Sacramento Area Commerce & Trade Organization

*This article resulted from a SACTO hosted clean energy press trip to the Region 7/12-13. This is the translation of an article that appeared in the Taiwanese newspaper CNA News World in August, 2006.

CNA NEWS WORLD

2006-08

World News from a Taiwanese Perspective

 

 

 

By: Lillian Lin

 

In Sacramento, where the California state government is located, clean energy is the focus of research and development efforts, with many relevant industries moving in. In energy conservation and renewable energy, Sacramento has been making remarkable progress, widely considered a benchmark for America and even the whole world.

 

In mid-July, at the invitation of the Sacramento Area Commerce & Trade Organization, we paid a visit to clean energy research and development institutions and facilities in Sacramento. This visit included a tour of Sacramento Municipal Utility (SMUD), an entity that has been in operation for sixty years; and fuel cell development institutions, a development center of hydrogen fuel cell-powered vehicles and development institutions of alternative forms of energy.

 

Developing Clean Energy

 

The host arranged a series of presentations for us on such topics as Green Wave, a California Treasury Department program designed to encourage development and ventures in the area of renewable energy, and PowerUp, an initiative developed by CleanStart to publicly solicit proposals for innovative renewable energy technology with the aim of helping to incubate small business ventures in the field of renewable energy. The two-day visit was an information-packed tour, which showed us not only the economic benefits that Sacramento achieved in developing clean energy, but also the environmental awareness that has been generated.

 

With a population of over 35 million, California is an economy on the scale of France. With such a big population, California is an equally big energy consumer. In early 2003, the electricity demand in California was as high as 23.871 billion kWh; however, the annual average electricity consumption per capita was 6,732 kWh, much less than the national annual per capita average of 11,997 kWh.

 

As early as in 1977, the California government adopted the building energy efficiency standards or Title 24, which have been widely emulated all over the world. Although California started energy efficiency programs earlier than other [states], with a rapidly expanding population, it was hit by power shortages in 2000 and 2001. To further improve its energy efficiency, electricity distribution companies in California have invested and will continue to invest a total of $2 billion in efficiency research and development programs between 2001 and 2008.

 

SMUD, as an electricity supplier, is also one of the most successful examples in developing alternative energy and clean energy and promoting energy conservation awareness. SMUD is a 60-year-old public organization run by local election committees to supply electricity to the 1.3 million residents living in Sacramento and the neighboring areas.

 

 

Hydropower contributed 50% of the electricity generated by SMUD, with wind and solar energy providing 30% of power generation, and SMUD supplies electricity at tariff rates 30% lower than those imposed by other power generators in California. Facing soaring international oil prices, many countries are putting their hopes in nuclear power plants, while SMUD remains focused on renewable energy and clean energy. In fact, SMUD once operated Rancho Seco, a nuclear power plant that began operation in 1974. However, local residents voted to close the plant in 1989 after 15 years of operation. Since then, Sacramento has rejected nuclear power as a power option.

 

Consume Less as Well as Generate More

 

For over a decade, SMUD helped plant 350,000 broad-leaf trees in local neighborhoods, which improve air quality as well as provide shade in the hot summer.

 

While supplying clean energy, SMUD has been actively engaged in research and development and obtained remarkable results in educating the public on energy conservation. Through a partnership with the US Energy Agency and the National Renewable Energy Laboratory, it built hundreds of zero energy homes in Sacramento. Solar panels were installed their roofs to generate power. In addition, electrical heaters, air conditioners, kitchens, doors and windows have been designed and installed with a focus on eliminating unnecessary wastes of energy.

 

Beginning from 1990, SMUD worked with the Sacramento Tree Foundation to plant trees around local homes at no cost to home owners. For over a decade, SMUD helped plant 350,000 broad-leaf trees in local neighborhoods, which improve air quality as well as provide shade in the hot summer.

 

SMUD also plays a critical role in developing clean energy technology. Sacramento is one of the seven cities selected by the US Energy Agency for pilot hydrogen fuel cell vehicle programs. Ford, Toyota, Daimler-Chrysler and other major manufacturers have set up research centers in Sacramento to develop zero-emission, nonpolluting vehicles powered by hydrogen fuel cells, which are yet to be commercialized. In partnership with major international manufacturers, SMUD employees are using prototype vehicles fueled by such cells, with speed and power comparable to gasoline-powered vehicles, and many hydrogen filling stations have been set up across California,

 

Hydrogen fuel cells power a vehicle by converting hydrogen into electricity through a catalyst and driving the electrical motor installed on the vehicle to move the vehicle. Generally, hydrogen is stored in a compressed state at ultra-low temperature in tanks at a gas station. Many start-up companies in Sacramento are developing hydrogen fuel cells. Commercialization of these zero-pollution vehicles depends on a break-through in hydrogen fuel cells technology.

 

 

 

Technology Brings Prosperity

 

Northern California is a center of emerging technologies and the homeland of venture capitalism. In 2003, the California state government announced that the pension fund for California’s civil servants would invest $1.5 billion in environment-related industries, and the state pension fund for teachers announced its participation in this undertaking. Named Green Wave, this investment commitment has attracted many research institutions and industries to this region.

 

The state government estimates that a one million dollar investment will create 20 jobs, and an investment over $1 billion is expected to create more than one hundred thousand jobs. Industrial prosperity is attracting an influx of people to Sacramento, including technology professionals, and boosting the growth of real estate and other services.

 

 

Northern California is home to many international technology companies. It is the desire of the Sacramento Chamber of Commerce and California state government to create a supportive environment for start-up companies. Sacramento City, California State University at Davis, SMUD and many renewable energy companies and venture funds are sponsoring CleanStart PowerUp, an initiative to solicit research ideas and business proposals in the field of pollution-free technology, with fifty thousand dollars going to each winner.

 

Eligible participants are limited to individuals or start-up companies located within 75 miles of Sacramento. Many technology professionals are moving to Sacramento to be eligible for participation in this initiative. The organizer of this initiative, CleanStart, will provide opportunities for these participating professionals to present their technology packages or business models to venture funds. Participants will have a chance of commercializing their technology whether they win or not.

 

Long-term Vision for Sustainable Development

 

Development of the energy industry in Sacramento reflects the city’s years of efforts to achieve environmental sustainability and promote conservation awareness. “The focus of our philosophy is not only profit, but also sustainability,” an executive at SMUD emphasized in the presentation.

 

Modern living is impossible without electricity, but we have to promote conservation and find ways to extract energy from renewable resources. Modern means of transportation cannot be abolished, but we have to research and develop pollution-free vehicles. Companies and research entities in the field of renewable energy need support, and government and the industrial community should be making every effort to support them.