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Implications of an energy efficiency obligation scheme for the Swedish energy-intensive industries: an evaluation of costs and benefits
KTH, Skolan för industriell teknik och management (ITM), Energiteknik, Energi och klimatstudier, ECS.ORCID-id: 0000-0003-2896-8841
KTH, Skolan för industriell teknik och management (ITM), Energiteknik, Energi och klimatstudier, ECS.ORCID-id: 0000-0001-7123-1824
KTH, Skolan för industriell teknik och management (ITM), Energiteknik, Energi och klimatstudier, ECS.ORCID-id: 0000-0002-3618-1259
2016 (engelsk)Inngår i: Energy Efficiency, ISSN 1570-646X, E-ISSN 1570-6478, s. 1-19Artikkel i tidsskrift (Fagfellevurdert) Published
Abstract [en]

The EU Energy Efficiency Directive (EED) aims at improving energy efficiency by implementing actions in all sectors of the economy in the EU. Article 7 of the EED sets the target of 1.5 % cumulative annual energy end-use savings. An energy efficiency obligation scheme (EEO) is one of the policy mechanisms proposed to reach this target. This paper assesses the impact of implementing a Swedish EEO and the implications that such a scheme may have for Swedish energy-intensive industries. The assessment was based on cost-benefit analysis (CBA) methodology. The benefit-to-cost ratio (BCR) ranges from 1.56 to 2.17 and the break-even cost ranges from 83.3 to 86.9 €/MWh with sensitivity analyses performed for the emission allowance prices and eventual costs of the EEO. The annual energy savings potential is estimated to be 1.25 TWh/year. A Swedish EEO could motivate investments in energy efficiency measures and thus help Sweden reach the energy efficiency targets set in the EED.

sted, utgiver, år, opplag, sider
Elsevier, 2016. s. 1-19
Emneord [en]
Energy efficiency obligation scheme, Cost-benefit analysis, Industrial energy efficiency, Energy efficiency directive, Sweden
HSV kategori
Forskningsprogram
Energiteknik
Identifikatorer
URN: urn:nbn:se:kth:diva-185749DOI: 10.1007/s12053-016-9446-7ISI: 000394263100009Scopus ID: 2-s2.0-84964240147OAI: oai:DiVA.org:kth-185749DiVA, id: diva2:923357
Merknad

QC 20161010

Tilgjengelig fra: 2016-04-26 Laget: 2016-04-26 Sist oppdatert: 2017-11-30bibliografisk kontrollert
Inngår i avhandling
1. Is energy efficiency the forgotten key to successful energy policy?: Investigating the Swedish case
Åpne denne publikasjonen i ny fane eller vindu >>Is energy efficiency the forgotten key to successful energy policy?: Investigating the Swedish case
2016 (engelsk)Licentiatavhandling, med artikler (Annet vitenskapelig)
Abstract [en]

Sweden aims to become one of the first fossil-free welfare countries in the world. In 2009, specific energy and climate policy targets were announced for 2020, which exceed the ambition of respective EU targets in some areas. The overarching objective of the thesis is to understand the role of energy efficiency in Swedish energy and climate policy frameworks, and identify the gaps that need to be addressed. In this context, energy efficiency is recognized as a challenge to address. Yet, there are reasons to believe that it is not being pursued with the same dedication as other energy and climate-related targets.

This hypothesis is tested using Mixed Methods research, with cases on different sectors of the Swedish economy, namely energy intensive industry and public bus transport, as well as comparisons with energy efficiency within the EU-28. With the help of abductive reasoning, the observations are inferred to an explanation, and common themes for Swedish energy efficiency policies emerge.

The evidence indicates that energy efficiency has received lower priority than other energy and climate policies. This is demonstrated by the conflict between energy efficiency, emission reduction and renewable energy targets, for example in the case of public transport. There is generally a mismatch between targets and the instruments in place. Thus more attention should be given to energy efficiency and its potential benefits for the Swedish energy system.

Opportunities for energy efficiency improvements are not being fully realized, but new policy initiatives could provide the necessary support to harness the potential. In-depth evaluation of new policy instruments should be integrated in the policy-making process, in order to provide a clear picture of costs versus benefits. An example is given with a Cost-Benefit Analysis for energy efficiency obligations targeting the Swedish energy intensive industry.

Simplicity and transparency in the introduction and monitoring of new instruments need to be sought for. Energy efficiency should be given first priority in relation to other energy and climate targets. The basis for future policies should be grounded now in order for energy efficiency to become the key for successful Swedish energy policy. 

sted, utgiver, år, opplag, sider
Stockholm: KTH Royal Institute of Technology, 2016. s. 62
Serie
TRITA-ECS Report ; 16/01
Emneord
energy efficiency, energy policy, Sweden, policy research, mixed-methods research, Cost-benefit analysis, energy intensive industries, public transport
HSV kategori
Forskningsprogram
Energiteknik
Identifikatorer
urn:nbn:se:kth:diva-192291 (URN)978-91-7729-117-6 (ISBN)
Eksternt samarbeid:
Presentation
2016-10-06, B2, Brinellvägen 23, Stockholm, 10:00 (engelsk)
Opponent
Veileder
Merknad

QC 20160914

Tilgjengelig fra: 2016-09-14 Laget: 2016-09-08 Sist oppdatert: 2016-09-14bibliografisk kontrollert

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