1. ©
OECD/IEA
2014
Capturing
the
Mul/ple
Benefits
of
Energy
Efficiency
in
Industry
Retool
for
a
compe//ve
and
sustainable
industry
eceee
2014
Industrial
Summer
Study
2–5
June,
Arnhem
Robert
Tromop

2. ©
OECD/IEA
2014
Beyond
MJs
and
kWhs
n Increasingly
decision
makers
are
mo/vated
by
social
and
economic
outcomes
n ‘’Tradi/onal
thermodynamic
indicators
of
energy
efficiency
were
found
to
be
of
limited
use,
as
they
give
insufficient
aOen/on
to
required
end
use
services
…’’
What
is
energy
efficiency?:
Concepts,
indicators
and
methodological
issues.
Pa;erson
M.G.
1996.
hOp://www.sciencedirect.com/science/ar/cle/pii/0301421596000171
n How
far
have
kWhs
got
us?
n Price
is
a
cri/cal
driver,
what
are
policies
really
achieving?
n How
are
the
markets
that
deliver
EE
developing?
n What
does
society
get
out
of
EE?
n What
has
changed,
and
what
is
it
worth?

3. ©
OECD/IEA
2014
USD300Bn
global
EE
market
in
2011
n Comparable
to
RE
and
fossil
power
genera/on
investments
n BUT,
investments
in
energy
efficiency
are
s/ll
less
than
two-­‐thirds
of
the
level
of
fossil
fuel
subsidies
0
100
200
300
400
500
600
700
Upstream oil
and gas*
Coal,oil and
gaselectricity
generation ***
Renewable
electricity
generation **
Energy
efficiency
Renewable
energy
subsidies*
Fossil fuel
subsidies*
USDbillion
Estimated
range of
USD 147 to
300 billion
EE stands alongside
supply resources

4. ©
OECD/IEA
2014
• Between
1974
and
2010,
energy
efficiency
was
the
largest
energy
resource
• Cumula/ve
avoided
energy
consump/on
due
to
energy
efficiency
in
these
IEA
countries
amounted
to
over
1
350
EJ
(32
billion
toe)
IEA’s
first
fuel?
0
500
1000
1500
2000
2500
3000
3500
4000
0
20
40
60
80
100
120
140
160
180
Mtoe
EJ
Coal Oil Gas
Electricity Other Avoided energy use
TFC
Total final
Consumption (TFC)
Hypothetical energy use had
there been no energy efficiency
improvements
Avoided energy equal
to 65% of 2010 TFC

5. ©
OECD/IEA
2014
Mul/ple
Benefits
of
Energy
Efficiency
Energy
efficiency
improvement
Energy
provider
benefits
Asset
values
Disposable
income
Poverty
allevia/on
Health
&
wellbeing
Energy
savings
Climate
change
mi/ga/on
Energy
prices
Resource
management
Development
Energy
security
Job
crea/on
Macro
impacts
Public
budgets
Industrial
produc/vity

6. ©
OECD/IEA
2014
• GHG
emissions
abatement
• Energy
prices
• Development
goals
• Resource
management
InternaConal
• Macroeconomic
effects
• Job
creaCon
• Energy
security
• Public
budget
impacts
NaConal
• Increased
asset
values
• Energy
provider
and
infrastructure
benefits
• Industrial
producCvity
and
compeCCveness
Sectoral
• Health,
wellbeing
and
social
improvements
• Poverty
alleviaCon:
energy
affordability
&
access
• Increased
disposable
income
Individual
More
Public/Private
Stakeholders
The
Public
Mul/ple
benefits
at
mul/ple
levels

7. ©
OECD/IEA
2014
Mul/ple
Benefits
Project
Goals
§ Quan/fy
the
social
and
economic
outcomes
delivered
by
energy
efficiency
improvements
§ Highlight
the
tools
and
methods
to
capture
the
range
of
benefits
and
costs
§ Show
how
MB
approach
can
fit
within
exis/ng
evalua/on
approaches
§
Communicate
the
contribu/on
that
improving
energy
efficiency
makes
to
mainstream
social
and
economic
policy
§ Help
countries
build
consensus
on
the
value
of
a
mul/ple
benefits
approach

8. ©
OECD/IEA
2014
Mul/ple
Benefits
Handbook
Outline
Part
1
METHODOLOGICAL
TOOLKIT
Outline
for
each
benefit
area:
exisCng
evidence;
key
indicators;
main
methodological
opCons;
default
values/
mulCplier
table;
piUalls;
sample
results.
Part
2
MB
IN
THE
POLICYMAKING
PROCESS
IntegraCng
MB
into
a
step-­‐by-­‐step
evaluaCon
process
CommunicaCon
and
messaging
Resourced
by
4
workshops
Over
300
global
experts
Thanks
to;
UK
DECC,
OEE
NR
Canada,
SEAI,
EEF,

