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NAESCONAESCONational Association of Energy Service Companies

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National Association of Energy Service Companies

Industry Reports

February 6, 2008

New ACEEE Study Says Information and Communications Technology is Net Energy Saver By 10:1 Ratio Across Economy

A new study by the American Council for an Energy-Efficient Economy (ACEEE) has found a direct correlation between gains in energy productivity and investments in information and communications technology. The report suggests that use of the technology leads to a dramatic increase in energy efficiency and is actually a net saver of energy by a 10:1 ratio across the economy. Server virtualization and more efficient disk drive and flash technologies are examples of IT energy efficiency.

Entitled, "Information and Communication Technologies: The Power of Productivity," the ACEEE report was commissioned by the Technology CEO Council. The study states that data for the past 37 years indicate that the pace of energy efficiency gains has increased significantly since 1996. Whereas U.S. energy intensity declined 1.8 percent per year between 1970 and 1995, it declined at a much more rapid rate of 2.4 percent between 1996 and 2006. According to the authors of the report, it takes less than half the energy to produce a dollar of economic output today as it did in 1970. U.S. energy consumption per dollar of economic output has declined from 18 thousand Btus in 1970 to less than 9 thousand Btus by the end of 2008. The report states that approximately 75 percent of the new demand for energy has been met through energy efficiency. To view a copy of the report, go to www.techceocouncil.org.

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