Spending to save: evaluation of the energy efficiency obligation in Denmark

Panel: 7. Monitoring and evaluation

This is a peer-reviewed paper.

Authors:
Sirid Sif Bundgaard, ARC, Denmark
Mikael Togeby, Ea Energy Analyses, Denmark
Kirsten Dyhr-Mikkelsen, Ea Energy Analyses, Denmark
Tina Sommer, Niras, Denmark
Vibeke Hansen Kjærbye, Niras, Denmark
Anders E. Larsen, Ea Energy Analyses, Denmark

Abstract

In 2012 Ea Energy Analyses, NIRAS, and Viegand & Maagøe, conducted the second evaluation of the Danish Energy Efficiency Obligation (EEO). The overall purpose of the evaluation was to assess the effectiveness of the EEO framework and, if relevant, provide recommendations for adjustments of the EEO framework and guidelines for the following EEO period, i.e. 2013-2020.

This paper focuses on the net savings impact and describes the evaluation method used to determine this. Three complementary analyses are described: 1) An analysis of the additionality of the reported saving, 2) an analysis of the technical accuracy of the savings reported by the obligated parties, and 3) a statistical case study focusing on net effect of heat savings in the residential sector. The evaluation results are discussed and the subsequent implementation of recommendations is presented.

The evaluation concluded that while the energy distribution companies meet their overall saving obligation, the net savings impact are about a third of the savings reported by the obligated parties. Further it was found that while energy savings in the public and business sector have a high net impact, some subsidies given under the EEO are inappropriately high. The net impact in the residential sector, on the other hand, was found to be very low. The evaluation recommended that the new EEO design addresses the additionality issues in order to ensure that savings realised in the residential sector are more cost-effective from a socioeconomic perspective.

The evaluation has resulted in noticeable adjustments of the design of the Danish EEO, e.g. introduction of a 1 year payback-time limit for projects receiving subsidies, a minimum baseline for insulation products, and specification of documentation requirements.