PALO ALTO, Calif., Jan 14, 2009 -- BUSINESS WIRE
Energy efficiency programs in the United States could realistically reduce
the rate of growth for electricity consumption by 22 percent over the next
two decades if key barriers can be addressed, according to an analysis
released today by the Electric Power Research Institute (EPRI). The
potential energy savings in 2030 would be 236 billion kilowatt hours,
equivalent to the annual electricity consumption of 14 New York Cities.
Stated differently, the demand for electricity over the next two decades
could be reduced from the 1.07 percent annual growth rate projected by the
U.S. Energy Information Administration (EIA) in its 2008 Annual Energy
Outlook down to 0.83 percent, slowing the rate of increase by approximately
22 percent.
The analysis comes at a time when utilities, regulators, and policymakers
are aggressively seeking ways to meet growing electricity demand while
reducing the nation's carbon footprint. 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 EPRI analysis entitled "Assessment of Achievable Savings Potential From
Energy Efficiency and Demand Response in the U.S." found that under an ideal
set of conditions conducive to energy efficiency programs, the consumption
growth rate could be further reduced to as low as 0.68 percent annually by
2030. However, achieving the ideal would require costly investments as well
as political and regulatory support.
The report defines a realistic achievable figure that includes a forecast of
likely customer behavior, taking into account existing market, societal and
attitudinal barriers as well as regulatory and program funding barriers. The
barriers could reflect customers' resistance to doing more than the minimum
required or a rejection of the attributes of the efficient technology.
A maximum achievable figure assumes a scenario of perfect customer awareness
of utility or agency administered programs and effective, fully funded
program execution. The maximum achievable number includes the effect of
customer rejection of efficiency technologies.
For its baseline assumptions, the EPRI study relied on EIA projections of
growth in electricity consumption and peak demand for the residential,
commercial and industrial sectors from its 2008 Annual Energy Outlook. The
EPRI report and its executive summary can be downloaded at www.epri.com.
"This study is well suited to inform utilities, policymakers, regulators,
and other stakeholder groups," said Arshad Mansoor, vice president of Power
Delivery and Utilization for EPRI. "Estimates of energy efficiency potential
affect forecasts of electricity demand, and electric utilities must make
prudent investments in generation, transmission, and distribution
infrastructure to reliably and cost-effectively address this demand."
Faced with the challenges of managing energy resources wisely, maintaining
low-cost reliable power service, and reducing carbon emissions, utilities
and policy makers are looking to energy efficiency as a means to achieve
these objectives. Many states have established, or are considering,
legislation to mandate energy efficiency savings levels.
About EPRI
The Electric Power Research Institute, Inc. (EPRI, www.epri.com) conducts
research and development relating to the generation, delivery and use of
electricity for the benefit of the public. An independent, nonprofit
organization, EPRI brings together its scientists and engineers as well as
experts from academia and industry to help address challenges in
electricity, including reliability, efficiency, health, safety and the
environment. EPRI's members represent more than 90 percent of the
electricity generated and delivered in the United States, and international
participation extends to 40 countries. EPRI's principal offices and
laboratories are located in Palo Alto, Calif.; Charlotte, N.C.; Knoxville,
Tenn.; and Lenox, Mass.
SOURCE: Electric Power Research Institute, Inc.
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