Energy Efficiency as the First Resource: Opportunities, Challenges, and Beating the Next Bust

Panel: Energy and Environmental Policy: Planning for Greater Impacts

Authors:
Michael Rufo, Itron Inc.
Michael Ting, Itron Inc.
Michael Messenger, Itron Inc.
Michael Wheeler, California Public Utilities Commission

Abstract

For a number of reasons, principally the growing need for cost-effective greenhouse gas reduction strategies, energy efficiency goals and spending levels have been rising steadily over the past few years. In this paper, we discuss the opportunities and challenges posed by the increasing reliance on energy efficiency as a preferred resource to help offset higher carbon resources. We then present a set of factors and metrics that we recommend be considered when developing firm energy efficiency savings goals. Finally, we suggest that it will be critical that energy efficiency programs and policies achieve high rates of success in meeting this new generation of goals in order to reduce the likelihood for a subsequent bust cycle, as has occurred following previous investment booms. Doing so, we submit, may mean moderating efficiency goal levels somewhat in the short term in order to ensure high-quality attainment and, consequently, more sustainable funding and greater yields over the long term.