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The report analyzes six case studies—onshore wind in the U.S. and Spain, solar PV in the U.S. and Italy, a solar power tower in the U.S., and offshore wind in Denmark—to determine how policy impacts the cost of finance. It identifies seven policy impact pathways, finding that the duration of revenue support and revenue certainty are the most critical factors in reducing financing costs. The analysis shows that while most projects' costs and returns align with benchmarks, the Italian PV case experienced inflated costs and returns due to a rush to qualify for a Feed-in-Premium. The report concludes that policies reducing risk and providing revenue certainty are essential for attracting institutional investors and scaling innovative technologies.

The report examines the technical and operational challenges of implementing nodal pricing in Europe, contrasting the European model of separated energy and transmission markets with the US Independent System Operator (ISO) model. It highlights conflicts between market flexibility and transmission system operator (TSO) security needs, the potential for integrated energy and reserve markets to increase flexibility, and the technical uncertainties surrounding the EU Target Model's flow-based approach to congestion management.

The study finds that U.S. building energy codes lead to a 10% decrease in energy use per housing unit and a 16% reduction in greenhouse gas emissions, outperforming the 5% savings predicted by engineering simulation models.

The study finds that building energy codes in the U.S. are associated with a roughly 10% decrease in primary energy use per housing unit and a 16% reduction in greenhouse gas emissions per average code household. These results are consistent with, and potentially higher than, standard engineering simulation estimates. The analysis also identifies a fuel-switching effect, where codes encourage a shift toward natural gas and away from other fuels like fuel oil, likely due to code provisions allowing tradeoffs between building envelope efficiency and high-efficiency equipment.

The report examines the gap between Germany's thermal retrofit targets and current progress, identifying that the retrofit rate for residential outer walls is approximately 0.8% per year against a 2% target. It argues that deep retrofits are most economically viable when integrated into general building renovations. The analysis breaks down the homeowner decision process into three stages—encouraging interest, planning/deciding, and implementation—and maps corresponding policy instruments including information tools, KfW financial incentives, and contractor certification.

The study finds that while awareness of EPCs is high, they play a limited role in German home purchasing decisions due to low availability, a lack of trust, and a failure to provide the financial information purchasers value most.

The report finds that the energy performance certificate currently has a low impact on home purchase decisions in Germany, primarily because it fails to provide clear information on ancillary costs, is rarely available during the final selection process, and energy efficiency is viewed as a secondary property feature. However, the author argues that the implementation of the EU Energy Performance of Buildings Directive (EPBD) by 2013, which mandates the publication of energy data in property advertisements, could significantly increase the instrument's visibility and relevance.

The report analyzes the gap between Germany's current building renovation rates and its goal to reduce primary energy demand by 80% by 2050. Based on a survey of 2,000 households, it identifies barriers across three phases of the renovation process: initial awareness, planning and decision-making, and technical implementation. It argues that while financial incentives from the KfW and tax benefits are crucial, they must be coupled with better information tools, such as detailed heating bills, and improved professional certification for craftsmen to ensure high-quality, comprehensive renovations rather than isolated single measures.

The report categorizes German residential building policies into financial instruments, information tools, and performance standards. It argues that these tools are complementary; for example, financial incentives require information tools to be effective. Key financial mechanisms include KfW loans and the Heating Cost Ordinance, while information tools range from energy audits to mass media. Performance standards like the EnEV primarily target new constructions, with the report noting significant non-compliance rates for new buildings, estimated between 25% and 35%.

The report evaluates information tools used to encourage residential energy retrofits, categorizing them by the stage of the decision-making process they target: creating awareness, assisting in planning, and supporting professional implementation. It finds that while individual tools like detailed billing or energy audits can trigger savings, their effectiveness often depends on implementation design, such as 'opt-out' participation and the communication skills of professionals. The document highlights that in Germany, the government aims to reduce buildings' primary energy demand for thermal use by 80% by 2050, requiring a significant increase in the annual retrofit rate.

The report analyzes a survey of 2,000 German homeowners, categorizing them into non-planning, planning, and action households. It finds that motivations shift during the process, with building appearance being a primary initial trigger, while thermal comfort and energy savings become more important for those who have already implemented retrofits. High up-front costs and reluctance to take loans are major barriers, and the study highlights the critical role of the Internet, construction professionals, and personal networks as information sources. Financial support, specifically through KfW programmes, is shown to increase the likelihood of comprehensive retrofits and reduce the tendency to drop planned measures.

