricing plan that would have charged motorists $8 to enter Manhattan anywhere below 86th St. between 6 a.m. and 6 p.m. on weekdays.
The mayor, true to his word, aggressively lobbied for the proposal. But ultimately lawmakers in Albany rejected the measure, dealing Bloomberg one of the most high-profile defeats of his tenure as chief executive of the nation’s most populous city.
Responding to questions about a Daily News story suggesting a renewed effort to pass some form of congestion pricing, Bloomberg on Wednesday joked sarcastically, “What a clever idea! My God, how did they think of that?”
“Just think about how much better off we would have been today if five years ago, or thereabouts, the Albany Legislature” moved forward with the proposal, Bloomberg added. “You want to dissuade people from driving because the streets are clogged. We are never going to have more streets. So, you have to have fewer cars,” he said. “You can only have fewer cars if you have better mass transit, so that people have alternatives that are cost effective and pleasurable and more efficient.”
The money generated from charging motorists was to be directed toward improving mass transit. Despite his interest, Bloomberg said supporters of the concept shouldn’t count on him to lead the charge this time.
“We’re not working on it,” he said. “This is up to Albany. Talk to Albany.”
A City Hall aide confirmed Wednesday there is currently nothing concrete on the table and said the mayor would not actively lend support to congestion pricing again without a politically viable proposal.

Friday, December 24, 2010

New cars in Beijing cut by two-thirds to battle traffic


New rules have taken effect in China that restrict car purchases in an effort to combat serious traffic problems in the capital, Beijing.
City authorities will allow only 240,000 vehicles to be registered for 2011 - one-third of this year's total. Car buyers have been swamping dealers in anticipation of the new rules, which will still leave about five million cars on the road in the capital. Traffic and air pollution in Beijing is among the worst in the world.
Beijing officials are trying to balance the desire of a growing middle class to have the convenience and status of car ownership, with a huge congestion problem.
Officials said the new rules would not solve the full extent of the city's problems, only slow the down the rate at which they are worsening. "It will be difficult to dramatically improve the traffic situation in a short time," said Liu Xiaoming, deputy director of the Beijing Traffic Management Bureau. "But it can slow down the pace of worsening traffic congestion."
Car registrations will be allocated by a license plate lottery system from Friday. Under the new rules, government departments will not be allowed to increase the size of their fleets for five years.
About 750,000 new cars appeared on Beijing's streets this year, raising the total of registered vehicles for the city 4.8m. China overtook the US as the world's biggest car and van market in 2009, with 13.6 million vehicles sold within the country.
Scepticism
Nearly 90% of the new licence plates will be allocated for residents; people driving cars into Beijing from other areas will need permits to do so. The authorities have delayed the imposition of a congestion charge - a fee for cars to enter specified zones - saying the idea needed more study.
In anticipation of the new ruling, 30,000 new vehicles were registered in the past week, at least three times the normal rate, Xinhua state news agency reported. "I heard that they were going to change the policy, so I wanted to buy this [car] before the year was over," one buyer, Mr Yang, told the BBC. "We rushed to buy a car, because I need it for work. But it will be really inconvenient for me to drive a car when the streets become so congested," he said.
There remains a high level of scepticism about how well the new measures will work however. Yang Ailun of Greenpeace China told the BBC that the restrictions had come far too late. "We definitely welcome any kind of policies that try to reduce air pollution and control cars. However, the problem is that it comes too late.
"Everything in China now happens so quickly, and the government always fails to anticipate what's coming, and as a result normally policies are only introduced when things are already out of control."
Residents say that Beijing's roads sometimes resemble car parks. A record 140 traffic jams were recorded on one evening in September. A spectacular 120km (75-mile) long traffic jam formed on the Beijing to Tibet route in early September, only a week after another 100km (62-mile) jam had been cleared in the same area.

