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The manager of New England’s electricity system predicts high energy prices and tight supply will remain problems for years to come. It offers seven ways to ease both, but only one is immediately available. Using less electricity doesn’t require new power lines or generating plants, both of which are difficult to site, making it the best and most realistic short-term alternative.
Maine, like other New England states, already has efficiency programs in place, but more needs to be done, especially to coordinate efforts in the region.
Because the region is heavily dependent on natural gas for its electricity generation, ISO New England this month warned that electricity prices are likely to remain high for the next two decades. To improve the situation, ISO New England, which manages the region’s wholesale power market, looked at seven options, including building new nuclear power plants and increasing power generation from renewable sources such as wind, solar and biomass.
The lowest-cost scenario and the one that could most quickly produce results is conservation, also called demand-side management.
Reducing electricity use through efficiency costs less than half as much as building new generation facilities to meet demand. It also has environmental benefits such as reducing emission of greenhouse gases and other pollutants. In addition, the money that is saved through lower electricity bills stays in the region, helping local economies.
In the last year, lawmakers and regulators have taken steps to ensure more emphasis is placed on reducing electricity use.
This year, lawmakers increased the amount of money that can be collected from electricity customers and devoted to conservation projects through Efficiency Maine, which is run by the Public Utilities Commission. The most common projects are installing more efficient lighting and upgrading motors. They often pay for themselves in a year or two.
Since 2004, the program has helped companies and individuals save nearly $90 million by reducing energy consumption by more than 121,000 megawatt-hours, which is equivalent to the annual electric consumption of 180,000 Maine homes.
Projects include installing more efficient lighting at the University of Maine’s Alfond Arena and selling more than 1.5 million compact fluorescent bulbs to Maine residents.
To enable large users, such as mills and manufacturing facilities, to invest in efficiency improvements, the Legislature allowed them to enter long-term contracts. This offers price certainty so companies can undertake major projects, such as changing a manufacturing process to reduce electricity use.
Conservation will be further boosted by the Regional Greenhouse Gas Initiative, which includes 10 states from Maryland to Maine and aims to cut greenhouse gas emissions by 10 percent by 2019. It would do so with a cap-and-trade system for greenhouse gases that rewards efficient energy use and provides incentives for innovation.
Coupled with new generation, preferably from renewable sources, conservation will play an increasingly important role in meeting New England’s electricity needs.
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