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As many other countries, Germany misses to exploit most of its large potential for cost-effective energy efficiency improvements. An organisation collecting funds and allocating them to the most (cost-)effective programmes could be a solution.
Therefore, political parties and trade unions as well as environmental NGOs have called for the creation of such an Energy Efficiency Fund. A recent study by the Wuppertal Institute together with a number of partners, commissioned by the Hans Böckler Foundation, analysed the feasibility of such an institution.
It has been the objective of the project, completed in March 2005, to
identify the added value of an Energy Efficiency Fund,
develop concrete proposals for the institutional setting and the financing of an Energy Efficiency Fund in Germany,
prepare and assess the benefits and costs of a portfolio of innovative but realistic energy efficiency programmes and campaigns, which the Energy Efficiency Fund would implement,
identify the effects of the fundraising and the programmes on different industries, particularly on the suppliers of energy-efficient technologies and services, and on their growth and employment perspectives,
estimate the net employment effects of such an Energy Efficiency Fund and its activities.
This paper presents the results and assesses the usefulness of the project and the participatory elements for increasing the acceptance of such a policy instrument.
The European Horizon 2020-project COMBI ("Calculating and Operationalising the Multiple Benefits of Energy Efficiency in Europe") aims at estimating the energy and non-energy impacts that a realisation of the EU energy efficiency potential would have in the year 2030. The project goal is to cover the most important technical potentials identified for the EU27 by 2030 and to come up with consistent estimates for the most relevant impacts: air pollution (and its effects on human health, eco-systems/crops, buildings), social welfare (including disposable income, comfort, health and productivity), biotic and abiotic resources, the energy system and energy security and the macro economy (employment, economic growth and the public budget). This paper describes the overall project research design, envisaged methodologies, the most critical methodological challenges with such an ex-ante evaluation and with aggregating the multiple impacts. The project collects data for a set of 30 energy efficiency improvement actions grouped by energy services covering all sectors and EU countries. Based on this, multiple impacts will be quantified with separate methodological approaches, following methods used in the respective literature and developing them where necessary. The paper outlines the approaches taken by COMBI: socio-economic modelling for air pollution and social welfare, resource modelling for biotic/abiotic and economically unused resources, General Equilibrium modelling for long-run macroeconomic effects and other models for short-run effects, and the LEAP model for energy system modelling. Finally, impacts will be aggregated, where possible in monetary terms. Specific challenges of this step include double-counting issues, metrics, within and cross-country/regional variability of effects and context-specificity.
What role do transaction costs play in energy efficiency improvements and how can they be reduced?
(2019)
Ex-ante policy evaluation requires a detailed understanding of how the subjects addressed by the policy react to its implementation. In the context of energy efficiency, policy measures typically aim at influencing investment decisions towards more efficient options.
As has been discussed widely in the context of the "energy efficiency gap", investments in energy efficiency improvements are frequently not conducted even though they seem cost-effective from a simple cost-benefit perspective, where transaction costs have been identified as one important barrier.
While transaction costs have been discussed widely from a conceptional perspective, empirical studies quantifying transaction costs and measures to reduce them are rare. This paper presents approaches, results and insights from a recently completed research project funded by the German Federal Energy Efficiency Center (BfEE), addressing transaction costs in various energy efficiency measures and the role of energy efficiency services to overcome the barrier.
We analyse a set of 11 energy efficiency investments covering private households, public institutions and the industry sector. We gather data on direct investment costs and energy cost savings and provide a detailed analysis of the various barriers and transaction costs associated with the implementation. We then analyse the costs of existing energy efficiency services using data provided by the BfEE. We compare the different cost elements and analyze the potential of energy efficiency services to reduce transaction costs.
We find that the role of transaction costs differs substantially between households, public institutions and companies and that the impact of energy efficiency services on transaction costs needs to be evaluated using different methodological approaches. We conclude that while data availability on disaggregated transaction costs is a major challenge, energy services can reduce transaction costs considerably.
