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Energy efficiency and renewable energy in a decarbonized electric power system

Panel: 2. What's next in energy policy?

This is a peer-reviewed paper.

Author:
Hans-Paul Siderius, Netherlands Enterprise Agency, The Netherlands

Abstract

For long time energy efficiency and renewable energy have been treated separately, but the need to decarbonize the (electric) power system brings them together. In a decarbonized power system any demand must be met in a sustainable, zero-carbon way. Therefore the relation could be simply formulated as follows: energy efficiency is about reducing demand so that this can be met by electricity generated by renewable energy sources.

However, competing claims from the two sides arise. The renewables claim that with the abundant availability of renewable energy there is less or no need to focus on efficiency. On the other hand energy efficiency claims it is the “first fuel” that is much cheaper than renewable energy (or any other energy source) and therefore should get priority. It seems that both claims are rooted in the current situation in which the power system in most countries is still highly carbonized and centralized, and efficiency is deployed in a modest way only.

This paper provides a framework to explore the relations between energy efficiency and renewables in the electric power system. The elements of the system – generation, connection, storage, control and efficiency – are in competition with each other. Different system designs will put emphasis on different elements; however, simple, single focused solutions will not realize a decarbonized power system. By looking at the extreme situation – an electric power system with renewable generation only – the consequences for energy efficiency will become clearly visible. The paper concludes with recommendations for further research.

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