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Multiple Benefits of Energy Efficiency –
           The Netherlands
    Joost Gerdes – IEA March 14th, 2012




                                          www.ecn.nl
How ECN monitors energy efficiency

      • Focus on quantitative approach, top-down, total
          savings
      •   Scope: complete energy system, including primary
          energy
      •   Conversion sectors: power plants, CHP, refineries
      •   Uncertainty – total savings 1.1% +/- 0.3% – large
          because of large margins in year-to-year changes
      •   Decomposition into multiple driving factors



2   19-3-2012
3
                              2700
                                             2800
                                                          2900
                                                                          3000
                                                                                 3100
                                                                                                     3200
                                                                                                            3300
                                                                                                                   3400
                                                                                                                          3500
                                                                                                                                 3600
                                                                                                                                        3700




19-3-2012
                                                                                                                                               [PJ]


                     GDP
                    growth

               Structure
              main sectors

                 Structure
                subsectors

                 Structure
              final demand

                 Savings
              final demand

            Eff. conversion
               end-users

            Co-generation
             end-users

                 Fuel mix
                end-users


                    Export


              Structure
            energy sectors

            Co-generation
            energy sectors

              Efficiency
                                                                                                                                                      Decomposition into driving factors




            energy sectors


                    Import


               Fuel mix
                                                                 268 PJ




            energy sectors
                                             Level 1990
                                                                                        Level 1999
                                                                                             Level 1999




                                     Level 1990
How ECN monitors additional benefits of
     savings
      • We monitor progress in energy savings and
          additional benefits of CO2 emission reduction
      •   Long term agreements were also meant to
          improve competitive advantage; the results have
          been monitored
      •   Environmental benefits excluding greenhouse
          gases (National Emission Ceiling emissions):
          limited effect




4   19-3-2012
Benefits mentioned by IEA not monitored

      • Energy poverty: not relevant for NL because of the
          robust social security system
      •   Rebound effect: not monitored, we focus on
          realized savings. Rebound effect is hard to
          measure, also because of uncertainty. It may be
          less of an issue when energy prices rise.
      •   Job creation: has not been an important factor as
          unemployment is (expected to be) low in NL




5   19-3-2012
Importance of the multiple benefit types
       • Surprised to see no mention of the role of
           efficiency in climate target scenarios; in this case
           efficiency measures are a “no-brainer”. Looking at
           the past or non-EU countries?
       •   Most important benefits: greenhouse gas and
           contaminants emission reduction, reaching targets
           for renewables, increasing security of supply and
           R/P ratio, competitiveness
       •   Efficiency measures are among the most profitable
           measure types to achieve greenhouse gas
           reductions and/or a percentage renewables


6   19-3-2012
Are additional benefits needed?
         Cost of measures curve
    Meuro per Mton CO2-eq



                                                        Volume and structure
                                                        Savings on final use
                                                        Renewable energy
                                                        CHP
                                                        New power plants
                                                        Nuclear power plants
                                                        Other GHG options
                                                        CO2 storage processes
                                                        Fuel substitution
                                                        Conversion efficiency
                                                        CO2 storage conversion
                                                        Foreign allowances



                              Reduction [Mton CO2-eq]

7      19-3-2012

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Multiple Benefits of Energy Efficiency - The Netherlands

  • 1. Multiple Benefits of Energy Efficiency – The Netherlands Joost Gerdes – IEA March 14th, 2012 www.ecn.nl
  • 2. How ECN monitors energy efficiency • Focus on quantitative approach, top-down, total savings • Scope: complete energy system, including primary energy • Conversion sectors: power plants, CHP, refineries • Uncertainty – total savings 1.1% +/- 0.3% – large because of large margins in year-to-year changes • Decomposition into multiple driving factors 2 19-3-2012
  • 3. 3 2700 2800 2900 3000 3100 3200 3300 3400 3500 3600 3700 19-3-2012 [PJ] GDP growth Structure main sectors Structure subsectors Structure final demand Savings final demand Eff. conversion end-users Co-generation end-users Fuel mix end-users Export Structure energy sectors Co-generation energy sectors Efficiency Decomposition into driving factors energy sectors Import Fuel mix 268 PJ energy sectors Level 1990 Level 1999 Level 1999 Level 1990
  • 4. How ECN monitors additional benefits of savings • We monitor progress in energy savings and additional benefits of CO2 emission reduction • Long term agreements were also meant to improve competitive advantage; the results have been monitored • Environmental benefits excluding greenhouse gases (National Emission Ceiling emissions): limited effect 4 19-3-2012
  • 5. Benefits mentioned by IEA not monitored • Energy poverty: not relevant for NL because of the robust social security system • Rebound effect: not monitored, we focus on realized savings. Rebound effect is hard to measure, also because of uncertainty. It may be less of an issue when energy prices rise. • Job creation: has not been an important factor as unemployment is (expected to be) low in NL 5 19-3-2012
  • 6. Importance of the multiple benefit types • Surprised to see no mention of the role of efficiency in climate target scenarios; in this case efficiency measures are a “no-brainer”. Looking at the past or non-EU countries? • Most important benefits: greenhouse gas and contaminants emission reduction, reaching targets for renewables, increasing security of supply and R/P ratio, competitiveness • Efficiency measures are among the most profitable measure types to achieve greenhouse gas reductions and/or a percentage renewables 6 19-3-2012
  • 7. Are additional benefits needed? Cost of measures curve Meuro per Mton CO2-eq Volume and structure Savings on final use Renewable energy CHP New power plants Nuclear power plants Other GHG options CO2 storage processes Fuel substitution Conversion efficiency CO2 storage conversion Foreign allowances Reduction [Mton CO2-eq] 7 19-3-2012