3 BIG ENERGY EFFICIENCY STORIES YOU SHOULD KNOW ABOUT
Here are a few important efficiency stories flying under the radar.
This week has seen three big wins for energy efficiency, all of which have slipped largely under the radar.
First, Ohio ratepayers have reaped huge benefits from FirstEnergy bidding efficiency into the most recent PJM capacity auction, netting an expected $28 million over the four-year period where payments are available.
Next, the American Council for an Energy-Efficient Economy released a new analysis finding that energy efficiency could save $4.2 billion in energy costs while creating $3 billion in economic output.
Last, but certainly not least, the American Gas Associated found that more than 40 gigawatts of combined heat-and-power (CHP) potential has a payback of less than ten years.
Ohio saves big bucks
Ohio ratepayers and regulators knew that statewide energy efficiency programs had to be cost-effective to be enacted, which is accomplished by paying off the capital investments through reduced energy consumption. A pleasant bonus, according to exclusive analysis from Sierra Club, is that First Energy’s efficiency credits, totaling around 165 megawatts, have yielded new revenues of about $6.9 million per year for four years.
This contributes to offsetting program costs beyond the $4 these investments saved to every $1 spent. As Daniel Sawmiller, Senior Campaign Representative at the Sierra Club, explained, “This auction turns energy efficiency into a commodity that can be bought and sold like other forms of energy. It’s a clean and inexpensive energy resource that creates downward pressure on electricity prices for everybody. We should be doing everything we can to maximize our energy efficiency and promote the lower prices and economic growth that go with it.”
Efficiency directly saves consumers money on their monthly bills when they use less energy, but also indirectly with lower clearing prices in the capacity auction. Capacity auctions are less obvious, but equally important.