End-use Efficiency Research Articles

An integrated supply-demand model for the optimization of energy flow in the urban system

This research aims to develop a bottom-up integrated supply-demand model to assess the optimal performance of urban energy systems. To this end, an optimization model founded on the principles of microeconomics was developed and deployed using mathematical programming. In this model, the urban energy system is treated as an economic actor in the market seeking to establish an effective energy system to improve its overall resource efficiency with minimum total cost of the system. The model leads the system to achieve supply and demand energy commitments which include alternative energy and energy efficiency targets. In this paper, we apply the model to address the electricity deficiency in Delhi, India, as a case study. The results suggest that the saving at the end-user level could reach about 220 GWh per annum in the near future through improving energy end-use efficiency in the domestic sector. Besides this, the installation of about 40 MW from waste-to-electricity plants and generating approximately 210 GWh electricity from the rooftop solar PV by 2030 could enable a sufficient surplus for the power supply sector to meet the city's electricity demand in the near future. Even though the system has some inherent limitations stemming from the assumptions of microeconomics and challenges related to data needs, the model can help the local actors, from governments to property owners, to find the best solutions for their energy needs. Such a modeling framework could address an organization's sustainable performance at the urban level through the resource use optimization, minimization of waste, cleaner technologies and pollution limits which are used in achieving co-benefits and a broad range of Eco-Industrial Development (EID) goals.

International study on energy end-use data among industrial SMEs (small and medium-sized enterprises) and energy end-use efficiency improvement opportunities

The industrial sector is important to study in terms of improved energy efficiency, being one of the major energy-using sectors and responsible for a major share of CO2 emissions. The energy end-use (EEU) in the industrial sector is complex in general as processes are intertwined and interrelated. Moreover, bottom-up data of EEU on an aggregated level is scarce. Data for total energy supply like electricity, oil, coal, and natural gas exists but bottom-up data of what processes these energy carriers are used in, and moreover, where the major potential for implementation of energy efficiency measures (EEMs) exists, is less prevalent. This holds in particular for industrial small and medium-sized enterprises (SMEs). This makes policy formulation and design for industry a great challenge. Knowledge on where and how energy is used, as well as where opportunities for improvement exist, may provide good support for developing the most effective policies. Therefore, the aim of this study has been to present and compare available bottom-up energy data for industrial SMEs in four countries, namely Belgium, Italy, Japan and Sweden. Results show that the existence and quality of bottom-up EEU data differs largely between the countries and the development of a general taxonomy of structuring EEU data as well as EEMs is needed. Without the development of such a general taxonomy, the deployment level of EEMs and carbon dioxide emission reductions is unlikely to ever reach its full potential as knowledge is missing on how large the potential is, in which processes the major potential is found, how far industry has reached in terms of deployment levels, and in which areas future energy policies are needed. In conclusion, this paper of EEU and EEM in industrial SMEs addresses the high importance of future research in creating a harmonized data categorization, as this will greatly support the transition towards sustainable industrial energy systems.

Towards more effective behavioural energy policy: An integrative modelling approach to residential energy consumption in Europe

Energy behaviours represent an important underexploited resource in the context of promoting end-use energy efficiency, namely in the residential sector. However, addressing the multidimensional nature of energy behaviours is a complex task and more effective behaviour change interventions and policies grounded on comprehensive approaches are required. An integrative intervention to explore the influence of usage energy behaviours on energy consumption was developed through an innovative combination of modelling techniques. A real-world case study was utilised to generate contextualised understanding. This intervention supported problem structuring methods as pertinent tools to be utilised in complex human-centred energy research, such as energy behaviours, by enabling the development of tailored methodologies which minimise the human bias. It further confirmed real-world behaviour change interventions should involve the different energy stakeholders and be designed to be flexible and adaptive. Results confirmed variables associated with different dimensions significantly impact energy consumption. In this case study the promotion of residential energy efficiency includes both structural and energy behavioural actions, namely a better insulation of the dwellings and encouraging specific usage energy behaviours. These results support the need to consider an integrative perspective when addressing energy behaviours and designing effective behavioural change interventions and energy efficiency policies.

