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Current US Energy Situation and How CHP Can Help Changing energy markets and climate change policies are driving greater interest in energy efficiency and clean energy technologies. In recent years, the United States has seen record or near-record high prices in electricity, coal, natural gas, and petroleum. Consumers, especially energy-intensive businesses, industries, and institutions are feeling the pinch of these prices. Businesses can not afford to absorb these higher costs and are passing them on to consumers. The increased costs of goods and services are negatively affecting the US and world economies. US businesses and industry have struggled to maintain profitability in an environment where uncertainty of supply, uncertainty of availability, and risk are now the norm. Most analysts believe this pattern will hold for an extended period and that cheap energy is a thing of the past. In addition to the economic concerns resulting from the current energy situation, there is a global drive to limit emissions of CO2, primarily from the burning of fossil fuels, to curb climate change. The United States, while accounting for just 5 percent of the world’s population, consumes nearly 25 percent of the world’s energy. This disproportionate fuel demand is a reflection of the country’s poor energy productivity—the lowest of any developed economy in the world.6 EnerEgnyerPgryoPdruocdtuicvtiitvyit(yBBilililoion Reall $GGDDPP/Q/BQTBUTU) Japan NW Europe US China Middle East Global 229 138 112 (Source: McKinsey & Company) The United States has experienced and overcome energy crises in the past. However, the current energy situation will not lend itself to remedy through simple supply-side measures and short-term conservation as in the 1970s, when increased petroleum supplies quickly reduced consumer price pressures. There are several differences today that require more comprehensive solutions. The following issues are shaping the US energy landscape: • Growing energy demand • Constraints on traditional energy supply and delivery • Global competition • Climate change concerns • Need for infrastructure modernization • Security concerns 32 30 79 6 “Energy productivity” refers to the amount of economic output produced per amount of total economy-wide fuel input. Combined Heat & Power: Effective Energy Solutions for a Sustainable Future 7 CHP is a realistic, near-term option for energy efficiency improvements and significant CO2 reductions that simul- taneously spurs business investment and job creation.PDF Image | COMBINED HEAT AND POWER
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