Thursday, April 27, 2017

Investment stimulated by market-based instruments for energy efficiency has risen six-fold over the last ten years


IEA published the first global overview of market-based instruments (MBIs) for energy efficiency, such as auctions, energy efficiency obligations on utilities and white certificate programmes. Contrary to other policy instruments, MBIs allow market actors to choose the measures and delivery routes that provide the most cost-effective way to achieve the outcomes set out by policy makers.
By 2016, 52 MBIs were in place, with 24 US States, 12 European countries, Australia, Brazil, Canada, China, Korea, South Africa and Uruguay all employing obligations, and energy efficiency auctions operational in six US and European jurisdictions.
MBIs offer the potential for policy makers to access more cost-effective efficiency gains. The amount of investment generated by MBIs has increased six-fold over the last ten years and  reached USD 26 billion in 2015, or 12% of the USD 221 billion invested in energy efficiency globally. MBIs are saving significant amounts of energy for less than the cost of supply - expenditure by obligated parties and payments to auction winners (programme costs) averages around USD 0.013 per kWh saved. Read more at https://www.iea.org