Evaluation methodology selection wizard

Methodology finder – Market based instruments – Residential buildings

Available policy / sector / method combinations described in specific evaluation guides

  • Deemed savings [GUIDE 28]
    Deemed savings are a set of pre-determined savings values for efficiency measures that are calculated on the basis of data and assumptions from various sources available beforehand (e.g. previous studies, manufacturers data, national statistics, expert estimates, etc.). Deemed savings can also take the form of an algorithm, providing a formula that processes input data for arriving at a savings estimate. Deemed savings have a multitude of benefits; they are fast, easy to calculate, constant and predictable. Because of those traits, deemed values are commonly used to estimate energy savings from efficiency programs. Deemed savings are usually unitary energy savings, which means they are applicable to energy saving actions at the level of a single dwelling, installation or piece of equipment.
  • Econometric modelling [GUIDE 29]
    The econometric method is a top-down simulation using econometric models. An econometric model specifies the relationship that is believed to hold between the various economic quantities related to a particular economic phenomenon, in this particular case energy savings. To apply the econometric method, a detailed econometric model with access to a regularly updated database is required and is also a prerequisite for the use of this method, as setting up such a detailed economic model is a significant effort. The model provides a regression analysis of energy use over time that explains the energy consumption as a result of different drivers: GDP change, activity level, energy savings etc.

Evaluation methodology comparison table

Evaluation method Pros & cons Method characteristics Required input data
  Pro Con Savings output Aggregation level Application (ex-ante/ex-post) Energy use before and after actions Number of energy saving actions Energy saved per action Normalisation factors Gross-to-net adjustments
Deemed savings Cheap Imprecise Unitary, mostly system Bottom-up Ex-ante and ex-post No (covered in savings) By complementary method To be estimated No (covered in method) E.g. free riders (in case of subsidies)
Econometric modelling Explanation of relations Possibly missing factors Total savings Top-down Ex-post only For (sub)sector Depends on case Depends on case For behaviour, temperature, activity level No (if covered in method)