Conclusions and Further Studies

Abstract

Low or negative cost in energy efficiency investments can be achieved in almost every developing country. These investments contribute to energy savings and GHG emission reductions. However, the low market adoption of energy-efficient technologies, coupled with the unrealized potential, implies that significant amounts of energy have not been saved cost effectively as it should be. This is referred to as energy-efficient gap that is caused by investment barriers. There are various energy efficiency barriers, but government policies can unlock these barriers. Cost-effectiveness is an indicator for sustainable investments in energy-efficient technologies; cost-effectiveness analysis is therefore a necessary approach to evaluating the feasibility of energy efficiency projects. After an energy efficiency project is approved to be cost-effective, project stakeholders may consider financing the project. However, lack of financing mechanisms in the market is a barrier to energy efficiency investment in most developing countries. Government policy and ESCOs can create effective financing mechanisms to unlock this barrier. ESCOs have been playing a very important role in energy efficiency project financing. This chapter summarizes all above areas that are related to energy efficiency and delivers conclusions and implications.