Top Clean Energy and Climate Trends for May 2014

Author: James Glave
Webinar Produced By: Clean Energy Canada
Original Article: Top Clean Energy and Climate Trends for May 2014

What are the most important trends in climate change and clean energy today? If you’d joined our debut Clean Energy Quarterly webinar earlier today, you’d already know. In a packed hour, we presented the highlights from the hundreds of news items curated each week in our Clean Energy Review weekly digests.

We also welcomed three special guests: Jim Burpee, the President and CEO of the Canadian Electricity Association, Cara Clairman, President and CEO of Plug’n Drive, and David Berliner, the co-founder and CEO of CoPower.

Here’s a quick recap for those who weren’t able to join us:

Solar’s Moment in the Sun

The year started with Deutsche Bank issuing a bullish demand forecast for the global solar industry, building on four consecutive years of growth in utility-scale solar, which has largely been driven by China, Germany and the US

We also saw the world’s largest concentrated solar power plant open in the Mojave desert, which generated a lot of attention, and we’ve started to hear more frequently about the transformativepotential that solar and renewables more broadly offer, and the disruption they are already creating for the business model of traditional power utilities

So far this year the numbers we’re seeing are impressive – in the first quarter Bloomberg New Energy Finance tracked a 10 percent increase in clean energy investment over the same period last year, with a 23 percent increase in solar investment. Noteworthy in this result is the fact that there was really strong growth in rooftop solar.

Clearly, solar has emerged as the flavour of the day, driven in no small part by the dramatic reduction in solar panel hard costs, which is improving cost competitiveness.

We’re also seeing a mainstreaming of solar as individuals are empowered to put solar on their rooftops. There are some innovative models out there for leasing and financing rooftop solar, and partnerships with recognized brands, like Home Depot. It’s getting easier for people to assume some control over their own power production, and that’s powerful.

In Canada, we’re seeing progress on three new commercial power plants that will be built this summer in Ontario by a company called Canadian Solar, which was ranked as the best performing solar maker last year, and is definitely a company to keep an eye on as they ink deals in Canada and around the world.

Unusual Suspects Step Up

We’re also witnessing the arrival of big-brand, non-energy companies—unusual suspects, if you will—into the renewable energy marketplace.

We already know that a lot of non-energy tech companies are making serious investments in renewables—either buying wind and solar farms outright or investing in them. Think Apple, Google (more than $1 billion investment now), Intel, and Facebook.

What is interesting is that we also increasingly seeing a lot of “unusual suspects” from beyond tech, like Whole Foods, REI, and MARS, which just announced a wind farm in Texas, and Ikea, which now owns wind farms in Canada and the United States.  Globally IKEA is Investing $2 Billion in clean energy and efficiency investments. The company hopes to be net zero for energy by 2020.

This is more than just the usual P.R. effort we’ve seen in the past, i.e. recycling. That’s because some of these brands are advocating for policy reform and using blunt language.

IKEA in particular is speaking up about the need for climate action: “Business needs policy leadership including legally binding targets on CO2, renewable energy, and energy efficiency —  to build a low carbon economy.”

It’s just becoming mainstream good business practice and these companies are flexing their corporate muscles to send a message to their governments— and shareholders. At Apple’s annual meeting,  CEO Tim Cook told a group of climate deniers to “get out of the stock.”

Why is this happening? Three reasons:

1. There’s money to be made from renewables investments and risk to be mitigated. Energy independence helps a company insulate against rising energy costs. Tech companies spent a lot on energy, so does IKEA, big stores use a lot of energy.
2. Leadership sends the right message to customers; the younger generation has greatest support for energy and climate leadership. IKEA wants to be associated with sustainability. They want to be hip, these days this this is how to do it.
3. They have a stake in climate disruption: In January the New York Times flagged that many leading U.S. brands  like Coke and Nike now view climate disruption as a force threatening lower GDP, higher food and commodity costs, broken supply chains, and increased financial risk.

China Gets Serious

Most people think about China and they immediately conjure up those headline statistics about coal plants, but the reality is that China is making a huge push on renewable energy. In 2013, for the first time, China installed more clean energy capacity than fossil fuel based power generation.

And they’re not stopping. China aims to more than double its wind capacity in the next six years, and is also pushing hard on solar and hydro while also considering a massive tidal power plant.

So what’s driving this clean energy push in China?

There is no single driver, but really it’s a confluence of forces.

There’s international pressure for China to act on climate change and reduce carbon pollution, so we see China mandating the reporting of CO2 emissions by firms and piloting carbon trading markets.

