Chairman’s Report 2016

2016, what can DSM do for you….?

We are living in times of profound changes. The technology provides new opportunities with the rapid development of ICT and with emerging abilities to use of cheaper, smaller and renewable distributed power. The political awareness grows because of the need for improving the use of energy to fight global warming, to avoid depletion of resources and to make electricity available for all.

The understanding that technology is only a means and that behavioural issues needs to be taken into account to make lasting changes is growing. DSM is also changing. It is not only an issue for creating a “level playing field” for the energy companies but even more to enable a large-scale deployment of energy efficient services in the society as a whole.

This year’s annual report will therefore focus on what DSM can bring for the future, rather than giving only a list of what we’ve done.

The year 2016 was a remarkable year for energy efficiency. First of all there was the aftermath of the Paris agreements. Countries had to decide whether or not they would sign the Paris agreements. The targets, both in percentage CO2 and number of countries that signed the treaty were achieved in a very short time. Further the target to keep the global warming a 2 degrees was significantly sharpened to be “well below 2 degrees” and even stop at 1.5. On a global level the result of all these changes is already beginning to show. For the third year in a row, global CO2 emissions were kept on approximately the same level. One of the major contributes to this success is China with their strong energy policies.

The IEA has been very clear and instrumental to underpin and facilitate the efforts to change the energy sector. Partly because of the new Paris spirit, partly by the new direction of the IEA. The new director Dr. Fatih Birol made two things very clear: an open collaboration with non OECD members and a much closer collaboration with the Technology Collaboration Programmes, TCP, (earlier known as Implementing Agreements) like our DSM Programme. And it doesn’t stop there. Talks with organizations like IPEEC and the clean energy ministerial have led to a much closer collaboration.

Change can be delayed and rerouted

Success doesn’t mean we are were we want to be. In the energy community in Europe a massive debate is going on about the Energy Union. While most targets seems to be going in the right direction, one isn’t. The most successful piece of legislation, the Labelling and Ecodesign directives seems to be falling from grace, as the leaderships fears the topic might be hijacked by populists, as part their fight against the EU in general. But those who deal with DSM agree that we need the driving force of legislation to push technology development. The market need advice, guidance and targets to perform the way it could and should.

One might argue that the labelling “stuff” is the domain of the 4E TCP, but that would be short sighted. Appliances are getting smart with all ICT achievements. In combination with smart grids and smart suppliers the potential of the sum of the appliances to deal with load shape and load management is growing rapidly. With our digital options it’s no longer a problem to switch them on and off with hundreds and thousands at the same time… and put them back on again. But there is a need for a framework for such operations. This framework is provided within the DSM that requires “least cost planning” and “Demand Response” tat stakes out the limits for the capacity of the systems.

But smartness in appliances also have risks. The smart appliances may have too high stand-by power that offsets what they save. Smart systems could be vulnerable to intrusion by hackers.

Smartness should be applied with care! DSM cares about system reliance.

Behaviour and business models

DSM will only work, if consumers and businesses agree to a new way of handling consumption, in fact if they do appreciate the service. We in DSM are seriously looking at the behavioural elements of energy use in our tasks on “behaviour change – helping the behaviour changers” and “a more effective uptake of business uptake for energy services”.

By asking ourselves what customers need (what service they like) and not what think they should do, we might pave the way for a more effective participation of the consumers. This is summarized in the figure as used by Renske Bouwknegt, the operating agent of Task 25.



Most of these interactions between the grid operator and the appliances we be unnoticed, if customers agree to the idea, see what’s in it for them and are not confronted with negative side effects. For instance, on a personal note: I simply don’t care if my refrigerator cools a little bit more or less, as long as it stays within the limits that ensures a good quality of what is within it. Also the cycle time of our dishwasher has never been a problem. As long as the stuff comes out clean, we’re happy. Our espresso however has to be there at the right time, and exactly the right temperature (95o C). But if we can overwrite the influence of the smart operator, we’ll sign up for the smart contract.



