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How to better understand and improve cost-effectiveness of energy efficiency programs from multiple stakeholder perspectives?

Panel: 1. Policies and programmes

Authors:
Alisa Yushchenko, University of Geneva
Martin Patel, University of Geneva, Switzerland

Abstract

Cost-effectiveness analysis is officially recognized to be one of the core elements of energy efficiency program evaluation. In this context two questions arise: How to better evaluate cost-effectiveness of energy efficiency programs? And how to improve the programs’ cost-effectiveness in practice? In our study we evaluate whether non-residential energy efficiency programs in Switzerland can be cost-effective for different stakeholders. Our work is based on a case-study of Négawatt program in Geneva. Négawatt is targeting energy savings in non-residential sector, including industry. The program encourages long-term participation. At the beginning the program participants sign a chart with the program administrator. They engage themselves to appoint or hire an energy manager, and they receive a one-time incentive for this. Program participants carry the costs of implementation of energy efficiency measures. Among the supported measures are installation of efficient lighting, cooling, ventilation and heating equipment; and optimization of processes. After the energy savings are confirmed, the program administrator pays an incentive based on the amount of first-year energy savings. In addition, program administrator provides training support (full or partial coverage of costs). In our study we propose a somewhat modified methodology based on California Public Utilities Commission’s cost-effectiveness tests for evaluating the program from the perspective of multiple stakeholders: program participants, energy consumers (with regard to energy tariffs and overall energy costs), program administrator, utility, geographic jurisdiction territory and society as a whole. We analyze how program administrators can contribute to increasing cost-effectiveness of their programs by means of program design. Based on our results, we provide policy recommendations for increasing cost-effectiveness of non-residential energy efficiency programs.

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