The Hindu Business Line : IEA urges residential sector to improve energy efficiency

Mumbai, March 25 Energy efficiency is the most effective way to meet three major energy-related challenges: increased energy security, reduced energy costs and a cleaner environment.

Buildings can become energy-efficient by adopting energy saving technologies and practices, as well as by the removal of market barriers to increased efficiency, according to a report from Paris-based International Energy Agency (IEA).

It is estimated that buildings are responsible for over 40 per cent of world’s total primary energy consumption and account for 24 per cent of world’s carbon dioxide (CO2) emission.

Market barriers

The market barriers inhibiting increased energy efficiency in residential buildings include difficulties in accessing capital, low priority for energy issues, presence of information asymmetries and principal-agent problems (or split incentives between investors and energy end-users like between a landlord and a tenant).

Case studies in the residential sector of five countries (Japan, US, France, Germany and the UK) have brought out five policy lessons, IEA said.

IEA outlines policy lessons

Policy lessons

First, given that financial barriers in the residential building sector are numerous and complex, multi-policy packages are needed to address multiple barriers at the same time.

Second, public-private partnerships offer the best opportunity to meet the five evaluation criteria namely: relevance, effectiveness, flexibility, clarity and sustainability.

Third, the creation of a market for energy efficiency is necessary to increase sustainable energy efficiency in the building sector.

Fourth, market transformation will require increased private sector involvement which must be triggered by strong political will to create the necessary conditions.

Lastly, the national context plays a determining role in the success or failure of policies.

Technology

World over builders are looking for energy efficiency technologies. The latest is zero-energy or energy-neutral buildings, also called green buildings. For a country like India with rapidly expanding real estate sector and worsening energy shortage, guided growth in energy saving or conservation would be the best thing to happen, according to experts.

However, greater awareness about such issues and commitment to cleaner environment is necessary.

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