by the Southeast Energy Efficiency Alliance
January 2009
Implementation of an ambitious package of energy-efficiency policies throughout the Appalachian Region has substantial potential for energy-efficiency savings and job creation in the coming years. With no policy intervention, the Region’s energy consumption is expected to increase 28 percent between 2006 and 2030, compared with a 19 percent increase forecast for the United States as a whole. Research indicates that strong policy interventions will be needed to promote energy-efficient purchases and practices that could help the Region meet its future energy needs while ensuring its continued economic and environmental health.
This study, conducted by the Southeast Energy Efficiency Alliance, assesses the long-term energy-efficiency gains that could be achieved by implementing energy-efficiency policies throughout Appalachia. It examines the breadth of energy-efficiency resources in Appalachia; the timeframe for harnessing these resources; and the policies and programs that could most effectively translate these resources into energy savings; as well as the impact those policies and programs could have on jobs and wages in Appalachia. The engineering-economic modeling conducted in the study concludes that such policies could result in significant energy savings and positively impact the larger Appalachian economy, even in the early years, but especially in the later years of the analysis as the energy savings continue to mount.
Key findings from the study include the following:
- A bold energy-efficiency initiative could cut consumption up to 11 percent by 2020 and 24 percent by 2030.
- Energy-efficiency investments could result in an increase of 77,378 net jobs by 2030.
- Energy-efficiency investments could result in annual net energy-bill savings of $21.4 billion by 2030.
Individual energy-efficiency policies that could substantially “move the market”:
- Incentives for efficient commercial HVAC and lighting retrofit. Retrofitting commercial buildings with more efficient heating, ventilation, and air conditioning systems, as well as more efficient lighting, could reduce commercial energy consumption by almost 20 percent by 2030.
- Support for commissioning of existing commercial buildings. Building commissioning is the systematic process of ensuring that operational needs are met, that building systems perform efficiently, and that building operators are properly trained. This policy change could reduce commercial energy consumption by an additional 17 percent by 2030.
- Expanded industrial assessment centers policy targeting small- to medium-sized industrial sites. If all eligible sites received an energy assessment and adopted 80 percent of the cost-effective recommendations by 2030, industrial energy consumption could be reduced by 17 percent.
- Clean car standards accelerating the fuel economy improvements of passenger cars, trucks, and SUVs. If policies are put in place that raise the fuel economy of cars, trucks, and SUVs to 50 mpg, the transportation energy use forecast for 2030 could be reduced by 13 percent.
- Retrofit incentives for existing homes in combination with resale energy labeling. Providing incentives for retrofitting existing homes to be more energy efficient, along with resale energy labeling, could cut residential energy consumption by seven percent by 2030.
Policy action aimed at exploiting the energy-efficiency potential described in this report could set Appalachia on a course toward a sustainable and prosperous energy future. The Region’s energy-efficiency resources could go a long way toward meeting its future energy needs while ensuring its continued economic and environmental health. By capitalizing on the Region’s substantial energy-efficiency resources, Appalachia can cut the energy bills of its households, businesses, and industries; create “green” jobs; and grow its economy.
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