The American Council for an Energy-Efficient Economy (ACEEE) issued a report analysing the impact of the first phase of an energy efficiency project deployed in Maryland.The energy efficiency project is onging having being deployed initially in 2008, following the passing of the EmPower Maryland Energy Efficiency Act.
Under the Energy Efficiency Act, Maryland was able to set energy reduction goals of 10% between 2008 and 2015 for the state's five largest energy distribution companies.
The Act also required utilities to reduce per capita electric demand by 15% between 2008 and 2015.
According to ACEEE, the report 'Maryland Benefits-Examining the Results of EmPower Maryland through 2015' aims to highlight the cost and benefits of the project to help other US states in planning and deploying energy efficiency programmes.
The paper aims to help Maryland to understand the benefits incurred following the completion of the project's first phase.
Energy efficiency benefits
According to the findings of ACEEE, Maryland's 2008-2015 energy efficiency programme helped participating utility firms to reduce their operating and system cost, consumer energy bills and carbon emissions.
The programme increased net jobs in Maryland and boosted the country’s Gross Domestic Product.
The benefits identified by ACEEE include:
- Total lifetime energy savings of over 51 million MWh, equivalent to the electricity used by 850,000 residential customers in five years
- Savings at a levelized cost of 3.4 cents per kWh
- Total demand savings of more than 2,000 MW in 2015, equivalent to the output of four large power plants
- Energy efficiency benefits of $2.4 billion at a cost of $1.3 billion, a cost–benefit ratio of 1.81
- More than $4 billion in total customer bill savings over the life of the measures
- Installation of more than 26 million energy efficiency measures
- Avoided emissions of nearly 19 million metric tonnes of carbon dioxide, more than 34 million pounds of nitrogen oxides, and nearly 78 million pounds of sulphur dioxide over the lifetime of the programmes
- Nearly $392 million in wholesale market revenues from participation in regional generating capacity auctions, which reduce the ratepayer costs of the programmes
- A 9.5 million therm reduction in natural gas consumption, equivalent to the annual usage of 11,600 residential customers
- More than 2,000 new jobs and an $80 million increase in state GDP in 2011
The Maryland Public Service Commission in 2015 filed a report highlighting that in deploying the energy efficiency programme, Maryland utilities achieved 99% of the per capita consumption goal and 100% of the per capita demand reduction goal. [ACEEE discusses utility energy efficiency models for SMEs].
Image credit: www.pepco.com