Appliance Design - July 2008 - (Page 6)

NEwS watch Efficiency Progress at Risk nergy efficiency may be the farthest-reaching, least-polluting, and fastest-growing energy success story of the last 50 years, but this success is also invisible, misunderstood, and in serious danger of missing out on needed future investments. That’s the assessment of the American Council for an Energy-Efficient Economy (ACEEE) after its attempt to quantify the overall impact of the hidden U.S. energy efficiency boom. The resulting report shows that U.S. energy consumption (as measured per dollar of economic output) will have been slashed by the end of 2008 to half of what it was in 1970, from 18,000 Btus to about 8,900 Btus. However, the ACEEE report, “The Size of the U.S. Energy Efficiency Market: Generating a More Complete Picture,” also warns that “our nation is not aware of the role that energy efficiency has played in satisfying our growing energy-service demands…the contributions of efficiency often go unrecognized. The contributions of energy efficiency often remain invisible.” The report also notes that although efficiency is a proven resource, it remains underdeveloped. “In short, the evidence suggests that efficiency can make an even larger contribution towards stabilizing energy prices and reducing greenhouse gas emissions – should we choose to fully develop it.” Key report findings include: 4Given the right choices and investments in the many cost-effective, but underutilized energy-efficiency technologies, the U.S. can cost-effectively reduce energy consumption by an additional 25 percent to 30 percent or more over the course of the next 20 to 25 years. 4Annual investments in energy efficiency technologies currently support 1.6 million U.S. jobs. The $300 billion invested in energy efficiency in 2004 was three times the amount invested E in traditional energy infrastructure. 4Investments in energy efficiency technologies are estimated to have generated approximately 1.7 quads of energy savings in 2004 alone – roughly the equivalent of the energy required to operate 40 mid-sized coal-fired or nuclear power plants. 4Since 1970, energy efficiency has met about three-fourths of the demand for new energy-related services while conventional energy supply has covered only one-fourth of this demand. 4Total investments in more energy efficiency technologies could increase the annual energy efficiency market by nearly $400 billion by 2030, resulting in an annual efficiency market of more than $700 billion – and total additional investments over the period 2008-2030 of nearly $7 trillion. ACEEE Director of Economic Analysis John A. Laitner, co-author of the new report, said that, while energy efficiency has made great strides, we need to pick up the pace. “The energy-related challenges of the 21st century require a dramatic shift in direction – from an emphasis on energy supply to an emphasis on energy efficiency.” Lloyd Jeff Dumas, Professor of Political Economy, Economics and Public Policy at The University of Texas at Dallas, and chair, Civil Society Institute Working Group on the Economy and Global Warming, echoed that sentiment: “In effect, energy efficiency is buying the time that America needs to develop new clean energy sources that will reduce the greenhouse gases linked to global warming. This study sends a powerful message that members of the public, elected officials, and corporations need to squeeze out even more of the potential of energy efficiency as part of a comprehensive energy strategy that looks to our future, rather than the past.” The report also found that the size of energy efficiency investments varies considerably across different sectors. In the buildings sector, for example, investments in energy efficiency totaled about $178 billion, or nearly 60 percent of total energy efficiency investments in 2004. Of these investments, nearly half (49 percent) were made in energy-efficient appliances and electronics, while 29 percent were made in energy-efficient commercial building structures, and 22 percent were made in energy-efficient residential building structures. The analysis also reveals that the pattern of energy efficiency investments does not mirror the patterns of energy use across sectors. While the buildings sector accounts for 39 percent of total U.S. energy consumption, it received 62 percent of total efficiency investments. Within the buildings sector, investments in appliances and electronics (48 percent) far exceeded the proportion of energy consumed by these devices (8 percent). In the industrial sector, the proportion of investments (25 percent) was lower than the proportion of energy use (34 percent). Notably, the transportation sector proved to be significantly unbalanced, representing only 11 percent of efficiency investments, but 28 percent of overall energy use. For more information on the report, visit http://aceee.org/pubs/e083.htm. < 6 applianceDESIGN July 2008 www.applianceDESIGN.com http://aceee.org/pubs/e083.htm http://www.appliancedesign.com

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Appliance Design - July 2008 Contents Editorial Shipments/Forecasts News Watch Heating Elements Gas Technology Motors & Pumps Controls & Sensors Design Marts Association Report: AHAM Advertiser's Index

Appliance Design - July 2008

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