Intertwining renewable energy and energy efficiency : from distinctive policies to combined strategies

Renewable energy (RE) and energy effi ciency (EE) are “twin pillars of sustainable energy” (Prindle, Eldridge et al. 2007). However, oft en policies do not foster EE and RE synergetically, but rather place them in a competitive position. An important example is the building sector. Many building codes worldwide, for instance the German “Energieeinsparverordnung” (Energy Savings Decree) allow for the use of RE heating to compensate, to a certain degree, for additional heat insulation. Th is competition between EE and RE not only occurs on the level of political instruments, but also on a technical and economic level. For instance, in extremely effi cient “passive houses”, the use of renewable district heating becomes technologically and economically more diffi cult. In addition, not only effi ciency and renewables, but the effi ciency of renewable energy systems are of relevance. Within a study funded by the German Ministry of the Environment, the synergies and competitions between RE and EE technologies and corresponding policies were investigated. Many of the results of this study were implemented directly in German legislation: e. g. the “effi ciency bonus” and the bonus for very effi cient circulation pumps in the market incentive program, minimum effi ciency requirements and CHP incentives for RE systems in biomass or geothermal cogeneration plants in the Renewable Energy Act, and a new promotion scheme for municipalities for the implementation of combined EE/ EF projects. Th is paper presents the “interlocked” EE/RE approach, selected models and calculations carried out and some policy outcomes and their preliminary impact on the energy system. Introduction Renewable energy (RE) and energy effi ciency (EE) are “twin pillars of sustainable energy” (Prindle, Eldridge et al. 2007). Scenario analyses conducted for Germany and Europe have shown that the abandonment of nuclear power and reaching ambitious climate protection goals can be simultaneously achieved only if parallel eff orts to increasingly use Renewable Energy (RE), promote Energy Effi ciency (EE) and save energy are made. While ambitious climate protection scenarios normally assume that energy effi ciency will make higher or at least the same contributions to climate and resource protection as renewable energy in the course of the this century, renewable energy can be more readily made available especially as regards electrical energy due to the attractive RE policy instruments (especially feed-in tariff s). Interlocking of renewable energy and energy effi ciency takes place through the simple fact that the RE targets – consisting of a numerator (RE generation) and a denominator (the energy consumption) can be achieved both through a dynamic expansion of renewable power plant capacities and their utilization, but also by reducing consumption. Article 3 of the European RE Directive also stipulates that “in order to achieve more easily these [RE] targets laid down in this article, each Member State shall promote and encourage energy effi ciency and energy saving.” (EU 2008)