E2C2 LLC

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energy / environment strategies

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getting designers to think entrepreneurially

One of my interests in attending the Green Technology Academy this week has been to learn to think more like an entrepreneur. Most designers, myself included, are pretty good – to excellent – at coming up with interesting ideas. However, the other aspect of entrepreneurship besides creativity is turning those ideas into action. I’m trying to learn more about that side of the equation, not only for myself, but to be better informed when I teach design to others. Not all designers will want to become entrepreneurs themselves but in all likelihood they will work with, or for, entrepreneurs sometime during their careers. They should know how entrepreneurs think, and how they can better contribute to the innovation process. The creative idea is likely just the “end of the beginning” of the innovation process, to paraphrase Winston Churchill, and designers must learn how to participate throughout all stages of development.

elevator pitches and greentech speed dating

Biofuels, better fuel cell membranes, energy saving Internet routers, these are among the 30 plus ideas that researchers are try to turn into potential business propositions at the Green Tech Entrepreneurship Academy (GTEA). As graduate students and university faculty are learning at this intensive 5 day course in entrepreneurship designed and run by the University of California at Davis School of Management, it takes much, much more than a great idea to make a business. Day two of the GTEA had participants crafting 30 second “elevator” pitches to describe their concepts to would be investors. A crash course in seeking and securing venture capital followed. Key to all entrepreneurial activities are extensive contacts with prospective customers, backers and collaborators. A highlight of the day featured one researcher, presently working on energy saving router software, speaking live with a potential customer from Cisco. Later in the evening every would be entrepreneur got the opportunity to fine tune their pitch in a “speed dating” session with a group of angel investors. This exercise provided an amazing amount of feedback in a short period – and potential investment contacts. Needless to say, it was a very full day.

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networks and green entrepreneurship

Creativity plus Entrepreneurship equals Innovation. So says Prof. Andrew Hargadon of UC Davis School of Management, here at the Greentech Entrepreneurship Academy meeting at Sierra Nevada College on Lake Tahoe. Many have great ideas and some have the entrepreneurial drive, but to make things happen you have to possess both qualities, plus have a great network to support your work. A network may be both part of your product and your support and delivery infrastructure. Mostly, however, it’s access to people with knowledge and other resources. Build a good network and your likelihood of success is much greater for your great green idea.

green entrepreneurship

I’m here at Sierra Nevada College, on Lake Tahoe, to learn about green entrepreneurship, courtesy the University of California at Davis’ School of Management. About 40 of us, grad students, post docs, academics and professionals, will participate in 5 days of lectures, seminars and workshops about turning green tech ideas into viable businesses. I will be posting every day.

opening the economy/environment conversation

I’ve been thinking a lot about the economy/environment challenge and have produced this video Talking about the green economy on You Tube.

a slower road to the green economy than we hope?

Even with signs that the economy has bottomed out, slow job recovery looks likely. Given recent events employers will be cautious about rehiring, preferring to keep present staff levels and seeking instead to increase worker productivity. In theory the prospect of a transformative green economy promises a lot for an otherwise gloomy employment picture. Prospects include plenty of jobs at all skill levels: from highly trained engineers, materials scientists and IT experts working on electric vehicles, building a smart grid and solar technologies, to less skilled manufacturing and installation workers implementing renewable energy and energy efficiency systems for millions of American homes and businesses.

 

As with most economic transformations however, this one is not going to be as fast or smooth as we might hope. Most of the goods and services comprising the green economy aren’t things people rush out to buy the first time they start feeling more financially confident. Many of the green economy’s products are infrastructure related or big ticket items like housing and automobiles; purchases that will probably be postponed longer than in the recent past.

 

We have to start building the green economy now. But it will not happen overnight. We are an impatient society; this is one of our strengths. Who can blame someone who needs a job or whose mortgage is in jeopardy for wanting to see rapid economic improvement? But the following vignettes, as promising as they are in most respects, suggest that the trip to the green Promised Land may take longer than we wish:  

 