You might think this is a lot of text for a shot of coffee, but the principles behind it are becoming very important in the immediate future. As electric vehicles (EV) are entering the market in increasing numbers, a substantial influence on the loading peak becomes reality, certainly in Norway and California. This asks for smart charging, and might offer even storage facilities.

The consumers that opts in, simply has to indicate when the car has to be ready again. And then pays a rapid, or slow charge price.

The technical development of the combination of plugged in renewables, appliances and cars is studied in collaboration with the ISGAN TCP. Our task on Integration of Demand Side Management, Energy Efficiency, Distributed Generation and Renewable Energy Sources digs into the consumer side of developing grids. As an example, a graph of René Kamphuis, operating agent of this Task, is added. It shows what we can achieve with smart charging.

This example also shows the importance to apply the theories of behavioural economics in the governance of DSM. People cannot be assumed to act thinking about energy efficiency at all times. It is the duty of DSM-managers to consider how systems should be designed to make the choices easy for the customers. How to nudge them to make the favourable and good choice and to get the service that they value?.

And to end this part of the annual report, let’s return to the EU policy. The added value of labelling has been shown all over the world. In Asia (Toprunner in Japan, BEE in India), Europe and the US (energy star) this was positive: labelling programmes have pushed down the energy use in appliances. As an example we show one product group, from the 4E publication “Mapping & Benchmarking of set top boxes” (2014). In parts of the world where these programmes are in place, we see a level playing field where industry has a changes to produce slightly more expensive apparatus, but with a much lower lifetime cost. Areas outside the zones, like Africa, the effects are often negative: often these areas become dumping grounds for the appliances the are only cheap at the start. So yes, we at DSM favour smart appliances as an important and effective element of DSM.


The big unknown at the moment are the policy measures of the US. Will the so called scepticism to global warming kill a fast developing renewable industry by reinstating an obsolete fossil industry or is the already existing and strong forces for DSM already have its own and sufficient momentum?

Or Will these new industries, in collaboration with the ICT sector be able to show they have the best added value?

This TCP is not in macroeconomics. We do however offer a lot of information on business models. In our work on innovative energy services we show how energy contracting can help us realize project that seemed to be out of reach by finance and contract new technology just that little smarter.


All the information in this report might not be enough to satisfy your curiosity to the answer “what can DSM-energy efficiency do for you”. In our member states we organize DSM days, where experts of our TCP and national experts meet to discuss this question. With the help of our sponsor the European Copper Foundation and the Belgian Federal Government, our latest was held in Brussels. Next year we visit Ireland and the Netherlands to discuss added value. But you don’t have to wait until we come along. Our website has all this information and on top of that we’ll have a webinar ten times a year, explaining all aspects of energy efficiency and DSM within the framework of our DSM-University. The total information offered by our TCP will be enough to get you through 2017 to implement everything DSM can bring

Rob Kool, Chairman

Highlights & Achievements

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


During 2016 the following Task(s)/Task Phases were completed:

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

Additional details can be found below.

DSM University

The DSM University is a joint activity run between the DSM TCP and Leonardo Energy where Leonardo Energy is also responsible for the administration and technological support for the webinars and also markets these together with the European Council for an Energy Efficient Economy (eceee) who gives the DSM TCP access to their database of recipients of information.

According to plan, we have organised monthly webinars with speakers both within the DSM TCP and from companies and organisations with interest in energy efficiency. In total 28 webinars have been held by the end of 2016. Over the past three years, DSMU has evolved into a community of practice through which DSM practitioners meet on a monthly basis. So far, DSMU has engaged over 3,300 professionals worldwide.

During 2016, ten webinars were held:

For more information on the DSM University, see also Chapter III.
For more information about all DSMU webinars www.dsmu.org

Task 16 – Innovative Energy Services – Phase IV Life-Cycle Costing; ‘Deep Retrofit’; Simplified M&V; Crowd-Financing & Energy Services Taxonomy.

