by Stephen Lacey, Editor
Published: 04 August 2010
New York New Figures from Bloomberg New Energy Finance (BNEF) show that wind turbine prices are still low compared to when they peaked in 2008.
Suppliers were getting about €1.22 million per MW in 2008. Today, average prices are €$1.04 million per MW. Some suppliers with too much capacity are selling turbines for under €1 million per MW.
BNEF puts together a Wind Turbine Price Index twice a year that tracks the price for wind equipment globally. According to the company's figures, wind turbine prices are down 15% over the last two years. Suppliers were getting about €1.22 million per MW in 2008. Today, average prices are €$1.04 million per MW. Some suppliers with too much capacity are selling turbines for under €1 million per MW.
The lower demand for wind is making it difficult for suppliers to unload all their turbines. European growth will fall flat this year and the U.S. market could see a 40% decline in installations. The American Wind Energy Association reported last month that wind installations in Q2 of 2010 were down 70% from Q2 2009.
The emergence of Chinese players such as Sinoval and Goldwind is also putting more pressure on the historic leaders like Vestas, Siemens and GE. While the current environment is squeezing some suppliers, many industry analysts believe it will be a good thing for the industry, as it will force manufacturers to drive down costs through innovation and product differentiation.
For an in-depth look at the factors behind this difficult period for wind, listen to our podcast, "Why the Wind Market is Hurting."
Thursday, 5 August 2010
Ocean Power Technologies Signs Historic Stakeholder Agreement for Oregon Wave Energy Project
Posted on: Wed, 04 Aug 2010 02:00:00 EDT
PENNINGTON, N.J., Aug 04, 2010 (BUSINESS WIRE) --
Ocean Power Technologies, Inc. (Nasdaq: OPTT | PowerRating and London Stock Exchange AIM: OPT) ("OPT" or the "Company") announces that it has signed a groundbreaking Settlement Agreement ("SA") with 11 federal and state agencies and three non-governmental stakeholders for its utility-scale wave power project at Reedsport, Oregon.
This agreement represents a major step towards the grant of the first license ever issued by the Federal Energy Regulatory Commission ("FERC") for a commercial-scale wave power project in the US. The SA supports the responsible, phased development by OPT of a 10-PowerBuoy(R), 1.5 megawatt capacity wave energy station in a manner that protects ocean resources and stakeholder interests. Manufacturing of the first 150 kilowatt PB150 PowerBuoy is already underway at Oregon Iron Works under its contract with OPT. The 10-buoy wave farm is expected to be connected to the grid after receipt of the FERC license and additional funding, supplying clean energy to approximately 1,000 homes.
This first-ever wave energy SA was reached after extensive technical, policy, and legal discussions regarding appropriate prevention, mitigation and enhancement measures, and study requirements. It covers a broad array of resource areas including aquatic resources, water quality, recreation, public safety, crabbing and fishing, terrestrial resources, and cultural resources. The SA includes an innovative Adaptive Management Plan that will be used to identify and implement environmental studies that may be required, and to provide a blueprint for the application of this new information as the wave power station develops.
Oregon Governor, Ted Kulongoski, said: "The Settlement Agreement is a groundbreaking document that demonstrates the State's commitment to partnering with the private sector and coastal communities to explore how we can tap into the renewable resource of ocean waves to power our communities. The manufacture of the first buoy has already created dozens of green-energy jobs in Oregon and when the 10-buoy wave power project is built, a whole new industry will be created to benefit our coastal communities. This is an exciting time for our State and I look forward to continuing to foster this new industry in Oregon in a way that is sensitive to marine habitat and continues to value this important resource for Oregon's fishermen."
Dr. George W. Taylor, Executive Chairman of OPT, said: "This agreement demonstrates OPT's commitment to develop wave power in a way that respects the environment and the needs of all who rely on ocean resources for many different uses. It shows how the private sector can work together effectively with federal, state, municipal and local groups to attain important common goals of sustainable development. I commend the State of Oregon, the City of Reedsport, and all of the stakeholders for supporting the use of OPT's innovative wave power technology as it transitions to a fully commercial product. Also, we would not have gotten to this historic point without the determination of Oregon's Governor Ted Kulongoski, who has worked hard to make Oregon a leader in the responsible development of wave power. This development will help pave the way for the United States to retain a technological advantage in wave power, an advantage that has been ceded to other countries that produce solar panels and wind turbines. Wave energy has the potential to create manufacturing jobs in America, while providing low-cost clean, environmentally benign electricity to help replace the use of fossil fuels."
