Patrick Costello Green Guide Presentation Final 032112

1. Data Centers and
Sustainable Energy
An Introduction to
Developing a Balanced
Portfolio of Solutions
March 22, 2012
Patrick Costello

2. What Does It Mean To Be Green?
 Today’s focus: reducing the footprint of energy consumption
– Establish an emissions baseline
– Set a reduction target
– Invest in energy efficiency, clean energy + carbon offsets
 Potential benefits of sustainable energy investments:
– Environmental Impact Reduction + PR Perks
– Electricity cost hedge
 Key considerations:
– Cost
– Practicality
– Strategic value
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3. Categories of Emissions
Source: WRI/WBCSD GHG Protocol Corporate Accounting and Reporting Standard
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4. Grid Power – Where Are Emissions The
Highest?
eGrid Subregion Annual CO2 Output Emission Rates (lb/MWh)
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5. Tools Available to Reduce Energy Consumption
Related Emissions
 Options: more efficient onsite
generation, RECs, offsets
 RECs ≠ Offsets
 Renewable energy certificates (RECs)
– Green attributes of 1 MWh of
generation
– Scope 2 reduction
 Carbon offsets
– 1 MtCO2e reduction
– Scope 1,2,3 reduction
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6. Onsite Solar Photovoltaic (PV) Systems
 Flexible, increasingly
affordable
– Attractive savings in
some areas
– Several ownership
options
100%
 REC swapping reduces 80%
Average Hourly Capacity Factor
Capacity Factor
Average Monthly Capacity Factor
costs 60%
 Net metering useful but 40%
20%
not always needed 0%
 High PR value Hour of Day
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7. Onsite Fuel Cell Systems
 High
efficiency, scalable
 Potential electricity
cost savings; varies by
location
Illustrative Comparison of Power Generation and Electric
 Operational Cost Risks CO2 Emissions Rate Grid CO2 Emission Rates
– Fuel price volatility 2,500
(lb CO2/MWh)
2,000
– GHG programs 1,500
1,000
 Consistent output 500
pairs well with flat -
load Fuel Cell Cogeneration Generation
Fuel Cell Natural Gas-fired Generation Average Grid Emission Factor
Coal-fired Generation
U.S.
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8. Offsite, Utility-Scale Renewable Energy Projects
 Power Purchase Agreement (PPA); long-term contract
 Large supply of bundled or unbundled RECs
 Electricity not delivered
 Potential hedge against rate increases; could require Federal
Energy Regulatory Commission (FERC) approval
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9. Voluntary RECs
NERC Regions
 Inexpensive
 Scalable
 Count against Scope 2 emissions
 Limited transparency, impact of
investment unknown
 Potential PR challenges
“Any RECs you buy absolutely help get more generation built. How much? It’s very hard
to determine.”
– Marty Sedler, Intel’s Director of Global Utilities and Infrastructure
“There is a lot of scrutiny about RECs and whether they’re helping to launch
projects…It might not be something we’d want to be associated with.”
– Sarah Severn, Nike’s Director of Corporate Sustainability
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10. Carbon Offsets
 Inexpensive Carbon Offset Transaction Volume by Project Type
 Scalable
 Count against Scope
1,2, or 3 emissions
 Often more transparency
than RECs
– More stringent
certification
requirements
 Potential PR challenges
Source: Ecosystem Marketplace and Bloomberg New Energy Finance 2010
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11. Review of Energy-Related Sustainability
Improvement Investment Options
 Some options will better align with organizational goals than
others
 Fully understand your options before investing
 Invest in strategic combinations of solutions to maximize value
 “Environmental sustainability” is a moving target, will evolve
© 2012 Patrick Costello and Roshni Rathi
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12. Data Center Energy Efficiency, Renewable Energy, and Carbon
Offset Investment Best Practices:
A Guide to Greening Your Organization’s Energy Consumption
by Patrick Costello and Roshni Rathi, 2012
www.realenergywriters.com
pcostello.energy@gmail.com | twitter: @pj_costello
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