Presentation to Delegation from China regarding energy efficiency in New England
This document discusses the benefits of energy efficiency. It argues that energy efficiency is a powerful resource that can be harnessed through both market and regulatory approaches. Regulation is needed to maintain fair energy markets, and regulators may sometimes need to take a planning role to allocate supply during shortages. The future will involve a mix of centralized and decentralized power production, with efficiency being a common way to reduce demand and peak loads. When markets and government programs work together, large impacts on energy use can be achieved through efficiency. Efficiency resources are renewable - like a "magic orange" that can be continually squeezed for more savings over time. Competition also drives greater efficiency gains.
Presentation to Delegation from China regarding energy efficiency in New England
- 1. Energy Efficiency: A Powerful Resource 2013 U.S.-CHINA LEGAL EXCHANGE U.S. DEPARTMENT OF COMMERCE P.R.C. MINISTRY OF COMMERCE Seth Kaplan Vice President for Policy and Climate Advocacy Conservation Law Foundation December 6, 2013 skaplan@clf.org (617) 850-1721 1
- 2. Markets vs. Planning: It is a spectrum, not either/or If two men are trading wood (energy) and one man is using his spear to change the deal then a third man (a regulator) needs to step in to maintain fair dealing. Regulation defines the market. The Ancient Caveman Energy Market And sometimes (in a shortage for example) then regulator may become planner and allocate the supply of wood (energy) 2
- 3. The Future: A mix of centralized & decentralized power: Efficiency is a common thread Edisons Pearl Street Station Photographic Services of the Consolidated Edison Company of New York, Inc. Demand can be managed to reduce peak, as well as by generating locally and by becoming more efficient Original Graphic courtesy of Alan Friefeld of Viridity Energy 3
- 4. ISO-NE the Operator of the New England Grid is first in the U.S. to Factor State Energy Efficiency Efforts into System Planning When you harness both markets and government mandated and planned programs you can have a very big impact 4
- 5. Dont Underestimate Size of the Resource: Efficiency is the Magic Orange, squeeze, put aside, come back later squeeze again Wasted energy 5
- 6. And Dont Underestimate the Power of Competition 6
- 7. Efficiency takes many forms and has many benefits . . . 7