The benefits of energy efficiency and energy saving

Efficient energy use, sometimes called energy efficiency and energy conservation, is to reduce the amount of energy required to provide products and services.

Energy efficiency and conservation can be defined as the energy consumption for this service and normally refer to the improvement of this relationship.

Energy efficiency involves improving the technical energy characteristics of the mechanism of delivery of different types of energy, but may also include better management or organization of energy consumption.

Energy is inextricably linked to socio-economic development, so it is easy to imagine that this trend can be a means to achieve political objectives outside the energy sector. Some results may be indirect, or be the result of a chain of actions, which are difficult to relate to this concept.

energy saving

However, we can assume that measures to improve energy efficiency and energy saving have an impact on different areas of the economy, often in different areas simultaneously, and direct impact in one area of the economy can affect another.

Traditionally, most attention in this field on the use of less energy for the same energy services. However, it may also increase the volume of services for the same amount of energy consumed.

Thus, energy efficiency can be achieved in the case where either a lower energy consumption to provide the same level of services, or the same energy is consumed for a higher level of services. Energy efficiency measures and energy saving can be focused on:

  • rational energy consumption;
  • the energy saving mode.

Energy efficiency and conservation is an important aspect and focused on such activities as reduction of losses in electricity production or an increase in industrial activities. Important in both forms.

Understanding of wave effect that may occur as a result of increasing energy efficiency throughout the economy could be useful in developing targeted policies.

Here, the various benefits from the efficient use of energy at the individual/sectoral/national/international typology. Multiple benefits of energy efficiency and energy saving: the increase can yield substantial multiple benefits across a wide range of sectors.

A list of the many wider benefits that can be obtained using these measures:

Advantages in energy efficiency and energy saving

Health and well-being

Especially clearly proved the positive impact of energy efficiency and energy saving in the housing sector on health and related social consequences. A wide range of diseases, particularly respiratory illness and asthma among children were closely associated with cold temperatures, damp and mould in dwellings.

Energy efficiency and energy saving in the building sector, in particular, can bring a wide range of tangible benefits for the health of the residents of houses, office workers and many other groups and the population as a whole. Health effects equally due to inefficient housing and appliances.

The fight against poverty and affordability of energy

In the context of high energy prices and financial constraints of the poor often can't afford enough services to maintain a healthy living conditions, forced it is not enough to heat the home to endure poor air quality in the premises and/or give up other necessities, such as food: a phenomenon sometimes known as “heat or food”. This situation is usually described as “fuel poverty.” Energy efficiency and conservation can solve the problem by taking measures at the household level to reduce energy costs through insulation and design, supply efficient equipment for space heating and water heating and lighting, as well as training on the effective use of energy among residents.

Access to energy services is fundamental for the release of people out of poverty through the provision of raw materials for socio-economic development. Measures to improve energy efficiency, undertaken by the energy suppliers can free up additional resources by reducing technical losses in their systems of production and distribution of energy.

Industrial productivity and competitiveness

There are many improvements in industrial productivity, which can provide energy efficient production and energy saving. These include increased profit, safer working conditions, consistency and improvement of quality and output, lower capital and operating costs and reduction of scrap and energy. Benefits can be received by these industries on global level through increasing competitiveness and can spread to everyday working conditions, safety and job satisfaction of individual employees.

Benefits for energy suppliers and infrastructure

the conservation of energy in the world

At first glance it may seem that energy efficiency and conservation contrary to the commercial interests of energy providers. However, research shows that energy providers receive many benefits from the point of view of providing better energy services to customers, reduce operating costs and increase profits.

Up to 10% of the benefits arising from measures to increase are likely to accrue directly to energy providers, which explains why many utilities are already taking ambitious measures to manage demand, to stimulate, in many countries legislative obligations in this area.

The increase in the value of assets

There is some evidence that investors are willing to pay rent and premium for the sale of real estate with the best energy performance.

For example, energy is one of the highest operating cost in most offices, so the net present value of future energy savings may be added to the resale value. Studies show that the market increasingly reflects these arguments.

Existing analyses of data show that green buildings have increased resale value and rental rates, and also offer a wider range of benefits even beyond the value of the assets: they have higher rates of employment, increased comfort, lower maintenance costs and lower capitalization rates and higher productivity gains.

The creation of jobs

Investments in energy efficiency programs and energy efficiency have significant potential to create jobs with short lead-time. The net improvement in employment can be explained by the improvement programmes through direct job creation and indirectly through consumer surplus spending, in addition to other benefits for state budgets, such as reducing unemployment benefits. Direct jobs created during the implementation of measures to improve energy efficiency and conservation are the easiest to measure, and likely to be a lot. Indirect jobs can also be created in the production of raw materials, however, these jobs can be preserved only during a particular program.

The reduction in public spending related to energy is the future of the public sector as a separate economic entity. Energy efficiency and conservation will contribute to reducing the burden on national budgets and improve fiscal balance.

Energy security

Energy efficiency plays a role in reducing the dependency of countries on imports to meet their needs and thus contributes to the formation of a variety of energy balance. Consequences that permeate energy security, are structurally dependent on the energy sector in the country.

Macroeconomic effects

Energy efficiency and conservation can lead to significant positive macroeconomic impacts such as GDP growth, trade balance, economy restructuring, employment and national competitiveness. They can have a significant impact on the country's budget. Investments in this direction involving a transfer of capital from energy to less energy-intensive activities.

This may have significant implications for the economy and energy management in General, if the translation involves the restructuring of the economy on a more labour-intensive activities.

The reduction of greenhouse gas emissions

Energy efficiency and conservation reduce the consumption of fossil fuel energy and to reduce greenhouse gas emissions. Indeed, the measures are expected to contribute 44% reduction in carbon emissions by 2035, to have a chance to achieve the international goals in the field of climate change.

Compared to other measures to reduce greenhouse gas emissions, improving energy efficiency, as a rule, is more cost-effective and can be implemented quickly. Reducing emissions has already been recognized as one of the main results of measures to increase energy efficiency and are often already measured as a course in the evaluation of existing programs.

The decline in energy prices

energy and the environment

The decline in energy prices depend on a number of factors such as the level of energy supply, energy demand and market conditions. Ceteris paribus, if the demand for services will decrease, energy prices should fall, and it is expected that the energy efficiency and conservation will provide the necessary reductions in energy demand.

Management of natural resources

Another benefit of reducing the demand for energy is easing the pressure on natural resources.

Given the fact that by 2035, global production of conventional crude oil will decrease energy efficiency and conservation will become increasingly important measure to relieve the pressure on limited resources. Objective development sustainable development is an international responsibility and access to modern energy services is crucial to ensure the basic necessities of life, as well as the conditions for socio-economic development.