  • The recession is bringing substantial consolidations to the solar industry, which has invested heavily in production facilities during the past several years and now faces weaker demand. This over – capacity is good news for some solar project developers and consumers since solar panel prices should fall further, but bad news for the solar manufacturing industry and its employment outlook.
  • Even with lower prices for solar and public subsidies, many home and business owners will remain wary of assuming additional debt for solar and energy efficiency projects, except in states such as California where substantial subsidies and highly attractive paybacks are available.
  • The American Recovery and Reinvestment Act features a host of green initiatives. www.recovery.gov.  Among them, the Act includes the high performance Green Buildings Fund, which targets $5.5 billion to bring Federal buildings up to green specifications.  But, projects in this green portfolio may take up to 2 years to bid out and several more to construct, so the jobs bounce won’t be immediate. The Department of Energy has also recently announced almost $500 million in support of geothermal and solar energy projects and R & D , which is welcome, but not an overnight jobs program.
  • Development of a Smart Grid will proceed because it makes operational sense. But there is controversy about its implementation. Will this be a top down affair, driven by the utilities or a bottom up approach spearheaded by individual producers/consumers such as homeowners and small businesses equipped with renewable power technologies? . In all likelihood utilities will play a major role but it seems unlikely they will be able to monopolize the system, keeping smaller distributed power producers off the network. At any rate, the Smart Grid will be a work in progress for decades, particularly as millions of grid points are added.
  • When the green jobs materialize people will need the skills to carry them out. Delivering training will take time. The good news is that training and education programs can begin quickly. Once they are trained however, people will need to be located where the jobs are found. For example, folks in Michigan, with a nation leading unemployment rate of about 15% may not be best positioned for solar manufacturing and installation jobs, which are more likely to be found in the Southwest. .
  • With new housing construction still quite moribund, at less than half of what it was last year at this time http://www.census.gov/const/newresconst.pdf a huge market for renewable and energy efficiency products and services remains depressed. Until housing recovers the focus will necessarily be on retrofitting existing homes and buildings – a good thing, but sometimes harder to implement than incorporating green technologies in new construction.
  • While electric vehicles may ultimately provide a substantial answer to global clean transportation needs the automotive product development cycle is often 5-7 years for a new model, especially one that incorporates new technology. We shouldn’t hold our breath as the industry retools for green cars. Even the poster car for the restructured General Motors, the plug in hybrid Chevy Volt, has been the subject of delay rumors as GM grapples with developing a strategy to achieve profitability as soon as possible.   Conventional, high mileage vehicles manufactured overseas and sporty cars like the Camaro may figure in GM’s short term recovery strategy more prominently than the Volt, which will likely be a money loser at first.
  • On a positive note Recovery Act monies allocated to weatherization of lower income Americans’ homes may begin to produce employment and energy results quite quickly

Products and techniques for weatherization are well established and training and installation programs quite simple so this may have short term positive impact on jobs.

Finally, we are pleased to note an explosion in the demand for domestic chickens as pets and food sources. Yes, chickens are green, clucking around suburban back yards providing eggs, manure and perhaps the occasional McNugget. We don’t know how much employment has been created but hatcheries have been unable to keep up with demand.

learning from Las Vegas and sensor city; promise or peril

 

 

The Strip from the Bellagio

Deconstruction in the Desert

In 1972 architect Robert Venturi and colleagues published a monograph titled Learning from Las Vegas. This controversial and influential manifesto celebrated the Strip’s garish signs and over – the – top architecture.
 
Venturi et al named the Vegas casino style the “decorated shed,” meaning essentially a simple structure with elaborate ornament. They went on to make a sophisticated argument on behalf of this design approach in opposition to the modern architectural style that prevailed at the time. Less skillful architectural practitioners then took Venturi’s precepts as a call to post modern excess and created a whole generation of buildings adorned with cartoonish references to classical structures.
 
Today, what we learn from Las Vegas is not the value of ornament. Rather, much like the present national economy, LV is a great example of what happens when the market operates generally unfettered by regulation. For a while Vegas had cheap, plentiful housing, lots of jobs, and low taxes. Tourists flocked to the ever – growing outlandishness of the Strip. The whole business sprawled across the Mojave with subdivisions bumping against surrounding mountains. The place went from 200,000 to 1.8 million residents in about 30 years.
 
Vegas was among the first cities to feel the housing bust, beginning in 2006. This was fueled by too much easy credit, speculation and overbuilding. Then, a slowing national economy put the bite on the tourism. Tourist bookings are down more than 10% this year and the all important gambling take is off by significantly more. Several casinos are considering bankruptcy.
 
At this point, one wonders now how long it will take to sell all those empty subdivisions and condos, and to restock the gambling venues.  The fundamental ecological question also remains unanswered; how long will the water will hold out?  There’s been a 12 year of drought in this parched region. It takes more than solar energy and jobs to make a place livable. On the positive side everyone seems aware of the precious water resource and the hotels are serious about water and energy conservation; except for the elaborate public fountain displays that epitomize Vegas excess. One bright spot for sustainability is the Springs Preserve, a 180 acre former water treatment site now turned into a desert preserve, ecological living center and museum complex, located just a couple of miles from the Strip.
 