But there has also been a huge domestic driver in the form of growing unrest around air pollution in China’s big cities.

The Chinese premier has declared war on smog, and the government committed to taking action to remove high-emission cars from the roads—and while we won’t touch on it today the Chinese are positioning themselves very strategically on electric vehicles—but also by closing some coal-fired power plants.

Canada has a great opportunity to export clean energy technologies and services to the Chinese—and polling by the Asia Pacific Foundation found that Canadians would like to see these exports take priority.

Guest Presentations

We were pleased to welcome three guests on our webinar, and they have kindly agreed to share their presentations here.

Cara Clairman, executive director, Plug’n Drive

Jim Burpee, president and CEO, Canadian Electricity Association

David Berliner, co-founder and CEO, CoPower

Will the next big thing for EV happen in 2014?

I am going to rip off a statement by my good friend Paul who has been in the automotive industry for many years.  2013, the year that wasn’t.  That was his comment with regards to electric vehicles and the technical non-advancement that happened in the EV category. While more EV's and PHEV's came to market (Focus, Cmax, smart ED, etc) they all seemed to be based on the same technology ie; achieved the same range and charged in about the same time, as those already on the market. And to be honest, I don't see that changing this year either.

What we will see is a huge build out of EV charging infrastructure, with more Superchargers from Tesla, more DC Quick chargers in BC, Ontario and Quebec, and hundreds and hundreds of L2 commercial chargers from Chargepoint, us at Plug'n Drive, Add Energie, and Aerovironment. So I predict this year to be the breakout year for infrastructure.

Interestingly, Nissan is installing DC Quick chargers all over the US at many of their dealers. For now they are Chademo standard, which only charges iMiEV and Leaf, but could have the new SAE Combo standard added. Would be nice to see Nissan install DC Quicks in Canada, but I doubt it.

As for progress with EV's, my prediction for 2014 is we will just see more mfg's enter the marketplace with a PHEV/EV, sold first as a compliance vehicle in California, and then spreading to other States and Canada. Not a bad thing. The public has said they want more choice in this segment. But I think we will have to wait until 2015 to see cheaper EV's with greater range. For example, I like the Tesla vs GM rhetoric that has been flying around (mostly from GM and the media) about GM beating Tesla to the punch with a $35K, 200 mile EV. If Elon keeps his eye on Tesla, and not Mars, my money would be on Tesla. EV is all they do keeping them focused on the next step. But I wouldn't count GM out. That 200 mile range will be all about the battery. As a global company GM is in every corner of the R&D world. If someone builds a better battery, they will know about it.

But a vehicle to watch imho is the plugin hybrid pickup truck. I suppose you could argue that all the previous segment busters were new body styles and a PHEV pick up will not necessarily look any different. But segment busters were also about utility. Minivans carried more people, sport utilities extended a vehicles off road capability without looking and driving like a pickup. A PHEV pickup will satisfy all those who love pickups, but put a green spin on the segment helping the buyer feel less guilty about their purchase (surely in this day and age they must feel some guilt, surely!). This vehicle will provide greatly enhanced fuel economy (over other pickups), the versatility of a mobile power source (110V and even 240V on board power) all wrapped up in a package that does not compromise what pickup owners love...power, big rig status, hauling, towing, off road, and 4 doors (for the family don't you know).

The only company I am aware of making any progress with a vehicle like this is VIA Motors (viamotors.com) out of Utah of all places. They are focused on the fleet market hoping to prove their vehicle on the job. Contractors, utility line repair, emergency services (get rid of idling but still keep on board communications and HVAC running), farming, military etc. As we know, the pickup truck is still king and outsells every other vehicle segment in North America. For some, it is a necessity. But who wouldn't want to save money on fuel, enhance the functionality of the vehicle, have a more comfortable driving experience (reduced noise, less visits to the gas station), reduced maintenance costs all combined with (almost) guilt free driving?

Certainly the polarizing appearance of electrics like iMiEV and smart are not going to take EV into the mainstream. Tesla knew high end, high performance sports cars would not only provide proof of concept but also sell! As long as the vehicle could provide the performance and exclusivity of other high end exotics in that class. So ergo, PHEV pickups. The market is ready for the next great thing in this technically stale segment. A truck that, with good intentions, tries to keep up with the move to a sustainable world. At the moment VIA Motors is an underdog in the EV world. Time, gas prices, and the willingness of the general (pickup driving) public to believe they personally can do something to lower their carbon footprint, will tell the tale.

