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President's Message 2nd Quarter 2017

By Robert Thornton posted 06-15-2017 00:00

  

As IDEA moves into its 108th year of operations, we continue the mission we started in 1909: to inform, connect and advance the district energy industry. Looking ahead, I see many positive trends for our industry and our association, but we will have to navigate some interesting crosswinds while we maintain a diligent focus on our members and their needs. 

Last year we set a new record for overall participation at IDEA conferences, and the turnout at our recent Campus Energy Conference in Miami reached an all-time high, with 856 in attendance. That’s quite a change from ten years ago, when the campus conference attracted about 340 people. I want to thank our loyal members for spreading the word and inviting many new people each year.

IDEA conferences are not large compared to the likes of POWER-GEN or Greenbuild, but many people, especially our exhibitors, tell us that IDEA events are their favorite, based on the high quality and topical relevance of the technical programs, the depth of knowledge and collegiality of attendees, and organizational logistics. We have made a conscious effort to retain the scale and sense of community in our events, resisting the temptation to “go big” and risk diluting the quality experience.

At the same time, there is growing competition for IDEA conference attendance with the availability of many other new conference options. Each week, your inbox undoubtedly delivers invitations to a workshop, summit or conference on topics like microgrids, distributed energy, sustainable cities – you name it. Many are organized by for-profit conference mills or publishers seeking to generate incremental income from their magazine titles. There is nothing wrong with that, and the speaker lineups are often interesting and commendable. But there is an important distinction for readers to consider. IDEA reinvests conference proceeds back into the industry for advocacy, education and outreach while others may simply be boosting a corporation’s bottom line. IDEA conference proceeds help to underwrite informed policy advocacy, fund regulatory filings and legislative initiatives, promote awareness of member innovations, produce educational videos for member use and capture mindshare with federal, state, provincial and local governments.

Choosing a conference may be analogous to shopping at the big box chain versus your local hardware store. I am not suggesting that IDEA can rest on its laurels simply because we have been a part of the industry for 108 years. We constantly strive to assess the changing technology and policy marketplace and curate high-quality conferences with relevant and timely content. My point is that sponsoring, exhibiting, presenting or even investing time and travel money to attend a conference is a choice, often constrained by limited budgets. When you decide to participate in a private event – and that is certainly everyone’s right – you are also supporting competition to IDEA. By investing in an IDEA conference you get more than your immediate benefits; you are also helping to support and advance our industry. 

In addition to record-setting conference attendance, the ranks of IDEA membership continue to grow, demonstrating another positive trend. In 2016 we added 42 new organizations and 468 individuals to our roster, bringing our total of listed members to nearly 2,300. It is notable that over 56 percent of our members are affiliated with an operating district energy system, so our roots as an end-user community remain a primary focus. Lately we have seen increased engagement from organizations specializing in controls, optimization and integration of renewables, with strong growth in the microgrid space as well. As the industry evolves, it is important that IDEA adapt to reflect the myriad changes under way in the utility sector and community energy arena. At the same time, we must continue reaching out to the sustainability community and college students, highlighting potential careers in our sector. In recent months, I have greatly enjoyed presenting to and meeting with student sustainability and graduate-level planning groups at Boston University, Northeastern University and Tufts University, my alma mater. I am really encouraged by the level of interest and curiosity among the young people I’ve met, giving me confidence that our future will be in good hands. 

An expanding membership is one critical ingredient for our success, but there are others as well. A few years ago, IDEA initiated our Sustaining Sponsors Program to enable interested members to financially support IDEA on an annual basis rather than simply sponsor one conference at a time. I want to thank those firms that have already stepped forward to participate, including Burns & McDonnell, Johnson Controls, NRG, Siemens, Solar Turbines, Thermo Systems and Trane. We are grateful for their stellar support of the IDEA mission and for providing the financial resources for education and advocacy. If you have ever watched public television, you know how important predictable and stable sources of funding are. These organizations are true leaders in our sector. 

