Art of the Possible

Utilities Transforming Energy Efficiency Industry

Traditionally perceived as opposed to energy efficiency due to the prospect of reduced revenues from reduced power generation, utilities are quickly moving into the driver’s seat as large-scale energy efficiency enablers. Encouraged or mandated by legislation, constrained by politics and public-opinion, and fueled by technology advances, utilities are uniquely positioned to accelerate investments in and deployments of energy efficiency solutions. 

Utility energy efficiency program budgets are currently approximately $4 billion in the U.S., and are growing at 20-30% annually. Over 75% of these budget dollars are concentrated in 10 states, with many other states quickly emerging as significant market participants. Newer

Power Lines

efforts such as Smart Grid technology and Demand Response curtailment reside where the utility infrastructure meets the residential and commercial customers’ facilities and operations, making utilities a key market maker and beneficiary of technology advancements. 

Energy Efficiency and Resource Standards (EERS) and Renewable Portfolio Standards (RPS) are encouraging and mandating utilities to invest in and meet requirements in energy efficiency and renewable energy. The court of public opinion and sky-rocketing construction costs create strong disincentives for utilities to pursue new power plants, furthering the business case for energy efficiency and Renewable Energy investments to meet increasing customer power needs with existing and constrained capacity assets. 

Watch closely as the utility sector continues to evolve and emerge as a major power center in energy efficiency!

James Breitenfeld
Marketing Manager, Energy Solutions
Johnson Controls, Inc.

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KEYWORDS

Utilities, Smart Grid, Demand Response, EERS (Energy Efficiency and Resource Standards), RPS (Renewable Portfolio Standards), States with Renewable Portfolio Standards

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