Connexion Electrical and Energy Business Solutions

Connexion Announces the Release of Their 2012-13 Premier Edition ?Energy Incentive Quick Guide?

Thu, 26 Jul 2012 12:06:00 -0600

Buffalo Grove, IL (PRWEB) July 26, 2012

Connexion, a leading provider of electrical and energy solutions to the construction trade, manufacturing, facility management firms and commercial businesses has announced the release of their 2012-13 premier edition Energy Incentive Quick Guide.

“With the recent launch of this year’s new and expanded utility incentive programs, we’re excited to once again make available our popular Energy Incentive Quick Guide. This resource tool effectively captures all the energy incentives available through ComEd, Nicor Gas and the Illinois Department of Commerce and Economic Opportunity, in one publication” said Connexion Vice President of Energy, Brian Earl. “This year’s 25-page guide includes market data, industry best practices and a color-coded index making navigation quick and easy.”

In the Midwest, the energy incentive landscape has been rapidly evolving with the inclusion of new LED lighting measures, expanded prescriptive and custom programs and HVAC incentives jointly offered through the DCEO, Nicor Gas and ComEd. Connexion’s Energy Incentive Quick Guide was created to provide a building owner or chief sustainability officer a quick means to finding the wealth of available energy conservation measures and incentives beyond the basic T12 to T8 lighting retrofit conversions.

Connexion, a Trade Ally with ComEd, Nicor Gas and the Illinois DCEO employs an energy team whose 9 members each specialize in a particular technology and vertical market within the field of energy reduction. These technologies include; lighting systems, control and building automation, electric vehicle charging, engineered clean energy solutions and combined heat and power systems. Included within their vertical market expertise are healthcare and educational facilities, industrials, data centers, property management firms and dedicated solutions for small businesses.

The Energy Incentive Quick Guide is one of several guides available for free download or by mail. Other guides include their T12 Upgrade Guide and their EISA Lamp Availability Guide.

About Connexion:
Connexion, headquartered in Buffalo Grove, IL is a privately held, independent provider of electrical and energy business solutions. Their experienced team of energy and service consultants’ goal is to provide strong return on investment and sustainable solutions through the implementation of energy efficient technologies. For more information, visit http://www.connexionES.com.

Alternative Energy Meets Business:How Creative Business Models are Bringing Solar to the Average Joe

Fri, 29 Jun 2012 14:43:00 -0600

By: Tyler Lancaster, Connexion Energy Team Intern

As the solar industry matures, particularly photovoltaic (PV) technology, the cost of solar panels has plummeted. PV module prices have dropped from $1.78/W in Q1 2011 to $0.94/W in Q1 2012, spurring a record amount of PV installations for Q1 2012 at 506 MW. This figure shouldn’t be taken out of context—the solar industry faces challenges over the next few years as political climates influencing subsidies, financial incentives, and raw material supplies lack consistency. Nonetheless, the resiliency of solar PV is unquestioned as it continues to ramp up installation despite harsh economic times and the growing pains intrinsic to a maturing industry. For years, owners of residential and small- to medium-sized commercial facilities have balked at implementing solar energy solutions due to high initial investments and long payback times. With the material cost of PV technology quickly falling, creative financing and advanced project management techniques have emerged to accelerate the proliferation of PV technology beyond utility deployments and into the residential and commercial spheres.

Recent news from companies seeking to reduce the “soft cost” of solar—permitting, commissioning, labor, etc.—indicates continued reason for optimism regarding the availability of solar PV to residential and commercial building owners. Recently, Clean Power Finance was awarded $1.5 million in grants from the Department of Energy’s SunShot Initiative to reduce the soft costs of solar. Clean Power Finance will apply these grants to two unique projects to improve communication amongst the denizens of the PV industry. One project seeks to develop an online marketplace for operations and maintenance service providers to connect with owners of installed PV systems. Such a marketplace will ensure cost efficient maintenance of installed PV systems, most which will continue producing electricity for at least 30 years. In addition, Clean Power Finance plans to develop an online brokerage to connect solar installers with companies specializing in finding end users. This brokerage also focuses on improving the communication channels within the PV industry, while simultaneously introducing the sort of competition that will cut the unnecessary fat out of PV sell prices.

The engineers and researchers driving the rapid commercialization of PV technology are superb technologists but have encountered difficulty in effectively marketing their products and developing robust business models to match robust PV technology. Clean Power Finance’s initiatives represent one method of strengthening the PV marketplace through the virtue of the Internet, but the problem remains—how can homeowners and small to medium sized business owners on tight budgets install PV systems on their facilities? SolarCity is one company making solar PV accessible to residential and commercial building owners. SolarCity funds the purchasing of solar panels and the installation of the PV system, while customers pay for discounted electricity compared to their usual utility rate. SolarCity and U.S. Bancorp recently announced an additional $250 Million in funding for residential and commercial projects, an affirmation of SolarCity’s model for brining solar PV to the average Joe as the amount of available seed money continues to grow. With utility electricity rates increasing annually from 5-10% on average, future returns for enterprising building owners who install solar PV today could prove enormous indeed.