Saturday, December 11, 2010

BEYOND FOSSIL FUELS

Using Waste, Swedish City Cuts Its Fossil Fuel Use

Johan Spanner for The New York Times
As part of its citywide system, Kristianstad burns wood waste like tree prunings and scraps from flooring factories to power an underground district heating grid. 
KRISTIANSTAD, Sweden — When this city vowed a decade ago to wean itself from fossil fuels, it was a lofty aspiration, like zero deaths from traffic accidents or the elimination of childhood obesity.
But Kristianstad has already crossed a crucial threshold: the city and surrounding county, with a population of 80,000, essentially use no oil, natural gas or coal to heat homes and businesses, even during the long frigid winters. It is a complete reversal from 20 years ago, when all of their heat came from fossil fuels.
But this area in southern Sweden, best known as the home of Absolut vodka, has not generally substituted solar panels or wind turbines for the traditional fuels it has forsaken. Instead, as befits a region that is an epicenter of farming and food processing, it generates energy from a motley assortment of ingredients like potato peels, manure, used cooking oil, stale cookies and pig intestines.
A hulking 10-year-old plant on the outskirts of Kristianstad uses a biological process to transform the detritus into biogas, a form of methane. That gas is burned to create heat and electricity, or is refined as a fuel for cars.
Once the city fathers got into the habit of harnessing power locally, they saw fuel everywhere: Kristianstad also burns gas emanating from an old landfill and sewage ponds, as well as wood waste from flooring factories and tree prunings.
Over the last five years, many European countries have increased their reliance on renewable energy, from wind farms to hydroelectric dams, because fossil fuels are expensive on the Continent and their overuse is, effectively, taxed by the European Union’s emissions trading system.
But for many agricultural regions, a crucial component of the renewable energy mix has become gas extracted from biomass like farm and food waste. In Germany alone, about 5,000 biogas systems generate power, in many cases on individual farms.
Kristianstad has gone further, harnessing biogas for an across-the-board regional energy makeover that has halved its fossil fuel use and reduced the city’s carbon dioxide emissions by one-quarter in the last decade.
“It’s a much more secure energy supply — we didn’t want to buy oil anymore from the Middle East or Norway,” said Lennart Erfors, the engineer who is overseeing the transition in this colorful city of 18th-century row houses. “And it has created jobs in the energy sector.”
In the United States, biogas systems are rare. There are now 151 biomass digesters in the country, most of them small and using only manure, according to the Environmental Protection Agency. The E.P.A. estimated that installing such plants would be feasible at about 8,000 farms.
So far in the United States, such projects have been limited by high initial costs, scant government financing and the lack of a business model. There is no supply network for moving manure to a centralized plant and no outlet to sell the biogas generated.
Still, a number of states and companies are considering new investment.
Last month, two California utilities, Southern California Gas and San Diego Gas & Electric, filed for permission with the state’s Public Utilities Commission to build plants in California to turn organic waste from farms and gas from water treatment plants into biogas that would feed into the state’s natural-gas pipelines after purification.
Using biogas would help the utilities meet requirements in California and many other states to generate a portion of their power using renewable energy within the coming decade.
Both natural gas and biogas create emissions when burned, but far less than coal and oil do. And unlike natural gas, which is pumped from deep underground, biogas counts as a renewable energy source: it is made from biological waste that in many cases would otherwise decompose in farm fields or landfills and yield no benefit at all, releasing heat-trapping methane into the atmosphere and contributing to global warming.
This fall, emissaries from Wisconsin’s Bioenergy Initiative toured German biogas programs to help formulate a plan to develop the industry. “Biogas is Wisconsin’s opportunity fuel,” said Gary Radloff, the initiative’s Midwest policy director.
Like Kristianstad, California and Wisconsin produce a bounty of waste from food processing and dairy farms but an inadequate supply of fossil fuel to meet their needs. Another plus is that biogas plants can devour vast quantities of manure that would otherwise pollute the air and could affect water supplies.
In Kristianstad, old fossil fuel technologies coexist awkwardly alongside their biomass replacements. The type of tanker truck that used to deliver heating oil now delivers wood pellets, the major heating fuel in the city’s more remote areas. Across from a bustling Statoil gas station is a modest new commercial biogas pumping station owned by the renewables company Eon Energy.
The start-up costs, covered by the city and through Swedish government grants, have been considerable: the centralized biomass heating system cost $144 million, including constructing a new incineration plant, laying networks of pipes, replacing furnaces and installing generators.
But officials say the payback has already been significant: Kristianstad now spends about $3.2 million each year to heat its municipal buildings rather than the $7 million it would spend if it still relied on oil and electricity. It fuels its municipal cars, buses and trucks with biogas fuel, avoiding the need to purchase nearly half a million gallons of diesel or gas each year.
The operations at the biogas and heating plants bring in cash, because farms and factories pay fees to dispose of their waste and the plants sell the heat, electricity and car fuel they generate.
Kristianstad’s energy makeover is rooted in oil price shocks of the 1980s, when the city could barely afford to heat its schools and hospitals. To save on fuel consumption, the city began laying heating pipes to form an underground heating grid — so-called district heating.
Such systems use one or more central furnaces to heat water or produce steam that is fed into the network. It is far more efficient to pump heat into a system that can warm an entire city than to heat buildings individually with boilers.
District heating systems can generate heat from any fuel source, and like New York City’s, Kristianstad’s initially relied on fossil fuel. But after Sweden became the first country to impose a tax on carbon dioxide emissions from fossil fuels, in 1991, Kristianstad started looking for substitutes.
By 1993, it was taking in and burning local wood wastes, and in 1999, it began relying on heat generated from the new biogas plant. Some buildings that are too remote to be connected to the district heating system have been fitted with individual furnaces that use tiny pellets that are also made from wood waste.
Burning wood in this form is more efficient and produces less carbon dioxide than burning logs does; such heating has given birth to a booming pellet industry in northern Europe. Government subsidies underwrite purchases of pellet furnaces by homeowners and businesses; pellet-fueled heat costs half as much as oil, said Mr. Erfors, the engineer.
Having dispensed with fossil fuels for heating, Kristianstad is moving on to other challenges. City planners hope that by 2020 total local emissions will be 40 percent lower than they were in 1990, and that running the city will require no fossil fuel and produce no emissions at all.
Transportation now accounts for 60 percent of fossil fuel use, so city planners want drivers to use cars that run on local biogas, which municipal vehicles already do. That will require increasing production of the fuel.
Kristianstad is looking into building satellite biogas plants for outlying areas and expanding its network of underground biogas pipes to allow the construction of more filling stations. At the moment, this is something of a chicken-and-egg problem: even though biogas fuel costs about 20 percent less than gasoline, consumers are reluctant to spend $32,000 (about $4,000 more than for a conventional car) on a biogas or dual-fuel car until they are certain that the network will keep growing.
“A tank is enough to get you around the region for the day, but do you have to plan ahead,” Martin Risberg, a county engineer, said as he filled a biogas Volvo.

