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The Case for Energy Efficiency
Steven Fawkes
Chairman
Day One Energy Solutions
+44 77 02231 9915
s.fawkes@dayoneenergy.com
www.onlyelevenpercent.com
@DrSteveFawkes
How (in)efficient are we?
475
55
Source: University of Cambridge, global figures , in EJSource: University of Cambridge
Units: Exajoules
Only 11% efficient
onlyelevenpercent.com
3
LCOE
€30 - 75/MWh
Source: Fraunhofer Institute for Solar Energy Systems.
May 2012
May 13
LCOE
€60 - 75/MWh
Source: Fraunhofer Institute for Solar Energy Systems.
May 2012
LCOE
€110 - 140/MWh
Source: Fraunhofer Institute for Solar Energy Systems.
May 2012
LCOE
€125 - 250/MWh
Source: Fraunhofer Institute for Solar Energy Systems.
May 2012
May 13
LCOE
€125 - 175/MWh
Source: Fraunhofer Institute for Solar Energy Systems.
May 2012
LCOE
€250 - 350/MWh
Source: Carbon Trust 2012
LCOE
€20 - 45/MWh
Source: American Council for an Energy Efficient Economy
2009
LCOE Summary (€/MWh)
€30 - 75
€60 - 75
€110 - 140
€125 - 250
€125 - 175
€250 - 350
€20 - 45
Fossil / nuclear
Onshore wind
Large PV
Small PV
Offshore wind
Tidal stream
Energy efficiency
13
38% energy saving
3.1 year payback on
incremental capital
NO SUBSIDIES!
Source: Empire State Building 2012
Additional grid costs of low carbon
generation
Penetration 10% 30%
Additional System costs
($/MWh)
Nuclear 3.1 2.8
Coal 1.3 1.3
Gas 0.6 0.6
Onshore wind 20.5 43.9
Offshore wind 36.0 45.4
Solar PV 57.9 83.0
Source: OECD 2012
Additional benefits from efficiency
Benefit from commercial
lighting retrofit (example)
$
Energy savings 1,900
Capacity savings 600
Line losses avoided 200
T & D investment 600
Environmental benefit 200
Total Benefit 3,500
NB assumes 12 hours a day lighting
Source: ConEdison 2012
Energy efficiency: 21 jobs per $1m spend
Energy generation: 10 jobs per $1m spend
Economy as a whole: 17 jobs per $1m
Source: ACEEE 2011
Decarbonisation through renewables
is not plausible
Oil RenewablesCoal Gas
Oil
Nuclear Other Efficiency
In summary:
Energy efficiency:
- Delivers much lower cost per MWh energy services
- Does not require any subsidies
- Has additional system benefits whereas renewables have
additional system costs
- Generates more jobs per €1m of activity (21) than the average
of the economy (17) and the energy industry (10)
- Decarbonisation through renewables is not plausible
- Over the last 30 years efficiency has delivered more energy
services than any other type of energy - & that is without us
really trying!
- Think about what we can do if we really try!
© Steven Fawkes 2013

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Steven Fawkes IERC 9th may 2013

  • 1. The Case for Energy Efficiency Steven Fawkes Chairman Day One Energy Solutions +44 77 02231 9915 s.fawkes@dayoneenergy.com www.onlyelevenpercent.com @DrSteveFawkes
  • 2. How (in)efficient are we? 475 55 Source: University of Cambridge, global figures , in EJSource: University of Cambridge Units: Exajoules Only 11% efficient onlyelevenpercent.com
  • 3. 3
  • 4. LCOE €30 - 75/MWh Source: Fraunhofer Institute for Solar Energy Systems. May 2012
  • 5. May 13 LCOE €60 - 75/MWh Source: Fraunhofer Institute for Solar Energy Systems. May 2012
  • 6. LCOE €110 - 140/MWh Source: Fraunhofer Institute for Solar Energy Systems. May 2012
  • 7. LCOE €125 - 250/MWh Source: Fraunhofer Institute for Solar Energy Systems. May 2012
  • 8. May 13 LCOE €125 - 175/MWh Source: Fraunhofer Institute for Solar Energy Systems. May 2012
  • 9.
  • 10. LCOE €250 - 350/MWh Source: Carbon Trust 2012
  • 11. LCOE €20 - 45/MWh Source: American Council for an Energy Efficient Economy 2009
  • 12. LCOE Summary (€/MWh) €30 - 75 €60 - 75 €110 - 140 €125 - 250 €125 - 175 €250 - 350 €20 - 45 Fossil / nuclear Onshore wind Large PV Small PV Offshore wind Tidal stream Energy efficiency
  • 13. 13 38% energy saving 3.1 year payback on incremental capital NO SUBSIDIES! Source: Empire State Building 2012
  • 14. Additional grid costs of low carbon generation Penetration 10% 30% Additional System costs ($/MWh) Nuclear 3.1 2.8 Coal 1.3 1.3 Gas 0.6 0.6 Onshore wind 20.5 43.9 Offshore wind 36.0 45.4 Solar PV 57.9 83.0 Source: OECD 2012
  • 15. Additional benefits from efficiency Benefit from commercial lighting retrofit (example) $ Energy savings 1,900 Capacity savings 600 Line losses avoided 200 T & D investment 600 Environmental benefit 200 Total Benefit 3,500 NB assumes 12 hours a day lighting Source: ConEdison 2012
  • 16. Energy efficiency: 21 jobs per $1m spend Energy generation: 10 jobs per $1m spend Economy as a whole: 17 jobs per $1m Source: ACEEE 2011
  • 19. In summary: Energy efficiency: - Delivers much lower cost per MWh energy services - Does not require any subsidies - Has additional system benefits whereas renewables have additional system costs - Generates more jobs per €1m of activity (21) than the average of the economy (17) and the energy industry (10) - Decarbonisation through renewables is not plausible - Over the last 30 years efficiency has delivered more energy services than any other type of energy - & that is without us really trying! - Think about what we can do if we really try! © Steven Fawkes 2013

Editor's Notes

  1. We should never forget energy efficiency – my favorite subject. It may surprise you to learn just how inefficient we really are. Research from the University of Cambridge shows that we put 475 units of energy (fuel, nuclear, everything) in and we actually only usefully use 55 units – a total efficiency of about 11%. Isn’t that amazing – all of our technology and the best the world can do is 11% efficiency!
  2. Now – show me the moneyAs an aside Boulton & Watt who are pictured here – made their money by implementing energy efficeincy – the Watt steam engine was much more efficient than the existing technology and saved coal mine owners a fortune. Bolton & Watt had the first example of shared savings deal – they took a % of the savings over a long term contract.Now I am going show you some big numbers
  3. Attractive to one of the richest New York property owners – Tony MalkinAs Tony said to me, I am a green but business is business and I only invest on a 3 year payback period – and what is more everyone in the New York property world knows that.
  4. Well, breaking down the problem we need to do three things:Massively expand demand for energy efficiency across the economyMassively expand the supply of energy efficiency products and servicesMassively expand the availability of finance for energy efficiency