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Driving Energy Innovation in Data Centers with Jay Harris and Wayne Johnson, Ep #19
Episode 19
lundi 14 novembre 2022 • Duration 40:18
In this season of Beyond the Meter, we’re taking a closer look at the meaningful impact business energy project have on the world around us. Host John Failla is joined by Jay Harris, Director of Data Center Services and Facilities for Clemson University, and Wayne Johnson, Key Segment Manager for Education at Duke Energy Sustainable Solutions. They discuss their organizations’ collaboration on energy infrastructure projects and provide insights into why these projects are critical to the university’s overall success.
You will want to hear this episode if you are interested in...
- Data operations at Clemson [04:16]
- Duke Energy’s role in Clemson’s upgrades [08:10]
- The partnership structure [11:38]
- Flexible contracts that grow as the business need grows [15:54]
- Impactful Projects [21:11]
- Major benefits of Duke Energy partnerships [28:23]
- “Outsourcing vs right-sourcing”
- Key lessons and tips for innovative energy [33:07]
- Advice for the academic sector [37:00]
The Journey to Success
In 2007, due to a breaker labeling error, Clemson University had both of its 20-year-old UPS (uninterruptible power supply) o out. That incident led the university to prioritize upgrades. The university would have needed several years to do the research required to fully understand the design and procurement to get the upgrades done. This is when Clemson turned to Duke Energy for guidance.
The university started the conversation with Duke Energy in April of 2007. By mid-November, the university had a new generator, two new UPSs, 250-ton air-cooled water chiller, and four new computer room air handlers. The university went from piecemealing together their strategy to a fully functioning infrastructure.
A Board-Approved Financing OptionClemson University worked with Duke Energy to identify areas that are ready to be improved or equipment that needs to be replaced. The university signed a 10-year agreement with Duke Energy and amortizes the cost across the length of that agreement essentially transferring CapEx to OpEx. Instead of needing the funds upfront to purchase and install equipment, the contract spreads the cost across 10 years.
This structure has made budgeting a lot easier for the university. Approval is easier with an amortization schedule vs. obtaining approval for millions of dollars upfront. Most university campuses are struggling with deferred maintenance costs, especially in facilities. Now Clemson University’s facilities team can propose a solution that removes them from the CapEx competition on campus in exchange for a little more OpEx. Not only will this help with resiliency, sustainability, and efficiency initiatives now, but it will also make sure those goals deliver across the lifespan of those assets.
An innovative business model
Part of what makes Duke Energy’s contracts so successful is their flexibility. Duke Energy has its own in-house structuring, counsel, engineering, and operations teams. These teams determine what each client is good at, and then Duke Energy prices and builds solutions around what the customers do and what they need. As a company, Duke Energy wants to have relationships with customers working collaboratively to deliver solutions across time because that’s where the most significant energy savings and reliability services outcomes are found.
Considerable savings can occur when working together to develop these contracts and partnerships. Rather than simply selling a product and leaving the rest to the customer, Duke Energy is involved in the design, build, operations and maintenance phases. Working through these phases with a single vendor can save money while achieving the comprehensive outcomes, including sustainability, reliability, and resiliency.
Resources & People Mentioned
Note: The above project was performed by Duke Energy’s Business Energy Services team. Duke Energy Sustainable Solutions leverages these specialists to deliver innovative solutions to customers.
Connect With Our Guests
Jay Harris - Director of Data Center Services and Facilities for Clemson University
Jay Harris has been the Director of Data Center Services and Facilities for Clemson University’s Computing and Information Technology (CCIT) group since 2009. Among his responsibilities are the oversight and daily operations of Clemson’s two data center facilities, totaling approximately 19,000 square feet of white space, along with directing the enterprise print facility. The primary data center, with an aggregate feed of 5MW, houses a 1.4+ PFLOP supercomputer cluster dedicated to supporting research faculty at Clemson.
Mr. Harris has been with Clemson since 1998, working as a Unix systems administrator with the Computer Science Department before moving to CCIT in 2007 as the hardware architect. Prior to that time, he was a “professional” student.
Mr. Harris earned two BS degrees in Chemistry and Computer Science/Mathematics and a BA degree in Mathematics from Wofford College (Spartanburg, SC) in 1993, an MA degree in Analytical Chemistry from the University of North Carolina at Chapel Hill in 1996, and an MS degree in Computer Science from Clemson University in 2001.
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Wayne Johnson - Key Segment Manager for Education
Wayne Johnson is key segment manager for the education segment at Duke Energy Sustainable Solutions and has a wealth of experience in energy innovation and solution finance. He also spent years as a facilities manager and energy executive in higher education.
Wayne’s out-of-the-box thinking helps him meet the challenges of energy infrastructure and asset management in education. Wayne designs energy solutions to help meet the needs of all project stakeholders, including facilities leaders, CFOs, presidents, heads of schools, faculty, staff, students and local communities. He uses his unique experience to help schools become more energy efficient, sustainable and viable for the future.
Wayne has been invited to speak at conferences and universities across the country about finance innovation for campus energy and sustainability projects. He also works closely with Duke Energy’s Emerging Technology organization to bring behind-the-meter innovation to campuses. Most recently, Wayne has been exploring the role of alternative fuels on campus via pilot project funding.
Wayne enjoys international travel, time on the lake and hiking with his family. Wayne has worked as a licensed electrical and general contractor and is an alumnus of Mars Hill University and The University of South Carolina. His master’s degree is in education administration.
- Follow Wayne Johnson on LinkedIn
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Getting the Green Light for Energy Projects with Mark Adams, Mike York, and Wayne Johnson, Ep #18
Season 2 · Episode 18
lundi 3 octobre 2022 • Duration 43:53
In this episode of Beyond the Meter, host John Failla is joined by three Duke Energy Sustainable Solutions team members. Mark Adams is the Business Development Manager, Mike York is the Strategic Account Manager, and Wayne Johnson is the Key Segment Manager for Education. These experienced executives walk through practical steps toward gaining approval for resiliency projects.
