[Graeme]

IEA: Treat energy efficiency as ‘world’s first fuel’

$this->bbcode_second_pass_quote('', 'G')lobal energy saving investments - and their effects on energy demand - are now equal to the net contribution of other fuel sources, the International Energy Agency (IEA) said on 16 October, as it launched its inaugural Energy Efficiency Market Report.
The IEA valued worldwide energy efficiency investments in 2011 at $300 billion (€221bn), a level on a par with global funding of renewable energy and fossil fuel power sources.

“Energy efficiency has been called a 'hidden fuel', yet it is hiding in plain sight,” said the IEA’s executive director Maria van der Hoeven, at a presentation for the paper in Korea.

“Indeed, the degree of global investment in energy efficiency and the resulting energy savings are so massive that they beg the following question: Is energy efficiency not just a hidden fuel but rather the world's first fuel?” she asked.

Between 2005 and 2010, 11 of the IEA member states made energy savings equal to $420 billion (€310bn), higher than from any other single fuel source. Without this, the countries would now be consuming about two-thirds more energy than at present.

Since 1974, energy savings in the 11 countries avoided the burning of 1.5 billion tones of oil equivalent, according to the IEA's Energy Efficiency Market Report 2013.

It finds that an absence of dynamic pricing in energy markets together with subsidies, high transaction costs, information failures and a lack of institutional capacity can sometimes impede efficiency improvements.

[sparky]

.
" an absence of dynamic pricing in energy markets" .......

The dynamic pricing is the cause of the "energy saving"
no doubt wastage has decrease , but so has the spending

[Graeme]

World's "First Fuel" - Energy Efficiency - Coming Out of Hiding

$this->bbcode_second_pass_quote('', 'T')he International Energy Agency (IEA) just released its second annual Energy Efficiency Market Report 2014 confirming energy efficiency’s place as the world’s “first fuel” and estimating the value of the energy efficiency market at between $310 and $360 billion and growing. A related report released by IEA in September, Capturing The Multiple Benefits of Energy Efficiency, focused on its benefits beyond just reducing energy use and emissions, including overall sustainability, economic and social development, and increasing prosperity.

Both reports provide clear evidence of the enormous value of using energy smarter.

The Energy Efficiency Market Is Strong, Valuable and Growing

The new EE Market Report confirms findings from last year’s report (that I wrote about here) that the global savings from energy efficiency are greater than the output from any other single fuel source – including coal, oil, nuclear, and gas, making it the world’s first fuel. We’ve also written about how it is America’s Greatest Resource.

The EE Market Report makes a number of other impressive findings with regard to energy efficiency, including:

Without improvements in the efficiency of cars, homes, heating, appliances and industry, total energy use in the 11 IEA member countries* would have been 60% more in 2012 – greater than the total energy consumption of the European Union or Asia (excluding China). Energy efficiency was the most important factor reducing energy demand.

While energy prices have risen between 11% and 52% between 2001 and 2011, energy efficiency and increasing incomes have moderated the impact on households.

Investment in efficiency was larger than supply-side investment in renewable electricity or in coal, oil, and gas electricity generation and around half the size of upstream oil and gas investment.

This is just small sample of the highlights. If you are interested in learning more, including country-specific findings, take a look at the report – or at least the summary.

[careinke]

$this->bbcode_second_pass_quote('pstarr', 'I')f "energy-efficiency" is the original fuel then all we have to do is become hyper-efficient with biofuels, supercapacitors, flywheels, algal fuel-cells, thorium, and stuff, and then we wouldn't need gasoline at all. Wheeeeee!

[ralfy]

In capitalist systems, efficiency does not necessarily lead to conservation but to increased production and consumption in exchange for more profits and better returns on investment.

[MonteQuest]

Jevons' Paradox.

[Graeme]

Hi Monte, You've been away a long time! Did the fires affect you in Arizona? Have you been lurking here?

Anyway, back to topic. I was wondering whether JP has been debunked?

$this->bbcode_second_pass_quote('', 'O')f course, falling energy prices do impact peoples’ consumption patterns. When energy prices fall, we tend to buy more of it because it is more affordable. This is the substitution effect. Because energy has become cheaper relative to other goods, we buy more energy and less of some other things, substituting one for the other.

[MonteQuest]

$this->bbcode_second_pass_quote('Graeme', 'H')i Monte, You've been away a long time! Did the fires affect you in Arizona? Have you been lurking here?

[ralfy]

Also, the article refers to the U.S., where energy and material resource consumption are currently high. The rest of the world, where even many basic needs have not been met, has to be considered.

[Quinny]

I know it's just anecdotal, but my experience is that even though my energy efficiency has increased significantly, I am using much less energy and consciously looking for even more ways to do so. As JP was conceived in 'normal' times, could it be that post peak the 'paradox' changes?

[MonteQuest]

$this->bbcode_second_pass_quote('Quinny', 'I') know it's just anecdotal, but my experience is that even though my energy efficiency has increased significantly, I am using much less energy and consciously looking for even more ways to do so. As JP was conceived in 'normal' times, could it be that post peak the 'paradox' changes?

[Quinny]

I've never really looked into the theory behind JP, but if it's linked to economic growth, then I can see it being nullified pretty soon!

[Graeme]

Monte, I have to say at the outset that it is really great to have you back. Your influence on this site has been outstanding especially toward other members. However, I'm not completely satisfied with your response regarding efficiency, and I'm not sure that I can offer a complete explanation.

From what I've read, the effect of JP is quite small (typically <10% and no more than 30%). Note this from the OP:

$this->bbcode_second_pass_quote('', 'B')etween 2005 and 2010, 11 of the IEA member states made energy savings equal to $420 billion (€310bn), higher than from any other single fuel source. Without this, the countries would now be consuming about two-thirds more energy than at present.

[MonteQuest]

$this->bbcode_second_pass_quote('Graeme', 'M')onte, I have to say at the outset that it is really great to have you back. Your influence on this site has been outstanding especially toward other members. However, I'm not completely satisfied with your response regarding efficiency, and I'm not sure that I can offer a complete explanation.

[MonteQuest]

$this->bbcode_second_pass_quote('Graeme', 'F')inally, in the debunked article I referred to, your quote is taken out of context.

[ralfy]

The only way to prove that the effect of JP is small is to show that energy and material resource consumption won't increase worldwide. That, together with the belief that producers will not maximize sales, cannot be shown.

[MonteQuest]

Do a search for a Jevon's Paradox thread on the site. Aaron and I posted extensively on it years ago.

[MD]

Energy efficiency will have its day.