a. Energy efficiency measures
Energy efficiency measures are generally considered the most cost-effective way of reducing the demand for electricity and increasing the efficiency of the electricity system.(1) Yael Parag, ‘Beyond energy efficiency: a prosumer market as an integrated platform for consumer engagement with the energy system’ (ECEEE summer study proceedings, Toulon, 2015) 15, 16. Accordingly, they have a large role to play in reducing the emissions of the energy system. Energy efficiency measures are very accessible, as they do not require the installation of smart meters, storage or generation capacity. Even in off-grid situations, energy efficiency measures are an important asset, as they reduce the need for additional generation and storage capacity and make going off-grid a more viable alternative.
Energy efficiency measures are on the borderline of the active consumer concept. One could question whether the use of energy efficiency measures displays enough activity to be considered as more than a normal consumer. However, energy efficiency measures reduce the demand for power, albeit on a long term and permanent basis, and are therefore an active intervention by consumers in the demand structure of the energy market. Consequently, energy efficiency measures fall within the extended scope of prosumption.(2)Ibid.
Energy efficiency measures are not necessarily a passive endeavour. Already in the early 1990’s, Lovins proposed the creation of a market for energy efficiency — the so-called ‘negawatt market’ — where the potential for energy savings could be traded.(3) Named after the ‘negawatt’, or negative watt, which expresses the amount of energy saved: Amory Lovins, ‘Negawatt revolution’ (1990) 27 Across the board 18. In this market-based logic, energy efficiency is not treated as a goal in itself, but as a means of closing the ‘energy efficiency gap’ between the current energy use and the optimal energy use. In this way, the energy efficiency market leads to an optimal allocation of resources.(4) Adam Jaffe and Robert Stavins, ‘The energy-efficiency gap: what does it mean?’ (1994) 22 Energy Policy 804.
The European Commission is becoming more accepting of the idea that energy efficiency is a resource in itself.(5) See higher (n 21). The proposed Energy Efficiency Directive confirms that energy efficiency should be treated as an energy source in its own right and that it should be able to compete on equal terms with generation capacity.(6) Preambule 2 Proposed Energy Efficiency Directive COM (2016) 761 final.