Implications of an energy efficiency obligation scheme for the Swedish energy-intensive industries: an evaluation of costs and benefits
2016 (English)In: Energy Efficiency, ISSN 1570-646X, E-ISSN 1570-6478, 1-19 p.Article in journal (Refereed) Published
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.
Place, publisher, year, edition, pages
Elsevier, 2016. 1-19 p.
Energy efficiency obligation scheme, Cost-benefit analysis, Industrial energy efficiency, Energy efficiency directive, Sweden
Research subject Energy Technology
IdentifiersURN: urn:nbn:se:kth:diva-185749DOI: 10.1007/s12053-016-9446-7ScopusID: 2-s2.0-84964240147OAI: oai:DiVA.org:kth-185749DiVA: diva2:923357
QC 201610102016-04-262016-04-262016-10-11Bibliographically approved