Energy efficiency governance in the EU-28: analysis of institutional,human, financial,and political dimensions

The European Union in line with its climate and energy strategy has presented a renewed ambition for the post-2020 period, towards 2030, through the Clean Energy for All Europeans policy package proposals. A new binding target of minimum 30% for energy efficiency improvements is in the horizon, as well as the identified need for a stronger governance framework to support its delivery. This research contributes to a better understanding of energy efficiency governance by analysing a set of indicators covering aspects related to institutional, human, financial, and political dimensions. The results obtained provide a more detailed perspective on the European Union level and Member State governance capacities. These indicate the need to develop institutional capacities related to the transposition of legislation and directives. In parallel, the disparities between individual Member State governance capacities should be considered when devising and implementing future policies. The implications for policymakers include the need for a more robust governance monitoring and reporting system, including the development of transparent and comparable indicators, as well as a more comprehensive assessment of the impact of good governance on delivering energy efficiency improvements.     

German and Norwegian policy approach to residential buildings’ energy efficiency—a comparative assessment

Buildings in private and domestic use are responsible for about 30% of the global greenhouse gas emissions attributable mainly to their need for heating and cooling energy. This corresponds to about 40% of the global final energy consumption. Therefore, a viable implementation of building energy efficiency policies is inevitable to realize a transformation of the energy system to mitigate climate change. Within the building sector lies a huge potential for emission reduction consisting in the renovation of the existing building stock and climate-friendly building guidelines applicable to new constructions, both adapting CO₂-neutral technology solutions. However, as there are several different pathways leading to a decarbonized energy system, there is always the question which political and technological solutions are most efficient, effective, and feasible. This paper aims to analyze building efficiency policy measures and instruments and the related technological solutions in two front-runner countries of the energy transition, possessing different structural conditions: Germany and Norway. We hence apply a comparative approach which allows us to present and assess the policies in place. The paper answers three research questions: (1) Which policies prevail in Germany and Norway to foster the deployment of energy efficient and decarbonized solutions for residential buildings? (2) How do these policies respond to country-specific barriers to the energy transition in the building sector, and (3) What effects do they have on the actual implementation of technological and societal solutions? This research provides a new insight to the highly relevant topic of energy efficiency in buildings in the context of international Intended Nationally Determined Contribution benchmarking and discusses some unsolved trade-offs in the translation of the global climate governance into the national building sector.     

An exploration of possible design options for a binding energy savings target in Europe

As Europe is not on track in meeting its 2020 energy savings target, there has been quite some debate to make the energy savings target binding instead of indicative. Although the final draft text of the Energy Efficiency Directive left the option of a binding target explicitly open for the period beyond 2014, this statement has watered down in the adopted Directive: If still not on track mid-2014, the European Commission will propose “further measures.” In this paper, we argue that a binding energy savings target could be the first EU legal initiative to look beyond 2020 serving as a beacon for other policies such as for renewables and greenhouse gases that need redefinition after 2020. We therefore explore four possible design options of a binding savings target and assess their feasibility. We conclude that a binding target at Member State level (opposed to an EU-wide target like for the EU Emission Trading System (ETS)) is the most feasible. A binding target at Member State level would ensure political accountability and commitment to deliver results while providing flexibility to choose and apply the most suitable tools to achieve the target. It could provide a framework to guide ambitious and coherent implementation of EU energy efficiency policies, as well as the strengthening of national policies. Furthermore, binding targets at Member State level will make Member States take an ambitious position in Brussels when new energy or CO₂ performance standards for appliances and transport modes are to be set. A Member State binding target applied to end-users (excluding ETS companies) is a design option that covers the vast majority of the cost-effective energy savings potential, maintains the flexibility for ETS companies, and supports the most cost-effective achievement of a greater share of renewables.     

