Linking consumer energy efficiency with security of supply

Most modern energy policies seek to achieve systematic ongoing incremental increases in consumer energy efficiency, since this contributes to improved security of supply, favourable environmental outcomes and increased economic efficiency. Yet realised levels of efficiency are typically well below the most cost-effective equilibrium due to variety of behavioural and organisational barriers, which are often linked to information constraints. In addition efficient users are normally unrewarded for collective benefits to system security and to the environment, thus reducing the incentives for energy consumers to invest in efficiency improvements. This paper examines the dichotomies and symmetries between supply- and demand-side solutions to energy security concerns and reviews opportunities to overcome barriers to improved consumer efficiency. A security market is identified as a mechanism to promote both demand- and supply-side investments that support electricity system security. Such a market would assist in setting the optimal quantity of reserves while achieving an efficient balance between supply- and demand-side initiatives. It would also help to smooth overall investment throughout the energy system by encouraging incremental approaches, such as distributed generation and demand-side alternatives where they provide competitive value. Although the discussion is applicable to energy systems in general, it focuses primarily on electricity in New Zealand.     

Theory-based policy evaluation of 20 energy efficiency instruments

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.     

Energy saving and energy efficiency concepts for policy making

Departing from the concept of rational use of energy, the paper outlines the microeconomics of end-use energy saving as a result of frugality or efficiency measures. Frugality refers to the behaviour that is aimed at energy conservation, and with efficiency we refer to the technical ratio between energy input and output services that can be modified with technical improvements (e.g. technology substitution). Changing behaviour from one side and technology from the other are key issues for public energy policy. In this paper, we attempt to identify the effects of parameters that determine energy saving behaviour with the use of the microeconomic theory. The role of these parameters is crucial and can determine the outcome of energy efficiency policies; therefore policymakers should properly address them when designing policies.     

我国高校能源消耗模型构建与能效策略研究

以构建能源消耗模型为切入点,剖析我国高校的用能现状、特点及发展趋势,对我国高校的节能潜力进行量化分析,提出我国高校开展能效管理的策略。     

Environmental benefits of energy efficiency and renewable energy in Saudi Arabia's electric sector

This paper provides an evaluation of the potential environmental impacts of electric system expansion in the Kingdom of Saudi Arabia. Environmental concerns are important to consider because they represent costs to society that are not typically reflected in the price that consumers pay for electricity. In past analyses of electric expansion options in Saudi Arabia, the tendency has been to stress the direct financial costs of expanding electricity generation, transmission, and distribution infrastructure without characterizing the environment impacts of building and operating the expanded electricity system in monetary terms. Emerging national and global environmental concerns, however, suggest that an expansion of the methods traditionally used for electricity resource planning and selection to include environmental considerations would greatly benefit the Kingdom. The criteria by which resource plans are evaluated can readily be broadened to address environmental and other concerns. As part of an illustrative Integrated Resource Planning (IRP) effort undertaken by a team of Saudi utility planners and international consultants, an expanded IRP framework was used to assess the environmental costs and benefits of various approaches to meeting electricity demand projections in Saudi Arabia. The results show that making use of renewable energy and energy efficiency resources to provide energy services to the electricity consumers of Saudi Arabia can provide significant environmental benefits for the Kingdom.     

Environmental policy design,innovation and efficiency gains in electricity generation

This paper explores the relationship between environmental regulation, innovation, and competitiveness using environmental patent data. The analysis is conducted in two stages. First, a non-parametric frontier analysis is implemented to estimate efficiency scores, including a measure of technological innovation based on patent stocks. Second, econometric methods are applied to analyse the role of policy stringency and policy design on efficiency. Our estimation sample covers thermal power plant sectors in 20 countries from 1990 to 2009. The results show that the stringency of environmental regulations is a significant determinant of productive efficiency with respect to pollutant emissions as well as fuel use. However, these effects turn negative once the level of stringency leaps over a certain threshold. In addition, the paper concludes that the positive effect of regulatory stringency can be diminished by a negative effect of regulatory differentiation with measures which vary in stringency across plant size and age having negative consequences, and these effects are increasing over time. Finally, it is found that integrated approaches to environmental innovation are more likely to bring about efficiency improvements than end-of-pipe technologies.     

