Maine businesses could save more than $450 million a year in energy costs by
adopting cost-effective efficiency measures, according to a report being
released this morning by university researchers.

These measures could help create between 1,500 and 2,500 jobs by 2020, the
report said, and boost the state’s gross domestic product between $170
million and $260 million, depending on energy prices.

The report was prepared for the Governor’s Energy Efficiency Summit, which
currently is under way at the Augusta Civic Center. It was compiled by
professors at the Muskie School for Public Service at the University of
Southern Maine and the Margaret Chase Smith Policy Center at the University
of Maine.

Underscoring the rising energy prices and economic stresses being
experienced today in Maine, the report said increased energy efficiency is
perhaps the single more effective action that businesses could take to be
more competitive. That’s because Maine’s economy is more energy-intensive
than economies in the other New England states, and that Maine pays more for
energy than many other states.

Energy efficiency isn’t a new idea for Maine businesses. But the report
noted several barriers that stand in the way of making greater progress.
Among them, the report said, is that many businesses aren’t aware of
opportunities to improve efficiency, the costs and benefits of doing so, and
how to finance the upgrades. Volatile energy prices also have made
efficiency appear to be a risky investment.

To overcome these obstacles, the report suggested a comprehensive assessment
of the economic potential for energy efficiency in Maine, and more money for
public-private partnerships, such as the state’s Efficiency Maine program,
to offer technical assistance.

Raising awareness and suggesting solutions is one of the motivations behind
today’s energy summit. The event will feature experts talking about how to
carry out and finance efficiency projects in a range of business settings.
An exposition staged by vendors will display available technologies and
services.

The report defines efficiency as a measure of output per unit input; a
compact fluorescent bulb can produce the same light for less energy than an
incandescent bulb, for example. Conservation is defined as decreased energy
use; installing programmable thermostats that automatically turn down heat
at night.

Other strategies include installing new boilers, water heaters and pipe
insulation, engineering heat recovery, adding insulation and new windows and
upgrading motors and computers.

Energy prices are a national concern, but the report highlighted the added
impact on Maine’s economy and the case for greater efficiency and
conservation in the business community. It noted, for instance, that the
commercial and industrial sectors account for half the state’s energy use.
And while industry has diversified its energy supply with hydro and biomass,
other sectors, notably transportation and commercial, are heavily dependent
on petroleum.

In calculating the benefits of efficiency and conservation to the Maine
economy, university researchers looked at past studies in Maine, Vermont,
Connecticut and Florida, and used an economic model to compute the
potential.

To see the energy efficiency report, click here.