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Energy provider-delivered energy efficiency: an international review

Panel: 3. Matching policies and drivers: Policies and Directives to drive industrial efficiency

This is a peer-reviewed paper.

Authors:
Grayson Heffner, International Energy Agency, IEA, France
Peter
DuPont, Regulatory Assistance Project
Carina Paton
Greg Rybka
Dilip Limaye

Abstract

In many countries energy providers have proven quite effective in delivering energy efficiency (EE) – if the right regulatory framework and enabling conditions can be established. The past decade has seen a worldwide trend in mobilizing energy providers to invest in energy efficiency, with new policies obligating energy providers being implemented in the US, the EU, Australia, and China. This paper presents the results of a global review performed by the International Energy Agency of programme designs that energy providers have implemented to deliver energy efficiency to their end-use customers – households, businesses, and industry. This study is unique for two reasons (a) it has global coverage, and (b) it is specific to EE programs implemented by energy providers (as opposed to government agencies or third-party implementers). The review identified several distinct types of energy provider-delivered energy efficiency programme designs – incentives, on-bill financing, equipment replacement, advice and assistance, bulk procurement and distribution, information and comprehensive implementation. These energy efficiency programmes were effective in mobilizing increased energy efficiency investment by households, businesses, and industry alike. The review found there is no global “repository” for this energy efficiency information – a significant gap in the effort to track and monitor international efforts to scale up implementation of utility-driven projects. The review also found considerable innovation in programme designs including unified and collaborative delivery, use of stretch goals for programme administrators and contractors, comprehensive service delivery, multiple approaches to engaging the customer, enhanced financial support, and creating incentives to take a whole-house or whole-premise

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