Economic Analysis of Ohio’s Renewable and Energy Efficiency Standards
May 30th, 2013
A report released last week shows that Ohio’s renewable energy and energy efficiency standards have saved Ohioans 1.4% on their electricity bills.
The Ohio Advanced Energy Economy Institute commissioned the report, and worked with The Center for Resilience at The Ohio State University to conduct economic modeling from 2008 (the year the energy standards were put into law) through 2012.
OSU used Dynamic Energy-Economy Policy Simulation (DEEPS), a modeling system developed for the State of Ohio in collaboration with the Consortium for Energy, Economics and the Environment at Ohio University, and in partnership with the former Ohio Department of Development, the Public Utilities Commission of Ohio and the Ohio Environmental Protection Agency.
The report shows that, as a result of increased power generation from renewable energy, electricity generation costs increased only an estimated 0.22% in 2011 and 0.54% in 2012. (There was zero change the two prior years.)
What’s more, investments in energy efficiency have more than offset the modest price increases—reducing electricity bills by 1.9% in 2012. Ohio’s energy standards generated investments of over $600 million in 2012.
The Institute will continue to work with OSU researchers to forecast the total economic development potential for both the renewable energy and energy efficiency standards through 2025.