3 results
1 - The economics of energy (and electricity) demand
- from Part I - The economics
- Edited by Tooraj Jamasb, Heriot-Watt University, Edinburgh, Michael G. Pollitt, University of Cambridge
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- Book:
- The Future of Electricity Demand
- Published online:
- 05 March 2014
- Print publication:
- 15 September 2011, pp 17-47
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Summary
Introduction
In the UK, electricity demand grew by 2.4 per cent p.a. between 1970 and 2005, to reach a record high of 357 TWh, but then declined to 330 TWh in 2009 following the sharp recession which began in 2008. However, longer-run trends suggest increasing electricity demand globally in the future, and even in the UK. Figure 1.1 shows the trends in electricity consumption in the UK since 1960 for various sectors: residential, public administration, transport, agricultural and commercial sectors, and industrial. In the residential sector, consumption increased by 59 per cent between 1970 and 2009 (DUKES, 2010). The largest household electricity consumption increase is due to consumer electronics, as will be shown later in this chapter. Commercial and public services have used sharply more electricity since 1970, with a rise of 140 per cent to 2009 (DUKES, 2010). Consumption by industry, by contrast, has been decreasing recently, with a steady fall since 2005, partly due to deindustrialization, the recent recession and increased energy efficiency (DECC, 2010a). In the longer run, however, electric vehicles and the electrification of the heat sector (should natural gas decline as the heating fuel of choice) will provide significant new sources of growth in electricity demand.
Figure 1.2 shows the scale of the potential impact of electrification of transport and heat on household electricity demand. Household transport demand for petroleum is around four times the energy value of the electricity used for lighting and appliances. Electrification of water and space heating, currently largely (though not entirely) supplied via natural gas, would produce a significant rise in demand for electricity.
Introduction and overview of the chapters
- Edited by Tooraj Jamasb, Heriot-Watt University, Edinburgh, Michael G. Pollitt, University of Cambridge
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- Book:
- The Future of Electricity Demand
- Published online:
- 05 March 2014
- Print publication:
- 15 September 2011, pp 1-14
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Summary
Opening remarks
This book aiMS to explore aspects of the future demand for electricity in the light of the challenges posed by climate change. In the UK we have a formal target for the reduction of carbon dioxide equivalent emissions of 80 per cent by 2050 (on 1990 levels). Official publications regularly suggest that reducing overall energy demand is an important part of meeting that target. Indeed, in a recent report of the UK Committee on Climate Change (CCC, 2009, p. 22), it was suggested that residential energy efficiency measures could reduce carbon dioxide emissions by 50 million tonnes per annum (or around 10 per cent of the UK's current total emissions) by 2022. The UK is not alone: many other countries have targets and aspirations for the reduction of energy consumption. Meanwhile, the future of energy demand will increasingly be synonymous with the future of electricity demand if the heat and transport sectors are electrified over the coming decades.
Decarbonization of the energy sector is not just about reducing energy demand. Emissions from direct combustion of heat and direct combustion of liquid fuel in vehicles are roughly equal to emissions from power stations. Reducing emissions from electricity production is technically feasible via a combination of renewables, nuclear power and carbon-capture-and-storage equipment. This implies that switching heating and transportation demand for energy from combustion of fossil fuels to heat from electricity (or combined heat and power) and to electric vehicles is important in reducing emissions.
14 - Demand-side management strategies and the residential sector: lessons from the international experience
- from Part IV - Policy and regulation
- Edited by Tooraj Jamasb, Heriot-Watt University, Edinburgh, Michael G. Pollitt, University of Cambridge
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- Book:
- The Future of Electricity Demand
- Published online:
- 05 March 2014
- Print publication:
- 15 September 2011, pp 337-378
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Summary
Introduction
Policies and measures targeting energy demand took off over the last three decades in response to the oil shocks of the 1970s. Since then, concerns about the sensitivity of economies to energy prices, oil dependency and more recently climate change, contributed to the development of energy efficiency (EE) policies. Demand-related policies that aim to influence quantities or patterns of energy use have traditionally been referred to as demand-side management (DSM) programmes. They include both energy efficiency policies and demand response (DR). Energy efficiency improvements can bring many benefits in terms of reduced energy infrastructure investments, decrease in electricity prices, increased energy security, improved environmental quality and other ancillary benefits. Scientists estimate that by 2050, we will need to have reduced our greenhouse gas emissions (GHG) by 50 per cent to avoid the worst-case scenarios of climate change. In such a context, the building sector appears as the ‘cornerstone of every national climate change strategy’, as it is responsible for up to 30 per cent of global annual GHG emissions, and 40 per cent of all energy consumption (UNEP, 2009). Furthermore, there is widespread evidence of the cost-effectiveness of energy efficiency measures as compared to renewable programmes (IEA, 2006). In parallel, load growth; increased intermittency due to renewable generation; and, in the UK in particular, the renewal and reconfiguration of the electricity network pose challenges to the electricity sector never seen before. These challenges increasingly lead to the recognition of the importance of active consumer participation in load shifting, and hence interest in influencing quantities or patterns of energy demand.
There is now substantial experience particularly among OECD countries in using policy instruments to improve the overall efficiency with which energy is used. Several recent studies have assessed these experiences. For example, Geller et al. (2006) review energy intensity trends in the OECD from 1973 to 2003. They focus on the specific policies adopted by Japan, the US and a selection of European countries to improve energy use per unit of GDP across sectors. The World Energy Council (WEC) has conducted a review of energy efficiency policies using a survey of seventy countries, including examples of the most effective types of policy measures (WEC, 2008). Similarly, the United National Environment Programme Sustainable Buildings & Climate Initiative (UNEP-SBCI) published several reports assessing the implemented policies in various countries. A number of International Energy Agency (IEA) publications have also looked at energy use trends (IEA, 2007; IEA, 2008); reviewed the implementation of energy efficiencies policies in general (IEA, 2009b); and in the residential sector in particular (IEA, 2008).