Advancing EVs by recognizing the top EV dealers

A blog by Plug'n Drive President and CEO, Cara Clairman

As you know, at Plug’n Drive we are big fans of electric cars because of their potential to reduce CO₂ emissions while at the same time using surplus off-peak electricity that is made locally, providing local economic benefits. And of course cleaner air benefits all Canadians.

As a group that spends a lot of time doing outreach and education, we  know that drivers have some common concerns about switching to EVs, such as the location (and number) of public charging stations, the vehicle models available, the  driving range  and the price tag to name a few..  However, , the EVs on the market today can meet the  needs of many Canadian drivers -   Natural Resources Canada (NRCan) stats tell us that most Canadians drive 50 kms or less a day; that’s well within the EV range.

Its easy to be optimistic about EV - battery life is steadily improving, the climate imperative is increasing, charging station networks are expanding, a number of provinces across the country have rebate programs in place and more and more models of cars are coming online every year with lower price tags.  Taking all these developments together, EV success is no longer an “if” but a “when”.

What else can be done to make it easier for drivers to choose an EV? One area of opportunity we see is on the sales floors of car dealerships. There are some car dealerships in various regions across the country that are doing a fantastic job at pairing their customers with electric vehicles. This is true despite the fact that, at present, the profit margins can be less on EVs – which means a salesperson might make less money selling an EV over another model – and despite the fact that it often takes more effort to sell an EV because it's different, is relatively novel and needs more explanation than a more familiar car, and despite the temptation to sell cars that generate more revenue on service than EVs which are known for low maintenance costs.

What is the difference between dealerships that are growing EV sales and those that are not? There is some evidence that suggests an important factor is having knowledgeable sales representative willing to go the extra mile to promote EVs as a viable option. There are ever-more environmentally-conscientious customers who are hungry to make choices with their dollars that lower their carbon footprint. And there are even more still who are willing to lower their carbon footprint if it’s easy and convenient and saves money. Dealerships that take steps to encourage the adoption of EVs become partners with consumers to help solve one of Canada’s energy and environmental issues.

Recognizing the potential benefit of identifying and rewarding dealerships that have found ways to help consumers to choose EVs, Plug’n Drive has partnered with the Canadian Electricity Association to create the very first ever Canadian EV Dealership Awards.  We want to celebrate those top EV dealers and encourage others to take a page out of their playbook.

The awards will be launched at Electric Mobility Canada's EV2013VÉ conference in Ottawa, Gatineau on October 23^rd and the first awards will be presented at the EV2014VÉ conference.

For more details on how this exciting contest is going to work, check out www.electricvehicleawards.ca.

Whether you are selling EVs, driving an EV, participating in the industry, or simply observing,we look forward to your participation in this initiative! 

Innovation and EVs - Creative Critical Thinking for Business Success & Environmental Stewardship

A guest blog from Plug'n Drive Intern: Liane Langstaff

As an Environmental Sciences graduate and as a current JD/MBA student at Osgoode Hall Law School and the Schulich School of Business, I have always been fascinated by questions involving environmental law, sustainability and business. This summer, as an intern at Plug’n Drive, I was able to apply my skills and interests to the case of electric cars.

Framing & Reframing …for Good

One of lessons I learned in my management courses was the concept of framing and re-framing business problems. Although the status quo can be safe and profitable in the short-term, in our global economy business leaders need to re-evaluate existing strategies to prevent stagnation.

In the environmental field, this creative critical thinking is even more valuable. After all, Einstein once said, “we can't solve problems by using the same kind of thinking we used when we created them.”

Global environmental problems like climate change and air pollution are not going to go away simply by practicing business as usual. Instead, creative thinking must overcome traditional beliefs about society and business.

Creatively Challenging EV Design

Electric cars are the prime example of this creativity at work. Invented in the early 19^th century, hurdles such as battery size and car range, put the potential of the electric car on hold for over a century.

Now, innovators are breathing a new life into electric cars, by overcoming those same barriers that were once taken for granted. Most notably, Elon Musk has fundamentally changed the way we conceive of electric cars by establishing Tesla Motors.  Building customized electric cars that can go over 500 km on a single charge, Musk also changed the perception of electric cars from ‘dinky’ golf-carts to stunning and robust sports cars. Other automakers have also ushered in change, expanding EV options to suit different consumer preferences and lifestyles.