You will want to hear this episode if you are interested in...- Understanding the project [02:21]
- Making the business case for a project [05:59]
- The “Money Authority Need” concept [10:14]
- Barriers to communication [15:21]
- The DISC profile [20:34]
- Building consensus [24:03]
- Risk-adjusted cost [30:22]
- Before the C-suite meeting [39:58]
Achieving internal buy-in for energy managers is a common challenge. Many projects miss the mark on this critical first step in making the business case for a project. Fully understanding the project, need, and goal will lead to precisely what’s necessary for a project to achieve that goal. Starting with the end in mind and understanding the process will direct how the project is communicated.
Everyone has different communication styles, so choosing the right person to present varies by initiative. Typically, engineers can speak to engineers and do a reasonably good job communicating with finance. Still, many engineers would find it a challenge to translate an initiative into business results and talk to executives. The presentation must be succinct, with further data ready for when there are deeper questions. The goal is to give people the information they need to make a reasonable decision and not drown them in detail and minutiae. With data, details can become muddled in the impact, degrading the target outcome’s importance.
Begin with consensusThe default starting point for many projects has been receiving approval from finance. However, finance tends to wait to follow after the authority has expressed initial interest. At that time, a higher priority is placed on the project, and the project will receive more support. The entry point has to be with the individual with the need. Finance tends to look for a simple payback or some framework that may not apply well regarding the replacement of assets. The presenter will need to present the initiative in such a way as to anticipate and overcome objections.
Finance finds comfort in consensus. If approached with a project that already has people from various departments working together to push it forward, finance is much more likely to join. Finance will need cost comparisons, asset lift management expectations, and expenses. Anticipating these questions means knowing the people in finance and how they communicate.
Consider the wider audienceWhen proposing a project to your business, the decision-makers are the primary audience. Often overlooked are the people who don’t have the authority to approve a project yet affect how the project proposal is received. Considering these different perspectives and bringing them on board is crucial in making the business case for a project.
Success is unlikely if a solution doesn’t receive support from the engineering, facilities, and finance departments. This concept applies in other industries as well. In education, the sustainability officer doesn’t typically have much money to spend or authority to leverage but is influential in the process. Being attuned to the broader audience will help gain the project’s approval and its overall success.
Resources & People Mentioned Connect With Our GuestsMark Adams - Business Development Manager
Mark’s experience with Duke Energy and Duke Energy Sustainable Solutions through his multiple roles has given him the opportunity to meet, listen and understand, through countless customer meetings across a wide spectrum of industries, the challenges and the ever-changing world they live and compete in daily. Through these meetings, he has learned that everyone has their own unique issues and challenges. His learned business development skills have given him the opportunity to work with diverse industries on many innovative projects.
Mark is married to Samona for 35 years and has a 31-year-old married son named Landon.
Mark is an avid golfer and loves working in his yard.
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Mike York - Strategic Account Manager
Michael York has spent the majority of the past thirty years as an executive responsible for running operations with revenues between $275-$700M annually. During this period, he has managed capital budgets, and engineering staff and has successfully launched numerous service offerings. In addition to these responsibilities he has spoken at events such as Gartner Group conferences, North Carolina State University Executive Roundtable, Minority Economic Forum events and served on the Minority Competitiveness council under the US Department of commerce. He has authored the book Reset, numerous white papers and worked with the VA, Minority Entrepreneurial Council and Raleigh Rescue Mission.
Mike is a graduate of the Strategic Leadership Institute at Villanova University, Adizas Institute and Murray State University. Currently, he works for Duke Energy Sustainable Solutions in the area of sales enablement to facilitate complex deals and build compelling business cases for business developers and customers.
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Wayne Johnson - Key Segment Manager for Education
Wayne Johnson is key segment manager for the education segment at Duke Energy Sustainable Solutions and has a wealth of experience in energy innovation and solution finance. He also spent years as a facilities manager and energy executive in higher education.
Wayne’s out-of-the-box thinking helps him meet the challenges of energy infrastructure and asset management in education. Wayne designs energy solutions to help meet the needs of all project stakeholders, including facilities leaders, CFOs, presidents, heads of schools, faculty, staff, students and local communities. He uses his unique experience to help schools become more energy efficient, sustainable and viable for the future.
Wayne has been invited to speak at conferences and universities across the country about finance innovation for campus energy and sustainability projects. He also works closely with Duke Energy’s Emerging Technology organization to bring behind-the-meter innovation to campuses. Most recently, Wayne has been exploring the role of alternative fuels on campus via pilot project funding.
Wayne enjoys international travel, time on the lake and hiking with his family. Wayne has worked as a licensed electrical and general contractor and is an alumnus of Mars Hill University and The University of South Carolina. His master’s degree is in education administration.
- Follow Wayne Johnson on LinkedIn
- https://www.smartenergydecisions.com/
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Resiliency and Technology in Cities, Ep #9
Episode 9
lundi 14 septembre 2020 • Duration 58:55
Most of us live day to day in our city of choice without giving much thought to the infrastructure and services that living in the city provides. But when a natural disaster or outage happens, we immediately recognize that vitally important things were going on behind the scenes that we benefit from directly.
This episode highlights the steps the city of Greensboro, NC has taken to begin its “Smart City” initiative, which includes a number of renewable energy approaches. You’ll enjoy hearing from three officials from the city of Greensboro and how their varied roles provide unique looks at the challenges of becoming a Smart City.
You will want to hear this episode if you are interested in...- The guests on this episode and their role in energy & renewables [0:58]
- How Greensboro started its “Smart City” journey [4:48]
- The overview of Greensboro’s energy management evolution [9:01]
- Greensboro’s actions compared to other municipalities [12:59]
- The consequences associated with power outages for cities [18:08]
- How does resiliency intersect with renewable energy sources? [26:25]
- Greensboro’s kiosk program: why it was created and what it’s accomplished [28:43]
- How Duke and other energy suppliers can partner toward renewables [33:46]
- Prioritizing investments in smart city and renewable energy projects [35:41]
- Are energy-as-a-service programs helpful for municipalities? [40:10]
- Emerging priorities for cities and the communities they serve [47:17]
The city of Greensboro, North Carolina started its journey to becoming a Smart City when neighboring cities began working on fiber installations. Greensboro’s leadership began investigating its own options for fiber installations since high-speed data connections are foundational to the technology needed to implement Smart City approaches. From there, many additional developments have come about.