The graph below demonstrates the increasing importance of the commercial and residential spheres in relation to installed PV. Despite a rocky political climate and turmoil amongst PV manufacturers due to looming trade wars, U.S. residential and commercial installations carried PV to Q1 highs in 2012.

Residential and commercial applications continue to grow despite the variability in utility installations and serve as a physical reminder of distributed generation’s true spirit. As American businesses gain confidence in the viability of PV as a means to reduce energy consumption and provide energy security for years to come, companies like Clean Power Finance and SolarCity lead the charge in making PV available to capital poor entities like homeowners and small margin businesses. Solar PV technology must drastically increase its energy efficiency and utilize economies of scale to reduce manufacturing and material costs, but creative business solutions will certainly help in reducing the significant soft costs of solar to bring leaner PV products to consumers. Fortunately, the Sun’s energy is free and will remain free for the foreseeable future.

Is Eaton's Purchase of Cooper a Bellwether for the Smart Grid Sector?

Mon, 11 Jun 2012 06:24:00 -0600

By Tyler Lancaster, Connexion Energy Team Intern

Most of the clean technology industry depends heavily on the political climates and the availability of subsidies or incentives to generate demand. As we’ve seen with the solar and wind industries, political squabbles and poor business planning create a logjam in the installed capacity increases of wind power and the rapid technological innovation of solar technologies. While solar and wind have faltered in recent months, one sector’s activity indicates a vast growth potential: the smart grid.

Whereas promises of renewable technology startups becoming hot commodities on the merger and acquisitions market haven’t come to fruition, smart grid companies and startups continue their hot streak. No transaction looms larger than Eaton’s recent $11.8 billion acquisition of Cooper Industries. Cooper Industries, an electrical equipment supplier, will augment Eaton’s ability to effectively manage modern electrical power, which becomes increasingly reliant on smart grid automation controls. The combination of these two companies will allow Eaton to compete with the likes of Honeywell and Johnson Controls in the smart grid arena. The question becomes, over the next 5-10 years, will smart grid business provide the incentive for continued investment and development, and can it prompt overall growth of clean technologies?

Perhaps the most immediate benefit of smart grid technology is the potential for energy efficiency savings. While many have focused for years on making appliances, computers, HVAC products and lighting more efficient, the potential savings of implementing control systems for electrical usage within a building present enormous potential. For example, computers sitting idle can be instructed to automatically shut down with smart control technology, thus drastically reducing the amount of energy wasted as a result of human inefficiency. The American Council for an Energy-Efficient Economy has released a new report suggesting a 12-22 percent reduction of energy usage by approaching efficiency from a systems standpoint. One case study on the industrial company Air Liquide indicated a payback time on smart systems of less than one year. Undoubtedly, the economic potential of smart systems is proven and significant.

Additionally, the cleantech industry is becoming increasingly aware of the need for a modernized power distribution infrastructure to better serve the vast array of technologies arriving to the energy marketplace. America’s approximately century-old power distribution grid simply isn’t built to handle the confluence of distributed and centralized power generation. While distributed power generation could prove exponentially helpful in managing the peaks and valleys of daily energy demand, the tools to optimize the interaction between renewables and the grid aren’t available today. In order to develop such tools, advanced monitoring of electricity usage by the virtue of smart meter and grid technology must become commonplace. Many utility customers are charged a premium for using electricity during peak hours.

The graph below shows the potential impact of solar PV on mitigating price peaks during peak demand. The smart grid could provide the means for distributed power generation such as solar PV to eliminate peak premiums by effectively managing the ebb and flow of electricity channels.

Image from Mills, Lawrence Berkeley National Lab

By driving growth of the smart grid sector, the cleantech industry will not only introduce a means for reducing energy usage with fast payback times but also prepare America’s infrastructure for the introduction of distributed power generation to the energy mixture. The smart grid presents a bright economic opportunity for both businesses and homes seeking to reduce their monthly energy bills. In addition, companies (like Eaton) who produce smart grid hardware stand to generate large revenues as smart grid technology becomes increasingly pertinent to infrastructure updates. Despite a bleak economic outlook for some sectors of the cleantech industry, perhaps the smart grid can carry the load during tumultuous political climates and shaky business schemes as renewables enter the commercial sphere.

Chicago-based Connexion Partners with Eaton to Address Sustainability in Larger, More Complex Facili

Thu, 15 Mar 2012 06:18:00 -0600

Connexion, a leading provider of electrical and energy solutions to the construction trade, manufacturing, facility management firms and commercial businesses has formed a strategic partnership with Eaton Corporation, a global technology leader in diversified power management solutions. This partnership will enable Connexion to further expand their energy solutions and engineering services to address the more complex needs of larger clients, particularly in the healthcare, hospitality, data centers, education, public infrastructure, multi-tenant facilities, and large industrial markets.

