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The legitimisation of demand-side policies under deregulation: lessons learned from the IRP Era

Panel: Panel 1: Assessment of Energy Efficiency Policy

Author:
Mike Bull, Bonneville Power Administration

Abstract

In this era of rapid changes in the electric power industry driven by deregulation and restructuring, the challenge of developing a substantial demand-side agenda to address efficiency, environmental protection and sustainability can be overwhelming.

The popular international movement to rely on competitive markets for power requirements is in opposition to the traditional energy efficiency agenda for public support through programs, policies and regulations. Support for demand-side initiatives will be determined in large part by the general perception of their legitimacy of their impacts, and that is best reflected in the analysis of their distributive effects.

The author maintains that what we learned in the IRP era about quantifying the distributive impacts of demand-side policies can be applied to this new era, and, coupled with the success in modelling competitive power markets, can make the case for substantial demand-side efforts.

Failure to make the case for the legitimacy of aggressive policies can lead to token efforts or temporary support during crises. Examples from the experience of the Bonneville Power Administration in the Northwest U.S. are used to show that the analysis of these issues is tractable and ultimately essential for public support.

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