Pay for Performance Programmes for energy efficiency in the European Union: What factors could enable their implementation?


Our new publication entitled “Devising policy strategies for the deployment of energy efficiency Pay-for-Performance (P4P) programmes in the European Union”, published at Elsevier’s Energy Policy Journal, aims to shed light into the conditions that affect the development of energy efficiency P4P programmes in the European Union (EU).

While P4P programmes have been widely deployed so far to engage both energy and third-party service providers in energy efficiency projects in North America, progress in the EU remains slow. The energy system in the EU differs from the one in the United States; thus, to ensure the successful deployment of P4P programmes, they should be tailored-designed to fit into the European framework, while further policy and market developments should take place.

In this article, we follow a transdisciplinary approach that couples desk and empirical research with a SWOT and an AHP multicriteria analysis to delve into how the existing EU regulatory and market conditions could support the development of P4P programmes.

Our findings suggest that, among others, establishing demanding energy performance standards, valuing energy efficiency as a resource, and promoting “metered savings” methodologies can strongly facilitate the roll-out of performance-based energy efficiency programmes in the EU. Y

You can read and download our article here!