Energy saving obligations—cutting the Gordian Knot of leverage?
- 338 Downloads
Better leverage of public funding is essential in order to trigger the investment needed for energy efficiency. In times of austerity governments increasingly look at policy instruments not funded by public expenditure and energy saving obligations represent one option. Because energy saving obligations are paid for by all energy customers, the degree to which they are able to raise additional private capital for energy efficiency investments is crucial with regard to the financial burden on consumers. In this paper, we systematically assess how successful energy saving obligations were in levering capital from parties other than the obligated entities including private investors and other public bodies. We analyse three countries with substantial experience with energy saving obligations, identify the main design differences and the effect this has on the degree of leverage. We conclude that the design of energy saving obligations largely determines the degree of leverage and that that there appears to be a trade-off between high leverage and additionality.
KeywordsEnergy saving obligation Leverage Financing
- ADEME (2013). Evaluation qualitative du dispositif CEE – 2ème période 2011-2013, Synthèse. http://www2.ademe.fr/servlet/getDoc?cid=96&m=3&id=87905&p1=30&ref=12441. Accessed 07 Nov 2013.
- Bertoldi, P., & Rezessy, S. (2008). Tradable white certificate schemes: Fundamental concepts, Energy Efficiency (Vol. 1, pp. 237–255). Netherlands: Springer. Issue 4.Google Scholar
- Bertoldi, P., Rezessy, S., Lees, E., et al. (2010 March). Energy supplier obligations and white certificate schemes: Comparative analysis of experiences in the European Union, Original Research Article Energy Policy. Vol. 38, Issue 3, (pp. 1455–1469). Elsevier.Google Scholar
- Bundgaard, S.-S., et al. (2013). Spending to save: Evaluation of the energy efficiency obligation in Denmark, 2013 eceee summer study.Google Scholar
- DECC. (2010). Extending the carbon emissions reduction target to December 2012. London, DECC: Impact Assessment.Google Scholar
- DEFRA. (2004). Energy efficiency: The government’s plan for action. London: DEFRA.Google Scholar
- DEFRA. (2007). UK energy efficiency action plan 2007. London: DEFRA.Google Scholar
- DGEC. (2013). Lettre d’information CEE, Avril 2013. http://www.developpementdurable.gouv.fr/IMG/pdf/130401_Lettre_d_information_CEE.pdf. Accessed 7 Nov 2013.
- Eichhammer, W., Schlomann, B., & Rohde, C. (2012). Financing the energy efficient transformation of the building sector in the EU. Retrieved 07/10/2013 from http://www.odyssee-indicators.org/publications/PDF/Building-policies-brochure.pdf. Accessed 7 Nov 2013
- Giraudet, L.-G., Bodineau, L., & Finon, D. (2012). The costs and benefits of White Certificates schemes, energy efficiency (Vol. 5, pp. 179–199). Netherlands: Springer. Issue 2.Google Scholar
- Lees, E. (2006). Evaluation of the Energy Efficiency Commitment 2002-05. Wantage: Eoin Lees Energy.Google Scholar
- Lees, E. (2008). Evaluation of the Energy Efficiency Commitment 2005-08. Wantage: Eoin Lees Energy.Google Scholar
- OFGEM. (2005). A review of the Energy Efficiency Commitment 2002–2005. London: OFGEM.Google Scholar
- OFGEM (2012a). Approach to enforcement of the Government’s Carbon Emissions Reduction Target (CERT) and Community Energy Saving Programme (CESP). Retrieved 23/10, 2012, from http://www.ofgem.gov.uk/Sustainability/Environment/EnergyEff/InfProjMngrs/Documents1/Open%20letter%20CERT%20CESP%20210912.pdf. Accessed 23 Oct 2012.
- OFGEM (2012b). Carbon emissions reduction target update. September 2012. Retrieved 11/10, 2012, from http://www.ofgem.gov.uk/Sustainability/Environment/EnergyEff/CU/Documents1/OfGem%20CERT%20Q17%20June%202012_v03.pdf. Accessed 11 Oct 2012.
- RAP (2012). “Energy savings obligationsglobal lessons & the “Efficiency Utility” Model”, presentation at the DENEFF workshop in Berlin October 24, 2012 Retrieved 12/06/2012 from http://www.raponline.org/document/download/id/6244. Accessed 12 June 2012.
- Rosenow, J., & Eyre, N. (2013). The green deal and the energy company obligation. Proceedings of the ICE—Energy, 166, 127–136.Google Scholar
- Togeby, M. (2012) Evaluering af energiselskabernes energispareaktiviteter, EaEnergianalyse, Kopenhagen 2012 Retrieved 11/12/2012 from: http://www.ens.dk/da-DK/ForbrugOgBesparelser/EnergiselskabernesSpareindsats/Documents/Evaluering2012/Evaluering2012Hovedrapport.pdf. Accessed 11 Dec 2012.