Page 9 - Driving Force for Energy Demand
P. 9
ving Forces for Energy Demand 2010

The substantial difference of final energy use between urban and rural areas is
due to the fact that rural households use much more inefficient fuels, such as
fuel wood for cooking and kerosene for lighting. Hence, their requirement to
provide equivalent energy services than urban households is much higher. In
addition, as seen in 2-7, other factors such as electrification and the resulting TV,
washing machine, refrigerator, water heater, air conditioner etc ownership
increases rapidly. This is a transformation similar to that developed world has
already been through.

The commercial sector consists of businesses, institutions, and organizations that

provide services. The sector encompasses many different types of buildings and

a wide range of activities and energy-related services. Examples of commercial

sector facilities include schools, stores, correctional institutions, restaurants,

hotels, hospitals, museums, office buildings, banks, and sports arenas. Most

commercial energy use occurs in buildings or structures, supplying services such

as space heating, water heating, lighting, cooking, and cooling. Energy consumed

for services not associated with buildings, such as for traffic lights and city water

and sewer services, is also categorized as commercial energy use. Economic

trends and population growth drive commercial sector activity and the resulting

energy use (EIA, 2009). The need for services (health, education, financial, and

government) increases as populations increase. Economic growth also

determines the degree to which additional activities are offered and utilized in

the commercial sector. Higher levels of economic activity and disposable income

lead to increased demand for hotels and restaurants to meet business and

leisure requirements; for office and retail space to house and service new and

expanding businesses; and for cultural and leisure space such as theatres,

galleries, and arenas. In the commercial sector, as in the residential sector,

energy use per capita in the non-OECD countries is much lower than in the OECD

countries (EIA, 2009). Slow population growth in most of the OECD nations

contributes to slower anticipated rates of increase in commercial energy

demand. In addition, continued efficiency improvements moderate the growth

of energy demand over time, as energy-using equipment is replaced with newer,

more efficient stock. Conversely, continued economic growth is expected to

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