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

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.

Air conditioning market saturation and long-term response of residential cooling energy demand to climate change

Existing state-level models relating climate parameters to residential electricity consumption indicate a nominal sensitivity of 2–4% for each degree Celsius increase in ambient temperatures. Long-term climate change will also impact electricity consumption through corresponding increases in the market saturation of air conditioning. In this paper we use air conditioning market saturation data for 39 US cities to develop a generalized functional relationship between market saturation and cooling degree days. The slope of this saturation curve is particularly high for cities that currently have low to moderate saturation. As a result, the total response of per capita electricity consumption to long-term warming may be much higher than previously thought. A detailed analysis of 12 cities in four states shows that for some cities changes in market saturation may be two to three times more important than the role of weather sensitivity of current loads. While actual behavioral response to climate change will be more complicated than that captured in our model of market saturation, this approach provides a new perspective on the sensitivity of space conditioning electricity consumption in the US to climate change.     

World transport energy demand modelling : Methodology and elasticities

This paper presents the International Energy Agency's (IEA) approach of modelling transport energy demand. Fuel demand, which is not a demand per se, is derived, whenever possible, from the economic activity in the transport sector and not estimated directly, ie using one equation or (simultaneous) equation system. In general, the transport models employ a ‘two-step-approach’: in the first step, transport activity, the sector's relevant energy service, is estimated econometrically. In the second step, the transport activity projections are then combined with estimates of efficiency improvements, car turnover rates and diesel/gasoline penetration assumptions in order to arrive at projections of fuel demand. The principal advantages of this approach are that the relevant energy services are modelled and that, for model simulation, efficiency improvements can be dealt with explicitly. The effectiveness of economic instruments is a function of the reaction of consumers (and businesses) to income and price changes. An in-depth understanding of income and price elasticities of transport demand and transport energy demand is important in order to be able to assess the effectiveness of policies considered. The paper also shows the underlying long-term income and price elasticities for OECD and non-OECD regions.     

Renewable energy: a response to climate change

“We recognize the importance of renewable energy for sustainable development, diversification of energy supply, and preservation of the environment. We will ensure that renewable energy sources are adequately considered in our national plans and encourage others to do so as well. We encourage continuing research and investment in renewable energy technology, throughout the world”.Communique from the G8 Leaders’ Summit, Genoa, July 2001.The Third Assessment Report of the IPCC confirmed that the Earth’s climate is changing as a result of human activities, particularly from energy use, and that further change is inevitable. Natural ecosystems are already adapting to change, some are under threat, and it is evident that human health and habitats will be affected world-wide. Such climate changes could also affect the present supplies of renewable energy sources and the performance and reliability of the conversion technologies. This paper concentrates on the reduction of carbon dioxide emissions and the role that the global renewable energy industry might play in this regard. (The five other major greenhouse gases are given less emphasis here.) The paper compares the costs of renewable energy systems with fossil fuel-derived energy services and considers how placing a value on carbon emissions will help provide convergence. The move towards a de-carbonised world, driven partly by climate change science and partly by the business opportunities it offers, will need to occur sooner rather than later if an acceptable stabilisation level of atmospheric carbon dioxide is to be achieved. Government policy decisions made now will determine the sort of future world we wish our children to inherit. The renewable energy era has begun.     

Sensitivity of wave energy to climate change

Wave energy will have a key role in meeting renewable energy targets en route to a low carbon economy. However, in common with other renewables, it may be sensitive to changes in climate resulting from rising carbon emissions. Changes in wind patterns are widely anticipated, and this will ultimately alter wave regimes. Indeed, evidence indicates that wave heights have been changing over the last 40 years, although there is no proven link to global warming. Changes in the wave climate will affect wave energy conversion. Where the resource is restricted, there may be reductions in energy exports and, consequently, negative economic impacts. On the other hand, increased storm activity will increase installation survival risks. Here a study is presented that, for the first time, indicates the sensitivity of wave energy production and economics to changes in climate.     

