Efficiency Potential & Market Analysis
Even when the economy is doing well, economic growth and job creation always seem to be at the center of focus for policymakers at every level of government. So it’s only natural that when energy efficiency policies and programs are being discussed one of the questions that often comes is how will proposed initiatives affect jobs.
Energy efficiency has come a long way. From its roots in the energy crises of the 1970s, it has grown and evolved to become an integral part of our energy landscape. Examples of energy efficiency advances are ubiquitous and often invisible. We see the results of such advances in the slow growth of electricity demand in recent years. Our homes, offices, businesses, and factories continue to become more energy efficient due to innovation in technologies and applications.
Energy efficiency programs serving utility customers have grown rapidly over the past decade. While the rates of growth may have slowed in the last couple of years, most states have policies in place to achieve higher and higher energy savings from utility energy efficiency programs. In order to achieve high energy savings, program administrators can follow two key strategies: (1) get more customers to participate, and (2) get more savings from each participating customer.
It’s been a decade since we last looked at energy efficiency potential studies. Here’s what we found.
Energy efficiency technical, economic, and achievable potential studies are complex analytical tools used for quantifying the amount of energy savings a state or utility can achieve over time through a portfolio of programs. Potential studies are used regularly across the country for a variety of purposes, such as to inform program design and energy system planning, or to convey the benefits and costs of treating energy efficiency as a resource. Clearly, potential studies are invaluable in guiding future investments in energy efficiency.
As the World Cup comes to a close, fans are wondering which country will claim the championship. But the World Cup is not the only international competition coming to an exciting end next week. On July 17, ACEEE will release its 2014 International Energy Efficiency Scorecard, which will showcase winning energy efficiency policies and programs from around the globe.
After a long warm-up, energy efficiency is taking its rightful place as a starting player in the clean energy game. This spring, we’ve seen both the public and the private sector put serious resources into helping build financing solutions to help efficiency reach the scale it needs.
The moment we have been waiting for has arrived! The Warehouse for Energy Efficiency Loans (WHEEL), a financing platform that will open the market for energy efficiency investment to institutional investors, is open for business. WHEEL acts as a virtual financial warehouse for relatively small individual loans, holding them until there are enough loans to attract attention from large investment houses.
Recent months have seen some exciting developments in energy efficiency finance. Investment funds, capitalized at about $200 million, are set to break into the potentially extensive market for energy efficiency projects in the buildings sector.
Proponents of energy efficiency believe that it not only saves energy and money, it creates jobs. The stronger the evidence that energy efficiency programs and polices create economic opportunity and jobs, the greater the likelihood that federal, state, and local governments will support them. Managers of existing programs use a variety of methods to monitor and evaluate their job creation impacts in order to justify and extend the investment.
Portfolio of Policies and Programs Could Meet 13% of Electricity and 10% of Natural Gas Demand, Create 32,000 Jobs, and Generate $4.3 billion in Economic Growth by 2025