Energy Efficiency and Load Management under Changing Electricity Market Conditions

Edward Vine, Lawrence Berkeley National Laboratory
Jan Hamrin, Center for Resource Solutions
Nick Eyre, Energy Saving Trust
David Crossley, Michelle Maloney, and Greg Watt, Energy Futures Australia Pty Ltd.

Keywords

Abstract

Many countries are initiating reforms of their electric power sectors to stimulate private investment, increase operation and management efficiencies, and lower the cost of power. These countries are unbundling vertically-integrated utilities into distinct generation, transmission, distribution and retail supply companies; introducing commercial management principles to government-owned monopolies; and in many cases transferring operation or ownership to private companies. Electric industry restructuring will force regulators and policy makers to re-examine the effectiveness of existing mechanisms for promoting load management and energy efficiency. It is uncertain whether restructuring reforms will increase or decrease the effectiveness of existing mechanisms to promote energy efficiency or will affect customers’ willingness to invest in energy efficiency on their own. This paper assesses (1) the potential effectiveness of the reform of the electricity industry on promoting energy efficiency and load management, and (2) the potential effectiveness of new mechanisms for promoting energy efficiency and load management under different types of electricity or market reform.