Prioritization of Energy Efficiency Alliance to Save Energy International Policy Leaders Dialogue David Rodgers Deputy Assistant Secretary of Energy Efficiency U.S. Department of Energy September 25, 2008

The Role of Energy Efficiency Energy efficiency is the fastest, lowest risk, most economical way to address climate and security concerns Energy efficiency means competitiveness for the U.S. economy Market-ready today at attractive rates of return with enormous unexploited potential Energy efficiency represents investments in energy not consumed, which mitigates risks associated with future price uncertainties. Robust and evolving pipeline of efficiency technologies McKinsey Global Institute identified energy saving sufficient to cut consumption growth in half using only existing technologies that offer at least a 10% IRR (MGI, Curbing Global Energy Demand Growth, May 2007)

Energy efficiency is the fastest, lowest risk, most economical way to address climate and security concerns

Energy efficiency means competitiveness for the U.S. economy

Market-ready today at attractive rates of return with enormous unexploited potential

Energy efficiency represents investments in energy not consumed, which mitigates risks associated with future price uncertainties.

Robust and evolving pipeline of efficiency technologies

McKinsey Global Institute identified energy saving sufficient to cut consumption growth in half using only existing technologies that offer at least a 10% IRR (MGI, Curbing Global Energy Demand Growth, May 2007)

Efficiency: Carbon Abatement with a Positive Return on Investment

Energy Efficiency Has the Technical Potential to Level U.S. Energy Demand Growth Buildings Industry Transportation Super Boilers Nano Mfg Direct Steelmaking Efficient Data Centers CHP EIA (Pre-EISA) Business as Usual Projected Demand Growth Hybrids Advanced Diesels PHEVs Lightweight Materials Source: DOE Scenario Projections 2030 Tech. Potential Savings 18 Quads 2015 Tech. Potential Savings 3 Quads 2020 Tech. Potential Savings 8 Quads EISA EIA (Post-EISA) Business as Usual Projected Demand Growth Lighting Envelope ZEBs Appliances Codes CAFE RFS Appliance, Bldg, Industrial Motor EE 2010 2020 2030

Super Boilers

Nano Mfg

Direct Steelmaking

Efficient Data Centers

CHP

Hybrids

Advanced Diesels

PHEVs

Lightweight Materials

Lighting

Envelope

ZEBs

Appliances

Codes

CAFE

RFS

Appliance, Bldg, Industrial Motor EE

Yet Non-market Forces Impede Energy Efficiency Market Penetration Dislocated Agency Inconsistent Real Estate Valuation Inconsistent use of Life cycle costing Deficit of Information Lack of Aggregation Misperceptions by Consumers Out of Date Utility regulation Inconsistant policies (e.g., Codes)

Dislocated Agency

Inconsistent Real Estate Valuation

Inconsistent use of Life cycle costing

Deficit of Information

Lack of Aggregation

Misperceptions by Consumers

Out of Date Utility regulation

Inconsistant policies (e.g., Codes)

U.S. Department of Energy Strategic Priorities for Energy Efficiency Priorities Utility Efficiency Advanced Model Building Codes Appliance Standards, Advanced Lighting Advocacy, and ENERGY STAR Energy Efficient Buildings Industrial Efficiency Vehicle Efficiency Creating a National Energy Efficiency Ethic Accelerated R&D Recent Accomplishments National Action Plan for Energy Efficiency Department of Energy 30% Vision Commercial Buildings Initiative & Builders Challenge Save Energy Now Energy Independence and Security Act Fuel Economy Improvement Disney and Ad Council Collaborations Advanced Energy Initiative International Partnership for Energy Efficiency Cooperation (IPEEC)

Priorities

Utility Efficiency

Advanced Model Building Codes

Appliance Standards, Advanced Lighting Advocacy, and ENERGY STAR

Energy Efficient Buildings

Industrial Efficiency

Vehicle Efficiency

Creating a National Energy Efficiency Ethic

Accelerated R&D

Recent Accomplishments

National Action Plan for Energy Efficiency

Department of Energy 30% Vision

Commercial Buildings Initiative & Builders Challenge

Save Energy Now

Energy Independence and Security Act Fuel Economy Improvement

Disney and Ad Council Collaborations

Advanced Energy Initiative

International Partnership for Energy Efficiency Cooperation (IPEEC)