From demand side management (DSM) to energy efficiency services: A Finnish case study

Energy conservation is expected to contribute significantly to climate change mitigation and energy security. Traditionally, energy companies have had strong role in providing Demand Side Management (DSM) measures. However, after energy market liberalization in Europe, energy companies' DSM activities declined. In response, the EU issued Directive (2006/32/EC) on energy end-use efficiency and energy services (ESD) to motivate energy companies to promote energy efficiency and conservation, closely followed by Directive (2012/27/EU) on energy efficiency (EED), requiring the setting up energy efficiency obligation schemes. Despite strong political and economic motivation, energy companies struggle to develop energy efficiency services in liberalised energy markets due to conflicting institutional demands, which arise from contradicting policy requirements and customer relations. The main challenges in developing new innovative energy efficiency services, evidenced by an in-depth case study, were (1) the unbundling of energy company operations, which makes it difficult to develop services when the contribution of several business units is required and (2) the distrust among energy end-users, which renders the business logic of energy saving contract models self-contradictory. On the basis of the research, avenues out of these dilemmas are suggested.

An Assessment of the Energy-Efficiency Gap and Its Implications for Climate-Change Policy

Improving end-use energy efficiency—that is, the energy-efficiency of individuals, households, and firms as they consume energy—is often cited as an important element in efforts to reduce greenhouse-gas (GHG) emissions. Arguments for improving energy efficiency usually rely on the idea that energy-efficient technologies will save end users money over time and thereby provide low-cost or no-cost options for reducing GHG emissions. However, some research suggests that energy-efficient technologies appear not to be adopted by consumers and businesses to the degree that would seem justified, even on a purely financial basis. We review in this paper the evidence for a range of explanations for this apparent “energy-efficiency gap.” We find most explanations are grounded in sound economic theory, but the strength of empirical support for these explanations varies widely. Retrospective program evaluations suggest the cost of GHG abatement varies considerably across different energy-efficiency investments and can diverge substantially from the predictions of prospective models. Findings from research on the energy-efficiency gap could help policy makers generate social and private benefits from accelerating the diffusion of energy-efficient technologies—including reduction of GHG emissions.

Pioneering customers as change agents for new energy efficiency services—an empirical study in the Finnish electricity markets

Energy companies are in dire need of new business models that bring revenues from energy services rather than from increasing energy use. Smart meters and grids offer new opportunities for such services. However, there is a lack of research on what the market potential of such services could be in end-user markets. Certain innovative consumers are more likely to be the first to test new technology-based services and engage in new service co-creation. However, identification of such innovator or lead user customers is difficult especially for electricity end-use efficiency, an invisible and unexciting service for most consumers. This article identifies pioneering customers for novel energy efficiency services offered by electricity providers in terms of psychological factors from an empirical data collected with a consumer survey in spring 2013. We also analyse the similarities and differences between pioneering customers and the mass market with the principal component analysis. We find that certain characteristics of pioneering customers (expertise, ahead-of-the-market needs) could become more widespread in the market due to rising energy prices and improved billing and metering. However, some other aspects contributing to innovativeness (such as experimentalism) are less likely to develop among average consumers, who are more likely to rely on leading companies and seek recommendations from peers before obtaining new services. These differences among consumers need to be taken into account in order to offer consumers usable and useful products and peer group-relevant marketing.

Electric utility regulation and investment in green energy resources

Electric utility investment in end-use efficiency and renewable energy resources is examined with current forms of Pigouvian taxes and subsidies that encourage investment in green energy resources. A model of a rate-of-return-regulated firm considers the impacts of policies on social optimality. It shows that cap-and-trade/floor-and-trade forms of Pigouvian taxes and subsidies cause electric utilities to (over) underinvest in conventional generation and (under) overinvest in green resources when the allowed rate of return (is above) equals the cost of capital. Therefore, these forms of taxes and subsidies combined with rate base rate-of-return regulation result in suboptimal investment in one type of asset or another regardless of the level of return exogenously set by regulators. Therefore, public utility investment is always suboptimal, one way or another. The form of regulation is empirically tested from stock price signals and observed by lack of investment in the electric power infrastructure and too much investment in green resources that will not meet renewable portfolio standards and the demand for electric services.

An Assessment of the Energy-Efficiency Gap and Its Implications for Climate Change Policy

Improving end-use energy efficiency—that is, the energy-efficiency of individuals, households, and firms as they consume energy—is often cited as an important element in efforts to reduce greenhouse-gas (GHG) emissions. Arguments for improving energy efficiency usually rely on the idea that energy-efficient technologies will save end users money over time and thereby provide low-cost or no-cost options for reducing GHG emissions. However, some research suggests that energy-efficient technologies appear not to be adopted by consumers and businesses to the degree that would seem justified, even on a purely financial basis. We review in this paper the evidence for a range of explanations for this apparent “energy-efficiency gap.” We find most explanations are grounded in sound economic theory, but the strength of empirical support for these explanations varies widely. Retrospective program evaluations suggest the cost of GHG abatement varies considerably across different energy-efficiency investments and can diverge substantially from the predictions of prospective models. Findings from research on the energy-efficiency gap could help policy makers generate social and private benefits from accelerating the diffusion of energy-efficient technologies—including reduction of GHG emissions.

Comparing the magnitude of simulated residential rebound effects from electric end-use efficiency across the US

Many US states rely on energy efficiency goals as a strategy to reduce CO2e emissions and air pollution, to minimize investments in new power plants, and to create jobs. For those energy efficiency interventions that are cost-effective, i.e., saving money and reducing energy, consumers may increase their use of energy services, or re-spend cost savings on other carbon- and energy-intensive goods and services. In this paper, we simulate the magnitude of these ‘rebound effects’ in each of the 50 states in terms of CO2e emissions, focusing on residential electric end-uses under plausible assumptions. We find that a 10% reduction in annual electricity use by a household results in an emissions’ reduction penalty ranging from 0.1 ton CO2e in California to 0.3 ton CO2e in Alabama (from potential emissions reductions of 0.3 ton CO2e and 1.6 ton CO2e, respectively, in the no rebound case). Rebound effects, percentage-wise, range from 6% in West Virginia (which has a high-carbon electricity and low electricity prices), to as high as 40% in California (which has low-carbon electricity and high electricity prices). The magnitude of rebound effects percentage-wise depends on the carbon intensity of the grid: in states with low emissions factors and higher electricity prices, such as California, the rebound effects are much larger percentage-wise than in states like Pennsylvania. Conversely, the states with larger per cent rebound effects are the ones where the implications in terms of absolute emissions changes are the smallest.

End-use energy utilization efficiency of Nigerian residential sector

In this paper, the end-use efficiencies of the different energy carriers and the overall energy efficiency in the Nigerian residential sector (NRS) were estimated using energy and exergy analysis. The energy and exergy flows were considered from 2006 to 2011. The overall energy efficiency ranges from 19.15% in 2006 to 20.19% in 2011 with a mean of (19.96±0.23)% while the overall exergy efficiency ranges from 4.34% in 2006 to 4.40% in 2011 with a mean of (4.31±0.059)%. The energy and exergy efficiency margin was 15.58% with a marginal improvement of 0.07% and 0.02%, respectively when compared with previous results. The contribution of the energy carriers to the total energy and exergy inputs were 1.45% and 1.43% for electricity, 1.95% and 3% for fossil fuel and 96.6% and 95.57% for bio-fuel. The result shows that approximately 65% of the residence use wood and biomass for domestic cooking and heating, and only a fraction of the residence have access to electricity. LPG was found to be the most efficient while kerosene, charcoal, wood and other biomass the least in this order. Electricity utilization exergy efficiency is affected by vapor-compression air conditioning application apart from low potential energy applications. In addition, this paper has suggested alternatives in the end-use application and has demonstrated the relevance of exergy analysis in enhancing sustainable energy policies and management and improved integration techniques.

Interaction Effects of Market-Based and Command-and-Control Policies

Scientific evidence indicates that greenhouse gases emissions related to human activity are a significant contributor to global climate change. This paper investigates the impact of policy prescriptions and technologies for reducing U.S. greenhouse gas emissions. The analysis uses NERA’s NewERA integrated model, which combines a top-down general equilibrium macro model of the U.S. economy with a detailed bottom-up model of the North American electricity sector. It examines the cost of cutting emissions by 0% to 80% of 2005 levels by 2050 under several scenarios, which consider different assumptions about policy choices ranging from purely market-based policy such as a cap-and-trade program to purely command-and-control policies and technology involving availability and efficacy of nuclear, Carbon Capture and Storage, renewables, and end-use efficiency technology. Our analysis shows a distinct efficiency advantage for market-based mechanisms and interaction of command-and-control mandates with market-based policies increase market distortions leading to higher welfare loss. We show that under such a mixed policy regime, carbon price is an unsuitable indicator of economic costs.

