La promozione dell'efficienza energetica in Italia

The promotion of energy efficiency in Italy (by Luigi De Paoli e Luca Bongiolatti) - ABSTRACT: In 2004 Italy introduced an obligation for electricity and gas distribution companies to reach specific objectives regarding the improvement of energy efficiency in final energy consumption. The scope of the provision is to promote investments in energy efficiency in order to meet the greenhouse gases reduction target set by the Kyoto protocol. The adoption of binding targets of energy efficiency will also lead to the development of an energy services market, modifying the traditional relation between energy dealers and final consumers, thus leading to a more efficient use of the available resources. Similar mechanisms have already been applied in other European countries (as France and United Kingdom) and will be likely introduced in other countries with the implementation of European Directive on energy end-use efficiency and energy services. This paper describes and analyzes both the measures adopted in Italy and the results obtained after the first year of operation of the mechanism. The paper is divided in six different sections. In the first part we highlight the main problems related to the development of system based on tradable white certificates. In the second part we provide a brief description of the Italian regulatory context. In the third part there is an economic analysis of investments in energy efficiency. The fourth part considers the different options that distribution companies face in order to reach the energy efficiency targets. The fifth part shows the results obtained after the first year of operation of the mechanism. Finally, we propose some possible modifications to the scheme adopted in Italy considering the results obtained and the alternative solutions already applied in France and United Kingdom. JEL classification: Q400, Q480