Global Energy Issues

Burgeoning Demand – U.S., China, India…

Peak Oil, Natural Gas / Supply Constraints

Climate Change / Emissions Regulations Security

Health Effects EcologicalConsequences

On its own, each issue increases the costs of fossil fuels or of using fossil fuels

Solutions for these Energy Issues

Nuclear, Renewable Energy,

“Clean” Coal…

Burgeoning Demand – U.S., China, India…

Peak Oil, Natural Gas / Supply Constraints

Climate Change / Emissions Regulations

Energy from all sources, wars…

All renewable energy, coal…

Security

All renewableenergy except

large scale hydro…

Health Effects EcologicalConsequences

Energy from all sources,

wars…

All renewable energy except

biomass…

These Issues are Converging!

Nuclear, Renewable Energy,

”Clean” Coal…

Burgeoning Demand – U.S., China, India…

Peak Oil, Natural Gas / Supply Constraints

Climate Change / Emissions Regulations

Energy from all sources,

wars…

Energy from all sources, wars…

All renewable energy, coal…

Security

All renewableenergy except

large scale hydro…

Health Effects

All renewable energy except

biomass…

EcologicalConsequences

We can no longer develop/afford solutions that solve one problem but exacerbate others

Implications of Convergence

• Fossil fuels will become unaffordable rapidly• The only solution that fits in the intersection of

these circles is the combination of energy conservation, efficiency, and generation from renewable resources

• The transition to the era of renewable energies has already begun

• We need to accelerate this transition

We have made energy transitions before

• Whale blubber kerosene

• Kerosene electricity

• Electricity from coal electricity from natural gas

• And now…fossil fuels to alternatives

California is leading the transition

• California’s per capita electricity consumption has remained flat since the early seventies because of energy efficiency

– In the rest of the U.S. electricity consumption has increased by 40%

• California’s “loading order” for energy investments1. Energy Efficiency2. Demand Reduction3. Energy from Renewable Resources4. Energy from Non-renewable Resources

• AB 32 – Global Warming Solutions Act – Emission reductions by 25% from current levels by 2020

Napa is leading California … in Solar

• U.S. (2005): .07%

• PG&E territory (2007 projected): <1%– PG&E has more solar installations than

any other any utility in the U.S.

• Napa wineries: >12%– More than 50 out of 400 wineries have

already installed or are installing solar

Napa Wineries

• Napa wineries have adopted at this extraordinary rate because the COMBINATION of federal, state, and utility incentives have made solar economically feasible for commercial clients that are rich (pay taxes), profitable (can use depreciation), and creditworthy.

Pioneering Efforts through Wineries

• We are helping to remove the financial, technical, and regulatory obstacles through our adoption of solar.

• We are demonstrating that it is ok to start with energy generation first, because it increases consciousness about energy, which in turn results in energy conservation and efficiency.

Financial Obstacles Overcome

Financing Options 5 years ago• None. The first large wineries that went solar

were CASH rich. Invested in solar because they expected better returns than from the stock market.

Financing Options Today• Bank loans, Tax Leases, Power Purchase

Agreements • For Commercial and Residential

Technical Obstacles Overcome

• Solar Electric Systems are everywhere– Slopes (Chateau Montelena)– Flat Rooftops (Western Wine Services (anchored),

Wine Service Co-operative (ballasted))– Sloped Roofs (Dutch Henry)– Leach Fields (Frog’s Leap, Staglin) – Wastewater Ponds (Far Niente)– In PG&E’s right of way (Saintsbury)– Integrated in Buildings (Sutter Home)– Replacing expensive vineyards (Chappellet, Nickel

and Nickel)

Regulatory Obstacles Overcome (and being worked on)

• Renewable Energy Credits belong to host customers

• Transformer size constraint relaxed

• Permitted to build in PG&E’s Right of Way (Saintsbury)

• Meter Aggregation

Non-solar energy trends / near term possibilities in the Wine Industry

• Energy Efficiency Retrofits• Biodiesel / Biomass• Cogeneration• Sheep instead of mowers• Packaging Alternatives• Carbon Neutrality• Cradle to Grave • Carbon Farming• Triple Bottom Line Accounting

Longer-Term Energy Possibilities

• Distributed Renewable Energy Generation – Solar thermal, Small scale Wind, Fuel Cells, Direct Geothermal

• Centralized Renewable Energy Generation – Wind, Concentrating Solar Power, Waste to Energy, Tidal

• Energy Storage (fixed and mobile)• Energy Transfer – Plug-in Hybrids + Vehicle-to-Grid• Fuels from Alternatives – Ethanol from Algae,

Cellulosic Ethanol, Solar generated hydrogen