Advanced Energy Perspectives

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.

Extreme weather. Spiking natural gas prices. Peak levels of electricity use that push the grid to its limit. Our energy system faces a growing set of challenges, and our utilities and their regulators have to make big infrastructure and investment decisions today to solve those challenges. But even with a growing number of advanced energy technologies and solutions available – including those on the demand-side – many electric utilities just want to build more natural gas-fired power plants. We think there is a better way. Here’s how utilities – and one utility in particular – can use rates, incentives, and technology to manage energy use and save customers money.

In our lives, we try to optimize everything. The days aren’t getting longer, but we’re trying to fit more activities into each hour. Sometimes it’s eking out just one more email, fitting in an extra errand during the day, or crossing one more chore off the to-do list. We’re striving to improve productivity, and in the process, burning ourselves out. But instead of working harder, we should be working smarter. We need to do a better job focusing on what really matters, and when possible, delegate work to both new and tried-and-true technologies that can help us avoid distractions and automate tasks. It makes sense to take the same approach with energy.