IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/102031.html
   My bibliography  Save this paper

Optimal trade-offs between energy efficiency improvements and additional renewable energy supply: A review of international experiences

Author

Listed:
  • Baldini, Mattia
  • Klinge Jacobsen, Henrik

Abstract

Energy efficiency is a key priority also from a climate perspective, but efforts to increase efficiency should be balanced with the effort to increase the share of renewable sources in order to reduce fossil emissions. The climate impact of various energy efficiency measures are quite different depending on the type of fuel used and the impact from the efficiency increase on energy costs and thereby the demand for that particular energy use. Therefore it is important to address the energy efficiency options together with the alternative to switch the energy supply towards renewable sources. This calls for models and analysis that incorporate both types of options and thereby address the trade-off in a consistent way. The literature dealing with the trade-off in a direct or less explicit way is categorized and reviewed here. The aim of this paper is to review and evaluate international experiences that include the trade-off between efficiency improvements and additional renewable energy supply whether in a partial analysis of a sector or in an energy system optimization model. A critical review of the approach, focusing on purpose, methodology and outcome, is provided along with a review of modelling tools adopted for the analyses. Models are categorized and presented according to their main characteristics (e.g. bottom- up/top-down model, regional/national analysis, partial/general equilibrium, static/dynamic model). This paper intends, to provide future modelers and policy evaluators with an overview of approaches and methodologies suitable for analyzing energy efficiency policies and options with a focus on the optimal trade-off between renewables and energy efficiency measures in energy-systems under different objectives.

