Advanced Energy Perspectives

Since 2016, the United States has acknowledged every first Wednesday in October to celebrate one of the most essential players in combating climate change: energy efficiency. Bringing energy efficiency to the forefront of national observances spurs celebration of the benefits that come with it, such as lowering energy bills, reducing reliance on fossil fuels, and lowering greenhouse gas emissions. Pairing these benefits with improving grid resilience and reliability can create a healthier future for our communities and a true “powerhouse” climate solution.  

The Inflation Reduction Act (IRA) contained a variety of incentives, grants programs, and policies to help catalyze not only the growth of clean generation, but also energy efficiency and building electrification. Among the notable measures in the landmark law were a pair of residential rebate programs - the Home Efficiency Rebates and the Home Electrification and Appliance Rebates Programs – for which the IRA provided $8.6 billion.

How quickly and efficiently New Jersey can transition to a 100% clean energy future depends in no small part on how the state’s utilities implement energy efficiency and demand management guidance recently issued by New Jersey’s Board of Public Utilities (BPU). At the end of July, the BPU voted 4-0 to approve an Order that largely implements Staff’s Straw Proposals on the 2nd Triennium of Energy Efficiency and Peak Demand Reduction Programs (Triennium 2), an every-three-year regulatory proceeding that defines the scope of utility demand side management programs. Triennium 2 has the potential to foster economic development in New Jersey, increase grid reliability and flexibility, and lower utility bills for residents by leveraging advanced energy technologies and services. However, the promise of these programs is in the hands of the state’s utilities. The NJ BPU designed Triennium 2 in a way that provides utilities with significant leeway to determine how aggressively and ambitiously to implement these programs. To maximize the guidance in this Order, utilities should make significant investments in the three areas covered by Triennium 2: electricity reduction measures, building decarbonization programs, and peak load demand-response initiatives. 

2022 has been a banner year for clean energy, with several important policy, market, and geopolitical drivers shifting the conversation. Electric building heating technologies are no exception and as the use of natural gas declines in response to these trendlines, a lot remains “TBD” on how to transition away from the fossil fuel. Because the decisions we make today will lock in infrastructure and costs for decades, state policymakers are beginning to reexamine the way we plan and pay for the use of gas in buildings today. They need new tools, and AEE is here to help. 

Every year, on the first Wednesday of October, we celebrate the low-profile powerhouse of the advanced energy sector: energy efficiency. The annual Energy Efficiency Day (#EEDay2022 on social media) serves as a reminder that efficiency upgrades – however big or small – work year-round to lower bills, improve grid efficiency, enhance the resilience of our communities, reduce reliance on fossil fuel energy, and create local jobs. Energy efficiency touches everyone in their homes, at their jobs, and in their schools, and will become ever more important as we upgrade our transportation and buildings to high-performing, clean technologies like electric cars and heat pumps. Efficiency is also key for keeping us cool during extreme heat and warm during severe cold without straining the grid or our pocketbooks. Now, there’s more reason than ever to cash in on the value of energy efficiency, thanks to landmark legislation passed by Congress.