Energy Efficiency Becomes First Fuel

Abstract

Energy efficiency can be defined as an energy resource because energy efficiency is capable of yielding energy and demand savings that can displace electricity generation from primary energy resources. Investments in energy efficiency and the resulting resource benefits are factored directly into utility energy resource decision making about investing in new resources and operating existing systems. Defining energy efficiency as a resource and integrating it into utility decision making is especially critical because of the clear resource cost advantage of energy efficiency. Energy savings from customer energy efficiency programs are typically achieved at one-third of the cost of new generation resources. Efficiency programs can also reduce the need to install, upgrade, or replace transmission and distribution equipment. In addition, energy efficiency when integrated with smart grid technologies can improve system reliability and allow utilities to reduce and manage peak demand in their power systems. Finally, energy efficiency will reduce fossil fuel consumption and increase energy security; it is indeed considered the first fuel now by many countries.