Appendix 3

Appendix 3 – Market Opportunities and Barriers vs Programmes Strengths and Weaknesses

Market Opportunities

Need to meet Kyoto targets
Growing focus on market-based mechanisms
Liberalised markets create new players, new services and new opportunities
The ESCO market is growing
DSM and EE in line with local environmental concerns and goals
Energy demand must be reduced in many countries
Price risks are increasing thus emphasising real-time pricing and load responses
New (EU) directive on Demand management and energy services
Grid security requires demand response

Market Barriers

Link between EE/DSM and liberalised energy markets is unclear
Market and actors are fragmented and no one takes responsibility for the complex whole
Insulation of customers from location and time of use cost signals
Energy market reform (liberalisation) and abrogation of government responsibility for supply and efficient use of resources
Little interest by utilities and regulators in DSM
Customer driven DSM/EE programs are minimal

Programme Strengths

Excellent potential to share what works and what does not
Ability to conduct collaborative and/or innovative studies
Capability to contribute to or influence policies in participating countries
Ability to assemble excellent study teams
ExCo and Experts have intellectual capability to use tools developed in Tasks
ExCo members are committed to work collaboratively
Strong network of Experts
Programme addresses the key issues of interest in the participating countries

Programme Weaknesses

Program funding is limited and getting harder to secure
Significant effort is required to fund each new Task
Difficult to involve and fund Experts with necessary time and skills
Difficult to ensure commitment from Experts
Countries unable or unwilling to cover their OAs costs
Tasks take too long to complete
ExCo members do not seem to consult with their Experts and organisations prior to the meetings
Considerable time required to start new Task and process is complicated