Role of energy efficiency standards in reducing CO2 emissions in Germany: An assessment with TIMES

Energy efficiency is widely viewed as an important element of energy and environmental policy. Applying the TIMES model, this paper examines the impacts of additional efficiency improvement measures (as prescribed by the ACROPOLIS project) over the baseline, at the level of individual sectors level as well as in a combined implementation, on the German energy system in terms of energy savings, technological development, emissions and costs. Implementing efficiency measures in all sectors together, CO₂ reduction is possible through substitution of conventional gas or oil boilers by condensing gas boilers especially in single family houses, shifting from petrol to diesel vehicles in private transport, increased use of electric vehicles, gas combined cycle power plants and CHP (combined heat and power production) etc. At a sectoral level, the residential sector offers double benefits of CO₂ reduction and cost savings. In the transport sector, on the other hand, CO₂ reduction is the most expensive, using bio-fuels and methanol to achieve the efficiency targets.