Task 16 Phase IV, “Innovative Energy Services” started in July 2015 and will end in June 2018 and is working with energy service experts from countries around the world who have joined forces to to advance know-how, experience exchange and market development of (mainly 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 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 2016

The Think Tank has worked on a variety of topics during 2016, which have led to publications and presentations at various national and international events. Some of it is still work in progress.

  • Task 16 Phase IV has a focus on Life Cycle Cost Benefit Analysis (LCCBA) and Deep Energy Retrofit of buildings and has submitted an abstract to the eceee Summer Study titled: Deep Energy Retrofits: Using Dynamic Cash Flow Analysis and Multiple Benefits to Convince Investors. The abstract has been accepted and Task 16 expects all participating countries to contribute to the paper;
  • Following up on previous work on “simplified M&V and quality assurance instruments”, Task 16 has refined the concept and prepared a submission for an academic journal paper. Co-authors are Mark Robertson and Sarah Mitchel from Efficiency One, Nova Scotia;
  • Crowdfunding (CF) for Energy Efficiency (CF4EE) is a new concept. A pre-feasibility study conducted by Task 16 is a first effort to explore the potential of CF for financing cost-effective energy efficiency measures in developing countries, in particular in situations where lack of affordable financing is a main barrier to scaling up energy efficiency measures and a number of research questions were addressed.

In 2017 the following Think Tank activities are planned

During 2016, Task 16 has produced a number of publications and given presentations at various conferences and workshops to disseminate and discuss Task results. The Think Tank has worked on a variety of topics during 2016, which have led to publications and presentations at various national and international events. Some of it is still work in progress. Further more, stakeholder workshops were organised in conjunction with each project meeting to discuss Energy-Contracting topics relevant to the host country for 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 2016 and was finalised in October 2016. New topics are being discussed for Phase 4 and a proposal (working title) “Active Prosumer Networks” is currently underway.

Task 17 Phase 3 has addressed 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, has also be looked upon. The scalability and applicability of conducted and on-going projects with respect to specific regional differences and requirements have been explored.

The main objective of Task 17 was 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 looked at integration issues from the system point of view on the grid, market, customer and communities.

Key accomplishments in 2016

Four reports were delivered to country participants:

Subtask 10: “Roles and potentials of providing flexibility in production/consumption using CEMS/HEMS systems”;

Subtask 11: “Financial and maturity assessment of technologies for aggregating DG-RES, DR and electricity storage systems”;

Subtask 12: “Best practices in applying aggregated DG-RES, DR and Storage for retail customers”;

Subtask 13: “Conclusions and recommendations for applying DG-RES, DR and storage in electricity grids.

A joint IEA TCP symposium was organised and held with focus on the various technologies related to demand flexibility and renewable integration.

During 2016, Task 17 has produced a number of publications and given presentations at various conferences and workshops to disseminate and discuss Task results. Task 17 has also contributed to the Flexibility Roadmap (EcoFys/Copper Alliance) as a member of the ‘Flexibility in Power Systems Advisory Panel.

For more information on 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 to 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 2016

