Energy efficiency can become a valuable resource and be rewarded in the energy service capacity market
SENSEI examines the three main mechanisms to reward energy efficiency as an energy system resource and draws recommendations for future efforts in the European Union:
- Dedicated energy efficiency markets, such as Energy Efficiency Obligations (EEOs), are a proven way of rewarding energy efficiency
- Capacity markets should enable energy efficiency to compete fairly
- Network operators should be regulated to align their incentives with energy system goals through performance-based regulation (PBR), an approach taken in the United States and in recent pilot programmes in the United Kingdom.