Suggested Citation

  • Baldini, Mattia & Klinge Jacobsen, Henrik, 2016. "Optimal trade-offs between energy efficiency improvements and additional renewable energy supply: A review of international experiences," MPRA Paper 102031, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:102031
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/102031/1/MPRA_paper_102031.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nhan T. Nguyen & Minh Ha-Duong, 2009. "The potential for mitigation of CO2 emissions in Vietnam's power sector," Working Papers 22, Development and Policies Research Center (DEPOCEN), Vietnam.
    2. Yuan, Jiahai & Xu, Yan & Kang, Junjie & Zhang, Xingping & Hu, Zheng, 2014. "Nonlinear integrated resource strategic planning model and case study in China's power sector planning," Energy, Elsevier, vol. 67(C), pages 27-40.
    3. Ekins, Paul, 2004. "Step changes for decarbonising the energy system: research needs for renewables, energy efficiency and nuclear power," Energy Policy, Elsevier, vol. 32(17), pages 1891-1904, November.
    4. Connolly, D. & Lund, H. & Mathiesen, B.V. & Leahy, M., 2010. "A review of computer tools for analysing the integration of renewable energy into various energy systems," Applied Energy, Elsevier, vol. 87(4), pages 1059-1082, April.
    5. Tao, Jing & Yu, Suiran, 2011. "Implementation of energy efficiency standards of household refrigerator/freezer in China: Potential environmental and economic impacts," Applied Energy, Elsevier, vol. 88(5), pages 1890-1905, May.
    6. A. Greening, Lorna & Greene, David L. & Difiglio, Carmen, 2000. "Energy efficiency and consumption -- the rebound effect -- a survey," Energy Policy, Elsevier, vol. 28(6-7), pages 389-401, June.
    7. van Vliet, Oscar & Krey, Volker & McCollum, David & Pachauri, Shonali & Nagai, Yu & Rao, Shilpa & Riahi, Keywan, 2012. "Synergies in the Asian energy system: Climate change, energy security, energy access and air pollution," Energy Economics, Elsevier, vol. 34(S3), pages 470-480.
    8. Calili, Rodrigo F. & Souza, Reinaldo C. & Galli, Alain & Armstrong, Margaret & Marcato, André Luis M., 2014. "Estimating the cost savings and avoided CO2 emissions in Brazil by implementing energy efficient policies," Energy Policy, Elsevier, vol. 67(C), pages 4-15.
    9. Connolly, D. & Lund, H. & Mathiesen, B.V. & Leahy, M., 2011. "The first step towards a 100% renewable energy-system for Ireland," Applied Energy, Elsevier, vol. 88(2), pages 502-507, February.
    10. Pina, André & Silva, Carlos & Ferrão, Paulo, 2012. "The impact of demand side management strategies in the penetration of renewable electricity," Energy, Elsevier, vol. 41(1), pages 128-137.
    11. López-Peña, Álvaro & Pérez-Arriaga, Ignacio & Linares, Pedro, 2012. "Renewables vs. energy efficiency: The cost of carbon emissions reduction in Spain," Energy Policy, Elsevier, vol. 50(C), pages 659-668.
    12. Hu, Zhaoguang & Tan, Xiandong & Yang, Fan & Yang, Ming & Wen, Quan & Shan, Baoguo & Han, Xinyang, 2010. "Integrated resource strategic planning: Case study of energy efficiency in the Chinese power sector," Energy Policy, Elsevier, vol. 38(11), pages 6391-6397, November.
    13. Batas Bjelić, Ilija & Rajaković, Nikola, 2015. "Simulation-based optimization of sustainable national energy systems," Energy, Elsevier, vol. 91(C), pages 1087-1098.
    14. Urban, F. & Benders, R.M.J. & Moll, H.C., 2007. "Modelling energy systems for developing countries," Energy Policy, Elsevier, vol. 35(6), pages 3473-3482, June.
    15. Lund, H. & Mathiesen, B.V., 2009. "Energy system analysis of 100% renewable energy systems—The case of Denmark in years 2030 and 2050," Energy, Elsevier, vol. 34(5), pages 524-531.
    16. Mallah, Subhash & Bansal, N.K., 2010. "Renewable energy for sustainable electrical energy system in India," Energy Policy, Elsevier, vol. 38(8), pages 3933-3942, August.
    17. Madlener, R. & Alcott, B., 2009. "Energy rebound and economic growth: A review of the main issues and research needs," Energy, Elsevier, vol. 34(3), pages 370-376.
    18. Madlener, Reinhard & Hauertmann, Maximilian, 2011. "Rebound Effects in German Residential Heating: Do Ownership and Income Matter?," FCN Working Papers 2/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    19. Rodrigo F. Calili & Reinaldo C. Souza & Alain Galli & Margaret Armstrong & André Luis M. Marcato, 2014. "Estimating the cost savings and avoided CO2 emissions in Brazil by implementing energy efficient policies," Post-Print hal-01110915, HAL.
    20. Brennan, Timothy J., 2010. "Optimal energy efficiency policies and regulatory demand-side management tests: How well do they match?," Energy Policy, Elsevier, vol. 38(8), pages 3874-3885, August.
    21. Urban, F. & Benders, R.M.J. & Moll, H.C., 2007. "Corrigendum to "Modelling energy systems for developing countries": [Energy Policy 35 (2007) 3473-3482]," Energy Policy, Elsevier, vol. 35(9), pages 4764-4765, September.
    22. Lenard, Thomas M., 2009. "Renewable Electricity Standards, Energy Efficiency, and Cost-Effective Climate-Change Policy," The Electricity Journal, Elsevier, vol. 22(8), pages 55-64, October.
    23. del Río, Pablo, 2010. "Analysing the interactions between renewable energy promotion and energy efficiency support schemes: The impact of different instruments and design elements," Energy Policy, Elsevier, vol. 38(9), pages 4978-4989, September.
    24. Shrestha, Ram M. & Marpaung, Charles O.P., 2006. "Integrated resource planning in the power sector and economy-wide changes in environmental emissions," Energy Policy, Elsevier, vol. 34(18), pages 3801-3811, December.
    25. Christov, Christo & Simeonova, Katja & Todorova, Sevdalina & Krastev, Vladimir, 1997. "Assessment of mitigation options for the energy system in Bulgaria," Applied Energy, Elsevier, vol. 56(3-4), pages 299-308, March.
    26. Sorrell, Steve & Dimitropoulos, John & Sommerville, Matt, 2009. "Empirical estimates of the direct rebound effect: A review," Energy Policy, Elsevier, vol. 37(4), pages 1356-1371, April.
