Energy efficiency plays a key role in meeting future climate targets. Energy efficiency programmes, however, are still dominated by conventional interventions and mainly rely on subsidies that are paid upfront and are based on a predicted result. So, despite its many benefits, energy efficiency still faces barriers to achieving its full potential.

In the scope of the SENSEI project, important research has been undertaken to identify how to cross these barriers and pioneer the design of performance-based energy efficiency projects, through the design of Pay-for-Performance (P4P) programmes. In this article, authored by our partners in IEECP and RAP, we lay out guidance for designing and implementing P4P schemes that reward end-users or aggregators for delivering energy savings tracked through metering and established against a business-as-usual scenario, also describing several potential obstacles and questions that utilities and regulators should consider. That is, the article offers actual recommendations to support better and well-informed policymaking.

 

Access the full article here.