September 08, 2008
IEA urges residential sector to improve energy efficiency
According to a report from Paris based International Energy Agency, energy efficiency is the most effective way to meet 3 major energy related challenges namely increased energy security, reduced energy costs and a cleaner environment.
As per report, buildings can become energy efficient by adopting energy saving technologies and practices, as well as by the removal of market barriers to increased efficiency. It is estimated that buildings are responsible for over 40% of world’s total primary energy consumption and account for 24% of world’s carbon dioxide emission.
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.
IEA said that case studies in the residential sector of 5 countries namely Japan, US, France, Germany and the UK have brought out 5 policy lessons.
1) 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.
2) Public private partnerships offer the best opportunity to meet the 5 evaluation criteria namely relevance, effectiveness, flexibility, clarity and sustainability.
3) The creation of a market for energy efficiency is necessary to increase sustainable energy efficiency in the building sector.
4) Market transformation will require increased private sector involvement which must be triggered by strong political will to create the necessary conditions.
5) The national context plays a determining role in the success or failure of policies.
According to experts, 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.