Making EVs the New Normal

Apart from the improvements to the design and functioning of the new-wave EVs, EV sales and marketing is also undergoing rapid change. While early electric and hybrid advertising focused on the distinctive environmental benefits of the cars, marketers are coming around to the fact that many consumers are not willing to spend more, or make performance trade-offs for more sustainable products. One of my business professors, Garrick Ng, once said that the main task of sustainable business is “to make green products seem normal instead of making normal products green”.

Several automotive companies are taking this wisdom to heart. In the spring, the Nissan Leaf campaign focused on the EV’s potential to save consumers money rather than saving the planet. Likewise, Chevrolet’s campaigns have focused on portraying Volt drivers as America’s “everyman”.

Humour can also be a powerful tool to challenge pre-conceptions that EV owners are ‘crunchy granola hippies’ (although in all honesty I don’t see what’s so bad about granola). The Fiat 500e’s hilarious “environmentally sexy” commercials demonstrate the appeal and fun of driving an EV. (See: http://bit.ly/12bk3gM). The engaging ads overcome social stigmas and beg the question, if driving an electric car is more fun, easier and cheaper than driving a gas-guzzler, why wouldn’t you choose an EV? The environmental benefits are simply the icing on the cake!

Overcoming the ‘Chicken and the Egg’ Debate - Creativity in Public Charging Infrastructure

Plug’n Drive tries to bring these innovations in EV technology and marketing to the forefront through our education and outreach efforts. However, Plug’n Drive has become an innovator in its own right with the unveiling of an open network of electric vehicle charging stations, Charge My Car on the Road.

Previously, electric cars faced the age-old ‘chicken and the egg’ problem. Although most people charge their EVs at home (and will continue to do so as it is an inexpensive and easy option), several studies out of California and Europe have found that for EVs to reach a wider consumer base, Electric Vehicle Supply Equipment (EVSE’s) must be available in the community. Essentially, until people see electric charging options at their grocery stores, their favourite coffee shop or in their work parking lot, they won’t consider the cars. On the flip side, businesses and organizations, although interested in purchasing chargers, did not want to install new devices until they received a critical mass of requests.

To overcome this chicken and egg dilemma, Charge My Car on the Road makes commercial EV chargers widely available. As the lowest priced smart charger on the market and with an open network and Smartphone user access, EV drivers can easily find, pay for and use public chargers across Canada. With more businesses requesting the charging stations every day, Plug’n Drive is gradually overcoming this critical barrier.

Final Thoughts

Electric cars have a come a long way. However, we can’t rest on our laurels; the stakes are simply too high. We must continue to push the envelope on EV design, marketing and infrastructure. After all, creativity isn’t just for art class anymore - it’s critical to global business and to overcoming the world’s most pressing environmental problems.

Driving with electricity is much like sailing with the wind.

When it comes to thinking about EVs, I always go back to the sailing analogy. Obviously, sailboats and EVs are both quiet and they both harness natural energy. But another thing that strikes me is the similarity between the journeys. A powerboat is all about A to B, as fast as you can. You can't hear the birds, you don't see the fish and the shoreline whips by in a blur. You care not for your impact on the land or water because you're only on any one part of it for a fleeting second.  The same is true for gas powered cars.

In a sailboat the opposite is true. You care about where the wind comes from, you watch the birds, look over the rail and see the fish below, pay attention to the geography (with charts) so you don't run into anything.

Your journey in an EV is different than in a gas car, true.  But I argue, certainly a richer experience. Your stop to charge allows you to see and maybe spend time in a place you would have whizzed by. You could plan to enjoy a relaxing meal out together with your significant other while stopping for an opportunity charge. You would pay more attention to the local terrain (uphill, or downhill with regen). You probably consulted a map to locate charging stations on your route thus familiarizing yourself with the geography.  And you blazed a path for others to follow with your EV so they too know how easy it can be to drive electric. How great is that!? In a gas car it would have been A - B, no joy in the journey, just another tank of dino-juice up in smoke.

To take the sailing analogy one more nautical mile, when I drive in an EV I feel like an early sailing explorer. Descarte, Cortez, Columbus, pointing their ships into uncharted waters, searching for new lands and riches, yes, but also new knowledge.

I feel our journey in an EV is about new knowledge.  Knowledge that could help mankind live on the earth in harmony with nature. Not as her predator, but as part of her plan. I think you could share that feeling of discovery by driving an EV.  We at Plug'n Drive look forward to hearing more about your journey through uncharted waters in your EV.  You could do that by commenting on our blog, posting on our Facebook or Tweeting us.  Fair weather!

