Showing papers in "Energy Efficiency in 2008"

Feedback on household electricity consumption: a tool for saving energy?

Abstract: Improved feedback on electricity consumption may provide a tool for customers to better control their consumption and ultimately save energy. This paper asks which kind of feedback is most successful. For this purpose, a psychological model is presented that illustrates how and why feedback works. Relevant features of feedback are identified that may determine its effectiveness: frequency, duration, content, breakdown, medium and way of presentation, comparisons, and combination with other instruments. The paper continues with an analysis of international experience in order to find empirical evidence for which kinds of feedback work best. In spite of considerable data restraints and research gaps, there is some indication that the most successful feedback combines the following features: it is given frequently and over a long time, provides an appliance-specific breakdown, is presented in a clear and appealing way, and uses computerized and interactive tools.

An energy efficient Swedish pulp and paper industry – exploring barriers to and driving forces for cost-effective energy efficiency investments

Abstract: Despite the need for increased industrial energy efficiency, studies indicate that cost-effective energy efficiency measures are not always implemented, which is explained by the existence of barri ...

Improving the energy performance of UK households: Results from surveys of consumer adoption and use of low- and zero-carbon technologies

Abstract: This paper presents results from a UK Open University project which surveyed consumers’ reasons for adoption, and non-adoption, of energy efficiency measures and renewable energy systems—collectively called low- and zero-carbon technologies—and their experiences of using these technologies. Data were gathered during 2006 via an online questionnaire with nearly 400 responses, plus 111 in-depth telephone interviews. The respondents were mainly environmentally concerned, ‘green’ consumers and therefore these are purposive rather than representative surveys. The paper outlines results for four energy efficiency measures (loft insulation, condensing boilers, heating controls and energy-efficient lighting) and four household renewables (solar thermal water heating, solar photovoltaics, micro-wind turbines and wood-burning stoves). These green consumers typically adopted these technologies to save energy, money and/or the environment, which many considered they achieved despite rebound effects. The reasons for considering but rejecting these technologies include the familiar price barriers, but there were also other obstacles that varied according to the technology concerned. Nearly a third of the surveyed consumers had adopted household renewables, over half of which were wood stoves and 10% solar thermal water heating systems. Most adopters of renewables had previously installed several energy efficiency measures, but only a fifth of those who seriously considered renewables actually installed a system. This suggests sell energy efficiency first, then renewables. There seems to be considerable interest in household renewables in the UK, especially among older, middle-class green consumers, but so far only relatively few pioneers have managed to overcome the barriers to adoption.

New thinking on the agentive relationship between end-use technologies and energy-using practices

Abstract: The subject of efficient technologies and how to get them into the homes and hands of users has been at the centre of energy efficiency policy from its inception. What the record shows is that efficient technologies may well increase the efficiency of energy throughput but that promised reductions in energy demand seldom pan out. Confronted with this problem, the usual policy approach has been to work harder to get markets, incentives and information to loosen up the ‘barriers’ to technology penetration. Social scientists have been recruited to facilitate markets with better information and incentives, in other words, to improve the behaviour of energy end-users. The paper argues that both technologists and behaviouralists have oversimplified the ways that technologies and socio-cultural contexts interact to affect energy-using practices. The concept of distributed agency is introduced to capture the theoretical link between technology and behaviour. The examples of air conditioning and food refrigeration are used to illustrate these points.

Breaking down the silos: the integration of energy efficiency, renewable energy, demand response and climate change

Abstract: This paper explores the feasibility of integrating energy efficiency program evaluation with the emerging need for the evaluation of programs from different “energy cultures” (demand response, renewable energy, and climate change). The paper reviews key features and information needs of the energy cultures and critically reviews the opportunities and challenges associated with integrating these with energy efficiency program evaluation. There is a need to integrate the different policy arenas where energy efficiency, demand response, and climate change programs are developed, and there are positive signs that this integration is starting to occur.