In their current approach, the city’s leaders are continuing to ask, “How can we leverage the Smart Cities approach for growth and economic development?” Some of the initiatives they’ve implemented so far are the city’s smart connected corridor, which includes informational kiosks visitors can use to find out about the city, locate destinations, and connect with public transportation. Find out more by listening to this conversation!
Why resiliency is vital for municipalities like GreensboroThe situation in Greensboro mirrors the reality of many municipalities around the nation. For Greensboro, 30 out of 80 facilities are emergency-related, so when the power for the city experiences a disruption, there’s not only a dollar impact, it can also create a logistics nightmare. A tornado a few years ago made it abundantly clear that resiliency for the city’s power grid was of the utmost importance.
Greensboro’s CIO, Jane Nickels says that if the data center goes down, everything in the city shuts down, and it would take days to get the data center back up. For that reason one of the resiliency measures they are adopting is a migration of everything possible to the cloud. As well, all projects — Smart City related or not — have resiliency in mind. From the creation of “battery buses” to the use of solar power to charge them, the city is well on the way to making its power needs resilient.
How Greensboro pursues financing through partnershipsCity budgets are not known for being lavish and the budget in Greensboro is no exception. The city had no budget at all set aside for Smart City initiatives when the idea came to the forefront, so those leading the charge had to look for partners. When they keep their ears open to what’s going on in the city and do the legwork of discovering what projects are slated by other companies, they can often find ways to attach a Smart City initiative to that project. These are collaborations that enable them to leverage Smart City ideas into the projects other organizations are already budgeting. Listen to learn more about how Greensboro is utilizing smart energy and building resilient systems.
Resources & People Mentioned
Michael Kilpatrick, Key Segment Manager, State Governments, Municipalities, and Co-ops
Michael leads strategic planning and engagement within state government, municipal, and co-op segments and is tasked with expanding revenue, profitability, and customer satisfaction by delivering solutions from an array of Duke Energy products and services, including but not limited to renewables, microgrids, and other energy-as-a-service offerings.
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Jane Nickels, CIO, City of Greensboro
As CIO for the City of Greensboro, Jane Nickles serves in the executive capacity as the director of Information Technology and Enterprise Solutions. Under Jane’s leadership, the City of Greensboro has been recognized as a Top 10 Digital City by the Center for Digital Government since 2014. Jane led the TriGig Regional High Speed Broadband initiative to bring competitive gigabit internet services to Greensboro and surrounding areas. Other areas of focus include Data Driven Government, Open Data strategies, Digital Equity, Smart City initiatives and continuous innovation.
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Butch Shumate, Facilities Manager at City of Greensboro
Butch is an experienced Division Manager with a demonstrated history of working in the government administration industry. Skilled in Budgeting, Contractors, Government, Project Estimation, and Facility Management (FM).
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Sergey Kobalev, Energy and Sustainability Management Engineer
Sergey Kobelev serves as the Energy Management Engineer for the city of Greensboro facilities, a position he has had since 2017. In this role, Sergey works to improve sustainability and energy efficiency in over 80 buildings and structures of the city of Greensboro Facilities. His primary focus is on improving existing energy conservation policies and developing new ones, often by incorporating emerging technology for the City facilities to achieve financial and sustainability goals set by the City Council.
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- https://www.smartenergydecisions.com/
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Resiliency In Healthcare, Ep #8
Episode 8
lundi 14 septembre 2020 • Duration 45:02
Hurricane Katrina and Superstorm Sandy were each crisis situations in their own right and one of the sectors impacted that brought the issue of power resilience to the forefront was healthcare. It’s easy to see how life and death are on the line when power outages or disruptions impact a care facility. Join host, John Failla as he speaks with Eric Bennett of Duke Energy and Matt Stiene of Novant Healthcare as they discuss the current state of resiliency in healthcare systems, the challenges faced in becoming more resilient, and what the future may hold.
You will want to hear this episode if you are interested in...- The role and responsibilities of today’s guests [1:12]
- Resiliency is an important consideration for the healthcare sector [3:05]
- How does compliance impact the application of resilient measures? [7:27]
- The unique challenges to adopting new technologies in light of regulations [10:16]
- Utilizing partnerships to move redundant systems and projects forward [19:11]
- Energy management budgets and the challenges organizations face [21:47]
- Guidelines Novant uses to consider financing renewable energy structures [28:35]
- The greatest challenges in resiliency management going forward [31:33]
- What’s next for Novant and the healthcare industry in terms of energy? [36:45]
Life support and medical systems of all kinds that are typical to health systems require power to operate. Those in charge of running healthcare facilities and those responsible for their construction have to think through how to provide that power in an uninterrupted fashion so that patient care is not compromised.
Matt Stiene shares how Novant Healthcare is committed to multiple sources of power for its facilities, with secondary systems many times taking the form of backup generators that can power entire facilities for long periods if needed. But even so, the desire to move toward sustainable sources of energy is becoming a greater consideration. Listen to hear how Novant is addressing these challenges and how the healthcare sector is doing at addressing the energy challenges it faces.
The application of microgrids promises great potential for healthcareThe latest statistics reveal that the healthcare industry is the 5th largest greenhouse gas emitter in the world. With the amount of power required for the average healthcare facility, that shouldn’t be a surprising figure. But given that healthcare should be focused on overall health, including how health is impacted by the environment, those figures are dominant on the radar of many senior leaders in the healthcare sector.
Microgrid solutions, built on-sight as power backups are one option being pursued. Two of Novant’s facilities only have one primary service available either in terms of the source the power comes from or in the means of delivery the provider employs. An on-sight battery storage facility is one microgrid option the organization is pursuing in those situations. Matt admits that due to the limitations of how battery systems work, it’s not a long-term fix but could allow for uninterrupted operations for a significant time while getting the facility’s primary power systems back online.
