Low-Hanging Fruit May Be Gone, But There Is Still Hanging Fruit
Notice to Readers:
This website provides a summary of an EPRI report completed in 2019 based on data available through 2018. This U.S. Energy Efficiency Potential Study report is the 3rd in the series since 2009 and is updated every 3-4 years and/or when significant changes occur in the market. EPRI plans to update this report again in 2022 if there is continued interest from utility members. Please reach out to the Technical Contacts provided on this site if you would like to have an update in 2022 or if you have any questions or feedback about this site. Thank you for reading!
Abstract
This report summarizes EPRI’s analysis of electricity savings achievable in the U.S. between 2017 and 2040 through programs that encourage the adoption of energy-efficient technologies. The study aims to provide a technically sound estimate of the potential for electricity savings – taking into consideration technical, economic and market constraints – to inform electric utilities, policymakers, regulators, and other stakeholder groups in their decision-making.
This study updates EPRI’s 2014 study, U.S. Energy Efficiency Potential Through 2035 (1025477), with new assessments of government regulations, avoided costs, and technology options. In addition, the analysis expands to: 1) include distribution costs in the avoided costs calculation, 2) examine state-level rather than regional efficiency potentials, and 3) assess the sensitivity of achievable efficiency potential to higher avoided costs.
The study finds that utility efficiency programs can realistically reduce electricity use by over 365 billion kWh by 2040, reducing the annual growth rate in electricity consumption projected by the Energy Information Administration in its Annual Energy Outlook 2018 by 28%. For complete results, see EPRI Technical Report 3002010564.
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.