---
title: "RMI Report: Energy Efficiency is Fundamentally Undervalued"
description: A new Rocky Mountain Institute report has found that Energy Efficiency is still undervalued. RMI Chief Scientist, Amory Lovins, contends that the size and cost of the potential resource base is much larger and cheaper than previously believed.
image: https://blog.buildee.com/hubfs/EE%20Picture.jpg
---

[![buildee logo](https://buildee.com/wp-content/uploads/2018/10/blue-green-fixed-header-logo.png)](https://buildee.com/)

- [HOW IT WORKS](https://buildee.com/how-it-works/)
- [WHO WE SERVE](https://buildee.com/who-we-serve/)
- [ABOUT US](https://buildee.com/about-us/)
- [NEWS](https://blog.buildee.com)
- [CONTACT](https://buildee.com/contact-us/)
- [Get Started](https://buildee.com/get-started/)

- [Home](https://buildee.com/)
- [Customers](https://buildee.com/utilities/)
- [About Us](https://buildee.com/about-us/)
- [News](https://blog.buildee.com)
- [Contact](https://buildee.com/contact-us/)
- [Get Started](https://buildee.com/get-started/)

# RMI Report: Energy Efficiency is Fundamentally Undervalued

 December 05, 2018

A new paper by the co-founder and chief scientist of the [Rocky Mountain Institute](https://www.rmi.org/) (RMI) seeks to challenge conventional wisdom when it comes to energy efficiency, positing that the size and cost of the potential resource base is much larger and cheaper than previously believed. The misunderstanding is fundamental, according to physicist Amory Lovins. By examining individual energy-consuming technologies, rather than the whole buildings, vehicles and factories which they power, the industry is significantly underestimating the resource. 

Much of today's climate change thinking argues that the world has to use energy at least 3% more productively each year in order keep the planet from warming more than 2 degrees Celsius over pre-industrial levels, [explains RMI.](http://rmi.org/press-release/energy-efficiency-can-address-climate-change-drive-prosperity-and-strengthen-national-security/) Lovins' research argues the world can sustain those rapid efficiency savings — slightly above the 2015 peak of 2.8% per year — far easier than was previously thought. 

![EE Picture](https://blog.buildee.com/hs-fs/hubfs/EE%20Picture.jpg?width=364&name=EE%20Picture.jpg)

There are [a wide range of existing estimates on efficiency savings potential](https://www.energy.gov/eere/slsc/energy-efficiency-potential-studies-catalog) and Lovins' paper does not come to a specific conclusion in terms of dollars saved or megawatt-hours conserved. Instead, he aims to illustrate that the resource potential is fundamentally misunderstood and growing larger, rather than shrinking.

Take this idea, contrasting efficiency with oil deposits:

"Oil deposits and orebodies are finite assemblages of atoms; mining and dispersion deplete their negentropy," Lovins writes. "But energy efficiency resources are infinitely expandable assemblages of *ideas *that deplete nothing but stupidity — a very abundant if not expanding resource."

Lovins repeatedly contrasts efficiency with the oil and gas sector, where only demonstrated and measured reserves are counted and more expensive resources are omitted.

"Most traditional analysts and deployers of energy efficiency see and use only a modest fraction of the worthwhile efficiency resource," Lovins writes. "In energy efficiency as in geology, total reserves exceed proven reserves, and the resource base, increasingly exploitable as exploration and extraction techniques improve, far exceeds both."

The paper does not seek specific energy or economic conclusions of efficiency's potential, RMI Principal Mark Dyson told Utility Dive in an email. However, he said RMI sees evidence of an energy efficiency resource potential that is two to three times larger than typically expected, "and often at lower costs, when using integrative design approaches."

The paper's conclusions aim to unlock some relatively straightforward solutions, along with cracking tougher nuts. 

Simple changes, said Dyson, could include directing utilities to utilize efficiency whenever it is the cheapest resource, aligning earnings incentives with least-cost service provisions from all resources. That "would go a long way toward removing some of the structural barriers associated with the current efficiency marketplace."

Other issues are more complex, he said.

"There is a fundamental difference in mindset between incremental, piecemeal efficiency engineering, on the one hand, and integrative design practices," Dyson said, explaining that it will take some time to reconcile new ideas with utility training and goals.

"Not an easy set of solutions but the upside, we believe, is worth it," said Dyson.

*This article was originally published on UtilityDive.com and was authored by Robert Walton*

 

*[![SIGN UP FOR NEWSLETTER](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/3376088/955c9536-58dd-4ab3-b3f7-02649fb9fdb1.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/3376088/955c9536-58dd-4ab3-b3f7-02649fb9fdb1)*

[← Return to all blog posts](https://blog.buildee.com)

### Categories

- [News & Resources (136)](https://blog.buildee.com/topic/news-resources)
- [Learning & Webinars (19)](https://blog.buildee.com/topic/learning)
- [Case Study (8)](https://blog.buildee.com/topic/case-study)

