ACEEE report shows U.S. energy use per dollar cut in half in last 35 years; 60% due to energy efficiency

by Brianna Crandall — July 20, 2015—Thanks in large part to determined facilities managers, energy efficiency has made major strides in the United States in the last 35 years, with “energy intensity”—the measurement of energy used per dollar of gross domestic product—down from 12.1 thousand BTUs per dollar in 1980 to 6.1 thousand BTUs per dollar in 2014, according to a major new report from the nonprofit American Council for an Energy-Efficient Economy (ACEEE).

ACEEE found that about 60% of the improvement in energy intensity over the report’s 35-year period was due to energy efficiency and about 40% to major structural changes in the economy. The bottom line: Just the energy efficiency portion saved U.S. consumers and businesses about $800 billion in 2014, roughly $2,500 per capita. Even though U.S. energy use edged up by 26% from 1980 to 2014, the U.S. gross domestic product (GDP) increased by 149%.

ACEEE found that about 60% of the improvement in energy intensity was due to energy efficiency and about 40% to major structural changes in the economy.
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Issued to mark ACEEE’s 35th anniversary, the report also looks ahead and concludes that “(w)hile much progress has been made, there are large and cost-effective energy efficiency opportunities that, by 2050, can collectively reduce energy use by 40%-60% relative to current forecasts.”

Examples of energy-efficiency advances since 1980 cited in the report include the following:

  • Industrial energy use per unit value of product is down by nearly 40%.
  • Energy losses in the U.S. electric transmission and distribution system have declined by more than 25%.
  • The fuel economy of passenger vehicles has improved by more than 25%.
  • The energy use of new homes per square foot has declined by nearly 20%.

The energy use of new clothes washers has declined by more than 70%.

The ACEEE report notes: “Efficiency investments and savings also generate jobs, including direct jobs installing efficiency measures, indirect jobs upstream in the supply chain, and jobs induced as energy bill savings are spent elsewhere and multiply through the economy. Energy savings can also help to drive modest overall growth in the US economy … Further, energy efficiency savings over the past 35 years have contributed to our nation’s security and improved our environment … Reductions in energy consumption also mean reduced emissions of fuel-combustion by-products, including sulfur dioxide and nitrogen oxides (contributors to acid rain and smog), mercury and other toxic metals (contributors to health problems), and carbon dioxide (the predominant greenhouse gas).”

To achieve even deeper energy efficiency advances in the next 35 years, the ACEEE report recommends:

  • Better systems integration, including through “intelligent efficiency,” i.e., the use of sensors, controls, big data, and computer chips to monitor and control energy use in real time;
  • Improvements to the many types of equipment (such as computers, televisions, and elevators) that collectively account for growing miscellaneous energy loads;
  • Evolution of building design to yield zero net energy and ultra-low-energy buildings;
  • Industrial process improvements;
  • Increased use of advanced vehicles, including electric, hybrid, and self-driving vehicles;
  • Taking building energy retrofits to a much higher level, including more widespread and deeper retrofits for larger savings per building;
  • Better efficiency of the electric grid through expanded use of combined heat and power (CHP) systems, greater power plant efficiency, reduced transmission and distribution losses, expanded use of other distributed generation resources, and improved grid control and integration;
  • Promotion of sustainable development and transportation patterns; and
  • Initiatives to change wasteful energy-using behaviors among consumers and businesses.

The ACEEE report, Energy Efficiency in the U.S.: 35 Years and Counting, is available for free download from the ACEEE Web site.