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Energy Efficiency First (EE1st) means balancing end-use energy efficiency and other demand-side resources with energy generation, networks and other supply-side resources from a societal cost viewpoint. In parallel with its evolving legal status in EU legislation, a growing literature discusses policy approaches to help implement the principle. However, a theoretically substantiated framework for these policies is not yet established. This paper aims to review and categorize dedicated policy approaches for the implementation of the EE1st principle in the EU. First, we provide a theoretical background to policy design for EE1st by referring to market failure theory and explaining how policies addressing EE1st differ from traditional energy efficiency policies. Second, we link theory and practice by taking stock of potential policy approaches for EE1st, attaching them to individual market failures, and thus providing a comprehensive catalogue of policies for moving from principle to practice. The paper shows that there is no single policy lever for implementing the principle. Instead, EE1st requires a broad policy response that goes beyond the established energy efficiency policy portfolio. We conclude by identifying promising innovative policies warranting more detailed assessment, including electricity market reforms moving towards marginal cost pricing, performance-based regulation for network companies and more.

3rd Report prepared by The World in 2050 initiative

The new report constitutes a step towards achieving the objective of making the Efficiency First (E1st) principle operational in EU decision making. The report includes 16 examples of how E1st has been applied in different contexts, from promoting the fabric first approach in buildings, enabling demand response to compete on electricity markets, requiring demand-side resources to be better taken into account in energy planning, to demand flexibility in district heating and avoiding new power plants. Each example details the implementation bodies, how the E1st principle has been implemented and the related barriers, replicability and scalability potential. The report also provides an overview about why E1st has been implemented, how the approach to E1st can be categorized, and what lessons can be learned from these experiences. The examples show policymakers, regulators, and energy policy actors that the concept of E1st can be implemented and can provide various benefits to the energy transition.

Building on its previous reports, investigating the status of the ESCO market in the EU, the Joint Research Centre (JRC) reviewed the efforts made by Member States to stimulate the market of energy services in the broad sense, focusing on the compliance with Article 18, and has collected and updated current knowledge on the ESCO markets, in particular the size of the national markets with their main characteristics during the period 2015-2018. The findings show new developments since the last report published by the JRC in 2017., JRC.C.2-Energy Efficiency and Renewables

Energy efficiency delivers energy savings and therefore energy cost savings, as well as direct environmental benefits. Besides, as an indirect effect, it has smaller or larger consequences on other economic values. This report reviews current knowledge about the impact of energy efficiency improvements on the value of buildings. In particular, the methodology that can be applied to quantify the increase or decrease of property value linked to the energy performance and sustainability components is explained and different methods are compared. Secondly, the report demonstrates the impact of energy efficiency on the payment default risk namely the link between energy efficiency investment and ability of borrowers to repay their loans., JRC.C.2-Energy Efficiency and Renewables

Building on its previous reports, investigating the status of the ESCO market in the EU, the Joint Research Centre (JRC) reviewed the efforts made by Member States to stimulate the market of energy services, and in particular the market for EPC, during the period 2014-2016 and the current size of the ESCO market. The findings in this report show new developments since the last report published by the JRC in 2014 for the period 2010-2013., JRC.C.2-Energy Efficiency and Renewables

Through this assessment, the authors and the United Nations Environment Programme (UNEP) secretariat are providing an objective evaluation and analysis of the pan-European environment designed to support environmental decision-making at multiple scales. In this assessment, the judgement of experts is applied to existing knowledge to provide scientifically credible answers to policy-relevant questions. These questions include, but are not limited to the following:• What is happening to the environment in the pan-European region and why?• What are the consequences for the environment and the human population in the pan-European region?• What is being done and how effective is it?• What are the prospects for the environment in the future?• What actions could be taken to achieve a more sustainable future?