Global Energy Efficiency Market Expanding

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We had a great summer, a bit quiet one I thought. Not many substantial articles or news, events on energy management or efficiency, same old on policies, so I have to admit the last two weeks got my head spinning.

Yesterday I came across a simple but brilliant blog of Jesse Jenkins, saying “…Energy efficiency advocates should also take note: don’t build your case for efficiency by arguing its value is solely in reducing energy use. That’s just not how efficiency (aka productivity) works, nor should it be.

I've reviewed nearly 100 peer-reviewed and academic articles on the topic, and the consensus is clear: while rebound effects don’t undermine the case for efficiency, taking rebound seriously does force us to rethink the role of energy efficiency in confronting climate change.

Yet when we think about the importance of rebound effects for climate strategies, the real story is in the developing world. More than 90 percent of energy demand growth over the next two decades will be fuelled by the world’s emerging economies, and that’s where demand for energy services is far, far from saturated.”

I have to agree. Looking through AVReporter Energy Management Software’s end-users and System Integrators, I have to admit most of the demand is coming from South America and China, Australia is growing strong mainly for environmental pressure.

As the global energy efficiency market continues to swell, with latest figures from the International Energy Agency (IEA showing it to have surpassed $310 billion a year.

The figure was published in the second edition of the Paris-based agency's Energy Efficiency Market Report, which also found that investments in efficiency are improving energy productivity.The IEA believes energy efficiency, through measures such as energy monitoring systems, is the key to driving down carbon (CO2) emissions in order to achieve the world's climate objectives- according to Business Green.

The report detailed energy consumption in 18 IEA countries that had managed to drive down usage by 5% in the ten-year period between 2001 and 2011.

It attributed the reduction, which equates to 1,732 million tonnes of oil equivalent – more than the combined 2012 energy demand of the US and Germany – primarily to investments in energy efficiency.

The magnitude of the energy savings is exemplified by the report showing that through investments over the past 40 years the 18 countries have avoided more energy consumption than the total amount consumed in the EU in 2011.

IEA executive director Maria van der Hoeven suggested that the figures come at the right time, as emerging economies are ramping up demand. She called energy efficiency the "invisible powerhouse" in IEA countries and beyond, but it is beginning to get the recognition it deserves. “Energy efficiency is moving from a niche interest to an established market segment with increasing interest from institutional lenders and investors,” said the IEA Executive Director. “

At the same time University of Cambridge climate researcher Terry Barker and his colleagues reanalysed the efficiency plan from the International Energy Agency and concluded that rebound effects would erode 52 percent of the energy demand reductions by 2030. By downplaying rebound effects — the IEA assumed rebounds were only about 10 percent — the influential agency overstated the contribution of efficiency to its climate plans by 88 percent.

So, many debates, new studies, researches and arguments are flying around. All in all the energy management industry is growing and our developer team here at KONsys HQ will religiously follow and inspect the global demands to continue providing an energy management software that suits global, local and policy based demands flexibly. 

Energy Efficiency Report



  • VEOLIA- Energy Management Solution for utilitiesVeolia is one of the market leader companies in Hungary in the energy, water and waste management industry. The group company employs approximately 2,500 people who provide professional services to various towns, institutions and industrial companies enabling them to efficient manage resources, while the water utility and district heating branches of the company supply drinking water to hundreds of thousands of families, and heat to tens of thousands of households. With its more than 20-year professional experience Veolia is a determining participant of the Hungarian energy market. The energy branch of the company group provides energy to various institutions of 50 local municipalities, 85 state-owned and public buildings, 30 health institutions and 31 industrial plants, while its district heating networks supply 67,000 residential and institutional customers nationwide. In the three power plants of the company operate high-efficiency natural gas blocks and blocks utilizing renewable energy (biomass).
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