World Energy Outlook 2006

is around US 1.5 cents 4 and in the OECD US 3 cents to US 4.5 cents,
compared with electricity prices in the OECD of between US 9 cents and US
15 cents per kWh. In non-OECD countries prices are tipically lower because
of subsidies.
In aggregate terms, over the next two-and-a-half decades, the Alternative Policy
Scenario would require additional investment in electricity-using equipment of
$1 trillion beyond that projected in the Reference Scenario. Over the same
time frame, savings in consumers’ electricity bills would come to more than
$3 trillion (Figure 8.7). In non-OECD countries, energy-efficiency investment
made in the residential and services sectors at the beginning of the projection
period pays off very quickly for the consumer, in most cases in less than a year.
Over the projection period as a whole, the saving in electricity bills in the
billion dollars (2005)
Figure 8.7: Change in End-Use Electricity Investment and in Consumers’
Electricity Bills in the Alternative Policy Scenario*, 2005-2030
1 000
500
0
–500
–1 000
–1 500
–2 000
* Compared with the Reference Scenario.
OECD Non-OECD
Industry: additional demand-side investment
Industry: reduction in energy bill
Residential and services: additional demand-side investment
Residential and services: reduction in energy bill
4. The Brazilian National Program for Energy Efficiency in Power Sector (PROCEL) during 1996
to 2003 achieved electricity savings at a cost of US 1.2 cents per kWh (Guerreiro, 2006).
Chapter 8 - Assessing the Cost-Effectiveness of Alternative Policies 207
© OECD/IEA, 2007
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