Chairman’s Report 2015

At the time of writing the Annual Report, the COP21 meeting in Paris is taking place.

To quote Bob Dylan “the times they are a changing”. Every professional in the climate and energy world knows that we have to reduce and do it fast and do it drastically.

The IEA Technology Network, which celebrated its 40th anniversary this year, brings together thousands of researchers to work on realistic solutions to make change happen.

The new IEA Executive Director has pledged to mine the contributions of the IEA Technology Collaboration Programmes, of which the IEA DSM IA is one. Our group of international experts will now be joined by those from Nova Scotia, Canada and soon from Ireland, thus enhancing our work on energy efficiency and supporting its important role in the energy mix.

Energy efficiency is the most important “fuel” as shown below in the IEA graph from the report, Energy Technology Perspectives (ETP2012). In this graph the energy use of eleven highly industrialized countries is shown. The blue wedge shows where we would have been without efficiency improvement.


Coming up with ideas, and eventually technologies, to improve efficiency are great results in themselves, but bringing them to the market is a whole other ballgame. It is a necessity to collaborate with industry. And that is what the IEA Technology Collaboration Programmes do. For the IEA DSM IA this collaboration is taken beyond research work to membership – with the Copper Institute as an important Sponsor member.

But we need more, much more, to achieve DSM goals. Within this framework of Implementing Agreements, the IEA DSM IA holds a unique position. We strongly believe we will have to combine different disciplines to get the pace we need.

In this year’s annual report you can read about the details of our work, but the global picture requires combining the disciplines, being technology, social sciences and business.

As for technology, it seems without a doubt that we are heading towards an energy infrastructure 2.0. Some think it will be part of the “worldwide web of things”, others don’t go that far, but one thing is sure – distributed networks will be important elements in the future energy infrastructure. In our Task 17: Integration of Demand Side Management, Energy Efficiency, Distributed Generation and Renewable Energy Sources, we are contributing to these developments, and we are doing so in collaboration with IEA ISGAN.

In Task 24: Behaviour Change in DSM and Task 25: Business Models for a More Effective Market Uptake of DSM Energy Services, we are showing how the knowledge of behaviour can help us create change. Not only a change in personal actions to use energy wisely, but also to accept changing technology as a “supporting act” to these changes. Here the ever-growing possibilities of ICT are major contributions. In terms of business, we are looking at the theoretical side by exploring the knowledge of multiple benefits and making them operational for business decisions as well as smart practical business solutions for energy services.

This year our annual report will change slightly. Instead of being a major source of information on our work, the report will serve to show accountability to our members and a nice introduction to interested parties.

To learn more about the IEA DSM IA visit our website where you will find numerous publications and a monthly online webinar provided by our DSM University and sponsored by Leonardo Energy

Rob Kool, Chairman


During 2015 the following Task Phases were completed:

  • Task 16: Phase 3, Competitive Energy Services
  • Task 24: Phase I, Behaviour Change in DSM: From Theory to Practice


The major accomplishments of the Tasks that were on-going in 2015 are summarised below.

The DSM University is a Leonardo ENERGY project that is targeted at:

  • Policymakers interested in learning about the costs and benefits of Demand Side Management and its impact on energy systems.
  • Managers keen to learn more about Organisations, Governance, Planning, Programme Structuring and Implementation Methods.
  • Programme Implementers wanting “Tricks of the Trade”.

The DSM University (DSMU) is built on 20 years of experience of the IEA DSM Implementing Agreement. DSMU provides access to the knowledge developed in the agreement in a structured way. In addition, DSMU aims to be a community of practice on DSM themes.

At the heart of the DSM-U are webinars. These are developed through our own material and with invited material from external specialists in research and business, and take place monthly.

During 2015, nine webinars were held:

Task 16 – Competitive Energy Services (Energy Contracting, ESCo Services) Phase 43: Energy Efficiency and Demand Response Services and Phase 4: Life-Cycle Cost ‘Deep Retrofit’; Simplified M&V; (Crowd)-Financing & ES Taxonomy.

Task 16 Phase 3 started in July 2012 and was finalised in June 2015. The goals of Task 16 – Phase 3 were to contribute to the development and implementation of innovative and competitive energy efficiency and demand response services. Task 16 Phase 4 started in July 2015 and will end in June 2018.


