Energy conservation and efficiency

There is a saying that the energy conserved is better and cheaper than the energy produced or purchased. It is truer today than earlier times due to rising energy prices, supply uncertainties and climate effects. In the West, the movement for energy conservation, efficiency, self-reliance and renewable energy started in the backdrop of the 1973 oil crisis. Since then remarkable changes have taken place in these areas. Energy intensity (energy elasticity of GDP) used to be more than one, which means that to increase GDP by 1%, it required 1-1.5% increase in energy supply or consumption. Today, in most countries, this index is 0.5 and in some economies, it is even negative – that is the growth rate of energy conservation and efficiency is faster than the growth rate of economy. This is not true for developing countries like Pakistan due to a variety of factors such as poverty, low education and technology. The sensitivity, however, both among public and government policies, is increasing. A new energy efficiency and conservation policy has been announced, as we shall discuss in the following. Energy is used in all parts of human life – social and economic. A wide variety of sectors, users, producers and traders are involved.