Conservation and Efficiency - Energy Policy Analysis: A Conceptual Framework - page 175

fell 2 percent compared to 2008, and energy consumption declined by nearly 5 percent. Decreases
occurred in all four major end-use sectors: residential, 2 percent; commercial, 1 percent; industrial,
9 percent; and transportation, 4 percent. Consumption decreased the most in the industrial sector,
which was particularly hard-hit by the recession. Real value added for the manufacturing sector fell
by 6 percent. Total energy consumption in the transportation sector fell by about 4 percent in 2009,
as fewer goods were shipped. However, the previous historical trend for annual increases in energy
consumption resumed in 2010 as the U.S. economy improved. Total energy consumption increased
by about 4 percent over 2009. Increases occurred in all sectors: residential, 5 percent; commercial,
2 percent; industrial, 6 percent; and transportation, 2 percent (USEIA 2011a).
Many opportunities have been identified where industry might conserve energy or improve
energy efficiency, thereby reducing environmental and dollar costs. Many large industrial firms
generate their own electricity. When electricity is generated, heat produced as a by-product can
be captured and used for process steam, space heating, or other industrial purposes. Conventional
electricity generation is about 30 percent efficient, whereas combined heat and power (cogeneration)
converts up to 90 percent of the fuel into usable energy. Moreover, advanced boiler and furnace
technologies can operate at higher temperatures while burning less fuel. These technologies are
more efficient and produce fewer pollutants (EESI 2006b, 1).
Over 45 percent of fuel used by U.S. manufacturers is combusted to make steam. A typical
industrial facility can reduce this energy usage 20 percent by insulating steam and condensate
return lines, stopping steam leakage, and maintaining steam traps (EESI 2006b, 1).
Electric motors usually run at a constant speed, but a variable speed drive allows a motor's
energy output to match the required load, achieving energy savings ranging from 3 to 60 percent,
depending on how the motor is used. Motor coils made of superconducting materials can also
reduce energy losses (EESI 2006b, 1).
Industry uses a large number of pumps and compressors of all shapes and sizes and in a wide
variety of applications. The efficiency of pumps and compressors depends on many factors but often
improvements can be made by implementing better process control and maintenance practices.
Compressors are commonly used to provide compressed air used for sand blasting, painting, and
other power tools. Optimizing compressed air systems by installing variable speed drives, along
with preventive maintenance to detect and fix air leaks, can improve energy efficiency 20 to 50
percent (EESI 2006b, 1).
The U.S. economy has the potential to reduce annual nontransportation energy consumption
by roughly 23 percent by 2020, eliminating more than $1.2 trillion in waste—well beyond the
$520 billion up-front investment that would be required. This reduction in energy use would
also result in abatement of 1.1 gigatons of greenhouse-gas emissions annually—the equivalent
of taking the entire U.S. fleet of passenger vehicles and light trucks off the roads. Recommended
measures include turning off or switching to standby mode all computers in U.S. office build-
ings at night and sealing all heating and cooling ducts to reduce air leaks. Replacement of old
appliances is one of the most efficient global measures to reduce emissions of greenhouse gases
(Granade et al. 2009).
COSTS OF ENERGY CONSERVATION AND EFFICIENCY
Environmental Costs of Conservation and Efficiency
The energy conservation and efficiency technology “fuel cycle” is a bit abstract, involving the
identification, manufacture, installation and operation of a tremendous variety of technologies,