Energy Efficiency Directive Article 7

Transcription

1 Energy Saving Policies and Energy Efficiency Obligation Scheme Energy Efficiency Directive Article 7 14 October 2016 Dr Tina Fawcett, Environmental Change Institute, University of Oxford

2 Outline 1. ENSPOL in brief 2. Introduction to Article 7 3. Policies introduced by member states 4. EEOS 5. Alternative measures 6. Final thoughts

3 ENSPOL in brief 13 member consortium of universities, energy agencies and NGOs. Project Aims: Assess the relative strengths and weaknesses of EEOs and alternative measures based on the existing experiences & plans of MS. Complement and enhance the work of existing EU and MS initiatives concerned with the implementation of Article 7 EED. Improve knowledge and capabilities of MS outside of the project consortium. Strengthen cooperation and facilitate dialogue across the EU with regards to policy development and implementation.

4 Resources Project website Reports including on existing and planned EEOs in the EU, EEOs outside the EU, alternative measures, country context, policy mix Policy briefs Interactive web platform: Allows searching by country & by policy type. Summary reports on technical issues, including additionality, materiality, cost-effectiveness, social issues

5 Article 7 overview Article 7 sets out how countries are to calculate their national energy savings targets and the policy means by which this may be achieved, with particular mention of Energy Efficiency Obligation Schemes (EEOS). Article 7 is expected to deliver more than half of the required energy savings of the % reduction target. It is deliberately flexible; it allows Member States to choose how to deliver their savings commitments. To be updated, proposals expected December 2016

6 Article 7 & the policy landscape Article 7 policies National & subnational policies not included in Article 7 submission Other EU energy efficiency policies

7 Article 7 characteristics Target: 1.5% of final energy sales After exclusions and exemptions 0.75% Policy instruments: choice between Energy Efficiency Obligation Schemes (EEOS) and alternative measures, or a combination Calculation method: detailed requirements to account for additionality, materiality, double counting etc. (Annex V) Monitoring and verification: detailed requirements including statistically representative samples, audit protocols, independence etc. (Annex V)

8 Article 7 in reality In theory, Article 7 targets can be met by delivering energy savings from all sectors of the economy. In reality, much policy is focused on the existing buildings sector. Given its additionality requirements, Article 7 is trying to influence the more difficult areas for policy to reach, without a clearly defined route to doing so.

9 Current plans for delivery of Article 7 requirements

10 The policy mix Most Member States (MS) have employed a mix of policies, rather than single policies, but the composition of these policy mixes varies considerably. The reasons why MS have chosen the mixes they have are rooted in many different contextual factors, including history, geography, politics and broader policy goals. Nonetheless, most MS are trying to encourage the adoption of similar technologies.

11 Expected energy savings by policy type Standard and norms 9% Energy labelling schemes 0% Regulation or voluntary agreements 11% Training and education 4% Other 6% Energy Efficiency Obligation Schemes (EEOS) 34% Financing schemes or fiscal initiatives 19% Energy or CO2 taxes 14% National fund 3% Source: Commission Services (2016)

12 Savings by sector Industry; 8% Transport; 6% Cross-cutting; 44% Buildings; 42% Source: Commission Services (2016)

13 EEOS overview There are 16 planned and existing and EEOS in the EU. They differ with respect to number and type of obliged parties (distributors or retailers); fuels covered, eligible sectors, eligible projects, monitoring, funding, target metrics The unique features of EEOS as a policy are its method of raising funding from energy customers and the role of energy distributors / retailers in operating the scheme. Its role could be replaced with other subsidy schemes, funded by the taxpayer.

14 Key choices in EEOS design Obliged parties Obliged parties Suppliers Distributors Suppliers and distributors Countries AT, BG, FR, IE, LU, PL, SL, ES, UK HR, DK, EE, IT, MT LV, LT Sectors Sectors All sectors Residential All sectors excluding transport Countries AT, BG, HR, DK, EE, FR (excl. EU ETS sector), IE, IT, LV, LT, LU, PL, SL, ES MT, UK DK

15 Variations across EEOs Distribution of benefits Most existing and proposed EEOs make no special allowance for low income / fuel poor households. UK is unique in linking its EEO so strongly to low income and vulnerable households. Trading / relevant parties Variety of degrees of trading / white certificates within schemes. In the French scheme local authorities have been able to generate and raise income from energy saving certificates. The design of the scheme can bring new players into the market (e.g. ESCOs in Italy).

16 Alternative measures Most alternative measures proposed by MS are of financial nature, in the form of grant schemes and low-interest loans Support for human agency including information, education, advice, energy management and best practice dissemination programmes are present in most country plans Of countries studied in more detail within ENSPOL, most policies to meet Article 7 are extensions of existing policies. Technologies: higher cost measures (e.g. whole house renovation, solid wall insulation) seem to be the main focus of alternative measures proposed in the residential sector. In the building sector, energy renovation of the thermal envelope of existing buildings is common.

17 Concerns & challenges Uncertainties around the reliability of expected savings, due to: inclusion of non-energy efficiency measures, non-additionality, double counting, risk of non-delivery and weak monitoring and verification systems. A significant percentage of reported savings at risk of not being delivered (Commission services 2016). Complexity of legislation and its interaction with other EU legislation, especially EPBD (Energy Performance of Buildings Directive), makes compliance and monitoring of compliance challenging. In terms of energy savings, a key challenge is adapting policy as the low-cost opportunities reduce. Can Article 7 policies support deep and complex refurbishment, technical innovation or behavioural change?

18 The future There has been a consultation on revisions to EED (closed Jan 2016) - legislative proposals expected December 2016 (previously expected Sept 2016). Leaked version suggested largely policy continuity for Article 7, which, importantly, would continue into the future. EU has ratified Paris Accord implying greater commitment to carbon reductions and should imply a much greater role for energy efficiency. Leaked proposals suggest EC prefers 30% energy savings target (12 Sept 16) A leaked draft of the Energy Efficiency Directive suggests that the European Commission will back a binding, EU-wide 30% energy savings target for 2030 as well as new flexibilities for a savings obligation scheme for all member states Make EU energy efficiency goals binding or risk failure, warns Germany (10 Oct 16) Germany has warned that EU member states could fail to meet new energy efficiency targets for 2030 if they are not made mandatory, ahead of the European Commission s official publication of proposals in December 2016