What is Energy Waste Reduction & Why Do We Need It?
What’s the problem?
Ohio’s utility costs continue to rise. Every year we send millions out of state to pay for our energy. It’s a drain on our economy and pocketbooks, and it means fewer jobs in Ohio. Meanwhile, power generation consumes precious resources like water and dirties our air. This air pollution sickens Ohioans and ups our health care costs by, for example, increasing asthma attacks and hospital visits. Unfortunately, all of these expenses are expected to grow unless we rein them in.
What can we do?
The least expensive solution is to eliminate energy waste. Just as car owners can save on gas when they properly maintain their vehicles, homeowners can save on electricity with simple fixes like patching leaks in their walls, changing their air filters, and buying energy efficient appliances. Such actions can reduce our utility bills immediately while making our homes more comfortable by eliminating things like drafts.
How does EWR control costs?
Energy waster reduction (EWR) controls costs in two key ways: First, the least expensive energy is the energy we never have to generate. EWR typically costs between 2-4 cents per unit of electricity saved, while the cost of generating electricity from other sources is many times more (see graph). Second, reducing energy waste saves us money in the long run because it means we don’t have to pay for the construction of unnecessary and costly new infrastructure.
How does that work?
When more customers use more energy, we eventually need to build new infrastructure like new power plants and transmission lines to meet growing needs. Utility customers pay for the cost of this infrastructure, and new power plants and transmission lines are expensive. Through EWR, we reduce the energy use of the overall system, pushing off the need to construct and pay for costly infrastructure. In this way, EWR lowers future bills and buys time. For example, instead of having to build and pay for a new power plant two years from now, increased EWR can postpone the need for the power plant by 10 or 15 years. That additional time allows for new technologies to develop and prices of emerging technologies to become more cost competitive. In the end, Ohio will only have more and better energy options to consider.
Are there other benefits of EWR?
Yes. EWR is a boon for the economy: It helps businesses gain a competitive edge (thanks to new found savings) and creates local jobs that cannot be outsourced. In addition, when Ohioans save on energy bills, they redirect those savings to the local economy – strengthening the local restaurants, stores, and businesses. It also helps the environment by reducing air pollution and water consumption and helps make our centralized power system less vulnerable to unexpected events like severe winter storms.
What’s stopping us?
Most people lack the time, money or expertise to cut energy waste themselves, especially for those improvements that generate the biggest savings like installing insulation in our attics or having our air conditioners serviced. The other big barrier is that Ohio legislators passed House Bill 6 in 2019, leading to the elimination of key programs that helped businesses and residents conserve.
Can we do something to change this?
Yes. Ohio can immediately invest in energy waste reduction initiatives by implementing energy-saving programs that help Ohio residents and businesses upgrade their buildings, improve manufacturing production lines, install new sensors and controls, and otherwise cut energy waste.