Energy Efficiency Indicators: Fundamentals on Statistics

Lesson 1: Key Concepts

Defining Energy Efficiency
Welcome to Lesson 1 of Module 1! This lesson introduces some key terms
and concepts we will be using throughout this course, such as energy
efficiency indicators or energy intensity. Let's begin!

Something is more energy efficient if it delivers more services for the

same energy input, or the same services for less energy input. Choose
the more energy efficient items from the list below! 

In this course we will focus on two types of indicators: (1) ratios, e.g. energy
consumption per tonne of cement; (2) absolute values, e.g. the overall energy
consumption of the residential sector. Even though the second type of indicators
does not provide an indication of energy efficiency, it can serve as a basis for
comparison across countries or sectors. Hover over the interactive formula below to
see what each element represents.

Energy Efficiency Indicators= Energy Consumption/ Activity

Energy Intensity vs. Energy Efficiency

 Click to addBookmark this page
Energy intensity is defined as the energy necessary for the generation of a
unit of GDP. It is easily generated so many countries use it as a proxy for
energy efficiency.

However, this can generate misleading results, as a decrease in energy

intensity does not necessarily imply energy efficiency improvement. 

Many non-energy-related factors can influence energy intensity, for

example the structure of the economy and types of industry (e.g. presence
of large energy-consuming industries), climate (higher demand for heating
or cooling) and size (higher demand from the transport sector) of the
country, etc.

Energy Conservation: Adapting a behaviour that results in the use of less

energy.

 So why was it important to clarify those basics. Collecting data and developing
indicators should not be seen as an end in itself.

In statistics there is a generale principle: do not collect data for the sake of collecting
data; collect only what is necessary. Indeed collecting any statistics has a cost.

However, not having the proper data could lead to wrong policy decisions and actions,
and, as a consequence, to an even higher cost.

Many economic, geographic, socio-cultural factors determine the potential for energy
efficiency. Statisticians and policy makers alike need to take those factors into account
when collecting data, developing indicators or designing policies for energy efficiency.
There is no one-size-fits all solution for energy efficiency. Data and indicators have to
be usable within a national context in order for energy measures to be efficient in
achieving policy objectives.
That said, IEA reccommends a common methodology that can be flexibly addopted to
various country context. At the same time, the common methodology allows for
benchmarking and comparison between countries and for a replication of best practices.
Most countries already measure total energy consumption of their economies, and
compile energy balances each year. Energy balances contains the data on the energy
commodities supply and demand within a country. The balance generally looks like a
matrix that shows how the energy supplied is consumed in the various economic
sectors, like industry, or transport or the residential sector. However, the energy
balances do not show detailed energy end-uses within economic sectors. For example,
how much energy is consumed for heating purposes in residential building or which
types of vehicles are more efficient

Therefore, the level of data dissaggregation in an energy balance is not sufficient to

monitor or access energy efficiency.

An additional data should be collected. To advance energy efficiency, it is important to

disentangle the impact of various factors on the total energy consumption within the
economy and within a sector.

In the following lesson, we will explore the IEA indicators pyramid. It is a conceptual
model that essentially organized energy efficiency indicators into a hierarchical
structure -from most detailed, at the bottom of the pyramid, to the least detailed at the
top.
Lesson 2: IEA Indicators Framework

Sectoral Breakdown

Welcome to lesson 2 of Module 1.  This lesson explains the logic of

organizing indicators in a logical framework, relative to their level of
disaggregation. 
 
A general principle in statistics is that wherever possible, we should only
collect necessary data. Collecting any statistics has a cost. Therefore, it is
important to identify and use information that already exists. One of the
possible starting points is the breakdown of final energy consumption by
sector, which can usually be extracted from the energy balance of a country.
 
Look at the pie charts below. Which are the largest energy consuming sectors? Navigate the
interactive pie chart for more details.
Sub-sectoral Breakdown

The more detailed the data available, the better. An existing energy balance
may include disaggregated data at sub-sectoral level, which can further help
refine priorities. Look at the examples of energy use at a sub-sectoral level
in the industry and transport sectors of countries C and D. Navigate the
interactive pie chart to learn more.