Theory-based policy evaluation of 20 energy efficiency instruments

Abstract: Realizing a 20% energy efficiency improvement in Europe by 2020 requires the introduction of good new energy efficiency policies as well as strengthening and enforcing the existing policies. This raises the question: what characterizes good and effective energy efficiency policies and their implementation? Systematic ex post evaluation of energy efficiency policies can reveal factors determining not only what works and what does not but also explain why. Ex post evaluation of 20 energy efficiency policy instruments applied across different sectors and countries in Europe among others showed that ex post evaluation does not yet have a high priority among policy makers: Often, quantitative targets and clear timeframes are lacking, and monitoring information is not collected on a regular basis. Our analysis, however, did reveal some general factors in the process of design and implementation of policy instruments that appear as important including (1) existence of clear goals and a mandate for the implementing organization, (2) the ability to balance and combine flexibility and continuity, (3) the involvement of stakeholders, and (4) the ability to adapt to and integrate adjacent policies or develop consistent policy packages. The analysis was performed using a uniform methodology called “theory-based policy evaluation”. The general principle behind this approach is that a likely theory is drawn up on the program’s various steps of logic of intervention to achieve its targeted impact in terms of energy efficiency improvement. The approach has several benefits over other ex post evaluation methods because (1) the whole policy implementation process is evaluated and the focus is not just on the final impacts, (2) through the development of indicators for each step in the implementation process, the “successes and failures” can be determined to the greatest extent possible, and (3) by applying this approach, we not only learn whether policies are successful or not but also why they succeeded or failed and how they can be improved.

Tradable white certificate schemes: fundamental concepts

Abstract: A number of European countries have introduced market-based instruments to encourage investment in energy efficiency improvement and achieve national energy savings targets. Some of these schemes are based on quantified energy savings obligations imposed on energy distributors or suppliers, coupled with a certification of the energy savings (via white certificates), and a possibility to trade certificates. The paper describes the concept and the main elements of a tradable white certificate scheme, where appropriate giving examples from existing schemes in Europe. It discusses design and operational features that are key to achieve the overall savings targets, such as delineation of the scheme in terms of obliged parties, eligible projects and technologies, institutional structure, and processes to support the scheme, such as measurement and verification. Finally, the paper looks at a number of open issues, most importantly the possibility of creating a voluntary market for white certificates via integration into the carbon market.

Optimization of parallel variable-speed-driven centrifugal pumps operation

Abstract: This paper presents an optimization framework based on dynamic programming mathematic tool suitable to be implemented in programmable logic controllers to improve the automated control of parallel pumping loops aiming at energy conservation. The paper also contributes with simple methods to derive system curve and pumping head-flow speed-dependent characteristic from ordinary field measurements.

Tradable energy efficiency certificates: the Italian experience

Abstract: The Italian white certificates scheme took effect in January 2005 The command and control component of the scheme, ie, the energy efficiency obligation, was introduced with the implementation of the first European directives on the liberalization of the electricity and natural gas market (Ministero dell’Industria, del commercio e dell’artigianato Legislative Decree of 16th March 1999, n79, 1999; Ministero dell’Industria, del commercio e dell’artigianato Legislative Decree of 23rd May 2000, n 164, 2000), in the form of a public service obligation (PSO) raised on distribution companies The market-based component, the trading of energy efficiency certificates (EECs), was introduced by the government in mid-2001, together with the definition of the level of the obligation and of the other elements of the policy package In the following three years the regulatory authority for electricity and gas (AEEG) designed the implementing technical and economic regulation governing the system through an extensive public consultation During the same period, a revision of some of the basic elements of the scheme was also carried out, in order to take into account some institutional changes (ie, new shared responsibilities between the federal government and regional administrations in the energy policy field), as well as some improvements suggested by the regulator In December 2007, some components of the mechanism were updated on the basis of the results achieved and of the critical issues that emerged during its implementation (Ministero delle Attivita Produttive (MSE) Ministerial Decree of revision and update of the Ministerial Decrees of 20the July 2004, 2007)

Multiple instruments to change energy behaviour: The emperor’s new clothes?

