Introduction Energy Consumption

Introduction Energy Consumption

The 20th century was marked by rapid growth and an increase in prosperity throughout the world.1 But the past pales in comparison to the pace at which the 21st century is advancing.2 Populations are increasing, economies are developing, and the world is consuming energy faster than ever before.3
By 2020, some experts predict the world's energy consumption will be 40% higher than it is today.4 Efficiency, improvements, and conservation are part of the solution, but will not, in themselves, meet the need for more energy.5

Where is the demand coming from?

The biggest leap in energy consumption will come from emerging economies, like China and India, where populations are expected to grow by 25% over the next two decades, and economic output and standards of living will rise dramatically.6 Energy demand in China and India alone is expected to double by 2025.7 But the issue isn't limited to developing countries.
Rising energy demand in developed countries will add to the pressure on supply. The US, for example, is home to 4% of the world's population but is consuming 25% of the world's energy.8 As wealthier countries in general continue to prosper, their energy needs will continue to grow accordingly.9

Why is per capita demand for energy increasing?

Increased energy use is a natural consequence of economic growth and improving living standards in the developing world. Where people once burned wood for heating and cooking, oil furnaces, stoves, and refrigerators are now more available and affordable. In many Asian cities, bicycles are being replaced by automobiles, increasing mobility and convenience (as well as congestion and pollution), and providing more options for employment and leisure.10 At the same time, soaring business activity and industrial output are also boosting demand.
In the developed world, houses are getting bigger, and are increasingly "wired" with computer and audio and video equipment. And people are driving their cars—which in many cases are no more fuel efficient than cars of 20 years ago11—more miles each year.12

What's the challenge?

The challenge is to provide the clean, affordable energy necessary for rapid economic growth and rising living standards in emerging economies, while also fulfilling demand in the world's more developed economies. This will require a combination of increasing conservation, expanding and diversifying our energy supply, and improving energy efficiency.

What's being done about it?

The increase in demand is being partially offset by conservation and improvements in energy efficiency by industry and governments.13
The concern over climate change and the adoption of the Kyoto Protocol by most industrial nations14 has focused businesses of all sizes to reduce their electricity consumption, simultaneously reducing their consumption of fossil fuels while reducing their emissions of greenhouse gases.15
Cogeneration, which is nearly twice as efficient as traditional methods of producing steam and power separately, has created energy efficiencies in the manufacturing sector.16
In the transportation sector, hybrid vehicles are proving to be affordable and realistic options for consumers,17 while energy-efficient public transportation is providing an alternative to private cars.18
And the search continues for new sources of energy, from both fossil fuels and alternatives.

What's next?

Energy efficiency and conservation will continue to play an important role in slowing the growth in our energy demand.19
In addition, continued improvements in technology, light-weighting of materials, use of alternative materials (such as non-petroleum-based plastic), and personal and industrial recycling must also be encouraged.20
It is in the interests of all stakeholders—energy producers, industrial users, governments and consumers—to make the energy sources we have go as far as they can go.