Optimizing the distribution of Italian building energy retrofit incentives with Linear Programming

Abstract

The goal of the research is to propose an optimization-based methodology for the evaluation of retrofitincentives, using as a benchmark the wide data collection reported by the ENEA Italian Agency since 2007.To determine the best mix of energy retrofit measures for different areas of Italy, two Linear Program-ming models are proposed. The first model maximizes energy savings and the second one minimizesretrofit costs. The results show a 17% reduction in the average cost for each MW h of saved energy. Moreimportantly, the methodology can help decision-makers appreciate how energy efficiency incentiveshave been used so far and how effective they could be. Furthermore, the methodology can be used forsetting future incentive distribution plans.