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Classical evaluation
                       frameworks for energy
                         efficiency programs


  IEA – SEAI Workshop on “Evaluating the Multiple Benefits of Energy Efficiency”
  14th March 2012, IEA, Paris
  Mirjam Harmelink (Harmelink consulting)


Harmelink consulting       mirjam@harmelinkconsulting.nl   www.harmelinkconsulting.nl
Program/Policy Planning Cycle

          Policy                      Portfolio               Program
        Objectives                     Design                  Design




             Program Monitoring                            Program
               and Evaluation                           Implementation

Harmelink consulting    mirjam@harmelinkconsulting.nl      www.harmelinkconsulting.nl
Types of evaluation carried out in the field of
              energy efficiency programs
   Evaluation          Description                               Uses
   type
   Impact              Quantifies direct and indirect            Determines amount of energy
   evaluation          benefits of the program/policy            savings, emission reductions and in
                                                                 some cases possible co-benefits
   Process             Indicates how the                         Identifies how program/policy
   Evaluation          program/policy implementation             process can be improved
                       procedures are performing from
                       both administration and
                       participant perspective
   Market Effects      Indicates how the overall supply          Determines changes that have
   Evaluation          chain and market have been                occurred in markets and whether
                       affected by the program                   they are sustainable with or without
                                                                 the program/policy
   Cost-               Quantifies the cost of program            Determines whether the energy
   effectiveness       implementation and compares               efficiency program/policy is a cost-
   evaluation          program/possible benefits                 effective investments as compared to
                                                                 other programs and energy supply
                                                                 resources
  Source: National Action Plan for Energy Efficiency Leadership Group (2007)
Harmelink consulting             mirjam@harmelinkconsulting.nl                 www.harmelinkconsulting.nl
What do we typically evaluate in impact evaluations?
                                 To what extent did policy             What was the cost
                                     instruments make a               effectiveness of the
       To what extent            difference in meeting the            policy instruments,
      are policy targets          targets compared to the              and could targets
         being met?             situation without the policy          have been reached
                                    instruments in place?             against lower costs?


                       Target achiev. /                Impact/             Efficiency
                        Effectiveness               Effectiveness


   Ex ante                                                                              €

   Ex post                                                                               €
                                                4


Harmelink consulting         mirjam@harmelinkconsulting.nl          www.harmelinkconsulting.nl
Main challenge: setting the baseline
                                                                             With policies
   Energy savings/CO2 reductions




                                                                                           Net policy
                                                                                           impact




                                                                                                                   Gross Change
                                                                      Baseline
                                                                      (no policies)
                                                                                            Autono-
                                                                                            mous
                                                                                            change
                                   Policy launch                             Measurement
Harmelink consulting                         mirjam@harmelinkconsulting.nl            www.harmelinkconsulting.nl
Methods applied in policy evaluation
      Top down methods
            – End use or sector indicators
            – Economic / econometric modelling


      Bottom-up methods
            –   Direct measurement
            –   Analysis of energy billing or sales
            –   Modelling (based on stock and market statistics and surveys)
            –   Enhanced engineering estimates
            –   Mixed deemed and ex-post estimate
            –   Deemed estimate
            –   Theory based policy evaluation
            –   Logic modelling
            –   Equipment indicators
Harmelink consulting         mirjam@harmelinkconsulting.nl   www.harmelinkconsulting.nl
Energy efficiency programs often have multiple objectives

                                  Other


                       Poverty control


       Competiveness/employment


                            Innovation


                       CO2-reduction


                Energy savings only                                            Number of case studies

                                          0          2          4          6          8            10     12
  Source: Ecofys, Lund University, Politecnico Milano, Wuppertal Institute (2007) www.aid-ee.org

Harmelink consulting                 mirjam@harmelinkconsulting.nl                     www.harmelinkconsulting.nl
Examples on exploring (co-)benefits (1)




                                                       Source: DECC (2009)
Harmelink consulting   mirjam@harmelinkconsulting.nl         www.harmelinkconsulting.nl
Examples on exploring (co-)benefits (2)




  Source: RIVM, ECN (2010) Co-impacts of climate policies on air polluting emissions in the
  Netherlands
Harmelink consulting             mirjam@harmelinkconsulting.nl                 www.harmelinkconsulting.nl
Main challenges
      • Developing good evaluation framework > linking
        energy efficiency improvements and co-benefits in a
        plausible way (theory)
      • Developing a sound baselines
      • Defining suitable indicators
      • Results should spur the right discussion > but
        remember
            – Tinbergen Rule: “for each and every policy target there
              must be at least one policy tool. If there are fewer
              tools than targets, then some policy goals will not be
              achieved”




Harmelink consulting      mirjam@harmelinkconsulting.nl   www.harmelinkconsulting.nl
Thank you for your attention!

