Energy Saving Policies and Energy Efficiency Obligation Scheme Presentation of the ENSPOL Project Jacob Høgh, Dansk Energi
Project Overview Title: Energy Saving Policies and Energy Efficiency Obligation Scheme Co-Funded by: Intelligent Energy Europe Programme of the European Union Started: March 2014 Expected Completion: August 2016
The Consortium JIN - Joint Implementation Network CRES - Center for Renewable Energy Sources and Saving FIRE - Italian Federation for Rational Use of Energy VITO - Vlaamse Instelling voor Technologisch Onderzoek KAPE - Polish National Energy Conservation Agency EST - Energy Saving Trust AEA - Austrian Energy Agency OUCE - University of Oxford UPRC - University of Piraeus Research Center SEI - Stockholm Environment Institute/ University of York ABEA - Association of Bulgarian Energy Agencies DEA - Danish Energy Association ADEME - French Environment and Energy Management Agency Netherlands Greece Italy Belgium Poland UK Austria UK Greece UK Bulgaria Denmark France W h o w e a r e?
Background The Energy Efficiency Directive - EED, requires each Member States (MS) to apply energy efficiency measures and sets several ambitious objectives for 2020. As prescribed in Articles 7 and 20 of the Directive, each MS must adopt policy measures in order to set up an Energy Efficiency Obligation scheme (EEOs), or alternative policy measures that would deliver a certain amount of end-use energy savings over the 2014-2020 obligation period. According to Article 7: That target shall be at least equivalent to achieving new savings each year from 1 January 2014 to 31 December 2020 of 1,5 % of the annual energy sales to final customers of all energy distributors or all retail energy sales companies by volume, averaged over the most recent three-year period prior to 1 January 2013.
ENSPOL Objectives Assess the relative strengths and weaknesses of EEOs and alternative measures based on the existing experiences and 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 with the guidance developed when designing and implementing new schemes and/or alternative measures for implementation of Article 7. Strengthen cooperation and facilitate dialogue across the EU with regards to policy development and implementation relating to Article 7 EED.
Status in Europe Source: Ricardo-AEA, Report for DG Energy
Status in Europe Source: Ricardo-AEA, Report for DG Energy
Status in Europe Source: Ricardo-AEA, Report for DG Energy
Status in Europe Source: Ricardo-AEA, Report for DG Energy
Status in Europe Source: The Coalition for Energy Savings
EEOs in the UK
Development of scheme design EEOs introduced in 1994 first in Europe. From 2002 scheme restricted to residential sector. Obligated parties are large electricity and gas retailers (with minor exception of 2009-2012, inclusion of electricity generators in sub-section of EEO) Penalty up 5% of turnover. Audits performed by Ofgem Technical minitoringof 5% of installation, can be reduced to 1% sample if failures are less than 5%.
Energy savings targets Implicit annual energy savings target (TWh lifetime) 140 120 100 UK EEO -implicit annual energy savings targets, 1994-2017 80 60 40 20 0 1994-1998 1998-2000 200-2002 2002-2005 2005-2008 2008-2012 2013-2017 Note: UK targets have not always been specified in TWh, most set as carbon targets, which is why these figures are presented as implicit targets. Source: Rosenow 2012, Rosenow et al 2013 1994-2012, author estimate 2013-2017
Lessons learned (1) Placing obligations on energy suppliers in a competitive market has been successful in that targets have, with rare exceptions, been delivered. However, energy suppliers have not moved to an ESCO business model. The approach of requiring a strong focus on measures in low income groups has been characteristic of UK EEOs. This has enabled all income groups to benefit. Until the sudden and unsuccessful changes adopted in 2012 to accompany the Green Deal (a loans policy), EEOs had developed incrementally and grown steadily in scale.
Lessons learned (2) The UK is unique in restricting its EEO to the household sector. There is no convincing logic for this. Tradability of savings has historically been low and therefore there is a concern that costs may be higher than if there were a more liquid market. As in most countries, EEOs have been used primarily to deliver relatively low cost energy efficiency measures. The recent experiment with ECO, ceasing support for low cost measures and focussing on a more expensive measure, solid wall insulation, has not been successful and is now (2014 onwards) essentially being abandoned.
