Energy Strategy Includes Power Reductions

EPA’s experience, through its interactions with U.S. companies, is that many are initiating energy programs. For companies operating formal energy programs, these programs are typically less than 5 years old.

Market trends suggest that the demand for energy resources will rise dramatically over the next 25 years:

• Global demand for all energy sources is forecast to grow by 57% over the next 25 years.
• U.S. demand for all types of energy is expected to increase by 31% within 25 years.
• By 2030, 56% of the world’s energy use will be in Asia.
• Electricity demand in the U.S. will grow by at least 40% by 2032.
• New power generation equal to nearly 300 (1,000MW) power plants will be needed to meet electricity demand by 2030.
• Currently, 50% of U.S. electrical generation relies on coal, a fossil fuel; while 85% of U.S. greenhouse gas emissions result from energy-consuming activities supported by fossil fuels.

Sources: Annual Energy Outlook (DOE/EIA-0383(2007)), International Energy Outlook 2007 (DOE/EIA-0484(2007), Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2005 (April 2007) (EPA 430-R-07-002)

If energy prices also rise dramatically due to increased demand and constrained supply, business impacts could include:

• Reduced profits due to high operating costs.
• Decline of sales of energy-using products.
• Loss of competitiveness in energy intensive businesses.
• Disruptions in supply chains as suppliers are unable to meet cost obligations or go bankrupt.