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From FY 2006 to 2007, DOE requested increased funding for research in renewables (Advanced Solar Initiative and biofuels), hydrogen, fuel cells and fission, whereas requests for efficiency, fossil fuels and electricity transmission and distribution research decreased. Geothermal, hydropower, petroleum and natural gas RD&D were not part of the fiscal year 2007 request. Attempts to focus the 53 public research effort on areas which are in line with the targets and goals that have been set are highly commendable, but care should be taken not to reduce or completely eliminate efforts in promising areas just because new initiatives are being developed.

8. Intensity change is measured as decline in energy use per tonne-mile, weighted by mode of transport. This has occurred even though energy use for freight transport went up since the 53% increase is adjusted for a 23% increase in energy use due to shifts from more efficient modes (water and rail) to less efficient modes (truck and air). Source: Government Submission, EIA Electric Power Annual 2007. 2% CO2 emissions kg/MWh Sources: EIA Electric Power Annual 2007; IEA calculations. TRANSFORMATION SECTOR Overall efficiency in electricity generation, using net generation and CO2 emissions as proxy indicators, has shown almost no improvement between 1995 and 2004 (see Tables 7 and 8).

Electricity 0 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 1 000 Mtoe Heat* Transport Sector 800 Oil Electricity* 600 Gas 400 200 0 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 * negligible. Sources: Energy Balances of OECD Countries, IEA/OECD Paris, 2007 and country submission. 58 Table 5 Energy Intensity Developments in Selected IEA Member and Non-Member Countries in 1995 and 2005 (in BTU per year-2000 dollars using PPP) Change Country Difference to best 1995 2005 2005/1995 1995 2005 Russia 20 339 14 935 -27% 204% 189% Korea, South 13 210 12 471 -6% 97% 141% United States 11 352 9 113 -20% 70% 76% Australia 9 553 9 045 -5% 43% 75% China 9 763 7 906 -19% 46% 53% France 7 816 7 243 -7% 17% 40% Germany 7 891 7 021 -11% 18% 36% Japan 6 744 6 539 -3% 1% 26% United Kingdom 7 540 6 048 -20% 13% 17% Denmark 6 694 5 173 -23% 0% 0% Source: EIA website International Total Primary Energy Consumption and Energy Intensity.

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