Short-term objectives and direct impacts versus long-term energy efficiency: A case study of Norway's energy agency model

Håvard Solem, Andreas Krüger Enge, and Anita Eide, Enova SF

Keywords

Energy agency model, short-term impacts, long-term efficiency, institutional setting, cost efficiency

Abstract

Energy agencies make prioritizations among which measures and programs to implement, and which projects to support or to take part in. Further, the energy agencies' results vary with respect to whether the results are direct or indirect, and whether they are realized in the short-term or long-term. In addition, the agencies' resources must be used cost efficiently. The main point in this paper is to demonstrate that one must be aware that the organization and design of the energy agencies have important implications for how they conduct their everyday business. Hence, the accomplishments of the agency coincide with the owners' overall goals for the agency only if the design of the agency allows it to make the right decisions. To discuss this issue, we construct a general energy agency model and discuss the Norwegian model in light of the general model, pointing to the shortcomings and the potential for improvement.