The Future of Energy Efficiency: Technology and Strategies To Improve Energy Efficiency

Date: June 22, 2010
Pages: 134
US$ 2,875.00
Publisher: Business Insights
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)

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The Future of Energy Efficiency: Technology and Strategies To Improve Energy Efficiency
Energy efficiency has yet to see a period in history more open to its products than now, thanks to a convergence of events: rising energy prices, concerns about climate change, and a desire to reduce use of petroleum products and promote clean energy. Several nations have set double digit goals to reduce their energy use and are backing plans with sizable government investment.

US President Barack Obama allotted $20 billion for energy efficiency as part of the nation’s federal stimulus package and set a target for the nation to reduce electricity use 20% by 2020. China, the world’s second largest electricity consumer, also has set aggressive efficiency goals. The nation in recent years built power plants at a rate of about 90 GW per year, nearly as much power as Germany has installed in total. In search of more cost effective, less polluting measures, China has set a goal to no more than double energy use by 2020. In addition, China and the US in late 2009 agreed to collaborate on building an energy efficiency industry. This is a significant step considering that together the two nations consume 40% of the world’s energy, so can achieve considerable economies in manufacturing energy efficiency equipment. Meanwhile, the European Union has set a target to reduce annual consumption of primary fuels 20% by 2020.

Still, the energy efficiency sector faces some obstructions, chief among them a reticence by consumers and businesses to adopt its products. New, smart technologies are expected to draw the consumer toward energy efficiency pursuits in the near future, as are plug-in electric cars that offer a possible revenue source to their owners. In other cases, technologies will be installed in power plants and transmission systems that energy consumers never see, yet benefit from. Thus in a recessionary economic period when many industries are waning, the energy efficiency industry appears to be on a strong, upward trajectory worldwide. This report shows how and why

Key features of this report
  • Analysis of growth in worldwide energy demand as energy supplies tighten and costs rise. Discussion of why these factors are causing nations to pursue energy efficiency.
  • Review of common programs and legislation that foster greater use of energy efficiency, as well as barriers to its adoption.
  • Review of major types of power plants and explanation of how they are becoming more efficient. Analysis of gas, coal, nuclear and cogeneration.
  • Analysis of inefficiencies in electric transmission, including line loss and congestion. Review of solutions, such as infrastructure upgrades, specialized pricing mechanisms, smart grid and microgrid.

Scope of this report
  • Understand the drivers behind the current worldwide effort to increase energy efficiency
  • Analyze the opportunities available for investment in technologies that improve efficiency for energy consumers, as well as in vehicle fuel use and power production and transmission
  • Be better-informed about the political and regulatory goals, plans and funding mechanisms for energy efficiency worldwide.
  • Assess the attraction and the risks for your company of investing in new energy efficiency and smart grid technologies.
  • Benefit from the report’s information to help make your company’s next international investment decision in energy savings or energy production.

Key Market Issues
  • Growing energy consumption: Increased use of appliances in advanced economies, along with growing electrification in developing nations, will increase energy demand 44% by 2030
  • Rising costs of energy production:- Construction of new generation facilities will increase energy costs. In the transportation sector, governments are trying to diminish reliance on oil, seeing it as a political and economic liability.
  • Increasing political support for energy efficiency:- Governments worldwide have set aggressive targets to increase energy efficiency, and have devoted significant funds to encourage consumers to adopt energy saving technologies.
  • The marriage of information technology and energy:- The semiconductor already has significantly decreased energy use over the last 40 years, a trend expected to continue, as the energy industry makes use of the Internet and digital devices to better monitor and control energy use.

Key findings from this report
  • To serve this growing consumption, the world is expected to build more power plants and transmission lines, increasing electric generation by 77%, from 18trn kilowatt-hours in 2006 to 31.8trn in 2015, according to EIA.
  • Energy efficiency is commonly viewed as the quickest, cheapest and least polluting way to meet growing demand for energy. Energy efficiency costs have held steady at about 2.5 cents/kWh in recent years, making efficiency at least one-third the cost of any new power plant.
  • About two thirds of the energy from fuels used for power generation is lost during conversion to electricity.
  • The majority efficiency losses occur in the conversion of heat energy to mechanical energy in steam driven generators at gas-fired, coal-fired, and nuclear facilities. These facilities provide nearly 56% of electricity worldwide.
  • The way we now delivery power is inefficient. Transmission lines lose 2% to 4% of the power they move because of line friction.