“We now have full menu of services and solutions to meet the energy needs of a diverse group of clients. Our consultative and technical offering enables us to move laterally through a facility – no matter what the size or where it’s located throughout the country - identifying and developing measures to reduce consumption while increasing sustainability," said Connexion Vice President of Energy Brian Earl.

With access to Eaton’s more than 200 engineers and 1,100 energy specialists, Connexion can now provide their clients energy solutions from needs identification to engineering, design, and installation, products and system verification. Further, Connexion has developed a complete offering of alternative energy solutions including wind, solar, geothermal, EV (electric vehicle charging), and CHP (combined heat and power).

In return, Connexion offers Eaton a team of experienced local/regional energy consultants to support their engineering services group with access to both local and national clients.

About Eaton Corporation:
Eaton Corporation is a diversified power management company with more than 100 years of experience providing energy-efficient solutions that help our customers effectively manage electrical, hydraulic and mechanical power. With 2011 sales of $16.0 billion, Eaton is a global technology leader in electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. Eaton has approximately 73,000 employees and sells products to customers in more than150 countries. For more information, visit http://www.eaton.com.

Connexion Debuts Clean Energy Solutions at the 2011 ComEd Energy Expo

Mon, 12 Sep 2011 14:22:00 -0600

The Energy Efficiency Expo returned to the Donald E. Stephens Convention Center last week for its 2nd year bringing together some 1,000 decision-makers from ComEd's largest business customers - senior management, chief engineers, energy managers, facility managers, and plant managers - all looking for energy efficiency solutions for their organizations.

As the sole Platinum Sponsor of this important industry event, Connexion was well positioned to help deliver additional value to Expo attendees. Through our exclusive hands-on demos and classroom presentations, we demonstrated you how to CONSERVE energy through efficient power usage including Lighting, Motors and Transformers. CONTROL your energy assets through Competitive Rate, Building Automation Systems, Metering and Smart Grid products. CONVERT a portion of your energy needs to Wind, Solar, Geothermal and Independent Generation Sources.

We forged relationships with top tier clean energy partners to support our 'Conserve - Control - Convert' energy philosophy and demonstrated their solutions in our booth and through our in-depth training presentations. Alfa Energy, responsible for over $200 million spent annually on energy, with more than 4,000 clients, demonstrated the savings available through their rate reduction programs. CePort provided the key component of our 'Control' message; they helped our visitors understand how their building automation program can help clients gain deeper insights into their energy use, understand how people and processes relate to their buildings, in real time And deliver a higher level of service to employees and tenants.

Business owners looking to make a strong sustainability statement were captivated by our Renewegy wind turbine demo. Renewegy's state of the art, electronically controlled, wind turbines are designed specifically for the needs of businesses, farms, schools, universities, and municipalities. View our YouTube video below to get a closer look at the Renewegy commercial grade turbine. It was definitely the star of the show!

Our clean energy, 'Convert' solution wouldn't be complete without a strong representation from the solar market; Denver based Solar Solutions, one of the largest PV equipment suppliers in the U.S., was on hand to explain the financial benefits and applications specific to the Chicago area. Solar Solutions carries all equipment necessary for large and small solar installations, including modules, inverters, racking, BOS, and accessories.

Our timely introduction of our clean energy solutions comes on the heels of an announcement from the DCEO that their Solar and Wind Energy Rebate Program is now open and they're accepting applications for Fiscal Year 2012. The focus of the Solar and Wind Energy Rebate Program, through the State's Renewable Energy Resources Program, is to encourage utilization of smaller-scale solar and wind energy systems in Illinois. A perfect opportunity for the Renewegy VP20 Turbine!

Eligibility applicants include homeowners, businesses, public sector and non-profit entities who are customers of an electric or gas utility that impose the Renewable Energy Resources and Coal Technology Development Assistance Charge. The program offers incentives up to 30% of total project cost for residential and business applicants, and 50% for public sector and non-profit entities. The maximum rebate is $30,000.

When you combine these state incentives with the available federal renewable energy incentives, you can offset approximately 60% of the your projects cost. To learn more about these incentives or any of our clean energy solutions, contact Connexion today.

ComEd's Smart Ideas for Your Business Increases Incentives for T12 Upgrades

Fri, 02 Sep 2011 07:39:00 -0600

With the looming obsolescence of T12 lighting, ComEd's Smart Ideas for Your Business® is launching a full-scale initiative to encourage customers to upgrade to T8/T5 lighting.

ComEd is offering bonus incentives for T12-to-T8 retrofits between September 1, 2011 and March 31, 2012. Incentives for most T12-to-T8 retrofit measures will increase $2 per unit; incentives for lamp-only measures will increase $0.50 (see below for list). After March 31, 2012, incentives will be reduced. They will never be this high again!

A special application, with all the increased incentives highlighted, will be available on the ComEd web site.

