Status quo on alternative measures across EU-countries, sectors & eligible policy measures

Transcription

1 Energy Saving Policies and Energy Efficiency Obligation Scheme Status quo on alternative measures across EU-countries, sectors & eligible policy measures 5th of February 2015 Niki-Artemis Spyridaki, Danai Manoli, Flamos Alexandros University of Piraeus Department of Industrial Management & Technology

2 Status quo on alternative measures across EUcountries, sectors & eligible policy measures Outline 1. Overview of MS options to comply with Article 7 requirements (EU-28) 2. Classification of alternative measures adopted (2 slides) 3. Technology focus of alternative measures Is there a regular fit of measures supported by alternatives? (1/1 slide) 4. Technical issues: verification, calculation methods. (1/1 slide) 5. Additionality interpretations and double counting considerations (2 slides) 6. Key messages, conclusions (3 slides)

3 1. Overview of MS options to comply with Article 7 requirements (1/2) Compliance with Article 7 requirements is proposed through either: - ΕΕΟ scheme (4 countries: Bulgaria, Denmark, Luxembourg, Poland) - Combination of EEO schemes & Alternative measures (14 countries: Austria, Belgium, Croatia, Estonia, France, Ireland, Italy, Latvia, Lithuania, Malta, Slovenia, Spain, UK, Hungary) or - Alternative measures (10 countries: Chez Rep., Cyprus, Finland, Germany, Greece, Netherlands, Portugal, Romania, Slovakia, Sweden). Alternative measures Combination (EEO schemes & Alternatives Measures) EEO schemes

4 1. Overview of MS options to comply with Article 7 requirements (2/2) 100,00% 90,00% 80,00% Contribution of alternatives & EEOs EEOs & Alternatives contribution (%) to the total energy saving target. 70,00% 60,00% 50,00% 40,00% 30,00% 20,00% 10,00% 0,00% Over 75% EEO contribution 88,00% 75,87% 70% < EEO contribution < 40% 65,27% 62,00% 50,09% 40,84% 33,93% Less than 40% < EEO share 17,03% 8,40% 3. Alternatives EEOs No certificates 2. EEOs No Trading 1. EEOs White Certificates

5 2. Classification of alternative measures adopted by EU MS countries under Article 7 requirements (1/3) National Energy Efficiency Funds 6. Training and education programmes 5. Energy labelling schemes Hungary Poland Denmark Luxembourg Bulgaria France **Lithuania *Austria Latvia Spain Italy **Slovenia Ireland Croatia UK **Malta **Estonia *Czech Republic Belgium Cyprus Germany **Slovakia **Romania Greece Netherlands Finland Sweden Portugal * Lack of information about certain measures ** Lack of information about the majority of the measures for those countries 4. Standards and norms for efficiency products (beyond existing EU legislation) 3. Regulations or voluntary agreements 2. Financing/ fiscal schemes 1. Energy/CO2 taxes - Financial/Fiscal schemes dominate (59,4% of all measures). Cases of Cyprus, Croatia, Greece and Portugal, Netherlands, (all countries opting solely for alternative measures) and the UK. - Next are regulations and agreements (e.g. 21,5% out of the total measures proposed by MS countries.) - Finally support for the human agency (i.e. Training and Education programmes) are present in most country plans opting for alternatives.

6 2. Classification of alternative measures adopted by EU MS countries under Article 7 requirements (2/3) Measures promoting access to finance* Regulations or voluntary agreements 9. Market Based (WhC) Market Based (FIT) 7. Direct Investment (RD&D) 6. Direct Investment (Public infrastructure investment) 5. Direct Investment (Public procurement) 4. Financial (Partial guarantee (incl. 3rd party financing)) 3. Financial (Grants as a form of equity or to subsidize loans) 2. Financial (Loans) 1. Fiscal ( Tax-reliefs) Less utilized measures are direct investments in the form of public procurements, 3 rd party financing and direct investments for Research, Development and Demonstration. *EE funds and energy taxes are excluded

7 2. Classification of alternative measures adopted by EU MS countries under Article 7 requirements (3/3) Share of sectors in total saving target 100,00% 90,00% 80,00% 29,88% Sectors' contribution (%) to total energy savings' target 10,54% 10,73% 8,44% 7. Argiculture 6. Transport 70,00% 60,00% 50,00% 40,00% 87,58% 62,05% EEO 71,73% 60,34% 60,70% 35,02% 5. Cross-cutting 4. Commercial Tertiary 30,00% 20,00% 10,00% 0,00% 62,35% EEO & 6 alternatives EEO EEO 47,80% 35,86% UK France Italy Austria Sweden Germany Greece Netherlands 3. Public 2. Industry 1. Residential Existing EEOs & Alternative measures Planned EEOs & Alternative measures Alternative measures

