Mississippi Energy Efficiency Started Gaining Momentum
Mississippi energy efficiency moved from the bottom of national rankings toward a more ambitious policy strategy in the early 2010s.
For years, the state had significant room to improve. Homes, businesses and public buildings consumed energy that stronger efficiency standards and programs could help conserve. However, that challenge also created an economic opportunity.
Instead of treating energy efficiency simply as an environmental issue, Mississippi began looking at efficiency as an economic development strategy.
That distinction mattered.
Energy efficiency investments could lower monthly utility costs. At the same time, they could support electricians, HVAC technicians, insulation contractors, engineers and other skilled workers.
ACEEE Identified Major Economic Potential for Mississippi Energy Efficiency
An American Council for an Energy-Efficient Economy, or ACEEE, analysis examined what stronger energy efficiency policies could mean for Mississippi.
The research suggested that a comprehensive efficiency strategy could substantially reduce future electricity and natural-gas demand. Moreover, those savings could keep more money circulating within Mississippi’s economy.
Consumers benefit when buildings require less energy to heat, cool and operate. Businesses can also benefit because lower operating expenses can improve competitiveness.
Meanwhile, utilities may avoid or delay some investments in new generating capacity and other infrastructure when efficiency reduces peak demand.
Therefore, efficiency can work like an energy resource of its own.
Instead of producing another unit of electricity, Mississippi can eliminate the need to consume that unit in the first place.
Mississippi Energy Efficiency Can Create Local Jobs
The employment potential makes the strategy especially important.
Energy efficiency work usually happens locally. A building in Mississippi cannot outsource its insulation installation to another country. Likewise, an aging HVAC system requires technicians who can physically inspect, repair or replace the equipment.
That creates opportunities across multiple trades.
Contractors can install insulation and weatherization improvements. Electricians can upgrade lighting and controls. HVAC specialists can replace inefficient heating and cooling equipment. In addition, energy auditors can identify where buildings waste electricity and fuel.
As investment increases, those individual projects can support a broader efficiency workforce.
Billions in Potential Economic Benefits
ACEEE’s analysis also pointed toward billions of dollars in potential economic benefits under stronger efficiency policies.
Those benefits extend beyond the initial energy savings.
When a homeowner spends less on electricity, that household has more money available for other expenses. Similarly, when a business lowers its utility costs, it can potentially redirect capital toward employees, equipment or expansion.
Consequently, the economic impact can spread beyond the original efficiency project.
Furthermore, energy efficiency upgrades can improve building comfort and performance. Better insulation can reduce temperature swings. Modern HVAC equipment can provide more efficient heating and cooling. Advanced lighting can lower electricity consumption while improving illumination.
The result can be a building that costs less to operate while performing better.
Reducing Electricity and Natural-Gas Demand
Efficiency also addresses energy demand directly.
Every inefficient air conditioner, poorly insulated attic or outdated lighting system represents an opportunity to reduce consumption.
Multiply those opportunities across thousands of homes and commercial buildings, and the potential becomes substantial.
Lower electricity demand can also reduce pressure on the power grid, particularly during periods of extreme summer heat. Meanwhile, improved building envelopes and efficient heating systems can reduce natural-gas consumption.
Therefore, the benefits reach beyond individual utility bills.
Efficiency can become part of a larger strategy for improving energy reliability, affordability and resilience.
Mississippi Had an Opportunity to Catch Up
Mississippi’s historically low efficiency ranking did not have to define its future.
In fact, starting from a lower baseline meant the state had numerous opportunities for relatively straightforward improvements.
Weatherization mattered. Better insulation mattered. Efficient air conditioning mattered. Modern lighting mattered too.
Most importantly, these technologies did not require waiting for some future breakthrough. Many were already commercially available.
The challenge involved creating policies, utility programs and incentives capable of bringing those technologies into more Mississippi homes and businesses.
Energy Efficiency Is an Economic Strategy
Ultimately, Mississippi’s emerging efficiency strategy demonstrated something important about the clean energy transition.
Saving energy can create economic value.
It can reduce household expenses. It can lower business operating costs. Furthermore, it can support skilled local employment while reducing unnecessary electricity and natural-gas consumption.
Mississippi had considerable ground to cover in the early 2010s. However, that gap also represented an enormous opportunity.
With stronger programs, better building performance and sustained investment, energy efficiency could become more than a conservation measure.
It could become an engine for jobs, savings and long-term economic development.
Mississippi Saw Energy Efficiency as Economic Development
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
efforts, and could save the state billions while creating thousands of jobs. These findings come from a new report released today by the American Council for an Energy Efficient Economy (ACEEE), A Guide to Growing an Energy-Efficient Economy in Mississippi .
In October 2012, Gov. Phil Bryant released his energy plan, Energy Works: Mississippi’s Energy Roadmap. The plan signals the state’s intent to aggressively develop its vast energy resources, including energy efficiency, in order to spur economic development. The proactive leadership in the state, both public and private, has helped catapult Mississippi to the most improved state in the country in this year’s State Energy Efficiency Scorecard. Only a year ago, Mississippi ranked last place in ACEEE’s annual Scorecard, which ranks states according to their efforts to save energy.
“One of the goals of Energy Works is expanding Mississippi’s energy capacity through efficiency, and we are proud to see these efforts pay off,” Gov. Bryant said. “Energy is one of Mississippi’s most important resources. Increased efficiency will help improve the competitiveness of Mississippi’s businesses, attract new companies to the state, and improve the reliability of our energy system.”
“Governor Bryant and leaders across the state have made laudable strides, enacting a number of intelligent, common-sense policies that will help to stimulate the local economy and meet the growing energy needs of the state for years to come,” said ACEEE executive director Steven Nadel.
ACEEE Projected Significant Savings and Job Growth
ACEEE’s report concludes that through these policies Mississippi could create 32,000 jobs and free up $4.3 billion over the next decade.
“There is a significant opportunity for energy efficiency savings in Mississippi, and our report is intended as a guide to help inform the process of capturing as much of this opportunity as possible over the next 10 years,” said Max Neubauer, senior policy analyst and lead author of the report. “The report outlines a comprehensive—but not exhaustive—set of strategic energy efficiency policy and program opportunities that Mississippi and its utilities can consider when developing their portfolios. The report also offers insight into prudent regulatory policy that will help ensure that Mississippi gets the most out of its future investments.”
Mississippi is quickly moving forward with energy efficiency investments, spurred by state policies and existing utility energy efficiency programs. In October, the Tennessee Valley Authority and Severstal, an auto-grade steel manufacturer, celebrated the successful completion of energy efficiency improvements to Severstal’s facility in Columbus, Miss. The improvements will save Severstal approximately $1.6 million in energy costs annually and save enough energy to power 2,000 homes.
“The progress we’ve seen in the past year is a direct result of Governor Bryant’s focused leadership in this area,” said Karen Bishop, director of the Mississippi Development Authority’s Energy and Natural Resources Division. “We are working closely with the private sector and our utility partners, as well as state agencies and local governments, and I expect that Mississippi will continue to rise in the ACEEE Scorecard rankings in the coming years.”
Mississippi’s efforts will serve as an example for other states to emulate. The policies and programs developed and administered by state agencies and utilities will guide efforts elsewhere, expediting greater economic development throughout the region.
To read the report visit: ACEEE
Conclusion: Efficiency Can Be an Economic Strategy
Mississippi energy efficiency policy showed that cutting energy waste is not only an environmental goal.
It can also reduce operating costs, strengthen grid reliability and support local job creation.