  • Key questions answered
    • How much will energy consumption increase over the next two decades. What parts of the world will see the greatest increase?
    • How does energy efficiency compare on a cost basis against generation?
    • Why do consumers resist energy efficiency and what innovations are in place to encourage their participation?
    • What role does energy efficiency play in economic development. What is energy intensity and why is it important to a nation’s economy?
    • How close are we to significantly increasing the efficiency of conventional power plants?
    • Why are nations making transmission upgrades and expansions now and how will these investments improve the electric system.
    The Future of Energy Efficiency
    Executive summary
    Energy generation
    Efficiency in the grid
    End-user efficiency: residential
    End-user efficiency: transportation


    Too much demand, too little energy
    Oil running out?
    The world plugs in
    What drives the use of coal?
    Why energy efficiency is important today
    Producing more with less energy
    Climate change: driving factor
    Legislation and market instruments
    Utility decoupling
    Energy efficiency resource standards (EERS) and white tags
    Who are the buyers?
    CO2 reduction schemes
    Efficiency on equal footing with generation
    Rebates, loans, tax incentives
    Barriers to energy efficiency
    Curing energy anemia


    Combined cycle gas turbine
    Cogeneration and trigeneration
    Integrated gasification combined cycle
    Supercritical and ultrasupercritical pulverized coal
    Nuclear power
    Improving efficiency for nuclear power
    Additional opportunities for efficiency improvements
    Market conditions driving investment in efficiency technologies
    Market barriers to investment in efficiency enabling technologies


    The grid and its significance
    Why the grid needs to be changed
    Restructured markets
    Integrating renewable energy
    Difficulty siting transmission
    Technology solutions
    New high voltage lines
    Decentralized generation and microgrids
    Smart grid
    Smart meters


    Residential energy consumption on the increase
    Legislation promoting household efficiency
    Main sources of household energy use
    Heating and cooling systems
    Ground source heat pump
    Air Ducts
    District heat and cooling
    Smart appliances
    Smart Home Automation
    Building materials and building standards


    Growth in use of autos
    OECD countries
    Non-OECD countries
    Energy efficiency in transportation
    Technology challenges
    Legislation promoting fuel efficiency
    United States
    European Union
    An electrified transportation system
    Hybrid Electric vehicles
    Battery Electric vehicles (BEVs)
    Plug-in hybrid electric vehicles (PHEV)
    Fuel Cell Vehicles
    Energy efficiency of electric vehicles


    Global trends in energy efficiency
    International Partnership for Energy Efficiency Cooperation
    Energy straightjacket
    Investment in energy efficiency
    Economics of energy efficiency and possible savings
    Potential of energy efficiency improvements on a global level


    Figure 1.1: Percentage of total commercial energy use by appliance (%), 2003
    Figure 1.2: US Energy Efficiency Resource Standards (EERS) for 23 states, 2010
    Figure 1.3: Energy intensity (MJ/US$), December 2008
    Figure 2.4: Operation of a combined cycle plant
    Figure 2.5: Growth in CO2 and growth in emissions from natural gas use in the electric power sector
    Figure 2.6: Comparison of air cooling and steam cooling technologies
    Figure 2.7: Generation process at pulverized coal facility
    Figure 3.8: Key characteristics of the smart grid
    Figure 4.9: Average retail price of electricity to ultimate customers, (cents/kWh) 1996-2009
    Figure 4.10: Household electricity use selected countries (US$/unit), 2009
    Figure 4.11: Average projected percentage annual change in world energy consumption by fuel price (%), 2007-2035
    Figure 5.12: Breakdown of transportation energy by mode (%), 2006
    Figure 5.13: US hybrid electric vehicle sales (units), 1999-2009
    Figure 6.14: Industrialized nations, greenhouse emission reduction pledges by 2020 (%), 2010


    Table 1.1: Estimated levelized cost of new generation resources, (US$/MWH) 2016
    Table 1.2: Percentage of total commercial energy use by appliance (%), 2003
    Table 1.3: US Energy Efficiency Resource Standards (EERS) by state, 2010
    Table 1.4: Energy intensity (MJ/US$), December 2008
    Table 2.5: Relationship between firing temperature and efficiency in CCGT
    Table 2.6: Growth in CO2 and growth in emissions from natural gas use in the electric power sector
    Table 2.7: IGCC estimated efficiency gains by technology, 2008
    Table 2.8: Capital cost with each technology improvement (US$) 2008
    Table 3.9: Worldwide electricity losses from transmission and distribution (qn Btu), 2009
    Table 3.10: Costs of transmission congestion by region in the Eastern US (US$bn), 2009
    Table 3.11: US costs of new transmission (US$/mile), 2010
    Table 3.12: Length of new and refurbished power lines until 2020 - Projects of European Significance (Kilometers), 2010
    Table 3.13: Average cost for one hour of power interruption (US$), 2008
    Table 4.14: Average retail price of electricity to ultimate customers, (cents/kWh) 1996-2009
    Table 4.15: Household electricity cost to user selected countries (US$/unit), 2009
    Table 4.16: Average projected percentage annual change in world energy consumption by fuel price (%), 2007-2035
    Table 4.17: US household energy consumption by usage (%), 2007
    Table 5.18: Breakdown of transportation energy by mode (%), 2006
    Table 5.19: Average annual change in GDP, population and energy consumption for transportation by OECD region (%), 2006
    Table 5.20: US hybrid electric vehicle sales (units), 1999-2009
    Table 5.21: Energy efficiency by vehicle type, 2009
    Table 6.22: Industrialized nations, greenhouse emission reduction pledges by 2020 (%), 2010
    Table 6.23: US Super ESCOs (designated as of December 2009)
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