Dynamic temperature dependence patterns in future energy demand models in the context of climate change

Energy demand depends on outdoor temperature in a ‘u’ shaped fashion. Various studies have used this temperature dependence to investigate the effects of climate change on energy demand. Such studies contain implicit or explicit assumptions to describe expected socio-economic changes that may affect future energy demand.This paper critically analyzes these implicit or explicit assumptions and their possible effect on the studies' outcomes. First we analyze the interaction between the socio-economic structure and the temperature dependence pattern (TDP) of energy demand. We find that socio-economic changes may alter the TDP in various ways. Next we investigate how current studies manage these dynamics in socio-economic structure. We find that many studies systematically misrepresent the possible effect of socio-economic changes on the TDP of energy demand. Finally, we assess the consequences of these misrepresentations in an energy demand model based on temperature dependence and climate scenarios. Our model results indicate that expected socio-economic dynamics generally lead to an underestimation of future energy demand in models that misrepresent such dynamics. We conclude that future energy demand models should improve the incorporation of socio-economic dynamics. We propose dynamically modeling several key parameters and using direct meteorological data instead of degree days.     

Heating and cooling energy demand and related emissions of the German residential building stock under climate change

The housing sector is a major consumer of energy. Studies on the future energy demand under climate change which also take into account future changes of the building stock, renovation measures and heating systems are still lacking. We provide the first analysis of the combined effect of these four influencing factors on the future energy demand for room conditioning of residential buildings and resulting greenhouse gas (GHG) emissions in Germany until 2060. We show that the heating energy demand will decrease substantially in the future. This shift will mainly depend on the number of renovated buildings and climate change scenarios and only slightly on demographic changes. The future cooling energy demand will remain low in the future unless the amount of air conditioners strongly increases. As a strong change in the German energy mix is not expected, the future GHG emissions caused by heating will mainly depend on the energy demand for future heating.     

Modeling global residential sector energy demand for heating and air conditioning in the context of climate change

In this article, we assess the potential development of energy use for future residential heating and air conditioning in the context of climate change. In a reference scenario, global energy demand for heating is projected to increase until 2030 and then stabilize. In contrast, energy demand for air conditioning is projected to increase rapidly over the whole 2000–2100 period, mostly driven by income growth. The associated CO₂ emissions for both heating and cooling increase from 0.8 Gt C in 2000 to 2.2 Gt C in 2100, i.e. about 12% of total CO₂ emissions from energy use (the strongest increase occurs in Asia). The net effect of climate change on global energy use and emissions is relatively small as decreases in heating are compensated for by increases in cooling. However, impacts on heating and cooling individually are considerable in this scenario, with heating energy demand decreased by 34% worldwide by 2100 as a result of climate change, and air-conditioning energy demand increased by 72%. At the regional scale considerable impacts can be seen, particularly in South Asia, where energy demand for residential air conditioning could increase by around 50% due to climate change, compared with the situation without climate change.     

The role of energy-service demand reduction in global climate change mitigation: Combining energy modelling and decomposition analysis

In order to reduce energy-related CO₂ emissions different options have been considered: energy efficiency improvements, structural changes to low carbon or zero carbon fuel/technologies, carbon sequestration, and reduction in energy-service demands (useful energy). While efficiency and technology options have been extensively studied within the context of climate change mitigation, this paper addresses the possible role of price-related energy-service demand reduction. For this analysis, the elastic demand version of the TIAM–UCL global energy system model is used in combination with decomposition analysis. The results of the CO₂ emission decomposition indicate that a reduction in energy-service demand can play a limited role, contributing around 5% to global emission reduction in the 21st century. A look at the sectoral level reveals that the demand reduction can play a greater role in selected sectors like transport contributing around 16% at a global level. The societal welfare loss is found to be high when the price elasticity of demand is low.     

American policy conflict in the greenhouse: Divergent trends in federal,regional, state,and local green energy and climate change policy

Climate change threatens significant impacts on global ecosystems and human populations. To address this challenge, industrialized nations have ratified the Kyoto Protocol and undertaken commitments to reduce emissions of greenhouse gases, the primary agents linked to anthropogenic alteration of earth's climate. By contrast, the US government, led by the Bush Administration, has rejected mandatory targets for curbing emissions under the Protocol, and has instead pursued voluntary mitigation measures amid a larger push for clean coal and “next generation” nuclear technologies. These actions in total have fueled global perceptions that the US is not acting in substantial ways to address climate change. Nevertheless, action within the US is indeed moving forward, with states, cities and regional partnerships filling the federal leadership vacuum. This paper reviews the diverse policies, strategies, and cooperative frameworks that have emerged at regional, state and local levels to guide climate protection, and identifies the environmental and economic benefits linked to such programs. The paper also attempts to explain the existing federal impasse on climate policy, with attention given to how sub-national efforts may ultimately obviate national governmental inaction.     

