Report Open Access

The Boundary Cases for the P4P Rates

Arturo Lapietra; Vincenzo D'Agostino; Benedetto Grillone

This report provides a concrete classification and evaluation of the various EEMs which provides the foundations for proposing a definition of a P4P rate that is transparent and a non-performance-based incentive that can be offered to energy provider and, it identifies the market value of energy savings from the energy providers’ perspective.

The transition of the electricity system towards complete decarbonisation requires the full integration of energy efficiency measures (EEM) to reduce CO2 emissions on a long-term basis while avoiding the need for costly capacity and network upgrades.

Successful integration of the EEM is reliant upon developing a detailed knowledge of the various measures.  Therefore, considering the value that the implemented measures bring to the overall energy system is a crucial factor when dealing with a pay-for-performance (P4P) scheme.

Learn more about the classification for P4P schemes in this public deliverable.

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