How can the Primary Energy Factor (PEF) help to incentivize energy transition?


This is the first question that was asked by the organisers of the latest stakeholder workshop on the review of the Primary Energy Factor (PEF) for electricity, as they opened the floor for discussion.

Given previous debates on this PEF and the orientation of this policy tool, this was a welcome point for discussion. Indeed, the PEF for electricity has thus far only served the agenda of the oil and gas industry by making sure electricity consumption is disadvantaged in several energy efficiency policies.

Now, with the energy crisis, which stems directly from our dependence on imported fossil fuels, adding on to the renewed focus on climate action and need to speed up the energy transition, the context to review PEF has changed. It is our hope that this is the start of a new reflection on the PEF and that policymakers will see a way to remove the unfair disadvantage it creates for electricity and electrification. In particular the PEF methodology should ensure that it leads to GHG reductions, as emphasised by the European Parliament in their report on EED.

Read our feedback to the PEF workshop.