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
| Mar 1, 2011
Honeywell to implement China’s first smart grid project for managing energy use in commercial buildings
Honeywell announced it was selected to develop and implement China’s first smart grid pilot project and feasibility study for managing energy use in commercial buildings, also known as demand-side management. The project is part of a grant agreement signed today between the U.S. Trade and Development Agency (USTDA) and State Grid Electric Power Research Institute (SGEPRI), sponsor of the project and a subsidiary of State Grid Corp. of China.
| Feb 22, 2011
Military tests show copper increases HVAC efficiency, reduces odors
Recent testing, which is being funded by the Department of Defense, is taking place in military barracks at Fort Jackson, South Carolina. Side-by-side comparisons demonstrate that air conditioning units made with copper suppress the growth of bacteria, mold, and mildew that cause odors and reduce system energy efficiency.
| Feb 10, 2011
Zero Energy Buildings: When Do They Pay Off in a Hot and Humid Climate?
There’s lots of talk about zero energy as the next big milestone in green building. Realistically, how close are we to this ambitious goal? At this point, the strategies required to get to zero energy are relatively expensive. Only a few buildings, most of them 6,000 sf or less, mostly located in California and similar moderate climates, have hit the mark. What about larger buildings, commercial buildings, more problematic climates? Given the constraints of current technology and the comfort demands of building users, is zero energy a worthwhile investment for buildings in, for example, a warm, humid climate?
| Feb 9, 2011
Fortune 1000: Despite moral obligation to sustainability, cash is still king
Eighty-eight percent of Fortune 1000 senior executives feel business has a moral responsibility, beyond regulatory requirements, to make their companies more energy efficient, according to a new poll released today by Harris Interactive and commissioned by Schneider Electric. At the same time, the vast majority (61%) of respondents say that potential cost savings are their biggest motivator to save energy at the enterprise-level, outranking environmental concerns (13%) or government regulations (2%).
| Feb 4, 2011
U.S. Green Building Council applauds President Obama’s Green Building Initiative
The U.S. Green Building Council applauded a key element of President Obama’s plan to “win the future” by making America’s commercial buildings more energy- and resource-efficient over the next decade. The President’s plan, entitled Better Buildings Initiative, catalyzes private-sector investment through a series of incentives to upgrade offices, stores, schools and universities, hospitals and other commercial and municipal buildings.
| Feb 4, 2011
President Obama: 20% improvement in energy efficiency will save $40 billion
President Obama’s Better Buildings Initiative, announced February 3, 2011, aims to achieve a 20% improvement in energy efficiency in commercial buildings by 2020, improvements that will save American businesses $40 billion a year.
| Jan 25, 2011
Bloomberg launches NYC Urban Tech Innovation Center
To promote the development and commercialization of green building technologies in New York City, Mayor Michael R. Bloomberg has launched the NYC Urban Technology Innovation Center. This initiative will connect academic institutions conducting underlying research, companies creating the associated products, and building owners who will use those technologies.
