Secretary General, Regulatory Authority for Electricity and Gas (AEEG), Italy
Track B, Session 5
Carlo Crea is the Secretary General of the Italian Regulatory Authority for Electricity and Gas (AEEG).
"Market liberalisation, end-use energy efficiency and regulation: the experience with Tradable Energy Efficiency in Italy"
Market liberalisation in European Union (EU) Countries led to new formal regulatory structures at the same time as concerns about energy security and climate change were growing. Market failures and other barriers to energy efficiency result in some cost-effective opportunities for end-use energy efficiency improvement not occurring within a free market. This causes economic inefficiency and results in higher energy costs, increased carbon emissions and greater risks to energy security. Intervention to address these issues in competitive energy supply markets is therefore justified, but should be transparent and equitable between different actors in the market. Energy efficiency obligations on energy companies coupled with a tradable white certificates market can achieve these goals. The presentation will outline the experience of such a policy package in Italy, focusing on the distinctive feature of the Italian scheme since its introduction in 2001 (e.g. policy target, key role of the market component of the scheme, strong additionality rule, wide sector coverage, regulated cost-recovery mechanism and non-compliance regime), on its outcomes since its inception in 2005 as well as on some key regulatory issues.