Abstract: Over the last few decades, several instruments have evolved to deal with similar energy and environmental challenges. For instance, the economic literature prescribes separate tax or cap-and-trade systems to internalize negative environmental externalities and subsidies to internalize positive externalities such as research and development. However, policy is not straightforward because of the influence on cost and competition and concerns for regional employment, economic activity within certain industries and any distributional effects. Tax discrimination, subsidies and regulations then undermine the efficiency of energy instruments. To balance any environmental concerns, other instruments, including green and white certificates, have been created. While innovative, these work as simple combinations of taxes and subsidies. While the extant literature thoroughly analyzes the partial effects of these instruments, there has been little focus on their basics and the effects of aggregate taxes and subsidies. This complexity calls for research on the efficiency of each instrument, including the administration and transaction costs associated with holding a large set of instruments. We should consider the coordination and simplification of policy tools before complicating the system further by introducing new, primarily equivalent, instruments.

Towards a Sustainable Energy Balance: Progressive Efficiency and the Return of Energy Conservation

Abstract: We argue that a primary focus on energy efficiency may not be sufficient to slow (and ultimately reverse) the growth in total energy consumption and carbon emissions. Instead, policy makers need to return to an earlier emphasis on “conservation,” with energy efficiency seen as a means rather than an end in itself. We briefly review the concept of “intensive” versus “extensive” variables (i.e., energy efficiency versus energy consumption) and why attention to both consumption and efficiency is essential for effective policy in a carbon- and oil-constrained world with increasingly brittle energy markets. To start, energy indicators and policy evaluation metrics need to reflect energy consumption, as well as efficiency. We introduce the concept of “progressive efficiency,” with the expected or required level of efficiency varying as a function of house size, appliance capacity, or more generally, the scale of energy services. We propose introducing progressive efficiency criteria first in consumer information programs (including appliance labeling categories) and then in voluntary rating and recognition programs such as ENERGY STAR. As acceptance grows, the concept could be extended to utility rebates, tax incentives, and ultimately to mandatory codes and standards. For these and other programs, incorporating criteria for consumption, as well as efficiency, offers a path for energy experts, policymakers, and the public to begin building consensus on energy policies that recognize the limits of resources and global carrying capacity. Ultimately, it is both necessary and, we believe, possible to manage energy consumption, not just efficiency, in order to achieve a sustainable energy balance. Along the way, we may find it possible to shift expectations away from perpetual growth and toward satisfaction with sufficiency.

The business case for energy management in high-tech industries

Abstract: The high-technology sector – characterized by facilities such as laboratories, cleanrooms, and data centers – is often where innovation first occurs. These facilities are sometimes referred to as the “racecars” of the buildings sector because new technologies and strategies to increase performance often trickle down to other building types. Although these facilities are up to 100 times as energy-intensive as conventional buildings, highly cost-effective energy efficiency opportunities are often overlooked. Facility engineers are in the trenches identifying opportunities to improve energy productivity but often are unable to make the broader business case to financial decision makers. This article presents the technical opportunities for reducing energy costs, along with their broader strategic value for high-tech industries.

Interactions of white certificates with other policy instruments in Europe

Abstract: In a tradable white certificate (TWC) scheme, each certificate issued represents a certain amount of energy saved. Used in conjunction with an energy-saving obligation on certain parties in the energy supply chain and with rules for trading, monitoring and verification established, an efficient market for energy savings in sectors not covered by the European Union (EU) Emissions Trading Scheme can be established. However, a plethora of other mechanisms are already in place to promote a more sustainable use of energy in Europe. This paper analyses the interactions (both potential and realised in existing schemes) between TWCs and other policy instruments including tradable green certificates, the European Union Emissions Trading Scheme, the European Union Energy Performance in Buildings Directive as well as taxes, subsidies and loans. Measures implemented through a TWC scheme that reduce the consumption of electricity can make targets under a tradable green certificate scheme easier to attain. Where a tradable green certificate scheme contains relative targets, the target should be increased to achieve the same absolute amount of renewable power. A TWC scheme can also reduce the number of allowances electricity generators will need to surrender under the EU Emissions Trading Scheme. By reducing the available emission rights in the National Allocation Plans, this effect is possible to counteract.

