10 Questions for . . . Tom Reddoch, Electric Power Research Institute[SIZE=-1]In this installment of 10 Questions for . . . , Senior Editor Daniel DiClerico talks to Tom Reddoch, director of energy utilization for the Electric Power Research Institute (EPRI), a nonprofit that does R&D work for the electric-utility industry. Here, Reddoch discusses hyperefficient appliances, electric vehicles, and why not everyone embraces smart-meter technology. Consumer Reports hasn't put all of Reddoch's ideas to the test, but they add to the energy-use debate.
The EPRI uses the term hyperefficient. What does it mean?We decided we wanted a phrase that would differentiate our research from what I'll call normal improvements in efficiency. These are quantum leaps in efficiency, along the lines of the 75 percent reduction in energy use that happens when you go from an incandescent lightbulb to a compact fluorescent.
On the residential side, we're interested in three key areas of hyperefficiency. The first is heat pump water heaters. Making hot water using a heat pump is more efficient that making it from natural gas, and it has a smaller carbon footprint.
The second area is converter-driven ductless heat-pump air conditioners. Today's systems blow heated and cooled air through a series of ducts. The new systems have a variable refrigerant that flows through a piping network from room to room, where a heat exchanger takes the cool/heat from the refrigerant and discharges it into the room.
The third area is appliances. Let's look at refrigerators: They lose their chilled air when the door is opened?the larger the opening, the more cool air is lost. So one thought is to go to refrigerators with multiple small doors. There's already a Japanese product with as many as seven doors. The other appliance technology we're looking at is a combination washer/dryer/heat pump.
Are there any downsides to heat pumps?
An air-to-air heat pump draws heat out of the air. Therefore as you move north into colder temperatures that task becomes progressively more difficult. In colder climates, the best heat pump value is in geothermal or ground-source units, which draw heat from an underground piping network.
Whether air or ground, heat-pump systems cost more on the front end than other systems. So the other challenge here is behavior based. Heat pumps have the potential to deliver good long-term value, but people don't always look at the long term as much as they look at the short term first cost.
How is the national power grid changing?
The IQ of the electric system is rising as we create a so-called "smart grid." This allows us to do things on an automated basis, capturing some of the energy efficiency benefits that we might otherwise miss. If you think about it, when you shop for gasoline, you drive around and you look for signs posting the price. But with electricity, you only see the end result on your bill. The modern system will make pricing information more readily available, which in turn will lead to variable pricing by time of day, similar to what goes on at the gas pump. Utilities will convey when supply is short and pricing is high and through that homeowners will hopefully respond by consuming less.
Is there a risk that electric cars will someday be a drain on the power grid?
By most plausible scenarios, the introduction of plug-in hybrid electric vehicles will increase our total electric requirements by 5 or 6 percent by 2025 to 2030. That's a modest number but it will have dramatic impacts. We'll improve our security situation because we won't have to rely on the rest of the world for so much oil. From an environmental perspective, gasoline engines are nasty polluters, so electric vehicles will clean up the air.
It's not like every car on the road will suddenly be electric. There are 70 or 80 million cars on the road in the U.S. And we introduce vehicles at the rate of about 14 or 15 million a year. At that rate, by 2050 about 70 percent of the new cars that we could inject into the market place would be electric. So it's a gradual introduction.
What is the current state of smart-meter technology?
This is one of the rapidly changing areas in the electric business and a source of great debate. Electric meters on homes today have an extremely low IQ. But meters are becoming smart devices with an ever-increasing IQ. I like to use the analogy of computers. You have to replace your laptop every three to four years or it can barely handle the next version of software. Therein lies the issue. As innovation continues, a meter that used to last for 25 or 30 years might suddenly become antiquated in four to seven years. So we have a dilemma. How do we best place "smarts?" In the meter or in an external throwaway device? The answer is TBD.
Do attitudes about electricity differ in other parts of the world?
You don't even have to go across the world. Even across the U.S. there are regional differences in attitudes. But worldwide, the environmental constraints came on more quickly, so they've moved out on some things faster than we have.
When did efficiency become such a hot topic for the power industry?
We're in the second wave of energy efficiency. The first occurred in the mid- to late 1980s and reached its peak around 1995. When the decision was made to restructure the electric industry, similarly to what went on in the telephone industry, the interest in efficiency essentially went away. With the exception of California and parts of the Northwest, most energy-efficiency programs dissolved. The second wave began in mid-2006, when we stopped the deregulation process. My belief is that efficiency is with us now for the duration.
What's the greatest challenge facing utility companies?
It's combo challenge: to create an adequate electric supply while meeting our environmental goals and needs. If all we had to do was produce more power without concern for the planet, the truth is, it wouldn't be that difficult. But because of the need to lower the atmosphere's carbon content, we need to look into alternative means of generating power. We must aggressively implement energy efficiency programs.
How do you see the role of renewable energy changing over the next 50 years?
Today's power is roughly 50 percent coal, 20 percent nuclear, 20 percent natural gas, and the rest is miscellaneous fuels and renewables, including hydro, wind, photovoltaic, and potentially biofuels like switchgrass, among others. We must maintain that diversity, because you never want to get locked into any one fuel source.
But renewables have a CO2 footprint that's zero, so they have to be expanded. By 2050, it's realistic to think that 25 percent of our power could come from renewable sources. Nuclear will also play an ever-increasing role, say around 25 percent, because it's so plentiful and has a zero carbon footprint. Coal will remain a valuable part of the overall mix, maybe another 25 percent, but we need to clean it up. The rest will be a combination of natural gas, oil, and other miscellaneous sources. (Find out the source of power in your area by reading "Uncover the Source of Your Power.")
Can utility companies to be profitable and earth friendly?
The way an investor-owned utility makes money is through a return on capital investment. Historically, companies invested only on the utility side of the meter. But that doesn't mean they can't invest on the customer side. Let's say I'm ready to buy a new heat pump. I might choose to buy the least expensive one out there, which is not going to be the most efficient. For an additional investment of $500, I could get a much more efficient unit. I might not have that kind of money lying around. But the utility could pay the additional amount. The regulatory body could include that in the rate base, allowing the utility to get a return on the investment. So there are creative ways of doing positive things to the environment, but we need to think a little outside the box.
Essential information: Learn more about smart meters and look for an update on gas/electric hybrid vehicles and tankless and storage-tank water heaters in the October 2008 issue of Consumer Reports, on newsstands and online the week of September 1.
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