What’s the lesson from Las Vegas? Now that the music has stopped a lot of people have been left in the desert without much to do, not to mention water. The fundamental drawbacks of living in a harsh environment, dependent on a single industry have become apparent. On a recent trip, I overheard one visitor remarking that an enterprising tour operator was offering foreclosure bus tours. I can picture it; Tuesday the Grand Canyon and Wednesday Canyon Crater Estates. That gives new meaning to the term Ecotourism; which now it translates to Ecological and Economic Tourism.
 
Sensor City; Promise or Peril


 
Want to quantify the temperature, color, weight, pressure, presence or absence of something, if there is electrical current flowing, whether a substance is wet or dry, if it contains a particular chemical, and accomplish this without actual hands on measurement? This is what sensors do, and they’re getting smaller cheaper and more ubiquitous. They can be embedded in everything from cars to bridges, agricultural fields, to household objects. They may also someday be inserted in us and our food. Imagine a whole world of these things communicating remotely from wherever they are and linked in networks. This all sounds pretty geeky but the implications are both exciting, and potentially scary.
 
I’ve already written about the Smart Grid and how in the not too far future a series of devices, from home appliances and equipment at the consumer end, to a combination of conventional and renewable solar and wind energy sources at the production source, will be linked together. The Smart Grid, relying heavily on sensors, will match power supply and demand, potentially saving vast amounts of energy and money.
 
Commercial building automation systems, using a network of sensors throughout a structure, monitor not only temperature and humidity but also lighting levels, carbon dioxide and other substances, to maintain healthy air quality levels and a comfortable, productive environment. Public spaces can also be protected from chemical and explosive threats with the introduction of sensors.
 
Soon some supermarkets will employ shelving and freezer compartment systems equipped with sensors to alert managers and distributors when a particular stock item is low so that it can be automatically reordered and delivered. Light sensing eyeglasses have been around for years but advanced versions of this technology can be applied to windows and building cladding materials so that transparency can be modified to respond to changing weather and or privacy needs.
 
Roadways can sense traffic flows and adjust lane usage accordingly. Bridges can report on wear and alert engineers for maintenance, avoiding dangerous failures. Farmers will use inexpensive sensors in fields to assess water and fertilizer needs for precision farming, not wasting precious resources and the energy needed to deliver it.
 
Researchers are working on tiny sensors embedded in our bodies that report on the status of various systems and organs, providing early warning of problems and hopefully facilitating repairs. Some people already have tiny chips implanted in their pets to identify them in the event of loss or theft. These aren’t sensors but they suggest a pathway for the future, as nanotechnology delivers more easily implantable devices.
 
The rosy scenario for sensors sketches a world of intelligent objects communicating to optimize energy use, maintain vital infrastructure and monitor the health and welfare of humans, organisms and the communities in which we live. Sensors will be one of the building blocks of the Green Economy.
 
A darker picture is one of intrusive devices observing and reporting on our every activity with a concomitant loss of privacy and freedom. When and if we cross the threshold by allowing sensors within our bodies the mind begins to boggle at the consequences. However, most of us already carry around a piece of gateway personal sensing technology. Depending on the model, and the permission we assign to them, our cell phones can identify our whereabouts with considerable accuracy. Not surprisingly, the ACLU is concerned about the looming privacy and liberty issues surrounding these expanding sensor and communication technologies. Who knows where this issue leads?  

 

 

Read more articles on the E2C2 website…

Dystopians, Techno Boosters, and BTW Green Economy

It’s March, the economy’s terrible, the short term outlook is sobering and the longer term is highly uncertain. Obama’s honeymoon lasted about 20 minutes. Some Democratic pundits assert he hasn’t done enough to attack the ailing economy despite passing a huge stimulus package. On the other hand, Republicans lament the onslaught of socialism. Markets remain depressed and nervous, and the full scope of the bank and auto messes hasn’t been addressed. Scary prospects, like bankruptcies for GM and Chrysler and some sort of nationalization for Citibank and Bank of America, loom.                                                                                                                                                                              
 
Dance of the Dystopians
 
Where should you turn for advice or insight? If you’re tired of stiff – upper – lip, coping – with – the – crisis articles, how about indulging in some genuine pessimism instead? Profiled in a recent New Yorker piece (available online by subscription) are James Howard Kunstler, Dmitry Orlov, and Nassim Nicholas Taleb; three prophets of the current meltdown and fellow dystopians. If you thought Rush Limbaugh was the only commentator seeing a silver lining in a failed stimulus plan, think again.  
 
