Energy efficiency programs are helping industry achieve higher energy savings, cost savings and productivity improvements, the latest report by the SEE Action Network and the Institute for Industrial Productivity has found.

The report, Industrial Energy Efficiency: Designing Effective State Programs for the Industrial Sector, investigated successful and well-designed industrial energy efficiency (IEE) programs in the United States. The results provide a compelling case for industry participation in state-wide programs.

Amelie Goldberg, North America program manager at the Institute for Industrial Productivity and primary author of the report, says it is clear from the research that state energy efficiency programs are helping both industry and ratepayers save money and cut energy use.

“Our research shows that industrial energy efficiency programs offer participants extensive savings by reducing energy bills. But the benefits are wider than that. There’s no question that industry’s participation in energy-saving efforts is also helping eliminate or delay the need to build more expensive power generation, transmission and distribution capacity. In turn, this means the programs are facilitating efforts to cut the harmful greenhouse gas emissions that cause climate change. It’s a win-win situation for all,” Ms. Goldberg says.

“Looking ahead, everyone’s rates can be kept down by ensuring the majority of energy customers have access to energy efficiency services, such as those offered through IEE programs.”

IEE programs work by providing information, technical assistance and incentives to industrial facilities to support energy efficiency equipment upgrades and improved maintenance practices, and to promote energy management to ensure continuous improvements. IEE programs, if designed and implemented well, can be more cost-effective than efficiency programs in the commercial and residential sectors, helping to ensure that states and regulatory utility commissions encourage delivery of energy services as cost effectively as possible.

“Our research shows that the keys to success are making a sizeable commitment over a number of years, and ensuring there are strong strategic energy management programs in place in firms. The energy savings achieved warrant the effort – they go well beyond those made by individual firms as part of their own energy efficiency initiative. Take the NORPAC paper mill in Washington State, which participated in a program offered by the Bonneville Power Administration in conjunction with the Cowlitz County Public Utility District. The company invested $35 million, and an additional $25 million was offered in program incentives for equipment to improve the refining process. NORPAC now saves 100 million kilowatt-hours of electricity per year, equivalent to cutting its power requirements by about 12 percent.”

The Institute for Industrial Productivity was commissioned to write the report by the SEE Action Network, a state and local-led effort facilitated by the US Department of Energy and the Environmental Protection Agency. The report focuses primarily on programs funded by ratepayers – i.e., electricity and gas customers. For more information, please see the full report: www.iipnetwork.org/IEE_Effective_State_Programs.pdf2

THE INSTITUTE FOR INDUSTRIAL PRODUCTIVITY: Established in 2010, IIP is an independent non-profit organization whose role is to accelerate the uptake of energy efficiency practices amongst industry. It is the only global organization solely dedicated to helping reduce industrial energy use to mitigate climate change and address other relevant environmental issues. www.iipnetwork.org

Institute for Industrial Productivity

Institute for Industrial Productivity

Established in 2010, IIP is an independent non-profit organization whose role is to accelerate the uptake of energy efficiency practices amongst industry. It is the only global organization solely dedicated to helping reduce industrial energy use to mitigate climate change and address other relevant environmental issues. IIP has a global team and network of independent experts that provide advice on technology, policy and financing of industrial energy efficiency.

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