Task 16 is working to contribute to the know-how, experience exchange as well as project and market development of performance-based energy services.

  • Sustain a well established IEA DSM Energy Service Expert Platform for exchange and mutual support of experts, partners and invited guests;
  • Support and follow up country specific National Implementation Activities (NIAs) in order to foster ESCo project and market development;
  • Design, elaborate and test innovative energy and demand response services and financing models and publish them (Think Tank);
  • Use the Task’s Energy Service Expert Platform as a competence centre for international and national dissemination and consultancy services (e.g. workshops, coaching, training…) and to contribute to the “DSM University”.

The underlying goal is to increase understanding of performance-based ES as a ‘delivery mechanism’ to implement energy efficiency policy goals and projects: Pros and cons, potentials, limitations and added values of ESCo products in comparison to in-house implementation..

Key accomplishments in 2015:

During 2015 the Think Tank has worked on a variety of topics which have led to publications and presentations at various national and international events. Some of it is work in progress.

Outlines of current or planned Think Tank topics include:

  • Discussion paper: Demand Response Services: Economic Feasibility Model and Case Study for Austria
  • Simplified measurement & verification + quality assurance instruments for energy, water and CO2 savings

Furthermore the following is work in progress:

  • Business models for comprehensive building refurbishment (‘Deep Retrofit’): Further development of an economic feasibility evaluation tool including sensitivity analyses for deep retrofit application. Application of the tool in several case studies, e.g. in Denmark, Germany and Austria. First bankable project calculations performed. Work in close cooperation with IEA ECB Annex 61
  • Drafting of a Taxonomy paper on Energy Services to be published in a peer-reviewed journal in cooperation with Linköping University
  • Work kicked off on Crowd-Financing for Energy efficiency and renewable investments: What can Crowd-Financing contribute? Access to CAPEX for smaller projects in SME, communities? Bridge the mezzanine financing gap? Reduce risks and transaction cost? In cooperation with GIZ
  • Drafting of a paper on Simplified measurement & verification together with EfficiencyOne (and others?) to be published in a peer-reviewed journal

This work will be continued and finalized in Phase 4.

During 2015, Task 16 has produced a number of publications and given presentations at various conferences and workshops to disseminate and discuss the Task results. Furthermore, stakeholder workshops were organised in conjunction with each project meeting to discuss Energy-Contracting topics relevant to the host country of the meeting.

For more information on Task 16 

Task 17 – Integration of Demand Side Management, Distributed Generation, Renewable Energy Sources and Energy Storages – Phase 3

Task 17 Phase 3 started in May 2014 and addresses the current role and potential of flexibility in electric power demand and supply of systems of energy consuming/producing processes in buildings (residential, commercial and industrial) equipped with DER (electric vehicles, PV, storage, heat pumps …) and their impacts on the grid and markets. The interdependence between the physical infrastructure of the grid, governed by momentary power requirements, and the market side, governed by energy requirements, will also be looked upon. The scalability and applicability of conducted and on-going projects with respect to specific regional differences and requirements will be explored.

The main objective of Task 17 is to study how to optimally integrate flexible demand with Distributed Generation, Energy Storages and Smart Grids, thereby increasing the value of Demand Response and Distributed Generation, decreasing the problems caused by intermittent distributed generation and reduction of the emissions of the system. The Task will look at integration issues from the system point of view on the grid, market, customer and communities.

The Subtasks in Phase 3 (in addition to Subtasks 1- 4 in Phase 1, and Subtasks 5 – 9 in Phase 2 will be:

Subtask 10: Role and Potentials of Flexible Prosumers

Subtask 11: Changes and Impacts on grid and Market Operation

Subtask 12: Sharing Experiences and Finding Best Practices

Subtask 13: Conclusion and Recommendations
Key accomplishments in 2015

Subtask 10: (1) an international public workshop (Workshop on DSM: Potentials, Implementation and Experiences) has been organised to discuss potentials and flexibility of consumers; (2) A special session during IEEE Power Tech 2015 has been prepared; and (3) a near-to-final draft version of the deliverable has been prepared together with the experts giving their view on the objectives and a discussion on standardisation developments in the field.

Subtask 11: (1) a layout of the planned deliverable has been prepared together with the experts. This will be further developed during the end of 2015 and beginning of 2016.