The initiative includes more than an incentive increase. It will be backed by marketing and sales tools available only to Smart Ideas Trade Allies:

A "Top Three Reasons to Upgrade Your T12 Fluorescent Lighting Now" flyer is available free to Trade Allies. Trade Allies may also order the flyer imprinted with their company logo and contact information, and there is a small cost for these.*
Coming soon: An interactive online T12 upgrade savings calculator on the ComEd web site will engage customers, show them the savings they can achieve, and refer them to the Trade Ally list.
The T12 phase-out will be a major topic at the Energy Efficiency Expo September 7.
In addition, Smart Ideas awareness advertising, banner ads and customer newsletters will reinforce the message.

Please note the following:

The increased incentives will apply to complete final applications submitted between September 1, 2011 and March 31, 2012.
Incentives will be reduced on April 1, 2012.
Applications can include just T12 upgrades or T12 upgrade plus some other lighting measure.
A pre-approval application is required for the delamping incentive.
The complete final application must be received by March 31 to qualify for higher incentive.

Measure

Regular Incentive

Bonus

Total Incentive Until 3/31/12

2-ft Lamp and Ballast

3-ft Lamp and Ballast

4-ft U Tube T8 and Ballast

4-ft HP T8 and ballast

4-ft Reduced Wattage T8 and Ballast

$ 7

4-ft Reduced Wattage T8 Lamp Only

$0.50

$1.50

8-ft Reduced Wattage T8 and Ballast

$ 8

8-ft Reduced Wattage T8 Lamp Only

$0.50

$1.50

1-lamp 8-ft T12 to 2-Lamp 4-ft HP T8

1-lamp 8-ft T12 to 2-lamp 4-ft RW T8

Retrofit T12 Fixtures with T5 Lamps and Electronic Ballast

Remove 2-ft

Remove 2-ft lamp and install reflector

Remove 3-ft

Remove 3-ft lamp and install reflector

$10

Turn back the clock and imagine yourself in the Old West; Gold was the hot commodity - land and water while plentiful, were what separated the haves from the have-nots. How similar is this to our current Rare Earth scenario? The only difference is China's the one who owns the 'gold' and land. And we're dealing with the consequences.

More than half of the phosphor used in linear fluorescent (LFL) and compact fluorescent (CFL) products is derived from rare earths, and as many as five different rare earths are required to create the white light.

The Chinese government has implemented new tariffs and mining regulations on rare earth materials. These actions, coupled with increasingly strict export quotas, have caused the price of these compounds to substantially increase as much as 3500% since January of 2010 in some cases.

Because of this 'made-in-China' situation we've gotten ourselves into, we now have the makings of a modern-day gold rush; Colorado and other Western states also contain significant caches of Rare Earth metals - Mining companies, the federal government and state agencies are pushing to find out just how much potential new resources we can tap into. But until domestic supplies reach the levels necessary to lessen our dependance on China, we'll continue to search for some law and order in this Rare Earth Wild West.

For many of us, even long-time veterans of the lighting industry, it's difficult to really get a perspective on the cost pressures the lamp manufacturers have been dealing with since last year. In the course of accumulating information from the major lamp manufacturers in how they're addressing the Rare Earth crisis, we came across a presentation from GE Lighting, their 'GE Lighting Phosphor Market Presentation'. What we like about this presentation is that it does a great job of expressing the Rare Earth inflation rate in terms we can all relate to:

What would prices be if you experienced 'Rare Earth like' inflation rates on some common everyday items?

	Average 2009 Price	Projected 'Rare Earth" 2011 Price
Gallon of Milk	$2.72	$28.80
12oz. Starbucks Coffee	$1.50	$15.88
Gallon of Unleaded Gas	$1.88	$19.91
One Movie Ticket	$7.50	$79.41

The manufacturers are doing some trail blazing with respect to how they're rolling out these price increases into the market. Sylvania's September 1st price increase calls for "an average of 13% on T8, T5, compact fluorescent and certain T12 products". GE's August 1st price increase specifies "linear and compact fluorescent products will increase an average of 25% and incandescent products will increase an average of 10%". And Philips announces their "previously announced September 1st 10% average price increase for Linear Fluorescent Lamps (TL), Compact Fluorescent Integrated (CFLi) and Compact Fluorescent non-integrated (CFLni) to an overall average increase of 25% effective on August 15, 2011". See our Price Increase page for details.

What's important to note here is these price increases are on top of any increases previously announced and they're projected to be the first of several increases. When the dust settles, all fluorescent lamp manufacturers are planning 3rd quarter increases ranging between 25 and 40%. To the extent these manufacturers can project out their phosphor demand (weighed against current supplies), will determine their "price-in-effect" strategies. We already know that there are tight restrictions on distributors on placing 'pre-price increase' stock orders.

The instability of fluorescent lamp pricing right now may remind some of the Wild West of yore. We have the same clash of cultures, with similar players and issues. Much like the 'evil land baron' who hoped to drive families off their lands for its water, China wishes to retain their supplies of rare earths for its own value-added industries and exact stiff penalties for its export.

We shouldn't expect anybody wearing a white hat to ride into town and clear up this mess anytime soon. In the meantime, we'll do our best to keep you informed and your cattle fed.

