Negawatt market

[1] Lovins credited the term to a typo in a document by the Colorado Public Utilities Commission in which the word "megawatt" was misspelled.

Yet progress in converting to electricity saving technologies has been slowed by the indifference or outright opposition of some utilities.

Some feel that to establish a viable market, legislation and cooperation between primary producers, distributors, traders and consumers, may be required.

Demand response can be defined as enrolling large users of energy in programs to lower their usage in return for compensation, which helps take pressure off the grid.

[9] This market would help take pressure off the grid because electricity could be treated as a commodity just like copper or sowbellies, and therefore traded to areas that need it more than others.

"Some Texas congressmen and energy companies are trying to help California avert blackouts and utility price shocks this summer with 'negawatts'.

Keith Hartner, the CEO of Associated Electric Cooperative Inc., feels that negawatts are generating savings for their customers and for the company as well: “The goal of this program is to save money not only at the generator but also at the meter for the members.”[18] Individual households can practice negawatts through using energy-efficient lighting and Energy Star appliances as well as simply reducing standby power.

The City of San Diego has created a negawatts initiative called "Reduce then Produce" to promote this idea.

According to the Negawatt Power Solutions Group,[20] a "building that achieved a 50% energy cost reduction may be eligible for tax deduction up to $1.80 per square foot.

This would allow a nation or a state to experiment with "electricity deregulation," in which demand reductions could be purchased with a minimum of disruption to businesses, workers and the economy.

Electricity price caps may also need to be implemented in order for the emerging negawatts market to function correctly.

"[25] Customers may also be less inclined to buy products that are more energy efficient due to the increase in cost and time spent.

Even when they can do the sums, the transaction costs are high: it is a time-consuming chore for someone to identify the best energy-saving equipment, buy it and get it installed.

that people need to have access to simple yet effective information systems to help users understand their energy without having to become technology experts.