Responding to energy efficiency challenge marianne osterkorn


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Presentation by Dr. Marianne Osterkorn at DoE conference on 3-4th June 2010 in Istanbul, giving an overview of energy efficiency efforts around the world.

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  • Source: Jun Arima, METI Japan, February 2008 Data used by METI not verifiable. Own calculations: TPED GDP TPED/GDP weighted (Japan=1) Japan 528 4362 1.21 1 China 1898 2658 7.14 5.9 US 2319 13117 1.77 1.46 Russia 668 991 6.74 5.57 World 11730 49021 2.39 1.97 Data sources: TPED (Mtoe) IEA 2006, GDP (10 bn USD) World Bank 2006
  • Responding to energy efficiency challenge marianne osterkorn

    1. 1. Responding to the Energy Efficiency Challenge Panel Presentation DOE Energy Efficiency Conference Istanbul June 3-4 Dr. Marianne Moscoso-Osterkorn REEEP Director General
    2. 2. The rise in energy demand will be driven primarily by emerging markets Source: BP Yearbook, IEA China accounts for 15% of world energy demand, with 19% of the world’s population.
    3. 3. 3 reasons for modern economies to focus on energy efficiency Competitiveness <ul><li>Reduce emissions </li></ul><ul><li>Improve life quality </li></ul><ul><li>Contribute to international climate responsibilities </li></ul><ul><li>Reduce dependency of energy imports </li></ul><ul><li>Reduce exposure to oil price volatilities </li></ul><ul><li>Improve productivity </li></ul><ul><li>Enhance industrial competiveness </li></ul>Sustainable Development Security of supply Using proven technologies
    4. 4. The hidden benefit: 50% of increase in energy demand in the last 20 years has been absorbed by energy savings IEA-11 Source: IEA
    5. 5. There is still huge savings potential: today 80% of primary energy is wasted Source: ABB 2007
    6. 6. Today’s leaders are aware of the importance of saving energy &quot;China attaches great importance to energy conservation. We … give top priority to conservation.&quot; Recognizing that the cleanest source of energy is more efficient energy use, the Presidents committed the relevant agencies … to accelerate energy efficiency improvements … &quot; If I were emperor of the world, I would put the pedal to the floor on energy efficiency and conservation … &quot; President Hu Jintao US Secretary of Energy Steven Chu President Barack Obama and President Felipe Calderón &quot; We recognise that we have to act on climate change in our own interest … we have adopted an ambitious National Action Plan ... We are committed to ambitious time-bound outcomes that will increase the energy efficiency of our economy … &quot; Prime Minister Manmohan Singh
    7. 7. In many countries, green stimulus packages were used to target energy efficiency Source: HSBC 2009 Green stimulus regional ranking in USD bn Green stimulus ranking as a % of total stimulus
    8. 8. Energy intensity continues to decline around the world Source: IEA
    9. 9. Japan scores best already, but aims to further improve energy efficiency by at least 30% by 2030 Source: IEA 2006, METI World South Korea Russia India China Indonesia Middle East Thailand Canada Australia US EU-27 Japan 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Primary energy supply per GDP Index: Japan=1
    10. 10. Japan has showcased that EE transcends simple government policy; it requires a whole mindset Source: METI, IEA 2007 <ul><li>EE housing standards and annual reporting on efficiency mesaures </li></ul><ul><li>Top-Runner-Program (includes 21 products) </li></ul><ul><li>EE labeling, includes TRP, another 16 products </li></ul>Residential <ul><li>Nationwide institutional system for EE promotion (Energy Conservation Centre, NEDO) </li></ul><ul><li>Intensive education and information program at all levels of society </li></ul>Public <ul><li>EE program for large carriers </li></ul><ul><li>Top-Runner-Program for vehicles </li></ul><ul><li>Green taxation for vehicles </li></ul>Transport <ul><li>Improve EE by 1% annually in 13000 factories, annual reports </li></ul><ul><li>Currently 30000 energy managers certified </li></ul><ul><li>Tax reductions and subsidies </li></ul><ul><li>Petroleum and coal tax (accounts for 533 billion Yen per year) </li></ul>Industry
