EIA Releases Annual Energy Outlook 2006 Full Report

February 20, 2006 by Jeff Shepard

The Energy Information Administration (EIA) has released the 236-page Annual Energy Outlook 2006 (AEO2006) report on its website. In preparing projections for the AEO2006, EIA evaluated a wide range of trends and issues that could have major implications for U.S. energy markets between now and 2030.

Trends in energy supply and demand are affected by a large number of factors that are difficult to predict, such as energy prices, U.S. economic growth, advances in technologies, changes in weather patterns, and future public policy decisions.

AEO2006 includes consideration of the impacts of the Energy Policy Act of 2005 (EPACT2005), signed into law on August 8, 2005. Of the EPACT2005 provisions analyzed, incentives intended to stimulate the development of advanced nuclear and renewable plants have particularly noteworthy impacts. A total of 6 gigawatts of newly constructed nuclear capacity is projected to be added by 2030 in the AEO2006 reference case as a result of the incentives in EPACT2005.

EPACT2005 also has important implications for energy consumption in the residential and commercial sectors. In the residential sector, EPACT2005 sets efficiency standards for torchiere lamps, dehumidifiers, and ceiling fans and creates tax credits for energy-efficient furnaces, water heaters, and air conditioners. It also allows home builders to claim tax credits for energy-efficient new construction.

In the commercial sector, the legislation creates efficiency standards that affect energy use in a number of commercial applications. It also includes investment tax credits for solar technologies, fuel cells, and microturbines. These policies are expected to help reduce energy use for space conditioning and lighting in both sectors.