The aim of the present chapter is to examine the nature of barriers and drivers to energy efficiency (EE), the circumstances in which they arise, their relative importance in different contexts and the manner in which different actors intervene to overcome these barriers. The chapter reviews current perspectives on barriers and drivers, classifies them according to their influencing patterns and provides supporting evidence for their prevalence. Finally, this chapter develops a new systematic classification and explanation of barriers and drivers to EE. Using an 'actor-oriented approach', the chapter tries to identify (a) the drivers and barriers that affect the success or failure ofenergy efficiency investments, and (b) the institutions that are responsible for the emergence of these barriers and drivers. This taxonomy aims to synthesize ideas from three broad perspectives, namely, micro (project), meso (organization) and macro (state, market and civil society). The chapter develops a systematic framework by looking at the issues from the perspective of different actors.1 This not only aids the understanding of
1 The actors include: the consumer/investors, utilities, government agencies (ministries, state agencies, parliamentary commissions and intergovernmental commissions), financial institutions, regulatory bodies, local authorities, research and development organizations, equipment manufacturers, market institutions, energy consultants, non-governmental organizations (NGOs), energy service companies, the international organizations (for example, Intergovernmental Panel on Climate Change [IPCC]), and so on.
barriers and drivers, but also provides scope for appropriate policy interventions, too. This focus will help policy makers evaluate to what extent future interventions may be warranted and how one can judge the success of particular interventions.
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Renewable energy is energy that is generated from sunlight, rain, tides, geothermal heat and wind. These sources are naturally and constantly replenished, which is why they are deemed as renewable. The usage of renewable energy sources is very important when considering the sustainability of the existing energy usage of the world. While there is currently an abundance of non-renewable energy sources, such as nuclear fuels, these energy sources are depleting. In addition to being a non-renewable supply, the non-renewable energy sources release emissions into the air, which has an adverse effect on the environment.