OFID on Energy Poverty
With global energy demand projected to increase by some 40 percent by 2030 (OPEC World Oil Outlook 2009, Reference Case), the importance of energy efficiency (EE) in ensuring sustainable economic development cannot be overemphasized. An Expert Report of the United Nations Foundation indicates that in the period 1990-2006 energy efficiency – as opposed to new energy supplies – met 52 percent of new energy service demand in the world (see graph below). EE encompasses all the changes required for a reduction in the energy used for a given energy service. It is not only the least expensive energy source, but also contributes to environmental protection. EE can reduce energy intensity (primary energy demand per unit of real GDP) and stimulate growth and competitiveness.Most governments today consider energy efficiency a priority. Acute energy shortages in many developingcountries, where supply cannot cope with rapidly growing demand, highlight the need for energy efficiency in developing countries as a component of the energy mix for achieving sustainable economic development.