U.S. Is Low in International Energy Efficiency Rankings

A recent ranking by the American Council for an Energy-Efficient Economy places the US 13th out of the 16 largest world economies in energy efficiency. (http://aceee.org/portal/national-policy/international-scorecard) Germany was 1st, followed by Italy. Even developing countries like China and India, where power failures are common, ranked higher than the US. Only Russia, Brazil and Mexico were worse.

Why did the US rank so low despite our high level of education and entrepreneurship? The US is one of only two nations on the list with no national energy or GHG emission reduction plan and is very dependent on centralized sources of electricity and heat, and thus the high inefficiencies in power transmission. US industry uses comparatively little combined heat & power (CHP). Finally, the US transportation sector is poor because of our overall poor fuel economy and relatively high miles traveled per vehicle per year. Per capita, US mass transit serves fewer people than in most other nations considered.

This has many financial implications. The US is losing a lot of economic opportunities. While American business is quick to lay workers off to improve labor efficiency of performing tasks, there is not the same attitude to reducing energy to improve economics. Not only does this represent a great opportunity for direct cost savings (money in the bottom line rather than an energy supplier’s pockets), but it saves on natural resources, provides greater operational flexibility, and lowers transit costs.

What can be done to make the US more energy efficient as a nation? The biggest issue may be that US energy efficiency efforts are inconsistent. Different states and even cities and counties have innovative programs to improve energy efficiency, such as new building codes and financial incentives to become more efficient, while many states and even areas within states have no such rules or programs; large contrasts exist. There needs to be national energy efficiency standards and incentives. Ironically, one of the few national programs, EPAct (IRS Code No. 179D) expired Dec. 31, 2013, and while both parties say they wish to extend it and even strengthen it, it has not happened yet.

Absent of a new national energy policy (which is unlikely based on the recent actions of Congress) some improvements may be gained through future GHG regulations. A very effective way of reducing GHG emissions is energy efficiency – using less GHG-emitting fossil fuels for work that needs to be done. Implementation of new rules can improve energy efficiency. In addition, greater spending for mass transit systems should reduce the number of cars on the road, improving efficiency and reducing traffic, too.

CCES has the experts to help your entity become more energy efficient, evaluating your production processes, your general use of energy (buildings), and for your fleet of vehicles. We have documented success in saving significant costs for many entities. Contact us today at 914-584-6720 or at karell@CCESworld.com.