Energy Efficiency Better Than Expected

Energy Efficiency and Conservation: The Cornerstone of a Sustainable Energy Future

Here are a few highlights from a July '06, PDF report (985kb file) from the Canadian Renewable Energy Alliance on how conservation and efficiency measures have proven highly effective in an effort to meet energy demands. It's simple: we can meet demands by reducing them.

Energy efficiency is the least cost, most reliable, and most environmentally-sensitive resource, and minimizes our contribution to climate change.
—California’s Energy Action Plan II *1

Energy efficiency is likely to be the cheapest and safest way of addressing all [of our energy] objectives, while also strengthening energy security and improving our industrial competitiveness as we develop cleaner technologies, products and processes.
—UK Energy White Paper *2

Fortunately, energy efficiency and conservation are the lowest cost option for meeting energy needs, and they provide many other environmental, economic and social benefits as well:
· overall cost savings from lower expenditures on energy;
· a lower environmental load from avoiding the greenhouse gas and local air, water and land emissions associated with energy production and consumption;
· local economic-development opportunities and associated new jobs;
· an energy system with enhanced reliability and less price volatility; and
· improved energy-supply security.

*1 California Energy Commission. 2005. California’s Energy Action Plan II, p. 3.
*2 Department of Trade and Industry. 2003. UK Energy White Paper, Our Energy Future—Creating a Low Carbon Economy,
http://www.dti.gov.uk/energy/whitepaper/ourenergyfuture.pdf


Recommendations for Provincial Strategies

1 Set a goal of meeting all new growth in energy demand over the next two decades through energy efficiency and conservation. Set energy efficiency targets for each sector along with appropriate intermediate milestones for energy utilities and industries. Make these milestones into legal requirements by using Energy Efficiency Portfolio Standards and tradable permit (white certificates) programs.

2 Treat energy efficiency as a resource and given priority over supply resources. All resources should be assessed using social, environmental and economic cost criteria.

3 Mandate an independent dedicated agency to coordinate and deliver energy efficiency and conservation programs, and recommend policy changes.

4 Establish permanent funding sources through the budget process to support a building code and equipment standard review cycle.

5 Provide a shared savings DSM incentive mechanism for energy utilities, technical support provided for smaller utilities, and coordinate DSM programs across the Province.

6 Establish regular review cycles of energy efficiency requirements in building codes and minimum efficiency requirements for equipment. Changes in codes and standards should be negotiatedwith all stakeholders and supportive incentives provided to builders and suppliers in the lead up to changes.

7 Provide comprehensive energy efficiency programming covering all sectors and geographic areas in the Province. Market transformation programs should target the whole supply chain – manufacturers/builders, suppliers, contractors, users/consumers.

8 Provide targeted financial incentives to kick start market transformation and raise efficiency levels between code and standards cycles, providing effective support to suppliers, users, or contractors as appropriate.

9 Build an infrastructure to deliver energy efficiency products and services through training/certification of DSM program managers, contractors, circuit riders, building operators.

10 Partner with municipalities and First Nations to deliver community energy plans and community based energy efficiency programs.


Recommendations for Federal Enabling Policies and Support

1 Develop and implement a national energy efficiency strategy and action plan with targets and timelines, based on best practices, individual and joint initiatives across Provinces, and participation in international initiatives on energy efficiency.

2 Establish a permanent review cycle of the national model energy code for buildings, EnerGuide for Houses, and vehicle efficiency requirements, in cooperation with the Provinces.

3 Use the Energy Efficiency Act to raise minimum efficiency standards for all energy using equipment to the highest levels in North America in cooperation with Provinces and harmonized with the most progressive US States.

4 Provide enabling legislation and protocol support for energy performance and best in class labeling programs.

5 Promote and support the use of measures that provide value to energy efficiency labels so that they reflect the full environmental and social benefits of high efficiency. These should include tradable energy efficiency permits or “white” certificates, green mortgage concessions, preferential tax treatment, and targeted incentives.

6 Make market transformation the primary objective of federal energy efficiency programming, working with Provinces, Territories, Municipalities and all stakeholders to transform new and retrofit building, appliance, lighting, electronic equipment, and industrial equipment and process markets.

7 Provide national support for training/certification of DSM program managers, contractors, circuit riders, building operators.

8 Show leadership and support for market transformation by expanding the Federal Buildings Initiative into a full green procurement strategy where all federal facilities are built, leased, upgraded, equipped and operated to the highest levels of efficiency on a life cycle cost basis.

9 Establish a national energy efficiency finance fund in cooperation with the finance industry, private sector investors, and municipalities. Reduce financial incentives and tax concessions for fossil fuels and nuclear and divert them toward new incentives for energy efficiency (and renewable energy).

