Power Markets in Europe Influenced by Energy Efficiency
Source: Reneweconomy, 24 November 2016
Energy efficiency has long been held by its enthusiasts as the most obvious lever to reduce emissions, and save costs. A megawatt hour of electricity not used is the cheapest form of abatement, they say, and have even coined a term – the “negawatt” – to market the idea.
Citigroup says the combination of EU-wide energy efficiency targets, its renewable energy policies and the emergence of ultra efficient appliances and zero carbon homes will have a big impact on power markets.
They point out energy efficiency has already reduced demand by 109TWh (terawatt hours) or 3.8 per cent from 2010-15.
“In our view this is only the beginning,” the analysts say, suggesting that LED lighting, A+++ appliances (22% more efficient than currently installed one), housing efficiency, and other technologies could reap an additional 257TWh of energy savings by 2020, cutting total European power demand by another 9.2 per cent.
Just for context, that is more than the total annual demand in Australia. Offset against rising population and economic growth, this will still deliver a 1.1 per cent per annum reduction in power demand between 2015 and 2020.
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