Improving Energy Efficiency

All countries with growing economies can dramatically decrease growth in energy use through reducing energy intensity and improving energy efficiency. They could bring about reductions in emissions of polluting gases, involving greenhouse gases, particularly through shifting to cleaner sources of energy, such as natural gas and renewable energy resources. Let us starts through understanding the concept of energy intensity.

Energy Intensity

Energy intensity is described as the ratio of energy consumption to the Gross Domestic Product (GDP). It is computed as units of energy per unit of GDP.

Energy intensity is a measure of the energy efficiency of a nation's economy. High energy intensities denoted a high price or cost of converting energy into GDP. Low energy intensity implies a lower price or cost of converting energy into GDP.   Below a certain level of development, growth results in increase in energy intensity. With additional growth in economy, the energy intensity begins declining.

In 2001, I energy intensity (energy consumption per dollar of GDP) figured in the highest bracket in Asia, surpassed only through Pakistan and China. Therefore, in terms of Purchasing Power Parity, the energy intensity is lower than that of USA and the world average as the Table below indicates.

Several  factors  such  as the  common  standards  of living  and  weather  conditions influence  an  economy's  whole  energy  intensity.  For  instance,  a  nation  with extreme  weather  conditions  needed  heating and cooling, long commutes,  and extensive  use  of  commonly  poor  fuel  economy  vehicles  will  have  high  energy intensity.   In comparison,   a nation   which   has mild   and   temperate   weather, demographic patterns of work places close to home, uses fuel efficient vehicles, supports carpools, mass transportation or walks or rides bicycles, will have low energy intensity.

We now elaborate how improving energy efficiency helps in the targeted of reducing energy intensity and conserving energy.

Power system energy efficiency significantly depends on making optimum choices about fuels, technology, design of buildings, scale of operations, energy pricing, habitats and transportation systems and the standards for energy end-use applications. Therefore, we could say which energy efficiency in the power sector has two dimensions: supply side efficiency in energy conversion to its cleanest form (conversion to electricity) and demand side efficiency in end usage.

Remember that electricity generation includes conversion of mechanical, chemical or nuclear energy within electrical energy. Conversion of mechanical energy to electrical energy occurs at a higher efficiency. Maximum loss occurs during the conversion of chemical energy to thermal energy.

We now briefly elaborate the aspects of supply side efficiency and demand side efficiency.