How do renewables fit into the resiliency picture?Healthcare organizations are taking a closer look at renewable energy these days. That’s because leaders in the industry see it as their responsibility to contribute to the overall health of those in their communities, not just to the acute or responsive care that’s typically provided in a healthcare facility. For Novant, the mission of “Improving the health of our communities one person at a time” is taken very seriously and sustainability figures into that. He says that the internal pressure to move toward sustainable sources of energy is growing and also says that the communities they serve are expressing growing concern about the issue as well.
But the metrics around costs make it challenging. Novant shoots for energy projects that they can pay back within two years and many others in the sector consider a three to five-year payback of capital acceptable. But when power from the regular power grid can be bought for less, it can be a hard sell to the finance department. Listen to hear how Novant and other organizations are addressing these issues with the help of their energy partners, like Duke.
Connect With Our GuestsEric Bennett - Duke Energy, Key Segment Manager Health Care
With over 15 years of experience in the energy industry, Eric leads Duke Energy One’s Health Care segment. He works with customers and stakeholders across the Health Care segment to identify emerging trends, technological developments, and market Solutions.
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Matthew Stiene, VP Construction and Engineering, Novant Health
Matt has a 20-year history of solid accomplishments and excels developing high-performing teams, creating metrics to track performance for continuous improvement, developing and implementing infrastructure capital renewal plans, developing facility and land use master plans, and developing and implementing energy reduction strategies. Active in his profession and the community, Matt is a past-president of the International Facility Management Association, Charlotte chapter, a member of the American Society of Healthcare Engineers, the North Carolina Healthcare Engineers Association and a professional member of the Society of Fire Protection Engineers. He serves on the board of directors of the Hospitality House of Charlotte, the Town of Harrisburg Fire Advisory Board, as well as a youth baseball coach.
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- https://www.smartenergydecisions.com/
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Look Who Switched To Renewables: Sprint’s Journey To Lower Emissions, Ep #7
Episode 7
vendredi 18 octobre 2019 • Duration 26:17
Lower emissions are one of the many goals being set by corporations across the country to reduce their carbon footprint and exercise corporate responsibility. Naturally, every company has its own unique set of hurdles to overcome in setting and attaining such goals. In this conversation Amy Bond, Energy and Sustainability Program Manager at Sprint explains how Sprint started looking into what it could do to procure energy from renewable sources back in 2008, but nothing fit their situation at that time. Fast forward to 2018 and it’s an entirely different story.
Join Smart Energy Decisions Founder, John Failla as he speaks to Amy about Sprint’s journey. Joining the conversation is Scott Macmurdo, Business Development Director at Duke Energy, Sprint’s partner in its recent Virtual Power Purchase Agreement.
Outline of This Episode- [0:33] John’s introduction of this conversation from the 2019 Renewable Energy Sourcing Forum
- [1:20] Amy Bond’s big announcement: Sprint’s first PPA with Duke Energy Renewables
- [4:20] The beginning of Sprint’s journey, the SED conference in Austin, TX
- [6:20] Starting on the journey with no overarching climate goals
- [8:09] Internal and practical obstacles faced in getting the deal done
- [12:36] Explaining the opportunity across departments
- [15:17] Key things corporate buyers should be thinking about
- [21:13] How the CEO was enlisted as an ally early in the process
At the recent 2019 Renewable Energy Sourcing Forum, Amy shared the culmination of Sprint’s journey for the first time. It’s a 12 year Virtual Power Purchase Agreement that Duke Energy has put together. Duke will build and operate a 182-megawatt wind farm in West Texas and Sprint will purchase 95% of the output from the facility for use in its facilities. Amy says that amount us almost 30% of Sprint’s entire energy consumption.
But please understand, Sprint did not come to this place overnight. Their journey toward sustainability goals that made sense for them as a company was begun in 2008. Ten years later, it’s finally coming to fruition.
Ten years of trying, iterating, and striving to come to renewable energy successSprint first launched its environmental goals in 2008 and hoped to meet them by 2017. One of those goals was to acquire 10% of the company’s energy from alternative sources by 2017. Those goals were not met. The first option the company considered was the purchase of hydrogen fuel cell racks in 2008. The project proved to be impractical from a cost perspective.
The first VPPA Sprint ever considered came in 2014, but again the economics didn’t make sense at the time. But Amy says that the unexpected by-product that came from those efforts was that an internal renewable energy team was assembled, so when 2018 came around all of those team members were still with the company and were still interested in working toward a way to reduce emissions as a company. This gave them a jump start on moving projects forward once the costs were more aligned with their goals and needs.
Sprint had no overarching climate goals - but engaged with renewable energy anywayThe goals Sprint generated back in 2008 were never realized. When Amy came to see that the practical and financial limitations previously experienced were no longer the case, she began pitching the idea to key stakeholders right away. Through months of discussion and hard work, the team cooperated with Duke Energy Renewables to put a plan in place that everyone involved could sign off on.
Notice something important - Sprint had no renewable energy goals in place at the time but the company was able to move forward anyway. Don’t let any perceived lack in your renewable energy policy or goals hold you back from moving to reduce emissions for your company. You can do it!
Key things for corporate buyers to be thinking aboutWhen looking at a potential VPPA deal, there are many things to pay close attention to in order to move the deal forward. First, you need to work hard to frame the project in ways that make sense within your organization. Amy also stresses that you need to look closely at your developer (Duke Energy Renewables, in this instance). The relationship will be a 12-year relationship in Sprint's case. It’s important to feel comfortable and confident - and to know that all the stakeholders can feel the same - as you move into that kind of relationship.
Scott points out that corporate buyers should understand that the timeline you work from initially will not remain intact. It’s not that anyone is communicating wrongly or misrepresenting the deal, it’s that hurdles will arise and you'll have to find workarounds. Because that’s always the case - be sure you seek help. Third-party consultants that specialize in renewable energy are worth having on board. Even though they will result in higher initial costs, they enlarge the pie for everyone by equipping your organization with the knowledge you need to get the deal to the finish line.