EEOs in France
France The French Energy Savings Certificates Scheme (ESC) set by the 13th July 2005 law on French Energy Strategy Main objective : achieve energy savings in sectors of dispersed activity, mainly buildings, but also light industry, agriculture and transport.
France - Institutional set up
France The «kwh cumac» : the specific measurement unit Energy savings obligations are calculated in end-use energy Cumulated over the lifetime of the project and discounted with a rate set at 4% If energy suppliers don t fulfill their obligations, they have to pay a penalty of 2 c /kwh cumac: 54 TWh cumac (1st period obligations 2006-2009) <-> 1 billion penalty 345 TWh cumac (2nd period obligations 2011-2014) <-> 7 billion penalty 3 choices for energy suppliers to get ESC: implement energy savings programs purchase certificates (on the ESC market ) pay the penalty
France Quantitative results First and second period targets ---> Target widely overtaken 80,7% of operations in residential building ; 9,6% of operations in tertiary building ; Mainly in heating (boilers, heat pumps, etc.). ESC breakdown by sector Source : DGEC (French Energy Department)
France This is the registration tool of White Certificates attributed by the administration to obliged and eligible parties (www.emmy.fr) Each White Certificates owner has his own electronic account Eligeble parties must request at least 20 GWh cumac. The register is also the way to exhange WhCs : Each account s owner can declare himself «buyer» or «seller» and have access to the list of others buyers and sellers The negotiation on the price s sell is given by mutual agreement The exchange is realised by an order between the two accounts First period : a weak market (less than 3% of WhCs exchanged) and low price of certificates : between 0,30 and 0,35 c /kwh cumac Second period : price of certificates between 0,35 and 0,43 c /kwh cumac
EEOs in the Italy
Italy
Italy
Italy
Italy From 2012 on site control of all projects above 3.000 toe, and spot checks of projects bellow this treshold. No data avaliable of results. Penalty calculate on a case by case basis. If 60% of target is reach there is no penalty.
EEOs in Poland
Poland 1. Executing party - present a project aimed at improvement of energy efficiency*. 2. Audit of the project - shows what are the primary energy savings per year (in toe)**. 3. The Energy Regulatory Office announces the auction (at least once a year) and the amount of the white certificates to be issued at the auction. 8. The executing party (if its project won) enrolls at the Energy Exchange. Alternatively bilateral trade takes place outside the Energy Exchange. 7. The ERO issues white certificates to the projects that won in the auction at the request of the entitled parties. 6. The ERO publishes the results of the auction -in accordance to the formula: (t x ωav;ωmax) 9. The ERO informs the Energy Exchange about the issuing of white certificates, the white certificates are registered at the Exchange,and from this moment the executing party has property right and can trade them. 10a. The obligated party purchases the white certificates from the executing party at the Energy Exchange. 11. The obligated party submits the white certificates to the ERO. 4. The executing party makes its bids at the auction to obtain white certificates (attaching, inter alia, the energy audit). 5. The Energy Regulatory Office carries the auction -checks the correctness of the applications and of the audits. Source: EA Energianalyse 10b Alternatively, the obligated party can pay the opt-out fee to the National Fund of Environmental Protection and Water Management.
EEOs in Belgium
Belgium 3.000 2.500 2.000 GWh 1.500 1.000 500 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 Primary Savings Target 381 551 583 606 605 646 641 1.318 1.245 Primary Savings Realized 763 790 982 573 1.258 1.773 2.582 2.308 2.709
Project Website Website s Address: http://enspol.eu/ Two interfaces with differentiated information for: I. Normal and II. Registered users
Other relevant info Compliance with EED Article 7 Requirements Concerning Methodologies for Energy Savings Calculation: https://ec.europa.eu/energy/sites/ener/files/documents/final%20report%20o n%20article%207%20eed.pdf Analysis of Article 7 Member States reports: http://energycoalition.eu/analysis-article-7-member-states-reports
Energy Saving Policies and Energy Efficiency Obligation Scheme Presentation of the ENSPOL Project Tak for opmærksomheden! Jacob Høgh, Dansk Energi