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European best practices in energy efficiency programmes and in supportive policies aimed at increasing economic, social and environmental benefits of energy efficiency on the demand-side

Panel: Panel 1. Energy efficiency – a strategic choice for Europe

Authors:
Wolfgang Irrek, Wuppertal Institute
Stefan Thomas, Wuppertal Institute
for Climate, Environment, Energy
Lorenzo Pagliano, Politecnico di Milano
Gianluca Ruggieri, Politecnico di Milano
Carlos Lopes, Swedish Energy Agency

Abstract

Experience in several European countries show that Electric and Gas distribution or supply (retail) companies can reach their customers through energy efficiency programmes more easily than other actors (energy agency, municipalities, regional or national governments, market regulators).

Without an appropriate supportive framework the distribution and supply companies are unwilling to collaborate to energy efficiency programmes since their profit would decrease and they would incur direct and opportunity costs. This paper presents different national supportive schemes and successful experiences of energy efficiency programmes.

The results of the analysis demonstrate that different successful policies are possible, adapted to the national framework. However only integrated mechanisms that give the appropriate signals to all the market actors can positively induce them to collaborate and to fully exploit the economic, social and environmental benefits of energy efficiency on the demand side. These integrated mechanisms include: dedicated funds, obligation or negotiated agreements to perform energy efficiency activities on the demand-side, ratemaking to remove pressure to increase sales and to promote energy efficiency programmes, legal and technical support.

The analysis presented here constitutes one of the inputs being used in order to draft the proposal of an EU Directive on Energy Services and Programmes to be performed by distribution or supply companies with large involvement of other actors (e.g., Energy Service Companies (ESCOs), authorities, independent organisations).

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