Bottom Line on Energy Savings Certificates

Energy savings certificates (ESCs), also known as white certificates, are tradable credits typically representing one megawatt-hour (MWh) of energy savings. They allow third parties to generate efficiency savings and sell them to utilities to help meet regulatory targets established via Energy Efficiency Resource Standards (EERS) or Renewable Electricity Standards (RES). In the U.S., 21 states have such targets, with Connecticut operating an active market where prices have generally ranged between $20 and $25/MWh. Internationally, programs exist in New South Wales, Italy, Great Britain, and France, with India encouraging a national market. ESCs incentivize efficiency investments by providing an additional revenue stream for commercial and industrial entities.

• Energy savings certificates (ESCs), also referred to as white certificates or energy efficiency credits, generally represent one megawatt-hour (MWh) of energy savings from efficiency projects and can be used in both voluntary and compliance markets.
• In the United States, 21 states have implemented energy efficiency targets through Renewable Electricity Standards (RES) or Energy Efficiency Resource Standards (EERS). Some states, including New Jersey, Nevada, Pennsylvania, and Connecticut, allow third parties to generate and sell ESCs to utilities to meet these targets.
• ESC pricing varies by market; in Connecticut, the price in July 2008 was $26.75/MWh, with historical indicative prices between $20 and $25/MWh, while average prices in Italy are approximately $69/MWh (€47).
• International adoption of ESC-based programs includes New South Wales, Australia, which started the first EERS-type program in 2003, as well as France, Great Britain, and Italy. India's 2008 Climate Action Plan encouraged a national ESC market.
• The verification of energy savings for ESCs often involves establishing a baseline and may use 'deemed savings' figures, engineering calculations, or direct measurement, frequently adhering to the International Performance Measurement and Verification Protocol (IPMVP).

APA

World Resources Institute (n.d.). Bottom Line on Energy Savings Certificates. https://www.wri.org/research/bottom-line-energy-savings-certificates

Chicago

World Resources Institute. Bottom Line on Energy Savings Certificates. n.d. https://www.wri.org/research/bottom-line-energy-savings-certificates.

Wikipedia

{{cite report |author=World Resources Institute |title=Bottom Line on Energy Savings Certificates |url=https://www.wri.org/research/bottom-line-energy-savings-certificates |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendbottom, author = {{World Resources Institute}}, title = {{Bottom Line on Energy Savings Certificates}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/bottom-line-energy-savings-certificates}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }