Application of energy efficiency obligation scheme for electricity distribution companies in Turkey

Abstract

To realize the existing energy-saving potential in a short time according to 2012/27/EU Energy Efficiency Directive, in 2017, Turkey published National Energy Efficiency Action Plan (NEEAP), containing Energy Efficiency Obligation Schemes EEOS establishment action. Since research studies are needed to guide the NEEAP, this study was conducted to establish an exemplary model for Turkish EEOS. Based on the literature, the main hypothesis of the study is “EEOS could contribute significantly to NEEAP targets”. Electricity Distribution Companies (EDCs) are assumed as obligated parties, a guideline containing standard energy efficiency (EE) actions for residential, commercial, and industrial sectors was prepared. Concerning EDCs' market shares, mixed-integer linear programming models, minimizing EE actions' costs, were developed to examine four annual saving targets (0.8%, 1.5%, 2%, and least) under three scenarios (yearly-based obligation, yearly-based with using 5% of each action and no constraints). Saving target 2% for 7 years with no constraint gives the highest energy-saving (above 200 TWh) and the least is from the least annual target for 10 years with yearly based obligation (below 100 TWh). In conclusion, if EDCs fulfill their obligations under specified targets and scenarios, Turkish NEEAP's saving target can be fulfilled between 10% and 44%, supporting the hypothesis of the study.