Industrial Efficiency

Texas ranks first in the U.S. for industrial energy efficiency potential to reduce energy use and CO2 emissions. However, Texas, Oklahoma, and eleven other states currently allow industrial and some large businesses to opt out of participating in ratepayer-funded utility energy-efficiency incentive programs. SPEER continues to look for ways to provide resources to this sector and encourage investments in energy efficiency, process efficiency, clean energy, and water conservation.

Texas Industrial Energy Efficiency Network
SPEER has collaborated with the State Energy Conservation Office (SECO) and the Texas Industries of the Future (TIoF) to organize the various non-profit or public organizations that provide industrial energy technical, research, financial, or training assistance to this sector. SECO funded TIoF to inventory these programs, identify gaps in services, identify opportunities, and develop recommendations for addressing these. For information about these organizations and their services, see  Texas Industrial Energy Efficiency Network. 

Capturing the Benefits of Industrial Efficiency
In 2016, an industrial efficiency feasibility analysis was conducted for SPEER by the Texas A&M Energy Systems Laboratory (ESL). We found that a voluntary program to encourage reporting of energy efficiency by small to medium-sized industries could collectively save 3.1 million MWH of electricity and 3,460 MW of electricity demand. A major co-benefit associated with this energy savings is the opportunity to reduce NOX emissions in Texas by 750 metric tons annually (a precursor to ozone/smog), which is comparable to annual savings from the Texas Emissions Reduction Plan (TERP) programs. Broader implementation of such a program to include large industries could potentially save Texas 17,300 metric tons of NOX and 13.4 million tons of CO2 annually. Savings would be proportionally similar in Oklahoma, demonstrating significant potential impact across the South-Central region. Emissions Reductions Potential from Common Energy Efficiency Projects in Small to Medium-Sized Industries. 

In 2017, SPEER worked with ESL to develop the framework for a voluntary reporting mechanism for verified energy efficiency projects that are implemented by manufacturing or industrial customers in this region. Such a standardized tracking and verification system would allow leaders in industry to receive recognition for voluntary energy efficiency improvements they are undertaking, receive credit for contributing to the region’s efforts to improve air quality through energy efficiency, and encourage future investment by others. SPEER”s final report: Capturing the Multiple Benefits of Industrial Energy Efficiency.