According to new research released by the U.S. Department of Energy’s (DOE) Lawrence Berkley National Laboratory on May 13, 2020, natural gas energy efficiency programs through utilities saved energy at a cost of about $0.40/therm (1 therm is equal to 100,000 Btu) from 2012 to 2017.[1] [2] Compared to natural gas—which averaged about $1/therm—energy efficiency programs are significantly cheaper. Researchers also found that commercial and industrial (C&I) programs had the lowest savings-weighted average cost of gas savings ($0.18/therm) during the study period. However, C&I programs represented only about 20% of overall efficiency program spending. For residential and low-income program savings costs were $0.43/therm and $1.47/therm, respectively. Savings costs varied widely by geographic region. For instance, savings in the Midwest averaged $0.29/therm while in the West saving averaged $0.59/therm. The study says this is likely due to higher spending on low-income programs in the West, as well as differences in savings opportunities between cold and temperate regions.

In response to the study, many efficiency advocates claim there are even more savings to be had through the electrification of end-uses, but the study did not consider this in their analysis. Additionally, efficiency advocates say the natural gas industry may be building unnecessary infrastructure; the Natural Resources Defense Council says around 90% of proposed gas power plants and their respective pipelines will likely be unnecessary by 2035.[3]

[1] https://emp.lbl.gov/news/energy-efficiency-continues-be-cheaper

[2] https://eta-publications.lbl.gov/sites/default/files/cose_natural_gas_final_report_20200513.pdf

[3] https://www.nrdc.org/experts/sheryl-carter/energy-efficiency-still-abundant-and-cheaper-gas