Finding common ground on hot button energy issues
has been a major impediment. But one area where
policymakers are coming together is in the realm of
energy efficiency, which is cost-effective while it
is also reducing emissions and the reliance on
electric generation. Some ideas:
In some jurisdictions across the country, customers
can opt into real-time or time-of-use pricing
programs, which is a step beyond energy
conservation. Such programs allow users to adjust
their usage, for example, from 3 p.m. to 7 p.m.
during summer weekdays when the cost of electricity
is highest. The smart grid has the potential to
enable those policies to become a national movement.
If an industrial plant is flexible and can run key
machinery at times when the electricity load overall
is at its lowest ebb, then it could save a lot of
money. Residential customers, on the other hand,
would simply choose to run their dishwashers or
washing machines at night to avoid being hit with
higher costs.
The federal government is also facilitating and
encouraging wise energy use, while simultaneously
protecting the environment and conserving natural
resources. Lower energy bills, of course, result in
an increase in funds available for other critical
purposes.
"Each and every individual action we take -- from
turning off lights in unoccupied rooms to turning
off computer monitors and computers, if possible --
adds up to a brighter future for us all," the Energy
Department says.
Not everyone, however, thinks government is a
necessary player when it comes to promoting energy
efficiency. Sterling Burnett, with the
National Center for Policy Analysis in Dallas,
has explained to this writer that if people want
more energy-efficient household appliances or
insulation systems, they can buy these products. But
he is opposed to federal policies that would
encourage such choices through tax incentives or
mandates.
Nevertheless, the public sector is involved. And it
has joined forces with the private sector. And even
though the length of time to earn a
return-on-investment for many energy efficiency
technologies is sometimes short, such projects are
often sidelined until homeowners or companies figure
out ways to pay for them.
About $90 billion in federal stimulus has been used
to advance energy efficiency programs. That includes
everything from weathering homes to rolling out the
smart grid that allows utilities and customers to
work together to save energy.
Energy Efficiency Pays
A study called “The
$20 Billion Bonanza" was produced by the
Southwest Energy Efficiency Project. It concludes
that for every dollar invested in those efficiency
programs, $2 in savings result for business and
residential utility consumers. The report cites
other benefits such as the avoidance of major
capital expenditures associated with new power
plants and even the retirements of some older and
less efficient generators.
Meantime, some private consultancies are actively
working with those businesses that want to reduce
their energy consumption and cut their costs.
Consider
Metrus Energy: The San Francisco-based business
performs energy efficiency retrofits. After auditing
the premises of large industrial and commercial
customers, it will discuss the work that can be done
and where the savings can be had. It will then
fine-tune its ideas based upon what those businesses
hope to achieve.
It may suggest simple solutions ranging from the
installation of modern lighting and automatic
controls to more complicated ones that involve the
replacing of furnaces and boilers. After, it
estimates both the costs and the potential savings.
Metrus, which has worked with BAE Systems and
Siemens, is paid on a
per-units-of-electricity-avoided basis -- a formula
that is derived in advance of any work.
"It's the best of times and the worst of times for
energy efficiency," says Bob Hinkle, chief executive
of Metrus, in an earlier talk with this writer. "It
is the best of times because it is now well accepted
as the right thing to do from an economic and
environmental perspective. But it remains difficult
to implement projects because capital is still
constrained."
Energy efficiency is ready to become a central
component of U.S. energy policy. To take off,
however, technology developers must cope with a
number of nuances that include everything from the
allocation of limited federal resources to the type
of oversight that will eventually apply to that
business sector. In the end, increasing energy
savings and reliability requires the same tenacity
as does the exploration and generation of
traditional fuel sources.
EnergyBiz Insider has been awarded the Gold for
Original Web Commentary presented by the American
Society of Business Press Editors. The column is
also the Winner of the 2011 Online Column category
awarded by Media Industry News, MIN. Ken Silverstein
has been honored as one of MIN’s Most Intriguing
People in Media.
Twitter: @Ken_Silverstein
energybizinsider@energycentral.com
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