The future of energy efficiency

Good morning. Yesterday marked Energy Efficiency Day, a US Senate-designated day to celebrate the economic and environmental benefits driven by private sector innovation and federal energy efficiency policies. 

Efficiency is one of the biggest themes driving us toward a more sustainable, more reliable, and more scalable future in electric power. So today, we’re shaking things up—with a special newsletter dedicated to energy efficiency, from tech innovations to the global landscape. Enjoy—and remember to turn off the lights when you leave the office today.

— Reagin von Lehe, Energy Central Newsletter Writer

By the way: Don’t forget to hit reply and tell us what you think of this newsletter. We’re eager to hear your POV.

4 Energy Efficiency Technologies Changing the Game

Technology is widely understood to be the key to scalable energy efficiency—look no further than the innovation of energy storage solutions for off-peak usage or smart homes and buildings. 

So what’s driving the future of energy efficiency? Here’s a rundown of the top technological developments we’re tracking here at Energy Central →

V2G charging

The tech: In a nutshell? Vehicle-to-grid charging pushes energy from the battery of an EV back to the power grid. V2G charging has picked up steam this year with school bus and residential programs launching for utility customers to earn compensation by charging their EVs during low-demand hours (such as midday).

In the real world: Oakland, California, became the first school district to adopt a 100% electric school bus fleet in May, giving 2.1 GW back to the grid annually.

Occupancy-based HVAC and heat pump upgrades

The tech: Occupancy-based HVAC control and heat pump upgrades can help commercial buildings achieve energy and cost efficiency—slashing bills by up to half. Here’s how:

• Updating systems with more efficient tech like light sensors and power factor correction transformers can cut energy use up to 50%, according to the Department of Energy.

• Next-generation heat pumps with better performance in extreme cold haven’t reached mainstream market adoption yet (chalk it up to supply chain issues and a lack of installer companies).

• But the DOE could help fill those gaps—the department is working on prototypes and committed $169 million last year to supercharge domestic heat pump manufacturing.

In the real world: Digital automation and energy management company Schneider Electric found last year that digital optimization of HVAC system controls in commercial buildings (compliant with ASHRAE Guideline 36) reduced carbon emissions by up to 42% and electricity use by 19.7%.

SHEMS

The tech: Smart home energy management systems (aka SHEMS) that allow customers to manage thermostats, for example, can reduce energy needs by some 15–20%. How do utilities benefit? Customers can participate in demand response programs that incentivize them to turn devices off during peak hours.

In the real world: Energy Star-certified products (like SHEMS) helped customers save 240 billion kWh of electricity and $24 billion in energy costs in a single year, according to Energy Star.

Thermal energy storage

The tech: Thermal energy storage (storing energy in water tanks, rocks, bricks, or sand) is making significant strides. For example…

• New innovations including phase-change material (PCM) systems, thermochemical units, and encapsulation for durability are becoming increasingly common.

• With these technologies, facilities can switch to storage during peak hours and freeze PCM using less energy. The safer and more cost-effective tech is a good solution for large industrial utility customers, helping with refrigeration and cold storage.

In the real world: California-based Rondo Energy secured a $80.6 million commitment to install its heat batteries at industrial sites across Europe. And Brenmiller Energy announced a 12-year ​“heat as a service” agreement at a pet food processing plant in Hungary. The plant will use 25–30% less fossil fuel once the thermal storage system is installed. 

Overall? The industrial thermal energy storage market is projected to reach about $4.5 billion by 2034, according to IDTechEx forecasts.

We’re curious: What efficiency tech are you tracking? Hit reply and tell us more.

US vs. Europe: Energy Efficiency in the Renewables Race

As both Europe and the US race toward a more renewables-focused future—adding gigawatts upon gigawatts of projects to the grid—energy efficiency is vital for mitigating grid stress.

So who’s nailing efficiency efforts—Europe, where solar and wind are launching at a fast clip, or the US, where innovation reigns supreme? Let's compare energy efficiency in both regions →

Over in Europe…

• Utility action on energy poverty and efficiency in Europe is still heavily reliant on government support. Utilities in France, Ireland, and the UK such as EDF Renewable Energy and Electric Ireland are considered frontrunners in energy efficiency.

• Europe’s Energy Efficiency Directive has recently put energy poverty in the spotlight with the Social Climate Fund. The directive expands energy audit obligations for small- and medium-sized enterprises.

• Energy management systems are now mandatory for large industrial energy consumers.

Here in the US…

• Eversource Massachusetts, National Grid Massachusetts, Pacific Gas & Electric, Baltimore Gas & Electric, and Eversource Connecticut are leading utilities’ efforts toward efficiency, according to the American Council on Energy Efficiency.

• The utilities’ energy efficiency standards are more focused on consumers with rebates for appliances—driving EV adoption, smart management technology, and building updates. For example: National Grid offers rebates up to $15,000 for new (more efficient) heat pump systems.

• The DOE finalized new standards in April for air conditioners, heat pumps, dishwashers, refrigerators, and distribution transformers to lower energy costs for families and businesses.

Experts Weigh in on Energy Efficiency

From winter risk mitigation to powerful marketing tactics, Energy Central members have a ton of perspective on efficiency in its many shapes and forms. Let’s roll the tape on some of our favorite Energy Central content about energy efficiency this year →

• Energy Central community members share their experiences with AI models designed to optimize home energy usage.

• Why is the world’s current energy system so inefficient…and what can be done to fix it? 

• Marketing and design experts for energy companies share their dos and don'ts for promoting energy efficiency in email campaigns—comms experts, this one's for you.

• Direct current lighting blows the more traditional alternating current lighting out of the water when it comes to efficiency, carbon reduction, and cost savings. Agree or disagree?

• We know you only just put away the summer wardrobe. But winter is on its way, and with it comes high energy demand and utility bills. Learn how lighting, thermostat, and sealing upgrades can save money.

Power Perspectives Podcast Playlist: Energy Efficiency Day 2024

We’re celebrating Energy Efficiency Day 2024 all week here at Energy Central. We’ve curated a playlist of some high-value, insightful, and engaging episodes from our Power Perspectives podcast. A small taste of what could be in your AirPods very soon…

• Paula Glover of the Alliance to Save Energy discusses innovative strategies for efficiency goals.

• Rudy Garza of CPS Energy covers energy efficiency, grid resilience, and clean energy in Texas.

• Glen Spry, CEO of SensorSuite, dives into energy-efficient grid resource buildings.

Hit reply or comment under the posts to share your thoughts.

The Energy Central Wire

The best of the rest in energy headlines

• California Governor Gavin Newsom rules in favor of utilities, rejecting a bill meant to undo regulations that made it harder for farms and schools to install solar.

• The EPA gathers feedback in west Texas for the largest planned carbon capture and storage facility in the US.

• Hurricane Helene holds up quartz mining in North Carolina, stalling production of a critical semiconductor component.

• The DOE plans to invest $1.5 billion to stake four transmission projects that support nearly 1,000 miles of lines.

• New report estimates the US (specifically ERCOT and SPP) needs to add 300 GW of capacity by 2035.

• The DOE awards Oregon over $113 million for two new home energy efficiency rebate programs for low- to moderate-income households.

• Duke Energy installs two mobile substations to restore power in Asheville, NC.

Energy Central Community Shoutout: Katherine Johnson, President of Johnson Consulting Group, is publishing a new book about energy efficiency this month. Keep an eye on the Energy Central platform so you don’t miss launch.

Thank you for reading. While we have you here…

See you back here on Tuesday. Want to bring a friend? Forward them this email or send them here.