Commission's approach to electricity efficiency

The Commission has adopted an iterative three step approach to electricity efficiency.

The first step involves conducting research into electricity efficiency potential, in particular developing and utilising its electricity efficiency potentials model. Model inputs will be updated as new information becomes available, and technologies and costs change.

The second step involves examining the barriers to investment in efficient technologies across various sectors and users. Several studies have been carried out looking at barriers to achieving efficiency potentials in the industrial and commercial sectors, and lighting generally.

Once the electricity efficiency potentials and barriers to uptake are understood, the Commission uses this information to develop electricity efficiency programmes links to a page in this document through a competitive tender process. This process allows a range of proposed programmes to be evaluated against the Commission’s key objective of delivering enduring cost effective electricity efficiency.

Programmes must be cost-effective – meaning that savings are expected to be delivered at an average cost (over the life of the investment) that is less than the cost of investing in new electricity generation and transport capacity.

The primary objective of the programmes is to achieve sustainable electricity savings by permanently overcoming barriers, such as by improving information regarding an initiative or achieving consumer acceptance of a technology. In some cases, “pilot” programmes are carried out to confirm savings potential and cost, or to test the success of types of incentive programmes.

In developing and implementing programmes, the Commission seeks to consult and develop effective working relationships with other agencies, relevant industry sectors, and electricity efficiency programme providers. The Commission also utilises stakeholder groups such as the Efficient Lighting Group and the Compressed Air Stakeholders Group in developing some programmes.

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