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IEA 2019. All rights reserved. Energy Efficiency and Digitalization Kathleen Gaffney, IEA 19 June 2018 IEA

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Page 1: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

Energy Efficiency and Digitalization

Kathleen Gaffney, IEA

19 June 2018

IEA

Page 2: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

Big expectations on energy efficiency…

Energy efficiency is essential and needs to play a leading role in sustainable energy transitions.

Global CO2 emissions reductions in the New Policies and Sustainable Development Scenarios

16

20

24

28

32

36

2010 2020 2030 2040

Gt

New Policies Scenario

Sustainable Development Scenario

Efficiency

Renewables

Fuel-switching

CCSOther

Nuclear

44%

36%

2%6%9%2%

Page 3: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

…But, we are not on track

The annual rate of improvement in global primary energy intensity has been slowing in recent years,

dropping from a high of nearly 3% in 2015 to 1.9% in 2017, and falling again to 1.3% in 2018.

Page 4: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

Modernising energy efficiency through digitalisation

The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation on

energy efficiency and implications for policy makers.

• Ensuring end-use efficiency

Greater control and optimisation

New business models

Enabling behaviour change

• Enabling system efficiency

Optimal use of infrastructure

Integrating variable renewables

More precise valuation of efficiency resources

• Enhancing policy efficiency

Precise targeting & implementation

Improved market surveillance

Granular data and robust M&V

Page 5: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

Digitalisation can accelerate and scale up end-use efficiency…

Digitalization has the potential to reshape, modernise, transform demand-side sectors.

Policies are essential to maximise benefits and reap energy saving opportunities.

Transport

• Key digital trends across all

modes: connectivity, sharing, and

automation

• Digital solutions for trucks and

logistics could reduce energy use

for road freight by 20-25%

Buildings

• Smart building controls will

improve comfort and transform

building energy use

• Globally, buildings energy use

could be reduced by 10% to 2040

Industry

• Digital energy management

systems enable real time data and

control

• Plant level savings in the region of

10 – 20% of energy use (just

through optimization)

Page 6: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

New markets for flexibility and ancillary services are needed, and existing markets need to opened to

new business models such as aggregation and virtual power plants.

…And unlock further opportunities in the wider energy system

1 billion households and

11 billion smart appliances

could actively participate in

interconnected electricity

systems

Residential sector

Page 7: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

Modernising energy efficiency through digitalisation

Key elements of IEA’s cross-agency work programme:

Analytical

work

Webinars

Platforms

Resource

library

Digital

readiness

framework

Market

Report

Workshops

Discussion

& outreach

Knowledge

base

Case

studies

Policy

guidance

Page 8: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

• 5-6 technology case

studies

Energy Efficiency 2019

• What does digitalisation

means for efficiency

and demand?

Server & standby energy use

Optimisationof energy

use

Automated

homes

Shared

mobility

Autonomous

freight

Automated

productionIntelligent

EMS

• Policy considerations

for supporting digital

energy efficiency

Page 9: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

Workshops 27 March

Topics:

• Opportunities & business models

• Enhancing energy efficiency policy

• Break out discussions on:

• Active energy management

• Consumer engagement platforms

• Energy services

• Policy making

Key issues:

• Energy efficiency & demand response

• Data (privacy, access, guidelines)

• Interoperability

• Capacity building

• Case studies

• Knowledge sharing

• Guidelines

• Risks

Case

studies

Page 10: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

Digitalisation creates new business models

New opportunities for companies to help optimise energy use and enable participation in electricity

market

New assets

Internal conditions

External conditions

DNO/DSO

Wholesale market

Supplier imbalance

Generation mix

MeterCHP

Cost goals

Comfort goals

Carbon goals

Data-driven

exchange of

information and

value across the

meter

Case study

Page 11: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

Digitalisation boosts engagement in energy efficiency

Enabling the creation of interfaces that more effectively encourage users to become engaged in energy

efficiency and change behaviour

Case study

Page 12: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

Digitalisation makes programmes more effective

Gives policy makers access to new data, cheaper data & opportunities to combine data in new ways

Data scraping

Raw data Data cleaning

NordCrawl database

Analysis

Case study

Page 13: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

Webinar series

Page 14: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

Online community

A platform for discussing and sharing knowledge

and experience on:

• Digitalisation for energy efficiency (across

sectors & systems, in policy development)

• Framework conditions needed to enable

innovation, new business models and

deployment

www.linkedin.com/groups/13700212/

Page 15: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

Policies for digitalisation

• Globally, governments are undergoing

“digital transformations”

• Frameworks have been developed to

promote good practice digital policy

• IEA will identify policy factors to support

digital energy efficiency

• This will build on existing work, including:

- Going Digital Integrated Policy Framework

(OECD, 2019)

- No regrets policy recommendations for

digitalisation and energy (IEA, 2017)

OECD’s Going Digital Integrated Policy Framework

Digital

EE

Access to

activity and

demand data (smart meter, apps,

administrative, etc)

Page 16: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

Readiness for Digital Energy Efficiency Framework

Skills and

expertise

Access to

dataInnovation

Trust and

social equityExperiment

Cross-govt

collaboration

Market

openness

Gen

era

l

dig

italisa

tio

n

Infrastructure

En

erg

y e

ffic

ien

cy

Regulatory

sandboxes for

new products &

services

Access to

activity and

demand data (smart meter, apps,

administrative, etc)

Public R&D for

demand side

technology

Consider impact

on EE jobs

Harmonised and

“agile” MEPS

Roll out smart

meters

EE-RE policy

integration

Data scientists in

efficiency

agencies

Page 17: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

Sources

• IEA (2017) Digitalisation and energy, https://www.iea.org/digital/

• IEA (2018) Energy Efficiency 2018, https://www.iea.org/efficiency2018/

• IEA (2019) Global Energy & CO2 Status Report, https://www.iea.org/geco/

• IEA (2019) Tracking Clean Energy Progress, https://www.iea.org/tcep/

Page 18: Energy Efficiency and Digitalization · Modernising energy efficiency through digitalisation The IEA has launched a cross-agency initiative to explore the potential impacts of digitalisation

IEA 2019. All rights reserved.

iea.org

[email protected]

IEA