$107 Billion Saved Through Building Flexibility

A recent report highlights the crucial importance of efficient and responsive buildings in facilitating the transition to a carbon-free power grid, saving $107 billion annually if policymakers and utilities act swiftly.

👉 https://www.canarymedia.com/articles/energy-efficiency/why-efficient-buildings-are-key-to-decarbonizing-the-power-grid

Impact of Efficient Buildings

Investing in the energy efficiency of residential and commercial buildings could reduce system-wide electricity costs by $107 billion annually by 2050. These savings come from reducing the need for new energy infrastructure thanks to buildings that can manage their consumption based on the availability of renewable energy sources.

Demand Flexibility

Buildings can use technologies to adjust their electricity consumption in real-time, according to the availability of solar and wind energy. Equipment such as smart thermostats, electric water heaters, and responsive household appliances can shift electricity usage away from peak demand periods, thus reducing the need for expensive infrastructure.

Economic and Environmental Benefits

Demand flexibility and energy efficiency not only lower costs associated with building new power plants and transmission lines but also promote greater integration of renewable energy. This reduces reliance on fossil fuels and carbon emissions, contributing to a cleaner and more sustainable power grid.

Challenges and Opportunities

Although numerous studies demonstrate the benefits of efficient buildings, widespread adoption is hindered by insufficient planning and a reluctance to invest in less traditional solutions. The report calls for swift action from utilities and regulators to incorporate these technologies into their investment plans.


Efficient and flexible buildings are essential for achieving a carbon-free power grid cost-effectively. By investing in these technologies now, we can not only reduce costs but also improve the resilience and sustainability of our power grid. It is crucial that policymakers and utilities seize this opportunity to ensure a successful energy transition.