MORE EVIDENCE OF HOW EFFICIENT EFFICIENCY IS

Energy Efficiency Improvements Will Create Thousands Of New Jobs While Saving Ohio Billions; National Group's Study Shows Ohio Can Create More Than 32,000 New Jobs, Save Over $19 Billion, and Reduce Energy Demand Over The Next 15 Years
March 25, 2009 (American Council for an Energy Efficient Economy)

SUMMARY
National primary elections and national presidential elections have been deeply influenced by what happened in Ohio because Ohio is as much the heartbeat of the nation as anyplace. For that reason, Shaping Ohio's Energy Future: Energy Efficiency Works is much more than a study of what energy efficiency can do for Ohio. By demonstrating what energy efficiency can do for Ohio, it offers a vision of what it can do for the nation.

The American Council for an Energy Efficient Economy (ACEEE) study finds energy efficiency strategies can save the state $19 billion and create 32,000 new jobs by 2025 in a wide range of fields.

Those are the benefits. To obtain those benefits, the program's goal is to cut electricity consumption through (1) efficiencies (building weatherization, changing light bulbs and appliances, etc.), (2) adopting combined-heat-and-power (CHP) technology and (3) instituting smart power hardware and demand-response (DR) strategies to alter peak demand. The first 2 will cut electricity use 18% by 2025. DR will cut it another 11%.

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Efficiency improvements started in Ohio with the passage of SB 221, the state’s Energy Efficiency Resource Standard (EERS), which requires 22% electricity consumption savings by 2025.

ACEEE’s report lays out 10 further program and policy innovations (5 EERS-related and 5 complimentary) by which Ohio's investor-owner utilities can get to the 2025 goals.

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EERS-related suggestions:
(1) Increased residential building initiatives and improved incentives for homes now unable to participate in current programs due to costs.
(2) Increased commercial building initiatives beyond simple equipment upgrades to upgraded system design, equipment integration and building operations.
(3) Manufacturing Centers of Excellence in partnership with universities to get at (a) identified efficiency opportunities, (b) expertise and (c) a trained workforce.
(4) Increased rural and agricultural initiatives (educational programs, rural audit programs, matching funds for USDA grants).
(5) Expanded CHP via regulatory reform and new financial incentives.
Complementary Policies:
(6) Workforce development.
(7) Increased use of efficiency measures in state and local government facilities (31% of commercial electricity consumption).
(8) Increased state-level appliance and equipment efficiency standards that expand on federal standards.
(9) Better building codes that meet federal guidelines and make for more energy-efficient homes.
(10) Expanded demand-response (DR) programs (customer education, financial incentives, agency coordination) to shift peak period consumption to off-peak periods.

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COMMENTARY
Interesting observation: Investing in efficiencies provides as much work and generates as much in revenues as building 250 new manufacturing facilities but without any of the increased demand for energy or raw materials and with no associated emissions or other pollution.

The nature of the jobs created in expanding efficiency programs is remarkable. It ranges from attorneys, scientists, engineers and consultants to blue collar laborers paid “skilled work” salaries with benefits.

The report's 10 detailed actions and strategies (energy-efficient windows, compact fluorescent light bulbs, ENERGY STAR® appliances, expanded CHP at factories and institutional buildings, etc.) alone could keep electricity demand growth flat through 2025.

Demand-response (DR) is one of the hottest topics in the energy world right now. The basic idea is simple: When demand on the grid starts rising toward peak capacity, there are many things the system as a whole and individual customers can do to avoid stresses.

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DR includes a pricing system to encourage ratepayers to choose to avoid using electricity during periods of peak demand.

It also includes having a supply of New Energy such as solar rooftop systems or local wind that can be brought onto the grid quickly to supplement the base load.

DR is an essential capability of a “smart” grid. It begins in the transmission system with wires adequate for 2-way communication between the utility and the consumer. The system "intelligence" recognizes the onset of peaking demand and invites ratepayers, voluntarily and automatically, to reduce power use.

DR requires transmission system software as well as software at the individual building level. Lights can be dimmed an unnoticeable but crucial level. Thermostats can be adjusted without significantly affecting comfort. Appliances not being used can be temporarily put into “sleep” mode. Outlets, circuits, and even whole buildings without activity can be temporarily tuned out.

The report includes a summary of energy efficiency programs in Ohio, a discussion of key issues and a list of detailed recommendations and "best practices" based on ACEEE's ~30 years of experience.

CHP schematic. (click to enlarge)

QUOTES
- Dr. R. Neal Elliott, Associate Director, ACEEE/lead author: "Energy efficiency is the most affordable energy resource in Ohio…While 22% efficiency savings may seem challenging, other states are already reducing electricity growth at higher rates than that, at a cost of less than 4 cents per kilowatt-hour. Energy efficiency resources are available in this cost range in every state, including Ohio."

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- Max Neubauer, Research Assistant, ACEEE/lead researcher: "Energy efficiency is the first fuel in the race for affordable and clean energy, because it is the cheapest and fastest to deploy…When combined with demand response programs, efficiency offers Ohio a sustainable energy future that provides greater energy security, costs less, pollutes less, and supports economic growth better than its current course."