Energy Efficiency Market Report 2015 highlights cuts in greenhouse gases from investments in energy efficiency: Investments since 1990 prevented more than 870 million tonnes of carbon emissions in 2014 while slicing IEA countries’ fuel costs by USD 550 billion

1. © OECD/IEA 2015© OECD/IEA 2015
Energy Efficiency Today:
IEA’s 2015 Market Report
Kamel Ben Naceur,
Director, Sustainable Energy Policy and Technology
Webinar, Paris, October 8, 2015
Samuel Thomas,
Senior Programme Manager, Energy Efficiency Unit

2. © OECD/IEA 2015
Energy Efficiency Market Report 2015
Available to download for free at:
http://www.iea.org/bookshop/709-Energy_Efficiency_Market_Report_2015
Focus of the 2015 edition:
 Returns to energy efficiency
investments
 Buildings efficiency market
 Relationship between energy
efficiency and electricity markets

3. © OECD/IEA 2015
 Energy intensity in OECD countries declined by 2.3% in 2014
Within range of the 2.6% per annum SE4ALL target
Energy intensity in OECD countries
improved in 2014
-4.0%
-3.5%
-3.0%
-2.5%
-2.0%
-1.5%
-1.0%
-0.5%
0.0%
2011 2012 2013 2014
Annualchangeinenergy
intensity
OE
CD
Worl
d
Percentage change in energy consumption (TPES) per unit of GDP (2005 USD PPP)
SE4ALL target

4. © OECD/IEA 2015
 Total final consumption has declined over the last decade
Decomposition of Total Final Consumption in IEA countries1, 1990-2014
Energy efficiency is flattening energy
consumption
Energy efficiency is responsible for two-thirds of the downwards
pressure on demand
1 Decomposition for Australia, Denmark, Finland, France, Germany, Italy, Japan, the Netherlands, Sweden, the United Kingdom and the United States.
70%
80%
90%
100%
110%
120%
130%
140%
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Activity
effect
TFC
Structur
e effect
Efficien
cy
effect

5. © OECD/IEA 2015
0
4
8
12
16
20
24
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
EJ
Avoided
consump
tion
 Avoided consumption generated by energy efficiency increased
10% in 2014
10%
Avoided TFC in IEA countries from energy efficiency investments made since 1990
Avoided consumption topped 22 EJ (520
Mtoe) in 2014
IEA countries avoided more consumption in 2014 than the TFC
of Japan and Korea combined

6. © OECD/IEA 2015
 IEA countries saved USD 550 billion in 2014 as a result of energy
efficiency investments since 1990
0
100
200
300
400
500
600
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
USDbillion(2014)
Cumulative
savings
= USD 5.7 trillion
Avoided expenditure in IEA countries from energy efficiency investments made since 1990
IEA consumers are saving hundreds
of billions of dollars each year
Annual savings are greater than the EU’s fuel import bill

7. © OECD/IEA 2015
 In 2014, avoided total primary energy supply generated by
energy efficiency was 32 EJ (765 Mtoe)
0
5
10
15
20
25
30
35
Avoided TFC Avoided TPES (electricity) Avoided TPES
EJ
Electricity
Nuclear
Renewable
Natural gas
Coal
Oil
Heat
Avoided TFC and TPES in 2014 in IEA countries from efficiency investments made since 1990
From avoided end-use consumption
to primary energy savings
End-use efficiency leads to substantial primary energy savings

8. © OECD/IEA 2015
 In 2014, IEA countries avoided primary energy imports totalling 190 Mtoe,
saving USD 80 billion in energy import bills and improving trade balances
0
5
10
15
20
25
30
35
0
10
20
30
40
50
60
Germany Japan UK France US
USDbillion(2014)
Mtoe
Natural
Gas
Oil
Coal
Avoided imports in 2014, as a result of energy efficiency investments in IEA countries since 1990
Efficiency’s domestic production
substitutes for fuel imports
Domestically produced, efficiency supports energy security