Utility energy efficiency schemes: savings obligations and trading

Abstract: Utility financed and/or operated energy efficiency schemes have a long history going back to the first energy crisis in 1973. It is therefore appropriate to ask what is new about the recent raft of white certificate schemes and whether there is anything that makes them more effective than the older approaches. This paper attempts to answer these questions by reviewing the experience with earlier utility schemes and comparing them with the more recent schemes implemented on both sides of the Atlantic as well as Australia. Up-to-date results are reported on utility programme impact in all the regions, including a new indicator analysis of the collective, long-term impact of such schemes in the USA. From this it is clear that both the new and old schemes are highly effective in delivering substantial, sustained and cost effective energy savings and associated reductions in CO2 emissions. A key component of programme impact, including cost-effectiveness, is the effective alignment of utility commercial incentives with the delivery of energy savings. There are essentially two new elements of the recent utility energy efficiency schemes: i) mandated energy savings obligations and ii) the flexibility to trade the obligations. The mandated savings obligation, when linked to a suitable non-compliance penalty structure, seems to be an especially effective means of ensuring that public policy objectives for energy efficiency are met. The importance of allowing obligations to be traded for programme success is not yet clear and will require more time before proper longitudinal evaluations can be attempted.

Comparative assessment of environment-friendly alternatives to R134a in domestic refrigerators

Abstract: In the present work, the possibility of using R152a and hydrocarbon refrigerants (such as R290, R1270, R600a, and R600) as alternatives to R134a in domestic refrigerators has been assessed theoretically. The refrigerants are assessed over wider range condensing and evaporator temperatures. The assessment was done with standard parameters such as pressure ratio, volumetric cooling capacity (VCC), coefficient of performance (COP), compressor input power, compressor discharge temperature, and total equivalent warming impact (TEWI). The results obtained showed that pure hydrocarbon refrigerants are not suitable to be used as alternatives to R134a due to its mismatch in VCC. R152a has approximately the same VCC with about 9% higher COP and lower values of operating pressure and compressor input power. The discharge temperature of R152a was higher than that of R134a by about 14–26 K. TEWI of R152a was about 7% lower than that of R134a. The reported results proved that R152a is an energy-efficient and environment-friendly alternative to phase out R134a in domestic refrigerators.

Tradable white certificate schemes: what can we learn from tradable green certificate schemes?

Abstract: In this paper, we analyze the experiences gained from tradable green certificate (TGC) schemes and extract some policy lessons that can lead to a successful design of a market-based approach for energy efficiency improvement, alias tradable white certificate schemes. We use tradable green certificate schemes existing in the Netherlands and Sweden as case studies. Departing from an assessment of both TGC schemes, we identify several institutional and market aspects that have affected their performance. We conduct the analysis by addressing key evaluation criteria (i.e., cost and energy effectiveness, administrative burden, technological innovation, political feasibility, and transaction costs). It is not our intention to demonstrate to the reader a normative aspect of designing tradable white certificate schemes. Rather, we identify some key policy lessons which can be summarized as: a binding long-term target must be clearly expressed in terms of policy time frame and certainty, a proper liquid market must be ensured for tradability of certificates, the scheme should be technology neutral, transaction costs should be kept low, and the energy efficiency target should not only address ‘low hanging fruits’ but also promote innovation.

