Energy efficiency could save R.I. National Grid customers $1.85 billion

PROVIDENCE – Rhode Island National Grid electric customers could save $1.85 billion though energy efficiency steps taken during the next decade, according to a report commissioned by the R.I. Energy Efficiency and Resource Management Council.

The report released Wednesday says that Rhode Island residents and companies can save energy by installing compact florescent light bulbs, replacing old appliances with high-efficiency ones, insulating pipes and adopting new technologies that improve the efficiency of mechanical and ventilation systems.

Overall, the report by consultant Kema Inc. says such steps could reduce annual electricity consumption by 2.9 percent annually, or 25 percent cumulatively over a decade under the most economical scenario.

“I think that the real nut of the report is 2.9 percent of our annual electricity could come from efficiency that costs 4.5 cents per kilowatt-hour versus buying power from a power plant at 9 cents a kilowatt-hour,” said council member Abigail Anthony, who is a policy analyst for Environment Northeast.

The cost of energy efficiency, including purchasing and installing new equipment, is often less expensive than turning to new supply options like wind farms, Anthony said. Electricity from an eight-turbine wind farm proposed off Block Island would sell electricity wholesale for 24.4 cents a kilowatt-hour during its first year of operation. The Cape Wind farm proposed for Nantucket Sound would sell electricity wholesale at 18.7 cents a kilowatt-hour during its first year.

The report does not address potential savings or costs associated with switching where Rhode Island receives its electricity.

Rhode Island law requires the energy council to study ways to reduce energy costs through efficiency. The council expects the report to form the basis for electricity consumption reduction targets that National Grid – the state’s largest seller of electricity – is required to meet.

The council suggested that the R.I. Public Utilities Commission require the utility to reduce electricity consumption by 2.5 percent annually based on 2009 usage.

National Grid will aim to reach that goal by continuing and starting programs that encourage homeowners and businesses to reduce energy usage. For example, current programs give rebates to customers that replace old appliances and lighting.