Appliance and Equipment Efficiency:

Policy Driven Innovation

18 September 2013

Sarah CloughAustralian Department of Resources, Energy and Tourism

Gabrielle DreyfusUS Department of Energy

End-use Energy Efficiency is cost effective

We need to do more with cost effective options

• IEA analysis shows that a ramping-up of energy intensity to 2.6 times the rate of the last 25 years will half energy demand and boost economic output by $18 trillion by 2035.

• “If action is not taken before 2017, all the allowable CO2 emissions would be locked-in by energy infrastructure existing at that time. Rapid deployment of energy efficient technologies would postpone this lock-in to 2022, buying time to secure a much-needed global agreement to cut greenhouse-gas emissions.”

• In the 2013 State of the Union Address, President Obama issued the goal of cutting the energy wasted by US homes and businesses by 50% over the next 20 years.

But we need to coordinate more or risk repeating the “errors of history”

ANZ 2013

EU 2014

% EU 2016

%

A 148 133 10% 94 23%

B 175 158 10% 112 28%

C 209 188 10% 134 31%

D 234 211 10% 150 36%

EU & AU desktop computer total energy consumption comparison

Expanded International Coordination of Product Testing and Performance Standards

• More sharing of product, technology and market data• Increased harmonization/comparability of test methods

and metrics• Developing multiple efficiency/performance levels for use

in labeling, incentives and MEPS• Improved government engagement with international

standards organizations …..all of which are being pursued by SEAD, 4E, and IEA

BUENAS (LBNL, 2012)

New Technologies Key to Long Term Gains

Government support of technology can help…

Several governments fund R&D on solid state lighting, advanced AC/heat pumps, and certain other product technologies

….but manufacturers are key to product technology development and market entry

Motivating manufacturers to support continuous technology development and deployment is critical

Government policies can substantially reduce the risks associated with private investment in technology development by:• Easing market entry• Helping build market share of new products• Providing clearer signals regarding future

regulatory policy

Some governments are already trying to stimulate new product technologies:

• Awards• Performance criteria• Procurement

Challenge

Analysis Shows that Standards help Markets Improve Technology Performance and Lower Costs

Van Buskirk et al., submitted

Using Efficiency Levels and Longer Term Performance Targets to Stimulate New Technology

• Internationally coordinated efficiency levels and performance targets could:– Help markets anticipate future government policy– Ease regular updates in government labeling and

standards requirements– Recognize cost and other differences in national

circumstances– Simplify product certification and enforcement efforts

Car fuel efficiency targets (miles per gallon) by vehicle footprint for model years 2017-2025 under the U.S. Corporate Average Fuel Economy (CAFE) standard.

•Long term performance targets are driving innovation in the transportation sector.

•CAFE standard includes mid-term review to adjust targets as needed for 2022-2025 model years.

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Next Steps toward developing Internationally Coordinated Product-Specific Efficiency Levels and

Longer Term Performance Targets

• Design of coordinated efficiency level development and review process

• Identification of priority products• Formation of government working groups (new or

existing)

BACK-UP SLIDES

But we need to coordinate more

Government-led efficiency targets reduced television standby power consumption globally

www.iea-4e.org/files/otherfiles/0000/0214/4E_SP2_Policy_Brief-English.pdf

EE is moving target

• Recent Achievements – Future savings achieved by recently implemented or scheduled standards

• Remaining Economic Potential – based largely on products in market

• Technical Potential – reflects known technology, not usually in market now.

• Theoretical Potential (not shown)