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Energy Efficiency as a Green Growth Policy2nd Training of Trainers Capacity Development Seminar
GREEN GROWTH: A Path to Good Governance
Growth in energy demand in Asia and the Pacific
• Asia and the Pacific accounts for almost 45% of the global total primary energy supply in 2007.
• More than a 56% increase in the region’s energy supply in 1990.
Total primary energy supply of the world’s regions, 1990
and 2006
Source: Statistical Yearbook for Asia and the Pacific 2008, ESCAP, 2009
Energy mix in Asia and the Pacific
19902000
2007-1000000
0
1000000
2000000
3000000
4000000
5000000
6000000
HeatElectricity import/exportCombustible renewables and wasteSolar/wind/otherGeothermalHydroNuclearNatural gasPetroleum productsCrude, NGL and feedstocksPeatCoal and coal products
Projected growth – primary energy demand by region over time (Mtoe)
• Primary energy demand, along with energy related CO2 emissions are projected to grow by 40% by 2030 from 2007 levels.
• A large proportion of this growth will come from developing Asia as economies support their development needs.
1980
2000
2007
2015
2030
0
2000
4000
6000
8000
10000
12000
14000
16000 Latin America
Africa
Middle East
ASEAN
India
China
Eastern Europe and Eurasia
Pacific
Europe
North Amer-ica
Urbanization and population growth
• In 2008, the population in Asia and the Pacific was over 4.1 billion and it is projected to grow by another billion by 2030.
• In Asia-Pacific 40% of population (1.6 billion) currently lives in urban areas; by 2030, a majority (around 2.7 billion) will live in cities and towns
• 40% of Asia-Pacific’s urban residents live in slums, without adequate shelter and basic services
• Over 80% of the region’s GDP is produced in cities and towns
• Cities contribute 67% of world’s primary energy demand and are responsible for 71% of global CO2 emissions (*)
• Given the projected rate of urbanization, cities are expected to increase this share to 73% energy use and 76% of CO2 emissions by 2030 if nothing is done to correct current practices (*)
(*) World Energy Outlook 2008
6
Considerable unmet demand and social concerns•Ecological and social implications
▫Almost 810 million lack electricity in Asia*
•Enormous socio-economic costs▫Degrading environment▫Diseases, child mortality, weakening
social services▫Restricted opportunities for women
•Major implications for achieving the MDGs
*Source: World Energy Outlook 2009, IEA
Why energy efficiency?
•Saving precious resources which could be used for other purposes – future generations, export for income generation, poverty reduction, etc.
•Reduce import dependency – improved energy security
•Economic savings•Limit environmental impacts and
associated concerns
Source: Climate in Peril, UNEP, 2009
Current trends put us on track for a global average temperature increase of up to 6⁰C.
Impacts vary depending on the degree of temperature change, but can projected to significantly affect:
• water• food security• ecosystems• human health• oceans
International Energy Agency low carbon development projections
Source: OECD/IEA, 2008, Energy Technology Perspectives 2008
International Energy Agency analysis of emission reduction scenarios and contributions of emission reduction options.
Note: CCS – Carbon capture and storage
Lifespan of Assets and Infrastructure
Source: WWF Living Planet Report 2006
How infrastructure is planned and constructed has implications on how energy is used and consumed for generations.
Losses across the electricity supply chain
Source: “Electropedia” website http://www.mpoweruk.com/energy_efficiency.htm accessed 23 March 2010.
An example of lighting
S12
Primary Energy Heat-Power Transmission &
Distribution
End-use Conversio
n
Energy Service
Coal Power Plant Transmission Grid Lamp Radiant Energy Illumination
100
40 34 1.7
“Virtual” power plant• Every kWh saved equates to 3 or more
kWh worth of energy that does not need to be produced.
• What would be the equivalent-sized power plant capacity worth of energy saved?
• How much money does it cost to build a new power station? How much debt does a country need take on?
• How much does it cost to change a light bulb or encourage other end use energy efficiency practices and technologies?
Electricity demand by sector
Source: OECD/IEA, 2008, Energy Technology Perspectives 2008
Around 50% of all electricity is used in buildings
Energy efficiency in buildings
• Site management to suit the climate• Building form• Building fabric• Air infiltration• Natural day-lighting and ventilation• Passive solar heating and cooling• Artificial lighting• Limit fossil fuel based heating and
cooling• Other appliances and services• Harvesting renewable energy
Ulaanbaatar, Mongolia – winter temperatures
reach -40⁰C
Policy options to encourage energy efficiency in buildings
• Building codes and standards• Procurement regulations• Energy efficiency targets and quotas• Auditing • Standards and labels• Utility demand side management• Fiscal and taxation incentives• Information – awareness campaigns and training• Market creation for energy efficiency• Strengthened research and development• Government leadership
Strategies to encourage the use of energy efficient appliances• Information campaigns to make consumers aware of the on-going
costs associated with using various appliances; • Minimum energy performance standards for new and imported
appliances; • Energy labels that raise awareness of consumers on the energy
use of products they purchase; • Low interest loan programmes aimed at overcoming financial
barriers to the purchase of energy efficiency appliances, the initial cost of which may be higher than inefficient appliances;
• Energy audits that provide information on which items and appliances use the most energy and options for reducing this energy consumption;
• Tax and fiscal incentives that favour the purchase or import of high-efficiency appliances and equipment; and
• Energy service companies that provide clients with a variety of options for increasing the efficiency of operations.
Vietnam China Europe Korea Australia
Energy efficiency in industry
• Globally, one third of all energy use is for manufacturing industries.
• 25% of worldwide CO2 emissions, of which:
• Projected to double by 2050.
30%
27%
16%
27%
Industry sector
Iron and steelCement and other non-metallicPetrochemicalOther industry
Energy efficiency strategies in industry
• Energy management systems in industry require a holistic approach across the entire process and involving all departments.
Level 1: Active or efficient in-house management of energy efficiency through maintenance and housekeeping measures with only minimal investment
Level 2: Replacement of selected equipment requiring medium-sized investments
Level 3: Modification of entire manufacturing processes, which many require large-scale investments
Energy efficiency in industry• Many institutional, legislative and financial
policies can encourage energy efficiency industries, for example:▫Energy centres▫Training and development▫Equipment standards▫Labelling▫Energy/green industry audits▫Licensing and report▫Tariffs, taxes and financial incentives ▫Award programmes▫Social responsibility reporting
Transport•More than half the oil used worldwide;•25% of energy-related CO2 emissions;•Projected to increase more than 50% by
2030 and double by 2050;•Growth will be lead by developing
countries, especially China and India, due to income growth, poverty reduction leading to increased vehicle ownership.
Strategies to make transport energy efficiency
•Urban planning•Public transport•Fuel switching•Taxation and financial incentives/disincentives•Fuel consumption labelling•Demand management programmes – traffic
restrictions, parking restrictions, fees for travelling in certain areas, etc
•Vehicle maintenance programmes•Review of legislative and institutional barriers
Energy production and transmission efficiency• Alternative energy sources• Advanced/alternative fossil fuel technologies – e.g.
super critical, gas turbine, combined heat and power• Carbon capture and storage• Redesign of current power plants (condition of the
system)• Operation of current systems• Improving the quality of fuel• Fuel switching – coal to gas• Transmission distances• High voltage transmission• Superconducting or high efficiency transformers