9. © OECD/IEA 2015
 Energy efficiency investments since 1990 have helped to reduce
IEA countries’ emissions to below 1996 levels
 Without energy efficiency investments, estimated emissions by
IEA countries would have been 870 Mt CO2 higher in 2014
Energy efficiency has helped to make the 2 degrees target
more achievable by lowering emissions to date
10.0
10.5
11.0
11.5
12.0
12.5
13.0
13.5
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
GtCO2
Emissio
ns
savings
Cumulative savings
= 10.2 GtCO2
A clean energy source,
efficiency reduces emissions
IEA emissions from fossil fuel combustion and emissions savings from energy efficiency investments since 1990

10. © OECD/IEA 2015
 Strong policy drivers to insulate EE investments:
• The EU Energy Efficiency Directive, the US Clean Power Plan
• INDCs submitted to the UNFCCC should all drive investment
• Consumption subsidies have been cut in various jurisdictions, dampening
drop in consumer prices
 Uneven short-term impacts on demand
Maintaining momentum
in a low oil price environment
0.5
0.75
1
1.25
1.5
1.75
2008 2010 2012 2014 2016 2018 2020
2008=1
Measured fleet
fuel efficiency
Gasoline price
CAFE standard
Indices of new US LDV fuel economy performance, CAFE standard and unleaded gasoline prices
Continued low oil prices could ultimately weaken support

11. © OECD/IEA 2015
Energy efficiency in buildings:
Nearly a USD 100 billion market
 Energy Efficiency Investment in
Buildings estimated at USD 90
billion with 2/3 in the US, China
and Germany
 In the US, and elsewhere,
building efficiency investments
are growing faster than total
buildings investments
 Current trends point to USD 120 billion by 2020
 But investment projections fall far short of the estimated
USD 215 billion per annum needed to achieve the 2-Degree
Scenario (2DS)
0
20
40
60
80
100
2014
USDbillions
US China
Buildings efficiency investments, 2014

12. © OECD/IEA 2015
Energy efficiency: Flattening electricity
consumption in IEA countries
 Electricity consumption in IEA countries has declined by 2% since 2010
 Energy efficiency has enabled businesses and households to meet their
energy service demands with 2 200 fewer TWh of generation
 Low growth is pushing various energy utilities to shift from traditional
generation to sale of energy efficiency services
 Energy efficiency is facilitating the achievement of renewables targets by
decreasing the amount of additional GWh required
Electricity consumption in IEA countries and energy efficiency savings (from investments since 1990)
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
CAGR
Electricity consumption growth in IEA
0
500
1 000
1 500
2 000
2 500
TWh
Electricity savings from efficiency

13. © OECD/IEA 2015
Market profiles highlight the diversity
of energy efficiency markets
Theme Region Findings
Energy exporters Russia Rising exports increasing income and domestic
energy consumption
Energy exporters increasingly look
to efficiency to boost export volumes
Saudi Arabia
Sub-national government Tokyo Cities and sub-national governments are
major enablers of energy efficiency markets
Eager to capitalise on multiple benefits of energy
efficiency
Seoul
Paris
Massachusetts
Latin America Mexico Energy efficiency is an important supporter
of development objectivesBrazil
IEA member United Kingdom Using efficiency to adjust to net-energy importer
status

14. © OECD/IEA 2015
In Saudi Arabia, energy efficiency
is increasing export revenues
 Domestic energy consumption has nearly doubled since 2000,
reducing share of energy production going to exports:
 Saudi Arabia has implemented efficiency standards on key sources
of domestic energy demand including vehicles and air conditioners
0%
5%
10%
15%
20%
25%
30%
35%
2000 2013
Domestic
energy
consumptio
n as share
of
production
Air conditioner standards alone are targeted to improve efficiency by 35%,
saving 47 million barrels of oil and increasing export revenues by USD 2.4 billion

15. © OECD/IEA 2015
In Seoul, LEDs are substituting
for nuclear power
 Seoul has adopted the “One-Less
Nuclear Plant” plan to cut energy
consumption by the equivalent of
one nuclear plant (2 Mtoe)
 Plan has retrofitted 2 267 buildings –
market enabled by up to USD 2 million
in low-interest financing per project
 Seoul lighting to go 100% LED, replacing
2.2 million security and street lights
https://upload.wikimedia.org/wikipedia/commons/
http://www.pennenergy.com/articles/pe/2013/10/

16. © OECD/IEA 2015
Thank you
Available to download for free at:
http://www.iea.org/bookshop/709-Energy_Efficiency_Market_Report_2015