Forward-Looking Statements
This release may contain "forward-looking statements" that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company's current expectations about its future plans and performance, including statements concerning the impact of marketing strategies, new product introductions and innovation, deliveries of product, sales, earnings and margins. These forward-looking statements rely on a number of assumptions and estimates which could be inaccurate and which are subject to risks and uncertainties. Actual results could vary materially from those anticipated or expressed in any forward-looking statement made by the Company. Please refer to the Company's most recent Form 10-K for a further discussion of these risks and uncertainties. The Company disclaims any obligation or intent to update the forward-looking statements in order to reflect events or circumstances after the date of this release.
About Ocean Power Technologies
Ocean Power Technologies, Inc. (Nasdaq: OPTT and London Stock Exchange AIM: OPT) is a pioneer in wave-energy technology that harnesses ocean wave resources to generate reliable, clean and environmentally-beneficial electricity. OPT has a strong track record in the advancement of wave energy and participates in a $150 billion annual power generation equipment market. The Company's proprietary PowerBuoy(R) system is based on modular, ocean-going buoys that capture and convert predictable wave energy into low-cost, clean electricity. The Company is widely recognized as a leading developer of on-grid and autonomous wave-energy generation systems, benefiting from over a decade of in-ocean experience. OPT's technology and systems are insured by Lloyds Underwriters of London. OPT is headquartered in Pennington, New Jersey with offices in Warwick, UK. More information can be found at www.oceanpowertechnologies.com.
SOURCE: Ocean Power Technologies, Inc.
PENNINGTON, N.J., Aug 04, 2010 (BUSINESS WIRE) --
Ocean Power Technologies, Inc. (Nasdaq: OPTT | PowerRating and London Stock Exchange AIM: OPT) ("OPT" or the "Company") announces that it has signed a groundbreaking Settlement Agreement ("SA") with 11 federal and state agencies and three non-governmental stakeholders for its utility-scale wave power project at Reedsport, Oregon.
This agreement represents a major step towards the grant of the first license ever issued by the Federal Energy Regulatory Commission ("FERC") for a commercial-scale wave power project in the US. The SA supports the responsible, phased development by OPT of a 10-PowerBuoy(R), 1.5 megawatt capacity wave energy station in a manner that protects ocean resources and stakeholder interests. Manufacturing of the first 150 kilowatt PB150 PowerBuoy is already underway at Oregon Iron Works under its contract with OPT. The 10-buoy wave farm is expected to be connected to the grid after receipt of the FERC license and additional funding, supplying clean energy to approximately 1,000 homes.
This first-ever wave energy SA was reached after extensive technical, policy, and legal discussions regarding appropriate prevention, mitigation and enhancement measures, and study requirements. It covers a broad array of resource areas including aquatic resources, water quality, recreation, public safety, crabbing and fishing, terrestrial resources, and cultural resources. The SA includes an innovative Adaptive Management Plan that will be used to identify and implement environmental studies that may be required, and to provide a blueprint for the application of this new information as the wave power station develops.
Oregon Governor, Ted Kulongoski, said: "The Settlement Agreement is a groundbreaking document that demonstrates the State's commitment to partnering with the private sector and coastal communities to explore how we can tap into the renewable resource of ocean waves to power our communities. The manufacture of the first buoy has already created dozens of green-energy jobs in Oregon and when the 10-buoy wave power project is built, a whole new industry will be created to benefit our coastal communities. This is an exciting time for our State and I look forward to continuing to foster this new industry in Oregon in a way that is sensitive to marine habitat and continues to value this important resource for Oregon's fishermen."
