In his opening address Yusupha Crookes highlighted the EE potential and pointed out that “between 1973 and 1998 energy efficiency measures in the OECD reduced demand growth by some 49%. In 2004 the IEA estimated that there was still a global savings potential of some 58% of current energy production”. So what is it that sees energy efficiency advocates crying “the cheapest energy is that which we are wasting” while large sections of the market quietly ignore their more than reasonable pleas for change? Bob Dixon of Siemens Building Technologies lamented “from my own experience we have been discussing these issues and undertaking energy efficiency measures for more than 31 years so why isn’t this second nature?”

There were many issues put forward to explain the lack of penetration of energy savings as a fundamental element of energy supply; energy prices (inadequate market signals), perceived risks, availability of technologies, poor implementation, a lack of awareness and information on benefits, and limited skills both at an individual and ESCO level. Equally important, in markets where finance is looking for opportunities with low transaction costs, high returns and limited exposure, the risk / return profile of energy savings has limited attraction to many financial institutions.

This is not to say that the multilateral banks and a number of those in the local private banking sector are ignoring the potential of energy efficiency in addressing the rapid growth in energy demand (and improving the commercial viability of many of their clients) but the real support still seems to be that provided by the public sector. Lewis Milford of CESA outlined the success that individual states within the US are achieving in energy savings, explaining that over US$630 million is provided through ratepayer funded programmes in the northeastern states alone, the majority of which is disbursed through incentives and technical assistance. He argued that the state has an important role to play in developing markets such as that of EE. The market is immature, experience is limited, implementation needs political and regulatory support and will only succeed with significant public funding for many years to come. The growth of CESA across 14 states means that there will be some US$10 billion being directed into EE in the next ten years from such funds.

In the emerging economies the growth in energy demand is accelerating and it is here that energy efficiency should be an integral part of future energy supply strategies. As Martin Lowery of NRECA explained “there are many cases where utility losses are enormous. In Asia a utility acknowledged that it loses some 43% of its generation; in South America a figure of 51% has been reported”. While theses losses are a mix of physical and commercial events, the harsh reality is that up to half of the energy produced is wasted. Such challenges are being addressed by the multilateral agencies as highlighted by the Three Countries Programme focused on China, Brazil and India with support from the UN Foundation, UNEP and the World Bank. This study shares experiences from these very large markets in an attempt to identify the most effective project implementation models and financing approaches that can engage local financial intermediaries. Robert Taylor made it very clear however that “there must be a real willingness to accept markets are different – it is a case not so much of standardization but more customization to local needs. Take the experiences available but remain flexible in transposing these to other countries”.

The EEIF, attended by over 110 international experts on EE, provided an excellent forum for presentation and debate on the state of the global EE market, coming as it did alongside the wider debate on future energy needs at the CSD within the United Nations. There are solutions and reasonable progress is being made but clearly there is a continuing need for strong public sector support, perhaps something that many will find hard to accept in a global market where privatization and private sector finance are seen as the near term solutions to market developments.