Improving energy efficiency and establishing effective energy consumption management has a range of benefits for households, businesses, institutions, the national economy and the environment.
- For households, businesses and public organisations:
- Monetary savings associated with less electricity consumption.
- Monetary savings associated with less fuel consumption.
- For the national economy:
- More efficient production in industry, agriculture and the services sector.
- Fewer energy imports leading to savings in foreign currency reserves.
- Less conventional generating capacity needed.
- Increasing energy security and financial independence.
- For the environment:
- Reduction of greenhouse gas emissions.
- Less pollution from conventional power generation and associated activities.
Positively impacted aspects as a result of improved energy efficiency.
Source: IEA (2014) – Capturing the multiple benefits of energy efficiency; OECD/IEA, 2014
Improving energy efficiency makes a renewables-based energy system more feasible. As less energy is required, a lower power generating capacity needs to be installed to be able to provide the same level of energy services. A greater part of this capacity can then be covered by renewables such as solar.