Energy efficiency provides a diverse set of values to the energy system, some of which can be rewarded through mechanisms such as capacity markets and network procurement programmes and others which require dedicated energy efficiency programmes. To turn this set of values into bankable energy efficiency projects a number of steps need to be taken.
This report, written by RAP’s Jan Rosenow and Samuel Thomas, looks at different aspects of the energy sector and identifies the opportunities for rewarding energy efficiency for the value it provides to the energy system. It sets out the mechanisms by which that value can be rewarded and the changes, at the policy, regulatory and industry levels, that are needed to enable those rewards to be realised in a set of policy recommendations.
The Horizon2020-funded project SENSEI will design, test and disseminate an innovative transaction model in Europe, to value buildings energy efficiency upgrades: pay-for-performance (P4P).