McKinsey Global Institute (MGI) reports that an additional annual investment in energy productivity of $170 billion through 2020 could cut global energy demand growth by at least half—the equivalent of 64 million barrels of oil a day or almost one and a half times today’s entire U.S. energy consumption.
MGI research suggests that the economics of investing in energy productivity—the level of output we achieve from the energy we consume—are very attractive. With an average internal rate of return of 17 percent, such investments would generate energy savings ramping up to $900 billion annually by 2020. . . .
Moreover, the opportunities to boost energy productivity use existing technologies that pay for themselves and therefore free up resources for investment or consumption elsewhere.
MGI has put a figure on how much it would cost and how much "energy productivity" could reduce our energy consumption and corresponding green house gas (GHG) emissions which, by there reasoning, is affordable. Because none of this investment is in renewables the effect of these technologies on GHG emissions is in addition to the energy savings.
Thanks for tip from Richard Stubi of Cleantech Blog
I'm glad to see some news (nothing new-- same as the 2007 reports) about energy efficency, as it's way underutilized. Politicians are tripping over each other to either subsidize drilling for oil (the solution to a depleting resource is to use income tax to increase the rate of depletion?), or token measures in alternative energy. Not much is being said about a national effort to reduce energy waste.
Besides reducing the consumption of energy, we could also improve efficiency in production, e.g. Recycled Energy Development, LLC
While politicians make bogus claims that clean energy will drive us to economic recession (and a much more costly war won't?), how about that 17% average rate of return? For lighting, it's 500%! Why are only a small percentage of light bulbs energy efficient?
Why put so much effort arguing about nuke vs wind, solar, etc., when there is a huge gain from effiency?
Amory Lovins of rmi.org estimates that in transportation, we could reduce fuel consumption for $12/barrel. So why put so much effort into subsidized expanded drilling, instead of promoting that $12/barrell avoided? Besides avoiding an order of magnitude more cost, we avoid the economic drain and jobs lost.
California has 1/2 the electric consumption per person than the US average, and 1/4 the consumption in some states. The weather is only a small part-- the public policy is to allow energy utilities to profit from energy reduction rather than only profit from increased energy use.
Too bad the economic stimulus didn't give rebates for energy reduction. Instead we borrowed money to give to the coal industry.
Posted by: Carl Hage | February 19, 2008 at 03:59 PM
Right on, technofossil. Unfortunately, you can see the prejudice against efficiency and conservation in the lack of comments here regarding this topic. It's very frustrating to see so much subsidizing of generating technologies when the obvious low-cost solution to essentially all problems in the utility industry is efficiency and conservation.
Opponents keep saying conservation is "freezing in the dark" and that you "can't conserve your way out of an energy shortage." Both claims are nonsense.
The problem with conservation and efficiency is that it is just not sexy at all. It seems people would rather dream of high-cost ultra-technological solutions, like encasing nuclear plant radioactive waste in glass and scattering it on the ocean floor or even launching it into space, than to simply save energy and money through very low-tech/low-cost efficiency measures. It's hard to understand.
We could be doing so much more to address fuel shortages and climate change through efficiency. The benefits are immediate and permanent, and almost free.
As a few others have noted on this board (very few, unfortunately), there's no reason to pursue any other energy policy for reducing fuel use and greenhouse gas production than conservation and efficiency, until something comes along that can offer the same benefits at similar cost. Right now, nothing even comes close.
Posted by: NorCalMatt | February 22, 2008 at 04:06 PM
Just wanted to say thank you for your awesome contribution, and while I'm not as science-oriented as I'd like to be, I put this site in my favorites so I can learn about these technologies because they are very interesting to me. Thanks!
Posted by: Lauren Patrizi | February 26, 2008 at 07:17 PM
I am looking for data or chart of the return on investment for residential conservation measures like the above quoted figure by Amory Lovins. I would like to compare things from weather stripping and furnace servicing to added insulation and low-e storm windows to window replacements. I find individual pieces of data, but not a consistent set that can be compared versus interest rates on home loans/credit cards versus the cost of heating oil/gas/electric. I want to use this for various presentations I do to school groups, Boy Scouts, etc. Any links of data would be a great help!
Posted by: mapson4 | February 29, 2008 at 07:59 PM
Geothermal is a perfect way to reduce energy use. A geothermal heating and cooling system can cut your home heating and cooling energy use by up to half.
Posted by: George | September 19, 2009 at 04:18 PM
This is a wonderful opinion. The things mentioned are unanimous and needs to be appreciated by everyone.
Rachel
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Posted by: rachel | October 07, 2009 at 06:49 AM
This is a wonderful opinion. The things mentioned are unanimous and needs to be appreciated by everyone.
Rachel
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Posted by: rachel | October 07, 2009 at 06:51 AM
I like the idea when JFK said we're going to the moon in 10 years. We should have the same idea that everyone will be driving
Posted by: buy wholesale | May 10, 2010 at 07:56 AM
I would like to see more details about this topic. I'm going to keep coming back here.
Posted by: femmes | July 06, 2011 at 06:07 AM
I agree with femmes. We need to keep this debate alive and not let it fade away.
Posted by: free electric energy | August 24, 2011 at 05:41 AM
they make a great point here, this is something that should be a World-wide collective effort.
Posted by: parking sensors | November 25, 2011 at 05:55 PM
Yes people need to invest in energy research and development! It's important for EVERYONE!!
Posted by: Auto Lease Los Angeles | November 25, 2011 at 06:23 PM
Where is this company based? Are they American?
Posted by: Furniture Stores in Los Angeles | November 25, 2011 at 07:11 PM
It's great that they can use existing technologies to do some of this so like you said, it practically pays for itself.
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