World Energy Outlook 2006

Policy Overview
Policies taken into account in estimating the figures for the residential sector in
the Alternative Policy Scenario cover lighting, electric appliances, space
heating, water heating, cooking and air-conditioning. In the services sector,
lighting, space heating, air-conditioning and ventilation are assessed, as well as
miscellaneous electrical equipment. In the OECD, equipment standards,
building codes, building energy certification and voluntary measures are
analysed. In some cases, mandatory labelling schemes are also considered.
Voluntary measures include voluntary targets, financing schemes for efficiency
investments, endorsement labelling and “whole-building” programmes.
Financing schemes include direct consumer rebates, low-interest loans and
energy-saving performance contracting. Accelerated research and development
efforts by governments are also taken into account.
Since 2004, there have been some important developments in the
implementation of national, regional and local equipment and building energy
efficiency measures. The nature of new measures under discussion has also
changed. For example Europe has implemented three major new energyefficiency
directives: the Eco-Design, Energy Services and Energy Performance
in Buildings directives. They reduce energy use in the Reference Scenario. In
the Alternative Policy Scenario, these directives are assumed to be implemented
in a more rigorous manner. As a result, the savings projected in the European
Union in the Alternative Policy Scenario are bigger than in WEO-2004.
In recent years, many non-OECD countries have also adopted policies aimed
at improving the energy efficiency of new equipment and buildings. They are
assumed to achieve efficiencies that approach those of the OECD in the
Alternative Policy Scenario. China has increased both the scope and number of
the efficiency policies it has implemented. Accordingly, the ambition of the
policies now under consideration has grown, increasing the savings in the
Alternative Policy Scenario as these policies are assumed to be put into effect.
Several OECD and developing countries have adopted policies to encourage
solar energy – mainly solar water heaters – but further government action will
be necessary to boost solar markets and is assumed here.
The rate of electrification and access to gas networks are assumed to be the
same in both scenarios. But measures aimed at promoting a faster transition
from traditional biomass to modern commercial energy sources in equipment
and buildings are assumed in the Alternative Policy Scenario. As in the OECD
region, the most important results in non-OECD countries come from
measures to encourage energy labelling and setting of mandatory minimum
energy-efficiency standards. For buildings, stricter mandatory codes, building
certification and energy-rating schemes are assumed.
246 World Energy Outlook 2006 - THE ALTERNATIVE POLICY SCENARIO
© OECD/IEA, 2007