Efficiency Improvements

In the short term, demand side management (DSM) and improving end-use efficiency by encouraging and enforcing energy efficiency standards and influencing consumer choice through labeling programs are a critical first step in reducing energy demand and GHG emissions. Demand management is especially important, as the penetration of electricity-based consumer goods and electricity demand is likely to increase substantially with increased economic growth. China has taken several steps in this direction, and energy efficiency has gained prominent role in policy making in past years. The Chinese energy plan aims to improve energy intensity to reach at "international levels" [9]. The Indian Bureau of Energy Efficiency (BEE) has taken key steps in providing information to consumers through labeling programs and the agency might also introduce market mechanisms for providing incentives to improve industrial efficiency. Mexico has set up a national commission to conserve energy, known as Comisión Nacional para el Ahorro de Energía (CONAE). CONAE plays the key role in setting up appliance standards for energy efficiency, and promoting technologies such as combined heat and power to improve industrial energy efficiency, in Mexico. While these steps are a good start, consistent and greater efforts in DSM is necessary.

In addition, reduction in transmission and distribution (T&D) losses is another key challenge, especially in India where T&D losses account for a significant loss of revenue and energy. Reducing India's losses to a more manageable (though still high) 10% will release power equivalent to about 10,000-12,000 MW of capacity [43]. Such short-to-medium term measures can be very effective in improving efficiency.

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