Energy efficiency is a commonsense first step in realizing renewable energy targets. It’s also a critical component of an effective climate change adaptation and mitigation strategy. Energy efficient buildings, lighting, heating systems and appliances provide the same level of service as less efficient ones, but use less energy.
Energy efficiency is typically the least expensive, most cost-effective and quickest energy improvement that can be made, and it should be the very first thing done when looking at cost-savings opportunities within a community energy system. Efficiency translates to saved energy and money, and it creates a strong foundation for renewable energy. For these reasons, the Alaska Energy Authority’s Alaska Energy Efficiency Partnership, a working group of over 50 organizational members from the public, private and nonprofit sectors, is guided by a vision that Alaska can be the most energy efficient state in the nation.
Each year, Alaska’s residential and commercial sectors use an estimated 118 trillion BTUs of energy for power and space heat.
Of this, approximately 45 percent is used in residential buildings and 55 percent is used in public and private commercial buildings/facilities. Reducing building energy use by 15 percent would save nearly 18 trillion BTUs annually. At $2 per gallon for diesel fuel, a 15-percent energy efficiency improvement in residential, commercial and public buildings could save $260 million each year.
Alaska has had great success with energy efficiency programs over the last decade. In the residential sector, Alaska Housing Finance Corporation (AHFC) has led the way with Low Income Weatherization and Home Energy Rebate Programs. Between 2008 and 2018, these two programs provided efficiency improvements to more than 50,000 households across Alaska, resulting in an average energy savings of 30 percent, the creation of more than 4,000 jobs, and an estimated $56 million in energy savings to Alaska households per year.
A 15% energy efficiency improvement in residential, commercial and public buildings could save $260 million each year.
AEA administered two programs for the nonresidential building sector. Between 2006 and 2016, AEA’s Village Energy Efficiency Program (VEEP) implemented efficiency measures in public buildings and facilities in nearly 150 communities throughout rural Alaska. Since 2011, AEA’s Commercial Building Energy Audit (CBEA) program has provided rebates for more than 230 privately owned, non-residential buildings in both urban and rural communities throughout the state.
Finally, the Alaska Department of Transportation and Public Facilities works to improve the efficiency of State of Alaska buildings and facilities through its Energy Program office. Between 2010 and 2019, DOT&PF’s Energy Program facilitated efficiency improvements to over 25 percent of state-owned facilities, achieving a cumulative annual cost avoidance of more than $3.4 million.
The most important path forward for energy efficiency efforts in Alaska is working with homeowners, business owners, facility managers, regional organizations, lending institutions, policymakers and others to develop appropriate policies and effective, accessible tools to finance building efficiency projects.
With the right policies and tools in place, efficiency projects can be cash flow positive from day one, allowing for the payment of project costs simply through the savings generated each month. Commercial Property-Assessed Clean Energy (C-PACE), utility on-bill financing and the establishment of a green bank are policy and tools under development and/or consideration that if utilized, could put Alaska on the path to being one of the most energy efficient states in the nation.
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