Efficiency, New Generation Capacity Needed To Meet Electricity Demand, Analysis Finds

April 21, 2008

Energy efficiency improvements in the U.S. electric power sector could reduce the need for new electric generation by an additional 7 to 11 percent more than currently pojected over the next two decades, if key barriers can be addressed, according to a preliminary analysis of potential energy savings released today.

The draft findings were presented by the Electric Power Research Institute (EPRI) and the Edison Electric Institute (EEI) during an Edison Foundation conference, Keeping the Lights On: Our National Challenge, examining ways to meet the growing demand for electricity, which will surge 30 percent by 2030, according to the U.S. Energy Information Administration.

Diane Munns, executive director at EEI, said the power sector will seek the greatest efficiency gains possible, but cautioned that this will be no easy task and that utilities still must plan for substantial new generation and transmissio to assure reliability.

"Achieving efficiency improvements going significantly beyond those already in the pipeline will be a major undertaking," Munns said. "No matter how you slice it, we’ll have to build significant new generation to ensure that we meet demand. The greater gains we make in energy efficiency, the better off everyone will be, because we’ll have more cost-effective options for serving our customers," she said. "But if we overestimate what can be accomplished, we could find ourselves without an adequate supply of electricity to meet consumer needs."

• Read the EEI/EPRI news release.
• Visit the Edison Foundation Web site.

© 2008 Edison Electric Institute