Implications of process energy efficiency improvements for primary energy consumption and CO2 emissions at the national level

The improvement of energy efficiency is seen as one of the most promising measures for reducing global CO₂ emissions. However, the emission reduction potential may seem different from the industrial plant and policy-maker’s perspectives. This paper evaluates the influences of process heat conservation on CHP electricity production, primary energy consumption and CO₂ emissions from both the mill site and national perspectives. The results indicate that heat conservation in an industrial process may lead to varying results in primary energy consumption and CO₂ emissions, depending on the form of marginal heat production used at the mill site. In the CHP process, reduction of the heat load lowers electricity production, and this reduction may have to be compensated for at the national level. Therefore, the energy conservation potential in industry has to be evaluated by taking into account the connections to the outside society, which means that a wider system boundary than a mill site has to be used. This study demonstrates by theoretical analysis and case mill studies the magnitude of the effects of system boundary definition when evaluating the contribution of an individual energy efficiency investment towards fulfilling the commitment to reduce CO₂ emissions at the national level.     

Energy efficiency improvement procedures and audit results of electrical,thermal and solar applications in Palestine

Energy conservation in utilities has played a vital role in improving energy efficiency in the industrial, commercial and residential sectors. The electrical energy consumption in Palestine has increased sharply in the past few years and achieved by the end of 2001 to 10% per year. It is expected that this percentage will increase to about 12% if the current political situation will end hopefully with peace. Modern energy efficient technologies are needed for the national energy policy. Such technologies are investigated in this paper. Implementing of a national 3 years project aiming at energy efficiency improvement in residential and industrial sectors as well as in public utilities, which include wide range of diversified audits and power measurements, had led to creating this paper. Measurement and audit results had shown that the total conservation potential in these sectors is around 15% of the total energy consumption. The associated costs of the investment in this field are relatively low and correspond to a pay back period varying in the range from 6 to 36 months. Consequently, the energy conservation policy will be seriously improved in the forthcoming years. It is estimated that 10% of the new energy purchasing capacity will be reduced accordingly.     

Energy and agriculture in developing countries

The author explains trends in energy use in agriculture in developing countries at the global, national and farm level. It is shown that energy input in traditional agriculture is quite significant if the role of animals is taken into account. The author explains how currently agriculture makes a net energy contribution towards meeting the basic needs of cooking, heating and local industry, and with the modernization of agriculture, the availability of crop residues and animal wastes is expected to decline, widening the gap between demand and supply of energy for the survival needs of the poor in developing countries. The author states that there is an immediate need to initiate policies and programmes — such as energy pricing, subsidies, biogas plants and gasification units — to improve the efficiency of agro-energy.     

UK Local Authority engagement with the Energy Service Company (ESCo) model: Key characteristics,benefits, limitations and considerations

This paper explores how some UK Local Authorities (LAs) have opted to engage with the Energy Service Company (ESCo) model in a bid to enhance their influence over local energy system change and help them to deliver on their political ‘public good’ objectives. Three common approaches to LA ESCo model engagement are outlined including the: (1) LA owned ‘arm's-length’ model; (2) private sector owned concession agreement model; and (3) community owned and run model. The LA's decision to establish its own ESCo, or alternatively enter into a partnership with another, predominantly depends on: its willingness to expose itself to risk, the level of strategic control it desires and the resources it has at its disposal. However, the business case is contingent on the extent to which the national policy and regulatory framework facilitates and obligates LAs to play an active energy governance role. Stronger alignment of local and national energy agendas through communication and coordination between different governance actors could help to remove critical barriers to LA ESCo engagement and their wider energy governance activities.     

Who governs energy? The challenges facing global energy governance

This article conceptualizes the energy problems facing society from a global governance perspective. It argues that a notion of “global energy governance,” taken to mean international collective action efforts undertaken to manage and distribute energy resources and provide energy services, offers a meaningful and useful framework for assessing energy-related challenges. The article begins by exploring the concepts of governance, global governance, and global energy governance. It then examines some of the existing institutions in place to establish and carry out rules and norms governing global energy problems and describes the range of institutional design options available to policymakers. It briefly traces the role of a selection of these institutions, from inter-governmental organizations to summit processes to multilateral development banks to global action networks, in responding to energy issues, and points out their strengths and weaknesses. The article concludes by analyzing how the various approaches to global governance differ in their applicability to addressing the conundrums of global energy problems.     

