Electrical energy costs associated with commercial air conditioning exceed $45 billion in the United States alone, representing more than a third of total electricity consumed in these buildings. Coolerado products can achieve electricity savings of up to 90% compared to conventional air conditioning systems, thus bringing significant bottom line savings to its customers. Its products are highly reliable and virtually maintenance free.

In light of rapidly growing demand for energy-saving air conditioning, NewWorld’s investment will enable Coolerado to expand its sales and product support capability in domestic and international markets, as well as increase and automate its production capacity.

NewWorld Capital will appoint three of the five members of Coolerado’s board of directors. Spring Mountain Capital, LP (www.springmountaincapital.com) is the lead co-investor in the investment.

Coolerado co-founder Alan Gillan expressed his view on the investment: “We are delighted to have NewWorld Capital as a partner in our growth. Our company is confronting an enormous opportunity as demand for increased energy efficiency and reduced carbon emissions grows in countries around the world.” Added Mike Luby, Coolerado’s CEO, “The experience, skills and market access of the NewWorld team will be crucial as we drive to meet rapidly-growing global demand for energy-efficient air conditioning.”

Ali Iz, a Founding Partner of NewWorld Capital, noted: “We were deeply impressed with Coolerado’s innovative commercial air conditioning products and the economic benefits they bring to customers. Coolerado’s technology may be the biggest breakthrough in air conditioning technology in close to a century. We look forward to working with Mike and his team to achieve significant sales and earnings growth, as the company deploys its energy-saving products around the world to reduce the financial and environmental costs associated with air conditioning.””

Read more: Coolerado Press Release

In practical terms – it isn’t always windy when Americans need the most electricity. The challenge is how to productively include the seemingly haphazard output of windmills in to the power grid. The “smart grid” technology being tested by GE in Wailea is a pilot test for a program consisting of smart appliances that turn off during peak power demand as well as upgrade infrastructure computers to be better able to integrate renewables.

General Electric

There are 70 such pilot tests currently in the United States, including Miami, Florida and Boulder, Colorado. Wailea is much smaller, remote, and more easily controlled test environment than other potential sites. In fact, its small size, steady construction growth and relative isolation make it an ideal testing ground for GE. Since General Electric will be able to test using a greater percentage of the total power grid in a shorter time line, they will be able to extract more meaningful data more quickly from their work in Wailea.

Pending the full implementation of Smart Grid technology, which promises in all of its forms to increase efficiency, responsiveness and adaptability of the US power infrastructure, the challenge of consistency in renewable energy remains an issue. On a hot, overcast day with high electrical demand for air conditioning, solar power remains ineffective. If this and other pilots deliver useful results, it may be that other appliances will automatically shut down so that lights & AC could stay on.

This does not solve the problem of power storage. While fossil fuel and nuclear power production could be scaled back to allow renewables like solar and wind to take on a greater role in general, during calm days or cloudy periods their surpluses are lost and production reverts to fossil fuels.

Regardless of storage issues, smart grid technology does promise to greatly decrease foreign dependence on fossil fuels and to allow further integration of wind, solar and other intermittent green sources of power.