Resources & People Mentioned- The Renewable Energy Sourcing Forum
- Duke Energy Renewables
- Cinemark Sustainability Efforts
- Cargill Sustainability Efforts
- The Renewable Energy Production Tax Credit
- Sprint’s Corporate Sustainability Goals
- Amy Bond on LinkedIn,
- Scott Macmurdo on LinkedIn
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How AT&T’s Corporate Sustainability Pledge Is Coming To Life, with Shannon Carroll and Scott Macmurdo, Ep #6
Episode 6
vendredi 11 octobre 2019 • Duration 48:40
More and more companies are making corporate sustainability pledges - and it’s a good thing. Corporations are some of the largest consumers of energy in the world. When these companies take steps to reduce their carbon footprint by procuring their energy from renewable sources, they have a significant impact on the overall environmental issues our world is facing.
This conversation inspires hope because it illustrates how a communication industry giant is leading the way in the sustainability movement. That company is AT&T. Guests on this episode are Shannon Carroll, Director of Global Environmental Sustainability at AT&T, and Scott Macmurdo, Business Development Director at Duke Energy Renewables. Their companies recently partnered on a renewable energy project that illustrates the kind of steps that can and should be taken by companies large and small. You will enjoy this conversation.
Outline of This Episode- [1:01] The background of each guest in the sustainability arena
- [8:09] The role corporate sustainability goals have in driving asset sourcing
- [12:37] The involvement of the C-suite in sustainability pledges
- [17:18] Who are the main stakeholders in the AT&T pledge toward sustainability?
- [21:36] AT&T’s journey in renewable energy sourcing
- [27:26] The anatomy of a renewable energy purchase
- [34:40] The challenges that had to be overcome in the recent Duke / AT&T deal
- [40:15] What’s the future of renewable energy hold?
When it comes to corporate sustainability pledges, AT&T has set the bar pretty high. Not only are they committed to lowering their own operational carbon footprint as much as possible they are also committed to enabling their customers to reduce their carbon footprint as well. That’s where the 10X Goal for Environmentally Responsibility and Sustainability comes in.
The AT&T pledge is this:
We’ve set a goal to enable carbon savings 10 times the footprint of our operations by 2025. We’re calling this our 10x Carbon Reduction Goal, or more simply, our “10x” Goal. To meet the goal, we’re making our network more efficient and we’re working with our customers to deploy technology that can help reduce GHG emissions, save water, and more. AT&T is also teaming up with companies to measure the GHG emissions reduction of specific products.
The AT&T energy team worked with experienced third party consultants in the renewable energy space to come up with the strategy and then put it into place officially. Listen to this discussion to learn how they made it happen.
The fastest and most significant way to reduce your company’s carbon footprintIn recent years we’ve seen record rates of sustainability goals by corporations. Not coincidentally, we’ve also begun to see record levels of corporate renewable energy procurement. Simply put, companies are taking the initiative to sidestep traditional forms of carbon-based energy to use renewable energy instead. Undoubtedly, this is the best way to dramatically draw-down on a company's CO2 footprint in the least amount of time.
As explained by the guests on this episode, there are a handful of things companies could do to be true to their commitment to corporate sustainability. Some of the solutions are:
- Moving toward energy efficiency
- The build-out of renewable energy sources of their own
- Changing gas-powered fleet vehicles to electric
While good and needed steps, in most cases, these are not the way to create a significant change in a short amount of time. Then how are they doing it? Through large-scale renewable energy procurements. Think of it as the largest “ROE” - return on effort. Limited resources demand the biggest bang for the buck - which is accomplished through switching energy sourcing to large scale solar or wind projects.
Goal alignment and good communication drive corporate sustainability effortsAs the AT&T team began to make efforts to reduce the company’s CO2 footprint, many options were considered and tried. But by far, large scale Power Purchase Agreements became the fastest and best way to make a difference. The team researched what would best meet the needs of the company and best serve the customer and solicited the help of third parties from the renewable energy industry who could advise about best-practices.
The key to aligning stakeholders was to stay focused on their common sustainability goals and to talk to all the teams involved: energy -supply chain - finance - C-suite - and on-the-ground managers. Their goal was to ensure that the projects being considered made sense across the board, while at the same time understanding and quantifying the risk openly. In the AT&T approach, the upside had to outweigh the risks.
Trends that impact the future of corporate renewable energy sourcingWill more companies follow AT&T’s lead and develop renewable energy pledges of their own? It’s likely, for several reasons.
FIRST - The cost of renewable energy is going down overall. This translates into better value for buyers, who in this case, would be corporations.
SECOND - Customers are gaining a better understanding of the risks involved and are learning to mitigate those risks effectively by shifting it to developers.
THIRD - Many new renewable energy companies are coming into the marketplace. The competition that is developing makes overcoming supply-chain hurdles and cost factors, less of an issue.
You’ll be inspired by the commitment to corporate sustainability the AT&T goals represent and after listening, you’ll have a good idea of the challenges and benefits of developing a renewable energy plan of your own. Please listen!
Resources & People Mentioned- The AT&T 10X Goal
- The AT&T CSR page
- AT&T flexware product
- Emerson’s “Grind To Energy”
- AT&T’s climate change tool, developed with Argonne National Labs
- The “We Are Still In” Movement
- Science Based Goals
- RE100
- Charlene Lake, AT&T Chief Sustainability Officer
- AT&T’s recent renewable power purchase deal with Duke Energy Renewables
- The Renewable Energy Production Tax Credit
- Walmart’s Project Gigaton
- Shannon Carroll on LinkedIn
- Scott Macmurdo on LinkedIn
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How Energy Providers Like Duke Are Leading The Way, with Doug Esamann and Chris Fallon, Ep #5
Episode 6
vendredi 11 octobre 2019 • Duration 44:43
As one of the largest energy providers in the United States, Duke Energy is positioned to make a significant impact on the move toward renewable sources of energy. Duke provides electricity to 7.7 million retail customers in six states. While some might see the renewable energy movement as a threat to a company like Duke, its leadership sees renewable energy as the future of energy providers across the nation.
