Volume 15, Issue 86 | November 5, 2018

What's New in Energy Efficiency?

Energy efficiency can set up a more cost-effective use of energy services

 

Companies and organizations have been investing in energy efficiency for years. However, new technology continues to surface, resulting in strides such as improving the energy required to produce a unit of economic output. Even small changes in consumption can result in measurable, cumulative gains.

The federal government spent $16 billion on energy from all sources in 2016, with energy consumption by facilities accounting for $6.1 billion. This reflects a 24 percent reduction in energy consumption, as well as lower energy prices. If consumption by federal facilities can be reduced by another 20 percent, up to $15 billion over 10 years could be channeled into other energy services.

Reducing the cost of energy is good and getting the maximum benefit from procured energy across an  expanding range of goals is even better. Energy efficiency can now set up a more cost-effective use of energy services, such as distributed energy resources and storage, and in some cases, could help pay for them. Assessing age, functionality and weaknesses of control systems yields useful information in determining requirements for subsequent energy initiatives and projects.

For government and commercial sectors, Energy-as-a-Service (EaaS) is an approach that uses quantified savings from new energy efficiency investments to help defray the cost of energy, energy attributes and other services being acquired. One major benefit of energy efficiency solutions is the cost-savings that may offload the required investment, resulting in long-term savings.

While energy efficiency is not a new strategy, what is new is its application as a key component of the expanding range of energy options. 


For information about the role of energy efficiency in improving resiliency and security, download our free whitepaper, Energy Efficiency for Resiliency, Security and Comprehensive Energy Management.


Editor's Note

Storage Falls Below the 5-year Average

Week in review for October 28 - November 3, 2018

 

On Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday October 26, 2018 was 3,143 BCF. This was an increase of 48 BCF from the previous week, slightly lower than the median market expectation. Inventories are now 623 BCF lower than this time last year, 638 below the 5-year average and remain below the 5-year minimum value, as has been the case since July 27, 2018. 

Not only has the storage level been consistently below the previous 5-year minimum, the amount below the minimum has also been increasing each week and levels are now 363 BCF lower than the previous low of 3,506 BCF.

This week, the NYMEX natural gas 12-month strip (Dec 2018-Nov 2019) was down 0.7%, while the PJM West Hub 12-month forward curve was up 0.7%. Natural gas prices further out in 2020 and beyond remain near all-time lows.


This past week's market information is provided as a courtesy to our customers and is not indicative of, nor should be relied upon, as representative of future transactions.


Weather

Local Cooling Degree Days*

 


Cooling Degrees Days* 

 

May - 18

June - 18

July- 18

Aug- 18

Sept - 18

 

 Actual

231.5 

336.5 

 484.5

 496.5

315.5 

 

 Normal

115.9

324.0 

 471.6

423.4 

214.6 

 

 Departure from Normal

 99.7%

4% 

           3%

17% 

 47%

 

 Warmer

 Warmer

Warmer 

 Warmer

 Warmer

 

*Cooling degree days are calculated by comparing the day’s average temperature to a 65 degree baseline.  If the day’s average temperature is below 65, there are no cooling degree days that day.  If the average temperature is greater than 65 degrees, then subtract 65 from the average temperature to find the number of cooling degree days.