As the seasons change, so do our energy requirements. Typically, natural gas consumption drops in the summer months as warmer temperatures negate the need for in-home heating, but electricity usage increases as people use their air conditioners more[1]. When winter hits, the peaks and valleys of gas and electricity consumption grow larger, putting a strain on the energy grid[2].
The Coronavirus pandemic had a cumulative impact on the energy sector in 2020, both in terms of supply and demand. For supply, there was a reduction in clean energy technology investment[3],coupled with a 20% reduction in monthly electricity demand during the USA’s Coronavirus lock-down[4]. Proportionately, this increased the share of renewable energy supply[5]while decreasing the demand for coal[6]and gas[7]-based energy generation.
This, at least temporarily, reduced global consumption of fossil fuels[8]. On the other hand, renewable energy utilization increased, maximizing the energy efficiency benefits of renewable technology. First, the levelized cost of US renewable energy from wind reached a maximum of $54/MWh per Lazard’s 2019 annual Levelized Cost of Energy Analysis (LCOE 13.0)[9]. This is cheaper than even the minimum levelized cost of coal at $66/MWh, or the maximum of $152/MWh[10],which should theoretically reduce energy prices over time. Building on the secost efficiency improvements, reductions in coal consumption directly impactCO2 emissions. According to the EIA, coal contributed 60% of greenhouse gas emissions (GHGs) across the US power sector in 2019[11]. Non-fossil,or renewable sources generated such negligible quantities of GHGs in comparison that they are absent from the info-graphic chart[12].
The Seasonal Role of Businesses with Energy Efficiency
Enterprises have an essential role to play post-COVID. As energy consumption increases,fossil fuel plants will resume operations and proportionately erode renewable utilization. This has already happened, with CO2 GHG emissions already nearing their pre-lockdown peak[13].
In light of this news, Indra Energy encourages enterprises to take steps to improve their seasonal energy efficiency, which may include:
- Energy Audits – Enterprises are operated from many different types of buildings, both new and old. An energy audit will help enterprises determine their baseline energy usage and include analysis of a building’s energy efficiency[14]. This will give enterprises insight into their energy consumption, alongside the energy efficiency of their facilities and machinery, enabling them to make positive steps towards being more energy efficient during the winter months.
- Renewable Electricity and Natural Gas Carbon Offset Plans – Businesses can improve their energy efficiency by shopping for renewable energy plans. Indra Energy is an energy service company (ESCO) that passionately promotes renewable technologies. By opting for a renewable energy plan, businesses can move to a fixed-rate or variable-rate plan that includes energy from renewable sources such as wind, solar, and hydroelectric. As discussed earlier, these energy sources significantly reduce CO2 emissions[15] and provide a cheaper source of renewable energy[16]. This helps enterprises indirectly improve their energy efficiency impact.
- Apply for and Contribute through Feed-In Tariffs – Currently, only six states across the US have mandatory feed-in tariffs, but FIT is growing in popularity. FITs promote renewable energy microgeneration[17], something businesses can do efficiently thanks to ample roof space on warehouses and office buildings. In New York, an excellent example of FIT is the Community Solar NY project[18]. Some enterprises can also take a low-interest loan of up to $100k to install solar capacity[19]. This directly increases renewable electricity generation and has the added benefit of reducing utility costs for enterprises by $10k-$30k over the installation’s lifetime[20].
Be IndraEnergy Efficient
Indra Energy is a renewable electricity and natural gas supplier for businesses across industries that want to effectively manage their energy costs while proactively reducing their carbon footprint.
To learn more about Indra Energy, please visit HERE.
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i The information provided in this blog is for illustrative purposes only. Indra Energy (“Indra”)is not making any service offerings or guaranteeing any results. Indra makes no warranties (express or implied) and/or representations regarding the accuracy,reliability or completeness of the information presented, and is not responsible for any omissions, errors or mistakes in the information provided in this blog; sources have been cited herein for reference.
Indra Energy is a licensed independent seller of electric power and/or energy service in the States of Delaware (License Number16-0929); District of Columbia (natural gas supply service (GA 2016-05) and electric supply service (EA 2016-16); Illinois (License number 12-0269); Massachusetts (License Number CS-092); Maryland natural gas supply service(IR-1803) and electric supply service (IR-1804); New Jersey (license numbers are GSL-0033 (Natural Gas) and ESL-0049 (Electric); and Virginia (License Number G-49). Please visit Indra Energy’s website for Terms and Conditions of Service and product offerings, and Environmental Disclosure for details on fuel resource mix in your state.
[1] https://www.eia.gov/todayinenergy/detail.php?id=10211
[2] https://www.eia.gov/todayinenergy/detail.php?id=42815
[3] https://www.iea.org/articles/the-impact-of-the-covid-19-crisis-on-clean-energy-progress
[4] https://www.iea.org/reports/the-covid-19-crisis-and-clean-energy-progress/power#abstract
[5] https://www.iea.org/reports/the-covid-19-crisis-and-clean-energy-progress/power#abstract – (Global generation shares from coal andlow-carbon sources, 1971-2020)
[6] https://www.iea.org/reports/coal-fired-power
[7] https://www.iea.org/reports/global-energy-review-2020/natural-gas#abstract
[8] https://www.iea.org/reports/global-energy-review-2020
[9] https://www.lazard.com/perspective/lcoe2019 (Levelized Cost of Energy Analysis (LCOE13.0) – Wind)
[10] https://www.lazard.com/perspective/lcoe2019 (Levelized Cost of Energy Analysis (LCOE13.0) – Coal)
[11] https://www.eia.gov/energyexplained/energy-and-the-environment/where-greenhouse-gases-come-from.php
[12] https://www.eia.gov/energyexplained/energy-and-the-environment/where-greenhouse-gases-come-from.php
[13] https://www.icos-cp.eu/gcp-covid19 – (image – https://www.icos-cp.eu/sites/default/files/inline-images/figure4.png)
[14] https://www.energy.gov/energysaver/home-energy-audits/professional-home-energy-audits
[15] https://www.eia.gov/energyexplained/energy-and-the-environment/where-greenhouse-gases-come-from.php
[16] https://www.lazard.com/perspective/lcoe2019 (Levelized Cost of Energy Analysis (LCOE13.0) – Wind)
[17] https://www.eia.gov/todayinenergy/detail.php?id=11471#:~:text=May%2030%2C%202013-,Feed%2Din%20tariff%3A%20A%20policy%20tool%20encouraging,deployment%20of%20renewable%20electricity%20technologies&text=Participants%20will%20receive%2015%20cents,all%20electricity%20that%20they%20consume.
[18] https://www.nyserda.ny.gov/All-Programs/Programs/NY-Sun/Solar-for-Your-Home/Community-Solar
[19] https://www.nrel.gov/solar/rps/ny.html – (State Incentive Programs)
