ACEEE Report Analyzes Effects of EE, RE on Natural-Gas
Costs
A new report issued by the American Council for
an Energy-Efficient Economy (ACEEE) analyzes the impacts of expanded
energy-efficiency and renewable-energy investments on natural-gas prices, and
updates ACEEE's seminal December 2003 analysis that demonstrated the price
effect from reducing natural-gas demand.
The study, titled Impacts of
Energy Efficiency and Renewable Energy on Natural Gas Markets: Updated and
Expanded Analysis , finds that expanded use of energy efficiency and
renewable energy could reduce wholesale natural-gas prices by 37% in the next 12
months, based on total consumption reductions of about 1%. By 2010, wholesale
gas prices would be 20% lower, based on gas savings of over 4%. Energy
efficiency alone could reduce prices by 25% in the next 12 months, based on
savings of about 0.6%; in 2010, wholesale prices would be10% lower, based on
energy savings of about 1.3%. The reduced consumption and price effects could
result in over $33 billion in savings to natural-gas consumers in 2010, with a
total investment of about $11 billion.
"While the current focus has been on oil prices, which are still not at
record high levels in real terms, natural-gas prices continue at record real
levels, over $1.50 per million Btu higher than they were just a year ago,"
said Dr. Neal Elliott, ACEEE Industrial Program director. "Unless we take
serious action on gas demand, natural-gas prices are likely to remain high and
volatile for the next few years because new supply resources are years away at
best."
For other key natural gas research results and references, model programs, and
an expanded discussion of the policy options, visit ACEEE's
natural gas web page .
(Source: ACEEE news release, 4/28/05)