Appliance Standards, Advanced Lighting Advocacy, and ENERGY STAR Modernizing ENERGY STAR Update and expand the ENERGY STAR program to add new advanced technologies to the ENERGY STAR portfolio. Added or Updated since 2006: Clothes washer Advanced water heaters (5 categories) Dishwashers Solid State Lighting (7 categories) Refrigerators Expanded CFL categories Develop deployment plans for marketing advanced technologies to consumers. Talk to market stakeholders, gather information about market conditions, and develop strategies for building product availability and demand.

Modernizing ENERGY STAR

Update and expand the ENERGY STAR program to add new advanced

technologies to the ENERGY STAR portfolio.

Added or Updated since 2006: Clothes washer Advanced water heaters (5 categories)

Dishwashers Solid State Lighting (7 categories)

Refrigerators Expanded CFL categories

Develop deployment plans for marketing advanced technologies to

consumers.

Talk to market stakeholders, gather information about market conditions,

and develop strategies for building product availability and demand.

Energy Efficient Buildings Builders Challenge Recognizing Leadership in Homebuilding Commercial Buildings Initiative Public-private partnerships working to enable market-ready net-zero energy commercial buildings no later than 2025 in all climate zones Commercial Building Energy Alliances EnergySmart Hospitals EnergySmart Schools 55% of U.S. Natural Gas 72% of U.S. Electricity The combined residential and commercial buildings sector is the largest energy consumer in the U.S.

Builders Challenge

Recognizing Leadership in Homebuilding

Commercial Buildings Initiative

Public-private partnerships working to enable market-ready net-zero energy commercial buildings no later than 2025 in all climate zones

Commercial Building Energy Alliances

EnergySmart Hospitals

EnergySmart Schools

International Partnership for Energy Efficiency Cooperation (IPEEC) In coordination with other leading countries, DOE is working to establish IPEEC - a high-level forum for discussion, consultation and information exchange. IPEEC will advance global energy efficiency by facilitating actions that yield high energy efficiency gains Countries will join on a voluntary basis and participate in specific annexes that reflect each country’s greatest interest Effective policies Best practices Building codes Product standards Financial mechanisms Public procurement Civic infrastructure and fleets Consumer/stakeholder education Measurement/verification protocols Scope Develop public-private partnerships Facilitate international trade of efficient products Support participating countries’ efficiency efforts & exchange information on:

In coordination with other leading countries, DOE is working to establish IPEEC - a high-level forum for discussion, consultation and information exchange.

IPEEC will advance global energy efficiency by facilitating actions that yield high energy efficiency gains

Countries will join on a voluntary basis and participate in specific annexes that reflect each country’s greatest interest

Effective policies

Best practices

Building codes

Product standards

Financial mechanisms

Public procurement

Civic infrastructure and fleets

Consumer/stakeholder education

Measurement/verification protocols

Scope

Develop public-private partnerships

Facilitate international trade of efficient products

Support participating countries’ efficiency efforts & exchange information on:

International Partnership for Energy Efficiency Cooperation (IPEEC) Potential Annex Topics Technology Development, Transfer, and Deployment Performance and Evaluation Methodology National Efficiency Policy Options Test Procedures & Standards Energy Management Systems Public Sector Efficiency Public Transportation Appliance Standards Industrial Efficiency Advanced Lighting Executive Committee = member countries Annex I Annex II Annex III

Potential Annex Topics

Technology Development, Transfer, and Deployment

Performance and Evaluation Methodology

National Efficiency Policy Options

Test Procedures & Standards

Energy Management Systems

Public Sector Efficiency

Public Transportation

Appliance Standards

Industrial Efficiency

Advanced Lighting

For More Information David Rodgers [email_address] http://www.eere.energy.gov/