European Union's renewable energy sources and energy efficiency policy review: The Spanish perspective

The European Union's (EU) energy objectives, legislation and programmes are determinant for the current strategy for the promotion of renewable energy sources (RES) and energy efficiency (EE) in Spain, which is becoming a key element for its international competitiveness.Firstly, this article explores the evolution of the EU's energy strategy, focusing on the adopted legislations and programmes to promote RES and EE. It concludes with an analysis of the impact of those measures in Spain.     

Environmental effects of energy policy in sicily: The role of renewable energy

The saving of primary energy from fossil fuels and the promotion of exploitation of renewable sources are two of the most relevant goals to be achieved in order to match the climate protection target fixed by the Kyoto Protocol in 1997. For Italy, the commitment is the reduction of the greenhouse emissions by 6.5% below 1990 levels over the commitment period 2008–2012.It requires the introduction of suitable political strategies and programmes aimed to establish a sustainable energy system together with the application of a set of actions either at national scale, either at regional one. This study presents the results of a survey in the context of the Regione Sicilia about the potential saving of primary energy and the reduction of greenhouse emissions, which should be allowed by local energy planning in the energy uses. An assessment of the specific costs per unit of saved energy and of avoided CO_2eq emissions is presented for each of the actions of the Sicily Regional Energy Master Plan (REMP). The REMP proposal has been presented by the University of Palermo, Messina and Catania together with ITAE-CNR. It is up today under discussion and examination by the Regional Government.     

Lessons from energy efficiency policy and programmesin the UK from 1973 to 2013

The UK is in the process of implementing the Green Deal, a finance-based energy efficiency policy. It is aimed, initially, at the domestic sector, but with plans to extend the scheme to the commercial and public sectors. The Green Deal represents a fundamental reorganisation of policy because it places a considerable reliance on the role of markets to deliver the required energy savings. After some initial Government funding, support programmes have been curtailed or removed completely and role of government restricted to capacity building, accreditation and compliance monitoring. Will the Green Deal succeed? This paper reviews the history of energy efficiency policy and programmes in the UK from 1973 to the present day, taking account of the political environment and of the wider context of energy and climate policy development. This information is then analysed to draw out what is generally considered to be effective policy, and applies this to the current policy landscape.     

Energy demand,economic growth,and energy efficiency—the Bakun dam-induced sustainable energy policy revisited

In embarking on a dynamic course of economic development and industrial modernism, Malaysia sees the need to increase its electricity generation capacity through the development of a mega-dam project—the Bakun dam. Although hydroelectricity generation offers one of the benign options in accommodating the increasing energy consumption per capita in Malaysia, it is argued that the construction of Bakun’s dam which involves a complete and irreversible destruction of 69,640 ha of old forest ecosystem remains a difficult and uncertain endeavour. It is further argued that apart from mega-dam technology, there are also other means to orchestrate a sustainable energy system in Malaysia. These include the implementation of demand and supply initiatives, such as the deployment of energy saving technology or influencing behavioral change towards a sustainable energy consumption pattern.     

Industrial electricity demand and energy efficiency policy: the case of the Swedish mining industry

The purpose of this paper is to analyze long-run electricity demand behavior in the Swedish mining industry with special emphasis on the impact of energy prices and private research and development (R & D) on electricity use. Methodologically, we estimate a generalized Leontief variable cost function using a panel data set of nine mining operations over the time period 1990–2005. Since the lower boundary of a set of short-run cost functions confines the long-run cost function, we can compute the long-run own- and cross-price elasticities of electricity demand. The empirical results indicate that long-run electricity demand in the mining industry is sensitive to changes in the own price, and already in a baseline setting Swedish mining companies tend to allocate significant efforts towards improving energy efficiency, in part through private R & D. From a policy perspective, the results imply that taxes (and tax exemptions) on electricity can have significant long-run impacts on electricity use. Moreover, future evaluations of so-called voluntary energy efficiency programs must increasingly recognize the already existing incentives to reduce energy use in energy-intensive industries.     