As a result, Duke’s commercial business owns and operates diverse power generation facilities in North America, including a growing portfolio of renewable energy assets. The company is leading the way with the modernization of its energy grid, generating cleaner energy to create a smarter energy future for customers. This conversation features Doug Esamann, Executive Vice President of Energy Solutions at Duke and Chris Fallon, Vice President of Duke Energy Renewables. Listen to learn how energy providers like Duke are positioning themselves to serve customer needs through renewable energy.
Outline of This Episode- [1:10] The background and involvement Doug and Chris have in energy utilities
- [4:00] Duke Energy’s history in renewable energy procurement
- [7:41] In deregulated markets, Duke has been very active. Here’s how
- [9:16] The role renewable energy has played in the company overall
- [13:10] How Duke communicates with customers regarding renewable energy
- [18:20] A wide range of customers in renewable energy projects
- [24:56] The biggest obstacle for Duke’s renewable energy projects: uncertainty
- [29:35] Why Duke is bullish about renewable energy
- [34:40] How the “Energy Integrator” concept impacts the approach of utilities like Duke
The leadership at Duke energy could see the writing on the wall as more and more states were becoming focused on renewable energy in the development of legislated energy standards. It meant a change for the way Duke creates and supplies energy to its customers, but the team was ready to respond.
Renewable energy at scale was a natural fit for Duke to consider as it sought to offer utilities to municipalities and cooperatives who were under the requirements to meet renewable standards. At first, justifying the investment in renewable options was difficult from a price perspective but the company’s leadership was committed to sustainably growing the business. As costs have come down in regulated markets and tax credits have made renewables competitive with traditional options, Duke has looked to replace coal plants and other carbon-free options with cleaner forms of energy.
Balancing profitability with customer needs and CO2 emission goalsTraditionally, energy suppliers like Duke have looked for opportunities of a long-term nature that allow the company to build out a power plant or facility and be able to rely on a return on that investment coming back over time. While not the same thing structurally, renewables allow customers with good credit history to provide a similar long-term opportunity for Duke through longer-term contracts. This provides the same secure deal structure but allows Duke to vary its supply chain considerably.
At the same time, renewables present an opportunity to couple investments in new generation sources of energy with the company’s CO2 emission reduction goals. Duke’s current goal is to reduce its carbon emissions by 40% by the year 2030. Its efforts have been so encouraging there is consideration within the company of shooting for an even larger CO2 reduction. Duke’s leadership understands that they have a unique responsibility to embrace renewable sources of energy as a way to get to its environmental goals while still being able to provide reliable, affordable power to its customers.
The customer’s perspective matters to the team at DukeModern customers want to be more responsible with their energy choices. They also want the opportunity to select the kind of energy they want to purchase for their homes and places of business. Duke has developed customized solutions using its resources and options from outside the regulated utility space. The way the company sees it, it’s about being more focused on the customer. No more building products then trying to sell those products into the market - the model is now flipped upside down with customer needs and desires coming first.
It’s an ever-evolving path that the Duke team is walking and it has required a cultural shift within the company. But it’s a decision that’s being taken seriously, manifested in part through the creation of the position of Chief Customer Officer, and tapping Barbara Higgins to lead the way in understanding the customer first when it comes to renewable energy and other issues.
The uncertainty of the renewable energy puzzle is difficult for energy suppliersThe move toward renewable energy for a large energy supplier like Duke is fraught with difficulties. One of the most frustrating issues comes from the uncertainty inherent in this stage in the development of renewable energy. Regulations regarding renewable energy are in a constant state of flux, so deals that are already under contract can change overnight and the Duke team has to adapt to stay within costs and meet their commitments in spite of the changes.
But the good news is that costs for renewable energy continue to come down, making the future of renewable energy projects a given for providers like Duke. As well, energy storage costs are becoming more affordable all the time, which can make the intermittency of renewable energy less of an issue for large suppliers. There’s also the likelihood that taxes or penalties for carbon emissions could soon be in place. That too would push the necessity and demand for renewable energy forward.
If you take the time to listen to this conversation you'll see how large energy suppliers are making real changes toward a cleaner energy future.
Resources & People Mentioned- Duke CEO Lynn Good
- REC Solar
- Duke Energy Renewables
- PIedmont Natural Gas (a Duke company)
- The FERC (Federal Energy Regulatory Commission)
- Doug Esamann on LinkedIn
- Chris Fallon, Vice President of Duke Energy Renewables
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The Home Depot Sustainability Approach, with Craig D’Arcy and Craig Noxon, Ep #4
Episode 4
vendredi 11 octobre 2019 • Duration 47:56
One of the high profile corporate renewable energy initiatives in the news recently has been the unveiling of Home Depot’s sustainability goals. Home Depot is among the increasing number of corporations working to make renewables a significant part of their energy procurement strategy. But for Home Depot, this new direction is not fueled by a desire to become sustainable, it began because it makes financial sense.
On this episode of Beyond The Meter, join host John Failla and his co-host Craig Noxon, Vice President for Enterprise Sales at REC Solar, a Duke Energy Renewables Company as they speak with Craig D’Arcy, Director of Energy Management for Home Depot. You’ll learn how Home Depot started its journey toward the use of renewables, how early successes encouraged further efforts, and how both the financial and efficiency benefits of using renewable energy has motivated them to keep innovating. The Home Depot approach is a great example of how corporations can make use of renewables and increase the bottom line at the same time.
Outline of This Episode- [1:05] The background and role of each participant in regards to renewable energy
- [3:25] Home Depot’s energy management strategy: key elements
- [5:41] The primary drivers for the Home Depot strategy
- [8:13] Comparing Home Depot’s approach to the work other companies are taking
- [11:56] Technologies Home Depot has employed, renewable energy and otherwise
- [16:57] The role renewable energy plays for Home Depot
- [20:42] Which programs are most important to Home Depot (on-site or off-site)?
- [25:11] The challenge of getting stakeholders aligned toward renewable energy
- [27:50] Tips for those trying to get the attention of the C-suite for sustainability efforts
- [29:35] Advice about how to enlist the financial teams to help make the case
- [32:36] What’s next for Home Depot’s energy management strategy?
- [35:54] The challenges of energy providers in light of renewable energy innovation
- [40:36] Energy as a service concepts: Do they work for large companies?
