Last week the Virginia Commission on Energy and the Environment held a day long meeting to hear testimony on the future role of electricity in the commonwealth.
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The most interesting presentation of the day, however, was made by a non-profit group called the American Council for an Energy Efficient Economy (ACEEE). This group believes that making the most efficient use of the electricity we already generate is the best and cheapest way to gain more electricity. While converting over to more efficient electricity consuming devices (such as compact fluorescent bulbs) is not free, the Council cites studies that replacing end user equipment, adding insulation, etc. can cost anywhere from one half to one quarter the cost of installing and fueling new electricity generating capacity. This includes wind generated electricity which gets its energy for free.
It turns out that ACEEE recently completed a detailed 170 page study of electricity consumption in Virginia and concluded that with a maximum effort, the commonwealth could save as much as 31 percent of its current electric consumption while still doing all the things we do today. They also cite policy achievable savings of 19 percent, or possibly 27 percent with more aggressive policies, which are deemed a more realistic goal rather than an all out efficiency effort. Either of these numbers amounts to some serious savings which when combined with conservation measures such as turning off power suggests that there are ways to survive and prosper while using considerably less electricity than we use today.
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Although oil, coal and natural gas prices are currently in a slump due to a multiplicity of factors, over the long run they have no place to go but up and up. The limitations on carbon emissions could send electricity prices to unheard-of levels. In this environment, conservation and efficiency become the only viable option, for, in coming decades dwindling supplies of liquid fuels and eventually natural gas are going to leave us with electricity as the only viable way of powering our civilization.
The ACEEE recommends to Virginia policymakers a suite of 11 policy recommendations that the council feels the state has the power to implement and which combined will result in energy savings of 20 percent or better and savings of roughly $2 billion for electricity consumers over the next 14 years. There are, however, numerous cultural and regulatory barriers to increased efficiency. For example, why should the landlord pay for more efficient lighting and air conditioning when the tenant pays the electric bills directly?
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Most of the policy recommendations to achieve higher efficiency are simply adjustments and tightening to existing laws, codes, policies, and rate structures. For example leaving office and other lighting on all night when no one is there is a prime example of egregious waste of dwindling resources. Redrawn regulations, rate structures and building codes can do much to reduce or eliminate such waste.