Search eceee proceedings

Where to place the saving obligation: end-users or suppliers?

Panel: 2. Current energy efficiency policies: On stage and backstage

This is a peer-reviewed paper.

Authors:
Paolo Bertoldi, European Commission, Joint Research Centre (JRC) Ispra, Italy
Silvia Rezessy, European Commisison DG JRC, Belgium
Sibyl Steuwer, Freie Universität Berlin, Germany
Vlasis Oikonomou, Joint Implementation Network, Netherlands

Abstract

Supplier obligations have been introduced both in North America and in Europe. Under suppliers obligation utilities have to comply with mandatory energy savings targets and thus they implement energy efficiency projects in their client premises. In many cases the energy savings are certified and tradable (via the so-called white certificates or white tags). Under these schemes, in most cases it is up to the utilities to decide (under certain conditions) how to comply with their obligation – for example whether to implement efficiency measures and what types of measures to implement, whether to trade or outsource. Utilities may get paid for implementing efficiency measures.

In other emerging schemes such as the UK CRC Energy Efficiency Scheme or the Tokyo Carbon Trade Scheme, the obligation to reduce energy consumption is placed on large end-users directly. In principle energy saving obligations could also be placed on households or even on citizens (this is also know as Personal Carbon Allowances). Both these schemes allows trading of allowances.

The paper compares and analyses the advantages and disadvantages of placing obligations directly on end-users – both large end-users (e.g. commercial and industrial) and residential ones – compared to more "traditional" supplier obligations. The comparison will be carried out on the basis of the potential effectiveness in reaching ambitious energy saving targets, the enforcement, monitoring and expected total transaction costs, and costs for end-users.

Finally, policy recommendations for future energy obligation at national and EU level will be presented and discussed.

Downloads

Download this presentation as pdf: 2-307_Bertoldi_pre.pdf

Download this paper as pdf: 2-307_Bertoldi.pdf