Negawatt market

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A negawatt-hour is a unit of energy saved as a direct result of energy conservation measures, such as reducing the use of heat or electricity. The concept was developed after Amory Lovins authored an article published in the March 21, 1985 issue of Public Utilities Fortnightly arguing that utility companies will sell less electricity and more efficiency by marketing 'negawatts'. In Lovins' opinion, utility customers don't want kilowatt-hours of electricity; they want energy services such as hot showers, cold beer, lit rooms, and spinning shafts, which can come more cheaply if electricity is used more efficiently.^[1] Lovins credited the term to a typo in a document by the Colorado Public Utilities Commission in which the word "megawatt" was misspelled.^[2]

Negawatts are intended to be a form of encouragement to motivate consumers to conserve energy.^[3] Lovins considers the concept of conservation a change in behavior based on the attitude 'Do Less to Use Less.' He makes a distinction between conservation and efficiency by defining efficiency as "the application of technologies and best practices to eliminate waste based on the attitude, 'Do the same or more with less.'"^[4]

Cost for negawatt power can be calculated using cost-effectiveness analysis or CEA. For energy efficiency investments a CEA calculation produces the value of saved energy or negawatts in $/kWh. Such a valuation allows comparing the price of negawatts with price of energy such as electricity from the grid or the cheapest renewable alternative.^[5]

Lovins explains that many companies are already enjoying the financial and other rewards that come from saving electricity. Yet progress in converting to electricity saving technologies has been slowed by the indifference or outright opposition of some utilities.^[1] A second obstacle to efficiency is that many electricity-using devices are purchased by people who won't be paying their running costs and thus have little incentive to consider efficiency. Lovins also believes that many customers "don't know what the best efficiency buys are, where to get them, or how to shop for them".^[1]

In 2003, in France, under the guide of Thierry Salomon, 14 scientists wrote "Le manifeste Négawatt."^[6] Megawatt and negawatt seem to be reminiscent to the larger concept of ecological footprint, and by following this line of thought toward compatibility and comparability a second frame of concept seems appropriate: the impact in another frame or setting where units or numbers cannot be compared (see paradigm shift).^{[clarification needed]} See association négaWatt.