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Can Long-Term Agreements Conquer the World?


July 28, 2009

Proceedings Paper

Authors:

Robert Kool, SenterNovem, Miett Tajthy, SenterNovem

Description:

In the Energy End-Use Efficiency and Energy Services Directive of the EU (ESD), Long- Term Agreements (LTAs) are mentioned as a tool to achieve energy efficiency and CO2 reduction. The Netherlands has 15 years experience with this instrument, which primarily targets industry. In order to promote energy efficiency beyond their borders, the Netherlands has and still is participating in a number of projects that introduce the agreements in other countries. Among them are the EU funded projects BESS, LTA Uptake, ExBess and VA-China.

The Netherlands also participate in a number of bilateral projects with European countries in transition to promote opportunities for LTAs. Up until now, only two projects have been completed. It will take some years before all projects are completed and evaluated. Meanwhile the call to act and deliver on energy efficiency is strong. We analyzed the experience of projects that are currently running by reviewing the status reports and other available data, and compared them with the results of completed projects (including the long running Dutch programs).

We will describe the areas that have to be developed to get maximum benefit from the LTA's. Data clearly indicates the remaining high potential for efficiency improvement. Recent experience also shows a growing number and variety of providers of energy services, meaning that the market is investing in efficiency improvement. Both analyses and conclusions are drawn from the scope of policy implementation.