Electricity plays a critical role in supporting the modern economy and standard of living in the industrialized world, providing comfort, convenience, health, safety, security and productivity through end-use applications such lighting, cooking, heating, air conditioning, refrigeration, and communications. Understanding growth in electricity demand is key for electric service providers at all levels as they plan resources to meet customers’ future needs while maintaining reliable operation of the power system. The challenge to provide safe, reliable, affordable, and environmentally responsible electricity encourages providers to understand all resources available to continue to satisfy demand. Utilities and policymakers continue to seek energy efficiency as a cost-effective resource to enable reliable and affordable electric service that meets environmental goals.
With the strong reliance of the modern economy on digital information and communications technology, including personal computers, telecommunications equipment, and the data centers that support the internet, efficient use of electricity is a key component to economic productivity. Moreover, with continued technology innovation, electricity plays an increasingly vital role in virtually all aspects of modern society.
In 2009 EPRI commissioned a study to assess the potential energy savings available through energy efficiency and demand response programs in the U.S. from 2010 through 20301 . EPRI updated this study in 2014 to consider savings from 2015 through 2035, with several enhancements to its modeling and treatment of end uses2 . This report provides a summary of the latest revision of the study, which considers savings through 2040 and makes several enhancements to the model, including updates to model structure, as well as updated avoided costs to utilities and impacts of measure adoption.
In 2009 EPRI commissioned a study to assess the potential energy savings available through energy efficiency and demand response programs in the U.S. from 2010 through 2030[1]. EPRI updated this study in 2014 to consider savings from 2015 through 2035, with several minor enhancements to its modeling and treatment of end uses[2]. This report provides a summary of the latest revision of the study, which considers savings through 2040 and makes several enhancements to the model, including updates to model structure, as well as updated avoided costs to utilities and impacts of measure adoption.
A key objective of the study is to inform utilities, electric system operators and planners, policymakers, and other industry stakeholders in the electricity sector in their efforts to develop actionable savings estimates for end-use energy efficiency programs. The bulk of this effort is focused on the identification of cost-effective measures for energy efficiency and the impacts of application of these measures through 2040.
EPRI considers a broad range of energy efficiency; this study focuses on efficiency programs that reduce electricity usage (i.e. replacing electric with more efficient electric), while companion research at EPRI considers a broader definition of energy efficiency that includes efficient electrification – reductions in overall energy use (primary energy) made possible by increases in electricity use. In particular, the U.S. National Electrification Assessment (3002013582) highlights opportunities and challenges for electrification, and A Framework for Evaluating the Cost-Effectiveness of Efficient Electrification (3002015399) explores the adaptation of standard regulatory cost-effectiveness tests for electrification.
1 Assessment of Achievable Potential from Energy Efficiency and Demand Response Programs in the U.S.: (2010-2030). EPRI, Palo Alto, CA: 2009. 1016987
2 U.S. Energy Efficiency Potential Through 2035. EPRI, Palo Alto, CA: 2014. 1025477.