Kunstler correctly called the financial mess. But he’s also been railing at the economy and culture for years. Particular targets have been suburban sprawl: subdivisions, malls and the consumption that accompanies them.  He sees an opportunity in the current meltdown for a more localized economy that will somehow also herald a return to good taste in architecture and town planning.  
 
Orlov and Taleb come by their dark visions more autobiographically. Orlov spent his first 12 years in the Soviet Union. After moving to the America, he followed the ensuing economic chaos in Russia and former Soviet States. Taleb, a Lebanese Christian and former options trader, grew up in Beirut and lived through that country’s years of civil war. 
 
Orlov is the more practical dystopian, offering quite cheerful advice on coping with a collapsed society, based on his experience from the Russia. Taleb, on the other hand, doesn’t appear to relish collapse as much as Kunstler or Orlov, but asserts economic disaster will remain a threat unless we take into account the likelihood of unexpected and oftentimes disastrous developments. He calls these events, Black Swans, which are far more likely to occur than we anticipate, and wants to Black Swan – proof capitalism.
 
Techno Boosters Still Ascendant?
 
I may be in denial, but somehow I like the more entrepreneurial, techno – optimistic cosmopolitan, boosterish visions of the future promoted by Fast Company, Wired and MIT’s Technology Review, rather than the dark pictures sketched by the dystopians. Having said this, some techno visionaries like Ray Kurzweil and his expectation of the Singularity are almost as unsettling as the dystopians.  
                                                            
 
What About Green Amidst the Chaos?
 
Now, for the ostensible subject of this post.  Where are green building and sustainable enterprise left in these uncommon circumstances? Are they afterthoughts in an economy where businesses and consumers are concerned primarily with survival? I think not.
 
Bad economy or not, some of the framework for a greener future is in place, with more underpinnings sustainability on the way. Many major municipalities and states already have green building regulations in place. For the time being, some public agencies’ ability to build will be limited by the lack of cash. However, the President’s and Congress’ stimulus bill, called the American Recovery and Reinvestment Act, contains several sizeable green initiatives. Any significant building projects fueled by the stimulus package include will be green. At least $4.5 billion is allocated to the U.S. General Services Administration to convert GSA facilities to “High-Performance Green buildings”, making federal buildings more energy efficient.
 
Furthermore $4 million in funds were set aside for the establishment of the Office of Federal High Performance Green Buildings within the GSA, which office was created by the 2007 Act.  One caveat before celebrating; what’s green when it comes to the stimulus funded transportation projects is debatable. For example a planned bridge project here in Washington, DC is already subject of debate because the design allegedly increases traffic capacity through a residential area.
 
The Recovery Act also contains money to begin building a smart grid that incorporates more agile power supply and demand management particularly integrating renewable wind and solar power more effectively into the national electricity system. The stimulus also extends energy efficient weatherization programs and state grant programs to improve energy efficiency.
 
The promise of Green Collar jobs remains just that for now. Van Jones, formerly of the not for profit Apollo Alliance, a major promoter of the Green Economy, has taken a job in the White House under the Council for Environmental Quality as its primary advocate for a green economy and green jobs.
 
Green and Red Ink?
 
Greenbiz.com has just published its annual edition of the State of the Green Economy report. Major companies appear not to have abandoned their green campaigns and in fact they see them as consistent with the current economic situation. See Chevron, Weyerhaeuser, Waste Management, to name 3 prominent ones, feature environmental and energy responsibility prominently. Green, particularly, energy efficiency, is apparently congruent with economic recovery in the corporate lexicon. It remains to be seen how corporate communications will be translated into action during straightened economic circumstances.
 
On the consumer side, according to Joel Makower, of Green Biz, consumer polls still indicate commitment to green products but these assertions, like corporate PR may have more to do with atmospherics than with the allocation of dollars.

 
While this is undoubtedly a very distressing time for many Americans and others around the world, it’s also a time of great opportunities for those with vision and resources to move ahead with sustainable initiatives

the 3 “P’s”- Marketing Cleantech

The question asked by everybody, including greentech types, is what it takes to sell products and services in this poor economy? We suggest for greentech the answer is; most of the same factors that have always made products attractive to consumers and businesses, but now with even more focus. We call these factors the three P’s: price, performance and don’t underestimate panache.