Breakdown of industry and transport energy consumption by sub-

sector for two hypothetical countries.
Disaggregation into Sub-sectors and End Uses
IEA uses a commonly agreed methodology to break down energy consumption into sectors
and sub-sectors. Throughout the next modules of the course we will look at each of those sectors
and examine the energy efficiency indicators that can be constructed to assess the efficiency of
various sub-sectors and end uses (e.g. energy used for space cooling in the service sector). Click
on each sector below for more information
The IEA Indicators Pyramid
Based on data availability, consumption within a sub-sector or an end use
could be disaggregated even further. Indicators can be presented following a
"pyramid approach", from the most aggregated level down to the most
disaggregated one. This hierarchy is important because it helps explain how
changes at the lowest level relate to aggregate changes in energy
consumption. Navigate the interactive pyramid below to learn more.
Prioritisation of Indicators According to Policy Objectives

There are two key principles in statistics: 1. Only collect data that are
needed; 2. Use data that are already available, wherever possible.
Statisticians should prioritise indicators vis-a-vis policy goals and objectives,
as well as taking into account what are the indicators for which data are
readily available. Have a look at the interactive figure below which explains
the process of prioritisation of energy efficiency indicators.

* The three letter codes represent different energy efficiency indicators. The

logic behind the letter codes will be explained in module 2 of this course. 
Applying the IEA Indicators Pyramid on Level of End Uses
and Sub-sectors
 

The 3-level indicator’s pyramid developed by the IEA can be applied to

analyse overall energy consumption within the economy, where level 1
represents the total energy consumption, and level 3 constitutes the total
energy consumed in sub-sectors or ends uses.

However, disaggregate indicators are key for effective energy efficiency

policies. To ensure informed and effective policies, the total consumption per
end use or within a sub-sector can be further broken down into level 2 and
level 3 indicators, as illustrated in the interactive figure. 
Examples of Indicators
 

Let's look at energy use for lighting in the residential sector. How would you
position the following indicators on the pyramid according to their level of
disaggregation: level 1 least disaggregated, level 3 most disaggregated?
Drag and drop accordingly:
Lesson 3: Data Collection Methods

Welcome to lesson 3 of Module 1, which focuses on the key methods for

collecting data necessary for the construction of energy efficiency indicators.

Once the set of priority sectors, sub-sector and end uses are defined, data
on energy consumption and activity levels need to be identified and
collected. There are four approaches to data collection, as illustrated in the
figure. Hover over each one to find out more. Data collection methodologies
have various strengths and weaknesses, and countries can use them in
combination to build complete sets of indicators.
Administrative Sources
 Click to addBookmark this page

Government agencies generally collect information that could be useful to

develop energy efficiency indicators, such as population, GDP, industry value
added, etc. While for instance industry associations, distribution
companies, car manufacturers gather relevant data such as: physical
production of certain commodities, penetration of specific equipment, or
number of new vehicles sold every year. Analysing already available data
prevents duplication of efforts and helps identify data gaps.

Have a look below and try to identify the advantages and disadvantages of
using administrative data sources. Drag and drop accordingly:
Surveying
 

A survey is a method for collecting data through a set of questions from a sample of the
population that needs to be studied, for example households, vehicle owners, members
of an industry association, etc.  The data can be collected by telephone or in-person
interviews, questionnaires sent by mail or internet, etc. The larger the scope of the
survey, the more reliable the data. For example, a nationwide “census” covers the
whole population, but it is generally difficult to implement. The graph below illustrates
the trade-offs in designing a sample-based survey. Surveys are a relatively easy and
flexible method for data collection. However, collecting large samples or designing a
good questionnaire can take a considerable amount of time. Other potential downsides
of surveys relate to incomplete responses, biases, sampling errors, and human capacity
required. Surveys are generally performed regularly over time to ensure continuity of the
outcome.

