The IEA supports international energy technology research, development, deployment, and knowledge transfer through multilateral groups (formally called Implementing Agreements). The experts participating in the activities of the Implementing Agreements represent public and private sector entities worldwide. Together, these experts share knowledge – and resources – to advance energy technologies.
Energy efficiency offers near-term solutions to the issues of energy security and climate change. Energy efficiency improvements have a significant impact on system performance, the environment and employment. Demand-side management is one way to achieve large-scale energy efficiency improvements through targeted policies, managing electricity demand and market transformation.
The Implementing Agreement for Co-operation on Technologies and Programmes for Demand-Side Management (DSM IA) focuses on electricity load shaping and load levelling, as well as cross-cutting issues such as resource planning, the role of municipalities, market transformation and technology procurement. There are 15 Contracting Parties, including India, and two Sponsors.
There are many types of policy instruments for achieving energy efficiency savings. Energy efficiency obligations (EEO)1 require parties to meet quantitative energy savings targets by delivering or procuring eligible energy savings.
The final report from the recent DSM IA study, Best Practices in Designing and Implementing Energy Efficiency Obligations Schemes, examines experiences with energy efficiency obligation schemes in 19 jurisdictions in 11 countries within Asia, Europe and North America.
Experiences in individual jurisdictions were examined across 15 design parameters: policy objectives; legal authority; fuel coverage; sector and facility coverage; energy savings targets; sub-targets and portfolio requirements; compliance regimes; penalties; performance incentives; eligible energy savings; eligible energy efficiency measures; measurement, verification and reporting; trading of energy savings; and funding.
The study identified three broad types of energy efficiency obligation schemes for achieving quantitative energy savings targets: those established relatively independently (often with their own enabling legislation); those that were integrated components of resource planning and acquisition by the obligated energy provider; and those established principally by governments as integral components of government policies.
Each of the three types of schemes is the product of quite different ways of thinking about how to use energy providers to deliver energy efficiency. For the first time, information about the three different types of schemes has been systematically classified into categories that apply to all the schemes.
Through a comparative analysis of this information, the report identifies best practices in designing and implementing an EEO scheme. Adopting these best practices when designing new schemes (or when updating existing schemes) should deliver cost‑effective energy efficiency schemes.
1. Also referred to as energy efficiency portfolio standards, energy efficiency resource standards, energy efficiency commitments or energy supplier obligations.
*Data courtesy of the Danish Energy Agency.
For more information: www.ieadsm.org
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