Efficient energy usage helps households save up to 30% on costs
The improvements in energy efficiency were accomplished using existing policies which could be a drawback for the future of energy.
A technician of the French multinational electric utility company Engie inspect the electrical panel of a windmill on October 3, 2017 in Radenac, western France. (AFP)
Improvements in energy efficiency is helping households worldwide save up to 30 percent of their annual energy budget last year, the International Energy Agency (IEA) said in a report on Thursday.
Savings of between 10 and 30 percent were made around the world as global energy intensity, the amount of energy used per gross domestic product, fell by 1.8 percent, the IEA said.
In Germany, consumers saved about $580 on energy for their cars and homes in 2016 thanks to more efficient usage, the IEA said.
In China, a household would have spent 25 percent more on energy without the improvements.
New efficiency policies needed
The Paris-based organisation, however, warned the acceleration in energy efficiencies in the production of goods and services over the past decade was at risk due to current policy trends.
"There was a noticeable slowdown in the implementation of new policies in 2016, and this trend appears to be continuing in 2017," IEA executive director Fatih Birol said in a statement.
"Countries should focus on attacking the more than 68 percent of global energy use that is not covered by efficiency codes or standards," Birol said.
The current level of efficiency gains will be wiped out quickly if the pace of policy delivery does not accelerate, the IEA said.
Global investment in energy efficiency increased by 9 percent in 2016 to $231 billion, with China showing the strongest growth, while Europe was responsible for the largest share in efficiency investments.
Although efficiency improved in the industrial sector, there is still room for policy advances in the building and transportation sectors, the IEA said.
Global sales of more energy efficient electric vehicles soared 40 percent in 2016, as more models reached the market and the performance of the vehicles improved.
However, the IEA said only four countries regulate the efficiency of trucks, which represent 43 percent of total oil consumption for road transport, and just 16 percent of energy used in trucks worldwide is covered by efficiency policies.
In the housing sector, demand for air conditioning is growing fastest in countries with the weakest regulation on the sector, while globally policies have focused mainly on building structures rather than heating and cooling equipment, it said.
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