This paper presents and discusses a methodology for the calculation of efficient prices on distribution network tariffs. Tariffs should reflect costs and assure the absence of cross subsidies between clients.
The International Energy Agency believes that energy efficiency is the most cost-effective way to meet the environmental challenges. ERSE, the Portuguese Energy Services Regulatory Authority, established in 2006 a competitive tender mechanism to promote efficiency in electricity consumption called PPEC. PPEC first edition (PPEC 2007) sponsored 26 measures, implemented during 2007, 2008 and 2009. The benefits were estimated to be 4,6 times higher than the costs. However, the ex-post measurement and verification plans revealed that the benefit cost ratio went well above the expectations, mounting to 7,4.Clearly, competitive tender mechanisms are one of the means possible to ensure sufficient, affordable, reliable energy supply while meeting environmental goals. Regulators ensure the crucial balance between energy availability and energy affordability and thus have a central role in the transition to a low carbon energy sector.
Index Terms--Energy efficiency, demand side management
Energy consumption depends on various factors, such as equipment's energy efficiency, comfort level, consumer's behaviour and income. Equipment's efficiency and consumer's behaviour are crucial to achieve energy savings. The present paper focuses on the relation between energy savings and consumer's behaviour. For the majority of demand side management measures, energy savings obtained are affected by behavioural factors, introduced by the consumers. The Portuguese Energy Services Regulatory Authority (ERSE) has developed a competitive mechanism for promoting efficiency in electricity consumption called PPEC (Demand-side Electricity Efficiency Plan). In this plan, energy efficiency measures, promoted by suppliers, network operators, consumers and energy agencies, etc, are evaluated and ranked by merit order. The merit of each measure is defined by a cost-benefit analysis. A methodology to consider the behavioural factors in the merit analysis of energy efficiency measures is presented in the paper.
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