Energy efficiency earns its place as world's first fuel
The Energy Efficiency Market report is part of the same project that produces reports on oil, gas and coal, highlighting the place of energy efficiency as a major fuel.
Launched at the World Energy Congress in Korea, the new report identifies energy efficiency as the major contributor to potential cuts in carbon emissions, reductions in local pollution and cost effective energy security.
Speaking at the launch last week, IEA Executive Director Maria van der Hoeven said:
"Energy efficiency has been called a ‘hidden fuel’, yet it is hiding in plain sight. Indeed, the degree of global investment in energy efficiency and the resulting energy savings are so massive that they beg the following question: Is energy efficiency not just a hidden fuel but rather the world's first fuel?"
The report notes that energy efficiency markets around the world drew investment of up to $300billion in 2011, a level on par with global investments in renewable energy or fossil-fuel power generation.
The report contains a number of case studies including one showing the gains made in 11 IEA member countries. It found that from 2005 to 2010 those countries saved the energy equivalent of $420billion worth of oil as a result of implementing energy efficiency measures. In 2010, these measures exceeded the output from any other single fuel source. That year, the 11 IEA economies avoided burning 1.5 billion tonnes of oil equivalent.
The report notes that two key factors have driven the recent growth of the energy efficiency market: effective policies and the high price of energy. Energy standards, labelling, access to assessments and financing, and obligations on suppliers have proved crucial. High oil prices in particular have encouraged savings.
Maria van der Hoeven said:
“Simply put, the cleanest megawatt hour will be the one we never need, and the most secure barrel of oil the one we never burn. It is also often the cheapest and easiest to achieve in difficult economic conditions.”
