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Initial Recommendation #2: Rethinking the Energy Saving Obligation: Beyond Payback Periods

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 Ivan
(@ivan)
Posts: 88
Member Admin Registered, Motor Policy Forum
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The Energy Saving Obligation in the Netherlands currently mandates energy-saving measures with a payback period (PBT) under five years. While effective, this criterion may exclude projects with longer-term benefits. A shift in evaluation metrics, such as incorporating the Internal Rate of Return (IRR), could unlock additional opportunities for sustainable improvements.

Proposed Changes:

  1. Considering IRR: Allow projects with high IRR but longer PBTs to qualify under the obligation, ensuring long-term energy and cost savings.
  2. (or in alternative) Revise current PBT threshold: Conduct an evaluation to assess the effectiveness of the 5-year PBT threshold and if needed make adjustments based on impact data.

This topic was modified 12 months ago by Ivan
 
Posted : 05/12/2024 4:48 pm
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