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Appliance and Equipment Efficiency:
Policy Driven Innovation
18 September 2013
Sarah CloughAustralian Department of Resources, Energy and Tourism
Gabrielle DreyfusUS Department of Energy
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End-use Energy Efficiency is cost effective
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We need to do more with cost effective options
• IEA analysis shows that a ramping-up of energy intensity to 2.6 times the rate of the last 25 years will half energy demand and boost economic output by $18 trillion by 2035.
• “If action is not taken before 2017, all the allowable CO2 emissions would be locked-in by energy infrastructure existing at that time. Rapid deployment of energy efficient technologies would postpone this lock-in to 2022, buying time to secure a much-needed global agreement to cut greenhouse-gas emissions.”
• In the 2013 State of the Union Address, President Obama issued the goal of cutting the energy wasted by US homes and businesses by 50% over the next 20 years.
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But we need to coordinate more or risk repeating the “errors of history”
ANZ 2013
EU 2014
% EU 2016
%
A 148 133 10% 94 23%
B 175 158 10% 112 28%
C 209 188 10% 134 31%
D 234 211 10% 150 36%
EU & AU desktop computer total energy consumption comparison
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Expanded International Coordination of Product Testing and Performance Standards
• More sharing of product, technology and market data• Increased harmonization/comparability of test methods
and metrics• Developing multiple efficiency/performance levels for use
in labeling, incentives and MEPS• Improved government engagement with international
standards organizations …..all of which are being pursued by SEAD, 4E, and IEA
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BUENAS (LBNL, 2012)
New Technologies Key to Long Term Gains
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Government support of technology can help…
Several governments fund R&D on solid state lighting, advanced AC/heat pumps, and certain other product technologies
….but manufacturers are key to product technology development and market entry
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Motivating manufacturers to support continuous technology development and deployment is critical
Government policies can substantially reduce the risks associated with private investment in technology development by:• Easing market entry• Helping build market share of new products• Providing clearer signals regarding future
regulatory policy
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Some governments are already trying to stimulate new product technologies:
• Awards• Performance criteria• Procurement
Challenge
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Analysis Shows that Standards help Markets Improve Technology Performance and Lower Costs
Van Buskirk et al., submitted
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Using Efficiency Levels and Longer Term Performance Targets to Stimulate New Technology
• Internationally coordinated efficiency levels and performance targets could:– Help markets anticipate future government policy– Ease regular updates in government labeling and
standards requirements– Recognize cost and other differences in national
circumstances– Simplify product certification and enforcement efforts
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Car fuel efficiency targets (miles per gallon) by vehicle footprint for model years 2017-2025 under the U.S. Corporate Average Fuel Economy (CAFE) standard.
•Long term performance targets are driving innovation in the transportation sector.
•CAFE standard includes mid-term review to adjust targets as needed for 2022-2025 model years.
Mor
e fu
el e
ffici
ent
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Next Steps toward developing Internationally Coordinated Product-Specific Efficiency Levels and
Longer Term Performance Targets
• Design of coordinated efficiency level development and review process
• Identification of priority products• Formation of government working groups (new or
existing)
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BACK-UP SLIDES
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But we need to coordinate more
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Government-led efficiency targets reduced television standby power consumption globally
www.iea-4e.org/files/otherfiles/0000/0214/4E_SP2_Policy_Brief-English.pdf
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EE is moving target
• Recent Achievements – Future savings achieved by recently implemented or scheduled standards
• Remaining Economic Potential – based largely on products in market
• Technical Potential – reflects known technology, not usually in market now.
• Theoretical Potential (not shown)