Energy efficiency policy impact in India: case study of investment in industrial energy efficiency

The objective of this paper is to identify the effectiveness of energy policy and capital investment in energy efficiency technologies in the industrial sector in India. Indian energy policies relating to industrial energy efficiency over the past 25 years are briefly reviewed, and a comparison study of these energy efficiency policies and strategies in India and China has been carried out. Interviews were conducted with a number of government policy-making institutions and a national industrial development bank. The accounts of 26 industrial enterprises which applied and used a loan of the Asian Development Bank were audited for data collection. Field-visits to seven industrial entrepreneurs were undertaken in a case study. Methodologies used in this study include documentation, cross-country reviews on energy policies, questionnaire design and distribution in the industrial sector, and on-site auditing of energy efficiency technologies. This paper concludes that current energy policies and strategies in India need further improvement to promote energy efficiency investment and energy efficiency technology development in the industrial sector. This paper will interest those policy makers and industrial entrepreneurs who are willing to finance energy efficiency projects and improve energy efficiency in the industrial sector.     

Impact of energy policy instruments on the estimated level of underlying energy efficiency in the EU residential sector

The promotion of energy efficiency is seen as one of the top priorities of EU energy policy (EC, 2010). In order to design and implement effective energy policy instruments, it is necessary to have information on energy demand price and income elasticities in addition to sound indicators of energy efficiency. This research combines the approaches taken in energy demand modelling and frontier analysis in order to econometrically estimate the level of energy efficiency for the residential sector in the EU-27 member states for the period 1996 to 2009. The estimates for the energy efficiency confirm that the EU residential sector indeed holds a relatively high potential for energy savings from reduced inefficiency. Therefore, despite the common objective to decrease ‘wasteful’ energy consumption, considerable variation in energy efficiency between the EU member states is established. Furthermore, an attempt is made to evaluate the impact of energy-efficiency measures undertaken in the EU residential sector by introducing an additional set of variables into the model and the results suggest that financial incentives and energy performance standards play an important role in promoting energy efficiency improvements, whereas informative measures do not have a significant impact.     

How private car purchasing trends offset efficiency gains and the successful energy policy response

In 2006, energy-related CO₂ emissions from transport energy in Ireland were 168% above 1990 levels. Private cars were responsible for approx 45% of transport energy demand in 2006 (excluding fuel tourism). The average annual growth of new cars between 1990 and 2006 was 5.2%. This paper focuses on these new cars entering the private car fleet, in particular the purchasing trend towards larger size cars. This has considerably offset the improvements in the technical efficiency of individual car models. The analysis was carried out on the detailed data of each individual new vehicle entering the fleet in 2000–2006. The average CO₂ emissions per kilometre for new petrol cars entering the Irish fleet grew from 166 to 168 g CO₂/km from 2000 to 2005 and reduced to 164 in 2006. For diesel cars the average reduced from 166 in 2000 to 161 in 2006. The paper also discusses how a recent change in vehicle registration taxation and annual motor tax had a significant impact purchasing trends by supporting lower emission vehicles. Cars with emissions up to 155 g CO₂/km represented 41% of new private cars sold in Ireland in 2007 compared with 84% during the period July–November 2008.     

Policing the environment : Environmental and energy policy and its effect on the RE sector

Considering the EU's move not only towards the development of RE but also towards environmental protection, you may think from a policy point of view the development of RE projects would not cause too many problems. This is not always the case, however, due to the need to weigh policies favouring such schemes in the balance with other considerations for example if the development is perceived to have negative impacts on the environmental. Peter Cassidy, Partner and Head of Masons Energy Group, UK takes a look a new european environmental legislation, and if it might affect renewable projects.     