Dr. George W. Taylor, Executive Chairman of OPT, said: "This agreement demonstrates OPT's commitment to develop wave power in a way that respects the environment and the needs of all who rely on ocean resources for many different uses. It shows how the private sector can work together effectively with federal, state, municipal and local groups to attain important common goals of sustainable development. I commend the State of Oregon, the City of Reedsport, and all of the stakeholders for supporting the use of OPT's innovative wave power technology as it transitions to a fully commercial product. Also, we would not have gotten to this historic point without the determination of Oregon's Governor Ted Kulongoski, who has worked hard to make Oregon a leader in the responsible development of wave power. This development will help pave the way for the United States to retain a technological advantage in wave power, an advantage that has been ceded to other countries that produce solar panels and wind turbines. Wave energy has the potential to create manufacturing jobs in America, while providing low-cost clean, environmentally benign electricity to help replace the use of fossil fuels."
Forward-Looking Statements
This release may contain "forward-looking statements" that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company's current expectations about its future plans and performance, including statements concerning the impact of marketing strategies, new product introductions and innovation, deliveries of product, sales, earnings and margins. These forward-looking statements rely on a number of assumptions and estimates which could be inaccurate and which are subject to risks and uncertainties. Actual results could vary materially from those anticipated or expressed in any forward-looking statement made by the Company. Please refer to the Company's most recent Form 10-K for a further discussion of these risks and uncertainties. The Company disclaims any obligation or intent to update the forward-looking statements in order to reflect events or circumstances after the date of this release.
About Ocean Power Technologies
Ocean Power Technologies, Inc. (Nasdaq: OPTT and London Stock Exchange AIM: OPT) is a pioneer in wave-energy technology that harnesses ocean wave resources to generate reliable, clean and environmentally-beneficial electricity. OPT has a strong track record in the advancement of wave energy and participates in a $150 billion annual power generation equipment market. The Company's proprietary PowerBuoy(R) system is based on modular, ocean-going buoys that capture and convert predictable wave energy into low-cost, clean electricity. The Company is widely recognized as a leading developer of on-grid and autonomous wave-energy generation systems, benefiting from over a decade of in-ocean experience. OPT's technology and systems are insured by Lloyds Underwriters of London. OPT is headquartered in Pennington, New Jersey with offices in Warwick, UK. More information can be found at www.oceanpowertechnologies.com.
SOURCE: Ocean Power Technologies, Inc.
The next phase of algae biofuels
July 14, 2010 | Posted by Ken Cohen
When we made the announcement last year that we had teamed with Synthetic Genomics Inc. to research biofuels from algae, we raised a lot of eyebrows. Many applauded our investment. Some were skeptical about our commitment.
One year has passed, and I’m excited to say we’re entering the next phase of our program. Today, we announced the opening of a new state-of-the-art greenhouse facility at the SGI headquarters in La Jolla, Calif. The greenhouse will be home to the next level of research and testing in our algae biofuels program. SGI and ExxonMobil researchers are already using the facility to test whether large-scale quantities of affordable fuel can be produced from algae.
The greenhouse is an important component of the program. It gives researchers more realistic conditions for algae production, compared to an indoor lab. In the greenhouse, scientists will look at different growth systems for algae, such as open ponds and closed photobioreactors. They will also compare different types of algae, including both natural and engineered strains, and test them in varying light levels and temperature conditions to find the ones that are most productive. And, they will research other aspects of the algae fuel production process, including harvesting and bio-oil recovery operations. (Our algae brochure has an overview of the production process if you’re interested.)
Of course, this research won’t happen overnight. It could take as long as 10 years for algae biofuels to potentially reach the scale needed to make an impact on fuel supplies. In the meantime, we’ll continue to scale up our facilities and research – including a larger, outdoor test facility anticipated in 2011 – to test this promising alternative fuel source that could help meet our growing energy needs.
When we made the announcement last year that we had teamed with Synthetic Genomics Inc. to research biofuels from algae, we raised a lot of eyebrows. Many applauded our investment. Some were skeptical about our commitment.
