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Objectives

Objectives. Highlight the contribution energy efficiency standards and labels (S&L) can make to GHG emission reductions It provides a very low cost mitigation option Discuss the importance to the Electricity Industry

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Objectives

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  1. Objectives • Highlight the contribution energy efficiency standards and labels (S&L) can make to GHG emission reductions • It provides a very low cost mitigation option • Discuss the importance to the Electricity Industry • Identify future opportunities for increasing the awareness and coverage of S&L activities

  2. Standards and labelling: dynamic policy measures to raise equipment efficiency

  3. What about energy labelling?

  4. Do they work? EU refrigerator trends

  5. 54+ countries with 80% of the world’s population have standards and labelling

  6. What are the impacts of current standards & labelling policies? • Current policies across the IEA are on course to: • reduce electricity demand by 12.5% in 2020 • avoid 209 Mt-CO2 emissions per year by 2020 • The net cost of avoided CO2 in 2010 is projected to be: • $78/Tonne-CO2 in IEA-North America • 241 Euro/Tonne-CO2 in IEA-Europe • Substantially greater savings are possible

  7. Residential electrical electricity consumption scenarios in IEA countries -35%

  8. What is the impact of strengthening policies to deliver the lowest overall energy service cost? • For domestic electric appliances in IEA countries alone it would: • reduce electricity demand by 35% in 2020 • avoid 524 Mt-CO2 emissions per year • at a strong net negative cost! At a global level the emission reduction potential is very large • Just a 10% efficiency improvement delivers 1000mtpy CO2 reductions by 2020

  9. But standards and labelling are still in their infancy • Beyond appliances they are increasingly being applied to other end-uses including: • Buildings (e.g. EU Energy Performance in Buildings Directive, US Energy Star) • Vehicles (EU, Japan, China) • Commercial equipment (refrigerated display cabinets, central air conditioners, office equipment etc.) • Industrial equipment (motors, boilers) • Non-energy using products (windows, tyres, insulation) C E F A

  10. 30 25 Base Case High Efficiency Case 20 TWh 15 10 5 0 2000 2005 2010 2015 2020 Distribution Transformer - India Total Electricity Consumption by Distribution Transformers in India Transformer losses can be significantly improved (>50%)

  11. India - Impact of Energy Efficiency in 2020 • 4 products: 22% of electricity consumption in 2020, in business-as-usual case • If MEPS by 2010, estimated savings of 2.5% by 2020 • Cumulative CO2 reductions: 538 million tons • Net present value: US$5.5 billion

  12. Future Directions and Outlook • S&L: vital tools of energy efficiency policies • But require international commitment by governments and industry • International alignment and coverage important • Electricity industry should support (increasing) minimum standards • Move to energy service provision – not just selling electricity • Active energy efficiency programs pay dividends • Load management, increased energy security and reduced system costs and investment requirements • Need to make the business case for international standards convergence and engaging the developing world

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