Energy efficiency

The demand for energy has been on the increase across the world, with increasing use of fossil fuels exacerbating the climate change. The raw-material reserves we have remaining are dwindling, with energy costs climbing dramatically. Political uncertainty in many countries that extract the reserves or provide transit routes is a cause for worry, and redoubled efforts towards saving energy will make an important contribution to securing our energy supply and climate-protection policy. Germany's Federal Government has addressed the issue of increased worldwide energy efficiency for that very reason, advancing the topic to a core component in its energy policy. Increasing energy efficiency reduces dependence from imported fuel, lowers energy prices, reduces carbon dioxide greenhouse gas emissions, contributes to securing the supply chain and counteracts conflicts arising from energy distribution. This resulted in extending the national building clean-up campaign to reduce CO2 emissions that began in early 2006, releasing around €1.4 million annually in low-interest loans, subsidies and tax incentives from 2006 to 2009 - four times the funds allocated in the previous years. Apart from that, the Federal Cabinet passed a motion in favour of a complete climate protection action package consisting of fourteen laws and regulations to serve as an integrated energy and climate protection programme in Meseberg in August, 2007.
 
Germany has taken a leading position in energy efficiency amongst the international competition. According to the International Energy Agency, Germany and Japan are the two leaders in maintaining a wide-ranging economy at relatively low energy consumption. Germany's broad expertise in energy efficiency has made this possible; indeed, Germany has actually decreased its consumption of primary energy resources in absolute terms since 1990, despite its increasing national product. Even so, ensuring a sustainable energy supply in the future will require a complete action strategy in favour of sustainable and efficient energy utilisation with final consumers in companies, public sector, trade and services, and especially amongst private consumers, which is why the Federal Government has set a course to double the country's economic energy productivity by 2020 compared to 1990. This means consuming half the energy per unit of GNP in 2020 compared to the 1990 figure, requiring increases in energy efficiency along the entire energy supply chain to affect the following areas:

1. Generation and distribution of energy:

Combined heat and power (CHP) plants, possibly including cooling, and high-yield power plants are an example of how energy efficiency can be substantially increased.  CHP generation plays a particularly important role in protecting the climate due to its high level of energy efficiency.

2. Heat and power consumption:

Energy to final consumers can be used in a far more efficient manner, such as by using energy-efficient appliances, avoiding losses in no-load situations, using energy-saving lighting, improving heat insulation, and using more efficient heating technologies and circulation pumps with speed regulation. Energy efficiency and energy saving may not be the same, but the result is - namely, lower energy consumption. Studies ordered by the European Commission have revealed that the average household can save anything between 500 and 1,000 Euros by using energy more efficiently, with the most potential to be found in heating, hot water and larger household appliances. Around 90% of energy costs in German households go on hot water and heating - leaving fuel costs for cars aside. Of that, heating takes the lion's share at three-quarters, with most of the heat dissipating through walls, windows, roofs, doors and floors. Old boilers as well as oversized, badly adjusted and inefficient circulation pumps also devour electrical power and heat. Energy consumption in some older buildings can be reduced by up to ninety percent, with the average lying at around a half. Industry and commerce also have a variety of possibilities for using energy more efficiently and reducing their energy consumption; according to Germany's Federal Ministry Economics and Technology, twenty to forty percent of industrial energy consumption can be saved by 2020 at economically favourable conditions. Electrical motors alone cause around two-thirds of power consumption in industry, according to the ministry; electronic speed regulation would reduce consumption by fifteen percent - which corresponds to more than four gigawatts, or the output of three to four major power plants.