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Dealing with the paradox of energy efficiency promotion by electric utilities

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  • Sousa, José Luís
  • Martins, António Gomes
  • Jorge, Humberto

Abstract

Utility-based Demand-Side Management (DSM) programmes started after the oil crises of the 70's and were adopted by utilities as a standard practice. However, deregulation of the electricity industry threatened DSM. More recent concerns regarding energy dependence and environmental impact of energy use caused renewed attention on the utilities role in energy efficiency fostering. EE is presently a cross-cutting issue, influencing energy policy definition and regulatory activity worldwide. Some instruments for influencing the behaviour of electric utilities in the market are used by regulators, corresponding to both impositions and stimuli, such as defining savings targets or decoupling profits from energy sales. The paper addresses categories of regulatory instruments and refers to examples of countries and regions using these identified categories of instruments. Although some cases show voluntary involvement of utilities in EE promotion on the grounds of customer retention strategies, there is a clear prevalence of regulatory constrained markets where utilities rationally engage in energy efficiency promotion.

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  • Sousa, José Luís & Martins, António Gomes & Jorge, Humberto, 2013. "Dealing with the paradox of energy efficiency promotion by electric utilities," Energy, Elsevier, vol. 57(C), pages 251-258.
    • Handle: RePEc:eee:energy:v:57:y:2013:i:c:p:251-258
    DOI: 10.1016/j.energy.2013.02.040
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    7. Frei, Fanny & Sinsel, Simon R. & Hanafy, Ahmed & Hoppmann, Joern, 2018. "Leaders or laggards? The evolution of electric utilities’ business portfolios during the energy transition," Energy Policy, Elsevier, vol. 120(C), pages 655-665.
    8. Hall, Stephen & Roelich, Katy, 2016. "Business model innovation in electricity supply markets: The role of complex value in the United Kingdom," Energy Policy, Elsevier, vol. 92(C), pages 286-298.
    9. Hafize Nurgul Durmus Senyapar & Ahmet Aksoz, 2024. "Empowering Sustainability: A Consumer-Centric Analysis Based on Advanced Electricity Consumption Predictions," Sustainability, MDPI, vol. 16(7), pages 1-23, April.
    10. Devenish, Anna, 2023. "Institutional and contextual drivers of and barriers to incentive-based demand response: A comparative case study in the Pacific Northwest," Utilities Policy, Elsevier, vol. 84(C).
    11. Cui, Qiang & Kuang, Hai-bo & Wu, Chun-you & Li, Ye, 2014. "The changing trend and influencing factors of energy efficiency: The case of nine countries," Energy, Elsevier, vol. 64(C), pages 1026-1034.
    12. Miara, Ariel & Tarr, Craig & Spellman, Rachel & Vörösmarty, Charles J. & Macknick, Jordan E., 2014. "The power of efficiency: Optimizing environmental and social benefits through demand-side-management," Energy, Elsevier, vol. 76(C), pages 502-512.
    13. Beckel, Christian & Sadamori, Leyna & Staake, Thorsten & Santini, Silvia, 2014. "Revealing household characteristics from smart meter data," Energy, Elsevier, vol. 78(C), pages 397-410.
    14. José L. Sousa & António G. Martins, 2018. "Portuguese Plan for Promoting Efficiency of Electricity End-Use: Policy, Methodology and Consumer Participation," Energies, MDPI, vol. 11(5), pages 1-19, May.
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