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ving Forces for Energy Demand 2010

scale, the intensity of energy usage falls and growth slows, reducing the slope of
the curve (Romani, Soldatos, & Benthem, 2006).

Energy usage in relation to economic growth can be broadly divided into four
categories. Residential/commercial usage, which increases as people move
towards cleaner energies for cooking, cleaning etc and further amenities like
refrigerators, TVs etc. Transportation, which increases as societies become
increasingly motorized. Industrial energy, related to production of goods and
power generation needed to produce the electricity to power everything. The
relative size of the four energy drivers is shown in Graph 2-5 in addition to the
expected effect of increased energy efficiency on expected future growth.

2-5 Global Energy Demand Drivers

(ExxonMobil, 2009)

2.1.1 Residential and Commercial Demand

Worldwide, households consume about a third of all end-use energy. In

countries with a temperate climate, more than half of this energy is typically

used for heating (IEA, 2004). However, residential energy provides numerous

services associated with household living, including space cooling, water heating,

cooking, refrigeration, lighting, and the powering of a wide variety of other

appliances. Energy demand is shaped by a variety of factors, including location

(in both geographic location and urban vs. rural) and climate. In developing

countries such as India, it is important to divide households into rural and urban

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