New IEA report provides evidence that energy efficiency is making headway

Recently, the IEA published its first “Energy Efficiency Market Report.” EcoSeed provides an excellent account of the report.

Energy efficiency saves billion of dollars – IEA report

Energy efficiency is playing a crucial role in the world, saving billions of dollars according to a report released by the International Energy Agency.

Findings of the paper “Energy Efficiency Market Report” shows that in a group of 11 I.E.A. member countries, energy efficiency measures saved an energy equivalent of $420 billion from 2005 to 2010.

The report pointed out that had it not been for the energy efficiency measures that were implemented, consumers in the 11 IEA member countries would be consuming, and paying for, about two-thirds more energy than they are currently using.

The energy savings from efficiency measures are so vast in 2010 in those 11 countries that it actually exceeded the output from any other fuel source. This energy savings helped those countries avoid burning 1.5 billion tonnes of oil equivalent.

In 2011, the energy efficiency markets around the world drew investments of up to $300 billion – a level that is equal with global investments in renewable energy or fossil-fuel power generation.

“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 rather the world’s first fuel?” said IEA Executive Director Maria van der Hoeven as she presented the report at the World Energy Congress in Korea.

According to the report, the two key factors that have driven the growth of the energy efficiency market are effective policies and high price of energy. Among the measures that prove crucial are energy standards, labeling, access to assessments and financing, and obligations on suppliers.

However, the report noted that the absence of dynamic pricing in energy markets together with subsidies, high transaction costs, information failure, and a lack of institutional capacity can sometimes impede efficiency improvements.