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Energy Efficiency Costs Less

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Energy Efficiency Costs Less

A recent study by ACEEE (American Council for an Energy-Efficient Economy) shows that energy efficiency costs less; a cost lower than any other new electricity resource option. What does that mean? Well, frankly, we are trending toward a day when there will not be enough capacity to provide electricity to everyone, every minute of every day across the U.S. In some areas of the country, that day is fast approaching.

 The solution to this shrinking excess in capacity is two-fold. We can either increase the capacity of electricity produced, or decrease the demand for electricity that is required, and here are the most viable options:
  1. Energy Efficiency Programs (reduces demand)
  2. Site-Based Renewable Energy Production (reduces demand)
  3. New Large-Scale Renewable Energy Production Plants (produced by utilities)
  4. New Nuclear Power Plants (produced by utilities)
  5. New Natural Gas Fired Power Plants (produced by utilities)

There has been a lot of discussion as to whether energy efficiency costs less, and in order to prove the fact without a shadow of a doubt, ACEEE collected data from reports by program administrators working with utilities to calculate the levelized cost of saved energy.

According to ACEE, “We find that energy efficiency programs are holding steady as the least-cost energy resource option that provides the best value for America’s energy dollar. At an average of 2.8 cents per kWh, electric utility energy efficiency programs are about one-half to one-third the cost of alternative new electricity resource options.”

A detailed report on how and why energy efficiency costs less can be found at the ACEEE site.

Scott Van Kerkhove is the CEO of EnergyWise and writes on issues surrounding energy management, energy efficiency and sustainability.

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