What is Energy Efficiency?
Energy efficiency is the use of technologies and processes to produce the same or better levels of utility (e.g., light, space conditioning, motor drive power, etc.) using less energy. Since the 1970s, energy efficiency has been our nation’s most abundant energy source. Economy-wide improvements in energy efficiency largely contributed to a 40% reduction in U.S. energy use relative to what it would have been if pre-1973 trends continued.
The Untapped Potential of Energy Efficiency
- In 2004, $43 billion was spent on efficient equipment and services which support 1.6 million jobs.
- The energy efficiency services sector will see a 2- to 4-fold increase in jobs between now and 2020.
Recognizing these achievements, it is imperative for the U.S. to harness even more of the available efficiency resource to improve productivity and maintain economic competitiveness in the years to come. Given the right choices and investments in the many cost-effective but underutilized energy efficiency technologies, the U.S. could cost-effectively reduce energy consumption by 25-30% or more over the course of the next 25-30 years.
Energy efficiency is the cheapest, fastest and cleanest energy resource.
Cheap - Saving one unit of electric energy saves three at the point of power generation. At an average utility cost of about 3 cents per kWh, energy efficiency measures are a more cost-effective option than new generation which costs 6-20 cents per kWh.
Fast - Energy efficiency measures such as lighting replacements or insulation installments are available immediately. By contrast, new coal-fired and nuclear power plants take years to permit and construct, carrying significant risk of construction or regulatory delays that can drive up costs.
Clean - Energy efficiency measures limit energy consumption and the burning of fossil fuels (such as coal and natural gas) which in turn decreases air pollution and related respiratory illnesses.
Where can we see the benefits of energy efficiency? Everywhere!
Homes:
ACEEE has found that, on average, owners of existing homes can readily save 25-35 percent on their energy costs over the next 15 years by implementing cost-effective efficiency improvements. Consider
- Adding or replacing insulation
- Sealing leaking ducts, attics, and windows
- Installing efficient heating, ventilation and cooling systems, water heating systems, and appliances
- Adhering to the latest building code or building performance standard such as ENERGY STAR or LEED®
Businesses:
Reducing energy waste in commercial buildings, factories, and farms lowers overhead costs. Energy efficiency investments in lighting, HVAC systems, sensors, controls, motors, and other energy-saving technologies make businesses leaner, more competitive, and less vulnerable to volatile energy prices.
Industrial Sector:
The industrial sector, in particular, can benefit from implementing combined heat and power (CHP) systems. CHP generates electricity and useful thermal energy in a single, integrated system. CHP systems can operate at levels as high as 85 percent efficiency.
Our Roads:
The transportation sector keeps our economy moving, but we waste a lot of energy getting people and goods from place to place. Consider
- High-efficiency vehicles
- Policies to responsibly manage growth
- Improvements to public transportation systems
For more on industrial energy efficiency, download a one pager: America's Abundant, Untapped Energy Efficiency Resource.