Download Ukraine * Energy Efficiency Kiev, 7 November 2013

How to Promote
Energy Efficiency?
Matteo Mazzoni
Senior Market Analyst,
NE Nomisma Energia
Kiev, 7 November 2013
“Energy efficiency: an important market that is gaining momentum”
In 2011, the IEA estimates that for 11 IEA member countries, investments in energy
efficiency resulted in cumulative avoided energy consumption of 570 Mtoe in the period
2005-2010. In monetary terms this is something like € 320 billion at a price of € 75 per
barrel.
Energy efficiency - the “hidden fuel”
However, investment in energy efficiency is still less than two-thirds of the level of fossil
fuel subsidies. Governments and istitutions still have to understand the full potential of
energy efficiency.
How to promote a market that can simultaneously achieve 3 different goals?

Lower demand for
energy = Higher
system reliance +
Improved security

Lower public expenditures

Competitive advantages

Lower private expenditures

Jobs’ creation

Lower CO2 and other pollutants

Improved health and well-being
Economic




Absence of dynamic pricing
High transaction costs
Relatively high capital investment
No guarantees
Institutional
 Changing regulatory framework
 Lack of institutional capacity
Cultural
 Limited rationality
 Informational failures
 Scarse perception of real discounted
rates
 “It’s always worked”
The real problem with energy efficiency is that it
does not generate a direct cash flow but it
creates savings
The message should change
It make sense economically and ecologically
..…when we talk about energy efficiency we talk about:
 High level of energy services
 Economic growth
 Keeping energy affordable
 and reducing carbon dioxide emissions
Italy has undertaken a sectoral approach to promote and spur
investments in energy efficiency:
Sector
Policy
Industry
White Certificates
Public
Incentive Scheme
Households
Tax Exemptions
Transports &
appliances
Technical Standards
Italy has decided to reach a 24% reduction in energy consumption by
2020, which means save around 20 Mtoe of primary energy per year.
District Heating (CHP)
Integration between existing power plants and
incoming renewables (SMART ENERGY)
Street Ligthing (SMART CITY)
Thanks for your attention
Matteo Mazzoni
NE Nomisma Energia
[email protected]