For more information and supporting documentation, please visit our dedicated Rare Earth Metals Shortages page.

TCP Sheds Light on Rare Earth Phosphor Crisis

Fri, 15 Jul 2011 06:12:00 -0600

It's mid-July 2011, the construction industry is still trying to find a little traction and the lighting industry is bracing itself for historic price increases of epic proportions from fluorescent lamp manufacturers.

In the 'post recession' this seems to be the new norm; not only do we have to bail water but do it during a hail storm as well. The storm I'm referring to is the rare earth mineral crisis that has our industry between the proverbial rock and a hard place (forgive the pun!).

Virtually all of the major lamp manufacturers have issued their price increase notifications. We're seeing an average 25 percent price increase primarily on linear and compact fluorescent lamps. These increases go into effect in an August timeframe. It should be noted that this is not a typical price increase scenario; there are no opportunities for large pre-price increase inventory buys and negotiated 'price protection'. The manufacturers are scrambling to recover the 800 to 1200 percent price increases they've been absorbing in phosphors costs during these last few months. Allowing the market to 'stock up' at a lower price will only prolong their collective pain.

I won't go into the whole story behind the rare earth shortage here - you can read more and download all the information we have on our Rare Earth Metals Shortages page. Suffice to say, it's another 'made in China' problem.

We believe that we are only seeing the first wave of price increases; phosphors are used extensively in the manufacture of LED lamps, to convert the light emission from LED chips into a different wavelength spectrum. It may be just a matter of time before the scarcity of phosphors also impacts the LED lamp market. In unprecedented situations like this there is no such thing as over-communicating. The first communication we received about this crisis-in-the-making came from TCP in June. Ellis Yan, TCP's CEO has clearly made a commitment towards communicating through this crisis. The following is an excerpt from their latest communication. It can be downloaded in full on our Rare Earth Metals Shortages page:

"TCP released a letter on June 5, 2011 outlining our initial pricing response plan. We have received many inquiries and much positive feedback about the thoroughness of TCP's open dialogue regarding this difficult industry-wide situation. As TCP's CEO, I feel it is important that we take the lead to ensure that you have the most updated information - and the facts - to make solid, informed decisions for your business and for your customers."

Continued:

Myths about any Near-Term Rebound in Phosphor Costs:

The amount of information coming out about this topic has mushroomed dramatically over the past few weeks. Recent stories circulating in the press have approached this crisis from many different (and sometimes conflicting) angles. Some reports have even suggested that Rare Earth prices have leveled off or may even drop soon due to demand shifts and new sources of supply outside of China. This is simply not the case. Any new supply of Rare Earth material from other areas around the world is months if not years away. And China still maintains the lowest global source cost of these rare earth commodities, even with these dramatic price increases.

The Chinese government attempted to intervene during June to try to control any external market price speculation, which might have helped to slow the rapid rise in Rare Earth commodity prices. This effort proved unsuccessful, and commodity prices almost doubled again during the month of June. No further government involvement is anticipated, so the best hope of future price stabilization will likely rest solely on the normal market forces of supply & demand.

How are TCP's Competitors responding to this Crisis?

Over the past three weeks, most of the major fluorescent lamp manufacturers in the USA have released their own pricing announcements addressing this critical issue. Price increases are being communicated across the industry, albeit varying by degree and timing. This disparity can be attributed to differences in each manufacturer's transparency to their actual cost impact from the the Rare Earth material cost increases. Since some CFL and linear lamp brands do not directly own or control their manufacturing process like TCP does, they may have not yet incurred the full brunt of these costs. Suffice it to say that all lamp suppliers are being impacted equally by these cost increases. Due to the continued volatility within the market, we expect to see continued fluctuations in lamp supplier pricing during the near term.

Many fluorescent lamp manufacturers are also limiting long term price commitments and may also now have order quantity limitations. This is a clear indication of their uncertainty about the potential for future raw material price increases. TCP expects this practice will become commonplace, since lamp manufacturers are very uncomfortable locking in long-term price guarantees during this period of price escalation.

Are Rare Earth Commodity Costs Stabilizing Yet?

The cost of the core commodities used in the manufacture of fluorescent lamps continues to increase. This chart illustrates the most recent price changes for the four most common essential base elements used in the manufacture of fluorescent lamp phosphors. These materials have all seen record market prices each week as the full impact of the Chinese regulated increase are implemented.

For more information and supporting documentation, please visit our dedicated Rare Earth Metals Shortages page.

Huge Price Increases Underway from Lamp Manufacturers: The impact of rare earth metals shortages

Wed, 13 Jul 2011 13:55:00 -0600

Brace Yourself for Record Price Increases from the Lamp Manufacturers.

As we first reported in June, there is a rapid, emerging shortage of rare earth metals, a primary component used in the manufacture of fluorescent lamps - principally phosphors. Phosphors are transition metal compounds or rare earth compounds of various types. The most common uses of phosphors are prevalent in green technologies such as batteries, magnets, computer hard drives, TV screens, smart phones, and energy-saving light sources - and fluorescent lamps.