                       For more information please contact
                                  Mirjam Harmelink
                         mirjam@harmelinkconsulting.nl
                                  T: +31 6 42342483



                                                  11
Harmelink consulting         mirjam@harmelinkconsulting.nl   www.harmelinkconsulting.nl

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Classical Evaluation Frameworks for Energy Efficiency Programs

  • 1. Classical evaluation frameworks for energy efficiency programs IEA – SEAI Workshop on “Evaluating the Multiple Benefits of Energy Efficiency” 14th March 2012, IEA, Paris Mirjam Harmelink (Harmelink consulting) Harmelink consulting mirjam@harmelinkconsulting.nl www.harmelinkconsulting.nl
  • 2. Program/Policy Planning Cycle Policy Portfolio Program Objectives Design Design Program Monitoring Program and Evaluation Implementation Harmelink consulting mirjam@harmelinkconsulting.nl www.harmelinkconsulting.nl
  • 3. Types of evaluation carried out in the field of energy efficiency programs Evaluation Description Uses type Impact Quantifies direct and indirect Determines amount of energy evaluation benefits of the program/policy savings, emission reductions and in some cases possible co-benefits Process Indicates how the Identifies how program/policy Evaluation program/policy implementation process can be improved procedures are performing from both administration and participant perspective Market Effects Indicates how the overall supply Determines changes that have Evaluation chain and market have been occurred in markets and whether affected by the program they are sustainable with or without the program/policy Cost- Quantifies the cost of program Determines whether the energy effectiveness implementation and compares efficiency program/policy is a cost- evaluation program/possible benefits effective investments as compared to other programs and energy supply resources Source: National Action Plan for Energy Efficiency Leadership Group (2007) Harmelink consulting mirjam@harmelinkconsulting.nl www.harmelinkconsulting.nl
  • 4. What do we typically evaluate in impact evaluations? To what extent did policy What was the cost instruments make a effectiveness of the To what extent difference in meeting the policy instruments, are policy targets targets compared to the and could targets being met? situation without the policy have been reached instruments in place? against lower costs? Target achiev. / Impact/ Efficiency Effectiveness Effectiveness Ex ante € Ex post € 4 Harmelink consulting mirjam@harmelinkconsulting.nl www.harmelinkconsulting.nl
  • 5. Main challenge: setting the baseline With policies Energy savings/CO2 reductions Net policy impact Gross Change Baseline (no policies) Autono- mous change Policy launch Measurement Harmelink consulting mirjam@harmelinkconsulting.nl www.harmelinkconsulting.nl
  • 6. Methods applied in policy evaluation Top down methods – End use or sector indicators – Economic / econometric modelling Bottom-up methods – Direct measurement – Analysis of energy billing or sales – Modelling (based on stock and market statistics and surveys) – Enhanced engineering estimates – Mixed deemed and ex-post estimate – Deemed estimate – Theory based policy evaluation – Logic modelling – Equipment indicators Harmelink consulting mirjam@harmelinkconsulting.nl www.harmelinkconsulting.nl
  • 7. Energy efficiency programs often have multiple objectives Other Poverty control Competiveness/employment Innovation CO2-reduction Energy savings only Number of case studies 0 2 4 6 8 10 12 Source: Ecofys, Lund University, Politecnico Milano, Wuppertal Institute (2007) www.aid-ee.org Harmelink consulting mirjam@harmelinkconsulting.nl www.harmelinkconsulting.nl
  • 8. Examples on exploring (co-)benefits (1) Source: DECC (2009) Harmelink consulting mirjam@harmelinkconsulting.nl www.harmelinkconsulting.nl
  • 9. Examples on exploring (co-)benefits (2) Source: RIVM, ECN (2010) Co-impacts of climate policies on air polluting emissions in the Netherlands Harmelink consulting mirjam@harmelinkconsulting.nl www.harmelinkconsulting.nl
  • 10. Main challenges • Developing good evaluation framework > linking energy efficiency improvements and co-benefits in a plausible way (theory) • Developing a sound baselines • Defining suitable indicators • Results should spur the right discussion > but remember – Tinbergen Rule: “for each and every policy target there must be at least one policy tool. If there are fewer tools than targets, then some policy goals will not be achieved” Harmelink consulting mirjam@harmelinkconsulting.nl www.harmelinkconsulting.nl
  • 11. Thank you for your attention! For more information please contact Mirjam Harmelink mirjam@harmelinkconsulting.nl T: +31 6 42342483 11 Harmelink consulting mirjam@harmelinkconsulting.nl www.harmelinkconsulting.nl