Energy Efficiency: Market Trends and Medium-Term Prospects

Energy efficiency has been referred to as a ‘hidden fuel’, one that extends energy supplies, increases energy security, lowers carbon emissions and generally supports sustainable economic growth. Yet it is hiding in plain sight: in 2011, investments in the energy efficiency market globally were at a similar scale to those in renewable energy or fossil-fuel power generation.

The Energy Efficiency Market Report provides a practical basis for understanding energy efficiency market activities, a review of the methodological and practical challenges associated with measuring the market and its components, and statistical analysis of energy efficiency and its impact on energy demand. It also highlights a specific technology sector in which there is significant energy efficiency market activity, in this instance appliances and ICT. The report presents a selection of country case studies that illustrate current energy efficiency markets in specific sectors, and how they may evolve in the medium term.

The energy efficiency market is diffuse, varied and involves all energy-consuming sectors of the economy. A comprehensive overview of market activity is complicated by the challenges associated with quantifying the components of the market and the paucity of comparable reported data. This report underscores how vital high-quality and timely energy efficiency data is to understanding this market.

This first Energy Efficiency Market Report sits alongside IEA market reports for oil, gas, coal and renewable energy, highlighting its place as a major energy resource. It summarises in one place the trends and prospects for investment and energy cost savings in the medium term, up to 2020.

This Report joins the IEA market reports for oil, gas, coal and renewable energy, highlighting energy efficiency’s place as a major energy resource. It summarises the trends and prospects for investment and energy cost savings in the medium term, up to 2020.

Contents:

Foreword 3

Acknowledgements 5

Executive Summary 16

Introduction 24
- The purpose of the market report 24
- Approach taken 24
- How to read this report 25
- References 26

PART 1. THE MARKET FOR ENERGY EFFICIENCY 27

- 1. Understanding the Market for Energy Efficiency 28
- Defining the energy efficiency market 28
- The dynamics of supply and demand 28
- Key sectors in the energy efficiency market 36
- Multiple benefits of energy efficiency 38
- References 39

2. Measuring the Market for Energy Efficiency 42
- Quantifying the global energy efficiency market 42
- Challenges of defining the energy efficiency market 42
- A summary literature review on estimates: a variety of approaches 44
- Deriving an investment estimate for the global energy efficiency market 49
- Conclusions 51
- References 51

3. What the Numbers Say: Energy Efficiency and Changing Energy Use 53
- Quantifying energy use and the impacts of the energy efficiency market 53
- Energy efficiency: the first fuel? 55
- Energy intensity, productivity and per-capita consumption 57
- IEA indicators: moving beyond energy intensity for a subset of countries 60
- Sectoral indicators 62
- Conclusions 74
- References 75

4. Technology Focus: Appliances, Lighting and ICT 76
- Trends in global appliance, lighting and ICT markets 76
- Market transformation towards greater efficiency in appliances and lighting 80
- The opportunities and challenges of ICT markets 84
- Conclusions 88
- References 89

PART 2. ENERGY EFFICIENCY MARKET COMPENDIUM: COUNTRY CASE STUDIES 93

5. Introduction 94

6. Australia 95
- Energy profile and context 95
- Energy efficiency market activity 99
- Conclusions 102
- References 103

7. Canada 104
- Energy profile and context 104
- Energy efficiency market activity 107
- Conclusions 112
- References 112

8. China 114
- Energy profile and context 114
- Energy efficiency market activity 116
- Conclusions 122
- References 122

9. European Union 124
- Energy profile and context 124
- Energy efficiency market activity 127
- Conclusions 134
- References 135

10. France 137
- Energy profile and context 137
- Energy efficiency market activity 141
- Conclusions 146
- References 146

11. Germany 149
- Energy profile and context 149
- Energy efficiency market activity 153
- Conclusions 159
- References 159

12. India 162
- Energy profile and context 162
- Energy efficiency market activity 164
- Conclusions 168
- References 168

13. Japan 169
- Energy profile and context 169
- Energy efficiency market activity 172
- Conclusions 176
- References 176

14. Korea 178
- Energy profile and context 178
- Energy efficiency market activity 181
- References 187

15. Mexico 188
- Energy profile and context 188
- Energy efficiency market activity 190
- Conclusions 194
- References 195

16. New Zealand 196
- Energy profile and context 196
- Energy efficiency market activity 199
- Conclusions 204
- References 205

17. South Africa 206
- Energy profile and context 206
- Energy efficiency market activity 208
- Conclusions 212
- References 212

18. Southeast Asian Countries 214
- Energy profile and context 214
- Energy efficiency market activity 218
- Conclusions 227
- References 228

19. United Kingdom 230
- Energy profile and context 230
- Energy efficiency market activity 234
- Conclusions 240
- References 241

20. United States 243
- Summary outlook 243
- Energy profile and context 244
- Energy efficiency market activity 246
- Conclusions 257
- References 258

PART 3. ANNEX AND GLOSSARY 261

Annex: Country-level Energy Use and Intensity Data 262

Glossary 267
- Definitions 267
- Scenarios 268
- Regions 268
- Acronyms, abbreviations and units of measure 270

Website: OECD iLibrary http://www.oecd-ilibrary.org/

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