Subtask 12: (1) an international public workshop (Workshop on DSM: Potentials, Implementation and Experiences) has been organized to discuss implementations and experiences of DSM and DR projects; and (2) a comprehensive list of recent studies and project developments has been started and evaluated in 2014. In 2015 this material has been further extended also related to the session in Eindhoven.

For more information about Task 17

Task 24 – Behaviour Change in DSM Phase II ­– Helping the Behaviour Changers

Task 24 Phase I started its operation in June 2012 and was finalised in April 2015. A 3-year Task extension (Phase II) started in April 2015 and will be finalised in 2018.

The main objective of this Task is take good theory (from Phase I) into practice to allow ‘Behaviour Changers’ (from government, industry, intermediaries, research and the third sector) to:

  • Engage in an international expert network (‘THE EXPERTS’)
  • Develop the top 3 DSM priorities to identify the most (politically, technologically, economically and societally) appropriate DSM themes to focus on (‘THE ISSUES’)
  • Identify and engage countries’ networks in the 5 Behaviour Changers sectors for at least
one of the top 3 DSM themes to develop a collective approach (‘THE PEOPLE’)
  • Use and test a Collective Impact Approach to develop shared methodologies, guidelines and a common ‘language’ based on narratives to aid Behaviour Changers’ decision making of how to choose the best models of understanding behaviour and theories of change (a ‘toolbox of interventions’) (‘THE TOOLS’)
  • Standardise how to evaluate behaviour change programmes ‘Beyond kWh’ and ‘Beyond Energy’ including multiple benefits analysis (‘THE MEASURE’)
  • Collate national learnings into an overarching (international) story to understand, compare and contrast the different behaviour change approaches, risks and opportunities and which recommendations can be universally applied (‘THE STORY’).

Task 24 Phase II is divided into the following Subtasks

Subtask 0: Admin
Subtask 5: Social media expert platform
Subtask 6: Understanding Behaviour Changer Practices in Top DSM Areas (‘The Issues’)
Subtask 7: Identifying Behaviour Changers in these areas (‘The People’)
Subtask 8: Developing a toolbox of interventions to help Behaviour Changers (‘The Tools’)
Subtask 9: Standardising Evaluation beyond kWh (‘The Measures’).

Key accomplishments in 2015

  • Progress in the last year was satisfactory, we now have >235 experts on the expert platform and professional films from all presentations of the Graz and Toronto workshops online. All other final reports are on the IEA DSM website, which has been updated for both Phase I and Phase II. Google Analytics show continued utilisation of the Ning website, especially after broadcast emails with links to all new content are sent. We continue having great successes in matchmaking experts, with several spending time at each others’ Universities, for example, or developing new research collaborations.
  • Subtask 6 has been kicked off with workshops in Toronto in May and October, Stockholm in June, New Zealand in September and the ECEEE and BECC conferences in June and October, respectively. We have started collecting lists of DSM interventions and energy efficiency and behaviour priorities in each of these countries. We have discussed the top 3 issues in each of these countries during workshops. In addition, work on this Subtask has started in the Netherlands where top issues are being discussed and a selection is made to focus on SMEs.
  • Behaviour Changers have been identified for the top issues decided on in Subtask 6 for Canada, Sweden and New Zealand. Their sector stories have been told during workshops and we have initiated deep discussions around relationships, mandates, stakeholders, restrictions and value propositions for each of the Behaviour Changers using the ‘Behaviour Changer Framework’.
  • Some work on continued development of the evaluation tools from Subtask 3, Deliverables 3A and B has taken place. Storytelling in Task 24 has been published and presented, to a lot of acclaim, at the eceee summer study. We are currently working on a Special Edition Issue on Storytelling for the Journal of Energy and Social Science Research. The Task 24 monitoring and evaluation work was also presented at the ECEEE summer study and further evaluation work has been published in the Energy Efficiency Journal. A factsheet on multiple benefits in the building retrofit sector has been created (in Dutch). Sector stories in Canada, New Zealand and Sweden have been collected as well as the Behaviour Changers’ intervention tools in each of these sectors. Multiple benefits and metrics of the issue decided in ST 6 have been collected for Canada.
  • Karlin (the Principal Investigator of this Subtask) et al have published a paper at the IEPPEC conference in August that outlines the basics of the Beyond kWh toolkit they are developing for ST 9. It is co-funded to the tune of US$100,000 by PG&E and Southern California Edison and will be tested and validated in our Task 24 countries in 2017.

