Energy Efficiency in Appalachia

This study assumes that a set of transformative energy policies that would be adopted in the Region beginning in the year 2010. The policy portfolio modeled in this report includes a combination of vigorous deployment initiatives that increase the achievable potential for energy efficiency, and expanded research, development, and demonstration (RD&D) funding that accelerates the advancement of energy-efficient technologies, as shown in Table ES.1.
The aggressive policies could shrink the energy consumption required by the Region in 2030 to less than the Region consumed in 2006 – more than offsetting the forecast growth in energy use. The annual energy bill savings begins with a modest first year benefit of almost $800 million. As the policy portfolio spurs further investment in energy efficiency, the annual consumer energy bill savings rise to more than $27 billion by 2030. These savings directly benefit the consumers who make these investments, but they also increase both wages and Gross Regional Product (GRP) throughout Appalachia, as shown in Table ES.3.
In addition, we conduct a sensitivity analysis of a carbon constrained scenario where there is a “price adder” of $25 to $100 per metric ton of carbon dioxide beginning in 2011. With a premium on the price of fossil fuels, energy efficient technologies are highly cost-effective; however, the difficult economic conditions dampen  investments. In the high-tech investment boost scenario, the country produces significant material, technology, and process advances in the performance and cost competitiveness of clean-energy supply technologies, most notably clean coal. As a result of the successful investment climate, energy efficiency is also able to play an enhanced role in the Region, as Figure ES. 4 shows.