The Multiple Benefits of Energy Efficiency: An overview

Nina Campbell, Databuild Research & Solutions

Unlocking the Irish Energy Efficiency OpportunityDublin, Ireland10 June 2015

Overview

• Rationale for a multiple benefits approach

• The benefits

• Implications for policy

Overview

• Rationale for a multiple benefits approach

• The benefits

• Implications for policy

2/3 of the economic potential to improve energy efficiency remains untapped in the period to 2035

Huge opportunities going unrealised

IEA (2014), Capturing the Multiple Benefits of Energy Efficiency, OECD/IEA, Paris.

EE has multiple benefits

IEA (2014), Capturing the Multiple Benefits of Energy Efficiency, OECD/IEA, Paris.

Cumulative investments in energy efficiency of $12 trillion are more than offsetby fuel savings & trigger economic growth of a cumulative $18 trillion

GDP in Efficient World Scenario versus New Policies Scenario, 2035

1%

2%

3%

4%

Japan & Korea OECD Europe United States China India

EE drives economic prosperity

IEA (2012), World Energy Outlook, OECD/IEA, Paris.

Overview

• Rationale for a multiple benefits approach

• The benefits

• Implications for policy

Overarching macroeconomic impacts

IEA (2014), Capturing the Multiple Benefits of Energy Efficiency, OECD/IEA, Paris.

Energy Efficiency → Warmth as Medicine

Carefully executed energy efficiency can deliver USD 99 billonin annual savings for Europe’s public health sector by 2020

Boosting industrial productivity

Competitiveness Eg. Reduced production costs; ability to enter new markets; corporate risk reduction

Production Eg. Capacity utilisation; improved product quality and value

Operations and maintenance

Eg. Reduced downtime; reduced need for maintenance

Working environment Eg. Improved site comfort (thermal, lighting, acoustic); worker health and safety

Environment Eg. Reduced air pollution; solid waste; wastewater; input materials

Optimizing energy delivery

Direct benefits for utilities: in a resource constrained operating context

Indirect benefits for utilities: increased affordability reduces customer default and associated costs

IEA (2014), Capturing the Multiple Benefits of Energy Efficiency, OECD/IEA, Paris.

Overview

• Rationale for a multiple benefits approach

• The benefits

• Implications for policy

A multiple benefits approach

A multiple benefits approach in the policy process:

Planning: Consider which benefits are relevant in the particular economic and social context

Monitoring and Evaluation: Pay more attention to impact assessment; broader measurement

Decision-making and policy development: Take more holistic approach to decision-making

A multiple benefits approach

A multiple benefits approach to evaluation:

Take an innovative approach Ask a broad-based question: ‘what changed?’ Engage a range of stakeholders; community level experts

Seek to attribute value to ALL impacts Adapt existing tools to capture hard-to-measure impacts

Integrate qualitative methods in early stages

Build consensus on methods for data collection and assessment

Thank you

For more info contact: Nina.Campbell@data-build.co.uk

For info on IEA’s continuing work: Samuel.Thomas@iea.org