I liked a quote in a recent piece by Lovins: "I used to work for 
Edwin Land, the father of Polaroid photography. Land said that 
invention was the sudden cessation of stupidity. He also said that 
people who seem to have had a new idea often have just stopped having 
an old idea." I keep saying it's not an open mind you need so much as 
an empty one, and open eyes. That article's here:

http://www.discover.com/issues/feb-06/features/energizer/
The Energizer
Amory Lovins has a vision: The U.S. economy keeps going and going and 
going-without any oil
By Cal Fussman
Photography by Ben Stechschulte
DISCOVER Vol. 27 No. 02 | February 2006 | Environment

-------

http://www.tompaine.com/articles/2006/02/10/who_needs_more_coal.php

Who Needs More Coal?

Amory B. Lovins

February 10, 2006

Amory B. Lovins is chief executive officer of Rocky Mountain 
Institute and is a consultant experimental physicist educated at 
Harvard and Oxford. This piece appeared in ORION magazine and is 
reprinted with permission .

Coal-fired power plants generate half of U.S. electricity. Yet 
mountaintop removal, smokestack pollution, and global warming aren't 
inevitable; they're artifacts of using electricity in ways that waste 
money. Most of the electricity used today, whether in the U.S. or in 
even more coal-intensive countries like China, can be saved by using 
it far more efficiently.

Fifteen years ago, the utility industry's Electric Power Research 
Institute (EPRI) and a team of researchers at Rocky Mountain 
Institute (RMI), the resource efficiency center I cofounded, came to 
essentially the same conclusion. In a joint Scientific American 
article, EPRI found that it would be cheaper to save 39 to 59 percent 
of all the electricity used in the United States than pay to run 
coal-fired (or nuclear) power plants and deliver that same power to 
customers; RMI concluded the number was at least 75 percent. Either 
way (the differences are largely methodological), running coal-fired 
power plants, let alone building more, is uneconomic when compared to 
other widely available, but officially disfavored, ways to do the 
same tasks. Recent drops of 2 percent per year in the electricity 
that's used to make a dollar of U.S. gross domestic product barely 
scratch the surface of what's possible-and electricity-saving 
techniques are getting better and cheaper faster than we're using 
resources up.

These dramatic savings come not from privation or discomfort, but 
from smarter technologies that wring more work from each 
kilowatt-hour. They deliver the same comfort, light, hot showers, 
cold beer, and other services with the same or better quality and 
reliability but use less energy and less money. For example, my 
refrigerator keeps a power plant from burning enough coal to fill the 
refrigerator every year, because it uses 92 percent less electricity 
than most-and newer technologies could raise that to at least 97 
percent. The refrigerator costs more up front because it's made by a 
small firm, but in mass production it would probably cost less than a 
normal unit.

Saving electricity is extremely lucrative, but the United States has 
long been slow to do it. Why? For starters, electricity is the most 
heavily subsidized form of energy, is often used in devices chosen by 
a different person than the bill-payer (for example, a landlord and a 
tenant, respectively), and is usually priced at the average of cheap 
old supplies and costly new ones, hiding the true cost of using more. 
But some states have striven to overcome these obstacles. 
California's policies have held per-capita use of electricity flat 
for about thirty years even as per-capita income rose by two-thirds. 
New England has lately followed suit; Vermont is reducing household 
electricity use. Yet most states use ever more electricity: all but 
Oregon and California reward distribution utilities for selling you 
more and penalize them for cutting your bill. If that sounds as dumb 
as a possum... well, it is. State utility regulators nationwide 
unanimously agreed in 1989 to fix this perverse incentive, and about 
nine states did, but then restructuring derailed reform. Some other 
states are reconsidering, but it's not on the federal agenda.

The fix is easy. First, state utility commissions must decouple 
utilities' profits from how much energy they sell, escrowing profits 
from years when energy sales are unexpectedly large, returning them 
in years when sales fall short of projections. Second, regulators 
must let utilities keep part of any savings as extra profit.
Thus in 1992, rather than make costly investments in new energy 
production, Pacific Gas and Electric Company invested more than $170 
million to help customers save energy. Eighty-nine percent of the 
nearly $400 million saved went to customers in the form of lower 
bills; the remaining 11 percent was returned by regulators to utility 
shareholders as higher dividends, rewarding both parties.

How much electricity can be saved through efficient use? Most 
existing houses can be modified to cut their electricity use by half, 
repaying the retrofitting cost in a few years. My 
four-thousand-square-foot demonstration house at 7,100 feet in the 
Rockies uses $5 of electricity per month, a tenth of normal 
consumption. It stays comfortable without a heating or cooling 
system, saving 99 percent of space- and water-heating energy and 
combining natural light with efficient off-the-shelf lights and 
appliances. All this efficiency paid for itself in ten months in 
1983, but if built today, the house would use only $2 of electricity 
per month and cost less to build than a typical home. Well-designed 
houses in a dry climate at up to 115 degrees Farenheit have saved 100 
percent of air-conditioning energy at lower construction cost, and 
nearly 90 percent in tropical Bangkok at no extra cost.

Big buildings and factories also offer huge, cheap "negawatts" (saved 
electricity), as RMI consultants have lately shown in some $20 
billion worth of major facilities. Integrative design often makes big 
energy savings cost less than small ones. Two examples: a redesigned 
industrial pumping loop in an Interface carpet factory in Shanghai 
used 92 percent less electricity than the original design, yet was 
cheaper to build (it substituted fat, short, straight pipes for thin, 
long, crooked pipes); and a new Texas Instruments microchip factory 
saved 20 percent of its electricity compared to the best previous 
design, yet cost 30 percent less to build (the next one will save far 
more and cost even less).

Like retrofits and smart design, decentralized low- or no-carbon 
electric generators such as gas-fired cogeneration of heat and power, 
microhydro, and windfarms can be built quickly. Worldwide, they're 
already bigger than nuclear power and are growing far faster. In 
2004, they added 2.9 times as much annual electricity output as 
nuclear power did. Their installed capacity grew 5.9 times faster 
than nuclear power's. Within a few decades, if allowed to compete 
fairly, these supposedly small, slow, and unrealistic "micropower" 
competitors could be cost-effectively making more electricity than 
coal plus nuclear plants-for less money than it costs to build new 
plants, and often less even than to run existing ones.

If coal is responsibly mined and its carbon kept out of the air, it 
could have a sound long-term future. But even in the short term, 
mountaintop removal's scalped landscapes and destroyed communities 
are neither necessary nor economic. America won't need to turn 
Appalachia upside down if federal energy policy simply allows all 
ways to save and produce energy to compete fairly at honest prices, 
no matter which kind they are, what technology they use, how big they 
are, or who owns them. On such a level playing field, efficiency and 
some low- or no-carbon electrical generators cost us less than coal's 
market price (even if its environmental and social costs were zero). 
Avoiding coal's burdens is not costly; it's profitable. Smart coal 
companies are starting to see such alternatives not as a threat but 
as a key business opportunity. One of these years they may even come 
out and say so.

(Supporting papers may be found at RMI's website including: "More 
Profit With Less Carbon" and "Nuclear Power: Economics and Climate 
Protection Potential")

This article appears in the January-February issue of ORION magazine, 
187 Main Street, Great Barrington, MA  01230, 888/909-6568 ($35/year 
for 6 issues). A free copy of the magazine can be obtained at 
www.oriononline.org.





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