Navigation Links
Study finds disincentives to energy efficiency can be fixed
Date:6/4/2013

CORVALLIS, Ore. A new study finds that utilities aren't rewarded for adopting energy efficiency programs, and that reforms are needed to make energy efficiency as attractive as renewables.

The article, just published in the current issue of Environmental Law, examines key differences between energy efficiency projects and renewable resources. Author Inara Scott, an assistant professor at Oregon State University, outlines ways to increase the amount of energy utilities save each year through efficiency programs.

"Right now, the system actually discourages utilities from building programs to increase efficiency," she said. "We need to start addressing efficiency as we do renewable energy by looking at it systemically and removing the barriers."

Scott spent a decade as a lawyer specializing in energy and regulatory law. Her research in the College of Business centers on the transformation of utility systems, clean energy, energy efficiency, and utility regulation.

Her study makes four key recommendations: redesigning rate structures, setting hard targets, streamlining cost-effective tests and addressing market barriers.

Cost-recovery systems for many investor-owned utilities in the United States are based on an old rate structure model the more energy that is produced, the higher return for shareholders. "You don't want to penalize utilities for selling less energy," Scott said.

Instead, she said, states can use ratemaking mechanisms to decouple the link between utility sales and revenues and establish performance incentives for the adoption of efficiency programs.

"Decoupling mechanisms may add complexity to utility rate structures, but they are essential to eliminating environmentally nonsensical ratemaking models that reward utilities for higher sales and penalize them for efficiency."

Setting hard targets is doable, she said. The state of Oregon has set a goal for 25 percent of its energy to be consumed through renewables by 2025. Scott said other states also could set aspirational goals for energy efficiency.

"If states are committed to reducing the strain on the electric grid, diversifying utility resource portfolios, reducing dependence on foreign markets, and reducing carbon emissions through the adoption of renewable resources, they should be just as willing to do so through the adoption of energy efficiency as they are through the purchase of renewable resources."

Streamlining cost-effectiveness tests will be difficult, Scott said, because a simple, accurate way to measure energy efficiency does not exist. "The difficulty is that you're trying to measure energy you didn't use. So really, you're measuring something that doesn't exist."

Many of the tests that do exist are so complicated that they may discourage utilities from adopting energy efficiency. Issues with cost-effectiveness testing will be difficult to fully remedy, Scott said, but these steps conducting assessments at a programmatic level, streamlining the precision of tests, and considering the development of national standards will move the bar forward.

Market barriers, Scott said, can be addressed through incentives. Some states, including Colorado and Michigan, have increased the size of incentives for consumers to take on energy efficiency programs (including, in some cases, reimbursing consumers 100 percent of their investment) and finding ways to make incentives more attractive to customers through advertising and education.

"There needs to be better marketing around efficiency," Scott said. "We need to make increasing energy efficiency as attractive as opting for 'green' or 'salmon-friendly' renewables."


'/>"/>

Contact: Inara Scott
Inara.Scott@bus.oregonstate.edu
541-737-4102
Oregon State University
Source:Eurekalert

Related biology news :

1. Study by UC Santa Barbara researchers suggests that bacteria communicate by touch
2. Law that regulates shark fishery is too liberal: UBC study
3. New study will help protect vulnerable birds from impacts of climate change
4. Study jointly led by UCSB researcher supports theory of extraterrestrial impact
5. BYU study: Using a gun in bear encounters doesnt make you safer
6. 15-year study: When it comes to creating wetlands, Mother Nature is in charge
7. Pycnogenol (French maritime pine bark extract) shown to improve menopause symptoms in new study
8. Crystal structure of archael chromatin clarified in new study
9. EU-funded study underlines importance of Congo Basin for global climate and biodiversity
10. University of Houston study shows BP oil spill hurt marshes, but recovery possible
11. Study demonstrates cells can acquire new functions through transcriptional regulatory network
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/5/2016)... , Feb. 5, 2016 ... of the "Global Facial Recognition Market ... --> http://www.researchandmarkets.com/research/5kvw8m/global_facial ) has announced the ... Market 2016-2020" report to their offering. ... http://www.researchandmarkets.com/research/5kvw8m/global_facial ) has announced the addition of ...
(Date:2/3/2016)... DUBLIN , Feb. 3, 2016 /PRNewswire/ ... announced the addition of the "Emotion ... NLP, Machine Learning, and Others), Software Tools ... Application Areas, End Users,and Regions - Global ... offering. --> http://www.researchandmarkets.com/research/d8zjcd/emotion_detection ) ...
(Date:2/2/2016)... , Feb. 2, 2016   Parabon NanoLabs ... the U.S. Army Research Office and the Defense ... and sensitivity of the company,s Snapshot Kinship ... Mission and, more generally, defense-related DNA forensics.  Although ... capabilities (predicting appearance and ancestry from DNA evidence), ...
Breaking Biology News(10 mins):
(Date:2/9/2016)... BOSTON and LONDON , February ... see leading bio tech replace paper and ... The web-based electronic laboratory notebook (ELN) will be rolled out ... replace paper-based research and development (R&D) and protect valuable IP. ... time and follow a specific researcher or experiment as part ...
(Date:2/8/2016)... Pa. , Feb. 8, 2016 Should ... standard bone cement products to prevent infection after standard ... that the experts at ECRI Institute have been fielding ... Infection or Fighting Your Bottom Line?" ... Your Bottom Line?" --> While ...
(Date:2/8/2016)... 8, 2016  BioElectronics Corporation (OTC Pink: BIEL), ... today that it is responding to a notice ... Securities and Exchange Commission posted on the agency ... of the Board of BioElectronics Corporation and the ... at The Fuqua School of Business, Duke University.   ...
(Date:2/8/2016)... Stockton has an active R&D program for the ... area, the Group has a unique research and development center ... in developing Bio Control products. Stockton ... parameters and regulatory guidelines, and is active in more than ... Stockton,s flagship product Timorex Gold ...
Breaking Biology Technology: