Utility Automation & Engineering T&D - Utility efficiency programs could cut energy consumption up to 11 percent: EPRI

New York, NY, April 30, 2008 -- Energy efficiency improvements in the U.S. electric power sector could reduce electric consumption by 7 to 11 percent more than currently projected over the next two decades if key barriers can be addressed, according to a preliminary analysis of potential energy savings released by the Electric Power Research Institute (EPRI) and the Edison Electric Institute (EEI) during an Edison Foundation conference.

The analysis examines strategies to meet the growing demand for electricity which is expected to soar 30 percent by 2030, according to the U.S. Energy Information Administration.

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 percent, according to the EPRI-EEI study. However, additional efficiency gains could be achieved only by overcoming major market, regulatory and consumer barriers, the analysis found.

Essential steps to better efficiency 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 -- and give them the information they need to use it wisely.

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," she said. "But if we overestimate what can be accomplished, we could find ourselves without an adequate supply of electricity to meet consumer needs."

Optimal electricity savings can be achieved only if the best available technologies are deployed throughout the U.S. economy, EPRI and EEI said.

EPRI's programs and collaborations that evaluate cutting-edge technologies have identified numerous opportunities to markedly improve energy efficiency through use of "smart" and highly efficient electrical devices. For example, direct energy feedback devices, such as household thermostats that respond automatically to electricity price or demand signals, can cut energy use and save customers money.

At the same time, consumers' ever-increasing appetite for electricity-hungry devices -- even with continuing efficiency improvements -- will keep electricity demand on a steady upward trajectory. A 42-inch plasma television consumes two and a half times more energy (250 watts) than a standard 27-inch TV (100 watts). And while many large household appliances have become more efficient over the years, many smaller devices have not. Two 30-watt set-top television boxes, for example, may consume as much electricity as a large refrigerator.

"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."

Copies of the EPRI-EEI analysis are available on the Edison Foundation's Web site, www.edisonfoundation.net.

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