Energy Efficiency or 'Hidden Fuel'

The International Energy Agency has named energy efficiency as the most important 'common fuel' worldwide in its annual report, with some referring to it as 'hidden fuel.' The report indicates that this is the only energy source that all countries have in abundance. According to the report, adopting a strong energy efficiency policy is essential for achieving goals related to improving energy security and reducing carbon dioxide emissions as well as air pollution in the most cost-effective manner. In this context, many countries have concluded that the safest and cleanest power plants are those that are at the highest level of energy efficiency. While energy policies have traditionally been influenced by supply factors—how to produce more oil, gas, and electricity—policymakers are increasingly accepting the reality that the focus should be on demand and how to consume less energy. For example, over the past 15 years, vehicle usage has significantly increased due to economic growth and population expansion. If efficiency had not improved, energy demand in IEA member countries in 2015 would have been about 12% higher than what actually occurred. In China, annual energy savings due to higher efficiency are equivalent to the current supply of renewable energy. One reason why demand-focused policies are considered less important is that energy efficiency is not particularly attractive to politicians and often means higher short-term costs, which may reduce consumption even if it leads to lower costs in the long term. Today, one-third of global energy consumption is governed by mandatory standards and regulations, up from about 11% in 2000. Significant progress has been made in lighting, vehicles, heating, and to a lesser extent in household appliances, but since 70% of energy consumption is not under mandatory standards, there is still great potential for improvement. Implementing mandatory standards is a vital policy for improving energy efficiency in long-term programs, especially when low energy carrier prices hinder efforts to save energy. Internationally, China and the USA are leaders in this area, followed by Japan and the European Union. Although India, Brazil, and Middle Eastern countries have made significant progress since 2000, they still lag behind. In 2015, only 15% of energy consumption in the Middle East was governed by mandatory standards, which was half the global average. For oil and gas-producing countries in the Middle East, improving energy efficiency through reducing domestic consumption has helped increase their export potential. In 2015, global energy intensity improved by 1.8%, three times the annual average of the past three decades. In 2015, investment in energy efficiency increased by 6% to $221 billion, with growth in the building sector playing a key role. The increase in energy intensity in emerging economies like China was higher and is expected to continue. Regarding Iran, the Energy Efficiency Organization has announced that Iran's energy intensity index is 1.4 times the global standards, indicating the country's poor energy consumption status. Meanwhile, Farzad Kiasat, a member of the Energy Consumption Optimization Association, states that the trend of energy consumption will turn Iran into one of the world's energy importers by the year 1405 in the Iranian calendar. According to him, energy consumption in Iran is nearly equivalent to that of a country with ten times Iran's population, and this consumption doubles every four years.