The Green Living Guy

Energy Efficiency Programs Costs Utilities 2 to 3 Times Less Than Traditional Power Sources; Average of 2.8 Cents per Kilowatt Hour

Energy Efficiency Programs Costs Utilities 2 to 3 Times Less Than Traditional Power Sources; Average of 2.8 Cents per Kilowatt Hour

According to reports released for years by the American Council for an Energy-Efficient Economy (ACEEE). That is because energy efficiency is the cheapest method of providing Americans with electricity.

As a result, energy efficiency programs aimed at reducing energy waste cost utilities only about three cents per kilowatt hour. However generating the same amount of electricity from sources such as fossil fuels ugh. Since it seems like it can cost two to three times more.

Therefore this report looks at the cost of running efficiency programs in 20 states from and finds an average cost of 2.8 cents per kWh. So about one-half to one-third the cost of alternative new electricity resource options. That’s as illustrated by the following graph from the report:

Levelized costs of electricity resource options.

Source: Energy efficiency data represent the results of this analysis for utility program costs (range of four-year averages for 2009-2012); supply costs are from Lazard 2013.

The report analyzes energy efficiency costs from states across the country, including: Arizona, California, Colorado, Connecticut, Hawaii, Illinois, Iowa, Massachusetts, Michigan, Minnesota, New Mexico, New York, Nevada, Oregon, Pennsylvania, Rhode Island, Texas, Utah, Vermont, and Wisconsin.

Other Key Findings Include:

At an average of 35 cents per therm, natural gas utility energy efficiency programs are also highly cost-effective (in 2013 dollars which it’s more now and the national average natural gas commodity price was 49 cents per therm).

Both electricity and natural gas efficiency programs have consistently remained low-cost resources over the past decade, which shows the reliability of efficiency as a long-term resource.
Each dollar invested in electric energy efficiency measures yields $1.24 to $4.00 in total benefits for all customers.  All which include avoided energy and capacity costs. Plus lower energy costs during peak demand periods like heat waves. All avoided costs from building new power lines, and reduced pollution.

Incorporating higher levels of energy efficiency in long-term planning can protect utilities.

Furthermore, their customers get protected against volatile and rising costs of traditional energy resources.

To read the report, The Best Value for America’s Energy Dollar: A National Review of the Cost of Utility Energy Efficiency Programs, visit:

Similarly and on October 12, 2017 PRNewswire reporting from Milwaukee.  It was that 2017 Johnson Controls Energy Efficiency Indicator (EEI) survey came out. It’s a survey of more than 1,500 facility and management executives in the United States, Canada and 10 other countries.  This report indicates that 70 percent of organizations are paying more attention to energy efficiency than a year ago. As well as 58 percent are expecting to increase investments next year.

More importantly, cost reductions remained the most important driver for investments globally. All reporting with a 77 percent rating. Rating as a very or extremely significant factor in driving i


In the U.S. and Canada, greenhouse gas emissions reduction and energy security were the most significant drivers. Therefore reporting again at 92 percent and 91 percent. These factors were ranked second and third in the global results and represent the highest ranking for greenhouse gas emissions reductions since the survey began.

Consistent with previous year’s studies, investments in heating, ventilation and air conditioning (HVAC) equipment was the most popular improvement made last year. That reported by 75 percent of respondents.

However, when asked about planned investments over the coming year, onsite renewable energy. It leads with 57 percent of organizations planning to invest. Energy storage is also therefore gaining momentum as well.

That’s because 48 percent of organizations planning to make investments in the next year.

Increased investment in on-site renewable and electric storage is driven by increasing interest in net zero energy buildings. Nevertheless as well as  facility resilience.

Fifty-four percent of organizations are planning to achieve near zero, net zero or energy positive status for at least one building within the next 10 years.

Seventy-one percent of respondents state that maintaining critical operations during severe weather events or extended power outages is very or extremely important when considering future infrastructure investments. Additionally, 52 percent of respondents say they are very or extremely likely to have one or more facilities able to operate off the grid in the next 10 years.

In conclusion, government policy continues to be important. Because 52 percent of organizations rating it as a very or extremely significant driver for investment. Therefore, when asked to identify the most effective policies driving investments in energy improvement same thing.  83 percent of survey participants ranked building performance benchmarking and certification as very or extremely important. Followed closely (81 percent) by government leadership in leasing, building design and retrofits.

Smart buildings continue to gain momentum, with 46 percent of global respondents investing in building systems integration last year.

The top four building systems that have already been integrated with other building systems include energy management (43 percent), lighting (43 percent), security (40 percent) and life safety (38 percent). More than 80 percent of organizations plan to integrate their building systems in the future.

2017 marks the 11th year Johnson Controls has conducted EEI surveys, which analyze energy efficiency and renewable energy plans, practices and investments among executive-level decision makers responsible for energy and facility management in buildings.

This year’s respondents come from 12 countries, representing the world’s major economic regions and a variety of commercial, institutional and government facility portfolios. These countries include the United States, Canada, Poland, France, Mexico, Argentina, India, Singapore, China, Colombia, Brazil and Germany. This year’s results were presented at the 28th annual Energy Efficiency Forum hosted by Johnson Controls, the United States Energy Association and the Embassy of Canada.

Source: Johnson Controls Building Technologies & Solutions, and ACEEE

%d bloggers like this: