Energy efficiency is generally the largest, least expensive, most benign, most quickly deployable, least visible, least understood, and most neglected way to provide energy services. The 39% drop in U.S. energy intensity (primary energy consumption per dollar of real gross domestic product) from 1975 to 2000 represented, by 2000, an effective energy "source" 1.7 times as big as U.S. oil consumption, three times net oil imports, five times domestic oil output, six times net oil imports from Organization of Petroleum Exporting Countries (OPEC) members, and 13 times net imports from Persian Gulf countries. It has lately increased by three percent per year, outpacing the growth of any source of supply (except minor renewables). Yet energy efficiency has gained little attention or respect for its achievements, let alone its far larger untapped potential.
The potential of energy efficiency is increasing faster through innovative designs, technologies, policies, and marketing methods than it is being used up through gradual implementation. The uncaptured "efficiency resource" is becoming bigger and cheaper even faster than oil reserves have lately done through stunning advances in exploration and production. The expansion of the "efficiency resource" is also accelerating as designers realize that whole-system design integration can often make very large (one or two order-of-magnitude) energy savings cost less than small or no savings, and as energy-saving technologies evolve discontinuously rather than incrementally. Similarly rapid evolution and enormous potential apply to ways to market and deliver energy-saving technologies and designs; research and development can accelerate both.
Aruvian's R'search's report Looking at Energy Efficiency – Focus on United States brings you the entire concept of energy efficiency, analyzing the basics, understanding the concept of energy efficiency, the benefits of energy efficiency, effect on electric utilities, market failures, business opportunities, cost effectiveness of energy efficiency programs, methods on how one can accelerate energy efficiency, and much more. Looking at Energy Efficiency – Focus on United States takes a look at this vastly unexplored field in the energy industry in this comprehensive and intelligent analysis.
Table of Contents
A. Executive Summary
B. Definition & Importance of Energy Efficiency
Terminology
Efficiency along Energy Conversion Chains
Energy Efficiency and Decarbonization
Service Redefinition
Historic Summaries of Potential
Discontinuous Technological Progress
C. Concept of Energy Efficiency
D. Measuring Energy Efficiency
Market-Basket Approach
Limitations of the Market-Basket Approach
Comprehensive Approach
Limitations of the Comprehensive Approach
E. Analyzing the Benefits of Energy Efficiency
Indirect Benefits from Qualitatively Superior Services
Leverage in Global Fuel Markets
Buying Time
Integrating Efficiency with Supply
Gaps in Engineering Economics
F. Electric Utilities and Energy Efficiency
Energy Efficiency in Production & Distribution of Electricity
Demand-Side Management
Economic Benefits
G. Engineering vs. Economic Perspectives
H. Diminishing vs. Expanding Returns to Investments in Energy Efficiency
Empirical Examples
The Right Steps in the Right Order
I. Market Failures & Business Opportunities
J. The Effectiveness and Cost of Energy Efficiency Programs
Demand Side Management
Voluntary and Information Programs
Effectiveness and Cost of These Programs
K. Ways to Accelerate Energy Efficiency
Historical & Good Methods
New and Better Methods
De-emphasizing Traditionally Narrow Price-Centric Perspectives
L. Need for Energy Efficiency Investment Financing Interventions
Delivery of Energy Efficiency Financing is an Institutional Development Issue
Marketing Energy Efficiency Concepts
Options for Financing Energy Efficiency
Increasing Energy Efficiency Project Investment
M. Natural Gas & Energy Efficiency Opportunities
N. Research & Development in Energy Efficiency – Focus on US DOE
Motivation for R&D
Issues in R&D
Findings from Present-day R&D Programs
O. Prices, Energy Usage, & Investment in Energy Efficiency
Evidence from Policies Already Applied
Policy Mix to Deliver High-Volume Savings at Low Cost
Regulation
Fiscal and Other Financial Incentives
Voluntary Agreements
Social Objectives
Future Costs & Potential
P. Energy Efficiency in the Budget FY 2007
DOE Budget
EPA Budget
Energy Policy Act of 2005
Efficiency Standards for Consumer and Commercial Products
Efficiency Goals for Federal Buildings
Tax Incentives for Efficiency and Conservation
Energy Efficiency Tax Revenue Effect
Q. Energy Efficiency's Role in Energy Security, By Fuel
Electricity Demand-Side Management (DSM) To Improve Reliability
Natural Gas Conservation Through Energy Efficiency in Buildings and Equipment
Petroleum Conservation Through Energy Efficiency In Vehicles
R. Energy Efficiency Programs Targeted at Climate Change
Energy Efficiency and Carbon Dioxide Emissions Projections
International Context & Policy
United Nations
Group of Eight (G8) Industrialized Nations
U.S. Climate-Focused Energy Efficiency Programs
Domestic Programs
Foreign Assistance Programs
California's Regulatory Action on Automobile CO2 Emissions Promoting Energy Efficiency
S. Case Studies
California
Iowa
Florida
Massachusetts
T. Appendix
U. Glossary of Terms
List of Figures & Tables
Figures
Figure 1: To deliver one unit of flow in the pipe requires about 10 units of fuel at the power plant, thus those 10-fold compounding losses can be turned around backward, yielding 10-fold compounding savings of fuel for each unit of reduced friction or flow in the pipe.
Figure 2: Diminishing Returns Can Be True for some Components
Figure 3: Optimizing Whole Systems for Multiple Benefits Can Often "tunnel through the cost barrier" Directly to the Lower-Right-Corner Destination, making very Large Energy Savings Cost less than Small or no Savings
Figure 4: Historical Energy Intensity of the U.S. Economy, 1970-1996
Figure 5: Actual and Projected U.S. Carbon Emissions
Figure 6: Energy Efficiency Potential
Figure 7: Percentage of Consumption by End-Use in Buildings, 2004
Figure 8: Percentage of Primary Energy used in the Manufacturing Sector by Major Industrial Category in 1994
Figure 9: Fuel Used in the U.S. Transportation Sector, 1996
Figure 10 California's Investments in Energy Efficiency
Figure 11: Changes in Energy per GDP Decomposed into Changes in Energy Service per GDP & Energy Intensity Effect, 1973-1998
Figure 12: Energy Prices, 1980-2030 (2005 dollars per million Btu)
Figure 13: Energy Use Per Capita & Per Dollar of Gross Domestic Product, 1980-2030
Figure 14: Total Energy Production & Consumption, 1980-2030 (quadrillion Btu)
Figure 15: Energy Expenditures in the U.S. Economy, 1990-2030
Figure 16: Energy Use per Capita and per Dollar of Gross Domestic Product, 1980-2030
Figure 17: Primary Energy Consumption by Sector, 1980-2030 (quadrillion Btu)
Tables
Table 1: EPA Funding for Climate Protection Energy Efficiency Programs (CPP)
Table 2: EPACT Energy Efficiency Standards
Table 3: H.R. 6, Tax Revenue Effect ($ Billion)
