Energy efficiency must be an integral component of a comprehensive, national energy strategy that addressees the supply and demand for energy in a balanced set of policies. Through improvements in energy efficiency, the United States can reduce its reliance on imported energy sources, enhance international competitiveness, reduce costs and mitigate the environmental impacts of energy use. The use of energy efficient products and processes will yield additional benefits to our national energy production and delivery infrastructure by increasing the productive activities that existing and new assets can support.

Significant improvements in energy efficiency can be made by implementing currently available and cost-effective technologies and processes. As the demand for energy continues to grow, new energy efficient technologies can play an increasingly important role in moderating the growth in new energy resources needed to meet that demand.

IEEE-USA recommends that the U.S. government promote aggressive research, development, commercialization, and utilization of energy efficient technologies and processes. IEEE-USA supports programs that will help to reduce waste and increase the efficient use of energy by:

• Increasing user awareness of economical energy efficient opportunities; · 
• Providing incentives for capital investment in energy efficient technologies and processes in all sectors;
• Developing technologies to further reduce energy losses in power generation, power delivery and electric power conversion systems;
• Improving direct combustion processes to increase efficiency and reduce pollutants;
• Improving and upgrading industrial processes to reduce energy consumption per unit, while optimizing process performance and reducing maintenance costs;
• Reducing energy consumption in the residential and commercial sectors;
• Upgrading transportation systems to lower energy consumption per passenger mile and cargo-ton mile;
• Using communications and information technology systems to reduce the need for traveling;
• Employing information technology systems to increase the efficiency of energy using-processes;
• Improving energy storage and other demand management techniques; and
• Implementing maintenance and repair technologies that ensure product quality and process reliability and efficiency.

This statement was developed by the Energy Policy Committee of the IEEE-United States of America (IEEE-USA), and represents the considered judgment of a group of U.S. IEEE members with expertise in the subject field. IEEE-USA is an organizational unit of the Institute of Electrical and Electronics Engineers, Inc., created in 1973 to promote the careers and public policy interests of the more than 230,000 electrical, electronics, computer and software engineers who are U.S. members.

BACKGROUND

Purpose of Energy Efficiency

Through the proper application of energy efficient technologies and processes, the United States will have greater resources available to compete in the global market while reducing environmental impacts and increasing energy security. Many energy efficient technologies have the additional benefit of optimizing processes and decreasing maintenance costs. Reduction of energy requirements will also help maintain reasonable energy costs. Energy efficiency presents a mutually beneficial situation for all areas within the energy supply and delivery system.

Energy User Awareness and Incentives

IEEE-USA recommends user awareness programs sponsored by government, utilities and organizations. Existing programs, such as "Motor Challenge Energy Star," have been very successful in improving energy user recognition and capital investment in energy efficient technologies. Education, training and financial incentives have produced similar results in many areas. These programs have helped users realize the benefits and cost effectiveness of energy efficient technologies and processes.

Generation, Delivery, Conversion

Electric power losses due to power generation and delivery are small compared to power requirements for the rest of the electrical system. However, we highly encourage improvements in existing technologies that would reduce the existing losses and increase reliability. Additionally, good power quality is necessary to get the appropriate results from most end-use energy efficient systems.

Power conversion processes, such as accomplished by electric motor systems, consume the largest share of electrical energy and provide one of the largest opportunities for energy efficiency. Presently, motor systems consume more than 57 percent of all electric power generated, and 20 percent of all energy that the United States consumes. A tremendous opportunity for energy savings exists through the proper cycling, operation and control of electric motor systems and loads. Present regulation, and legislation such as the Energy Policy Act of 1992, recognize this opportunity and have set time limits on implementing energy efficient power conversion.

Industrial Processes

In the industrial sector, proper evaluation of energy efficient systems is especially important. Productivity, quality, cost, and energy must be considered for energy efficient opportunities. Four basic opportunities are present for energy savings:

• Electric motor efficiency improvement. Replacing older, less efficient motors with new, high-efficiency motors will typically improve efficiency by three to eight percent. This type of change-out can achieve an estimated 18 percent of the total electric system savings opportunity in the industrial sector.
• Plant electrical distribution correction. Unbalanced, three-phase electrical supplies, harmonic distortion, and improperly sized distribution equipment waste electrical energy. When this part of the system is corrected or upgraded, it can represent as much as eight percent of the overall opportunity for improvement.
• Improved motor-drive/mechanical system matching can account for 41 percent of potential energy savings. This opportunity may be accomplished through the use of electronic variable frequency drives and load cycling.
• Process optimization can account for 33 percent of potential energy savings, using equipment or processes that require less motor shaft power.

In the industrial sector, the best method for energy efficiency is to take a holistic approach. It is essential to view the effects of changes to one system on associated systems.

Commercial and Residential 

Energy efficiency programs in the commercial and residential sectors are strongly recommended. Areas of opportunity include, but are not limited to: