While smart meters and smart grids have been much more popular news items of late, the benefits realised from installing these technologies have barely begun in the United States.  According to a new report from the United States Electricity Advisory Committee (EAC) for the U.S. Department of Energy (DOE), current savings from demand response programs represent a small fraction of possible savings in the future.

In the report, information compiled by the American Council for an Energy-Efficient Economy (ACEEE) from 21 different studies of projects varying in size found that the median amount of energy saved would be 18 percent over 13 years.  This works out to Americans saving 1.5 percent more energy each year, which has been demonstrated at utilities deploying aggressive energy conservation programs.

Reduction of peak load can range between 7 and 22 percent according to other ACEEE studies.  Depending on the geographical area, savings can be significantly higher.  For example, in the southern states summers are typically hotter so there is much more potential for consumers who are enrolled in demand response programs to cycle down their air conditioning on the hottest days.

According to the report, in order to achieve the maximum possible energy savings in America national policy is needed that outlines a sustainable and economically feasible strategy that includes energy efficiency and demand response programs.  National policy could guide energy conservation efforts to reduce the environmental impact of the power grid as a whole while maximising cost savings for consumers at the same time.  National policy must be coordinated with existing smart meter initiatives in the United States.  As a result of these efforts, America will have a much more secure and reliable power grid – a “smart grid.”

“Upgrading the nation’s electric transmission grid is critical to ensure a reliable electricity supply, provide greater access to economically priced power, and support the growth of renewable energy generation,” reads the report.

The DOE has already recommended the expansion of existing energy-efficiency programs such as updating building codes and appliance standards.  The DOE is also encouraging new energy-conserving technologies to be developed for future use through various R&D initiatives.

The report also states that action must be taken quickly before demand regularly exceeds supply.  “Failure to address these basic infrastructure issues soon will make it more difficult to resolve the problems with the nation’s electric system. The EAC therefore urges DOE and the new Administration to act swiftly”

Standards still need to be developed that establish specific protocols for measuring monetary savings generated from efficiency efforts.  The DOE can also assist in developing state and federal policies that encourage cost-effective energy efficiency programs as well as technical assistance to utilities.  Regulators throughout the country will need to work together to ensure regulations encourage energy conservation efforts rather than inhibit them.

United States Department of Energy
1000 Independence Ave., SW
Washington, DC 20585
http://www.energy.gov

American Council for an Energy-Efficient Economy
529 14th Street N.W., Suite 600
Washington, D.C. 20045-1000
http://www.aceee.org
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