What makes a good policy? : Guidance for assessing and implementing energy efficiency policies
(2013)
Which factors are crucial to successfully design and implement a "good practice" policy to increase the energy efficiency of buildings and appliances? This is one of the main challenges for the new web platform bigee.net that provides guidance on good practice policies.
In this paper we examine the question what "good practice" is by presenting a multi-criteria assessment scheme to analyse different policies worldwide.
The assessment scheme contains a set of criteria addressing key factors leading to the success of a policy as well as its outcomes: a good policy addresses all market players and barriers, avoids lost opportunities and lock-in effects, has ambitious and regularly updated energy efficiency levels, and spill-over effects. Other criteria are high energy savings and the calculated cost-effectiveness.
The assessment scheme provides a standardised data collection approach, which paves the way for both qualitative and quantitative evaluation. Furthermore, it can help policy-makers to transfer a successful policy.
The development of the scheme is based on a literature review of worldwide implemented policies and measures that promote energy-efficiency of buildings and appliances. Criteria were operationalized, including a ranking between 0 and 10. The ranking is a decisive factor whether the policy qualifies as good practice. To demonstrate the practicability of this scheme, the paper analyses a good practice example according to the assessment scheme: Energy-Efficient Refurbishment and Energy Efficient Construction programmes of the German public bank KfW.
For some time, 3D printing has been a major buzzword of innovation in industrial production. It was considered a game changer concerning the way industrial goods are produced. There were early expectations that it might reduce the material, energy and transport intensity of value chains. However for quite a while, the main real world applications of additive manufacturing (AM) have been some rapid prototyping and the home-based production of toys made from plastics. On this limited basis, any hypotheses regarding likely impacts on industrial energy efficiency appeared to be premature. Notwithstanding the stark contrast between early hype and practical use, the diffusion of AM has evolved to an extent that at least for some applications allows for a preliminary assessment of its likely implications for energy efficiency.
Unlike many cross-cutting energy efficiency technologies, energy use of AM may vary substantially depending on industry considered and material used for processing. Moreover, AM may have much greater repercussions on other stages of value chains than conventional cross-cutting energy efficiency technologies. In case of AM with metals the following potential determinants of energy efficiency come to mind:
- A reduction of material required per unit of product and used during processing;
- Changes in the total number and spatial allocation of certain stages of the value chain; and
- End-use energy efficiency of final products.
At the same time, these various streams of impact on energy efficiency may be important drivers for the diffusion of AM with metals. This contribution takes stock of AM with metals concerning applications and processes used as well as early evidence on impacts on energy efficiency and combine this into a systematic overview. It builds on relevant literature and a case study on Wire Arc Additive Manufacturing performed within the REINVENT project.
Domestic sustainability innovations are considered to play a key role for pathways to sustainable consumption. The paper shows how open innovation processes can lead to such sustainable innovations, by means of an experimental and interactive infrastructure. It presents how – based on results of the LivingLab project conducted at the Wuppertal Institute within a European Consortium (Lead TU Delft) - currently an extended Sustainable LivingLab approach is developed and applied in two joint research projects at national and international level. To conceptualise this approach, we refer to recent proceedings in innovation and sustainability research, i.e. practice theory to analyse sustainable product design. Focusing on technical solutions and individual behaviour while assuming people's needs as fixed entities, disregards the dynamics of everyday practices in which technologies themselves create needs. Therefore, the consumer's position should be strengthened through userdriven innovation. LivingLabs are combined lab-/household systems, which put the user, i.e. the home occupant, and value chain related actors (producer, handicraft, etc.) on centre stage in the innovation process. We introduce its research agenda and the Three Phases Model of research. We hypothesise that at the end of this userintegrated innovation process developed products have a higher chance of successful diffusion. To illustrate this, we show how the LivingLab infrastructure is employed for the German InnovationCity Ruhr and how it can promote the development of user-centred sustainable consumption strategies.
