An energy efficiency obligation (EEO) is a regulatory mechanism that requires obligated parties to meet quantitative energy saving targets by delivering or procuring eligible energy savings produced by implementing approved end-use energy efficiency measures. Governments in various jurisdictions around the world have endeavored to improve end-use energy efficiency, and in some cases also achieve other objectives, by designing and implementing EEO schemes. These schemes require energy providers, such as electricity and gas companies, to meet quantitative energy saving targets through assisting their customers to implement energy efficiency measures. This report includes detailed case studies of 19 EEO schemes implemented in a range of jurisdictions around the world. A table in the Appendix summarises and compares key design parameters among the schemes. The table and the case studies themselves demonstrate that there are many different ways to design and implement EEO schemes. Through a comparative analysis of the information in the case studies, the report identifies best practices in designing and implementing an EEO scheme. Adopting these best practices in designing and implementing new schemes, and updating existing ones, should improve the effectiveness of EEO schemes in delivering cost-effective energy efficiency.
Best Practices in Designing and Implementing Energy Efficiency Obligation Schemes
May 1, 2012