How are phosphors used in fluorescent lamps?

There is a coating (called the phosphor) on the inner surface of the fluorescent lamps that absorbs the ultraviolet light and converts it into fluorescent light, mostly in the visible spectral region. (Any remaining ultraviolet light is absorbed in the glass tube.) The phosphor contains several substances, which are mixed in such a way that the overall emission spectrum corresponds to white light.

The geopolitical landscape:

The shortage of rare earth metals is caused by a strategic reduction in exports by China, the world's current and dominant leader in rare earth mining, presently controlling about 97 percent of the world's supply. In October 2010, the Chinese announced plans to not only cut their production, but also to reduce exports by one-third. The specter of global shortages suddenly became critical and real.

The World Trade Organization (WTO) recently declared China was wrong to impose restrictions on rare earth metal exports and noted measures taken by the country in recent years have constrained supply and led to unwarranted price increases. Without outright saying that China's constraint of trade actions were illegal, they rather mildly stated that the country's "export duties were inconsistent with the commitments that China had agreed to in its Protocol of Ascension," and that "certain aspects of China's export licensing regime, applicable to several of the products at issue, restrict the export of the raw materials and so are inconsistent with WTO rules."

What happened to our domestic Supply?

Through the 1980s, the domestic source for US rare metals was processed at the Mountain Pass Mine in in Southern California. The mine was discontinued in 1996 after a series of pipeline leaks and spills resulted in a $1.4 million fine. The mine continued to operate and extract ore until it was finally shut down in 2002 due to competition from China. The US was not only self sufficient through most of the last century, it actually fulfilled the majority of the world's needs for these metals. There was little notice taken at the time as usage of these metals was low and supplies seemed assured from an undeveloped China that was content to export raw materials.

North America has abundant sources in the US mountain states and also in the Canadian Northwest Territories and the Quebec region. Numerous efforts are underway to develop those resources. Avalon Rare Earth Minerals and Great Western Minerals Group are two companies with plans to open mines in Canada. It should be noted however that some of these deposits are often mixed with radioactive thorium, presenting safety and environmental issues to mine and process.

Other sources of supply:

It has been recently reported a discovery by Japanese scientists of a vast repository of rare earth minerals, found on the floor of the Pacific Ocean that can be readily extracted. It is estimated that rare earths contained in these deposits amount to 80 to 100 billion metric tons, compared to global reserves currently confirmed by the US Geological Survey of just 110 million tons that have been found mainly in China, Russia and other former Soviet countries, and the United States. According to the Wall Street Journal, the discovery is said to include minerals such as gadolinium, lutetium, terbium and dysprosium. The minerals could multiply the known supply on land by 1,000 times. Reuters reports the deposits are located in international waters. Mining will take place "east and west of Hawaii, as well as east of Tahiti in French Polynesia". Still undetermined is the of the ease of mining and recovery. And let's be careful not to swap out one set of problems for a what could be a more challenging undertaking.

Afghanistan sits on vast mineral wealth has been detailed in several surveys, the most extensive of which were conducted by the Soviets in the 1970s. Mining companies, both Afghan and foreign, already have shown interest, notably in its copper, iron and oil. Last month, Afghan officials proudly presented what they say is $3 trillion worth of deposits scattered throughout the country, more than triple the initial dollar amount estimated by the U.S. Defense Department last June. The problem is that they are in one of the country's most dangerous spots, on the south bank of the Helmand River in southern Afghanistan, where fighting rages in a traditional Taliban stronghold.

Significant deposits also exist in Australia, Malaysia, South Africa, Brazil, and other countries, although those deposits tend to be of the lower-grade monazite ores. Lynas Corp. and Arafura Resources Ltd. are two companies that are beginning operations in Australia -- reportedly with Chinese financial backing(!)

The trickle down effect to the lighting industry:

According to a statement from Ellis Yan, CEO of TCP Inc. "Where phosphor once represented roughly 10% to 15% of the cost of a typical CFL, it can now exceed 50% (or more in some models) of the total lamps production cost". TCP was the first lighting manufacturer to alert us of the rare earth shortage issue - before it became an issue. As we experienced with the 'ballast shortage of 2010', there are forward-thinking manufacturers that choose to share information to better prepare their supply channel, and there are those who choose not to divulge any information lest they expose a possible market vulnerability.

The issue with the scarcity of phosphors is much different than what we experienced with last year's component shortage. The component shortage mainly impacted the availabilty of finished goods; fixtures, ballasts, and controls. Market conditions were not driving prices up like they are with today's rare earth minerals issue. This time around with lamp manufacturers clearly taking it on the chin, we should expect clear and frequent communications centered on recovering escalating phosphor costs through price increase notifications.

