Energy Provider-Delivered Energy Efficiency: A global stock-taking based on case studies

Energy providers will play a pivotal role over the coming decades in managing energy demand growth and reducing greenhouse gas (GHG) emissions. The IEA projects that the power sector will deliver up to two-thirds of cumulative emissions reductions under the climate-stabilizing 450 ppm scenario, by switching to less carbon-intensive generation, improving operational efficiency, and reducing demand. The IEA has estimated that in 2011 energy providers spent almost USD 12 billion on energy saving activities. Most of this spending is from state and provincial efforts in North America, where some energy providers spend as much as 3% of their revenue on energy efficiency. In the UK, annual spending by energy retailers under the Carbon Emissions Reduction Target supplier obligation has been $1.6 billion per year, while the Italian White Certificates scheme accounted for over $260 million annually in 2010 and 2011. Australian energy providers delivered another $100 million in spending, while Brazilian energy providers spend about USD 250 million each year.