Industrial energy efficiency is losing ground in the Midwest. Though it’s one of the most cost-effective energy efficiency measures, states are increasingly allowing industrial customers to opt-out of paying into energy efficiency programs or exempting them from doing so altogether. As a result, overall energy savings and the cost-effectiveness of EE programs are on the edge of decline.
October 16-20 is “Careers in Energy Week” for the state of Illinois. Governor Rauner has recognized that a strong and diverse energy workforce is critical to support the large demand for safe, reliable and affordable energy to support Illinois families, communities and businesses. Energy efficiency is a key component to ensure affordability and reliability for years to come.
At a recent conference in Milwaukee hosted by M-WERC, the opportunities for reducing energy consumption at small- and medium-sized manufacturing facilities were touted repeatedly: Cost savings, productivity increases, improved worker safety and plant conditions, extended equipment lifetimes, corporate marketing benefits – the list goes on.
On June 6, the American Council for an Energy-Efficient Economy released a new report on the increased health and economic costs that would result from an expanded industrial opt-out policy in the state. ACEEE found that expanded opt-out would cost Ohio residents billions of dollars due to higher electricity rates, increased utility system costs and medical expenses from increased air pollution.
Last month, the Alliance for Industrial Efficiency released a new report that ranks each U.S. state on their potential for industrial energy efficiency to reduce carbon emissions. The report, State Ranking of Potential Carbon Dioxide Emission Reductions through Industrial Energy Efficiency, identifies which states are best suited to help the industrial sector to cut carbon emissions, while saving money and making manufacturers more competitive.
Over the last year, MEEA has participated in the Industrial Energy Efficiency Working Group coordinated by M-WERC, or the Mid-West Energy Research Consortium, a MEEA Member. Headquartered in Milwaukee, M-WERC is a unique thought leader, catalyst and incubator focused on the growth and economic competitiveness of the energy, power and control industry cluster across the Midwest. To guide this work, M-WERC develops Industry Roadmaps that pinpoint specific barriers to economic development in key areas.