Tradeable energy efficiency certificates in Australia

Abstract: Tradeable energy efficiency certificates are created in Australia as part of a larger baseline-and-credit emissions trading scheme, the Greenhouse Gas Reduction Scheme (GGAS) that operates in the State of New South Wales and the Australian Capital Territory. GGAS aims to reduce greenhouse gas emissions associated with the generation and use of electricity through project-based activities to offset the production of emissions. GGAS applies in two jurisdictions that are part of a wholesale electricity market operating across a total of six jurisdictions and this imposes some constraints on scheme design. Nevertheless, GGAS has developed a set of comprehensive operational systems and procedures to validate energy efficiency projects and verify the abatement they produce. To the end of calendar year 2006, nearly ten million energy efficiency certificates have been created under GGAS, representing nearly ten million tonnes of CO2-e abatement. Some significant issues have arisen regarding the creation of certificates from the mass distribution of small energy-efficient household appliances. However, the experience with GGAS still demonstrates that tradeable energy efficiency certificates can be an effective mechanism for incentivising greenhouse gas emissions abatement in the context of a baseline-and-credit emissions trading scheme.

Market behaviour and the to-trade-or-not-to-trade dilemma in ‘tradable white certificate’ schemes

Abstract: This paper provides an empirical analysis of market behaviour under ‘Tradable White Certificate’ (TWC) schemes. It focuses on the entire set of ‘flexibilities’ granted to obliged parties to meet a mandatory energy-saving target cost-effectively, i.e. range eligible measures, eligible end-use sectors, banking provision, market engagement of non-obliged parties, and trading as such. We found that market behaviour responds to the unique design and context in which TWC schemes are implemented. Contrary to expectations, limited trading is observed so the ‘to-trade-or-not-to-trade’ dilemma is further analysed. A real TWC market has emerged only in Italy, where obliged parties (i.e. energy distributors) show preference towards ‘to-trade’. In Great Britain and France, an autarky compliance approach is identified, with obliged parties (i.e. energy suppliers) showing preference towards ‘not-to-trade’ driven by, among many factors, commercial benefits of non-trading (e.g. increased competitiveness). At the same time, results show clearer indications of cost-effectiveness for Great Britain than for Italy. In general, high energy-saving effectiveness is observed, but low ambitious saving targets and pitfalls in the regulatory framework need to be considered to further develop TWC markets. Initial market and institutional conditions strongly suggest that trading might not be an immediate outcome. Ambitious energy targets can trigger a more dynamic usage of all flexibilities by eligible parties and thus active behaviour in TWC markets.

The trouble with energy efficiency indexes: la aritmetic non e opinione

Abstract: Rising energy use and energy-related global greenhouse gas emissions are encouraging new national energy efficiency policies and long-term international cooperative agreements. These require on-going studies to monitor their progress; thus, substantial effort must be directed toward developing reliable evaluation method- ologies. One proposed methodology that is gaining in popularity involves energy efficiency indexes. The purpose of this paper is to show that there is a fundamental shortcoming in this approach that makes it unsuitable for estimating policy impacts. This is done in twoways:first,bycomparingthecalculationofapercent change in energy efficiency indexes to a conventional calculation of a percent change in the level of energy use and, second, by using a Monte Carlo experiment to estimate the probability that policy impacts estimated via an energy efficiency index, even one that has been adjusted, will contain a high degree of error.

Market imperfections and economic efficiency of white certificate systems

Abstract: This paper takes the view that energy markets and markets for energy efficiency have significant imperfections, including ones that cannot be repaired through prices alone. The acknowledgement of the various market imperfections, however, does not endorse automatically the use of various instruments, such as tradable white certificates (TWC). Therefore, it is necessary to clarify under what conditions a TWC system can have equal or superior effectiveness and economic efficiency as compared to other instruments. The article explains the principles of a TWC system in terms of market functioning and price formation. It also highlights some key assumptions regarding additionality of energy savings, transaction cost, free riding, target setting and regulatory predictability. Subsequently, the paper illustrates how a TWC system interacts with other energy efficiency policy instruments, in particular standards and taxes. After these explanatory sections the article turns to the modelling of actual TWC price formation in selected countries and subsequently presents a comparative assessment of a TWC system with an energy tax for Finland and the Netherlands.

