Bottom Line on Energy Savings Certificates

This fact sheet from the World Resources Institute explainsL explains Energy Savings Certificates (ESCs), which are tradable certificates representing energy savings—typically one megawatt-hour (MWh)—used by utilities to meet energy efficiency targets in compliance and voluntary markets.

• Energy savings certificates (ESCs), also known as white certificates, tradable white certificates (TWCs), or White TagsTM, typically represent one megawatt-hour (MWh) of energy savings from efficiency projects. They allow third parties, such as industrial and commercial companies, to help utilities meet energy efficiency targets.
• In the United States, 21 states have energy efficiency targets established through Energy Efficiency Resource Standards (EERS) or Renewable Electricity Standards (RES) with efficiency provisions. While several states including New Jersey, Nevada, Pennsylvania, and Connecticut have legislation allowing third parties to generate and sell ESCs, Connecticut is noted as having an active market.
• International ESC programs include the first EERS-type program in New South Wales, Australia, established in 2003, as well as programs in France, Great Britain, and Italy. In June 2008, India's Climate Action Plan encouraged the creation of a national ESC market.
• ESC pricing varies by market and is often influenced by regulatory caps or floors. In Connecticut, the market has seen indicative prices between $20 and $25/MWh, with a minimum price of $10/MWh and an alternative compliance payment (ACP) cap of $31/MWh. In Italy, average prices are approximately $69/MWh (€47).
• The verification of energy savings requires establishing a baseline of energy use before and after a project. Methods include direct measurement, engineering calculations, and "deemed savings" figures. Many markets utilize the International Performance Measurement and Verification Protocol (IPMVP) or custom protocols for third-party verification.

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} }