    11. 11. Decoupling growth and energy consumption is challenging for emerging markets Source: EIA, World Bank China India Turkey Japan US
    12. 12. China aims to reduce energy intensity per unit of GDP by 20% below 2005 levels by 2010 Source: IEA 2007 <ul><li>Building codes aiming at up to 65% reductions of consumption </li></ul><ul><li>Mandatory standards and labels for appliances, lighting products etc. </li></ul><ul><li>Expand heat supply from CHP </li></ul><ul><li>Green Lighting Initiative </li></ul>Residential <ul><li>Retiring 50 GW of small and inefficient power plants (coal and oil) </li></ul>Utilities <ul><li>Public procurement focus energy efficient products </li></ul><ul><li>Strong institutional support </li></ul><ul><li>Energy Conservation Law </li></ul>Public <ul><li>High vehicle emission standards (40% above US) and excise taxes </li></ul>Transport <ul><li>Export taxes for energy intensive products (up to 15%) </li></ul><ul><li>Top-1000-Enterprise-Program (2007: 38.7 Mtce saved) </li></ul><ul><li>Introduction of energy management systems, audits, capacity building </li></ul>Industry
    13. 13. Industry efficiency in China is significantly below world average Above world average + 20 % + 17 % + 23 % + 43 % + 57 % + 31 % Source: National Energy Bureau
    14. 14. C hina is the third largest construction market in the world: One half of global cement production occurs in China <ul><li>The construction sector’s values: </li></ul><ul><li>India </li></ul><ul><li>2007: USD 65 billion </li></ul><ul><li>Accounting for 6.9% of GDP </li></ul><ul><li>China </li></ul><ul><li>2007: USD 165 billion </li></ul><ul><li>Accounting for 5.6% of GDP </li></ul><ul><li>US </li></ul><ul><li>2007: USD 1200 billion </li></ul><ul><li>Accounting for 8.7% of GDP </li></ul>Source: Asia Development Bank, Solidiance The chart compares the growth of the construction market in India and China (this compares to growth in the USA of <1%).
    15. 15. REEEP assists Chinese government in introducing special fiscal support to promote energy efficiency in buildings Aim: Promote suitable financing models for energy efficiency interventions for building sector Objectives: Conduct market survey and barrier analysis on current financing mechanisms that promote EE in existing buildings in China Develop two Chinese case studies on energy conservation projects in existing large-scale public and residential buildings Submit new recommendations to the Chinese government for financing mechanisms to accelerate EE in buildings Implementing Partner: Energy Research Institute of National Development Reform Commission
    16. 16. REEEP has started a comprehensive training program for Chinese architects Aim: Provide comprehensive overview on energy efficiency solutions for the building sector – in cooperation with universities and private sector Audience: Architects and representatives of construction sector policy makers, manufacturers and industry The training will be held 4 times a year and includes follow up after one year Content: Legal frameworks, standards, building envelop, lighting, cooling/heating, interior standards, information technology REEEP- Private sector cooperation: Program was developed between Himin Solar Group and REEEP in close collaboration with LQLAB Shenzhen
    17. 17. Importance of energy efficient standards: REEEP supports LED standards in China A im: Support the inclusion of Light Emitting Diodes (LEDs) in the Chinese government’s promotion of energy efficient lighting solutions by developing standardized test methods and evaluation criteria for LED lighting products Objectives: Market assessment of current LED industry in China, including existing national and international testing methods and evaluation criteria for LED lighting products Develop appropriate LED testing methods and evaluation criteria for meeting current needs in China Test the feasibility of the newly developed LED testing methods and evaluation criteria within China Implementing Partner: National Lighting Test Center
