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An effective way to reduce electricity loads is to improve electrical equipment and systems to get the same output while using less energy input. This concept is known as energy efficiency.
How It Works
Energy efficiency includes a broad spectrum of measures and applications. Some can be simple and fairly inexpensive, such as caulking and weather stripping windows in a home. Others can be more complicated and more expensive, such as installing LED (light emitting diode) traffic signals throughout an entire community.
When states, local communities, utilities, businesses, and consumers join efforts to apply energy efficiency measures, significant load reductions can be achieved. In 1998, energy efficiency programs nationwide reduced peak electricity demand by more than 10,000 MW.
Advantages
Concerted efforts to reduce electricity loads through energy efficiency can result not only in energy savings for ratepayers but also lower electricity rates. With significant load reductions, utilities don't need to construct as many new power plants and transmission lines to keep up with growing demand. Therefore, rates remain lower. For example, from 1980 to 1999, energy efficiency programs in California saved 28 billion kWh, avoiding the addition of 4,400 MW of power plant capacity. Financial benefits exceeded costs by $2.7 billion.
Also, the reliability of electricity increases when demand is lessened. Major outages don't occur as often. And utilities aren't forced to implement rolling blackouts. Reliable electricity also protects the U.S. economy. It is estimated that outages and other significant power fluctuations cost U.S. businesses nearly $50 billion annually in lost production.
Another advantage is that reduced electricity demand lessens environmental impacts. According to the Rand Report, energy efficiency programs in California have decreased air pollution emissions from stationary sources by 40%.
Disadvantages
There really is only one disadvantage to using energy efficiency measures to reduce electricity loads: higher up-front costs. For example, subcompact fluorescent light bulbs — which use one-fourth the energy of incandescent ones and last ten times longer — are more expensive.
Cost can also affect participation in energy efficiency programs. States and local communities have to obtain funding to promote and apply energy efficiency measures. Some businesses may not be able to apply the necessary measures without some type of financial assistance. And many homeowners can't afford some of the higher priced, energy-efficient building materials — windows, lighting, and insulation — and appliances even though the payback in energy savings can be quite significant.
The energy efficiency measures used by one business, while significant, won't impact electricity loads as much as a concerted effort. For example, the Waldorf-Astoria Hotel in New York replaced all of its lighting with energy-efficient lighting (compact fluorescent bulbs, T8 lamps, and electronic ballasts), reducing electricity loads by 1.2 million kWh annually. Meanwhile, the American Council for an Energy-Efficient Economy estimates that a national effort to improve air conditioning and lighting systems in homes and businesses could result in annual energy savings of 100,000 MW by 2010 (about 60% of the projected growth in summer peak electrical demand).
Read about applications of energy efficiency.
DOE's Office of Energy Efficiency and Renewable Energy provides an introduction to energy efficiency as well as organized lists of documents relating to energy efficiency in buildings and industry.
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