Assessment of energy efficiency performance measures in industry and their application for policy

Energy efficiency improvement is a basic yet significant way of addressing both energy security and environment concerns. There are various measures of industrial energy efficiency performance, with different purposes and applications. This paper explores different ways to measure energy efficiency performance (MEEP): absolute energy consumption, energy intensity, diffusion of specific energy-saving technology and thermal efficiency. It discusses their advantages and disadvantages, and roles within policy frameworks. Policy makers should consider the suitability of MEEP based on criteria such as reliability, feasibility and verifiability. The limitations of both energy intensity and necessity of broader all-inclusive indicators and technology diffusion indicators are also discussed. A case study on Japan's iron and steel industry illustrates the critical role of proper boundary definitions for a meaningful assessment of energy efficiency in industry. Depending on the boundaries set for the analysis, the energy consumption per ton of crude steel ranges from 16 to 21 GJ. This paper stresses the importance of a proper understanding of various methods to assess energy efficiency, and the linkage with policy objectives and frameworks. Possible next steps for improvement of MEEP, such as database development, were also discussed.     

A methodological framework for comparative assessments of equipment energy efficiency policy measures

When government policy-makers propose new policies, they need to assess the costs and benefits of the proposed policy measures to compare them to existing and alternative policies and to rank them according to their effectiveness. In the case of equipment energy efficiency regulations, comparing the effects of a range of alternative policy measures requires evaluating their effects on consumers’ budgets, on national energy consumption and economics, and on the environment. A useful methodology to perform such policy analysis should represent in a single framework the characteristics of each policy measure and provide comparable results. This paper presents an integrated methodological framework for the prospective assessment of the energy, economic, and environmental impacts of a variety of equipment energy efficiency policy measures. The framework is a comparative assessment tool for energy efficiency policy measures that (a) relies on a common set of primary data and parameters; (b) follows a single functional approach to estimate the energy, economic, and emissions savings resulting from each assessed measure; and (c) summarizes results in a set of metrics to facilitate comparative assessments. It provides a general methodology useful for evaluating a broad range of policies to promote greater equipment energy efficiency and the capability to further compare the impacts of such market interventions. The paper concludes with a demonstration of the use of the framework to compare the estimated impacts of 12 policy measures focusing on increasing the energy efficiency of gas furnaces in the USA.     

A Danish case: portfolio evaluation and its impact on energy efficiency policy

A political agreement from 2005 stated that an evaluation of the entire Danish energy efficiency policy portfolio must be carried out before the end of 2008, with the aim to assess the following: (1) Is the policy portfolio sufficient to meet the energy efficiency targets? (2) Do the policies enable the national goals to be met in a cost-effective manner? (3) Is the overall design of the policy portfolio appropriate? The evaluation gave recommendations on how to improve and develop the portfolio, mainly using cost-effectiveness as criteria. The evaluation was completed in December 2008, and this paper presents the main findings and the subsequent impact on Danish policy. A key lesson learned is the importance of including all energy efficiency policies in the evaluation. Examining the entire portfolio of policies (as opposed to only selected policies) gave way to findings that would otherwise not have been captured. With its broad perspective, the evaluation found that the policy instruments prioritised the commercial and industrial sectors less than the household and public sectors. The recommendations made by the authors contributed to the implementation of new taxes for the commercial and industrial sectors together with the reform of the Electricity Saving Trust to a Centre for Energy Savings charged with energy savings within all sectors, except transport—both which have been important steps towards a more cost-effective solution.     

Red light for Green Paper: The EU policy on energy efficiency

The EU Green Paper on energy efficiency calls for action to decrease energy use and thus achieve increased competitiveness, fulfil the environmental targets and increase security of supply. In this comment, we examine the role the EU Commission suggest that energy efficiency, and policies supporting energy efficiency, takes. The policies and the suggestions are qualitatively elaborated upon in the light of the goal of a common European electricity market. We suggest that the rationales for the energy efficiency measures are weak, and that the suggested goals of increased competitiveness, environmental targets, and security of supply are best reached with the direct measures especially designed for each goal. Some of the energy efficiency measures may counter-act other direct policies. Further, The Green Paper measures may prove detrimental to the European Electricity market insofar as the policies suggested could lead to a policy fatigue among the electricity consumers.