Monday, August 15, 2011

When Energy Efficiency is a Trap

Massive new programs for energy efficiency are being deployed all around, and however wonderful they are, when they are applied in the right places, it remains equally true that under certain circumstances, they can be disastrously wrong.

As pointed out throughout this site, there is a huge class of buildings in New York, in the form of the City's old-line apartment buildings which because of their size and proportions make excellent targets for deploying renewable energy, yet they are caught up in the energy efficiency craze, and in the process destroying their renewable energy potential with tax payer subsidies.

The key insight is that the two investment strategies energy independence and energy efficiency of existing infrastructure are mutually exclusive, and progressively so. In other words if your building at the outset had a reasonable potential do switch to a largely renewable infrastructure, then every investment you make unthinkingly in energy efficiency of your fossil-fuel based infrastructure makes it harder financially to switch to the renewable energy strategy.

Successive investments in energy efficiency do not cumulatively add up to energy independence, on the contrary, they act to postpone energy independence indefinitely, and perpetuate your building, as a consumer of fossil fuels, albeit an ever more efficient one, and from that point of view they are customer acquisition programs for the fossil fuel based economy. In short, if there is an alternative, to unthinkingly commit more and more money to becoming simply more efficient in consuming fossil fuel based energy, is a bit like a junkie learning to 'manage' his habit.

The current spate of programs that are geared to achieving an 15% reduction in energy usage across the board, becomes a self fulfilling prophecy, as in the process there are thousands of buildings that would have been capable of 60-80% reduction of fossil fuel based energy usage, but they will never make that change, because of a whole system of incentives and programs that encourage them to make small incremental changes in usage, in lieu of radical re-engineering their energy systems and achieving deep energy change.

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