The latest IEA Policy Pathway report, “Joint public-private approaches for energy efficiency finance”, aims to support policy makers at all levels of government and other relevant stakeholders who seek practical ways to develop, support, monitor or modify energy efficiency policies in their home country and abroad.
This publication proposes a policy pathway that supports the development and implementation of PPPs (public-private partnerships) comprising ten critical steps in the following four stages.
- Plan: policy makers begin the PPP process by identifying the market segment where energy efficiency needs to be improved, choosing among the different public-sector intervention approaches available, and structuring an agreement between the public and private partners.
- Implement: the public partner defines the implementation steps and manage the implementation process, while the private-sector partner takes the lead in implementation of the PPP mechanism, making adjustments as necessary to meet objectives and respond to market changes.
- Monitor: the public partner manages the contract to ensure delivery of services (including authorising payments and maintaining records) and assesses performance relative to the standards defined in the PPP agreement.
- Evaluate: an independent third-party organisation evaluates the PPP design and implementation to assess its success in meeting objectives, factors affecting performance, and key lessons learned.
Countries around the world have accumulated considerable experience with PPPs for energy efficiency financing, which should be useful for other policymakers setting up such programmes. Case studies included in the Policy Pathway report should provide insights along the policy pathway for others. Nonetheless, to be effective in addressing the particular financing barriers to energy efficiency in a given country, PPPs must be adapted and customised to local legislative, regulatory, institutional, financial and energy services market conditions.