possibilities such as electric vehicles (Hindsberger et al. and
Armstrong et al., Chapter 18 and Chapter 19, respectively, of
this volume). Most importantly there are demand-side options
including energy efficiency and controllable loads. These all
help deliver reduced demand growth, improve energy
security, and help reduce emissions.
Energy efficiency (EE) is particularly promising. For
example, IEA scenarios involving significant emissions
reductions by 2050 see EE playing the major role (with EE in
the electricity industry playing a particularly important role,
[18]). EE options include not only efficient equipment but
also smarter use of equipment, underlining the value of smart
grids. Controllable loads can contribute to EE but might
instead focus on moving the timing of peak demand, which
can involve tradeoffs where control for such objectives
actually reduces energy efficiency.
Distributed energy options do, however, present a profound
technical, economic, and social challenge to current industry
arrangements. Complex new technologies, such as PV, in new
locations within the electricity industry at new, small scales
require high levels of coordination in order to deliver secure
and reliable electricity flows. Smart grids, commonly owned
and operated by new industrial players, are an essential
element of this coordination of new distributed technologies.
Distributed options are often sited on end-user premises, and
some, such as cogeneration and controllable loads, require
close integration with the range of other activities that
end-users undertake. Most EE decisions are investment and
operational ones taken by end-users themselves, underlining
how the necessary decisions involve a whole new set of
stakeholders—the end-users themselves [20].
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