Centralisation and decentralisation in strategic municipal energy planning in Denmark

Denmark's future energy system is to be entirely based on renewable energy sources. Municipalities will play an important role as local energy planning authorities in terms of adopting and refining this vision in different local contexts. Based on a review of 11 municipal energy plans, this paper examines to what extent municipal energy planning matches national 100% renewable energy strategies. The results indicate a willingness among Danish municipalities to actively carry out energy planning, and the plans reveal a large diversity of (new) activities. At the same time, however, there is a strong need for better coordination of municipal energy planning activities at the central level. It is suggested that the role of municipalities as energy planning authorities needs to be outlined more clearly in, e.g., strategic energy planning which integrates savings, efficiency and renewable energy in all (energy) sectors. This requires the state to provide municipalities with the necessary planning instruments and establish a corresponding planning framework. Consequently, there is a need for a simultaneous centralisation and decentralisation during the implementation of the 100% renewable energy vision. The paper outlines a basic division of tasks between the central and the local level within such a strategic energy planning system.     

The development of a legislative framework for renewable energy and energy conservation

In the absence of any likely international law in the near future to impose comprehensive obligations on nations to take action to promote renewable energy or energy conservation, such action will be required at national level. This paper proposes a generic legislative framework for the control and development of all types of renewable energy and energy conservation. This framework can be adopted, subject to suitable modification according to local conditions and the prevailing legal system, by all interested nations. The framework would replace the piecemeal, ad hoc approach to law reform which characterises past developments in this area.     

A comparison of the environmental benefits of bagasse-derived electricity and fuel ethanol on a life-cycle basis

The energetic utilisation of agricultural residues is considered to be an important element in any strategy to achieve renewable energy targets. In the approximately 80 cane-sugar producing countries there is potential to make better use of the fibrous residue known as bagasse. Subject to improved energy efficiency, sugar producers could supply energy either as “green”, co-generated electricity, or as fuel ethanol through cellulose hydrolysis followed by fermentation. This paper compares their projected environmental benefits from a life-cycle perspective, using South African data. Mass and energy analyses were prepared for the two systems and a base case (producing sugar with current methods), relative to the annual sugarcane production on one hectare. In both cases, the environmental burdens avoided by replacing an equivalent amount of fossil energy were included. The results obtained confirm that for all the impact categories considered, both “bioenergy” products result in environmental benefits. The co-generation option results in lower energy-related emissions (i.e. lower global warming, acidification and eutrophication potentials), whereas the fuel ethanol option is preferred in terms of resource conservation (since it is assumed to replace oil not coal), and also scores better in terms of human and eco-toxicity if assumed to replace lead-bearing oxygenates.     

China's experiment on the differential electricity pricing policy and the struggle for energy conservation

Differential electricity pricing was promulgated by China's central government to guide the development of high energy-consuming industries, which are significant for energy conservation. This paper examines the twists and turns of the policy implementation at the provincial level, and seeks to elucidate the difficulties in its implementation. Local governments, concerned that following the central directives would hurt local interests, have tried to deviate from the central orders while the central revises the policy from time to time to ensure local compliance. Three difficulties are analyzed: (1) the current relations between the central and local energy regulatory institutions make these local institutions difficult to perform their duties, and affect incentives for local governments to respond to central directives; (2) financial reform puts a great burden on local governments to raise revenues to cover expenditures, making local governments focus mainly on economic development rather than serving merely as political agents of the central government; (3) the aggressive attitude of local governments in pursuing GDP growth is not necessarily driven by the central government, but by pressure from competition among localities and the need to win local support. Solving these difficulties is important for making national energy conservation polices effective and efficient.     

