Government Action to Accelerate Adoption of EE, IPEEC
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Government Action to Accelerate Adoption of EE, IPEEC

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  • The bottom 5% of products (in terms of EE) are forced out of the market each year.
  • (1) Policy program used a set of complementary instruments targeted at rapid market adoption of “pre-commercial” technologies.(2) Government actions designed to “pull” and “push”.(3) Developed effective consumer and retailer labels/incentives.
  • Refrigerator size has almost tripled – yet annual energy used has remained the same – and real purchase price has declined steadily
  • Life Cycle Costs have declinedEE improvements can contain household energy costs.
  • Policy Assistance Network is the strategic IPEEC’s umbrella network. It’s designed to strengthen energy efficiency policy design and implementation, support international and domestic EE actions, and promote ongoing communication between EE specialists that were brought together by IPEEC. Developing and supporting PAN is one of the strategic IPEEC goals, as it is inline with the main IPEEC task of increasing energy efficiency communication and knowledge and experience sharing worldwide.

Government Action to Accelerate Adoption of EE, IPEEC Presentation Transcript

  • 1. ExCo 05 // 20-22 September 2011 CEM02 Clean Energies February 15, 2011  and Energy Efficiency Technologies OCTOBER 4-5, 2011, Seville Presentation Market Penetration of Energy Efficient Technology: a Role of Government Action Author Amit Bando Executive Director, IPEEC
  • 2. ExCo 05 // 20-22 September 2011 IPEEC is a High Level International Forum  Provides global leadership on energy efficiency by identifying and facilitating government implementation of policies and programs that yield high energy-efficiency gains.  Aims to promote information exchange on best practices and facilitate initiatives to improve energy efficiency.  Formally established in 2009 at the G8 summit in L'Aquila, Italy and resulting from the Heiligendamm Dialogue Process. 1
  • 3. ExCo 05 // 20-22 September 2011 IPEEC account for over 75% of world GDP and energy use. is an autonomous entity Members EU Germany United Kingdom Italy France Russia Canada Japan USA Republic of Korea Mexico China India Brazil Australia The IPEEC Secretariatis located in Paris, France 2
  • 4. ExCo 05 // 20-22 September 2011 Historical Trends in Energy Use 180 160 Hypothetical energy use without energy efficiency improvements 140 63 % Savings EJ 120 100 80 60 Actual energy use 40 20 0 1973 1980 Actual energy use 1990 2000 2006 Energy savings due to efficiency improvements Energy efficiency improvements Source: IEA 3
  • 5. Government Action can Accelerate Progress ExCo 05 // 20-22 September 2011 on EE Technology Deployment & Market Penetration  Government Action Can Provide R&D Support  Promote Public Awareness  Provide Policy Stability     Support markets and industry Provide predictable regime Establish Regulations, Standards & Labels   Monitor, verify & enforce standards Use labels - promote awareness and branding 4
  • 6. ExCo 05 // 20-22 September 2011 Government Action: Japan’s Top Runner Program  Energy conservation law prescribes energy efficiency standards for appliances/vehicles  Standards are set higher than the best performance value of each product currently on sale in the market  Standard setting takes into account technological development  21 products are included 5
  • 7. Government Action: Japan’s Top Runner ExCo 05 // 20-22 September 2011 Program (continued)  Example: passenger vehicle standards were set in 1999 Target: By 2010, fuel economy improvement would be 22.8%  Fuel economy of passenger vehicles improved by 22.8% during 1999-2005  Example: air conditioners saw EE improvement of 67.4% between 1999-2004  Companies utilized technologies that they may otherwise have waited to commercialize  Improved consumer and retailer awareness – using labels, etc. - accelerated pace of market penetration  6
  • 8. Government Action: USA’s Refrigerator ExCo 05 // 20-22 September 2011 Standards, Labels & Incentives Program  Between 1945 and 2010, the average refrigerator volume has increased from 8 cubic ft. to 21 cubic ft.  Government action on standards, labels and incentives led to sustained EE improvement  During 1945-1978 the annual energy used by a typical refrigerator quadrupled  In 1978, refrigerator standards were introduced in California – other states followed  Since 1978, the annual energy used by a typical refrigerator has declined steadily - reached 1945 levels in 2010  This has not interrupted the long-term decline in real purchase price – declined from $1,000 to $600 (2009$) 7
  • 9. Government Action: USA’s Refrigerator ExCo 05 // 20-22 September 2011 Standards, Labels & Incentives Program (cont.)  Government Action on Standards, Labels and Incentives has accelerated the decline in life cycle costs (LCC) of refrigerators  During 1945-1978, refrigerator LCC remained steady at $5,000 (2009$)  During 1978-2010, refrigerator LCC declined steadily to $1,000 ((2009$)  Government Action has led to savings of about $20 billion/year in 2010 and $300 billion cumulative since 1978 8
  • 10. GovernmentSeptember Complements Stages Action 2011 ExCo 05 // 20-22 of Market Maturity  Demonstration & Sample Distribution Creating Awareness & Testing Potential  Early Adopters and Niches  Positive Potential  Rational Economic Purchase  Market Pull  Technology and Market Evolution  Feedback  9
  • 11. Effective Government Action Recognizes ExCo 05 // 20-22 September 2011 the Stage ofMarket Maturity  A “policy package” constitutes effective action   In Japan, government action enhanced market pull by using specific (positive) regulation to provide proof of value and positive profits In the US, progress on regulation from specific (positive) to general (neutral) has been accompanied by movement on marketmaturityfrom early adopters to market evolution 10
  • 12. ExCo 05 // 20-22 September 2011 IPEEC’s Capacity Building & Technical Assistance Platform IPEECTask force Appliances Determine country & sector needs Industry Use questionnaire, surveys and focus groups to inventory task group resources to be adapted forEvent Utilities Sustainable Cities Indicators Finance Define format, activities and contents of workshop, via inputs from stakeholders Event Establish links to other relevant initiatives & resources 11
  • 13. ExCo 05 // 20-22 September 2011 IPEEC’s Policy Assistance Network  Strengthen EE policy design and implementation through action plans developed during capacity buildingevents.  Undertake specific research & studies that codify useful program experience.  Support intra & inter regional cooperation through peer learning & dialogue.  Promote regional knowledge management hubs that leverage existing regional & IPEEC resources. 12
  • 14. ExCo 05 // 20-22 September 2011 Thank you For more information, contact the IPEEC Secretariat: Amit Bando: amit.bando@ipeec.org 13