U.S. Drop In Energy Use: It’s A Feature, Not a Bug!

Nationwide over the last few years, utilities have been expanded energy efficiency efforts that began in 2007, so that in four years, the savings have grown by 80 percent. Each year energy use has actually been cut. It saves money. At between 3 and 5 cents a kilowatt-hourit’s cheaper to save energy than make energy, even from coal.

According to the Institute for Electric Efficiency, the 2010 reduction alone cut 112 terawatt-hours (TWh) from U.S. energy use, a 3 percent cut in total U.S. electricity use of about 4,000 TWh a year. Every year it has been more, so 2011 will bring a bigger cut.

Ed Wisniewski, executive director of the Consortium for Energy Efficiency, says, “Over the four years since 2007, savings impacts have grown 80 percent, justifying the ramp-up of investment in efficiency that’s also occurred over this time period. This scale affords a unique opportunity to address the challenges ahead and reap the tremendous savings that are still available cost-effectively.”

us-energy-intensity-decrease

image via National Energy Policy Institute

Graphs of energy intensity like the one above, from National Energy Policy Institute’s Energy Forum Online for the U.S., now make a downward trajectory on energy use, whereas it used to keep rising year by year.

The graph of California’s electricity use provides a 40-year example. The state’s economy grew phenomenally from the 1970s till now, but its electricity use flatlined since the ’70s, the result of deliberate energy efficiency policy. Every other state’s growth in GDP was closely paralleled by its rise in energy use.

With climate an issue for policymakers  (at least state-level) since around 2005, other states are following California’s example. Policies were put in place to cut greenhouse gases, including cutting energy intensity. And these policies work.

Arch2030-building-energy-reductions

image via Architecture2030

Architecture2030 also published evidence of the impressive drop in energy use in buildings  (the orange line in the graph above) through better building codes in place since 2005, by way of urging us forward to yet more impressive gains for the future that will save Americans at least $3 trillion in energy bills till 2030, and $6 trillion with the further tightening of building codes they propose.

The EIA estimates of residential and commercial building energy use to 2030 have dropped dramatically since 2005by nearly 70 percent due to improved energy efficiency in buildings. Similar gains have been made in other areas in reducing energy use, as stories here attest every day.

Readers here are not surprised to read of houses that use no energy or this month’s Ceres rankings of utilities for efficiency.

We read of consumers who now demand discounts if they are energy efficient in states that have long charged you more if you use less energya truly perverse incentive (and an odd idea to someone from California which has had the opposite incentive in policy since the 1970s.)

But if you didn’t routinely ingest energy news on greentech sites like Earthtechling, the startling effect of these kinds of graphs of news of energy drops must look alarming, like a warning of danger.

To money guys, all graphs are supposed to go up – not down! But it’s not the evidence of catastrophe they think.

It’s a feature; not a bug.

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  • Sustainablestructures

    Energy efficient homes save electricty also, circulator pumps in boilersthe?!!! run less, furnaces fans runs less, air conditioners, all these things add up.

  • http://www.facebook.com/people/James-Sexton/1830996994 James Sexton

    The electric consumption  graph is a bit misleading….. and it’s pretty clear you’re not understanding what is going into our GDP…… here’s a newsflash, you can not decouple GDP from energy or fuel use.  Here’s another newsflash, cost justified efficiencies happen in spite of, not because of govt. intrusion.  Do you think Henry Ford’s assembly line occurred in order to be less efficient?  Do you think people insulate their homes because the govt. told them to?  Do you really believe the CAFE standards and all of the other initiatives you mentioned only manifested themselves in the last 2 years? 

    Lastly, “….. offer some of their big commercial customers a break on their
    utility bills if they allow the utility to cycle off their A/C, for
    example, for perhaps a minute every half hour during peak hours.”  …….  Gosh I hope you don’t work for a utility.  Do you understand how vapid that statement is?  A minute?  Electric motors peak demand comes when the motors are starting up!  Do you understand that businesses work to save expenses such as electric bills?

    This is the difficulty I have with smart grid people…… they’re just not very smart.  And the cost of the technology implemented will never be and can never be justified.

    • WilliamYancey

      “duurrr, business efficient and smart, government stupid and wasteful!”

      Yeah, keep flogging that dead horse.

    • http://twitter.com/SolarPower2011 DirectSolarWholesale

      you must uncouple energy from GDP for the simple Fact is Big corporations have installed and are now using Renewable energies, like Solar and Wind

  • frank96740

    MY question is:
    Why are we obeying all the “rules” yet our cost for using less energy are going up?
    All the “green” nuts are telling us to switch to renewable energy – which many of us have.
    Here in Hawaii we still must pay a “connect fee” when we are tied into the grid. Even if our usage ends up being zero (’0′). Many of us chose to NOT spend the cash to create too much electricity since we have to pay anyway and costs are still NOT reasonable for ‘going green’.
    We recently got a notification from our electric company telling us our rates were going to INCREASE because THEY aren’t making enought money “because so many people are going to renewable energy”. Our STATE government is on the band wagon and is spending $400,000 taxpayer money to “help us lower our consumption” which will LIKELY get us another rate increase down the road.
    Our GOVERNMENT – present administration incuded – is pushing us into a ‘catch-22′ where no matter what we try to do we are going to ‘get the shaft’ and be forced to smile about it.
    Too much fun!

    • http://muckrack.com/dotcommodity Susan Kraemer

      That is a terrible policy. I had no idea it was the rule in Hawaii – though many states in the South follow that rule.

      In California it is the opposite. We pay through the nose if we are profligate energy users, and get a great rate per kilowatt hour if we are misers!