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AEEI on Industrial Energy Efficiency: Unleashing an Economic Driver for Pennsylvania

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Philadelphia, June 23, 2016 — Today, Advanced Energy Economy Institute (AEE Institute) and its affiliated state partner, the Keystone Energy Efficiency Alliance (KEEA), convened a discussion with utility, advanced energy, and thought leaders, along with city officials, about opportunities and challenges for the industrial energy efficiency sector in Philadelphia and across Pennsylvania. The Industrial Energy Efficiency Roundtable was held at a conference center in Philadelphia.

“As cities, regions, and states plan for the transformation to a 21st Century Electricity System, it is important to discuss the opportunities and challenges of integrating advanced energy technology, such as industrial efficiency, to get more value out of the energy we use,” said Dylan Reed, Associate, State and Federal Policy, Advanced Energy Economy (AEE), a national business group affiliated with AEE Institute. “Collaborative efforts like today’s discussion allow for Philadelphia and cities across the Commonwealth to lead the next wave of innovation in the energy sector — and benefit from savings, growth, and economic competitiveness.”

The industrial sector is the largest user of energy, representing 34 percent of total electricity usage in Pennsylvania. Various technologies and services can make the use of energy in industry more efficient. These include upgrades in motors, drives, and other equipment; industrial energy management systems, which analyze and manage energy consumption data within a production facility; demand response (DR), which pays industrial electricity users to curtail energy use during periods of peak system demand; and combined heat and power (CHP), which produces both electricity and useful heat from the same fuel, either onsite or through CHP-powered district energy systems. A statewide evaluation estimated that Pennsylvania could easily achieve 3 percent to 6 percent savings from the industrial sector by 2020 if the right policies are in place.

“Industrial efficiency can play a critical role for all of Pennsylvania to bring savings to both businesses and consumers at large, while driving economic growth at the local and state level,” said Matt Elliott, Executive Director of KEEA. “Programs like Act 129 have already saved consumers billions of dollars, and will continue to do so as we move into Phase III of its implementation. We commend today’s participants for coming together to identify the opportunities and ways to reduce barriers to drive further investment in energy efficiency that pays off for years to come.”

AEE Institute and KEEA brought together business, government, and academic leaders to discuss opportunities to capitalize on innovative technologies that save energy for industrial users and the policy changes that would help. The discussion highlighted projects completed by energy service companies in Pennsylvania, which have helped industrial customers make their facilities more efficient and competitive. Additionally, participants learned about technologies available to the industrial sector to increase their competitiveness through efficiency measures. The group also highlighted opportunities and challenges surrounding the industrial efficiency sector, including: identifying financing tools, adapting the utility business model to create appropriate incentives, educating energy users about and building awareness of the impact of efficiency; and providing customers more access to their energy data.

“In Philadelphia, we literally fuel the city’s schools, hospitals, hotels, and industrial facilities with our high-efficiency district energy system, which runs primarily on combined heat and power (CHP),” said Elinor Haider, VP of Public Affairs for Veolia North America, an AEE member company. “CHP is a reliable, cost effective, and resilient energy source with significant industrial and manufacturing applications throughout in the region.”

Pennsylvania continues to make significant progress in energy efficiency, particularly through Act 129 – the state’s mandated energy efficiency program, overseen by the Pennsylvania Public Utility Commission. Through Phase I and II of Act 129, energy efficiency has brought approximately $8.3 billion in savings to customers. Phase III begins this month, and is expected to bring even more savings to customers, based on the final PUC order issued June 11, 2015. These efforts are also driving economic activity: Pennsylvania is home to 4,000 companies involved in advanced energy and energy efficiency that employ 50,000 people.

“Energy efficiency is a low-cost resource for meeting the Commonwealth’s energy needs. It provides benefits to energy consumers and employs thousands of Pennsylvanians in the manufacturing and installation of the products while saving Pennsylvania’s largest companies thousands in energy costs. We hope that today’s conversation will open a dialogue between the region’s utilities, large energy consumers, and the companies that provide these valuable energy efficiency services,” concluded Reed.

For more information on the role and size of the energy efficiency sector in the United States, download Advanced Energy Economy’s Advanced Energy Now 2016 Market Report. To learn more about various energy efficiency technologies, download This Is Advanced Energy, a comprehensive industry directory with descriptions, photos and case study examples. 

About Advanced Energy Economy and AEE Institute
The Advanced Energy Economy Institute is a 501 (c)(3) charitable organization whose mission is to raise awareness of the public benefits and opportunities of advanced energy. AEE Institute provides critical data to drive the policy discussion on key issues through commissioned research and reports, data aggregation and analytic tools. AEE Institute also provides a forum where leaders can address energy challenges and opportunities facing the United States. AEE Institute is affiliated with Advanced Energy Economy (AEE), a 501(c)(6) business association, whose purpose is to advance and promote the common business interests of its members and the advanced energy industry as a whole. AEE and its State and Regional Partner organizations are active in 26 states across the country, representing more than 1,000 companies and organizations in the advanced energy industry. Visit AEE Institute at https://www.aee.net/aeei and AEE online at https://www.aee.net/.

About Keystone Energy Efficiency Alliance
The Keystone Energy Efficiency Alliance (KEEA) is a non-profit, tax-exempt 501(c)(6) corporation dedicated to promoting the energy efficiency and renewable energy industries in Pennsylvania. KEEA advocates on behalf of energy efficiency and renewable energy professionals on the local, state, and federal levels. By representing the interests of the clean energy industry in Pennsylvania, KEEA is growing the market for energy efficiency and helping the Keystone State secure a prosperous, sustainable tomorrow. Visit KEEA online at https://www.energywisepa.org/

Media Contact:

Monique Hanis
Director, Media Relations & Publications
Advanced Energy Economy
The business voice of advanced energy

1000 Vermont Ave., N.W., Third Floor, Washington, D.C. 20005
202-391-0884 | mhanis@aee.net | www.AEE.net | @AEEnet @GreenerMonique