4.3.5 Definition of energy efficiency
There is no universal definition of the energy efficiency market due to its complexity. In 2013, the International Energy Agency aimed ‘for the first time’ to define and measure the energy efficiency market. The IEA noted the challenge of defining an energy efficiency market:
The most challenging boundary definition issues arise in relation to energy efficiency and demand management. The International Energy Agency (IEA) has defined energy efficiency in the following terms:
“
T he market for energy efficiency is as diffuse as energy consumption patterns themselves. It is composed of many market actors who demand more efficient provision of energy services, and those that supply the necessary goods and know-how to deliver this greater efficiency... The supply of energy efficiency cannot be considered as a distinct sector of the economy. Its magnitude is intimately linked to economic structure and the sectors in which the potential for energy savings lie.
“
I n its most basic form, investments are made in energy efficiency that lead to avoided energy consumption (for demand-side interventions such as improved vehicle efficiency) or avoided energy losses (for supply-side interventions such as improvements to the efficiency of electricity distribution). Delivering the same level of energy service (lighting, heating, transport etc.) while using less energy has a value related to the cost of the energy saved.
”
”
International Energy Agency (2013), p.17 & 36.
International Energy Agency (2013), p.28.
The IEA defined the energy efficiency market as a collection of energy-saving technologies, products and services related to end-uses within appliances and lighting, buildings and the industrial sector. Adapting and extending the IEA definition for characterising the NSW energy efficiency market, Common Capital (2014) defined the energy efficiency market as a subsector within energy services for a range of products within each of the three segments identified by the IEA and crosscutting services (see Figure 6).
Although there is an energy management sector, many energy efficiency activities are diffused throughout the economy and businesses, and workers may spend some of their time on energy efficiency activities and some of their time on other activities. For example, an electrician may work on energy efficiency projects and non-energy efficiency projects. Construction workers may be involved in energy efficient projects with high-star ratings and other projects which do not even meet the requirements for star ratings.
Figure 6. The energy efficiency market From Common Capital, 2014
ENERGY EFFICIENCY MARKET Domestic hot water Pool supplies APPLIANCES AND LIGHTING
Computer equipment Energy information Lighting HVAC Insulation Automation and controls Window systems
CROSS-SEGMENT ENERGY EFFICIENCY SERVICES (Audits, finance, design, maintenance, M&V, etc)
BUILDINGS
IEA SEGMENTS
ENERGY SERVICES MARKETS
Domestic appliances and peripherals
Process heating Motor systems Compressed air Refrigeration
INDUSTRIAL
RELATIVE ENERGY EFFICIENCY PERFORMANCE
E3 Opportunity Assessment: Developing the future energy workforce
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