New ACEEE Analysis – Why Is Electricity Use No Longer Growing?

The dynamics of electricity use are complicated. But with the ongoing muddlings regarding U.S. energy policy and the looming specter of climate change, it becomes critical that we do understand electricity usage. A new ACEEE (American Council for an Energy-Efficient Economy) analysis by Steven Nadel and Rachel Young proposes that energy efficiency has become an important factor in U.S. electricity use. As noted by the authors:

Prior to the 1970s energy crises, electricity sales in the United States were growing by more than 5% per year, and as recently as the early 1990s, electricity sales were growing more than 2% per year. In the past few years, growth has essentially stopped: retail electricity sales in 2012 were 1.9% lower than sales in 2007, the peak year. Some observers have attributed this stalled growth to the 2008 economic recession, while others have suggested a variety of other factors. In this paper, we undertake several analyses to consider which factors best explain changes in electricity use in recent years. Our hypothesis is that the recession alone cannot explain the recent stagnation in electricity consumption. We instead hypothesize that electricity savings from energy efficiency programs and from other efficiency efforts such as appliance standards and building codes are having a broad national impact on electricity consumption in the United States, possibly contributing significantly to the recent decline in electricity consumption.

The white paper for this analysis is available at: Why Is Electricity Use No Longer Growing