Clean Energy News

Report Shows New Jersey’s Vast Energy Efficiency Potential

As the new home of NJPIRG's environmental work, Environment New Jersey can be contacted regarding this news release.

TRENTON— Over the last decade, New Jersey’s energy needs have grown three times faster than the state’s population and future growth is expected to continue to rise steeply in coming years. This runaway need for energy can be controlled through energy efficiency measures, said a new report, “On the Road to Energy Independence: Controlling New Jersey’s Runaway Energy Demand Through Energy Efficiency,” released by the New Jersey Public Interest Research Group (NJPIRG) on February 7.

“New Jersey’s ever growing energy demand has us on a collision course with our energy problems. Fortunately, energy efficiency can practically halt growing energy demand over the next fifteen years,” said Adam Garber, Clean Energy Advocate for NJPIRG. “Without a serious effort to reduce our energy demand, we are doomed to grow more deeply dependent on fossil fuels to our increasing detriment.”

According to the new report, the state’s rampant increase in energy demand is not expected to slow anytime soon. Electricity demand by New Jersey ratepayers is expected to grow by 29% by 2020 and natural gas demand is expected to increase by 9%.

The report finds that major energy savings are possible in New Jersey, and recommends the state increase funding for its energy efficiency program, update building codes and increase appliance efficiency standards. These measures, it says, would cut energy use by 10% of projected demand in 2020. This is the equivalent of powering 1.5 million homes. The report also finds that 9% of the increased demand for electricity and 1% of increased demand for natural gas will be cut by current energy efficiency programs and recently adopted standards.

If we continue along the current route, New Jersey’s dependence on fossil fuels will only deepen. This dependence has already destabilized fossil fuel prices during the recent hurricanes, leading to higher electricity, heating, and gasoline rates. This winter, New Jersey ratepayers paid over $1 billion in winter heating increases over last year, straining household, business and government budgets statewide.

Energy efficiency success stories are easy to find in New Jersey and around the nation. The College of New Jersey has used energy efficiency and cogeneration of heat and electricity to control their growing energy needs. While the campus has more than doubled in size over the last five years, they have only increased the pollution they generate by 3%.

“The College of New Jersey has invested in energy efficiency to decrease our
reliance on fossil fuels and create a more stable financial model,” said Joe Sullivan, TCNJ’s Director of Facilities. “Doing the same thing for the state would have a significant positive impact for consumers, businesses and public entities like schools.”

California too has successfully realized more of its potential for efficiency, proving that energy efficiency measures are easy to implement, if the state makes them a priority. During California’s 2000-2001 energy crisis, California experienced periodic rolling blackouts. Within six months of launching a serious energy efficiency initiative, the state had achieved a 10 percent reduction in peak summer demand and a 6.7 percent reduction in total electricity demand.

"Energy efficiency is a win-win for the environment and the economy," said Jennifer Senick, Center for Energy, Economic and Environmental Policy. "Many states, including California and New York, have used stronger building standards to reduce energy demand."

In fact, New Jersey has already instituted some energy efficiency measures that have been cheap and effective. New Jersey’s current Clean Energy Program has paid 2.4 cents for each kilowatt-hour of energy saved, while it costs 9 cents on average to produce and deliver a kilowatt-hour of energy. Energy efficiency also relieves strain on our electricity grid by cutting peak-hour usage. This results in lower electricity prices for all ratepayers. For example, a 1.9% nationwide reduction in natural gas demand would decrease the price of natural gas by 20%, according to the leading efficiency experts at the American Council for an Energy Efficient Economy.

In the end, energy efficiency provides one piece of a solution to New Jersey’s energy problems. But it is an important piece, which up until now has been largely untapped.

“New Jersey has barely begun to scratch the surface when comes to mining the ample common sense opportunities that exist to reduce energy use in the state,” said Dena Mottola, NJPIRG Executive Director. Mottola co-chaired the Energy Policy Group for Governor Corzine during the transition and sits on the New Jersey Board of Public Utility’s Clean Energy Council, which advises the Board on its energy efficiency and renewable energy programs.

Governor Corzine made a large commitment to making New Jersey a model of energy independence through energy efficiency during his gubernatorial campaign. He called for a 20% reduction in energy demand by 2020, and outlined a multi-part approach to ensuring the state reached that goal.

“Right now our energy system is like a runaway horse,” continued Garber. “If we’re going to regain control and steer the state towards a stable energy system, we must grab the reins of our energy system and slow it down by doing more with less energy.”