Is energy efficiency an effective deficit offset?

A new report from McKinsey & Co. concludes that elevating energy efficiency to a national priority could save American consumers $1.2 trillion by 2020—about the same amount as the projected 2009 Federal deficit (calculated on data from Congressional Budget Office, Annual Budget and Economic Outlook, 1/7/09.

09/01/2009


A new report from McKinsey & Co. concludes that elevating energy efficiency to a national priority could save American consumers $1.2 trillion by 2020—about the same amount as the projected 2009 Federal deficit (calculated on data from Congressional Budget Office, Annual Budget and Economic Outlook, 1/7/09. Note: $1.2 trillion is gross savings and does not take into account related investments in energy efficiency ).

According to the management consulting firm, this amount of savings is well beyond the $520 billion upfront investment (not including program costs) that would be required. The reduction in energy use would also result in the abatement of 1.1 gigatons of greenhouse gas emissions annually-the equivalent of taking the entire U.S. fleet of passenger vehicles and light trucks off the roads.

In issuing its report, McKinsey & Co. state that energy efficiency is the "single most promising resource" in pursuing energy affordability and security. In addition to the tremendous savings to consumers and businesses, the report finds that elevating energy efficiency to a national priority could also create 600,000–900,000 sustainable green jobs and reduce our overall energy consumption by 23%, an amount equivalent to the total energy consumption of the entire world for two weeks.

The report also outlines five observations that McKinsey & Co. contend will be relevant to a national debate about how best to pursue energy efficiency opportunities of the magnitude identified and within the timeframe considered in this report. Specifically, an overarching strategy would need to:

  • Recognize energy efficiency as an important energy resource that can help meet future energy needs while the nation concurrently develops new no- and low-carbon energy sources;

  • Formulate and launch at national and regional levels an integrated portfolio of proven, piloted, and emerging approaches to unlock the full potential of energy efficiency;

  • Identify methods to provide the significant upfront funding required by any plan to capture energy efficiency;

  • Forge greater alignment between utilities, regulators, government agencies, manufacturers, and energy consumers; and

  • Foster innovation in the development and deployment of next-generation energy efficiency technologies to ensure ongoing productivity gains.

www.mckinsey.com/clientservice/electricpowernaturalgas/US_energy_efficiency/

 

www.controleng.com





No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Additive manufacturing benefits; HMI and sensor tips; System integrator advice; Innovations from the industry
Robotic safety, collaboration, standards; DCS migration tips; IT/OT convergence; 2017 Control Engineering Salary and Career Survey
Integrated mobility; Artificial intelligence; Predictive motion control; Sensors and control system inputs; Asset Management; Cybersecurity
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This article collection contains several articles on how automation and controls are helping human-machine interface (HMI) hardware and software advance.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me