ACEEE Report Finds U.S. Energy Consumption Cut in Half by One Major Measure Since 1970

June 6, 2008 // Published as a news service by IHS

However, the ACEEE report, The Size of the U.S. Energy Efficiency Market: Generating a More Complete Picture, concludes that "… our nation is not aware of the role that energy efficiency has played in satisfying our growing energy-service demands … the contributions of efficiency often go unrecognized. The contributions of energy efficiency often remain invisible ..."

The report also said that although efficiency is a proven resource, it remains underdeveloped.

"In short, the evidence suggests that efficiency can make an even larger contribution towards stabilizing energy prices and reducing greenhouse gas emissions - should we choose to fully develop it," according to the report.

Report findings include:

• Given the right choices and investments in energy efficiency technologies, the U.S. can cost-effectively reduce energy consumption by an additional 25-30% or more over the course of the next 20-25 years.
• Annual investments in energy efficiency technologies support 1.6 million U.S. jobs. The $300 billion invested in energy efficiency in 2004 was three times the amount invested in traditional energy infrastructure.
• Investments in energy efficiency technologies are estimated to generate approximately 1.7 quads of energy savings in 2004 alone - roughly the equivalent of the energy required to operate 40 mid-sized coal-fired or nuclear power plants.
• Since 1970, energy efficiency met about three-fourths of the demand for new energy-related services while conventional energy supply covered only one-fourth of this demand.
• Total investments in more energy efficiency technologies could increase the annual energy efficiency market by nearly $400 billion by 2030 resulting in an annual efficiency market of more than $700 billion - and total additional investments over the period 2008-2030 of nearly $7 trillion. Other Report Findings:
• Energy savings. The report notes: "Investments in energy efficiency technologies are estimated to have generated approximately 1.7 quads of energy savings in 2004 alone. In other words, had the nation maintained the same level of energy productivity as it had achieved in the year 2003, total primary energy use in 2004 would have reached 101.8 to 102.0 quads compared to the actual level of 100.3 quads documented in the databases maintained by the Energy Information Administration.

  "… By the end of 2008, these investments will have saved roughly 6.6 quads of energy on a cumulative basis or the equivalent of at least $77.4 billion (in 2004 dollars)."

• Energy efficiency by industry. The size of energy efficiency investments varies across U.S. sectors. In the buildings sector, investments in energy efficiency totaled about $178 billion or nearly 60% of total energy efficiency investments in 2004. Of these investments, nearly half (49%) were made in energy-efficient appliances and electronics while 29% were made in energy-efficient commercial building structures and 22% were made in energy-efficient residential building structures.

  In the industrial sector, investments reached roughly $75 billion in 2004 representing one quarter of total efficiency investments for the year. In the transportation sector, investments represented approximately 11% of total efficiency investments or $33 billion in 2004. This pattern of investments does not mirror the patterns of energy use across sectors. While the buildings sector accounts for 39% of total U.S. energy consumption, it received 62% of total efficiency investments.

  Within the buildings sector, investments in appliances and electronics (48%) exceeded the proportion of energy consumed by these devices (8%). In the industrial sector, the proportion of investments was lower than the proportion of energy use (25% and 34%, respectively). The transportation sector also proved to be unbalanced representing only 11% of efficiency investments but 28% of overall energy use.

• Jobs by industry. The largest share of related jobs is found in the buildings sector, which generated approximately two-thirds of all efficiency-related jobs (more than one million). Within the buildings category, investments in the appliance and electronics sector generated the most jobs (more than 380,000), followed by efficiency-related jobs in residential construction and renovation (348,000) and commercial construction and renovation (332,000).

  Other levels of employment are associated with investments in the industrial sector, which generated an estimated 416,000 jobs. Investments in energy efficiency in transport were lower generating an estimated 151,000 jobs in 2004.

Source: American Council for an Energy-Efficient Economy (ACEEE).