Policy Lab Auctioning System for Energy Efficiency

Sweden's energy use has remained constant for 50 years, despite an increase in GDP and a growing population. This has been possible thanks to continuous energy efficiency efforts. At the same time, study after study shows that the energy efficiency potential is far greater than what has already happened, as new technology and new solutions are constantly opening up new opportunities.

So-called reverse auctions for energy efficiency have been successfully used in other European countries to achieve an increased rate of energy efficiency, but are not entirely easy to design. In this project, we will design a so-called policy lab, to test a system with reverse auctions. Through prototyping and realistic tests, real actors will be able to test the policy instrument, to test its design before a possible large-scale introduction.

The project is being carried out as a regional pilot in the Västra Götaland region, with the potential for upscaling to other regions or national level. RISE coordinates and Region Västra Götaland, the City of Gothenburg, Energikontor Väst are part of Innovatum, Fossil Free Sweden, Gothenburg Energy and the Swedish Energy Agency participate. The project runs from November 2024 to December 2025, and the major pilot test will be carried out in the autumn of 2025.