The 25 IEA energy efficiency policy recommendations to the G8 Gleneagles Plan of Action

The imperative to pursue energy efficiency improvements is clearly on the political agenda at all levels of governments. This paper explores the lessons from past attempts at galvanising international efforts to expand energy efficiency activities through the use of international-level recommendations. Drawing on these lessons, the paper outlines the IEA response to the call for policy advice on energy efficiency through the G8 Gleneagles Plan of Action. Specifically, the paper outlines a ‘necessary conditions’ framework that was used to develop a set of energy efficiency policy priorities and describes the subsequent recommendations presented to the G8 in Hokkaido–Toyako Summit in 2008. The recommendations cover 25 fields of action in seven priority areas: buildings, appliances, lighting, transport, industry, energy utilities and cross-sectoral issues. Together, the suite of recommendations sets out an ambitious road map for global energy efficiency improvement. If implemented globally without delay, they could save around 8.2 GtCO₂/yr or 96 EJ/yr by 2030. This is equivalent to roughly twice the current total EU energy-related CO₂ emissions.     

Multi-actor governance of sustainable biofuels in developing countries: The case of Mozambique

This paper describes and analyses the multi-actor governance process that made Mozambique the first African nation-state to develop a national policy framework for sustainable biofuels. The paper draws on findings from action research conducted in Mozambique between December 2008 and July 2012. We analyse interactions between the changing governance context, the course of the multi-actor governance process, and the choices in relation to governance framework characteristics and content for four successive stages of governance framework development. This provides the basis for reflection on the competences required for effective multi-actor sustainability governance, and a discussion about the role of the nation-state in sustainability governance of global economies such as biofuels.The governance framework for sustainable biofuels has contributed to a more transparent and secure investment climate for biofuels in Mozambique. Key factors for success were (1) the presence of different types of competences during the various stages of the governance framework development, (2) closing the gap between ‘licences to sell’ and ‘licences to produce’ across different governance levels, and (3) balancing between the short- and long-term objectives for biofuel production in Mozambique and requirements of global biofuel markets. Developing-country nation-states can provide an essential contribution to these success-factors for global governance of sustainable biofuels.     

Sustainable energy development: performance and prospects

Concerns about sustainability, and the harsh realities of environmental catastrophe, can be traced back at least 4000 years. This paper points out how human pressures on the surrounding environment have had severe consequences over this period, coal burning has had adverse consequences traceable over the past 750 years, and the adverse environmental impacts of using other fossil fuels have aroused attention more recently. Heightened awareness of the need for sustainable development is a modern development, evident in international and national debates since the early 1970s. With the Brundtland Commission report published in 1987 came a framework for sustainable energy development. However, performance under the four elements of that framework have been almost uniformly disappointing. Fossil fuel use has continued to rise; renewable energy use has made insufficient inroads; waste and inefficiency in energy usage continues to be far too high; too many people remain without modern energy services or are exposed to severe pollution in the home and local atmosphere; there are mounting concerns about the conventional oil resource base—and future supplies and prices of oil and natural gas; greenhouse gas emissions continue to rise and evidence of human-induced climate change continues to mount. Indices of national environmental performance suggest no country is performing adequately; population, housing and transportation pressures result in greater pollution, loss of natural habitats, and species reduction; and poor governance is frequently cited as a major cause of poor environmental performance. The prospects for sustainable energy are bleak on current trends.     

