Green Energy

Energy Efficiency

Energy efficiency means getting more output from a unit of energy - essentially, doing more with less. There are several policies and practices that can help achieve this.

On the supply-side, there are steps that can be taken to improve the efficiency in the generation, transmission, and distribution of energy. A certain percentage of energy is lost during the production phase - better power plant design, engines and new technologies can help reduce the amount of energy that is wasted in the processing, capturing more of the resource to be put to effective use. The most efficient power plants turn only 40% of their fuel into electricity. In developing countries the prevention of theft of electricity is also an important challenge to address.

Some electric utility companies practice "load management" to conserve energy. In order to make the most efficient use of their supply, companies temporarily cut off power during peak demand to certain sites that may not need it at that time. This allows the utility to distribute its supply more broadly to meet the needs of more customers - and the customers who agree to have their power interrupted often receive special discounted "interruptible rates." 

Energy can also be conserved on the demand-side. Of course, energy can be saved by doing with less - like turning off lights when not in use, keeping thermostats at an optimum setting etc. But great strides have been made in improving the efficiency of everyday appliances such as refrigerators, TVs, VCRs and computers, office equipment, heating and cooling equipment, so that they use less energy to operate. Lighting efficiency has also been vastly improved, by the use of compact fluorescent lamps and electronic ballasts. Consumers can opt for these more efficient products which use less energy and yet still provide the level of comfort or service they have come to expect.

Many utilities employ "demand-side management" programs to help reduce the demand for electricity while still meeting the needs of their customers. In industrialized countries these take the form of rebates, low-interest loans, technical assistance with energy audits and technologies and public awareness campaigns. Several utilities have also partnered with manufacturers of energy efficient technologies to promote awareness and to assist in marketing these technologies.

While it may seem counterproductive for a utility company in the business of selling energy to be encouraging customers to use less, they do benefit. In the short term, they reduce operating costs; and, in the long-term, by doing more with the energy they produce, they also avoid the costly expenditure of having to build new power plants, adding new capacity or replacing old ones.