For years, governments, companies and the scientific community have been seeking new energy solutions to power economic growth and meet society's needs.
The reality we face is that--based on what we know today--unconventional fuels such as shale oil/gas will not necessarily address all our energy challenges; it is clear that the most promising "fuel of the future" has to be "energy efficiency".
If we are to serve the growing needs of economies and communities globally, and to create sustainable models for future development, energy efficiency needs to be a policy commitment, an industry endeavour, a technology imperative and a scientific priority.
Above all, it must be a shared responsibility.
In the late 1970s, physicist Amory Lovins established the notion of "negawatts"--the idea of meeting energy needs by improving efficiency rather than increasing energy production. Today, there is no place more urgent to generate this kind of wattage than in Asia.
According to the International Energy Agency, China, India and countries in Southeast Asia will constitute more than half of global energy demand growth by 2035. Given the dwindling production of domestic oil and gas in most Asian countries, this poses challenges on how to ensure a stable energy supply at reasonable prices.
In other words, spiking energy costs, growing national competition for energy supplies, environmental issues and the increased stress on an ageing energy infrastructure are behind the drive towards energy efficiency. And while there are significant barriers to success, a number of success stories from around the world as well as Asia can give us cause for some optimism.
Switzerland has come up with the idea of the "2,000-Watt Society" to reduce per-capita energy use--from the current level of 5,000 watts per year to no more than 2,000 watts per year by 2050. The ambitious challenge is to do so without lowering living standards.
China has been focusing on developing eco-friendly cities through the use of smart urban planning, clean technologies and measures aimed at low-energy intensity and low-carbon emissions. China and Singapore are collaborating on the Tianjin Eco-City--a good example of shared expertise.
Singapore itself, as a resource-limited, small city-state, can do more with less and adopt energy efficiency measures more prominently to drive a sustainable energy future. Its objective is to achieve, by 2030, a 35 percent reduction in economy-wide energy intensity (per dollar GDP) from 2005 levels. Its new Energy Conservation Act, which comes into effect next year, is critical to the initiative. The Act reflects the kind of whole-of-government effort often required to address sector-specific barriers, from access to capital, to institutional and regulatory support, and the development of skills.
Denmark's "Energy Saving Obligation for Utilities", introduced in 2006, requires grid companies to deliver an annual savings of 6.1 PetaJoules (PJ) or about 1.5 percent of total energy consumption in the country. There is no incentive for grid operators that meet the target--yet the scheme has been successful, contributing to more than 50 percent of the country's energy savings.
In Japan, we have had energy efficiency policies of one kind or another in place for more than 60 years. Since the "oil shocks" of 1973 and 1979, Japan has improved energy efficiency by 30 percent--through both public- and private-sector initiatives--, giving the country the lowest primary energy consumption per GDP in the world.
It is a constant work in progress, and last year's Fukushima Daiichi nuclear incident was a poignant reminder that new challenges will always arise and new responses are always needed.
The March 2011 crisis highlighted and accelerated the need for initiatives such as better demand side management as a measure of electrical peak cutting, with smart meter and incentive pricing. Other initiatives included an increased focus on Smart Grid Technology; and improvements in home energy management systems (HEMS) and business energy management systems (BEMS) to address the energy challenges born of substantially increased residential and commercial consumption over recent decades.
An interesting but important by-product of the crisis was "setsuden"--a national movement--to encourage the Japanese public to reduce electricity usage to meet the shortfall in electricity supply after the shutdown of the nuclear plants.
During the summer electricity peak time, industries, offices and households switched off their lights and turned up their thermostats. Workers moved their shifts to early mornings and weekends, climbed stairs instead of taking lifts, and worked by the dim glow of computer screens and LED lamps. Families did their laundry less frequently, while department stores and subway stations would shut down the air-conditioning at selected periods daily.
Of course, how Japan responded stoically to extraordinary circumstances presents a good example to be followed. The reality, however, is that in the future these kind of measures may very well need to become the norm, in addition to new technological developments. Otherwise, societies will be paying only lip service to our energy and environmental issues.
Ultimately, success in achieving energy efficiency depends on the creation of win-win partnerships--be they within an industry sector, among like-minded citizens, or between governments.
We have been committed for some time to sharing experiences with developing economies. It is in all our interests to facilitate technology transfer of both software and hardware and crucial capacity building for policymakers and energy managers.
From the perspective of my organisation, the Institute of Energy Economics, Japan (IEEJ), some of our most notable bilateral initiatives have been with Russia, India and China counterparts--because, one way or another, these countries will have critical roles to play in our shared energy future.
The China-Japan Ministerial Forum on Energy Efficiency and Environment has been a crucial annual cooperation platform since 2006. Since 2007, the IEEJ has worked with the Energy Research Institute under the National Development & Reform Commission on comparative analysis of Chinese and Japanese energy efficiency policies and programmes. We have shared our experiences with energy management systems to give China insights and perspective helpful to its energy efficiency policymaking.
The India-Japan Ministerial Energy Dialogue has also been a crucial annual cooperation platform since 2007. The IEEJ has worked with India's Energy and Resources Institute to analyse energy efficiency policies and energy usage in the industrial sector and consider the policy options to overcome barriers to energy efficiency implementation.
It important to focus on this kind of co-operation because every country needs a trained workforce to implement and maintain energy efficiency measures. International co-operation must facilitate the sharing of best practices and expertise.
Few would argue against the need for energy efficiency. And yet, in many cases, there remains a disconnect between acknowledging these benefits and actually making the investments--and, sometimes, sacrifices--that are required.
It is this realisation and acceptance--and the urgent action and international cooperation they demand--which are our most pressing challenge.
By: Masakazu Toyoda, Institute of Energy Economics, Japan (IEEJ)