Ron Groves is Manager of Education and Outreach at Plug'n Drive
ron@plugndrive.ca

The Case for a National EV Charging Network

When we first started out with our goal of accelerating the adoption of EVs in Canada, the task seemed somewhat daunting. There were only three battery-powered vehicle models available, if you could find one at all (many dealers didn't carry them). Most people had never even heard of an electric vehicle, let alone sat behind the wheel. At Plug'n Drive, we believe that Canadians need more opportunities to learn about the benefits of these new cars and kick the tires. After hosting more than 150 events in Ontario—and witnessing the incentives, growing awareness of benefits, rising gas prices, and climate change concerns that are spurring interest—we are more convinced than ever that we are approaching a tipping point.

There are now more than 180,000 EVs on the road worldwide, including more than 3,000 in Canada. The United States recently passed a milestone with 100,000 EVs now on the road. The all-electric Nissan LEAF is the top selling car in Norway and the Tesla is the Motor Trend car of the year, also earning Consumer Reports’ highest rating ever. (The latter publication said the Telsa deserves top honors not because it is an electric but in spite of it!) More makes and models are rolling into Canadian showrooms, including the frisky Chevy Spark. 

Canada has every reason to be a leader in EV adoption. Power grids in British Columbia, Manitoba, and Quebec are predominantly hydroelectric—making for very clean “fuel.” Ontario will kick coal off the grid forever later this year, in lieu of nuclear, hydro, natural gas and an increasing share of renewables. Depending where you live, the EV you buy today will likely run even cleaner tomorrow. But then there’s “range anxiety.” The idea of running out of juice beyond reach of a charging cable scares off many would-be EV drivers. Even though the majority of plug-in owners today charge up at home overnight, for many this presents a serious psychological barrier. 

Enter the opportunity and imperative of well-planned public-charging infrastructure. Canada needs a national charging network that links all public chargers together, from coast to coast—and that drivers could access at any time via smartphone or web browser. The network would tell drivers where the closest charger is, as well as its availability and cost. Such a system would be convenient, and would also enable electrical utilities to anticipate and plan for capacity crunches. This is not an unachievable dream—it is already beginning in Quebec, B.C., Ontario and New Brunswick.   

This is a critical time for the evolution of our surface transportation. Awareness of EVs and their environmental and economic benefits is increasing, our electricity systems are getting cleaner, and every major auto manufacturer either offers an EV or is about to. Infrastructure is expanding, but we don't want to end up with 10 different EV networks—each with their own card or separate maps.  We have the opportunity to significantly reduce greenhouse gas emissions (by up to 90%) from transportation and at the same time help consumers save money on fuel (as much as $2000/year) if we figure out how to remove barriers to adoption.  If we create one easy to use network, we all win.


By the way, if you're in Toronto on Thursday, July 18th, be sure to come to Yonge-Dundas Square for Plug’n Drive’s second annual EV Day, where every make and model of EV will be on display and available for test drive.


-Cara

Cara Clairman is the President and CEO of Plug'n Drive.

Why aren't electric vehicles making record sales?

A blog from Plug'n Drive's Manager of Education and Outreach, Ron Groves. Despite the fact that electric cars are doing much better than the Prius did when it first came out, the media love to harp on "dismal" electric vehicle sales. There are lots of guesses as to why this is, but no real answers. So, why aren't electric vehicles making record sales?

Is it the money? Yesterday, we learned that there are 118,000 millionaires in Toronto alone. Not to mention that after five years of driving, your electric car saves you $2,000 and $3,000 a year. Everyone can afford them.


Is it the range? Statistics Canada has learned that most drivers travel less than 60 km a day 95 per cent of the time. You want to go on a long trip? Take some of the money you're saving not pumping gas into your car to rent a Mustang convertible for the weekend. An electric car will more than get you to and from work every day. 


Is it the time it takes to charge? Think about where your car spends most of its time... the mall, the grocery store, the hockey arena? No, it's your driveway or a parking lot! Plug in when you get home, and by next morning, it's fully charged. Who cares how long it takes to charge, you were sleeping.


Is it the batteries? You're not driving a flashlight. Electric car batteries are durable and reliable. You will never have to replace them. They won't just turn into a brick when the warranty runs out. Will they hold as much of a charge 10 years later? No, probably not, but after 10 years your gas engine ain't ticking the way it used to either.


No, it's not any of those things preventing people from buying electric cars, it's an unwillingness to act. I've heard all the excuses, and what it boils down to is a bunch of excuses to do nothing. Get out to a dealer and take an EV or plug in hybrid for a test drive. No more excuses, it's time to act or Mother Nature will act for us.