7.

1 Introduction
The energy supply sector is the largest contributor to global greenhouse gas
(GHG) emissions. In 2010, approximately 35% of total anthropogenic GHG
emissions were attributed to this sector. Despite the United Nations Framework
Convention on Climate Change (UNFCCC) and the Kyoto Protocol, annual GHG
emissions growth from the global energy supply sector accelerated from 1.7%
per year in 19912000 to 3.1% in 20012010. Rapid economic growth and an
increase of the share of coal in the global fuel mix were the main contributors to
this trend.
7.2 Energy production, conversion, transmission and distribution
The energy supply sector converts over 75% of total primary energy supply
(TPES) into other forms, namely, electricity, heat, refined oil products, coke,
enriched coal, and natural gas. Industry (including nonenergy use) consumes
84% of final use of coal and peat, 26% of petroleum products, 47% of natural
gas, 40% of electricity, and 43% of heat. Transportation consumes 62% of liquid
fuels final use. The building sector is responsible for 46% of final natural gas
consumption, 76% of combustible renewables and waste, 52% of electricity use,
and 51% of heat. Forces driving final energyconsumption evolution in all these
sectors have a significant impact on the evolution of energy supply systems,
both in scale and structure. The energy supply sector is itself the largest energy
user. Energy losses assessed as the difference between the energy inputs to and
outputs from this sector account for 29.3% of TPES. The TPES is not only a
function of end users demand for higherquality energy carriers, but also the
relatively low average global efficiency of energy conversion, transmission, and
distribution processes (only 37% efficiency for fossil fuel power and just 83% for
fossil fuel district heat generation). However, low efficiencies and large own
energy use of the energy sector result in high indirect multiplication effects of
energy savings from end users.
One argument (Bashmakov (2009)) is that in estimating indirect energy
efficiency effects, transformation should be done not only for electricity, for
which it is regularly performed, but also for district heating as well as for any
activity in the energy supply sector, and even for fuels transportation. Based on
this argument, global energy savings multiplication factors are much higher if
assessed comprehensively and are equal to 1.07 for coal and petroleum
products, 4.7 for electricity, and 2.7 for heat.