For more information about Task 24

Task 25 – Business models for a more Effective Market Uptake of DSM Energy Services

Task 25 focuses on identifying existing business models and customer approaches providing EE and DSM services to SMEs and residential communities, analysing promising effective business models and services, identifying and supporting the creation of national energy ecosystems in which these business models can succeed, provide guidelines to remove barriers and solve problems, and finally working together closely with both national suppliers and clients of business models. The longer-term aim of this Task is to contribute to the growth of the supply and demand market for energy efficiency and DSM amongst SMEs and communities in participating countries.

The objectives of Task 25 are:

(1) Identify proven and potential business models for energy services in different countries, with special focus on (how to create conducive) market dynamics and policies in different countries

(2) Analyse acceptance and effectiveness of these energy services and their business models in creating lasting load reduction, shifting or generation and other non-energy benefits and in creating a market

(3) Research success and failure factors in 9 building blocks of business models + market dynamics and policies

(4) Develop a canvas for energy service business models able to mainstream and upscale and disseminating it through national workshops

(5) Creating roadmaps with necessary policies and strategies of different stakeholders to encourage market creation and mainstreaming of business models in different countries

(6) Creating and maintaining a digital platform for shared learning, best practices and know-how with national sub departments focused on bringing knowledge to the national market, including banks and other funders!

(7) Develop a database including useful contractual formats, business plans etc.

Key accomplishments in 2015:

  • The Task identified country specific suppliers, clients, and their stakeholder networks for the Netherlands, Sweden, Switzerland, Austria and established were relevant, national advisory expert networks.
  • The focus of both services, target groups and typology of business models was narrowed down, and how the different parameters of success of business models and services will relate to each other in the analysis was clarified. A selection criteria toolkit was developed concordantly.
  • A long-list overview of existing services and business models has been completed for all countries except Norway (joined later)
  • A shortlist overview of services completed for all countries except Norway.
  • A global analysis was performed by CREARA, hired by the ECI partner.
  • An individual analysis of all shortlisted cases is being performed, as well as the global analysis: (1) Deliverable 2 is being drafted for each country, using a format or template developed in close cooperation with all national experts; and (2) deliverable 3 is finished and ready for publication.

For more information about Task 25

Task 26 – Multiple Benefits of Energy Efficiency

Task 26 on Multiple Benefits for Energy Efficiency presented their Work Plan to the Executive Committee in October 2015. The Task was given the go-ahead and will start in February 2016. The Task will be run jointly with the IETS Implementing Agreement.

The objectives of the proposed “Joint Annex” are the following:

  • Analytical toolbox. The first main objective is to provide businesses’ internal staff (energy managers, facility managers) as well as the external consultants advising them and public programmers, with an analytical tool to be used upstream to better identifying and assessing the MBs.
  • The second main joint Task objective is to provide practitioners and policy-makers with a date base, which will contain data collected worldwide (at least in all IEA member countries).
  • Marketing & Communication tool. The third main joint Task objective is to provide businesses’ internal staff, consultants advising them and public programmers with a communication tool, to be used to present MBs in a common and convincing way to decision-makers.
  • The fourth main objective is to actively disseminate information to policy-makers on MBs and on their contribution to activate the untapped potential of energy efficiency.

The DSM IA is well situated to take on the supervisory Task “Multiple Benefits in Action” and to do so in co-operation with other relevant IEA Energy IAs.

The overall work should cover all aspects of MBs as laid down in the IEA report “Capturing the Multiple Benefits of Energy Efficiency”:

  • (Economic development, employment, energy price changes, trade balance are mentioned. For DSM energy price-changes are of importance for the planning/regulation/market design and employment is for advocating programmes)
  • Public budget (Several of the issues are complicated and not crucial for DSM planning but since some programmes have an impact on, or are dependent on, tax structures and tax spending there is a need to cover some aspects)
  • Health and Well-being (In particular indoor climate is an important factor where collaboration can be sought also from other IAs. A particular problem here is the “split incentive” since investors seldom reap the benefits)
  • Industrial sector (In the same way as above collaboration should be sought with other IAs. Here the incentive cases are simpler)
  • Energy delivery (The IEA DSM IA has already covered Energy Efficiency Obligations (EEOs) in Task 22. There are however some aspects that need further investigation e.g. energy security and the possible monetisation thereof).