One year has passed, and I’m excited to say we’re entering the next phase of our program. Today, we announced the opening of a new state-of-the-art greenhouse facility at the SGI headquarters in La Jolla, Calif. The greenhouse will be home to the next level of research and testing in our algae biofuels program. SGI and ExxonMobil researchers are already using the facility to test whether large-scale quantities of affordable fuel can be produced from algae.
The greenhouse is an important component of the program. It gives researchers more realistic conditions for algae production, compared to an indoor lab. In the greenhouse, scientists will look at different growth systems for algae, such as open ponds and closed photobioreactors. They will also compare different types of algae, including both natural and engineered strains, and test them in varying light levels and temperature conditions to find the ones that are most productive. And, they will research other aspects of the algae fuel production process, including harvesting and bio-oil recovery operations. (Our algae brochure has an overview of the production process if you’re interested.)
Of course, this research won’t happen overnight. It could take as long as 10 years for algae biofuels to potentially reach the scale needed to make an impact on fuel supplies. In the meantime, we’ll continue to scale up our facilities and research – including a larger, outdoor test facility anticipated in 2011 – to test this promising alternative fuel source that could help meet our growing energy needs.
Biofuels impact remains hazy as standards vary
STEVE RENNIE
OTTAWA - The biofuels industry leaves behind a hazy ecological footprint because each facility measures its environmental performance differently, says a new report.
This makes it difficult for the government to gauge how ethanol and biodiesel affect the environment.
A study done for Environment Canada earlier this year found gaps in the way biofuels plants measure greenhouse gases and other pollutants.
"The environmental performance of biofuel facilities and the (greenhouse gas) and other pollutant reductions they generate can vary substantially for different regions in Canada and will be unique for different biofuel production facilities," the report says.
It goes on to say: "As a result of these differences, and in the absence of a full set of supporting data and analyses, there are varying perceptions regarding the overall environmental performance as well as total footprint of biofuels."
Environment Canada received the report from two consultants on March 31.
The report, obtained by The Canadian Press under the Access to Information Act, tried to assess the ecological impact of making ethanol and biodiesel.
But doing so was complicated by differences in the way facilities measure and report their environmental performance.
The consultants say more work is needed before Environment Canada has better baseline data to measure pollution from biofuels plants in the future.
That could include getting industry to agree to standards for gathering and reporting pollution data. The report also calls for an industry-wide annual report and periodic stack testing at the plants.
A clearer picture should "clarify concerns held by some stakeholders, civil society and the public" about how making biofuels affects the environment, the report says.
The head of the Canadian Renewable Fuels Association said the biofuels industry collects enough data at home and abroad for the government to know its environmental impact.
"My sense of it is ... there is an awful lot of data that is, in fact, being generated by the industry," Gordon Quaiattini said in an interview.
"I think the government, in terms of moving ahead with regulation and making policy decisions based on the belief that there is a cleaner, environmentally friendly fuel being produced, I think they can do so and feel very good about doing that," he added.
The consultants sent a survey to biofuels companies across Canada. They heard back from 10 ethanol and three biodiesel plants. Five ethanol and three biodiesel plants didn't respond.
But the report acknowledges some companies may not have had enough time to fill out the survey. Companies were given just eight working days to do so.
Not all facilities answered every survey question.
The report found a "high level of uncertainty" about how much water each facility uses and loses, how many volatile organic compounds are spewed into the air and how much particulate matter each facility releases.
Many facilities also didn't provide water-quality and waste-generation data. And two plants didn't provide air-emissions data.
A senior official at Environment Canada acknowledged that gathering data on biofuel production is a work in progress. But he said the study gave the department new information.
"We didn't have data on the Canadian conditions. That was one of the very important reasons why we wanted to do this report," said Javier Gracia-Graza, head of the department's science and technology strategies branch.
"In order for us to get a better ... snapshot, I think it was important to understand where the industry stands today, what are the situations that are happening in those facilities. And we didn't have that information."
Gracia-Graza added the department is encouraged by the efforts of newer facilities to mitigate pollution.
Environment Canada commissioned the report this spring after the United States and Brazil found facilities that make renewable fuels could be behind problems with air, water and human health.
The department didn't say what environmental or health problems were associated with biofuel production.
