Investments in energy efficiency can be a growing revenue source. Strong programs, in conjunction with effective monitoring and verification, are the keys to success.
Luisa M. Freeman is a managing consultant at PA Consulting Group. Contact her at firstname.lastname@example.org. Jeremy Works of PA Consulting Group served as a contributor to this article.
Conditions are conspiring to make investments in energy efficiency a major strategic move on the part of utilities in the United States. It’s no longer just “the right thing to do.” There is a strong and growing business case for significant investment in energy efficiency on the part of utilities and their customers. For those utilities that can demonstrate effective measurement of this resource, investments in this area can be a growing revenue source. The key to success will be to develop strong programs, in conjunction with effective, serious monitoring and verification. Like the old industry mantra “meter – bill – collect,” energy efficiency impacts require the same quantification.
Furthermore, the resurgence in utility-implemented energy efficiency has been strengthened suddenly by five drivers: 1) public-benefits programs; 2) environmental markets; 3) capacity markets; 4) energy prices; and 5) corporate sustainability programs. In this article, we analyze each of these new trends.