Grid Resilience

Energy efficiency is an essential asset within a diverse power portfolio

August 2026

by Jack McCarthy, Contributing Writer

Across cooperative territory in Virginia, Maryland and Delaware, access to energy remains foundational to powering opportunities for people, schools, businesses and communities. Energy drives economic growth, supports health and public safety, and allows our schools and local businesses to thrive.

The ever-growing electrification of our world — driven by economic development and new technologies — has had a major impact on demand. As demand for energy grows, so does the importance of using it efficiently.

Much of today’s energy conversation centers on how to generate more power. It’s an essential focus. But just as important is how we manage the energy already in our portfolio. Energy efficiency — strategically managing energy use in daily life — is one of the most immediate, practical and cost-effective ways to meet growing demand without increasing strain on the system.

Energy efficiency works quietly but powerfully within a home or business. For some, energy efficiency might look like installing a smart thermostat and setting schedules for energy savings. Others might enhance efficiency by making improvements in insulation, heating and cooling systems, lighting and Energy Star appliances — all of which reduce the amount of electricity needed on a daily basis.

Generation partners such as Old Dominion Electric Cooperative, working closely with member distribution cooperatives, help provide these simple solutions. These actions add up, incrementally lowering overall demand on the grid, which benefits the entire community.

This becomes especially important when considering how the electric grid is planned and priced. In regional markets such as PJM Interconnection — which coordinates power generation and movement across 13 states including Virginia, Maryland and Delaware — utilities must plan for the single highest hour of electricity use each year. That one moment helps determine how much generation capacity must be available to keep the lights on when demand is at its highest, as well as the price it costs generation facilities to make themselves available. Because of this, even small, consistent reductions in energy use can make a meaningful difference. If demand is lower during that peak hour, fewer resources are needed, which helps manage costs and supports long-term reliability.

Research shows widespread efficiency improvements could significantly reduce both total energy use and peak demand in the decades ahead. National analysis from the American Council for an Energy-Efficient Economy found that, by 2040, energy efficiency alone could lower U.S. electricity demand by about 70 gigawatts — enough to power up to 1 million homes.

Closer to home, within cooperative territory, the combined impact of member-driven energy programs — supported by generation partners such as ODEC — has delivered nearly 3 megawatts of savings to the grid, demonstrating how local action can contribute to broader grid resilience.

Three megawatts might seem like a drop in the bucket, yet every electron saved is valuable. This ability to reduce demand at critical moments is why energy efficiency is increasingly recognized as a form of grid resilience, becoming another essential asset within a diverse power portfolio.

Traditionally, resilience has been defined by physical infrastructure — the power plants generating electricity. Today, however, it includes the ability to manage and shape demand. By lowering stress on the system, efficiency reduces the likelihood of outages and improves system stability.

An all-the-above energy strategy recognizes that the cheapest megawatt is the one you never have to generate.

For electric cooperatives across the region, these outcomes align directly with their purpose. As not-for-profit, member-owned organizations, electric cooperatives are not driven by generating returns for shareholders. Instead, they are focused on delivering reliable, affordable power and long-term value to the communities they serve. It’s why many generation parters, such as ODEC, and distribution cooperatives are finding ways to provide easy access to energy programs, making it possible for member-owners to manage their energy use.

Looking ahead, meeting the region’s energy needs will require a broad mix of solutions. Building new resources, strengthening infrastructure and advancing new technologies will all play a role. But managing energy consumption must be part of that equation as well. Energy efficiency offers a solution that can be deployed today — lowering costs, supporting reliability and helping ensure every available resource is used as effectively as possible.

In an energy landscape defined by rapid growth and tight margins, even the smallest reductions add up, proving that the energy we save is just as valuable as the energy we produce.