8 3. Technology focus of alternative measures Is there a regular fit of measures supported by alternatives? Residential sector Public sector Cross-cutting (general) Existing buildings: - Building envelope measures - Heating systems (boilers, heat-pumps solar thermal) (>>) New builds: construction material - Building envelope measures, - Lighting, heating systems, - Facilities, estate management, - Rationalization and smart energy planning - Automation and smart management systems - RES, CHP units, (>>) District heating & cooling (>)Industrial sector - BEMS and energy audits, - Improvement of equipment and process technology (BAT) (>>) Heat recovery/waste heat utilization systems (>)Transport sector - Urban sustainable mobility, - Low emission vehicles: electric, natural gas and hydrogen vehicles (i.e. switching of fuel vehicles) Grants, Soft-loans, tax-reliefs Grants, Regulation, Behavioral measures Grants, loans, regulation, direct infrastructure investments Tax increases (tolls), regulation, direct infrastructure investments

9 5. Technical issues: verification& control over measures, calculation method savings (1/1) Pre-existing or New Policy? Majority of measures proposed are an extension of existing measures. New measures (e.g. Greece, France) at an early implementation stage continuous monitoring. Limited information on costs, usually expressed as total incentive costs. Benefits expressed as total savings of measures. Monitoring & Verification? Most popular calculation method adopted by MS: ex-ante (deemed) savings Deemed savings risk of poor additionality when: - baselines do not adapt to tech. developments or - measures are not revised following the evolution of the market. Existing/ New Policy Countries 1. Existing 2. New TOTAL 1 Greece France UK Austria Netherlands Italy Germany Sweden Calculation method savings Countries 1. Deemed 2. Metered 3. Scaled 4. Surveyed 1 Greece X X 2 France X X 3 UK X X 4 Austria X X 5 Netherlands X X 6 Italy X 7 Germany X X 8 Sweden

10 5. Additionality interpretations and double counting considerations (1/2) Countries Austria Additionality is ensured by the choice of baseline: Requirement on achieved standards to be higher that applicable national and EU regulations. Common Additionality interpretations Periodic updated of list of eligible measures. Periodic updated of taxreduction percentages. Removal of (part Lack of of) savings demonstratio happening as a n of result of additionality overlapping in the report. policies in its modeling of uptake of options. France Germany Greece Italy Sweden The Netherlands UK Common non-additional/eligible measures: energy taxes, fuel substitution subsidies, RES, CHP and supply side measures. Best case approach: Austria provides Tailored Materiality/Additionality provisions per measure.

11 5. Additionality interpretations and double counting considerations (2/2) Countries Double-counting provision described in the notification reports. Austria France Germany Greece Italy Sweden The Netherlands UK Refurb. Subsidies: applied by separate federal states at their own territory. Domestic support: allocated based on data provided by a centralized database. Tax on oil: only measure from the traffic sector. El.Tax and N. gas Tax: estimates are based on short term elasticities Green el. support: counting only the state el. support might hedge double counting. No double-counting considerations. Verification and control doesn't account for energy savings. Formulas and methodological parameters for calculating the final energy savings resulting from policy measures or combinations thereof. Implementation of EE interventions in different buildings. Documental and spot-onsite verification. Penalty of 10 years exclusion from any national support programme. Total target savings consider only the impact of taxes. Policy packages instead of individual instruments (the impact of individual actions are not aggregated on a bottom-up basis no double counting of policy impacts). Policy ranking to adjust pre-policy demand for lower ranked policies in the merit order to avoid double-counting.

12 6. National implementation barriers reported thus far and main risks (1/1) Past energy efficiency market activity focused on low hanging fruits (i.e. rapidly implementing measures with short payback periods)need for innovation. High public cost associated with fiscal measures. High cost measures Insufficient fundability from end users, ESCOs and difficulty in access to finance Low technical capability of municipalities and banks technical staff. One off, complex and infrastructure projects (e.g. district heating, public transport) technical constraints leading to delays and budget deficit. Administrative complexity, high transaction costs and delays associated with large number of policies adopted. Lack of awareness, motivation from public entities, households for participation Need for non-technical change.

13 Conclusions (1/2) General points Almost all EU MS countries (apart from 5) have adopted alternative measures to comply with Article 7 requirements. New builds, products and early stage technology less promoted. Countries relying wholly on EEOs Only one country of the five planning to rely entirely on EEOs has long and successful experience of this policy (Denmark). It may be a risky strategy for the other three.

14 Conclusions (2/2) Countries relying partly or wholly on alternative measures New measures at very early implementation stage meaning some risk attaches to certainty of savings. In most countries, some of the alternative measures adopted appear to be either non-eligible or non-additional. This implies additional policy actions in terms of:. (i) monitoring and verification, (ii) work with energy efficiency stakeholders to mobilize capacities and (iii) identify and better understand best practices. Combination of policy measures Most countries have decided that alternative policies outside the remit of utilities are necessary (e.g. standards, taxation and support for infrastructure and human systems) to meet energy savings target. Their relative roles need further analysis (and will be undertaken later in the project).

15 Discussion points What do governments aim to achieve when opting solely for: - EEOs - Alternative measures or - a combination thereof, What has been the main reason(s) for countries opting to comply solely based on alternative measures? Can alternative measures be compared to EEOs in terms of cost-effectiveness?

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