Measurement and verification strategies for energy savings certificates: meeting the challenges of an uncertain world

Abstract: End-use energy efficiency is a cost-effective and rapidly deployable strategy for significantly reducing greenhouse gas (GHG) emissions and energy costs. Energy savings certificates (ESCs)—instruments assigning the property rights to energy savings or attributes of those savings—are becoming an effective tool for meeting energy savings and GHG targets. The efficacy of ESCs will depend on the market’s ability to (1) verify the amount of savings that they certify along with the uncertainty of those savings (i.e., quantify their value), (2) clearly assign ownership rights to that value (i.e., state exactly who owns what) and (3) efficiently buy and sell those rights between interested parties (i.e., conduct simple transactions). The measurement and verification (M&V) system governing ESCs will critically impact whether these three criteria are satisfied. An M&V system for ESCs requires the fundamental elements of an M&V system for any regulated energy-efficiency program, but must also address more explicitly the above-mentioned criteria. In this paper, the authors discuss the International Performance Measurement and Verification Protocol (IPMVP) and specific elements of an M&V system that address components of an ESC system.

Editorial: Tradable White Certificates—a promising but tricky policy instrument

Abstract: In the wake of a steadily expanding climate policy portfolio tradable white certificates (TWCs) are an energy-efficiency policy instrument, which is receiving increasing attention from policy makers worldwide. Many policy makers regard them as an effective instrument to improve security of supply, to minimize negative environmental impacts of energy conversion and to maximize economic efficiency of climate policies. Tradable white certificates have their roots in several preceding instrumental designs. Firstly, there is a heritage of integrated resource planning (IRP), demand side management (DSM), energy-saving obligation schemes for energy utilities. IRP started already in the 1970s and was enlarged to DSM and utility obligation programs in the 1980s (e.g. Hirst 1992; Schweitzer et al. 1991; Waide and Buchner, in this volume). The second line of heritage for TWCs comes from the development of the tradable property rights. Even though the idea has been around already for more than 40 years (Coase 1960), the implementation started only to pick up in the late seventies (‘bubble-concept’, Atkinson and Tietenberg 1991) and, more seriously, with the introduction of a capand-trade system for SO2 in the USA in the eighties. Since then, a strong trend favouring market-based instruments was prominent in many OECD countries. More specifically, the existing TWC systems have many features in common with greenhouse gas emission trade systems (notably EU ETS) and with green certificate systems, such as RECs (Gillenwater 2008a, b).

Model for optimizing energy efficiency through controlling speed and gear ratio

Abstract: Specific fuel consumption of vehicles has been improved through technical changes in the last three decades. There has been little study of the impact of behavioral aspects on the specific fuel consumption of vehicles. Analytical tools developed recently have included options for quantifying the specific fuel consumption in certain predefined driving cycles. Empirical studies have shown that real driving cycles are different from predefined ones. It has also been observed that optimal coordination of both speed of vehicle and gear ratio are detrimental to the improved performance of a vehicle. Previous studies have only considered the vehicle speed as the explanatory parameter, and gear ratio has rarely been discussed. Therefore, an optimal model of vehicle fuel consumption has been developed on the basis of microeconomic theories. The application of this model helps to identify the optimal driving strategy of a vehicle in a certain real driving cycle. The model has then been applied to estimate the optimal fuel consumption of a vehicle in a given real case, and the results of model estimate have been compared with measured data. It has been found that the implementation of optimal driving strategy based on the model estimates may help to reduce specific fuel consumption by 3.2 l/100 km on average (37% of actual specific consumption). It is also observed that the potential for energy saving prevails when the traffic flow is dense and slow. Hence, the implementation of optimal driving strategy based on the coordination of speed and gear ratio would lead to the realization of energy saving potential that is considerable.