Modeling an aggressive energy-efficiency scenario in long-range load forecasting for electric power transmission planning

Improving the representation of end-use energy efficiency, and of the effects of policies and programs to promote it, is an emergent priority for electricity load forecasting models and methods. This paper describes a “hybrid” load forecasting approach combining econometric and technological elements that is designed to meet this need, in a novel application to long-run electric power transmission planning in the western United States. A twenty-year load forecast incorporating significant increases in energy-efficiency programs and policies across multiple locations was developed in order to assess the potential of efficiency to reduce load growth and requirements for expanded transmission capacity. Load forecasting and transmission planning background is summarized, the theoretical and empirical aspects of the hybrid methodology described, and the assumptions, structure, data development, and results of the aggressive efficiency scenario are presented. The analysis shows that substantial electricity savings are possible in this scenario in most residential and commercial end-uses, and in the industrial sector, with magnitudes depending upon the specific end-use as well as upon the geographic location of the utility or other entity providing the electricity.

Illumination, lighting technologies, and indoor environmental quality

Illumination, lighting technologies, and indoor environmental quality

Modelling the Italian household sector at the municipal scale: Micro-CHP, renewables and energy efficiency

This study investigates the potential of energy efficiency, renewables, and micro-cogeneration to reduce household consumption in a medium Italian town and analyses the scope for municipal local policies. The study also investigates the effects of tourist flows on town's energy consumption by modelling energy scenarios for permanent and summer homes. Two long-term energy scenarios (to 2030) were modelled using the MarkAL-TIMES generator model: BAU (business as usual), which is the reference scenario, and EHS (exemplary household sector), which involves targets of penetration for renewables and micro-cogeneration. The analysis demonstrated the critical role of end-use energy efficiency in curbing residential consumption. Cogeneration and renewables (PV (photovoltaic) and solar thermal panels) were proven to be valuable solutions to reduce the energetic and environmental burden of the household sector (−20% in 2030). Because most of household energy demand is ascribable to space-heating or hot water production, this study finds that micro-CHP technologies with lower power-to-heat ratios (mainly, Stirling engines and microturbines) show a higher diffusion, as do solar thermal devices. The spread of micro-cogeneration implies a global reduction of primary energy but involves the internalisation of the primary energy, and consequently CO2 emissions, previously consumed in a centralised power plant within the municipality boundaries.

When does unreliable grid supply become unacceptable policy? Costs of power supply and outages in rural India

Despite frequent blackouts and brownouts, extension of the central grid remains the Indian government׳s preferred strategy for the country׳s rural electrification policy. This study reports an assessment that compares grid extension with distributed generation (DG) alternatives, based on the subsidies they will necessitate, and costs of service interruptions that are appropriate in the rural Indian context. Using cross-sectional household expenditure data and region fixed-effects models, average household demand is estimated. The price elasticity of demand is found to be in the range of −0.3 to −0.4. Interruption costs are estimated based on the loss of consumer surplus due to reduced consumption of electric lighting energy that results from intermittent power supply. Different grid reliability scenarios are simulated. Despite the inclusion of interruption costs, standalone DG does not appear to be competitive with grid extension at distances of less than 17km. However, backing up unreliable grid service with local DG plants is attractive when reliability is very poor, even in previously electrified villages. Introduction of energy efficient lighting changes these economics, and the threshold for acceptable grid unreliability significantly reduces. A variety of polices to promote accelerated deployment and the wider adoption of improved end-use efficiency, warrant serious consideration.