### Archives

- [March 2025 (1)](https://blog.buildee.com/archive/2025/03)
- [February 2025 (3)](https://blog.buildee.com/archive/2025/02)
- [January 2025 (2)](https://blog.buildee.com/archive/2025/01)
- [December 2024 (2)](https://blog.buildee.com/archive/2024/12)
- [November 2024 (1)](https://blog.buildee.com/archive/2024/11)
- [October 2024 (2)](https://blog.buildee.com/archive/2024/10)
- [September 2024 (4)](https://blog.buildee.com/archive/2024/09)
- [May 2024 (2)](https://blog.buildee.com/archive/2024/05)
- [April 2024 (1)](https://blog.buildee.com/archive/2024/04)
- [March 2024 (1)](https://blog.buildee.com/archive/2024/03)
- [February 2024 (1)](https://blog.buildee.com/archive/2024/02)
- [December 2023 (1)](https://blog.buildee.com/archive/2023/12)
- [October 2023 (2)](https://blog.buildee.com/archive/2023/10)
- [September 2023 (1)](https://blog.buildee.com/archive/2023/09)
- [June 2023 (1)](https://blog.buildee.com/archive/2023/06)
- [May 2023 (2)](https://blog.buildee.com/archive/2023/05)
- [February 2023 (1)](https://blog.buildee.com/archive/2023/02)
- [January 2023 (1)](https://blog.buildee.com/archive/2023/01)
- [December 2022 (1)](https://blog.buildee.com/archive/2022/12)
- [October 2022 (2)](https://blog.buildee.com/archive/2022/10)
- [August 2022 (1)](https://blog.buildee.com/archive/2022/08)
- [July 2022 (1)](https://blog.buildee.com/archive/2022/07)
- [March 2022 (1)](https://blog.buildee.com/archive/2022/03)
- [January 2022 (1)](https://blog.buildee.com/archive/2022/01)
- [December 2021 (1)](https://blog.buildee.com/archive/2021/12)
- [November 2021 (2)](https://blog.buildee.com/archive/2021/11)
- [October 2021 (4)](https://blog.buildee.com/archive/2021/10)
- [April 2021 (1)](https://blog.buildee.com/archive/2021/04)
- [February 2021 (1)](https://blog.buildee.com/archive/2021/02)
- [January 2021 (2)](https://blog.buildee.com/archive/2021/01)
- [December 2020 (2)](https://blog.buildee.com/archive/2020/12)
- [November 2020 (1)](https://blog.buildee.com/archive/2020/11)
- [October 2020 (2)](https://blog.buildee.com/archive/2020/10)
- [September 2020 (2)](https://blog.buildee.com/archive/2020/09)
- [August 2020 (1)](https://blog.buildee.com/archive/2020/08)
- [July 2020 (1)](https://blog.buildee.com/archive/2020/07)
- [April 2020 (1)](https://blog.buildee.com/archive/2020/04)
- [February 2020 (4)](https://blog.buildee.com/archive/2020/02)
- [January 2020 (1)](https://blog.buildee.com/archive/2020/01)
- [December 2019 (3)](https://blog.buildee.com/archive/2019/12)
- [October 2019 (3)](https://blog.buildee.com/archive/2019/10)
- [September 2019 (2)](https://blog.buildee.com/archive/2019/09)
- [August 2019 (1)](https://blog.buildee.com/archive/2019/08)
- [July 2019 (2)](https://blog.buildee.com/archive/2019/07)
- [June 2019 (2)](https://blog.buildee.com/archive/2019/06)
- [May 2019 (3)](https://blog.buildee.com/archive/2019/05)
- [April 2019 (4)](https://blog.buildee.com/archive/2019/04)
- [March 2019 (2)](https://blog.buildee.com/archive/2019/03)
- [January 2019 (2)](https://blog.buildee.com/archive/2019/01)
- [December 2018 (1)](https://blog.buildee.com/archive/2018/12)
- [November 2018 (1)](https://blog.buildee.com/archive/2018/11)
- [October 2018 (4)](https://blog.buildee.com/archive/2018/10)
- [September 2018 (1)](https://blog.buildee.com/archive/2018/09)
- [August 2018 (1)](https://blog.buildee.com/archive/2018/08)
- [July 2018 (1)](https://blog.buildee.com/archive/2018/07)
- [June 2018 (1)](https://blog.buildee.com/archive/2018/06)
- [May 2018 (2)](https://blog.buildee.com/archive/2018/05)
- [April 2018 (3)](https://blog.buildee.com/archive/2018/04)
- [March 2018 (2)](https://blog.buildee.com/archive/2018/03)
- [February 2018 (5)](https://blog.buildee.com/archive/2018/02)
- [January 2018 (5)](https://blog.buildee.com/archive/2018/01)
- [December 2017 (3)](https://blog.buildee.com/archive/2017/12)
- [November 2017 (4)](https://blog.buildee.com/archive/2017/11)
- [October 2017 (6)](https://blog.buildee.com/archive/2017/10)
- [September 2017 (3)](https://blog.buildee.com/archive/2017/09)
- [July 2017 (1)](https://blog.buildee.com/archive/2017/07)
- [June 2017 (2)](https://blog.buildee.com/archive/2017/06)
- [May 2017 (2)](https://blog.buildee.com/archive/2017/05)
- [March 2017 (3)](https://blog.buildee.com/archive/2017/03)
- [January 2017 (3)](https://blog.buildee.com/archive/2017/01)
- [November 2016 (2)](https://blog.buildee.com/archive/2016/11)
- [September 2016 (1)](https://blog.buildee.com/archive/2016/09)
- [July 2016 (1)](https://blog.buildee.com/archive/2016/07)
- [May 2016 (1)](https://blog.buildee.com/archive/2016/05)
- [April 2016 (3)](https://blog.buildee.com/archive/2016/04)
- [January 2016 (2)](https://blog.buildee.com/archive/2016/01)
- [December 2015 (2)](https://blog.buildee.com/archive/2015/12)

Hello