Study Finds Rich U.S. Energy-Efficiency Potential

The potential for energy-efficiency improvements throughout the U.S. economy is huge and entirely within reach if annual investments increase fivefold, according to a new McKinsey & Company report.

The global consulting firm estimates that $520 billion in investments would reduce U.S. non-transportation energy usage by 9.1 quadrillion BTUs by 2020 – roughly 23 percent of projected demand. As a result, the U.S. economy would save more than $1.2 trillion and avoid the release of some 1.1 gigatons of annual greenhouse gases, an amount equal to replacing 1,000 conventional 500-megawatt coal-fired power plants with renewable energy.

“There’s more potential for energy efficiency in this country than anywhere else in the world,” said Kenneth Ostrowski, a senior partner at McKinsey. “If we do nothing, we will waste $1.2 trillion.”

WorldWatch