The Conservative government has been a big backer of biofuels. In the summer of 2007, the Tories pledged $1.5 billion over nine years to boost biofuel production.
The government has also required that gasoline contain five per cent ethanol as of this year.
Ethanol, which has traditionally been made by fermenting corn, wheat or sugar cane, was seen as a way to help keep prices down at the pumps while extending the global energy supply and cutting greenhouse-gas emissions.
But a document published in January on a government contracting website says not enough is known about the potential fallout from ethanol made from sugarcane and cellulose, or of biodiesel made from oil palms, soybeans and other crops.
OTTAWA - The biofuels industry leaves behind a hazy ecological footprint because each facility measures its environmental performance differently, says a new report.
This makes it difficult for the government to gauge how ethanol and biodiesel affect the environment.
A study done for Environment Canada earlier this year found gaps in the way biofuels plants measure greenhouse gases and other pollutants.
"The environmental performance of biofuel facilities and the (greenhouse gas) and other pollutant reductions they generate can vary substantially for different regions in Canada and will be unique for different biofuel production facilities," the report says.
It goes on to say: "As a result of these differences, and in the absence of a full set of supporting data and analyses, there are varying perceptions regarding the overall environmental performance as well as total footprint of biofuels."
Environment Canada received the report from two consultants on March 31.
The report, obtained by The Canadian Press under the Access to Information Act, tried to assess the ecological impact of making ethanol and biodiesel.
But doing so was complicated by differences in the way facilities measure and report their environmental performance.
The consultants say more work is needed before Environment Canada has better baseline data to measure pollution from biofuels plants in the future.
That could include getting industry to agree to standards for gathering and reporting pollution data. The report also calls for an industry-wide annual report and periodic stack testing at the plants.
A clearer picture should "clarify concerns held by some stakeholders, civil society and the public" about how making biofuels affects the environment, the report says.
The head of the Canadian Renewable Fuels Association said the biofuels industry collects enough data at home and abroad for the government to know its environmental impact.
"My sense of it is ... there is an awful lot of data that is, in fact, being generated by the industry," Gordon Quaiattini said in an interview.
"I think the government, in terms of moving ahead with regulation and making policy decisions based on the belief that there is a cleaner, environmentally friendly fuel being produced, I think they can do so and feel very good about doing that," he added.
The consultants sent a survey to biofuels companies across Canada. They heard back from 10 ethanol and three biodiesel plants. Five ethanol and three biodiesel plants didn't respond.
But the report acknowledges some companies may not have had enough time to fill out the survey. Companies were given just eight working days to do so.
Not all facilities answered every survey question.
The report found a "high level of uncertainty" about how much water each facility uses and loses, how many volatile organic compounds are spewed into the air and how much particulate matter each facility releases.
Many facilities also didn't provide water-quality and waste-generation data. And two plants didn't provide air-emissions data.
A senior official at Environment Canada acknowledged that gathering data on biofuel production is a work in progress. But he said the study gave the department new information.
"We didn't have data on the Canadian conditions. That was one of the very important reasons why we wanted to do this report," said Javier Gracia-Graza, head of the department's science and technology strategies branch.
"In order for us to get a better ... snapshot, I think it was important to understand where the industry stands today, what are the situations that are happening in those facilities. And we didn't have that information."
Gracia-Graza added the department is encouraged by the efforts of newer facilities to mitigate pollution.
Environment Canada commissioned the report this spring after the United States and Brazil found facilities that make renewable fuels could be behind problems with air, water and human health.
The department didn't say what environmental or health problems were associated with biofuel production.
The Conservative government has been a big backer of biofuels. In the summer of 2007, the Tories pledged $1.5 billion over nine years to boost biofuel production.
The government has also required that gasoline contain five per cent ethanol as of this year.
Ethanol, which has traditionally been made by fermenting corn, wheat or sugar cane, was seen as a way to help keep prices down at the pumps while extending the global energy supply and cutting greenhouse-gas emissions.
But a document published in January on a government contracting website says not enough is known about the potential fallout from ethanol made from sugarcane and cellulose, or of biodiesel made from oil palms, soybeans and other crops.
