The Oil Drum

I am (somewhat) sceptical of the notion that we can control energy use by pricing alone. At least not any pricing that is politically in any way acceptable.

The reason being, when it is 90 degrees and humid in NYC, (which it is for 2 1/2 months of the year?), the air con goes on. The extra cost to *most* consumers is not enough to dissuade them.

Big industrial users have the control and incentive to pay attention to electricity bills. I can't see a department store shutting off its air con, nor Citicorp, nor the average affluent Manhattanite.

What one could do is make sure that the poorest consumers (old people, and low income) have the most modern air conditioners and appliances-- simply a better fridge will reduce cooling bills (a modern fridge uses 1/4 of the electricity of a 1970s fridge), let alone a better air conditioner (at least 40% more efficient). The same would go for programmes to encourage better insulation in apartment buildings.

Another scheme I like (a lot) is one which gives the utility the ability to shut off energy consuming appliances for specified periods. eg turn air conditioners and washing machines off at 5pm on a summer weekday for 30 minutes. This has huge benefits: the utility can shift demand into periods when it is not using 'peaking power', thus saving the grid from meltdown, and potentially at a significant savings in CO2 (NY has nuclear baseload power). Indeed with its 'rolling blackouts' I think California was more or less doing that.

The best approach seems to combine:

- a low electricity price for a 'minimum' amount of power, say enough for a 1 bedroom apartment over a normal year, heating and cooling. This to protect the retired, the low income etc. A much higher price for incremental power after that.

- possibly time of day metring, but Ontario Hydro is estimating over $400/ household to install that, so I don't think it is a matter of hurrying. Making sure each individual apartment unit has a metre might be a worthy task.

- active power management by the utility (as described above)

- new building codes which drive up overall energy efficiency. Similar building codes to major renovations. New York might simply announce, that except for historically listed buildings, *all* windows in, say, 2025, must meet a minimum standard of efficiency. This is within the replacement cycle of most buildings (I am guessing windows get replaced on average, every 35 years or so).

- programme to retire and replace old appliances (especially fridges and air con)