Best practices for Designing Energy Efficiency Obligations
This whitepaper represents the best practices for designing energy efficiency obligations.
Organizations have started adopting a strategy by enabling it to achieve the EU energy efficiency goal of 20 percent savings by 2020. To achieve this they must have to establish Energy Efficiency Obligation (EEO) schemes or alternative measures to meet the Directive’s ambitious energy-saving target.
- How to establish Energy Efficiency Obligation (EEO) to meet the Directive's ambitious energy-saving target?
- How to achieve national energy efficiency targets by implementing alternative policies, either in lieu of or in parallel with an EEO scheme?
- What considerations influence EEO effectiveness?
This whitepaper suggests that policy-makers and stakeholders can simplify the task ahead and deliver an integrated, comprehensive, and efficient set of policies by adhering to four best practices given below:
- Obligating energy suppliers and distributors to enable large scale energy savings
- Incentivising innovation through technology-neutral criteria focused on cost-effective savings
- Adopting strong financial incentives for obligated parties to exceed compliance requirements
- Applying rigorous measurement, control, and verification standards that account for the full lifetime of energy savings
Simply addressing these central issues in a way that is consistent with the lessons learned from jurisdictions with standing EEO schemes will provide a sturdy and inviting platform for innovation among policy-makers, citizens, and energy market participants.