    27. Pandey, Rahul, 2002. "Energy policy modelling: agenda for developing countries," Energy Policy, Elsevier, vol. 30(2), pages 97-106, January.
    28. Souza, Reinaldo Castro & Marcato, André Luı´s Marques & Dias, Bruno Henriques & Oliveira, Fernando Luiz Cyrino, 2012. "Optimal operation of hydrothermal systems with Hydrological Scenario Generation through Bootstrap and Periodic Autoregressive Models," European Journal of Operational Research, Elsevier, vol. 222(3), pages 606-615.
    29. Harmsen, Robert & Wesselink, Bart & Eichhammer, Wolfgang & Worrell, Ernst, 2011. "The unrecognized contribution of renewable energy to Europe's energy savings target," Energy Policy, Elsevier, vol. 39(6), pages 3425-3433, June.
    30. Oikonomou, V. & Becchis, F. & Steg, L. & Russolillo, D., 2009. "Energy saving and energy efficiency concepts for policy making," Energy Policy, Elsevier, vol. 37(11), pages 4787-4796, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nibedita, B. & Irfan, M., 2024. "Energy mix diversification in emerging economies: An econometric analysis of determinants," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Md. Nasimul Islam Maruf, 2019. "Sector Coupling in the North Sea Region—A Review on the Energy System Modelling Perspective," Energies, MDPI, vol. 12(22), pages 1-35, November.
    2. al Irsyad, M. Indra & Halog, Anthony & Nepal, Rabindra, 2018. "Estimating the impacts of financing support policies towards photovoltaic market in Indonesia: A social-energy-economy-environment (SE3) model simulation," Working Papers 2018-09, University of Tasmania, Tasmanian School of Business and Economics.
    3. Amorim, Filipa & Pina, André & Gerbelová, Hana & Pereira da Silva, Patrícia & Vasconcelos, Jorge & Martins, Victor, 2014. "Electricity decarbonisation pathways for 2050 in Portugal: A TIMES (The Integrated MARKAL-EFOM System) based approach in closed versus open systems modelling," Energy, Elsevier, vol. 69(C), pages 104-112.
    4. Vanegas Cantarero, María Mercedes, 2018. "Reviewing the Nicaraguan transition to a renewable energy system: Why is “business-as-usual” no longer an option?," Energy Policy, Elsevier, vol. 120(C), pages 580-592.
    5. Javier Linkolk López-Gonzales & Reinaldo Castro Souza & Felipe Leite Coelho da Silva & Natalí Carbo-Bustinza & Germán Ibacache-Pulgar & Rodrigo Flora Calili, 2020. "Simulation of the Energy Efficiency Auction Prices via the Markov Chain Monte Carlo Method," Energies, MDPI, vol. 13(17), pages 1-19, September.
    6. Lund, Henrik & Hvelplund, Frede, 2012. "The economic crisis and sustainable development: The design of job creation strategies by use of concrete institutional economics," Energy, Elsevier, vol. 43(1), pages 192-200.
    7. Heesen, Florian & Madlener, Reinhard, 2016. "Technology Acceptance as Part of the Energy Performance Gap in Energy-Efficient Retrofitted Dwellings," FCN Working Papers 25/2014, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    8. Copiello, Sergio, 2017. "Building energy efficiency: A research branch made of paradoxes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1064-1076.
    9. Bellocchi, S. & De Iulio, R. & Guidi, G. & Manno, M. & Nastasi, B. & Noussan, M. & Prina, M.G. & Roberto, R., 2020. "Analysis of smart energy system approach in local alpine regions - A case study in Northern Italy," Energy, Elsevier, vol. 202(C).
    10. Doepfert, Markus & Castro, Rui, 2021. "Techno-economic optimization of a 100% renewable energy system in 2050 for countries with high shares of hydropower: The case of Portugal," Renewable Energy, Elsevier, vol. 165(P1), pages 491-503.
    11. Jarke-Neuert, Johannes & Perino, Grischa, 2020. "Energy efficiency promotion backfires under cap-and-trade," Resource and Energy Economics, Elsevier, vol. 62(C).
    12. Ma, Weiwu & Xue, Xinpei & Liu, Gang, 2018. "Techno-economic evaluation for hybrid renewable energy system: Application and merits," Energy, Elsevier, vol. 159(C), pages 385-409.
    13. Karen Turner, 2013. ""Rebound" Effects from Increased Energy Efficiency: A Time to Pause and Reflect," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    14. repec:hal:gemwpa:hal-00991732 is not listed on IDEAS
    15. Lund, Henrik & Mathiesen, Brian Vad, 2012. "The role of Carbon Capture and Storage in a future sustainable energy system," Energy, Elsevier, vol. 44(1), pages 469-476.
    16. Connolly, D. & Lund, H. & Mathiesen, B.V., 2016. "Smart Energy Europe: The technical and economic impact of one potential 100% renewable energy scenario for the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1634-1653.
    17. Benjamin Volland, 2016. "Efficiency in Domestic Space Heating: An Estimation of the Direct Rebound Effect for Domestic Heating in the U.S," IRENE Working Papers 16-01, IRENE Institute of Economic Research.
    18. Savvidis, Georgios & Siala, Kais & Weissbart, Christoph & Schmidt, Lukas & Borggrefe, Frieder & Kumar, Subhash & Pittel, Karen & Madlener, Reinhard & Hufendiek, Kai, 2019. "The gap between energy policy challenges and model capabilities," Energy Policy, Elsevier, vol. 125(C), pages 503-520.
    19. Ma, Weiwu & Fang, Song & Liu, Gang & Zhou, Ruoyu, 2017. "Modeling of district load forecasting for distributed energy system," Applied Energy, Elsevier, vol. 204(C), pages 181-205.
    20. Nadia S. Ouedraogo, 2017. "Energy futures modelling for African countries: LEAP model application," WIDER Working Paper Series 056, World Institute for Development Economic Research (UNU-WIDER).
    21. Arévalo, Paul & Cano, Antonio & Jurado, Francisco, 2024. "Large-scale integration of renewable energies by 2050 through demand prediction with ANFIS, Ecuador case study," Energy, Elsevier, vol. 286(C).

    More about this item

    Keywords

    Energy efficiency Energy models Optimal energy savings Energy policy;

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:102031. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.