Silvia Rezessy

Tradable Certificates for Energy Savings: Opportunities, Challenges, and Prospects for Integration with other Market Instruments in the Energy Sector

Policy portfolios that include tradable green certificates have been introduced in several European countries to foster market-driven penetration of renewable energy sources. Another widely analysed type of market-based instrument in the energy sector is the tradable emission allowance. Recently tradable certificates for energy savings as a tool to stimulate energy efficiency investments and deliver energy savings have attracted the attention of policy makers. While such schemes have been introduced in different forms in Italy and the Great Britain and considered in other European countries, there is an ongoing debate over their effectiveness and applicability. The paper describes the concept and main elements of schemes that involve tradable certificates for energy savings (TCES) and how these have been put into practice in Italy and the Great Britain. It then compares TCES schemes with energy taxation and mandatory demand-side management (DSM) programs using a set of four criteria. Integration with green certificates and CO2 emissions trading schemes is examined and some possibilities for practical implementation are outlined.

Voluntary agreements for energy efficiency : Review and results of European experiences

During the 1990s there was great attention and debate in the European Union (EU) and in OECD countries outside the EU on the use of voluntary agreements to attain environmental and sustainable energy policy goals. At the time there was a lot of theoretical analysis and discussions on this policy instrument and in particular on its effectiveness and cost efficiency. Before the debate was over, a number of important voluntary agreements to improve energy efficiency or reduce CO2 emissions were implemented in Europe both at national and European levels. These voluntary agreements cover end-use equipment and appliances (e.g. cars, electric motors, residential appliances, etc.), industrial processes, and industrial energy management policies and practices. The paper classifies and analyses the different types of voluntary agreements aiming at improving energy efficiency in Europe, and reviews voluntary agreements and other initiatives of similar nature (voluntary programmes, unilateral commitments, self-regulation) in industrial sectors in a number of Member States of the European Union. The paper also examines some successful European initiatives of voluntary nature, including unilateral agreements for improved energy efficiency of end-use equipment, such as the European agreement on energy consumption of washing machines, and the European agreement on power consumption in standby mode of televisions and video cassette recorders (VCRs). The paper concludes that, if set up under the right institutional framework (as presented and discussed in the paper), voluntary agreements can deliver energy savings in a flexible and cost effective manner and could represent an important instrument for improving energy efficiency and climate change mitigation, in addition and co-ordination with other important policy instruments.

Energy saving obligations and white certificates: ideas and considerations for the transport sector

ABSTRACT A lot of policy interest and analysis has been focused on energy saving obligations on energy distributors or suppliers (mainly electricity and gas) coupled with trading of certified energy savings via tradable white certificates. While in the European Union the Energy Services Directive (2006/32/EC) also applies to transport fuels and some of the existing energy saving obligations allow certification of savings from transport projects, as of the end of 2009 no EU Member State has energy saving obligations on transport fuel distributors. The article explores the application of energy saving obligations in road transport, discussing the imposition of energy saving obligations on transport fuel suppliers, the definition of eligible technologies and projects, and considering energy saving obligations as a stand-alone tool or integrated with existing electricity and gas obligations. The article intends to open further discussion and research on the topic.

Renewable Electricity Support Schemes in Central Europe: A Case of Incomplete Policy Transfer

Despite the relatively high potential contribution of renewable energy sources (RES) to the energy mixes of the countries in Central Europe and the officially stated support for RES deployment, progress towards implementing that commitment has been slow. This article examines the content and coherence of support schemes for the promotion of RES adopted by the Czech Republic, Hungary, and Poland. We argue that RES support schemes suffer from some weaknesses that are a function of the means by which renewable energy objectives were imported into the region. The preparations for accession to the EU encouraged a process of “policy transfer” of policies negotiated and designed elsewhere. Consequently, policies sometimes suffer from technical deficiencies, lack of political support, implementation and enforcement obstacles. The challenge now is to review the policies adopted during the transition period, rationalise their legal superstructure, and implement them in the context of well-developed strategic objectives with political and stakeholder understanding and support.