will KIUC listen to McKinsey? on energy efficiency strategy

McKinsey report

McKinsey unleashed another blockbuster on energy efficiency clearly showing how to get the first 30% of cost-savings and emissions-reductions, concurrently with developing new green energy sources (via greeninc).

The upshot would be 23% less energy demand by 2020, and trillions not needed for new energy generation.

Meanwhile, KIUC is betting against any such thing, assuming instead that energy demand will continue to grow fast (because efficiency won't work), and so we must soon add another fossil fuel generator (because green energy is unreliable).

We've noted many flaws in KIUC's plans, and next Tuesday evening you can see their business-as-usual (BAU) approach in action.

That's when KIUC will trot out their current thinking on rate increases and new generation options.

IMHO, KIUC is simply ill-advised, and all us rate-payers will suffer if KIUC does not turn around and follow McKinsey's recommendations...starting with "third party involvement".

In other words, don't continue to pretend that KIUC can resolve the energy challenge by itself. Our County government, water board, major landholders, businesses and households will all need to collaborate in a Mckinsey-type approach.

Oh, and, don't rush out and buy the Genx when the vastly cheaper option is to follow McKinsey's solutions for cutting demand with efficiency measures.

And never mind the formidable barriers (also detailed by McKinsey), here are their "components of an overarching strategy":

According to McKinsey, for an upfront investment of $520B, the US could realize $1.2T savings by 2020. Plus, the "cost" of these energy savings is far below the cheapest source of new energy generation.

In sharp contrast, KIUC wants to maintain BAU by raising rates and spending more on fossil fuels.

You decide which makes more sense.

Published by Ken on August 1st, 2009 tagged Best Practices, Energy


One Response to “will KIUC listen to McKinsey? on energy efficiency strategy”

  1. Ben Sullivan Says:

    Ken,

    Thanks for continuing to study the material and share your views on the direction of our cooperative. As a member of the Board of Directors, I am always seeking to better understand our members views. I hope to see you and others in more of our monthly Board Meetings, as this is the only place where I can, in good faith to my fellow directors, share MY VIEWS of the direction our cooperative should take.

    Mahalo,

    Ben Sullivan
    Director, KIUC

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