    18. 18. India’s Efficiency Bureau provides a strong and unique institutional basis for most of its national energy efficiency programs Source: IEA 2007 <ul><li>Mandatory building codes for new commercial buildings from 2010 onwards </li></ul><ul><li>Mandatory standards and labels for appliances (vans 27% of energy savings) </li></ul><ul><li>EE in municipalities through ESCOs </li></ul><ul><li>CFL program (replacement of 400 million light bulbs) </li></ul>Residential <ul><li>Promotion of ESCOs </li></ul><ul><li>Pre-payment electricity metering </li></ul>Utilities <ul><li>Conservation in school education </li></ul><ul><li>Mandatory public EE procurement </li></ul><ul><li>DSM programs for municipalities and agriculture </li></ul><ul><li>Energy Conservation Act 2001 </li></ul>Public <ul><li>National Energy Conservation Awards </li></ul><ul><li>Strong DSM programs in particular for energy intensive SME clusters </li></ul><ul><li>Energy data reporting and benchmarking </li></ul><ul><li>Certification of energy managers and auditors </li></ul>Industry
    19. 19. REEEP support of SME’s: There are more than 380 clusters of SMEs in India, and industry accounts for more than a third of the country’s electricity consumption Aim: Improve energy efficiency of small and medium enterprise (SME) industrial clusters through carbon trading Objectives: Conduct pilot energy audits on 3-5 industries within a selected, energy-intensive SME cluster Design mechanisms that enable affordable, bulk purchasing of EE equipment Build a liaison with a carbon trading mechanism, e.g. CDM, to trade collective carbon emissions Disseminate model to other SME clusters through publications and local workshops Implementing Partner: Alliance to Save Energy
    20. 20. Market forces alone don’t deliver cost effective savings – supportive policies / incentives are needed Source: IEA WEO 2008 As an example: The number of countries applying mandatory energy standards for buildings increased over 60% between 1994 and 2009 , currently 61 countries have such codes implemented
    21. 21. Effective Energy saving programs must consist of a whole package of measures <ul><li>Standards and Labels </li></ul><ul><li>Industry processes & equipment / household appliances </li></ul><ul><li>Building codes </li></ul><ul><li>Vehicles & fuel standards </li></ul><ul><li>Mandatory and/or voluntary </li></ul><ul><li>tax incentives or penalties (such as export tax), direct subsidies/rebates </li></ul><ul><li>Financial support through public funds </li></ul><ul><li>Special support for ESCOs </li></ul><ul><li>Targeted power industry programs </li></ul><ul><li>Targeted EE improvements in generation and transport </li></ul><ul><li>Improved metering (smart meters) </li></ul><ul><li>Increase renewables and CHP </li></ul><ul><li>Education and Management </li></ul><ul><li>Special education programs at all levels </li></ul><ul><li>Introduction of management procedures (KAIZEN) </li></ul><ul><li>Certification of energy managers and auditors </li></ul><ul><li>Targeted awards </li></ul><ul><li>Public sector energy efficiency programs </li></ul><ul><li>Green public procurement and investments </li></ul><ul><li>DSM programs for municipalities and public sector </li></ul><ul><li>Data collection and provision </li></ul><ul><li>Public and sectoral programs </li></ul><ul><li>Special incentives for training and capacity building </li></ul><ul><li>Publicly accepted certification </li></ul><ul><li>Mandatory and/or voluntary </li></ul><ul><li>Regulatory measures, quotas/certificates (white certificates, EERS) and Revenue Stability Mechanism </li></ul><ul><li>Fiscal incentives </li></ul><ul><li>Promotion of ESCOs </li></ul><ul><li>Mandatory and/or voluntary </li></ul><ul><li>Special budget positions </li></ul><ul><li>Public reporting </li></ul>
    22. 22. REEEP International Secretariat Vienna International Centre Room D1732 Vienna, Austria [email_address] +43 1 26026 3677