As of: January 2009

General information – Energy Efficiency

An energy input is required in order to obtain an energy service, such as a warm home in winter or a flood-lit stadium at night. The same energy service can often be provided with different energy inputs. The lower the energy losses incurred in the generation, conversion, distribution and use of energy (carriers) for the energy service in question, the higher the energy efficiency being achieved.

Energy efficiency in energy generation can be increased, for example, through the use of higher-efficiency power stations or the combined generation of heat and power and, if necessary, cold. Here, a higher energy output can be achieved with the same input of fuels (energy carriers) such as coal, gas and oil.

There is also scope to use the final energy generated far more efficiently, e.g. by choosing more energy-efficient appliances, avoiding idling losses, installing energy-saving light bulbs and better thermal insulation, and with more efficient heating technology and speed-regulated circulating pumps. According to studies by the European Commission, better energy efficiency can result in yearly savings of between €200 and €1000 for an average household.

Why more energy efficiency?

Demand for energy is increasing worldwide. The situation on the energy markets is escalating and energy prices are soaring. Instability in many producer and transit countries is giving cause for concern. Fossil fuel burning is on the increase and is speeding up climate change.

Improving energy efficiency, on the other hand, has a dampening effect on energy prices, reduces energy import dependency, cuts emissions of climate-damaging carbon dioxide (CO2), increases security of supply and counteracts energy distribution conflicts. By comparison, expanding the supply of energy is the more expensive and complex option.

The national economies will steadily improve their energy efficiency. The German Government has therefore established the legal and economic parameters for more efficient energy use. As part of this process, it has substantially expanded the CO2 Building Renovation Programme since early 2006 – making around €1.4 billion per year available for the period 2006-2008, in the form of low-interest loans and grants and tax concessions. This quadrupled the programme's previous budgets. The Government's first economic stimulus programme of November 2008 adopted further funding of an additional 3 billion euro for 2009-2011.

The German Government is also aiming to double energy productivity by 2020 compared with the baseline year of 1990 – an ambitious goal. A key contribution must come from improvements in energy efficiency all along the energy chain – from the exploration, production, transport and use of fossil energy carriers to energy generation (conversion) and distribution and including the recovery of heat and power.

The German Government's Integrated Energy and Climate Programme

The Energy and Climate Programme, adopted by the Federal Cabinet in August 2007 in Meseberg, comprises key elements for a comprehensive package of measures. The Federal Cabinet initiated implementation of these key points with the climate packages of December 2007 and June 2008.

The expansion of renewable energies in the power sector and improvements in energy efficiency in the buildings sector and electricity consumption play a vital role in reducing CO2 emissions.