EPRI Analysis Shows Energy Efficiency Can Reduce Need for New Generation By 7% to 11%

22 April 2008

Energy efficiency improvements in the US electric power sector could reduce the need for new electric generation by an additional 7% to 11% 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 today.

Achievable potential savings. Click to enlarge.

The draft findings were presented by the Electric Power Research Institute (EPRI) and the Edison Electric Institute (EEI) during an Edison Foundation conference, Keeping the Lights On: Our National Challenge, which examines strategies to meet the growing demand for electricity which is expected to soar 30% by 2030, according to the US 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%, 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.

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. We think a 7-percent efficiency improvement is realistic—and gains of 11 percent or more are technologically feasible—depending on the degree to which various obstacles can be overcome.

—Dr. Michael Howard, senior vice president at EPRI

Essential steps 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. 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.

—Diane Munns

Optimal electricity savings can be achieved only if the best available technologies are deployed throughout the US economy, EPRI and EEI said. Much of the research involved in realizing more efficiency is being conducted by EPRI at its Living Laboratory for Energy Efficiency in Knoxville, Tenn.

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. 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. To maximize utility investment in efficiency programs, energy efficiency must be treated as an energy resource on par with new generation.

—Diane Munns

The Electric Power Research Institute (EPRI) leads research, development and demonstration of technical and operational solutions in electricity generation, delivery and use. The Edison Electric Institute (EEI) is the association of US shareholder-owned electric companies. Its members serve 95% of the ultimate customers in the shareholder-owned segment of the industry, and represent approximately 70% of the US electric power industry.

Resources

• Energy Efficiency: How Much Can We Count On?