  • Progress in the last year was satisfactory, and Task 24 now has >240 experts on the expert platform which has links to any films or presentations from workshops. All reports are on the IEA DSM website, which has been divided into Pahe I and Phase II. Task 24 continues to have great success in matchmaking experts with several spending time at each others’ Universities.
  • Subtask 6 has now been discussed in more than 15 workshops in Canada, Ireland, New Zealand, the Netherlands, Sweden and the US, and Task 24 workshops at BECC, eceee Summer Study, Energy Cultures and BEHAVE conferences. Lists of DSM interventions and energy efficiency and behaviour priorities in each of the participating countries (except Austria) have been collected. All workshops have extensive reports and three draft Subtask 6 and 7 reports have been prepared for Sweden, the Netherlands and New Zealand. In addition, the issues definition in Task 24’s Subtask 11 participant, the Carolinas Health Network System (CHS) has been done.
  • Behaviour Changers have been identified for the top issues decided on in Subtask 6 for Canada, Sweden, the Netherlands and New Zealand. Ireland has chosen its top issue and is currently selecting the Behaviour Changers. 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’.
  • Storytelling as a tool in Task 24 has been published and presented at the eceee Summer Study. A paper analysing 145 stories we have collected from over 20 countries is currently under review as an extensive social science publication in the Journal of Energy and Social Science Research (ERSS). Dr Sea Rotmann is co-editing the ERSS Special Issue on ‘Narratives and Storytelling in Climate Change and Energy’ which has attracted over 50 abstracts. This work more than fulfils our deliverables around ‘international publications and a Special Edition’. In addition, Dr Rotmann has created the ‘A to Z of why using a story spine in energy behaviour research works’ and has published two conference proceedings (ACEEE Summer Study and BEHAVE) on the ‘magic carpet’ Behaviour Changer Framework. She is currently finalising another peer-reviewed single author paper on the various tools developed in Task 24 for the Special Edition on global behaviour research of Energy Efficiency. The Task 24 monitoring and evaluation work was also presented at the 2015 eceee Summer Study by Dr Mourik and further evaluation work has been published by her in Energy Efficiency. A factsheet on multiple benefits in the building retrofit sector has been created by Dr Mourik (in Dutch).
  • 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. There are now three peer-reviewed papers and a report on the toolbox on the IEA DSM website. The Subtask is co-funded to the tune of US$100,000 by PG&E and Southern California Edison. Rebecca Ford from Oxford University presented the toolbox at the Task 24 BEHAVE workshop and garnered feedback from the 70 participants. Unfortunately, the fact that both Austria and the Netherlands chose to not join Subtask 9 means it will not be validated as a standardised tool in 2017 (as we only have 3 countries). We are working with Karlin et al to still test the toolbox outside Californian utility customers, for example, in Ireland where we focus our case study on the residential sector.
  • We have contracted our first voluntary participant to this Subtask, the second-largest hospital network in North America (CHS). We have started the work with a workshop in October 2016 where we finalised the issues definition. In February 2017, we will participate in an international evaluation panel convened by the hospital network and hold another workshop. A third workshop will take place in May 2017, with final report-back expected end of 2017. The draft workshop report will be available early 2017 to participants.

For more information about Task 24 Phase II.

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 2016

  • Country specific suppliers, clients, and their stakeholder networks for NL, SE, CH, AT and NO have been identified and where relevant established national advisory, expert networks;
  • The focus of 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 and a selection criteria toolkit was developed;
  • A long list overview of existing services and business models was completed for all countries except South Korea, who joined later;
  • A shortlist overview of services was completed for all countries except for South Korea, who joined later;
  • A global analysis was performed by CREARA, hired by the ECI partner.

For more information about Task 25.


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 2015 was produced and distributed electronically to approx. 250 recipients in January 2016. 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 2016 and included articles on:

Issue 60 – March 2016

  • Note from the Chairman: Billiards
  • Task 16: Three more years of energy services work given thumbs up
  • Task 25: You have to re-invent yourself several times
  • Demand Response – New opportunities for energy service providers?
  • Sweden – On the way to a fossil-free future

Issue 61 – June 2016

  • Note from the Chairman
  • Task 24: A beautiful behaviour collaboration is taking place in the IEA
  • DSM University
  • South Korea – Energy paradigm shift means a bright future for the economy and the environment

Issue 62 – September 2016

  • Note from the Chairman: Sharing what we know
  • Towards 100% renewable energy supply – strategic development of power system flexibility
  • Ireland – The home energy efficiency conundrum
  • Task 25 – Towards a service supporting business model
  • Task 17: International symposium – demand flexibility and RES integration

Issue 63 – December 2016

  • Note from the Chairman: Sharing what we know
  • Puang Sanook – The 1st energy efficient community in Thailand
  • An international day for DSM
  • DSM University: 2016 webinars
  • IEA’s energy efficiency market report
  • Task 17: New reports on integration of DSM now online

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 Facebook group and the Twitter account is increasing on a daily basis. Strong relationships with other social media energy efficiency mavens have continued to build in 2016 including the DSM Programme being showcased in 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 2017.