There are typically three drivers behind a corporation’s consideration of renewables as an energy source. The first is cost, the second is the company's conscious sustainability goals, the third is increased resiliency. Craig D’Arcy says there is no doubt that all three play some role in Home Depot’s approach, but the first attempts to roll out renewable energy projects were entirely focused on the financial benefits. Renewables simply made financial sense for increasing efficiency and bottom-line profitability.
As early successes with renewable projects were achieved, they were able to investigate other options and expand their efforts toward sustainability. It's led to their sustainability story becoming public, which has driven internal excitement and created momentum for the renewables side of their energy procurement strategies. Listen to hear how Home Depot continues to consider all sorts of energy solutions, including any renewable sources that make sense for their broader goals.
3 critical elements of the Home Depot sustainability approachWhen thinking of the renewable energy movement, it’s common to assume that those pushing for the use of renewables are only concerned about global issues of sustainability, but there’s incredible motivation to implement renewable energy alternatives from a variety of standpoints. In the case of Home Depot, three primary concerns guide their energy decisions...
1 - Foremost, Home Depot views everything they do through caring for their stores so that associates and customers are served well
2 - Every energy sourcing project must make sense financially
3 - Leadership has passed down a mandate to be as innovative as possible to accomplish those first two, which makes their decision-making technology and structure agnostic
Listen to hear how this plays out for Home Depot as Craig D’Arcy explains the fit renewable energy has in that three-pronged approach.
Sustainability efforts are significant for Home Depot's futureNo company can survive if it is not profitable. Home Depot is no different, so it is no surprise to find out that from a financial standpoint, renewable energy is being leveraged to lower the net rates paid for energy throughout the company. But the benefits of renewable energy go far beyond that...
Home Depot has become known as a sustainability brand, recently releasing its own science-based targets for its energy policy, which includes renewable energy as a significant part. And finally, renewable energy provides natural, beneficial hedges against volatile energy pricing in the markets. Power Purchase Agreements with energy providers enables this hedge and has proven to be a huge benefit to the company.
Advice for convincing the C-suite to consider sustainability projectsThe C-suite of any company must be on board if a move toward sources of renewable energy is going to take place. Both Craig D’Arcy and Craig Noxon offer their advice for how to secure the buy-in of company executives.
First, map out the process. Have a clear projection of how and why renewable energy sources will be investigated, selected, and implemented.
Next, understand what the stakeholders care about and be sure your roadmap adequately addresses those concerns. In doing so, work hard to uncover potential landmines and head them off proactively.
Finally, be sure you know how are you going to sell the upside of procuring energy from renewable sources. Bottom-line benefits for the company will be a significant and compelling consideration for anyone in the C-suite.
Home Depot’s sustainability efforts provide an excellent case study from which other corporations can take their cues - and this conversation provides keen insight into the why, how, and what of moving toward renewables as at least a portion of a profitable energy procurement strategy.
Resources & People Mentioned Connect with Craig D’Arcy and Craig Noxon- Craig D’Arcy on LinkedIn
- Craig Noxon on LinkedIn
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Renewable Energy Sourcing In Higher Education, with Wolfgang Bauer and Scott Therian, Ep #3
Episode 3
lundi 9 septembre 2019 • Duration 42:17
The use of renewable energy is becoming more and more common on campuses of higher education across the country - and it’s not surprising. Institutions of higher education are both massive consumers of energy and are in the business of learning and teaching. That combination makes them ideal laboratories for innovation and advancement in the field. This episode features two guests, Wolfgang Bauer and Scott Therian who are both uniquely positioned to speak on renewable energy sourcing and adoption as it relates to higher education.
Wolfgang is Associate Vice President for Administration at Michigan State University. His expertise is in renewable power systems integration, micro-grid management, energy efficiency, and sustainability. Scott is Project Development Manager at REC Solar. He has spent the last 9 years in the solar industry after getting his education in electrical engineering with a focus on power systems, energy conversion, and renewable energy sources.
Join these two renewable energy experts and host, John Failla of Smart Energy Decisions for this intriguing and insightful episode.
Outline of This Episode- [1:05] What are the drivers for renewable energy sourcing in higher education?
- [8:02] How renewable energy fits into the energy sourcing of many colleges
- [18:09] Why are universities moving slowly on renewable energy sourcing?
- [26:42] Will higher education institutions accelerate the adoption of electric vehicles?
- [29:52] What is happening in universities by way of innovation to drive renewable energy adoption?
- [39:27] Final comments about the topic from Wolfgang and Scott
Most universities are strategizing around the use of renewable energy, both in terms of how to use more renewable energy for current needs, and how to increase the use of renewable energy through establishing their own sources of RE in the future. But there are many variables that either support or hinder the adoption of renewable energy in these institutions. One advantage is that universities are long-standing institutions, which provides stability and inertia that can be leveraged toward multi-year contracts with renewable energy companies. But other factors can make the adoption of renewable energy difficult. For example, many land grant institutions have the advantage of developing their own sources of renewable energy, while urban universities have less opportunity to do so.
What are the drivers for adoption of renewable energy in higher education?For institutions of higher learning, as well as other large organizations, a choice no longer has to be made between environmental sustainability and fiscal sustainability. Both can be a reality. The levelized cost of large scale solar and wind power is now lower than that of fossil fuel generated power - even with the historically low cost of natural gas that has resulted from Fracking. For this reason, cost is a significant driving factor for the adoption of renewables at universities.
But also, due to political pressure, more and more universities are making progressive pledges that put them at the forefront of the renewable energy stage. They want to be seen as leaders in this innovative and future-oriented field. As a result, many universities are entering into cooperative agreements with public sector organizations to bring the reality of renewable energy on campuses to life. Listen to hear more drivers for the adoption of renewable energy at these institutions.
Renewable energy sourcing is not something universities are used to doingThe adoption of renewable energy is challenging for universities because it’s not like any procurement the administration is used to doing. In the past, energy needs would simply be procured from the local utility company. But the marketplace has changed and now schools have many options for meeting their energy needs. And the transition from old energy models to renewable energy involves complex projects that require much foresight and planning, which often gets bogged down in committee.