Questions regarding the societal impact of research, how to reach impact and what is needed to stabilize the effects are rising from various sides. Societal impact is seen as part of a social contract that exists between science and society. This entails that research must address pressing social issues which in turn implies a number of core challenges such as gathering evidence or the creation of actionable knowledge. The transdisciplinary research approach "real-world laboratory" is discussed as possible way to address and to overcome some of the challenges. A "real-world laboratory" currently being established in the city of Wuppertal serves as case study, linking conceptual and empirical investigations.
Toothless tiger? : Is the EU action plan on energy efficiency sufficient to reach its target?
(2007)
Motivated by, inter alia, the increasing energy prices, the security of energy supply and climate change, the new EU "Action Plan for Energy Efficiency: Realising the Potential" (EEAP), sets out the policies and measures required to be implemented over the next six years to achieve the EU's goal of reducing annual primary energy consumption by about 20 % by 2020. By increasing energy efficiency, the security of energy supply and the reduction of carbon emissions are also improved.
The paper will analyse the 20 % target of the new EEAP for the energy demand side by comparison with different recent energy scenarios for the EU. It will therefore review the recommended policies and measures and examine, in which energy demand sectors energy efficiency may be increased and to which extend. The main focus is whether the recommended policies and actions will be sufficient and which additional measures may be useful, if additional measures are needed.
After a wave of privatizations in the end of the 1990s, the electrical power supply of many municipalities in Germany has been returned into public hands. Many municipalities discover chances and possibilities for local action, which arise with remunicipalisation. The local policy-makers realize that remunicipalisation offers the opportunity of implementing an independent energy policy at local level which is critical in creating a transformation to a sustainable energy system based on energy efficiency and renewable energies. The municipal ownership allows a strong governance towards more political influence in the local energy market. In addition, there is a clear opinion of the population: 81 % of citizens surveyed say they trust their local municipal utility, compared to only 26 % who say they trust corporations (VKU-Survey, 2010). In summary, there are many good reasons for local politicians to establish their own municipal utilities. The payback for municipalities is tangible when the local utility focuses on reliably providing affordable energy rather than on increasing its returns. The new municipal power utilities stimulate competition and contribute to the renewal / restructuring of the traditional energy market.
The founding of 72 municipal utilities since 2005 leads us to ask for the reasons. The study reviews the German trend towards municipal ownership of local utilities, assessing their performance based on 10 targets related to the energy transition, climate protection, and the local economic impact: 1. Achieving environmental objectives and organization of the local "Energiewende". 2. Higher local added value. 3. Harnessing tax regulations for improving municipal services. 4. Improving the income situation of the city. 5. Democratization of supply and stronger orientation towards the common good (public value). 6. Creating and protecting good jobs. 7. Acting in social responsibility in energy supply. 8. Expansion of eco-efficient energy services. 9. Harnessing customer relations and public image. 10. Materialising synergies with other sectors.
Based on expert opinions, the study finds out that the likelihood of these targets being reached is "high to very high". The aim of this article is to provide a compact and basic understanding of the possible reasons for the phenomenon of remunicipalisation.
The role of gender concerns in the planning of small-scale energy projects in developing countries
(2014)
Based on a comprehensive scenario analysis of the EU's GHG emissions by 2020, we show that the 20% energy savings target set in the Action Plan "Doing more with less" in 2006 is still the most significant and thus indispensable strategy element within an ambitious EU climate and energy strategy targeting at a 30% reduction of GHG emissions by 2020.
The scenario analysis provides a sector by sector projection of potential future energy use and GHG emissions, combined with a detailed policy analysis of the core policies on energy efficiency by the EU and its Member States taken from current research results by the authors and others.
Consequently the paper identifies and quantifies the current implementation deficit in the EU and shows that, despite of sufficient targets, implementation is still significantly lacking in almost all fields of energy efficiency. Some, e.g. transport sector and buildings, are still substantially far from receiving the necessary political impetus. The paper also demonstrates co-benefits of a strong energy efficiency strategy, e.g. the achievability of the targets of the RES directive, which crucially depends on a strong efficiency policy.
