YEAR LOOKS GOOD FOR EFFICIENCY

Energy Efficiency in 2012: Forecast Is Mostly Sunny
Steven Nadel, January 6, 2012 (American Council for an Energy Efficient Economy)

"Looking forward into 2012, I see more reasons for optimism than pessimism. Many states and utilities are committed to ramping up their energy efficiency programs…The private market continues to invest in energy efficiency, although efforts have been slowed by the economic downturn. New energy-efficient products continue to enter the market and energy efficiency is one of the hot areas for “Cleantech” investments…

"At the federal level, new vehicle and equipment efficiency standards will be issued in 2012. Fuel…economy standards for passenger vehicles will be finalized…raising these standards to an average of nearly 50 mpg by 2025. Final decisions are due from DOE on standards for 13 products…And recent EPA regulation updates on emissions of toxic pollutants, along with other pending regulatory updates for power plants, will encourage utilities to look at efficiency investments as an alternative to upgrading aging power plants."

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"A major driver in 2012 will be the state of the economy. Our economy is finally growing again, although too slowly…[E]nergy efficiency can contribute to job growth…The Brookings Institute estimates that there are about 2.7 million clean economy jobs in the U.S., including about half a million added over the 2003-2010 period…While there are many reasons for optimism in 2012, all is not rosy…[ARRA] funding will end in early 2012…Policymaking in Washington is paralyzed…[and] the energy savings realized are still modest relative to the cost-effective opportunities.

"…[ACEEE] will be working to advance three themes in 2012…assisting and encouraging states, utilities, and others who are interested in increasing their energy efficiency efforts…documenting what works (and what doesn’t) so that programs and policies can be as effective as possible…[and] laying groundwork for the future…"