Energy efficiency basically means using less energy to do the same job or function (ie. space heating or cooling, lighting, product manufacturing, car operation, etc.). Energy efficiency needs to be distinguished from energy saving because energy saving always implies a certain type of sacrifice, ie. reducing the volume of work, while efficient use of energy means maintaining the same level of quality of life.
Energy Efficiency Obligation Schemes (EEO schemes) are a systematic way of financing energy efficiency measures. These are policy instruments or mechanisms that stipulate that obligated parties (distributors and / or energy suppliers) must achieve (have an obligation to achieve) certain energy savings for the end customers (for example, households). Obligated parties partially or fully finance energy efficiency measures with of the end customers in order to achieve targeted savings, and then reimburse these costs through tariffs / energy prices.
EEO schemes have proven to be an excellent mechanism for stimulating the economy in the countries that implement them. Through this instrument, energy efficiency measures are mostly financed from domestic financial resources that do not depend on donor funds or foreign loans. This has a far-reaching effect on job creation in the construction sector (companies that implement works), the industrial sector (companies that manufacture the necessary equipment and materials) and the service sector (companies that monitor service quality, issue various construction certificates, marketing agencies, etc.).
USAID EPA project goals
The EPA project is providing technical assistance to the competent institutions in formulating the legal framework for the introduction of the Energy Efficiency Obligation (EEO) scheme mechanism in BiH legislation, which is a method of financing energy efficiency measures. This activity includes the development of a strategic approach for the introduction of obligation schemes, assisting the competent institutions in drafting the necessary regulations and providing operational assistance in the implementation and management of the model of BiH EEO schemes. These are policy instruments or mechanisms (EEO) schemes are a legislative mechanism that places requirements on obligated parties (energy distributors and/or suppliers) to meet quantitative energy savings targets across their customer portfolio (e.g., households). Obliged parties partially or fully finance the energy efficiency measures of end customers to achieve savings targets and then reimburse these costs through tariffs/energy prices.