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Greek letters are used to symbolize so many things that they are almost Rorschach tests. For me it represents a term in a few very different equations and a type of particle... anyone else is likely to see it differently. You need some context to sort out what it means. But if you want something that touches all of us - the most general and possible important use - I'll defer to engineering where it represents efficiency.
Efficiency can be a bit subtle. It seems simple - how much you get out of something divided by how much you put in. Take a car with an internal combustion engine. The energy it takes to move it down the road some distance divided by the energy in the gasoline it burns is the efficiency of your car. Under average highway conditions it's somewhere between 25 and 30 percent. Energy isn't created or destroyed - it just changes form when work is done. In this case you get some useful work - moving your car - but the rest goes into heat the engine has to get rid of, heating the road a bit, some noise and so on.
In this fashion you can measure the efficiency of any process that converts energy from one form to another. One of you is a volleyball player. The efficiency of a human running around in the sand is something under 25%. Jumping is roughly the same. The measure here is how well the muscles convert the energy they're given into work. A Tour de France cyclist is somewhere near 25% - human muscle efficiency are similar to a car with an internal combustion engine.
But it's not that easy. What if I want to measure how much work a volleyball player does moving in the sand? Now there's a lot of energy being lost to the slippage of the sand under her feet. You can measure this in principal, but you can keep asking questions. For the car you can ask how much energy did it take to mine the oil, turn it into gasoline and ship it to your tank .. what is the well to tank efficiency? And if you have an electric car what is the efficiency of making and transmitting the electricity and now efficient is the charging process. Oh - and if you buy a car in the first place how much energy did it take to make it?
These questions are part of the necessary context to sort out how much carbon we dump into the atmosphere. Bottom-up calculations like these are extremely difficult - I spent three months doing one for a telecommunications company - but they illuminate where areas for improvement exist. Serious global warming models use top-down measurements which are much easier to get right. They just gloss over a lot of the detail.
My sister had an Easy-Bake toy oven when she was about seven or eight. It looked like a real oven and used two 100 watt light bulbs to generate about 350°F to bake little cakes and cookies. It may have not been the safest toy, but the light bulb as a cheap heating element was genius.
Electric lighting is extremely inefficient. Incandescents convert about three percent of the energy they use into visible light, CFs average around eight percent and the best LEDs maybe fifteen. Most of us have replaced our incandescent lights with compact fluorescent or led lights to save energy. But if your goal is baking little cakes or heating the room a bit, inefficiency becomes useful -- the cheap waste heat is put to use.
The best fossil fuel and nuclear power plants are about thirty five percent efficient. The waste heat can be circulated as steam or hot water and used to heat homes, businesses, run industrial processes - even grow hothouse produce in the Winter. When you add up how the energy is used the effective efficiency of the co-generation plant can rise to sixty to eighty percent. Denmark is the world leader when it comes to doing it at scale - nearly all businesses and housing developments use so-called district heating.
Even your car, assuming it isn't electric, uses co-generation for heating and defrosting. Of the four gallons of gasoline you burn to go thirty miles or so nearly three heat up the engine block or down the tailpipe as waste heat. Your car heater taps this powerful water heat (much more powerful than your home water heater) and there are other ways to use the resource. My father would wrap hamburger, chopped onion, carrots and potato in aluminum foil and tie it to the engine manifold of the old Ford Falcon on our yearly trip to Utah. Eighty miles at seventy miles per hour was about right in early June. The downside was the foil wrapping wasn't great plus sometimes it burned. But as a child of the depression he saw it as a free oven.
This kind of thinking can lead to the lowest of the low-hanging fruit when it comes to using less energy to get our work done. The rub is most of this heat is below the temperature of boiling water and it is increasingly difficult to use heat energy as it gets colder. When you extract heat energy from something it gets cooler. The maximum efficiency is the difference between the original temperature - final temperatures divided by the original temperature.1 You have to get clever if things are cool.
Waste heat is good for hot water if you have the infrastructure. Data centers, sewage treatment plants, industrial air conditioning and refrigeration are good sources.( Cooling is very inefficient and generates an enormous amount of waste heat.2 On a hot Summer day AC increases the temperature of NYC by about 2°F!) Beyond hot water there are specialized engines that work with fairly cool (boiling water temperatures) to generate electricity. They're not sensible everywhere, but industrial applications that can use them to reduce power costs and lower carbon emissions at the same time. With realistic carbon taxes these approaches would explode in popularity.
On the horizon are a variety of methods of mining low grade waste heat turning it directly into electricity. Some are used now -- thermoelectrics are the go-to method for generating power from heat in space - any spacecraft with a nuclear generator uses them. And some developing world stoves generated electricity to charge lights and phones. They're getting better and cheaper, but are still aways off from general use. Thermoacoustics, thermovoltaics, and thermoionics are other promising approaches that are being looked at- the sort of thing DARPA-E was focused on until the current administration came in with a buzzsaw. But this is a very exciting area. Imagine the potential for cutting back on fossil fuel power plants by half without impacting power output.
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1 It gets a little technical and I'm simplifying, but the highest efficiency of a heat engine is the Carnot efficiency which is (Th - Tc )/Th where T is degrees above absolute zero. So the efficiency of going from boiling to room temperature is about (373-273)/373 - about 27% .. in practice it will be much lower. For an efficient engine you want a very high working temperature and a very cool heat sink. Cars need radiators and power plants use super heated steam.
2 Apple and Facebook are leaders on datacenter waste heat capture.