 

 

3 P's facilitate green product introduction - click to enlarge

3 P's facilitate green product introduction - click to enlarge

 

Many of you familiar with marketing know the typical “S” shaped curve describing the penetration of new products in the marketplace. When a product is introduced there is typically a period of time where it experiences modest sales. This is the relatively flat, left “tail” of the “S” as people learn about the product and a few bold, early adopters them try it out. Then, if the product appeals for various reasons based on performance, price or the great intangible, panache (the fun, cool, or buzz factor), sales begin take off among progressive consumers, moving along a steeper portion of the curve.

 

Finally, if the product is popular and achieves mass market status, it hits the steepest section of the curve. Ultimately, sales flatten as most people who might be in the market for the product or service have now bought it, and replacement sales and conservative purchasers dominate.

 

While most greentech firms are undoubtedly pushing price and performance factors today we’re suggesting they also study the entertainment and luxury markets carefully and try to add as much panache to their offerings as possible, without compromising the other two “P’s.”

 

Three of our favorite examples of green marketing panache are ZipCar, GreenBox, and TerraPass. Each of these takes what’s essentially a fairly prosaic but environmentally desirable service and turns it into something more fun. ZipCar recasts short term auto rental and creates a community of “Zipsters” driving cute, energy efficient vehicles around metropolitan areas. GreenBox takes home energy monitoring (yawn!) and turns it into an engaging online activity with a community of fellow energy savers. TerraPass promotes purchasing carbon offsets as not only responsible but an interesting endeavor. 

 

Tell me about your favorite green product or service that delivers the “3 P’s.” We need to make our offerings as attractive to consumers as possible.

solar pv promises green collar jobs for an economy that’s hurting

During this dark time of year and with the gloomy economy it’s hard to think about a bright future for photovoltaic power. However, the fact remains that the sun is the most abundant energy source available and we will need to rely on it much more if we are to address global warming successfully. 

 

You may have heard that renewable energy represents a small fraction – about 7% – of the national energy budget. And of that 7% renewable, solar energy comprises only about 1%, as the chart from the U.S. Energy Information Agency below illustrates.

 

 

Thus, if solar energy is going to become a significant contributor, delivering for example 5-10% of the total national electrical energy budget by 2030, this country must engage in a massive scale up over the next 20 years. It’s going to take some hard work and logistical magic to make sure the nation’s rooftops are supplied with solar panels, but this is what America is good at. Assuming we need solar to supply a minimum 5% of the total electrical budget, here’s some sample numbers for the residential market alone:

  • We decide we want 25% of all PV capacity installed on residential rooftops, with the balance split between commercial buildings and industrial scale solar “farms.” 
  • We have about 75 million detached and semi detached homes in the country now and might expect to have about 100 million by 2030.
  • The EIA expects we will have an annual electrical demand of about 4,700 billion kilowatt hours (kWh) by 2030. If we want 25% of 5% – or 1.25% – of this demand supplied from residential rooftops then we will need to deploy about 20 million installations that each produce an average of 3,000 kWh per year. This translates into about 1 million new installations per year, or PV on 1 in every 5 American homes! Assuming 250 working days per year that’s 4,000 new residential installations nationwide every day for 20 years.
  • The labor impacts of this are exciting. If it takes 2 installers 2 days for a typical residential system, this translates into the equivalent of 16,000 full time jobs in residential solar installations alone, not taking into additional jobs in manufacturing, administration and supply chain. The labor outlooks for commercial and industrial solar installations are even more encouraging.

 

In summary, the long term prospects are encouraging, but the short term may be bumpy for the solar industry. Among other issues, prices for solar equipment must decline, to garner widespread public uptake. But manufacturers and others in the supply chain must be able to pocket profits, which, in the near term, may be flat or worse in an oversupplied market and slowed economy. Public policy will also need to encourage solar. However, the policy challenge may be more straightforward than than ever, given President Elect Obama’s newly selected science and technology appointments. They include Nobel Laureate Steve Chu and global climate and energy expert John Holdren, who bring the new Administration outstanding credentials and commitment to the renewable energy imperative. We stay tuned to how Congress and the new President ultimately craft the stimulus package and hope that solar plays an important part.

 

 

 

 

 

mission

We develop and market energy efficiency strategies and technologies. We focus on the building and transportation sectors, which account for more than two thirds of the energy budget.

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