Energy conservation: has its time come, again?

Since the first global "energy crisis" of the 1970s, when high prices and perceived shortages shocked the North American public, conservation has been proposed as a key component of solving the energy problem.

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Every few years, energy conservation seems to come and go out of fashion. But dramatic increases in energy prices, increasing demand, apparent limits to supply, and environmental concerns all argue for a strong role for conservation in the energy equation.

Even from a purely economic viewpoint, conservation makes a lot of sense. Saskatchewan's consumer energy bill is currently around $4.25 billion to $4.5 billion per year, more than the provincial budget for health and education combined. With a minimal investment, implementing energy efficiency initiatives and practices, like upgrading light bulbs and appliances, and maintaining equipment for optimal performance, can reduce the expenses of running a home or business.

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Saskatchewan's Office of Energy Conservation (OEC), announced in September of 2002, was established by the province to help develop and implement cost-effective conservation initiatives. SaskPower, SaskEnergy and Saskatchewan Industry and Resources provided funding for the OEC.

Although the OEC has just completed its first full year of operation, the results are already impressive.

The PST rebate on Energy Star appliances, a program that was announced jointly by the OEC and Saskatchewan Finance at the start of 2004, has been very popular with consumers. More than 5,000 rebates on energy efficient refrigerators, freezers, dishwashers and washing machines have already been paid to taxpayers. This measure is saving consumers about $100,000 annually on energy bills, reducing greenhouse gas emissions by 1,350 tonnes and boosting retail business.

While the PST rebate received a lot of attention, some other programs launched by the OEC will likely have larger impacts.

For example, a new provincial government policy requires all new buildings with 30 per cent or more government funding to meet design standards 25 per cent more efficient than the Model National Energy Code for Buildings (1997). This means that a new 5,000-square-metre school that meets these standards would save an estimated $44,500 in energy costs every year and reduce greenhouse gas emissions by 450 to 565 tonnes. Fifteen new projects are projected under this initiative over the next two years.

Another initiative to help rural municipalities is a pilot project on Municipal Energy Efficient Lighting. The municipalities involved in this project will take advantage of the buying power of the Saskatchewan Property Management Corporation to purchase energy efficient fluorescent lights and ballasts.

The current energy cost of operating a standard four-foot, two-bulb florescent fixture during normal office hours for a year is about $15. An upgraded fixture would cost less than $9 to operate and give better light. Using mass purchasing, pay-back time for the municipalities will be reduced from 36 months to just 21 months. Preliminary results indicate energy savings will be $2,500 per year for the pilot buildings, with emissions reductions of 35 tonnes.

OEC is also involved with the federal government, SaskEnergy and the Saskatchewan Home-builders' Association in the R-2000 New Home Program. R-2000 homes are designed for energy efficiency.

The first year of a business plan, with a long-term goal of 10 per cent of all new housing starts meeting R-2000 standards, has been completed. Targets for enrollment have been exceeded and for the first time Saskatchewan leads the country in the percentage of new single family housing starts enrolled (3.27%) and certified (2.6%) to R-2000 levels.

One emerging opportunity for the R-2000 program is to increase the number of homes using high efficiency motors in heating systems. Estimated electrical cost saving per customer per year is approximately $178, with an emissions reduction of up to 2.5 tonnes.

The recent rise in energy costs has refocused attention on energy demand and conservation. No one OEC program can solve the energy problem, but each plays its part in the solution.

Fortunately, all the measures developed and undertaken are cost-effective, making conservation good sense from the perspective of companies, governments and homeowners.

Grant McVicar is the Director of the Saskatchewan Office of Energy Conservation.