Cost-effective energy conservation remains a priority in California and beyond.  However, the low-hanging fruit of energy efficiency appears to be harder to pluck than originally thought.  Regulations and business relationships have worked, but not to the extent they could.  Why not?  What new business models will need to be in place to spur further energy efficiency improvements into the market?  If we are to meet the goals established in AB 32, what big and bold new steps need to be taken?

The Energy Efficiency Technology Impact Summit 2.0, which was held December 2 in San Diego, is the second in an annual event - convened by the Energy Efficiency Center and Center for Entrepreneurship at the University of California, Davis in partnership with the California Clean Energy Fund, Clean Tech San Diego and Sempra Energy - to address these pertinent questions.

The first Energy Efficiency Technology Impact Summit 1.0 was held February 13, 2008 and brought together individuals from the public and private sectors to explore the obstacles and challenges in procurement of new energy efficiency and peak load reduction technologies.  Participants at Tech Summit 1.0 also discussed barriers to bringing new technologies into the market, opportunities for scaling-up in order to achieve reasonable rates of return as well as existing and proposed policies to address obstacles in the way of market impact.  Moderators guided discussion of three panels which included full audience participation.  A summary of the proceedings is available here.

The Energy Efficiency Technology Impact Summit 2.0 shared this format.  Panelists (and participants) offered practical examples of obstacles and potential solutions.  Concrete examples touched upon product development, project funding, regulatory constraints as well as negotiating strategies for multiple parties.  Multi-sector participants participated. Specific topics addressed include:

• What sectors and activities are making progress in energy-saving goals and what is the untapped savings potential?
• What are the gaps, barriers and incomplete mechanisms that prevent businesses from entering the energy efficiency technology market and fulfilling the need for reduced energy consumption and carbon emissions?
• What kinds of new business models, relationships, transactions, rewards or regulations are needed to attract innovation, investment and other forms of energy-saving actions?

The paper suggests a range of innovative financial products, business arrangements, and supporting public policies that could be implemented to achieve improved and accelerated energy efficiency impact beyond successful existing efforts.  The solutions suggested are examples that serve as a select inventory of current and potential experiments or pilot initiatives that show potential for improvement.

It was initially meant as a tool for setting the stage and generating some initial thinking by our participants, ultimately facilitating the rapid start of our conversation.  The set of solutions presented in this paper will be improved and expanded upon, debated and edited, and added to in unforseen yet valuable ways.  A future iteration of this paper will capture the outcomes of our conversation and has lead to some definitive next steps to profitably accelerate the capture of accelerated additional efficiency market gains in the near term.

If you would like to contribute your thoughts, comments, and ideas for additional solutions and implementation tactics, please leave us your comments.  The PDF is also edit-able and comment-able so, feel free to download it and send your suggestions to us at CalCEF Innovations.