Energy efficiency is quickly being adopted as another way to “generate” electricity, along with coal, nuclear, natural gas and renewables.

Not since the energy crises of the 1970s and early 1980s have efficiency and conservation received so much attention. In today’s technology-driven world, everything relies on electricity—computers, plasma TVs, DVR systems, cell phone chargers, laptops and video games. Consumers’ demand for electricity continues to increase while the supply becomes more and more strained.

According to a February article in The Washington Post, utility and government officials warn that the metropolitan area surrounding our nation’s capital must come to grips with a simple fact: “In a little more than three years, lights could flicker off in rolling blackouts.” For its part, the Maryland Public Service Commission found that the Free State might face such outages as early as 2011 or 2012.

And it’s not just large cities dealing with power supply concerns. It’s a nationwide challenge that includes California, the Rocky Mountain states, New England, Texas, the Southwest, and Midwest.

Although not predicting anything as dire as in Maryland, the 21st Century Energy Plan, released by the Michigan Public Service Commission in 2006, called for quick action in developing new generation in the state to avoid shortages by 2015.

The Electric Power Research Institute, (EPRI), a nonprofit, utility-sponsored organization whose members include electric cooperatives, sees energy efficiency as the most cost-effective, near-term option for managing electricity use, reducing the need for new power plants and lowering emissions of greenhouse gases, like carbon dioxide, blamed for contributing to climate change.

Electric cooperatives are recognized industry leaders in promoting energy efficiency to help consumer-members reduce electricity consumption and save money. Virtually all electric co-ops provide energy efficiency education to their members, while more than 40 percent offer services such as high-efficiency lighting systems, geothermal and air-source heat pumps, energy audits, insulation, and ENERGY STAR® appliances.

In addition, electric co-ops are tops in reducing power consumption—and keeping the lid on wholesale generation costs—by controlling when electricity gets used. Spearheading this effort are programs known by various names—load management, demand-side response, or peak load shifting/shaving—that interrupt electric service to water heaters, air conditioners, furnaces, and other specialized equipment in the homes of volunteer co-op consumer-members for brief periods, typically just a few hours. The control generally takes place during times of peak demand—the electric utility industry’s equivalent of rush-hour traffic—when power costs skyrocket.

“Roughly 37 percent of all co-op systems can direct-control appliances, chiefly water heaters and air conditioners, while another 40 percent offer contract incentives for large commercial and industrial consumers to turn off energy-intensive appliances or equipment,” comments Ed Torrero, executive director of the Cooperative Research Network, part of the National Rural Electric Cooperative Association (NRECA) based in Arlington, VA. “Load management essentially works like a ‘power plant in reverse.’ In fact, local electric co-ops working with their wholesale power suppliers shaved demand last year by 2,200 megawatts [comparable to a commercial nuclear power plant].

Co-ops are also taking advantage of recent technology advancements to increase system efficiency: 72 percent are upgrading power lines, 56 percent are replacing older transformers, 50 percent use advanced technology to control voltage fluctuations, and 40 percent have deployed advanced metering devices.

But the biggest bang from energy efficiency involves easing pressure on constructing new power plants. Based on EPRI’s framework for reducing carbon dioxide emissions, the overall impact of energy efficiency measures—even simple ones like replacing incandescent light bulbs with compact fluorescent lights— directly reduces the amount of power needed and defers the need to build as much new generation.

Resource modeling in the 21st Century Energy Plan indicates that even a conservative energy efficiency program could, after 10 years, reduce Michigan electric peak demand by 660 megawatts, resulting in long-term cost savings for customers. Moreover, use of energy efficiency reduces use of fossil fuels and their attendant emissions, and can reduce exposure to unpredictable fuel prices and potential future air emissions restrictions.

“Energy efficiency measures can help electric co-ops head off the need for new generation and curb greenhouse gas emissions,” observes John Holt, NRECA senior principal for generation and fuel.

Since the early 1970s, U.S. energy consumption has climbed more than 30 percent, but thanks to efficiency measures taken and technological advancements made during that period, the nation now uses half as much energy per dollar of economic activity.

“To run today’s economy without the energy efficiency improvements that have taken place since 1973, we would need 43 percent more energy supplies than we currently use—more energy than we currently generate from any single fuel source like nuclear, gas, coal, or renewables,” explains Jim Kerr, president of the National Association of Regulatory Utility Commissioners and a member of the North Carolina Utilities Commission.

“Energy efficiency remains key to how electric co-ops will keep electricity affordable in the face of rising energy prices,” concludes NRECA CEO Glenn English. “Whether it’s fostering the construction of more energy-efficient buildings, promoting the development and use of more energy-efficient appliances, or accelerating the development and use of advanced electric infrastructure, co-ops will put their energy and business knowledge to work in developing innovative member programs that help get the most out of every kilowatt.”

Save Energy With Smart Appliances—Scott Gates
When electricity began reaching rural America in the late 1930s, families—especially hard-working homemakers—were delighted by the conveniences that came with it. No longer did they need a stove top to heat an iron; washboards could be packed up forever in an attic.

While electric appliances have evolved with time, for the most part they remain silent, dutiful grunts that simply get a job done. But technology may soon change their role, creating a new generation of “smart” appliances—ones that can monitor electricity use beyond your home and respond accordingly.

What do such “smarts” mean for otherwise commonplace appliances? Say a family returns home at the end of the school/workday and turns on the lights, cranks up the thermostat, and throws a load of clothes in the dryer.

A standard clothes dryer would follow orders and continue using electricity to tumble clothes dry until it was purposely turned off or a timer told it to stop. A smart clothes dryer, though, would notice the “peak demand” caused by an entire community of families arriving home—the electric utility industry’s equivalent of rush-hour traffic.

During periods of peak demand, more power plants must be brought into service and electric prices rise. The smart clothes dryer, having noticed this increase in cost, could continue tumbling clothes but momentarily shut down its heating element, eliminating a draw of more than 5,000 watts from the grid while saving the family money.

The Pacific Northwest National Laboratory, a federally funded lab in Richland, WA, put smart appliances to work last year to judge their potential. They tested two systems: One used an internet-based program that monitored fluctuations in energy prices and operated appliances only when power prices were low; the other relied on small appliance-based circuit boards that cut power use during peak demand.

The tests showed a big payoff from smart appliances. Consumers saved roughly 10 percent on electricity bills using the internet-based system. Widespread adoption of demand-monitoring, smart circuit boards could free up to 20 percent of the nation’s power use at any given time. That would defer the need to build new generation and help curb greenhouse gas emissions, like carbon dioxide, blamed for contributing to climate change.

Circuit boards may be added to new high-efficiency appliances as soon as next year. “Chances are, dryers will be the first products that we offer them on,” says Whirlpool Corporation Project Manager Gale Horst, who contributed to the Lab’s research.

More advances may follow, although appliance manufacturers like Whirlpool are currently keeping them under wraps. Horst hints that once appliances are able to communicate with utilities, “it really opens up our creative thinking.”

Jennifer Taylor and Scott Gates write on consumer and cooperative affairs for the National Rural Electric Cooperative Association, the Arlington, VA-based service arm of the nation’s 900-plus consumer-owned, nonprofit electric cooperatives.