Efficiency of energy delivery systems: I. An economic and energy analysis

Energy-return-on-investment (ERI) analysis is a variation of more traditional cost-benefit analyses, a variation that is particularly important in times of diminishing fuel resources. We present a simple set of procedures for ERI analysis and apply those procedures to central New York State, where there is a proposal for a new 870 MW_e coal-fired generating station. We compared the energy and dollar costs of building that facility with the costs of an alternative comprehensive regional program of insulation. The analysis showed that regional insulation was more efficient in conserving energy than the plant was in providing it by at least a factor of 4 in economic terms and by a factor of more than 15 when viewed as energy returned on energy invested.