When utilities and other organizations talk about energy efficiency as a resource, they are describing efficiency as an energy resource that can yield energy and demand savings that can transfer electricity generation from nuclear power, coal, wind power, natural gas, and other supply-side resources. Putting money in energy efficiency and the outcome resource advantages are factored into utility energy resource decision-making regarding investing in operating existing systems and new resources.
Defining efficiency as a resource and keeping it in mind when deciding makes it important because of the apparent resource cost advantage of energy efficiency. Through energy efficiency programs, customers will get greater energy savings, it can also lessen the need to install, replace, or upgrade transmission and distribution tools.
American Council for an Energy-Efficient Economy (ACEEE) encourages people to use energy efficiency as a resource when deciding in utility and regulatory. The organization has been doing some research on how utilities and regulators incorporate efficiency into their activities.
Efficiency can likewise improve system reliability and enable utilities to lower or manage the need for their systems – in some instances offsetting the need to add new peak generation capacity.
Lowering fossil fuel utilization has several additional advantages that include a decrease in the environmental effects and lessens air pollution associated with the production of fossil fuel and use. These benefits can be considered by decision makers when deciding on utility system resource.
Multiple Benefits of Energy Efficiency as a Resource
As energy efficiency continues to gain popularity as an important resource for the economic and social development of all economies, knowing its real value is important.
The multiple benefits approach to energy efficiency policy aims to expand the viewpoint of energy efficiency beyond the conventional measures of reduced energy demand and decrease greenhouse gas emissions by knowing its effects on different spheres.
The term “multiple benefits” objective is to focus on the truth that is most of the time overlooked: putting money in energy efficiency can provide lots of benefits to different investors. Whether by reducing energy demand and its costs or facilitating the achievement of other goals, the present study acknowledges the great potential of energy efficiency.
The multiple benefits of energy efficiency as a resource are important for both IEA member and non-member countries. The 5 areas that greatly benefited from energy efficiency are as follows:
• Macroeconomic development
• Industrial productivity
• Energy delivery
• Public budgets
• Health and well-being
Evaluating Energy Efficiency Programs
Low-cost energy efficiency programs have been ongoing successfully in some nations since the late 1980s and have proven great energy savings. These programs have succeeded in various contexts like in regulated and unregulated markets, investor-owned, gas and electric utilities and cooperative utilities.
Knowing the results, benefits, and lessons learned from an energy efficiency program is one way of understanding it. The result can be used in improving and enhancing future programs and identifying the importance and potential of a portfolio of energy efficiency programs in a unified resource planning process. The evaluation process will help determine the performance of administrators and contractors responsible for implementing efficiency programs. The process is also conducted to estimate energy savings attributable to a program in a way that is justifiable in utility regulatory proceedings.