Energy Efficiency Obligation

In 2010, China introduced energy efficiency obligations to attain 14 578 GWh of energy savings per year, achieving an incremental energy savings of 0.04% per year in comparison to total fuel consumption. Electricity used in all sectors are covered in this policy. The obligated parties include government-owned grid companies. Obligated grid companies must reach a savings a 0.3% of electricity sales in the previous year and a load reduction by at least 0.3% of maximum load in the previous year. There are no specific eligible energy efficiency measures. 100% of savings can only be claimed if audited by third party or recorded by equipment. Obligated parties may purchase savings from customers and ESCOs under bilateral contracts. No financial penalties but general rules of compliance apply.