Avoided energy use attributable to energy-efficiency investments undertaken since 1974 has resulted in a contribution outstripping the annual consumption of oil, natural gas, electricity, and coal, according to a report by the International Energy Agency, a global NGO.
An analysis of energy consumption in 11 IEA member countries indicates that avoided annual energy use in 2010 was 63 exajoules, or the equivalent of 1.52 billion tonnes of oil. This avoided energy use was larger than the countries' consumption of oil (43 EJ), electricity and natural gas (22 EJ each), and coal (less than 10 EJ).
The equivalent cost of oil for 63 exajoules of energy would have been about $420 billionUS. (Countries included in the analysis were Australia, Denmark, Finland, France, Germany, Italy, Japan, the Netherlands, Sweden, the United Kingdom, and the United States.)
Investments in energy efficiency measures have also reduced the amount of energy needed to produce each unit of gross domestic product, according to the report. As of 2011, total investment in energy efficiency resembled the supply-side investment in renewable or fossil-fuel electricity generation.
However, fossil-fuel development benefits from a much higher level of government subsidies than energy-efficiency measures. In 2011, fossil fuels were the recipient of more than $500 billion in global subsidies, compared with less than $100 billion in subsidies for renewable energy (below).
Table: Global investments and subsidy in selected areas of the energy system, 2011. Source: IEA.
The IEA indicates that governmental policy interventions are the most significant stimulant for energy-efficiency investments. High energy prices are also triggering expansion of the energy-efficiency market, though subsidies for fossil fuels continue to artifically reduce the price consumers pay for energy.
Performance improvements in buildings are targeted as an important factor in continued reduction of global energy use. The report discusses notable investments in this area by Germany, New Zealand, France, and Mexico, mainly involving residential construction.
For the medium term, the IEA predicts that private investment enabled by favorable government policies, rather than direct public investment, will continue to represent the greatest source of funding for energy-efficiency projects.
Influential changes in codes and standards in Canada, France, Germany, South Korea, China, Japan, and the U.K. should drive growth in the energy-efficiency sector. For the U.S., new standards for appliances and continued growth in the ESCO industry may be significant.
Continued savings should be possible during the next decade, according to the agency, perhaps amounting to about 7% of 2010's total global consumption--or greater than the combined current energy use of Australia, Japan, Korea, and New Zealand.
Click here for the full report.
The editors thank Grumman / Butkus Associates for bringing this report to our attention.
Related Stories
| Jan 26, 2012
Siemens launches smoke detection knowledge center
New knowledge center web site demonstrates efficacy of smoke detection.
| Jan 26, 2012
Hendrick Construction completes Osso Restaurant in Charlotte
Designed by François Fossard, Osso's upscale interior includes tapered, twisted decorative columns and an elegant fireplace in the center of the lounge.
| Jan 26, 2012
HOK partners with USGBC on design of Haiti children's center
Passive design principles give form to a sustainable, restorative environment for the children of Haiti.
| Jan 26, 2012
American Standard names Gould as president and CEO
Gould succeeds Don Devine, who led the successful turnaround of American Standard Brands.
| Jan 19, 2012
LEED puts the 'Gold' in Riverside golden arches
McDonald's restaurant recognized for significant energy savings.
| Jan 17, 2012
FxFowle and CO Architects form joint venture
FxFowle and CO Architects creates a dynamic alliance built on a shared dedication to collaboration in process, innovation in programming, and excellence in design.
| Jan 15, 2012
Smith Consulting Architects designs Flower Hill Promenade expansion in Del Mar, Calif.
The $22 million expansion includes a 75,000-square-foot, two-story retail/office building and a 397-car parking structure, along with parking and circulation improvements and new landscaping throughout.
| Jan 15, 2012
535 Madison Avenue achieves LEED Gold certification
Class-A commercial building meets sustainability requirements of LEED Program.
| Jan 12, 2012
Building independence: New take on female power
Memoir explores historic engineering project, women's empowerment era.