Utility Based Efficiency Programs Can Cut Energy More Than Previously Thought

That is the finding from a preliminary analysis released from the Electric Power Research Institute (EPRI). Energy efficiency improvements in the U.S. electric power sector could reduce electric consumption by 7% to 11% more than currently projected over the next two decades if key barriers can be addressed, according to the EPRI findings.

The analysis comes at a time when utilities, regulators, and policymakers are seeking ways to meet growing electricity demand, while reducing the carbon footprint of the U.S. economy, notes EPRI. The key challenge is to maximize potential gains in energy efficiency, while ensuring adequate new electric generation to maintain reliability and meet future demand.

The draft findings were presented by EPRI and the Edison Electric Institute (EEI) during an Edison Foundation conference. That demand growth projection would be even higher without the implementation of existing building codes, appliance standards and market-driven consumer incentives, which will shave electricity consumption by 23%, according to the EPRI-EEI study. However, additional efficiency gains could be achieved by overcoming major market, regulatory and consumer barriers, the analysis found.

“This study demonstrates the potential of energy efficiency to offset some of the projected need for new electric generation as cutting-edge technologies become available and are adopted,” said Dr. Michael Howard, senior vice president at EPRI. “We think a 7% efficiency improvement is realistic – and gains of 11% or more are technologically feasible – depending on the degree to which various obstacles can be overcome.”

Essential steps, according to the analysis, include increased consumer education; adoption and enforcement of aggressive building codes and appliance standards; creation of utility business models that promote increased efficiency within the power sector; and adoption of electricity pricing policies that more accurately reflect the cost of providing electricity to consumers.

Diane Munns, executive director at EEI, said the power sector will seek the greatest efficiency gains possible, but cautioned that this will be no easy task and that utilities still must plan for substantial new generation and transmission to assure reliability.

“Achieving efficiency improvements going significantly beyond those already in the pipeline will be a major undertaking,” Munns said. “No matter how you slice it, we’ll have to build significant new generation to ensure that we meet demand. The greater gains we make in energy efficiency, the better off everyone will be, because we’ll have more cost-effective options for serving our customers. But if we overestimate what can be accomplished, we could find ourselves without an adequate supply of electricity to meet consumer needs.”

Much of the research involved in realizing more efficiency is being conducted by EPRI at its Living Laboratory for Energy Efficiency in Knoxville, TN. “While electricity rates will rise due to increasing across the board costs of producing electricity, energy efficiency improvements can help reduce some of these costs to consumers,” Munns said. “To maximize utility investment in efficiency programs, energy efficiency must be treated as an energy resource on par with new generation.”

“We are making remarkable technological advances in the area of efficiency,” Howard said. “The question is how much more can we achieve? The key will be finding the will to fully demonstrate and adopt both currently available and emerging, hyper-efficient electric technologies.”

Copies of the EPRI-EEI presentation are available on the Edison Foundation’s Web site.