EAP 1995 Annual Report
Introduction



This year the role of energy technology research and analysis supporting governmental and public interests is again being challenged at high levels of government. This situation is not unlike that of the early 1980s, when the Administration questioned the relevance of a federal commitment to applied energy research, especially for energy efficiency and renewable energy technologies. Then Congress continued to support such activities, deeming them important to the nation's interest. Today, Congress itself is challenging many facets of the federal role in energy. The Administration is also selectively reducing its support, primarily for the pragmatic objective of reducing federal expenditures, rather than because of principles opposing a public role in energy. In this climate it is useful to look at the numerous activities of the Energy Analysis Program to reassess how they still relate to the national interest.

Our largest activity, with more than 30 staff members under the direction of James McMahon and Isaac Turiel, is performing engineering and economic analysis on appliance energy efficiency standards-an effort we have led for the U.S. Department of Energy for the past 15 years. We estimate that the appliance standards already implemented will cut energy demand by one quad per year by the end of the decade, a savings on the order of $10 billion per year. They will also reduce the need for more than forty 500-MW power plants. Additional standards under consideration would yield even greater benefits.

Another of our research areas is utility planning and policy. A tremendous array of public policy issues-from transmission pricing to the role of utility demand-side management and public goods R&D in a restructured industry-have emerged as the utility industry enters a new era that is redefining the industry itself. Utility regulatory commissions often do not have the resources to research these issues. Furthermore, many of these issues are best addressed at the national level, especially the development of methodologies relying on quantitative models.

Our work on heat islands has invigorated a whole research area-assessment of the causes and mechanisms to mitigate urban heat islands-by demonstrating that reducing the trapping of heat in urban areas can be one of the most significant and cost-effective means of improving urban air quality as well as reducing energy use.

In the field of international energy demand, our multifaceted work continues: analyzing energy demand in developing countries (with special attention to China), Eastern Europe and the former Soviet Union, and the industrialized nations; supporting developing countries on greenhouse gas mitigation; and fostering programs to support activities implemented jointly between the U.S. and developing countries to reduce greenhouse gas emissions.

Federal procurement and market-conditioning policies are two more of the Program's activities. Working with our Washington, D.C. colleagues, we are leading efforts to encourage federal offices to purchase energy-efficient equipment.

In light of uncertain political support for appliance standards and utility analyses as well as the tremendous downward pressure on federal budgets to assist or work with developing countries, we have established new initiatives and thrusts for the Program to pursue. These initiatives all build on the work that we now do and extend the work into new areas. We have chosen the following six initiatives as our initial thrust:

We are also exploring four other major new initiatives: As noted, these initiatives build on our work of the past decades, which we continue to stress. We are eager to work with professional colleagues on these initiatives. At this time, more than ever, excellent professional collaborations are needed to address problems of national importance. Inquiries about the initiatives can be made by sending e-mail to us at eap.initiative@lbl.gov. This year, we have divided the Annual Report of the Energy Analysis Program into three sections, corresponding to the three major thrusts of the Program. These are "International Energy and the Global Environment," "Energy Economics, Markets, and Policy," and "Buildings and Their Environment." A description of our activities over the past year is presented in the following pages.



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