EPA's 111(d) Clean Power Plan could increase energy efficiency impacts, net benefits, and total value

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EPA's 111(d) Clean Power Plan could increase energy efficiency impacts, net benefits, and total value
By David Pickles, William Prindle, Chris MacCracken, Steve Fine, and Philip Mihlmester
Vice President and Management Director, Distributed Grid Strategy + ICF Climate Center Senior Fellow

This ICF International white paper takes a novel, nationwide approach in estimating an overall impact on emissions and cost and sheds light on the role that energy efficiency can play as a compliance mechanism.

The release of the U.S. Environmental Protection Agency's (EPA) Clean Power Plan proposal starts the clock on what will be a multiyear process of review, analysis, planning, and implementation for states, affected sources, and other stakeholders. Depending on the outcome of this process and the methods by which states choose to comply, nationwide annual expenditures on utility energy efficiency programs could increase threefold, and the net electric system benefits from these programs could increase approximately 15 percent by 2030 solely due to their compliance value. These benefits would not only reduce the total cost of compliance but also reduce power prices. Inclusion of efficiency in Clean Power Plan compliance would make efficiency programs more cost effective and increase efficiency's risk management value to utilities.

This white paper examines these implications and discusses other key topics, including:

  • Background and timeline of EPA's Clean Power Plan
  • Building blocks to best system of emission reduction (BSER)
  • Quantifying the value of energy efficiency as a compliance mechanism
Meet the authors
  1. David Pickles, Senior Vice President: Strategy, Energy, Environment, and Infrastructure

    David has more than 30 years of experience advising clients on utility resource planning, energy efficiency, demand-side management, non-traditional product and service development, and operations of unregulated utility subsidiaries. View bio

  2. William Prindle, Bill Prindle - Vice President, Sustainable Energy and Climate + ICF Climate Center Senior Fellow

    With over 40 years of experience, Bill helps public and private clients assess, design, and implement clean energy and climate solutions. View bio

  3. Chris MacCracken, Vice President, Energy Advisory + ICF Climate Center Senior Fellow

    Chris is an energy policy expert with more than 25 years of experience helping public and private sector clients to understand the impacts of energy and environmental regulation on electricity markets. View bio

  4. Steve Fine, Vice President and Management Director, Distributed Grid Strategy + ICF Climate Center Senior Fellow

    Steve brings over 30 years of experience working at the confluence of energy, environment, and economics to evaluate and design workable solutions to our biggest energy challenges. View bio

  5. Philip Mihlmester, Executive Vice President, Global Energy

    With over 45 years of experience in the energy sector, Phil is a strategic advisor to senior industry and government executives specializing in policy, regulatory, and market analysis across the energy value chain. View bio