ABSTRACT
The utility industry is deeply rooted in the need for traditional, controllable sources of capacity and energy such as long-term contracts or power plants. Increasing costs, regulatory encouragement, and concerns global warming have caused utility managers to consider demand-side activities. Effective energy efficiency programs can reduce a country's reliance on non-domestic energy sources, which can in turn improve national security and stabilize energy prices. The considerations-population growth, increased energy use per capita in developing countries, limited resources, increased costs associated with extracting and converting less accessible energy forms, national security, and environmental degradation-are all important considerations that point to the need for improved energy efficiency. A critical capacity situation provides a strong motive for interest in energy efficiency, especially if the region’s ability to build new capacity is limited.