In 2016, we signed a memorandum of understanding with Green Business Certification Inc. (GBCI) to strengthen collaboration in updating LEED treatment of district energy/CHP/microgrids and supporting engagement in the Performance Excellence in Electricity Renewal (PEER) program among IDEA members. These efforts are very important as more and more campuses, communities and developers seek to utilize district energy as part of a broader strategy for reducing carbon emissions or enhancing resiliency. Our current chair, Tim Griffin, has been the principal liaison on these issues for nearly a decade, and IDEA appreciates the engagement of our partners from GBCI/ PEER as we continue to learn from each other and refine programs. On a related matter, IDEA was recently invited by ASHRAE to assist in updating ASHRAE 90.1, which should enable fuller consideration of energy supplied from district energy systems. Taken together, these developments reflect the growing awareness of the scale, efficiency and optimization potential of aggregating energy use across multiple buildings rather than simply heating or cooling individual buildings. 

Last year, IDEA also signed an MOU with the Edison Electric Institute (EEI) outlining our mutual intent to strengthen awareness of district energy/CHP/micro-grids among investor-owned electric utilities. After months of meetings, conference calls and multiple revisions, we finalized a set of guidelines reflecting joint interest in market evolution to allow more deploy-ment of CHP, including potential for utility investment and ownership. As 2016 ended, leadership changes at EEI have slowed our progress a bit, but we are encouraged that more utilities are viewing CHP/microgrids as a potential business opportunity and less as a threat. In 2016, we began the integration of the Microgrid Resources Coalition (MRC) into IDEA with the intent to grow MRC membership and generate incremental revenue to more fully underwrite advocacy and regulatory reform. Clearly, there is growing interest in microgrids and a primary mission is to influence emerging regulations for a more level playing field. Our planned Microgrid2017 conference in Boston in November will bring together industry practitioners, regulators, advocates and business partners to advance our goals. 

At the federal level, IDEA held a highly successful Senate briefing on Capitol Hill in December 2016 to explain how district energy/CHP/microgrids contribute to more efficient and resilient local energy infrastructure. Soon thereafter, the Senate released its outline for an infrastructure bill that calls for investment in microgrids. Subsequently, IDEA launched an effort to organize and aggregate basic information from members on potential critical energy infrastructure projects across the U.S. To date, the inventory includes nearly 80 projects in 26 states and 34 congressional districts representing a combined capital investment of $3.6 billion. We intend to refine this package to advocate for inclusion in a potential federal infrastructure bill while informing the relevant congressional offices to garner key committee support. It is uncertain if and when an infrastructure bill will advance in Washington but we hope to participate. 

IDEA is also completing a funded research project for the International Energy Agency on best policy practices for deployment of district energy, and with the MRC we have commenced an important research project on a distribution grid locational value model for Lawrence Berkeley National Laboratory. We continue to support the U.S. DOE CHP Technical Assistance Partnerships and the U.S. EPA CHP Partnership. How the priorities of the new Trump administration will impact these programs remains to be seen, but we intend to remain fully engaged. 

Globally, we are evaluating how to strengthen IDEA engagement in the Middle East where companies like Empower are leading dramatic growth in district cooling. There is tremendous investment and activity in the region calling for IDEA engagement and support. Similarly, we are reviewing a new strategy for IDEA involvement in federal and provincial advocacy in Canada and we remain committed to supporting the District Energy in Cities Initiative of the United Nations Environment Programme. 

We are witnessing a dramatic increase in interest in our sector from media and government agencies, making it increasingly important that IDEA develop the financial resources to continue advocacy and outreach at a meaningful level. We also need to be better communicators. To that end, we have created educational videos for member use that explain CHP, microgrids, district cooling and sustainable cities. We are revamping the IDEA website and implementing a new customer relationship platform that should provide easier engagement, interaction and information exchange. We believe these tools will enhance the value of IDEA membership. 

I hope you will plan to join us in Scottsdale June 26-29 at “Sustaining Our Success,” IDEA’s 108th Annual Conference and Trade Show. Our industry is clearly gaining momentum, and we welcome your continued support and participation in the months and years ahead.  


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