Energy efficiency in the USA: some major challenges in the coming years
In recent years, energy efficiency has become a key element as the USA deals with challenges linked to rising electricity demand, sustainability issues and competitivity.
With today’s constantly changing energy scenario, characterised by increased consumption and the infrastructure transformation, the United States have reached a crucial turning point in terms of policies and strategies designed to optimise how resources are used.
What is meant by energy efficiency?
The term energy efficiency refers to the concept of using less energy to carry out the same task, so as to reduce wastage and improve system performance at the same time.
This principle can be applied to many sectors, including residential buildings, manufacturing and transport and it involves the introduction of technologies and strategies aimed at minimising demand for electricity, without compromising quality of life or production levels. Some good examples are:
- domestic appliances with low energy use;
- thermal insulation in buildings;
- optimisation of industrial processes.
In the USA, one of the main objectives of energy efficiency is to reduce reliance on expensive, polluting energy sources in order to improve both the sustainability and security of energy supplies.
Following this path leads to many benefits including:
- reduced greenhouse gas emissions;
- improved air quality;
- lower costs for consumers and businesses.
Furthermore, smart policies also encourage economic growth, a factor which stimulates innovation and creates job opportunities in the renewable energy and advanced technology sectors.
These measures are often the most effective way to meet the challenges posed by rising global energy demand, as they enable signficant results to be achieved with relatively limited investment, compared to the cost of building new energy production infrastructures.
This is why more and more governments, businesses and ordinary citizens are turning to strategies which promote the rational and efficient use of resources.
Increase in demand for electricity in the USA
According to the latest figures, demand for electricity in the United States remained more or less stable from 2018 to 2023, but since 2024, it has recorded an increase of 1.9% and this trend is expected to intensify in the next few years.
Several factors have contributed to this increase, including exponential growth in the number of data centres, industrial expansion and the electrification of transport networks and buildings. According to estimates, the demand for electricity will grow by 15.8% in the next five years, with an increase of 128 GW in required capacity.
Improved energy efficiency could undoubtedly play a key role in managing this spike in demand, eliminating the need to build new power stations.
Programs aimed at optimising residential, industrial and commercial buildings have the potential to signficantly reduce the need to generate new electricity. This will in fact contribute to making the energy distribution system more sustainable.
Artificial intelligence: a challenge and an opportunity
The introduction of artificial intelligence (AI) in many different environments is a remarkable development. While contributing signficantly to higher demand for electricity (especially in the case of data centres), this new technological frontier also offers innovative solutions which can optimise energy consumption. According to recent studies, AI improved US energy efficiency could reduce the resource wastage and carbon emissions by as much as 8% to19% by 2050.
This could bring some key advantages such as improvements in how the national electricity network is managed, a reduction in energy wastage and the optimisation of industrial processes. The implementation of advanced algorithms enables consumption modulation in real time, reducing peaks in demand and improving overall system efficiency.
The role of the States and the private sector
While the federal government is undergoing a period of signficant change, state and local administrations are taking on a more central role in the promotion of intelligent energy management. As well as regulating electricity utility companies and implementing efficiency boosting programs, individual States define standards for the construction of new buildings.
Several state backed schemes focus, for example, on improving efficiency in homes, via incentives and strict building regulations. Furthermore, considering that by investing in electric transportation and sustainable mobility infrastructures, many local councils are also contributing to reducing reliance on fossil fuels.
Private companies are also playing a key role in improving US energy efficiency. Many firms are investing in innovative technologies to reduce their energy consumption and make their business operations more sustainable. Energy efficiency projects in companies are rapidly becoming more widespread, thanks to the demands of investors and consumers, who reward firms who adopt sustainable strategies.
Sectors such as manufacturing and property development are also introducing measures aimed at reducing operational costs and improving competitivity. New energy management technologies allow companies to monitor and optimise their own use of resources in real time.
Future US energy efficiency prospects
Despite numerous challenges, US energy efficiency remains an essential component in the drive to ensure a sustainable future. Investment in this area not only reduces costs for families and businesses but makes a contribution to improving security and reducing greenhouse gas emissions. In order to maximise energy efficiency potential in the coming years, it will be essential to:
- strenthen incentive schemes involving energy efficiency in buildings and industrial processes;
- promote the adoption of advanced technologies like AI and automation, to optimise energy consumption;
- support state and local level initiatives to compensate for any reductions in federal funding;
- involve the private sector and incentivise strategies for sustainable business.
In conclusion, with a combination of targeted policies, technological innovation and cooperation between the public and private sectors, the US can strengthen its competitiveness and reduce the environmental impact of its energy consumption.
Translated by Joanne Beckwith