9. ©
OECD/IEA
2014
Experts
Roundtable
on
Industrial
Produc/vity
&
Compe//veness
Impacts
Stakeholder
Interest
in
quan/fying
non-­‐energy
benefits
Site
or
company
level
• More
comprehensive
assessment
of
costs
and
benefits
of
energy
efficiency
investments.
• Increase
benefit-­‐cost
raCos
-­‐
shorter
payback
periods.
• Enhanced
sustainability
reporCng.
Energy
service
or
financial
sector
• Enhanced
business
models
–
strengthened
business
case
for
energy
efficiency
projects.
• Improved
bankability
of
energy
efficiency
projects.
Shareholders
• Increased
understanding
of
how
key
resources
affect
business
• Richer
understanding
of
business
investment
performance
• Beaer
return
on
investment
Programme
or
policy
level
• More
comprehensive
assessment
of
the
cost-­‐effecCveness
of
programmes
or
policies
,
jusCfy
funding
and
addiConal
resources
• IdenCfy
best
opCons
to
access
economic
outcomes
• Improved
ability
to
engage
industry
in
programmes
by
showing
quanCfied
benefits
beyond
cost
reducCons
from
reduced
energy
use.
Wider
sector
or
economy
level
• JusCficaCon
for
invesCng
in
policies
to
promote
energy
efficiency.
• Improved
decision-­‐making
basis
for
where
to
allocate
resources
–
energy
efficiency,
new
generaCon
or
other
measures.
• Improved
internaConal
compeCCveness

10. ©
OECD/IEA
2014
Headlines
Produc/vity
and
opera/onal
benefits
to
non-­‐
energy
opera/ons
l 40-­‐50%
of
the
value
of
energy
savings,
l as
much
as
250%
value
of
energy
savings.
Energy
efficiency
projects
improve
control:
l improved
produc/vity,
product
quality,
safety,
which
in
turn
reduce
risk,
process
/me,
and
waste.
Prevailing
use
of
simple
payback
analysis
undervalues
life
impacts
of
EE.
Including
non-­‐energy
benefits,
iden/fying
risks,
opera/onal
value
improvements,
drives
investments
with
a
beOer
return
on
investment.

11. ©
OECD/IEA
2014
Headlines
n Opera/onal
outcomes
worth
up
to
2.5
/mes
the
value
of
energy
savings
n 3
-­‐
4
year
paybacks
drop
to
1
year
when
other
benefits
are
assessed.
n e.g.
153MWh/yr
energy
reducCon
worth
USD12,000.
But
wait
there’s
more;
l -­‐USD50,000/yr
in
process
chemicals,
l -­‐USD12,000/yr
in
corrosion
inhibitors,
l -­‐USD20,000/yr
corrosion
damage.

12. ©
OECD/IEA
2014
Headlines
For
many
businesses,
energy
is
seen
as
an
opera/onal
cost.
l Strategic
value
added
is
a
more
powerful
driver
for
any
business.
A
mul/ple
benefits
approach
to
evalua/ng
energy
efficiency
investments
starts
to
inform
beOer
strategic
decisions.
A
range
of
tools
quan/fy
mul/ple
benefits
outcomes
where
tradi/onal
market
valua/on
approaches
do
not
easily
apply.

13. ©
OECD/IEA
2014
We
have
ways
of
mone/sing
your
EE.
Subjective
Quantitative
Direct
monetisation
though
market
valuations
Indirect
link
to
market
valuations
Implicit
monetary
valuation:
Willingness
to
pay
/
accept;
direct
query;
rankings
Scaled
valuations
Contingent
valuations
Orders
of
magnitude
Con-­‐joint
analysis
Qualification-­‐
no
valuation
attributed
Qualitative
Objective

14. ©
OECD/IEA
2014
Quan/fied
values
for
mul/ple
benefit
impacts
can
be
integrated
into
tradi/onal
policy
decision-­‐
making
tools
to
inform
real
impacts
of
energy
efficiency.
Energy
efficiency
may
also
be
an
undervalued
by-­‐
product
of
opera/onal
improvements
or
upgrading
projects.
l A
reframing
of
improvement
opportuni/es
and
perspec/ves
is
required.
Every
country
should
adapt
the
mul/ple
benefits
approach
to
its
na/onal
priori/es,

15. ©
OECD/IEA
2014
What
has
changed?
n We
need
to
engage
some
new
paradigms
n Mul/disciplinary
evalua/on
is
key
n Evalua/on
and
valua/on
techniques
exist
n Expand
scope
of
LCA
frameworks
n Cri/cally:
Ask
what’s
changing?,
l not
how
many
kWhs
have
we
‘saved’