The role of market and technical downsizing in reducing carbon emissions from the Swedish new car fleet

Abstract: Doubts have been raised on whether the car industry will manage to reach the goal set by the Voluntary Agreement with the European Commission, unless tougher measures are taken to reduce CO2 emissions. Taking a stance from the concept of downsizing, we study the historical development of two strategies: first, shifting the market toward smaller cars, market downsizing; second, a technical downsizing, i.e., technical improvements that have enabled a reduction of engine size. We focus on the Swedish new car market from 1975 to 2002. Analysis is done by combining sales statistics with databases over car model parameters. The development of the top and bottom 10% and 20% of the car market of various parameters points to an increased differentiation of the market; still, the market share of small models remains low. We identify the potential for downsizing created by increase of maximum specific torque and power and conclude that these have enabled the cylinder volume to stabilize around 2 l. Increase in engine size has also partly been dampened by the utilization of supercharging. The potential savings of fuel use presented by the introduction of a sixth gear in manual gearboxes have not materialized since gearshifts have not systematically been used to lower engine speed. We conclude that there are few signs of a downsizing in the Swedish new car fleet. From a market perspective, larger cars are still dominant and the technical potentials to reduce engine size have not been harnessed.

Promoting a Level Playing Field for Energy Options: Electricity Alternatives and the Case of the Indian Point Energy Center

Abstract: The Indian Point Energy Center, with two operational nuclear reactors, sits in a densely populated region just 40 mi north of midtown Manhattan. It is a vital part of the electricity supply system for the New York City region, but its propinquity to the largest city in the USA has raised public concerns about its safe operation, particularly in the event of a terrorist attack. Such concerns prompted the US Congress to request a study of potential options for replacing the 2,000 MW of power provided by Indian Point. This paper assesses the potential for electricity alternatives in the Indian Point service area. It documents that increased investments in energy efficiency, combined heat and power facilities, and solar photovoltaics could cost-competitively reduce peak demand in the Indian Point service area by 1 GW or more by 2010 and by 1.5 GW by 2015. If the cost of solar photovoltaics can be brought to near-competitive levels over the next decade, these totals could be raised to 1.7 GW by 2015, approaching the capacity of the Indian Point Energy Center. This result challenges the conventional focus of system operators and policymakers on supply-side solutions.

Breaking out of the efficiency box

Abstract: Those of us who have been working at the interface between energy efficiency research and policy for a while share a double frustration. The first is that in spite of solid evidence that energy efficiency saves money, pollution and carbon, many sound policies and projects have long been collecting dust on the shelves of policy makers, energy suppliers, businesses and consumers. In other words, we still face the hugely important task of finding ways to get economically viable and technically feasible projects out into everyday practice. The second frustration derives from a timid reaction in the energy community to the increasing importance of environment and climate change. These lay down a gauntlet for deep changes in both energy policy and research agendas. We have been far too slow in adjusting our thoughts and actions to address these changes. For a long time, we have been held hostage by a peculiar form for economic thinking which, from the inside of its box, has viewed the resolution to the energy problem in optimising resources perceived as scarce in the short run but infinite in a long run. We should have moved out of this box earlier, but our imaginations have been captured by the promises of efficiency and optimisation. We have been slow to recognise that environmental carrying capacities are indifferent to efficiency but rather react to the volume of pollutants and emissions. For many categories of pollutants, especially CO2, these continue to increase in most parts of the world, or at least not decrease at rates necessary to avoid potential catastrophic changes. The onus is on Organisation for Economic Cooperation and Development (OECD) countries to reduce the use of conventional energy production. Substitution with renewable energy production will contribute to this, but as has so clearly been illustrated in the recent debates on biofuels, every form for energy production, renewable or not, has social and environmental consequences. The cleanest, cheapest and least intrusive way to free up more energy for basic needs is to reduce the consumption of energy for key ‘energy services’ such as heating and cooling, food chain refrigeration and (auto)mobility, to name a few. It is time to lift our heads out of the box which is built on assumptions about individual devices, atomEnergy Efficiency (2008) 1:105–106 DOI 10.1007/s12053-008-9014-x