The amount of energy we use at any given time is constantly changing. Lights are switched on and off by time of day – other appliances, such as air conditioners, might operate based on the season. In order to meet our dynamic energy demands, our system has to have the infrastructure and resources in place to respond when needed.
What may not be clear to many of us is that the costs associated with supplying this electricity also change with time, and during certain hours of the day and year these costs can be much higher. This isn’t readily apparent because the electricity rates we pay throughout the year are essentially flat.
Many, including Environmental Defense Fund (EDF), have made the case for electricity pricing that helps signal these fluctuating costs to customers. There are a variety of ways to design pricing that varies with time, while communicating to individuals and businesses the value of cutting back on electricity, or shifting use to other times. These options can take the form of paying a different amount for energy at different times, or perhaps being compensated for reducing use at times when the electric system is most constrained. Read More
Source: designmilk flickr
New York is re-examining the way energy is regulated, priced, and distributed in the state in order to emerge with a 21st century business model. This change will deliver on a broad range of objectives, including increased customer value and environmental benefits, among others. However, achieving greater system efficiency could lead to the most impactful outcomes for customers, the environment, and society as a whole. Not only does increasing system efficiency have the potential to significantly reduce costs, energy use, and carbon emissions, it also makes the customer an integral part of the solution to meeting our future energy needs.
Electric utilities are tasked with meeting consumer demand for electricity at all times and, until now, have done so primarily by installing additional infrastructure on the electric grid whenever needed. While this has resulted in a fairly-reliable way to meet our energy needs, it has and continues to be extremely expensive and inefficient given the evolution in how energy is used today. Read More
What would you say if I told you that about three-quarters of what you spend on electricity every month is wasted? Considering that Americans spend about $350 billion on electricity annually, I hope you’ll find this as shocking as I do.
From generation to delivery to consumption, inefficiencies at every step of electricity's journey add up to a lot of waste. Fortunately, these same conditions present us with opportunities to substantially reduce inefficiencies and their associated economic, social, and environmental impacts.
Generation: Energy is wasted at the source
Today, the majority of the electricity produced in the United States originates from fossil fuels, including coal and natural gas. According to the United States Environmental Protection Agency, these plants are only about 33 percent efficient, and “two-thirds of the energy in the fuel is lost — vented as heat — at most power plants in the United States.” Read More