Tackling climate change and promoting the energy revolution

Following the Paris Agreement, green and low-carbon development has entered into a new stage. China’s international responsibility to combat climate change is consistent with the inherent sustainable development needs of the country. In this paper, the reasonability of China’s Intended Nationally Determined Contributions (INDC) is examined and the fact that lowcarbon development can lead to modernization is demonstrated based on data analysis of energy economics from developed countries. Considering the fact that such an energy revolution forms the basis for China’s low-carbon transition, a roadmap of the China’s energy utilization is presented. Based on research results from the Chinese Academy of Engineering, the three historical stages of China’s energy structure reform are analyzed. Promoting a low-carbon transition through an energy revolution is a long-term and arduous process that requires a genuine transformation of development outlook and patterns. By empirically analyzing situations at home and abroad, a conclusion is made that economic development and a lowcarbon transition can be achieved simultaneously; specifically, low-carbon development fosters new points of economic growth and gives rise to different development paths.     

Nuclear power,climate change and energy security: Exploring British public attitudes

Public attitudes towards nuclear power in the UK have historically been deeply divided, but as concern about climate change and energy security has exerted an increasing influence on British energy policy, nuclear power has been reframed as a low-carbon technology. Previous research has suggested that a significant proportion of people may ‘reluctantly accept’ nuclear power as a means of addressing the greater threat of climate change. Drawing on the results of a national British survey (n=1822), the current study found that attitudes towards nuclear remain divided, with only a minority expressing unconditional acceptance. In general, people who expressed greater concern about climate change and energy security and possessed higher environmental values were less likely to favour nuclear power. However, when nuclear power was given an explicit ‘reluctant acceptance’ framing – allowing people to express their dislike for nuclear power alongside their conditional support – concerns about climate change and energy security became positive predictors of support for nuclear power. These findings suggest that concern about climate change and energy security will only increase acceptance of nuclear power under limited circumstances—specifically once other (preferred) options have been exhausted.     

The vulnerability of renewable energy to climate change in Brazil

Energy supply in Brazil relies heavily on renewable energy source. The production of energy from renewable sources, however, greatly depends on climatic conditions, which may be impacted in the future due to global climate change (GCC). This paper analyzes the vulnerabilities of renewable energy production in Brazil for the cases of hydropower generation and liquid biofuels production, given a set of long-term climate projections for the A2 and B2 IPCC emission scenarios. The most important result found in this study is the increasing energy vulnerability of the poorest regions of Brazil to GCC. Both biofuels production (particularly biodiesel) and electricity generation (particularly hydropower) may negatively suffer from changes in the climate of those regions. Other renewable energy sources—such as wind power generation—may also be vulnerable, raising the need for further research. However, the results found are fundamentally dependent on the climate projections which, in turn, are still highly uncertain with respect to the future evolution of greenhouse gas emissions, greenhouse gas concentrations in the atmosphere and GCC. Therefore, in such long-term scenario analyses, the trends and directions derived are the ones to be emphasized rather than the precise results one arrives.     

Long-term security of energy supply and climate change

Security of energy supply and climate change are central concerns for policy makers and important dimensions of the long-term quest for a sustainable global energy system. This paper examines the role of several policy instruments in managing energy security and climate risks and stimulating technological change towards a more secure and climate-benign global energy system in the long-term future. The analysis has been conducted with ERIS, a multi-regional energy-systems “bottom-up” optimization model with technology learning. Our analysis provides some policy insights and identifies synergies and trade-offs relating to the potential for security of supply policies to promote the uptake of new technologies, reduce the cost of pursuing climate change mitigation policies, and facilitate a possible transition to a hydrogen economy.     

Regional energy rebound effect: The impact of economy-wide and sector level energy efficiency improvement in Georgia,USA

Rebound effect is defined as the lost part of ceteris paribus energy savings from improvements on energy efficiency. In this paper, we investigate economy-wide energy rebound effects by developing a computable general equilibrium (CGE) model for Georgia, USA. The model adopts a highly disaggregated sector profile and highlights the substitution possibilities between different energy sources in the production structure. These two features allow us to better characterize the change in energy use in face of an efficiency shock, and to explore in detail how a sector-level shock propagates throughout the economic structure to generate aggregate impacts. We find that with economy-wide energy efficiency improvement on the production side, economy-wide rebound is moderate. Energy price levels fall very slightly, yet sectors respond to these changing prices quite differently in terms of local production and demand. Energy efficiency improvements in particular sectors (epicenters) induce quite different economy-wide impacts. In general, we expect large rebound if the epicenter sector is an energy production sector, a direct upstream/downstream sector of energy production sectors, a transportation sector or a sector with high production elasticity. Our analysis offers valuable insights for policy makers aiming to achieve energy conservation through increasing energy efficiency.     