The document analyzes the transition to nodal pricing, noting that US Independent System Operators (ISOs) typically recover implementation costs within one year through efficiency gains. It details the use of Financial Transmission Rights (FTRs) and Auction Revenue Rights (ARRs) to hedge locational price risks and maintain market liquidity. The paper compares the US ISO model with European TSO structures, arguing that ISOs provide a more transparent framework for information sharing and system security, particularly as renewable energy penetration increases. It also highlights the Iberian experience in optimizing day-ahead and intraday markets to accommodate wind power forecasts.

The report analyzes the effectiveness of tax credits and accelerated depreciation in promoting thermal retrofits, noting that while such schemes see high utilization, they often fail to trigger comprehensive deep retrofits. In contrast, Germany's KfW program achieves a higher rate of comprehensive retrofits by offering significantly higher support for deep measures and requiring certified expert oversight. The authors suggest that simple application processes and policy certainty are critical for investor confidence, particularly for high-cost comprehensive projects.

This working paper by the Climate Policy Initiative (CPI) establishes a framework for diagnosing policy effectiveness by analyzing the link between policy, finance, and outcomes. It argues that policies impact the investment environment by altering the allocation of costs, revenues, and risks, which subsequently affects the types of investors attracted to projects. The paper details the specific requirements and risk tolerances of different investor classes—including debt, equity, mezzanine, and venture capital—and explains how these dynamics shift across the development, construction, and operation stages of a project. CPI intends to use this framework for future case studies to test hypotheses on financial structures and contractual risk allocation.

The briefing assesses tax incentives for energy-efficient building renovations in Germany, noting that while such incentives are popular, they often fail to trigger comprehensive renovations compared to KfW programs. It highlights that higher support levels and the requirement of certified experts—features of the KfW model—are more effective at promoting deep renovations and reducing deadweight effects.

The report identifies three categories of information tools to support residential thermal retrofits: those that raise awareness of benefits, those that assist in planning and investment, and those that train professionals. It finds that while individual tools like detailed billing or in-home displays can reduce energy consumption by 1-10% or more, their effectiveness depends on implementation factors such as 'opt-out' participation, user education, and the quality of professional certification. The document emphasizes that information tools are generally cost-effective and can significantly catalyze energy efficiency investments when tailored to consumer needs.

The document introduces a project by the Climate Policy Initiative (CPI) to analyze the impact of government policy on the development and cost reduction of solar photovoltaic (PV) technology. It identifies cost as the primary obstacle to PV's technical potential and proposes a four-step evaluation framework—linking objectives, activities, drivers, and policies—to assess policy effectiveness across the PV value chain. The briefing highlights key policy questions regarding the use of targeted versus broad-based tools, the interaction between local and national policies, and the role of capital markets in financing deployment.

The document describes a project to assess the impact of policy on clean energy financing, focusing on whether policies encourage a sustainable and cost-effective mix of investments. It highlights the role of risk allocation and the importance of project financing eligibility in determining the overall cost of energy projects. The project aims to analyze debt, equity, venture capital, and mezzanine finance across different technology maturity levels and global regions.

The briefing examines the feasibility of Germany's goal to reduce building primary energy requirements by 80% by 2050. It finds that deep thermal retrofits for multi-family houses are economically viable for owners who capture full energy savings, especially when supported by KfW loans and grants. To achieve a 2% annual retrofit rate, public support would need to increase to between 2 billion and 8 billion EUR per year, depending on the energy standard targeted. If these targets are met, Germany could save 110 TWh and 7.5 billion EUR in energy bills annually by 2020.

The document analyzes the costs and benefits of comprehensive energy renovations for multi-family and single-family homes in Germany. It finds that such renovations are economically viable for most owners if they can claim the energy savings, and that current KfW funding makes them viable across all analyzed cost estimates. To reach a 2% annual renovation rate, the study estimates annual funding needs between 2-4 billion EUR for KfW 100 standards and 4-8 billion EUR for KfW 55 standards. Achieving these targets could result in total energy savings of 110 TWh and 7.5 billion EUR by 2020.