The diagram below illustrates the four variables impacting surveys. A larger survey will
be more accurate and detailed. Consequently it will also be more timely and costly
(green circle).

Measuring
 Click to addBookmark this page

Measurements can shed light on how efficient appliances are or how

consumption patterns vary over time. Measurements are a valuable
component for the building of comprehensive energy
consumption models. This type of knowledge helps decision makers plan
well-founded actions to reduce energy consumption.
The video below depicts the initiative of British Gas to move from traditional
to smart gas and electricity meters in the UK, which track accurate, real-
time, disaggregated data on the energy consumption in each household.

Please check your network firewall if the video does not load automatically.

https://youtu.be/k2NQfrrlfbY

Modelling
Models based on historical time series for specific end uses can be used to build energy
projections and scenarios. Based on input data and on a number of assumptions, a
model produces a set of output data, such as energy consumption or greenhouse gas
emissions at the sectoral or sub-sectoral level. Modelling often builds on and
complements results from other data collection methods. The key steps of modelling
work include: 1) establishing a framework, 2) setting model assumptions, 3) inputting
data, 4) running the model, 5) validating outcomes.

The graph below represents a simplified model that examines energy

consumption in the transport sector. Place the elements of the model into
logical order: 1) data sources 2) model creation and validation 3) model
output. Drag and drop accordingly.
1.
analyst for IEA China desk. You are now

2. familiar with the four main methods for

3. data collection. Collecting and analyzing

4. energy consumption and activity data is

5. the first step towards developing energy

6. efficiency indicators. As we have seen

7. there are various approaches to data

8. collection and they all come with the

9. pros and cons. Some data are easier to

10. collect than others; this is true for

11. both energy consumption and activity

12. data. It is important to choose an

13. optimal strategy for data collection

14. given the specific situation of your

15. country. Examples of practices from other

16. countries, especially if they have

17. similar socio, economic and geographic

18. characteristics, could also help you

19. identify data requirements and possible

20. approaches to data collection. Let's look

21. at a practice from Spain. To determine

22. energy intensity of the residential

23. sector in its various end uses, Spain

24. collects administrative data on ownership

25. of apartments and houses, construction of

26. new residential buildings, ownership and

27. sales of appliances, data on degree days

28. and so on. In another practice, Italy

29. decided to go further disaggregate data

30. for the residential sector and

31. understand the characteristic of

32. dwellings and the habits of people that

33. inhabit them. Therefore, Italy is using a

34. survey to collect data on energy bills

35. per household, energy related renovations,

36. renewable require equipments, behavioral

37. issues and practices such as washing

38. temperatures efficiency classes of

39. appliances and much more. The UK and many

40. other countries are implementing smart

41. electricity metters on a household level

42. that collect data on energy consumption

43. in real time and make it available to

44. both consumers and the distributing

45. company. At any rate a key thing to

46. remember is to

47. make a broad review of existing data

48. before launching any new data collection.

49. The review should cover both public and

50. non-governmental organizations such as

51. Ministry of Energy Statistics Office,

52. Ministry of Transport, Chamber of

53. Commerce, Industry Association etc. There

54. is indeed in every country a huge amount

55. of data that energy statisticians are

56. unaware of. When identified it could

57. constitute a good basis to develop

58. energy efficiency indicators and could

59. reduce the costs of an energy program. The

60. various data collection methods that are

61. an administrative sources - serveying

62. measuring and modelling - can be combined

63. to build complete sets of indicators. For

64. example, an administrative source can

65. become an input data for modeling survey

66. consumption by end use. In the next four

67. sectorial modules of this course we

68. will take an advanced look into the

69. sector specific approaches for data

70. collection and indicators development

71. for the residential, services, industry

72. and transport sectors. We will also

73. review some of the best country examples

74. of how to build effective energy

75. efficiency indicators. Don't forget to

76. share with us your experiences, questions

77. and ideas via the discussion forum and

78. complete the assessment test for module