Smart grids: Another step towards competition,energy security and climate change objectives

The deployment of smart grids in electricity systems has given rise to much interdisciplinary research. The new technology is seen as an additional instrument available to States to achieve targets for promoting competition, increasing the safety of electricity systems and combating climate change. But the boom in smart grids also raises many economic questions. Public policies will need to be adapted, firstly to make allowance for the potential gains from smart grids and the associated information flow, and secondly to regulate the new networks and act as an incentive for investors. The new competitive offerings and end-user pricing systems will contribute to improving allocative and productive efficiency, while minimizing the risks of market power. With real-time data on output and consumption, generators and consumers will be able to adapt to market conditions. Lastly smart grids will boost the development of renewable energy sources and new technologies, by assisting their integration and optimal use.     

A new approach to measuring the rebound effect associated to energy efficiency improvements: An application to the US residential energy demand

This paper brings attention to the fact that the energy demand frontier model introduced by Filippini and Hunt (2011, 2012) is closely connected to the measurement of the so-called rebound effect associated with improvements in energy efficiency. In particular, we show that their model implicitly imposes a zero rebound effect, which contradicts most of the available empirical evidence on this issue. We relax this restrictive assumption through the modelling of a rebound-effect function that mitigates or intensifies the effect of an efficiency improvement on energy consumption. We illustrate our model with an empirical application that aims to estimate a US frontier residential aggregate energy demand function using panel data for 48 states over the period 1995 to 2011. Average values of the rebound effect in the range of 56–80% are found. Therefore, policymakers should be aware that most of the expected energy reduction from efficiency improvements may not be achieved.     

An integrated assessment of climate change,air pollution,and energy security policy

This article presents an integrated assessment of climate change, air pollution, and energy security policy. Basis of our analysis is the MERGE model, designed to study the interaction between the global economy, energy use, and the impacts of climate change. For our purposes we expanded MERGE with expressions that quantify damages incurred to regional economies as a result of air pollution and lack of energy security. One of the main findings of our cost–benefit analysis is that energy security policy alone does not decrease the use of oil: global oil consumption is only delayed by several decades and oil reserves are still practically depleted before the end of the 21st century. If, on the other hand, energy security policy is integrated with optimal climate change and air pollution policy, the world’s oil reserves will not be depleted, at least not before our modeling horizon well into the 22nd century: total cumulative demand for oil decreases by about 24%. More generally, we demonstrate that there are multiple other benefits of combining climate change, air pollution, and energy security policies and exploiting the possible synergies between them. These benefits can be large: for Europe the achievable CO₂ emission abatement and oil consumption reduction levels are significantly deeper for integrated policy than when a strategy is adopted in which one of the three policies is omitted. Integrated optimal energy policy can reduce the number of premature deaths from air pollution by about 14,000 annually in Europe and over 3 million per year globally, by lowering the chronic exposure to ambient particulate matter. Only the optimal strategy combining the three types of energy policy can constrain the global average atmospheric temperature increase to a limit of 3 °C with respect to the pre-industrial level.     

The UK solar energy resource and the impact of climate change

Solar energy use in the UK is increasing dramatically, providing both heat energy and generation of electricity. This trend is expected to continue due to solar technologies becoming cheaper and more readily available along with low carbon government legislation such as the Renewable Heat Incentive (RHI) and Feed in Tariffs (FiTs) supporting solar energy deployment. However, the effects of climate change on the solar resource remain largely unstudied. Climate change affects cloud cover characteristics and consequently directly affects the performance of solar energy technologies.This paper investigates the UK solar irradiation resource for both the present and future climates.The present solar irradiation level was assessed through the conversion of 30 years of observed historical monthly average sunshine duration data. The method and results are validated by comparing the converted solar irradiation levels to actual solar irradiance measurements at weather stations with significant historical records of solar irradiance data.The impact of climate change is investigated across different regions of the UK by using the UKCP09 probabilistic climate change projections.We find that the current average UK annual solar resource is 101.2 Wm⁻², ranging from 128.4 Wm⁻² in the south of England to 71.8 Wm⁻² in the northwest of Scotland. It seems likely that climate change will increase the average resource in the south of the UK, while marginally decreasing it in the Northwest. The overall effect is a mean increase of the UK solar resource, however it will have greater seasonal variability and discrepancies between geographical regions will be reinforced.