Thursday, December 09, 2010

City Council hears sides of bike lane battle

December 9, 2010

City Council Hears Sides of Bike Lane Battle

The Brooklyn borough president, Marty Markowitz, sang a self-written song about bicycle lanes to the tune of a popular selection from “The Sound of Music”: “These are a few of my favorite lanes.” A 40-year resident of Park Slope, Brooklyn, testified that an influx of cyclists had made her afraid to cross the street in front of her house. A group of cycling advocates wondered why the city would reject a nimble, environmentally friendly mode of transportation in favor of bulky, polluting automobiles.
The battle of the bike lanes, a civic discussion that has turned increasingly contentious and common at community boards and dinner tables throughout New York, made its way to the City Council on Thursday. The theatrics seemed to survive the transition.
Dueling protests, vicious invective from both sides and good old New York-style kvetching have been hallmarks of the bicycle debate since the Bloomberg administrationbegan installing hundreds of miles of bicycle-only lanes throughout the city.
Thursday’s oversight hearing was the first time that Janette Sadik-Khan, the city’s transportation commissioner, sat for formal questioning from city politicians about the implementation and enforcement of the ambitious new cycling network she has been overseeing.
“Nobody disagrees that using more bicycles is a good thing, but in a city where traffic is horrendous and finding a parking space is difficult, bike policy is all about trade-offs,” said James Vacca, the chairman of the Council’s transportation committee, as he introduced the hearing.
But Ms. Sadik-Khan firmly defended her department’s actions, countering a barrage of questions from council members who were irritated and enraged about the subject.
“While there are inevitable growing pains as cycling moves from the margins to the mainstream, its growth in New York is already delivering substantial safety, mobility and health dividends,” Ms. Sadik-Khan said. “The city’s bicycle program, with your assistance and support, is a huge success.”
The discussion touched on topics like the proper regulation of conduct on the road (Ms. Sadik-Khan said she planned a major advertising campaign featuring celebrities who would warn cyclists “to stop riding like jerks”) and whether the city had sufficiently solicited the views of people in communities where bicycle lanes have been installed (the commissioner said yes; several council members said no).
Advocates argued that the lanes encourage a safer, more environmentally friendly mode of transportation while making the city safer for pedestrians. “You’ve got to lay the tracks before you run the train,” said Noah Budnick, a deputy director at Transportation Alternatives, a cycling and pedestrian advocacy group.
Opponents lamented the loss of parking spaces and traveling lanes for automobiles, as well as complaining about what they labeled an imperious approach by city officials.
Jessica Lappin, a councilwoman from the Upper East Side, has introduced a bill that would require the Transportation Department to release detailed information about traffic accidents, including a count of those involving bicycles. Transportation officials have said the Police Department keeps the data, and Ms. Sadik-Khan testified that she had not yet read the bill, an assertion that Ms. Lappin seemed to doubt.
“I will tell my staff that despite our negotiations, I guess the top of the agency is not engaged,” Ms. Lappin said after her questioning of Ms. Sadik-Khan.
In her remarks, Ms. Sadik-Khan emphasized that she believed bicycle lanes provided significant improvements to street safety, and offered statistics showing fewer pedestrian injuries and a slower flow of traffic where lanes had been installed.
But when asked by Mr. Vacca how many people in the city ride bicycles every day, Ms. Sadik-Khan could not immediately produce an absolute number. Mr. Vacca said he was surprised that the city would engage in a large-scale change to the city’s roads without a more precise count of how many New Yorkers might use it.
“We don’t have the number of cars in the street, either,” Ms. Sadik-Khan replied.
Mr. Vacca responded: “Maybe we should have those numbers, too.”
(Officials later cited a survey from 2007 that showed about 500,000 New Yorkers identified themselves as regular cyclists.)

