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SEEA:
Why Energy Efficiency in the Southeast U.S.?
Why is energy efficiency so important?
- The Southeast is the most populous and the fastest-growing region in the United States;
- The Southeast has rapidly growing energy demand;
- Energy efficiency investment per capita is the lowest in the nation;
- Market penetration of efficient ENERGY STAR® labeled products is the lowest in the nation, and;
- Potential economic and environmental benefits of energy efficiency measures abound.
Population Growth
The Southeast region recorded 20 percent population growth in the past decade, making it the country’s most populous region today. Further, the Southeast is the fastest growing region in the United States (see Figure 1). In 2001, 511,161 privately-owned housing permits were issued in the Southeast—that’s 31 percent of the national total for that year! Energy-efficiency measures would help to offset the increased energy needed due to rapid population growth.
Source: U.S. Census Bureau, Projected Population Increases, October 1996
Current Energy and Efficiency Mix
The Southeast has among the highest per capita electricity consumption values in the nation (see Figure 2). It also has a much higher level of energy intensity—the amount of energy consumed to produce $1 of gross state product—than the national average. According to a report by the Renewable Energy Policy Project, without further energy-efficiency improvements, electricity consumption in the South is expected to grow by 45 percent from 2000 to 2020.
Source:
Federal Energy Regulatory Commission, Midwest Energy
Infrastructure Conference,
November 2002
Despite its high energy usage, the Southeast region has the lowest levels in the nation for ENERGY STAR® market penetration and energy-efficiency spending per capita is just one-fifth of the national average.
Table 1: ENERGY STAR® Market Penetration ENERGY STAR® appliance sales as |
|
New England |
33% |
New York |
31% |
Northwest |
29% |
California |
27% |
Alaska/Hawaii |
26% |
Southwest/Rockies |
25% |
Mid-Atlantic |
24% |
Upper Midwest |
23% |
Lower Midwest |
20% |
South/Southeast |
20% |
Source: D&R International
Finally, the Southeast lags behind other regions of the country with assistance
to low-income households to weatherize homes. Low-income families in the
region also receive lower overall levels of support, relative to subsidies
delivered in other regions, in helping to pay their energy bills.
Benefits of Efficiency for the Southeast
Studies show significant job creation and economic development are possible with energy efficiency. The American Council for an Energy-Efficient Economy (ACEEE) examined the link between economic development and energy efficiency in Illinois (report E982, 1998). The benefits they found included energy bill savings, job creation, wage increases, and the reduction of air pollutants.
Similar economic and environmental benefits can be projected for the Southeast region. With nearly half of the energy in the Southeast region coming from coal, energy savings like those projected for Illinois would significantly improve air quality.