High street stores to advise government on energy and emissions
M&S, Tesco, B&Q and HSBC to guide Whitehall towards 10% energy and greenhouse gas cuts this year
Juliette Jowit The Guardian, Thursday 5 August 2010
After the easyCouncil and John Lewis local authority, comes the Marks & Spencer ministry. The high-street giant, along with Tesco, B&Q owners Kingfisher and HSBC, has been asked to advise national government on saving money.
The companies have been given a special role in helping ministers meet their pledge to cut energy use across government by 10% in their first year in office. The pledge was one of the very first promises of the new coalition and was announced against a backdrop of banners for the 10:10 climate change campaign, which is supported by the Guardian. The initiative is "inspired by 10:10".
Under the guidance of the high-street stalwarts, departments are embarking on a range of measures, to be outlined today, from the straightforward-but-important business of installing motion sensors so lights go out when offices are empty (or ministers sit still for too long), to inter-department competitions and pep talks by inspirational speakers to persuade staff to do their bit by boiling less water or taking the stairs instead of the lift.
Although primarily seen as a green policy, led by one of the two environmental departments, the financial savings arethe focus, said Greg Barker, the Conservative climate minister.
"If you get them by the finances, the hearts and minds will follow," Barker told the Guardian.
"There's an absolute imperative in making sure these savings come from energy bills and [not] from elsewhere; so that really focuses minds," added Barker, referring to tough budget cuts to be announced this autumn. "Also if they can cut this there will be more money for frontline services."
Longer term, reductions would continue and eventually departments could cut energy use so low that government could generate more power than it uses from renewable sources on its land and buildings, said Barker. "Ultimately my ambition is [for] government to become a net exporter of energy," he said, citing the possibility of electricity from wind turbines or solar panels and heat from biogas and biomass.
On only his third day in the job the prime minister, David Cameron, walked the 350 yards from 10 Downing Street to the Department for Energy and Climate Change in Whitehall Place to announce the 10% target, and declared his government would be the "greenest ever".
Following the announcement, a cross-government committee was set up to oversee the new goal. As well as 19 central departments, Marks & Spencer, Tesco, Kingfisher, HSBC and EDF Energy have also been given seats.
Perhaps the most important lesson from M&S – famous for its Plan A campaign: "because there is no Plan B" – has been the importance of ongoing leadership from the top, said Barker.
"It's not enough to just have a campaign, it has to be constantly lead from the top, and has to be continued, month in and month out," said Barker, citing the PM's involvement, and the decision to give the Treasury joint ownership of the 10% target.
Department facilities managers were also summoned to a briefing with Barker and Francis Maude, minister for the Cabinet Office and paymaster general, at which they were told "you are responsible for delivering a key promise by the prime minister."
"There were all sorts of special pleading and requests for opt-outs, we had to be ruthless," added Barker.
The other high-street names are more closely involved in advising on practical measures to cut last year's 700,000 tonnes of CO2 emissions, often continuing work started by the previous Labour administration, under which DECC and five other departments plus 10 Downing Street had already signed the 10:10 pledge to cut emissions 10% in 2010.
All departments and directly-controlled executive agencies like job centres - but not the NHS, for example - have targets to reduce energy use and so greenhouse gas emissions at least 10%. Energy prices are hard to forecast, but a 10% reduction on last year's combined bills would save £30m.
With the combined cost of heating and lighting being 71% of gas and electricity use, most of the focus is on these areas so far, including fitting lower-energy use LED bulbs, motion sensors in offices and washrooms to turn lights off when they are empty, and adjusting heating and temperature controls. In DECC, for example, the gap between when the heating goes off and cooling comes on has been widened from 21-23C to 20-24C, and engineers are now considering raising the upper limit by another 1C, while hot water boilers are now turned off at 3pm, rather than previously 7pm-8pm.
They other main area of focus is staff behaviour change. In DECC, as well as stickers showing people the stairs as a reminder not to use the lift unnecessarily, staff get regular briefings about energy saving and talks from outside speakers such as celebrity sociologist and Third Way pioneer Anthony Giddens, and Science Museum director Chris Rapley, while a competition to cut energy use is about to be launched between different floors.