Wednesday, December 08, 2010

San Francisco completes massive solar project

The Associated Press

Updated: 12/07/2010 09:11:09 PM PST



SAN FRANCISCO—San Francisco is now home to what city officials say is California's largest municipal solar installation.
Mayor Gavin Newsom on Monday announced the completion of the Sunset Reservoir Solar Project, which has almost 24,000 solar panels covering an area the size of 12 football fields.
Officials say the installation generates 5 megawatts of renewable energy daily, more than tripling the amount of solar power used by the San Francisco government.
The San Francisco Public Utilities Commission will buy the electricity from Recurrent Energy, which built, owns and operates the project.
Officials say the Sunset Reservoir will help the city move toward its goal of generating all of its electricity from renewable sources by 2020.

'Green deal' for energy efficient homes begins parliamentary journey


Bill provides homeowners with up to £6,000 for insulation and places legal obligations on power companies to cut emissions
Loft insulation for a better energy conservation
The government estimates that 14m of the UK’s 27m homes would benefit from cavity, solid wall or loft insulation. Photograph: Graham Turner for the Guardian
A flagship coalition policy to provide homeowners with thousands of pounds to make their properties more energy-efficient will be introduced to parliament today.
The energy security and green economy bill is expected to place legal obligations on power companies to cut the greenhouse gas emissions in their customers' homes. It is expected to allow the companies to offer incentives, such as holidays abroad, to encourage take-up of the "green deal" loans.
Chris Huhne, the secretary of state for energy and climate change, has signalled that other incentives to install energy-saving measures may include rebates on council tax bills or, in future, reductions in the stamp duty paid by homebuyers. Huhne has been working on the incentives with Downing Street's so-called "nudge unit" – the behavioural insight team.
Tesco, B&Q and Marks & Spencer are among the big brands that have held talks with the government about delivering the green deal, along with energy companies. The green deal is likely to see billions of pounds lent every year and to create new jobs. The government estimates that 14m of the UK's 27m homes would benefit from cavity, solid wall or loft insulation.
The energy used for heating rooms and water in the nation's buildings generates about 33% of the UK's carbon emissions and must be cut by 20% if the government is to meet its legally binding emissions targets. On Tuesday, the government's official advisers, the Committee on Climate Change, said a green deal that vastly improved home energy efficiency was one of the three key tests of the coalition's pledge to be the "greenest government ever", alongside delivering low-carbon energy and implementing ambitious targets for emissions cuts.
The Department for Energy and Climate Change (Decc) has indicated that a "golden rule" will apply to the loans made for energy-efficiency measures which dictates that the cost of the loan repayments will always be lower than the fuel bill savings delivered. The more expensive measures, such as solid wall insulation, appear by thegovernment's own figures to break the golden rule. But the new bill is expected to use powers from the Carbon Emissions Reduction Target – and possibly its expected 2013 replacement, the Energy Company Obligation (ECO) – to make energy suppliers balance the books.
The government hopes the green deal will allow householders without the money to fund energy-efficiency measures to gain access to upfront capital, expected to be capped at about £6,000. Those renting may get the power after 2015 to force landlords to install energy-efficiency measures. The green deal loans made are expected to be legally attached to the property, not the owner. This would mean that someone thinking about moving home would not be deterred from taking up the scheme by the prospect of not benefiting from the savings delivered by the work.
Campaigners have expressed concern that the involvement of private sector companies could make the scheme more expensive. They also insist that any incentives given – such as holidays – must not cancel out the emissions savings. Another concern is that without a robust quality assurance system and guarantees, householders may fear poor work carried out by "cowboy" builders.