The TCP statement from Ellis Yan goes on to explain: "Over the past few months, an unprecedented rise in the rare earth mineral markets has sent fluorescent phosphor prices skyrocketing to levels not seen before. Fluorescent phosphor prices have increased nearly ten-fold over the past couple months. Phosphor costs continue to rise every week. Last week's phosphor price exceeded 2400 RMB/ kg., (vs. around 300RMB/ kg. in February 2011), more than an 800% increase in just five months time!!"

"Most of the other domestic CFL brands source their CFLs from various Chinese-based CFL manufacturers. Therefore, some of these companies can delay the price impact to their customers by simply pushing the burden temporarily to their lamp suppliers. Eventually though, all manufacturers will be forced to pass along these costs, since this is an industry wide issue - there are simply no alternative sources for this phosphor. In addition, these other CFL brands may not be able to control the actual cost impact, as their suppliers may eventually be able to pass through additional costs above and beyond these material impacts."

To Mister Yan's point, we are now being faced with price increase notifications from all major lamp manufacturers. Some of these increases will come in stages but industry chatter has been reporting price increases upwards to 40 percent.

In the coming days, Connexion will be meeting with some of our other lamp manufacturers to address the supply channel issues and price ramifications. As we learn more, we'll be communicating everything in our Industry News blog. . As formal price increase notifications are released they will be posted on our Price Increases page .

For more information and supporting documentation, please visit our dedicated Rare Earth Metals Shortages page.

The Payback Benefits of Wireless Lighting Retrofits

Thu, 16 Jun 2011 07:17:00 -0600

Whether you're considering lighting control systems, LED lighting or another cost saving solution, a bigger picture perspective is required when weighing the benefits of energy saving building technology versus its often higher material costs.

There are three main factors to consider:

Initial installation / labor cost savings
Reduction in maintenance costs (and the disruption it causes)
Lifetime energy cost savings

There is also a big shift in the real estate market that warrants consideration; the marketability of 'green buildings'. The investments in the green building market has dramatically increased in recent years. These buildings offer tenants energy-efficient, eco-friendly and healthy offices or living spaces with lower operating cost. Aside from these altruistic benefits, more investors opting for real estate that meets current energy efficiency standards so that they can reap the benefits of higher rents and lower risk premiums.

A new study just released by Clanton Associates reveals significant cost savings using wireless dimming systems. The study commissioned by Daintree Networks, compares six different lighting control retrofit scenarios for a circa 1970s office space. As you would expect, the fully wireless dimming scenario delivered the highest level of energy savings. The study also found that the higher initial equipment costs were offset by the reduced labor associated in typical wired installations.

Cost of Lighting Retrofits: This graph shows ten-year life-cycle costs for six lighting control retrofit options for a circa 1970s office building in Los Angeles, benchmarked against the first option. Source: Daintree Networks

Energy savings for the two wireless scenarios (full and partial dimming) were comparable to that of wired systems with similar capabilities, with the most advanced systems saving 49 percent over an ASHRAE 90.1-2007 baseline and 35 percent over California's Title 24-2008 efficiency standard. Also worth noting was the discovery that advanced control systems can compensate for less than optimal lighting layouts.

While this study was clearly focused on retrofit solutions, the findings in this study are also applicable for designers considering control options for newly constructed spaces. In today's competitive, new construction market with margins being so tight, it's tempting to lead with a traditional wired control solution for its lower initial material cost. But higher labor costs for running pipe and wire will soon wash out any initial savings on material.

Clanton Associates study co-author, Dane Sanders contends the additional long-term benefits of installing a networked, addressable system may far outweigh the first cost and energy costs.

The full report is available at www.daintree.net/wireless-study.

The LED Promise Land : A Connexion Market Perspective

Tue, 03 May 2011 15:14:00 -0600

LED lamps will eventually be what we use to replace incandescent bulbs - Compact fluorescent lamps are a temporary but still viable alternative to energy-efficient lighting. Think of CFLs as the bridge that connects our older, less efficient lamp technology to the LED promise land. Increasingly more lamp manufacturers are devoting larger shares of their R&D resources towards developing the LED promise land and less so within that CFL bridge. The lighting industry is clearly banking on LEDs as the final replacements for incandescents.

The reason LEDs have not yet displaced CFLs from the market are twofold: the first generation LED bulbs had a narrow and focused light beam, and the cost of LED technology is still too high. With this said, both CFL and LED technology are viable options today when looking for a replacement for incandescent lamps.

We can't stress enough that this lamp technology market is no different than any other emerging market. There are numerous profiteers in the market spewing forth their too-good-to-be-true claims and misinformation for the sake of the quick sale before the dust settles and the facts surface. The old axiom, "if it sounds too good to be true it probably is", certainly applies here. The U.S. market is flooded with cheap LED products manufactured overseas with inferior components that produce low light levels, that can't possibly live up to their exaggerated energy saving and long life claims. Unfortunately, these cheap imports are being sold on well known web sites and through big box retailers.