Juliette Jowit The Guardian, Thursday 5 August 2010
After the easyCouncil and John Lewis local authority, comes the Marks & Spencer ministry. The high-street giant, along with Tesco, B&Q owners Kingfisher and HSBC, has been asked to advise national government on saving money.
The companies have been given a special role in helping ministers meet their pledge to cut energy use across government by 10% in their first year in office. The pledge was one of the very first promises of the new coalition and was announced against a backdrop of banners for the 10:10 climate change campaign, which is supported by the Guardian. The initiative is "inspired by 10:10".
Under the guidance of the high-street stalwarts, departments are embarking on a range of measures, to be outlined today, from the straightforward-but-important business of installing motion sensors so lights go out when offices are empty (or ministers sit still for too long), to inter-department competitions and pep talks by inspirational speakers to persuade staff to do their bit by boiling less water or taking the stairs instead of the lift.
Although primarily seen as a green policy, led by one of the two environmental departments, the financial savings arethe focus, said Greg Barker, the Conservative climate minister.
"If you get them by the finances, the hearts and minds will follow," Barker told the Guardian.
"There's an absolute imperative in making sure these savings come from energy bills and [not] from elsewhere; so that really focuses minds," added Barker, referring to tough budget cuts to be announced this autumn. "Also if they can cut this there will be more money for frontline services."
Longer term, reductions would continue and eventually departments could cut energy use so low that government could generate more power than it uses from renewable sources on its land and buildings, said Barker. "Ultimately my ambition is [for] government to become a net exporter of energy," he said, citing the possibility of electricity from wind turbines or solar panels and heat from biogas and biomass.
On only his third day in the job the prime minister, David Cameron, walked the 350 yards from 10 Downing Street to the Department for Energy and Climate Change in Whitehall Place to announce the 10% target, and declared his government would be the "greenest ever".
Following the announcement, a cross-government committee was set up to oversee the new goal. As well as 19 central departments, Marks & Spencer, Tesco, Kingfisher, HSBC and EDF Energy have also been given seats.
Perhaps the most important lesson from M&S – famous for its Plan A campaign: "because there is no Plan B" – has been the importance of ongoing leadership from the top, said Barker.
"It's not enough to just have a campaign, it has to be constantly lead from the top, and has to be continued, month in and month out," said Barker, citing the PM's involvement, and the decision to give the Treasury joint ownership of the 10% target.
Department facilities managers were also summoned to a briefing with Barker and Francis Maude, minister for the Cabinet Office and paymaster general, at which they were told "you are responsible for delivering a key promise by the prime minister."
"There were all sorts of special pleading and requests for opt-outs, we had to be ruthless," added Barker.
The other high-street names are more closely involved in advising on practical measures to cut last year's 700,000 tonnes of CO2 emissions, often continuing work started by the previous Labour administration, under which DECC and five other departments plus 10 Downing Street had already signed the 10:10 pledge to cut emissions 10% in 2010.
All departments and directly-controlled executive agencies like job centres - but not the NHS, for example - have targets to reduce energy use and so greenhouse gas emissions at least 10%. Energy prices are hard to forecast, but a 10% reduction on last year's combined bills would save £30m.
With the combined cost of heating and lighting being 71% of gas and electricity use, most of the focus is on these areas so far, including fitting lower-energy use LED bulbs, motion sensors in offices and washrooms to turn lights off when they are empty, and adjusting heating and temperature controls. In DECC, for example, the gap between when the heating goes off and cooling comes on has been widened from 21-23C to 20-24C, and engineers are now considering raising the upper limit by another 1C, while hot water boilers are now turned off at 3pm, rather than previously 7pm-8pm.
They other main area of focus is staff behaviour change. In DECC, as well as stickers showing people the stairs as a reminder not to use the lift unnecessarily, staff get regular briefings about energy saving and talks from outside speakers such as celebrity sociologist and Third Way pioneer Anthony Giddens, and Science Museum director Chris Rapley, while a competition to cut energy use is about to be launched between different floors.