Incorporating energy efficiency into electric power transmission planning: A western United States case study

Driven by system reliability goals and the need to integrate significantly increased renewable power generation, long-range, bulk-power transmission planning processes in the United States are undergoing major changes. At the same time, energy efficiency is an increasing share of the electricity resource mix in many regions, and has become a centerpiece of many utility resource plans and state policies as a means of meeting electricity demand, complementing supply-side sources, and reducing carbon dioxide emissions from the electric power system. The paper describes an innovative project in the western United States to explicitly incorporate end-use efficiency into load forecasts – projections of electricity consumption and demand – that are a critical input into transmission planning and transmission planning studies. Institutional and regulatory background and context are reviewed, along with a detailed discussion of data sources and analytical procedures used to integrate efficiency into load forecasts. The analysis is intended as a practical example to illustrate the kinds of technical and institutional issues that must be addressed in order to incorporate energy efficiency into regional transmission planning activities.

Should policy-makers allocate funding to vehicle electrification or end-use energy efficiency as a strategy for climate change mitigation and energy reductions? Rethinking electric utilities efficiency programs

In order to reduce greenhouse gas emissions in the United States by an order of magnitude, a portfolio of mitigation strategies is needed. Currently, many utilities pursue energy efficiency programs. We study a case where utilities could choose whether to allocate their energy efficiency budget to either end-use efficiency or vehicle electrification as a means to reduce CO2 emissions. We build a decision space that displays the conditions under which utilities should pursue either strategy. To build such decision space, assumptions are needed on how consumers respond to electric vehicle incentives, and what would be the baseline vehicle selected by consumers if no incentives were in place. Since these two aspects are highly uncertain, we treat them parametrically: if consumers are replacing a conventional vehicle with a PHEV, utility incentive programs to induce PHEV adoption appear to be cost-effective for a wide range of efficiency program costs and grid emissions factors.

ENERGY EFFICIENCY OBLIGATION SCHEMES IN THE ENERGY EFFICIENCY DIRECTIVE - AN ENVIRONMENTAL ASSESSMENT

This paper will focus on the 2012/27/EU Energy Efficiency Directive (EED). Because the EED is a rather new legal act, its assessment from an environmental law perspective has been neglected in the scientific literature. The previous regulation (Directive 2006/32/EC on end-use energy efficiency) has already been analyzed from an ecological point of view (Banyai, 2013). Therefore, the next question automatically arises: does the new directive take steps to improve the European Union (EU) regulations concerning energy efficiency? The EED undoubtedly took a step forward by providing legally binding frameworks for the reduction of energy consumption (instead of the previous political and non-binding energy efficiency goals) and has done this in an absolute way, which is the most important requirement from an ecological point of view. However, despite a few provisions of the Directive having already met the ecological requirements, in reality, the regulation misses theoretical ground.

Transition towards a green economy: role of FDI

The energy use in India is at present considerably higher than a few decades ago, mainly as a result of economic growth. The primary source of energy in India, thermal power, is a source of greenhouse gas emissions. To stabilise the CO2 emissions and promote sustainable development, economic development must go hand in hand with low-carbon society’s development. A transition towards a green economy will require a shift away from current production and consumption patterns of energy. This is achievable through improved process and end-use energy efficiency, and increased adoption of cleaner energy sources. Fostering increased investments in clean energy and energy efficiency is an important step to achieving more sustainable economic development. Therefore, we have undertaken this study that attempts to examine the impact of FDI in Indian power sector on the path of clean energy.

Policy drivers for improving electricity end-use efficiency in the USA: an economic–engineering analysis

This paper estimates the economically achievable potential for improving electricity end-use efficiency in the USA from a sample of policies. The approach involves identifying a series of energy efficiency policies tackling market failures and then examining their impacts and cost-effectiveness using Georgia Institute of Technology's version of the National Energy Modeling System. By estimating the policy-driven electricity savings and the associated levelized costs, a policy supply curve for electricity efficiency is produced. Each policy is evaluated individually and in an integrated policy scenario to examine policy dynamics. The integrated policy scenario demonstrates significant achievable potential: 261 TWh (6.5 %) of electricity savings in 2020 and 457 TWh (10.2 %) in 2035. All 11 policies examined were estimated to have lower levelized costs than the average electricity retail price. Levelized costs range from 0.5 to 8.1 cents/kWh, with the regulatory and information policies tending to be most cost-effective. Policy impacts on the power sector, carbon dioxide emissions, and energy intensity are also estimated to be significant.