How can improved energy efficiency affect energy security?

Panel: 1. Foundations of future energy policy

This is a peer-reviewed paper.

Authors:
Daniel K Jonsson, Swedish Defence Research Agency, Sweden
Bengt Johansson, Swedish Defence Research Agency, Sweden

Abstract

Energy efficiency has in many cases positive effects on energy security, a concept that could involve not only security of supply but also demand and revenue; technological, social and environmental risk factors; geopolitical considerations as well as other political risk factors. The effects depend on kind of energy source, market structure and infrastructural preconditions. Lowered energy demand will reduce the stress on energy resources and support long-term energy availability. It also reduces the economic vulnerability to disturbances on the market, regardless of the reasons for disturbances.The risks for disturbances due to market imbalances will probably decrease in the short run but the positive effects might diminish in a long-term perspective, e.g. when energy markets adapt to lower energy demand levels and new supply and demand balances are established. There are however some exceptions when energy efficiency may entail negative effects, e.g. for energy suppliers’ security of demand and revenue. Moreover, energy efficiency measures might entail fewer – but relatively more important – production facilities. Society will then be more vulnerable to malfunctions and production stops in a specific facility. When discussing the impact of energy efficiency improvements it is important to be specific with what the reference system is. Energy efficiency improvements that are overrun by increases in energy service growth can nevertheless improve energy security compared with a future case without energy efficiency measures, although energy security might be lower compared with the present situation.