10 Put special programs in place to reduce “energy poverty” and raise building standards for First Nations communities and low income families.

11 Expand Canadian participation in international partnerships such as REEEP, NAFTA, and the IEA, providing support for energy efficiency in developing countries as well as North American and international discussions.

Also related, here is a link to a summary of an article on energy efficiency from a September '06 Scientific American issue on energy.

Excerpts from “An Efficient Solution,” by Eberhard K. Jochem, Scientific American, September 2006.


Energy Efficiency Is The Solution

Wasting less energy is the quickest, least expensive way to stem carbon emissions. The huge potential of energy efficiency measures for mitigating the release of greenhouse gases into the atmosphere attracts little attention when place alongside the more glamorous alternatives of nuclear, hydrogen or renewable energies. But developing a comprehensive efficiency strategy is the fastest and cheapest thing we can do to reduce carbon emissions. It can also be profitable and astonishingly effective, as two recent examples demonstrate...

...Improved efficiencies can be realized all along the energy chain, from the conversion of primary energy (oil, for example) to energy carriers (such as electricity) and finally to useful energy (the heat in your toaster). The annual global primary energy demand is 447,000 petajoules (a petajoule is roughly 300 gigawatt-hours), 80 percent of which comes from carbon-emitting fossil fuels such as coal, oil and gas. After conversion these primary energy sources deliver roughly 300,000 petajoules of so-called final energy to customers in the form of electricity, gasoline, heating oil, jet fuel, and so on.

The next step, the conversion of electricity, gasoline, and the like to useful energy in engines, boilers and lightbulbs, causes further energy losses of 154,000 petajuoules. Thus, at present almost 300,000 petajoules, or two thirds of the primary energy are lost during the two stages of energy conversion. Furthermore, all useful energy is eventually dissipated as heat at various temperatures. Insulating buildings more effectively, changing industrial processes and driving lighter, more aerodynamic cars would reduce the demand for useful energy, thus substantial reducing energy wastage.

Given the challenges presented by climate change and the high increases expected in energy prices, the losses that occur all along the energy chain can also be viewed as opportunities–and efficiency is one of the most important. New technologies and know-how must replace the present intensive use of energy and materials...

...Little heralded but impressive advances have already been made, often in the form of efficiency improvements that are invisible to the consumer. Beginning with the energy crisis in the 1970's, air conditioners in the U.S. were redesigned to use less power with little loss in cooling capacity and new U.S. building codes required more insulation and double-paned windows. New refrigerators use only one quarter of the power of earlier models. (With approximately 150 million refrigerators and freezers in the U.S., the difference in consumption between 1974 efficiency levels and 2001 levels is equivalent to avoiding the generation of 40 gigawatts at power plants.) Changing to compact fluorescent light-bulbs yields an instant reduction in power demand; these bulbs provide as much light as regular incandescent bulbs, last 10 times longer and use just one fourth to one fifth the energy...


The Importance Of Policy

To realize the full benefits of efficiency, strong energy policies are essential. Among the underlying reasons for the crucial role of policy are the dearth of knowledge by manufacturers and the public about efficiency options, budgeting methods that do not take proper account of the ongoing benefits of long-lasting investments, and market imperfections such as external costs for carbon emissions and other costs of energy use. Energy policy set by governments has traditionally underestimated the benefits of efficiency. Of course, factors other than policy can drive changes in efficiency–higher energy prices, new technologies or cost competition, for instance. But policies–which include energy taxes, financial incentives, professional training, labeling, environmental legislation, greenhouse gas emissions trading and international coordination of regulations for traded products–can make an enormous difference...

...Other similar projects abound. The Board of the Swiss Federal Institutes of Technology, for instance, has suggested a technological program aimed at what we call the 2,000-Watt Society–an annual primary energy use of 2,000 watts (or 65 gigajoules) per capita. Realizing this vision in industrial countries would reduce the per capita energy use and related carbon emissions by two thirds, despite a two-thirds increase in GDP, within the next 60 to 80 years. Swiss scientists, including myself, have been evaluating this plan since 2002, and we have concluded that the goal of the 2,000-watt per capita society is technically feasible for industrial countries in the second half of this century.

To some people, the term “energy efficiency” implies reduced comfort. But the concept of efficiency means that you get the same service–a comfortable room or convenient travel from home to work–using less energy. The EU, its member states and Japan have begun to tap the substantial–and profitable–potential of efficiency measures. To avoid the rising costs of energy supplies and the even costlier adaptations to climate change, efficiency must become a global activity.

Finally, on the subject of the economics & profitability of going green with your business, have a look at the book Natural Capitalism. Click on the link to read selected chapter excerpts online.