我国能源战略若干问题的思考

全球金融危机对国家战略提出了新挑战,促使我们把能源战略提升到国家长期发展战略的高度。美国奥巴马政府把能源产业集群的整体改革作为新战略的核心,这给了人们重要的启示。我国经济发展虽然有良好的基本面,但要解决面临的问题,必然要有战略上的大调整、大提升。我国能源战略应从能源自给提升到能源自主;从多元化提升到绿色主导下的多元化;从供应保障提升到效率优先;政府从解决能源矛盾提升到引导和监管;从节能要求提升到节能举措;从货币核算提升到国际能量通货本位制创新。     

Scenario-based energy efficiency and productivity in China: A non-radial directional distance function analysis

Improving energy efficiency and productivity is one of the most cost-effective ways for achieving the sustainable development target in China. This paper employs non-radial directional distance function approach to empirically investigate energy efficiency and energy productivity by including CO₂ emissions as an undesirable output. Three production scenarios, namely energy conservation (EC), energy conservation and emission reduction (ECER), and energy conservation, emission reduction and economic growth (ECEREG), are specified to assess China's energy efficiency and productivity growth during the period of Eleventh Five-Year Plan. Our empirical results show that there exist substantial differences in China's total-factor energy efficiency and productivity under different scenarios. Under the ECEREG scenario, the national average total-factor energy efficiency score was 0.6306 in 2005–2010, while the national average total-factor energy productivity increased by 0.27% annually during the period. The main driving force for energy productivity growth in China was energy technological change rather than energy efficiency change.     

Hydrogen strategy as an energy transition and economic transformation avenue for natural gas exporting countries: Qatar as a case study

In the wake of the apparent impacts of climate change, the world is searching for clean energy transformations and a consequent transition to a carbon-neutral economy and life. The intermittent nature of renewable energy sources introduces several risks, and efficient energy storage technologies are developed to circumvent such issues. However, these storage methods also come with additional costs and uncertainties. Hydrogen is considered a viable option as an energy carrier and storage medium, offering versatility to the energy mix. This study reviews hydrogen production, storage, transmission, and applications avenues, describes the current global hydrogen market and compares national hydrogen strategies. A framework for evaluating the relative competitiveness of natural gas-exporting countries as hydrogen exporters is developed. Qatar's national hydrogen strategy should focus on blue and turquoise hydrogen production in the short/medium term with a mix of green hydrogen in the future term and investment in technological research and development to compete with other gas exporters that have abundant renewable energy potential.     

Energy Efficiency Award system in Malaysia for energy sustainability

Many countries have organised energy awards as an instrument to promote energy efficiency (EE), to contribute towards energy sustainability and to provide a mechanism for organisations to continuously search, benchmark and acknowledge initiatives and best practices in EE. To be effective, an award system must be tailored towards the needs, the level of readiness and the acceptance of a nation. This paper presents a framework for implementation of a national EE award in the context of Malaysia. The current energy scenario and energy issues relevant to Malaysia are first highlighted to establish the premise for organising a national energy award. Models and success stories of EE awards in other countries are discussed as possible benchmarks for implementation. The results of a survey conducted on various energy stakeholders in Malaysia confirmed the needs, readiness and acceptance for a national EE award. A framework for the implementation of a Malaysian EE award is proposed based on the survey conducted, and on various models of energy award implementation worldwide.     

Residential energy efficiency investment and behavioural response under different electricity pricing schemes: a physical-microeconomic approach

ABSTRACT

The purpose of this paper is to analyze the effects of electricity price changes and energy efficiency subsidy on household energy efficiency purchase and/or behavioural adjustment decisions. The analysis adds energy efficiency investment to a methodology that merges the physics of energy with microeconomic principles. The physical side informs the amount of electricity used to satisfy services that people desire, while the microeconomic side imposes a utility function that represents a household’s welfare. Several electricity pricing schemes and energy efficiency options are examined, with costs and benefits of each option explicitly modeled in the physical representation. Several insights are derived from performing an analysis for archetypical villas across Saudi Arabia. One, energy efficiency purchases lower the need for energy conservation. Households also lessen the extent to which they practice conservation as energy efficiency subsidies are raised. Additionally, as energy efficiency subsidies and electricity prices rise, the difference in household spending on other goods and services widens between the highest efficiency case and no added efficiency. This indirect rebound causes a situation where firms would increase their production, and thus energy use, to meet the additional demand by households for their goods.