Avoided Energy Supply Costs in New England
Synapse and a team of subcontractors developed projections of electricity and natural gas costs that would be avoided due to reductions in electricity and natural gas use resulting from improvements in energy efficiency. The 2013 report provides projections of avoided costs of electricity and natural gas by year from 2014 through 2028 with extrapolated values for another 15 years. In addition to projecting the costs of energy and capacity avoided directly by program participants, the report provides estimates of the Demand Reduction Induced Price Effect (DRIPE) of efficiency programs on wholesale market prices for electric energy, electric capacity, and natural gas. The report also provides a projection of non-embedded environmental costs associated with emissions of CO2. The 2013 AESC study was sponsored by a group representing all of the major electric and gas utilities in New England as well as efficiency program administrators, energy offices, regulators, and advocates. Synapse conducted prior AESC studies in 2007, 2009, and 2011. We are currently conducting the 2018 study.