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Appliance and Equipment Efficiency: Policy Driven Innovation

Appliance and Equipment Efficiency: Policy Driven Innovation. Sarah Clough Australian Department of Resources, Energy and Tourism. Gabrielle Dreyfus US Department of Energy. 18 September 2013. End-use Energy Efficiency is cost effective. We need to do more with cost effective options.

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Appliance and Equipment Efficiency: Policy Driven Innovation

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  1. Appliance and Equipment Efficiency: Policy Driven Innovation Sarah Clough Australian Department of Resources, Energy and Tourism Gabrielle Dreyfus US Department of Energy 18 September 2013

  2. End-use Energy Efficiency is cost effective

  3. 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.

  4. But we need to coordinate more or risk repeating the “errors of history” EU & AU desktop computer total energy consumption comparison

  5. 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

  6. New Technologies Key to Long Term Gains BUENAS (LBNL, 2012)

  7. 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

  8. 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

  9. Some governments are already trying to stimulate new product technologies: • Awards • Performance criteria • Procurement Challenge

  10. Analysis Shows that Standards help Markets Improve Technology Performance and Lower Costs Van Buskirk et al., submitted

  11. 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

  12. 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. More fuel efficient 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.

  13. 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)

  14. Back-up Slides

  15. But we need to coordinate more

  16. Government-led efficiency targets reduced television standby power consumption globally www.iea-4e.org/files/otherfiles/0000/0214/4E_SP2_Policy_Brief-English.pdf

  17. 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)

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