OVERVIEW
According to American Council for an Energy Efficient Economy (ACEEE), when utilities and other groups discuss ―energy efficiency as a resource,‖ they are defining efficiency as an energy resource capable of yielding energy and demand savings that can displace electricity generation from coal, natural gas, wind power, and other supply- side resources. Investments in energy efficiency and the resulting resource benefits are factored directly into utility energy resource decision making about investing in new resources and operating existing systems.
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Defining efficiency as a resource and integrating it into utility decision making is especially critical because of the clear resource cost advantage of energy efficiency. Energy savings from customer energy efficiency programs are typically achieved at 1/3 the cost of new generation resources. Efficiency programs can also reduce the need to install, upgrade or replace transmission and distribution equipment.
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