December 3, 2004—New England could save billions of dollars in energy costs, avoid the need to build 28 new power plants, and reduce the emissions of millions of tons of greenhouse gases if states pursued a variety of cost-effective energy efficiency options, according to a new study commissioned by Northeast Energy Efficiency Partnerships (NEEP).
The study also included a number of policy recommendations to help achieve the defined savings. According to the study, investing in energy efficiency can provide net benefits of between $13-23.7 billion to the region’s economy, as well as offset projected system electric energy and peak demand growth, deferring the need to build 28 300-MW power plants by 2013.
“New England has a history of implementing some of the most successful energy efficiency programs and policies in the country,” explained Susan Coakley, executive director of NEEP. “However, these successes can’t hide the fact that energy prices continue to rise dramatically, our regional electrical grid is strained, our climate is changing rapidly and natural gas capacity is inadequate to meet projected power plant growth. As policymakers in the region grapple with these energy-related challenges, we hope the findings of this study can help inform future energy policies.”
The study, conducted by Optimal Energy of Bristol, Vermont, aims to answer some critical questions, including whether cost-effective efficiency can offset forecasted load growth; where the major “reservoirs” of energy efficiency potential can be found; how New England can capture this potential; what it will cost and the value of the benefits; how energy efficiency can help meet regional climate change action plan goals; and the role of energy efficiency in reducing the squeeze of growing power plant demand on limited natural gas supplies in New England.
Annual energy demand in New England is expected to increase annually at a rate of 1.2%, creating an energy requirement of 147,300 gigawatt-hours (GWH) by the year 2013. The NEEP study concludes that energy efficiency is 65% cheaper than the cost of electric power supply. Continuation of current policies with increased investments in energy efficiency can reduce projected natural gas demand for electricity generation in New England by 33% in 2008 and 68% by 2013.
A copy of the study in its entirety can be obtained from NEEP.
