IEA declares energy efficiency world’s ‘first fuel’

  • Energy efficiency
    Energy efficiency investment makes it the world's first fuel, according to the IEA. Image: Passivhaus Institut.

Energy efficiency has been described as the world’s “first fuel” in efforts to cut carbon emissions and promote energy security in a major new report from the International Energy Agency.

The IEA’s inaugural ‘Energy Efficiency Market Report’ says the scale of recent investment in energy efficiency worldwide makes it as significant in its contribution to energy demand as investment in renewable energy or fossil fuel generation.

"Energy efficiency has been called a ‘hidden fuel’, yet it is hiding in plain sight," said IEA executive director Maria van der Hoeven. “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 IEA found that in 2011, energy efficiency measures worldwide attracted investment of some US$300 billion, a level on par with global investments in renewable energy or fossil-fuel power generation.

Between 2005 and 2010, the IEA calculated that energy efficiency measures across 11 of its member countries (Australia, Denmark, Finland, France, Germany, Italy, Japan, the Netherlands, Sweden, the United Kingdom and the United States) saved the energy equivalent of US$420 billion worth of oil.

In these same countries, the IEA said that were it not for energy efficiency measures implemented in the past three years, consumers would be using and paying for two-thirds more energy than is the case.

Overall, in 2010 energy savings from efficiency measures exceeded the output from any other single fuel source in these same countries, with the 11 IEA countries avoiding burning 1.5 billion tonnes of oil equivalent thanks to efficiency improvements developed since 1974.

The IEA highlighted two factors as being particularly key to the upswing in energy efficiency adoption: effective policies, such as improved energy standards and product labelling, and the increasing price of energy, particularly oil.

Brian Smithers, strategic director for Northern Europe at UK-based renewable energy products and services distributor, Rexel, said: “It’s about time the role of energy efficiency was recognised on a global scale, so it’s great to see the IEA placing it alongside traditional as well as renewable fuels.

“However, if we are to shift the perception of energy efficiency from a ‘hidden fuel’ to the world’s ‘first fuel’ we need to invest in education. In the UK, for example, there is a huge lack of awareness around energy efficiency, which is seriously hampering our progress against carbon reduction targets. To put it simply, to meet the UK’s carbon reduction targets by 2050, we need to improve one home every minute, equating to 26 million refurbished energy-efficient homes by 2050.

“If we are to achieve this then we, the industry, need to do more to educate ourselves, our customers and the public about why energy efficiency is important and how it will benefit the whole country both in financial terms and the significant environmental benefits it brings.”

Newsletter

Preview Latest
Subscribe
We won't share your details - promise!

Publications

  • Photovoltaics International 23rd Edition

    This issue of Photovoltaics International, our 23rd, offers key insights into some of the technologies that are ready to move from lab to fab in support of these goals. ISC Konstanz offer a glimpse of what the low-cost, high-efficiency solar cells of the future might look like. On page 35 the institute’s authors give an overview of what they call Konstanz’ “technology zoo”, encompassing their so-called BiSoN, PELICAN and ZEBRA cell concepts, all of which are aimed at increasing energy yield at the lowest possible cost.

  • Manufacturing The Solar Future: The 2013 Production Annual

    In the ever-changing global solar markets, cost reduction and measures to increase cell efficiencies are the key tools available to PV manufacturers to create new opportunities and drive your business to the next level. Manufacturing the Solar Future 2013 is the third in the Photovoltaics International PV Production Annual series, delivering the next instalment of in-depth technical manufacturing information on PV production processes designed to help you gain the competitive edge.

Partners

Acknowledgements

Solar Media