LANSING – The most cost effective
way to meet new federal power plant emissions standards is to use energy more
efficiently, a report released Thursday said.
The Institute for Energy Innovation
said the value of moving to cogeneration of renewable power would depend
largely on the cost of natural gas.
The report, using the State Tool for
Electricity Emissions Reduction, found the state could reduce energy demand by
up to 20 percent using various efficiency efforts. Implementing the plans would
cost utilities $596 million, but would net customers $811 million in savings.
“Simply implementing the
achievable energy efficiency potential would reduce load by 11 percent and
generate $96 million in net savings,” the report said.
In addition to savings through home
and business efficiencies, the report said there are $96 million in potential
savings from making the power network more efficient.
If more generation is needed, the
report said natural gas is currently the most cost effective source, projected
increasing prices would make cogeneration and renewable power more cost
effective.
The group recommended taking the cap
off energy efficiency investments and having the Public Service Commission
mandate implementing cost effective measures.
It also recommended making it more
attractive for industry to use combined heating and power generation systems
that it said are currently blocked by stand-by charges and interconnection
difficulties imposed by utilities.
But the report also called for
continued efforts to increase renewable power either through the renewable
portfolio standard or through incorporating hedge values in utility rate plans.
This report was published by Gongwer News Service. To subscribe,
click on www.gongwer.com