But many universities are beginning to move in the right direction - restructuring their administration to take energy needs into account with the creation of administrative positions such as Director of Sustainability or Director of Energy and Utilities. As well, the use of third party consultants is becoming more commonplace since most universities don’t know exactly what they need when it comes to renewable energy. Consultants can help the institution get through the decision-making process in an informed way so they can more quickly lay out exactly what they need. This facilitates the bidding process to get adoption projects underway.
The complex and multi-faceted needs of universities are driving innovationThe fact that higher education is an intriguing market for developers and renewable energy contractors makes it a natural fit for universities to become laboratories for innovation in renewable energy - from a business model standpoint, from a financing standpoint, and from a technological standpoint.
Partnerships between universities and renewable energy companies are becoming more and more common as a result. For example, REC Solar has developed a renewable energies lab at California Polytechnic University where students can learn, the educational offerings of the university are enhanced, and the team at REC is learning how to operate their own assets better. Over time, it’s almost certain that more and more evolutions of this kind will be created between private and public sector organizations to move the renewable energy movement forward.
There are so many topics discussed in this episode, you’ll want to hear the entire thing, so be sure you listen.
Resources & People Mentioned- Michigan State University
- REC Solar
- California Polytechnic University
- The Smart Energy Decisions Forums
- Wolfgang Bauer on LinkedIn
- Scott Therian on LinkedIn
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Corporate Deployment Of EV Charging Infrastructure with Rob Threlkeld and Craig Noxon, Ep #2
Episode 2
lundi 9 septembre 2019 • Duration 43:10
Naturally, as any consumer technology becomes available to the public, the supporting infrastructure has to be developed right alongside. That’s the only way it can become widely accepted. But it’s not as easy as “just doing it.” There are many obstacles, financial hurdles, and unforeseen difficulties that have to be overcome. This conversation dives into what’s happening behind the scenes in the electric vehicle industry to deploy EV charging infrastructure across the nation.
John’s guests are Rob Threlkeld and Craig Noxon. Rob is the Global Manager of Sustainable Energy, Supply, and Reliability at General Motors, one of the many automotive suppliers leading the way toward EV adoption. Craig is Vice President of Enterprise Sales at REC Solar, a Duke Energy company. Both men have a unique insider’s view of what’s happening to build out the infrastructure necessary for wider adoption of electric vehicles, so be sure you listen to hear what’s happening on the ground across the nation to promote the purchase and use of electric vehicles.
Outline of This Episode- [1:10] The increasing demand for EV infrastructure - what’s your experience?
- [7:06] Obstacles in meeting the demand for EV infrastructure
- [11:09] How retailers can benefit from investing in EV charging infrastructure
- [13:13] Can commercial fleet electrification over tax the electrical supply?
- [23:33] What could accelerate adoption of Electric Vehicle infrastructure?
- [37:00] The hot topics to watch over the next few years
- [41:00] Final thoughts: Corporations and individuals need to get involved
Many businesses across the country are noticing the advantages that can be had by providing EV charging stations at their retail locations. When customers who own and drive electric vehicles have a place to park and recharge their vehicles, it naturally follows they will frequent the establishment that provides it - and make purchases there.
In retail, that's worth noticing. Anything that produces a competitive advantage is going to be seriously considered. Rob and Craig discuss how retailers, automakers, and local utilities are working together to roll out more EV charging stations at retail locations, on this episode of Beyond the Meter.
20 million EVs on the road in the next 10 years - what will that require from an energy perspective?As more and more electric vehicles hit the road, many things will be needed to both support and sustain the shift away from traditional fossil fuel vehicles. What sort of things need to happen?
- There will undoubtedly be Increases the amount of energy that utilities must provide for EV use
This means that infrastructure decisions and innovations must be top of mind now so that when the demand arrives, we’ll be able to meet it.
- The demand for EV infrastructure will continue to grow
It’s not only the electrical suppliers that need to think about the infrastructure - employers, corporations, and even leaders of municipalities need to be involved, taking steps to ensure that the technology and innovation needed to serve their communities is happening. Demand drives supply - always.
- Storage issues will need to be considered
Imagine the energy demand required if a good majority of those 20 million EVs were charging at the same time. Would the electrical supply chain be able to handle it? It will if we think ahead about the storage needs required to pull it off. We need to ensure that energy produced during “non-peak” times can be stored effectively and economically so that it can be used during peak times - which means the storage technologies we have now need to be improved and increased across the board.
EV as a service could be a very real possibility in the near futureOne of the most encouraging things happening around the move to electric vehicles is that partnerships between energy suppliers and automotive manufacturers are being formed to help consumers make the transition. Plans are being considered to provide “EV as a service” to interested consumers.
These agreements - much like a traditional automotive lease - would potentially provide not only the vehicle, but also the energy, access to the charging infrastructure, and more. Imagine it - consumers would be able to receive a complete EV solution from one provider.
The “sharing economy” might come into play as well. Conversations are happening around the idea of “stranded assets” such as fully charged electric vehicles that are sitting idle, being used to provide electricity back to their local utilities, for other users to “borrow,” and more. Listen to learn some of the great ideas being considered.
What to expect 18 months from nowThe move to EVs is happening rapidly. That means many more changes could happen in just the next few years. As the conversation wrapped up, John asked his guests what they see coming in the next 18 to 24 months.
Both agree that more electric vehicles will be on the road, more will be offered by a wider variety of auto manufacturers, and additional investments in battery technologies will be made, enabling batteries to be produced with decreased costs.
At the same time, the challenges of scaling EV infrastructure will become evident. As demand increases, cracks will be discovered in the existing infrastructure that will have to be addressed. And, many strong players in the industry will emerge and begin to lead the way toward innovation and further changes.
Finally, John believes that a more solid and definitive business case for the electrification of commercial fleets will be made within the next few years. Data, showing the benefits of fleet electrification will begin to have an affect. That will lead to more definitive and strong plans by utilities to support fleet conversions.
Resources & People Mentioned Connect with Rob and Craig- Rob on LinkedIn
- Craig on LinkedIn
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