However, two important aspects have been pointed out:

1) purely macro benefits (such as macroeconomics impacts and public budget impacts at national level) have to be assessed at a global level, which seems to be out of the scope for DSM. In addition, energy delivery is firstly a supply and not a demand-side issue.

2) IEA Secretariat and IETS focus on the secondary sector and, within this sector, on energy-intensive industries (i.e. “process industry”, including refineries, bulk chemicals, iron & steel, pulp & paper, cement, food & beverage).

Therefore Task 26 will focus on three main Multiple Benefit (MB) categories:

  • MB for municipalities
  • MB for the business sector
  • Health & well-being benefits for organisations

The Task will be conducted over a period of 36 months, from 1 February 2016 to 31 January 2019.

For more information see New Initiatives on the DSM website.


Maintaining and increasing visibility of the Programme among its key audience continues to be a major activity of the Executive Committee. The principal tools available at present are the website, the Annual Report, the Spotlight Newsletter, the Programme Brochure, Task flyers and Social Media.

The Annual Report for 2014 was produced and distributed to approx. 250 recipients in January 2015. It pulled together in one substantial document an overview of the Programme’s activities and details on each of the individual Tasks.

The Spotlight Newsletter is produced in electronic format only and is designed as a printable newsletter. It is distributed by e-mail to a wide list of contacts. Executive Committee members forward the newsletter to those national contacts that used to receive the printed version or they print and distribute hard copies. Four issues were produced in 2015 and included articles on:

Issue 56 – March 2015

  • Task 25: Beware: Energy Efficiency Services in the Making!
  • Note from the Chairman: We’ve got a new logo!
  • DSM University
  • Task 24: Did You Behave As We Designed You To? – Monitoring and Evaluating Behavioural Change in Demand Side Management
  • South Korea:  Energy Paradigm Shifts from Supply to Demand
  • Italy: IEA National Day

Online version of the Spotlight Newsletter – Issue 56

Issue 57 – June 2015

  • Task 15 – Network Driven DSM: Impacts of Demand-Side Resources on Electric Transmission Network Planning
  • Note from the Chairman: We don’t Google
  • Task 17: Demand Flexibility – Dream or Reality
  • Task 16: A Role for Facilitators to Play – National Perspectives

Online version of the Spotlight Newsletter – Issue 57

Issue 58 – September 2015

  • Task 24 – Helping the Behaviour Changers
  • Note from the Chairman – Is DSM getting old?
  • Task 26 – Multiple Benefits of Energy Efficiency
  • Task 16 – New partners welcome in next phase of EE work
  • Task 16 – Facilitators – A role for facilitators to play – national perspectives

Online version of the Spotlight Newsletter – Issue 58

Issue 59 – December 2015

  • IEA Energy Efficiency reducing energy bills
  • Note from the Chairman – Which way are we heading?
  • Bright Business – Showcases best-in-class for energy efficiency
  • DSM University
  • Nova Scotia – energy efficiency: a source and a solution
  • New Publication – Austria: The Energy Hunt

Online version of the Spotlight Newsletter – Issue 59

At the beginning of a new Task, a flyer is produced to stimulate interest in participating in the Task. When the work is completed, a second flyer is produced reporting on Task activities.

Analysis of visits to the website shows a worldwide readership. In 2012, further improvements to the website were made by adding columns, a calendar, news, an articles section, and improvements were made to the workshops section.

The DSM Programme introduced social media to their website in 2010. The number of members on the DSM LinkedIn and Facebook groups and the Twitter account is increasing on a daily basis. Strong relationships with other social media energy efficiency mavens have continued to build in 2015 including the DSM Programme being showcased in the largest industrial energy efficiency social media network, the EEIP (www.ee-ip.org), the ‘Energy in Demand’ blog (www.energyindemand.com) and the eceee website via columns (www.eceee.org). Social media will continue to be a strong feature of the DSM Programme in 2016.

During 2015, Dr Sea Rotmann, Visibility Committee Chair, has continued the development of a communications strategy for the DSM Programme (together with the Chair/s, Secretary, Editor and Programme Advisor), and individual communications and disseminations plans for all current Tasks (with Task Operating Agents). The plan was presented in October 2014 and was finalised in 2015.


Participation in the IEA DSM Programme as of December 2015