Also worth noting are the many so-called "manufacturers" who are in fact resellers and simply repackaging the same inferior products offered through the import channel. And to further add to this confusion, are the more reputable manufacturers that offer a lesser grade LED lamp expressly for the consumer market and a higher grade for the commercial market. As you probably guessed, the commercial grade products come at a higher price point and perform significantly better - but are easily confused with the lower priced consumer grade products. If you're making your decision solely on price, you may be setting yourself up for disappointment. The keys here are Lumens and Lumens per Watt Efficacy. This is where the Lighting Facts label comes into play. The Department of Energy (DOE) is an advocate for quality and has established the Lighting Facts program to ensure that the LED products you find on the market meet your expectations for performance. These products include LEDs for everyday lighting purposes, such as table lamps and outdoor light fixtures. They do not include flashlights, nightlights, or holiday lighting.

Participating manufacturers voluntarily pledge to report their products' performance results. Those results appear on the Lighting Facts label, which those manufacturers must include on product packaging or in the product literature. Retailers and other industry buyers can then make informed purchasing decisions for their lighting inventory.

Read the fact sheet that the DOE developed to explain Lighting Facts, titled Lighting Facts Label Supports Accuracy in Solid-State Lighting (SSL) Product Information

See also this press release from the Federal Trade Commission: Coming in 2011: New Labels for Light Bulb Packaging.

So now we know who the builders and developers are in our LED promise land. We have our low income housing; gorgeous single family homes that were erected overnight with the flaws you would expect from this type of construction and finally we have beautifully designed buildings that are truly the pinnacle of smart design.

With LED lamps, you get what you pay for. A product that costs $10 or $15 is less likely to provide superior light and long life over one that costs $50. Even high-quality LED lamps are in a relatively early stage of development; many major manufacturers are already rolling out their 2nd and 3rd generation LED lamps. As with all technology, in time prices will come down as manufacturing processes gain efficiency and the market drives commodity-like competitiveness. If you're entertaining the idea of LEDs for your commercial facility, look for the lighting facts label, this helps distinguish the manufacturer as quality conscience. Also, as mentioned earlier, make sure you're buying commercial grade lamps. The lower grade consumer products may have a tempting price but you get what you pay for.

You can and should expect long life from quality LED lighting; LED lamps last up to 10 times as long as compact fluorescents, and far longer than typical incandescents.

The expected life of the LED components is a direct function of how hot or cool they operate. The ambient temperature of the environment in which the fixtures operate must also be carefully considered, as it will also impact the overall temperature of the components. Simply stated, LEDs generate a lot of heat and heat shortens lamp life. The term "life expectancy" is defined as the point at which the LED source diminishes to 70% of its initial light output. Conversely, HID sources are rated at mean time to failure (10k - 20k hrs) at which 50% of lamp sources are expected to fail. Most manufacturers are currently claiming 70% lumen maintenance at 50,000 hours of operation, given that the junction temperature is held at or below the published limit (usually 80?C).

It's reasonable to question whether investing in LED lamps, with their comparatively high price are in fact a wise energy saving strategy. Depending on the application, we would answer with a resounding yes. Once you overcome the initial sticker shock, you must push forward and do the math; the numbers will bear out the true bottom line savings:

	Incandescent Lamp	LED Lamp
Useful Life	50,000 hours requires 50 replacements	50,000 hours requires no replacement
Wattage	100 Watts	10 Watts
Cost of bulb/lamp	$1	$100*
Energy costs to operate	$500	$54
Total cost of ownership	$550	$154

*Estimated cost of high-end LED lamp. Even at this exaggerated cost, the lifetime savings of the LED makes sense for general lighting applications.

Depending on your rate, the cost of energy is a variable (as are the actual lamp costs) - but the formula is consistent and logical.
When investing in any energy saving measure you need to take into account the total cost of ownership (including the cost saved on energy). This idea of total cost of ownership becomes even more significant when you consider where the lamps are installed and what's presently involved in lamp maintenance replacement. In commercial or industrial environments this may involve the cost of high lift scissor trucks and several man hours. Eliminating maintenance costs and the disruption it causes is a significant benefit, one that has a very real dollar value - that also needs to factor in the total cost of ownership equation.

Are LED lamps the right choice for every application? No, they're not. No single technology is right for every facility or application. The needs of your facility, environmental factors, light levels and budget hurdles should determine the optimal technology path.

In typical warehouse facilities for example, T5 high bay fluorescent fixtures still offer an unbeatable combination of energy efficiency, color rendering, lumen output and budget friendliness. Fluorescent technology will remain a smart energy efficient solution for quite some time. The key is matching the right technology to the particular application. When this is done correctly you achieve that near perfect blend of energy efficiency, luminance and return on investment.

Remember those profiteers mentioned earlier? Beware of any company that is pushing LED lighting as their one-size-fits-all solution. Our Connexion Energy Solutions Team has gone out and corrected some of these expensive mistakes - investments made by unsuspecting facility managers who got sold a bill of goods. Don't shy away from LEDs but do your research first, then partner with a reputable lighting and energy consultant. If you decide then to cross the bridge to the LED promise land you'll have a course mapped out leading you directly to those beautifully designed buildings.