We conclude that the efforts of the energy efficiency policy of the EU and its Member States have to be significantly intensfied. As proposed by the EU in case that other developed and key developing countries take up comparable targets in order to fulfil its role in the climate and energy strategy. To achieve this, we offer an analysis of the current weaknesses of EU energy efficiency policy and derive recommendations on how the EU can still reach its targets for 2020.
Iran is one of the largest oil producers and natural gas owners globally. However, it has to struggle with domestic energy shortages, economic losses through energy subsidisation and inefficient energy infrastructures. Furthermore, GHG and other energy related emissions are rapidly increasing and posing a growing threat to local environment as well as global climate. With current trends prevailing, Iran may even become a net energy importer over the next decades. Resource allocation is therefore a crucial challenge for Iran: domestic consumption stands versus exports of energy.
The energy transformation sector clarifies Iran's dilemma: soaring electricity demand leads to blackouts, and power plant new builds are far from using most efficient technologies (e. g. CHP), therefore keeping energy intensive structures. But fossil fuels could be sold on international markets if spared by having more efficient energy infrastructures.
As shown by the high energy intensity of its economy, Iran has large potentials for energy saving and efficiency. In order to highlight and better identify this potential the paper contrasts a high efficiency scenario in all sectors of energy transformation and consumption with a possible "business as usual" development.
Using a bottom-up approach, the analysis provides a sector-by-sector perspective on energy saving potentials. These can be utilised on the demand side especially in the transport sector (fuels) and in households (electricity for appliances, natural gas for heating). Electricity generation bears efficiency potentials as well.
We conclude that Iran, but also the international community, would benefit on various levels from a more energy-efficient Iranian economy: Energy exports could increase, generating more foreign currency and reducing the pressures on international oil and gas prices; energy consumption would decrease, leading to lower needs for nuclear energy and for subsidies to Iranian people, as well as to a reduction of the high external costs entailed by fossil fuels combustion (smog in cities, environmental stress).
Improvements in energy efficiency have numerous impacts additional to energy and greenhouse gas savings. This paper presents key findings and policy recommendations of the COMBI project ("Calculating and Operationalising the Multiple Benefits of Energy Efficiency in Europe").
This project aimed at quantifying the energy and non-energy impacts that a realisation of the EU energy efficiency potential would have in 2030. It covered the most relevant technical energy efficiency improvement actions in buildings, transport and industry.
Quantified impacts include reduced air pollution (and its effects on human health, eco-systems), improved social welfare (health, productivity), saved biotic and abiotic resources, effects on the energy system and energy security, and the economy (employment, GDP, public budgets and energy/EU-ETS prices). The paper shows that a more ambitious energy efficiency policy in Europe would lead to substantial impacts: overall, in 2030 alone, monetized multiple impacts (MI) would amount to 61 bn Euros per year in 2030, i.e. corresponding to approx. 50% of energy cost savings (131 bn Euros).
Consequently, the conservative CBA approach of COMBI yields that including MI quantifications to energy efficiency impact assessments would increase the benefit side by at least 50-70%. As this analysis excludes numerous impacts that could either not be quantified or monetized or where any double-counting potential exists, actual benefits may be much larger.
Based on these findings, the paper formulates several recommendations for EU policy making:
(1) the inclusion of MI into the assessment of policy instruments and scenarios,
(2) the need of reliable MI quantifications for policy design and target setting,
(3) the use of MI for encouraging inter-departmental and cross-sectoral cooperation in policy making to pursue common goals, and
(4) the importance of MI evaluations for their communication and promotion to decision-makers, stakeholders, investors and the general public.
International consensus is growing that a transition towards a low carbon society (LCS) is needed over the next 40 years. The G8, the Major Economies Forum on Energy and Climate, as well as the Ad Hoc Working Group on Long-term Cooperative Action under the United Nations Framework Convention on Climate Change, have concluded that states should prepare their own Low-emission Plans or Low-emission Development Plans and such plans are in development in an increasing number of countries.
An analysis of recent long-term low emission scenarios for Germany shows that all scenarios rely heavily on a massive scale up of energy efficiency improvements based on past trends. However, in spite of the high potential that scenario developers assign to this strategy, huge uncertainty still exists in respect of where the efficiency potentials really lie, how and if they can be achieved and how much their successful implementation depends on more fundamental changes towards a more sustainable society (e.g. behavioural changes).
