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Published in: Energy Efficiency 4/2014

01-08-2014 | Original Article

Why some electricity utilities actively promote energy efficiency while others do not—a Swiss case study

Authors: Yann Benedict Blumer, Martin Mühlebach, Corinne Moser

Published in: Energy Efficiency | Issue 4/2014

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Abstract

Electricity utilities are key players for promoting energy efficiency (EE) because of their close link to consumers. Utility-centered EE policy frameworks, such as white certificate schemes coupled to saving obligations, have been shown to be both effective and efficient in several US states and various European countries. In Switzerland, where such a policy framework is absent on a national level, large differences occur among utility providers in their activities to promote EE. This study sheds light on this issue, using data from a survey of Swiss utilities (N = 114). A two-step cluster analysis was used to identify three groups of utilities. It is based on these utilities’ evaluation of 20 incentives and constraints for promoting EE. An analysis of variance found significant differences between the clusters regarding size (number of employees), share of production, number of large clients, and—most importantly—level of activity in implementing EE programs. The most active cluster comprises mainly larger utility companies, which primarily see the incentives of promoting EE. The passive cluster consists of small companies, focusing primarily on constraints. There is also an ambivalent cluster. It includes middle-sized companies, which see both clear incentives and many constraints – mainly a lack of human and capital resources—for engaging in EE. Based on our analysis, we conclude that due to the large heterogeneity of Swiss utilities, there is a need for contextualized policies targeting different types of utilities in order to effectively promote EE.

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Appendix
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Footnotes
1
In this article, we use the term utilities to refer to electricity companies with a retail function, regardless of whether they are as well energy producers or provide other utility services, such as gas or water.
 
2
Although Cooremans does not explicitly address energy utilities but rather focuses on companies in general, her argument is still valid, as EE programs might be a strategic means for utilities to set them apart from competitors.
 
3
We estimated this number based on data published in the annual reports and on the websites of these utilities.
 
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Metadata
Title
Why some electricity utilities actively promote energy efficiency while others do not—a Swiss case study
Authors
Yann Benedict Blumer
Martin Mühlebach
Corinne Moser
Publication date
01-08-2014
Publisher
Springer Netherlands
Published in
Energy Efficiency / Issue 4/2014
Print ISSN: 1570-646X
Electronic ISSN: 1570-6478
DOI
https://doi.org/10.1007/s12053-013-9249-z

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