In order to come to a better understanding of this issue we specifically examine the potential for energy efficiency in relation to particular demand sectors. Our comparative analysis shows that despite general agreement about the high importance of energy efficiency (EE), the perception on where and how to achieve it differ between the analysed scenarios. It also shows that the close nexus between energy efficiency and non-technical behavioural aspects is still little understood. This leads us to the conclusion that in order to support energy policy decisions more research should be done on energy efficiency potential. A better understanding of its potential would help energy efficiency to fulfil its role in the transition towards a LCS.
The potential of natural gas as a bridging technology in low-emission road transportation in Germany
(2011)
The South African government started the development of a basic energy efficiency policy framework in 2005, including a voluntary label for refrigerators. This initial label was the intended precursor to a mandatory standards and labelling (S&L) programme, but the impacts achieved were only very limited. Based on this first experience, the South African Bureau of Standards (SABS) formed in 2008 a working group for the development of the new and more specific South African National Standard SANS 941. This standard identifies energy efficiency requirements, labelling and measurement methods as well as the maximum allowable standby power for a set of appliances as reliable basis for introducing a mandatory regulation. Nevertheless, due to many existing barriers, such as lack of funding and low priority assigned to the initiative, a very long period passed by between the S&L planning and final policy implementation. Finally, in November 2014, the South African government published mandatory performance standards coming into force in 2015/2016 for a first set of appliances consisting of refrigerators, washing machines, dryers, dishwashers, electric water heaters, ovens, A/C and heat pumps. To analyse the effectiveness of the new S&L programme and the potential influence of delays in the implementing process, the authors performed an immediate first-hand evaluation of the new policy.
As analytical reference base for available energy efficiency potentials, results from bottom-up scenario calculations will be presented exemplarily as case study for cold appliances covered by the S&L programme. A retrospective market study will show market trends before policy implementation and compare results with the new mandatory requirements. For the further policy analysis, a programme theory approach will be applied, in order to better understand why, how and under what conditions the policy works. Relationships with other energy efficiency policies and measures as well as positive or negative effects will be described. Furthermore, cause-impact relationships will be analysed to explain the functioning of the policy. Finally, success and failure factors will illustrate what needs to be done to achieve the desired energy efficiency targets. Henceforth, even though this study does not assess the direct transferability of the South African S&L programme to other regions, its findings could be relevant and useful for countries planning the implementation of similar policies.
In addition to the expansion of renewable energies, the efficient use of energy is crucial in order to ensure energy transition successful. The Federal Government of Germany has therefore set itself clear objectives with the National Energy Efficiency Action Plan (NAPE), which aims to reduce the primary energy consumption in Germany - compared to 2008 levels - by 20 per cent until 2020, and by 50 per cent until 2050. In addition, greenhouse gas emissions should fall by 40 per cent compared to 1990.
To reach this goal, the German Federal Ministry of Economic Affairs and Energy (BMWi) inter alia launched the "National Top Runner Initiative (NTRI)" in January 2016. It is an important component and concerns private homes, as well as industry, retail and services.
The NTRI is intended to bring energy efficient and high-quality appliances (so called Top Runners) onto the market more quickly, thus accelerate market replacement. For this purpose, motivation, knowledge and competence in product-related energy efficiency is to be strengthened and expanded along the whole value chain - from the appliance manufacturer to the retailer and the consumer. Manufacturers are pushed to develop more efficient products and consumers get valuable information about Top-Runner products and how they can benefit. In this context, retailers are especially relevant as they act as "gatekeeper" between manufacturers and consumers. They play a key role in advancing an energy efficient production and consumption. They do not only select the products but they also have a direct contact to consumers and influence the purchase decision. In this paper, special emphasis will be put on the role of retailers and the efforts of the National Top Runner Initiative will be illustrated. Barriers and incentives to motivate this target group will be elaborated.