1. ExCo 05 // 20-22 September 2011
CEM02
February 15, 2011
July 19, 2011, Paris
Presentation
White certificates
Author
2. ExCo 05 // 20-22 September 2011
What is a White Certificate?
White certificate is a document certifying that a
certain reduction of energy consumption has been
attained
As a rule the white certificates are tradable and
combined with an obligation to achieve a certain
target of energy savings
1
3. ExCo 05 // 20-22 September 2011
Basic principles
The white certificates are given to an actor
whenever the targeted amount of energy is saved;
the actor can use the certificate for its own target
compliance or it can be sold to parties who cannot
meet their targets.
If energy producers do not meet the mandated
target for energy consumption they are required to
pay a penalty or to buy a certificate from another
actor.
2
4. ExCo 05 // 20-22 September 2011
Scheme of work
Government
Energy Efficiency
targets (in WhC)
$
Company 1:
Target met
Company 3:
Company 2:
Target
overachieved
$
Target
underachieved
Market place for WhC trade
Company 4:
Target
underachieved
3
5. ExCo 05 // 20-22 September 2011
Countries which implemented WhC
Italy (2005)
France (2006)
UK (1994)
India (2011)
4
6. ExCo 05 // 20-22 September 2011
Italy
The obligations were placed on:
10 electricity distributors and
20 gas distributors.
The obligations allow the energy distributors to meet their targets by
improving the efficiency of their own business, but at least 50% of the
White Certificates must be met via reduction of electricity and gas in
their final customers’ premises.
Although in principle any fuel can be saved, in practice after one year
the proportion in savings of energy was as follows: electricity accounted
for 74.7%, gas for 21.9% and other fuels for only 3.4%.
It is expected that more than 30% of the expected carbon dioxide
savings by 2012 will come from the White Certificate activities.
5
7. ExCo 05 // 20-22 September 2011
Italy
Results achieved (2005-2007):
2 million toe saved against a target of 1,1 million toe;
78% electricity savings; 18% natural gas savings; 4% other fuels savings;
90% of savings delivered via projects for which simplified M&V
(measurement and verification) methodologies
75% of savings delivered by energy service providers (including ESCOs);
growing number of information campaigns and training programs.
6
8. ExCo 05 // 20-22 September 2011
India: Perform, Achieve and Trade (PAT) Program
Specific Energy Consumption (SEC) reduction targets for 714 energy-
intensive Designated Consumers from the following sectors:
Power
Fertilizer
Chor – Alkali
Iron & Steel
Cement
Textiles
Pulp & Paper
Aluminium
Total energy consumption by all 714 Designated Consumers under
proposed PAT scheme - 181 MTOE
Energy Savings Potential (%) : Cement 16%, Paper and Pulp 26%,
Fertilizers 15%, Aluminium 23%, Iron and Steel 24%, Chlor Alkali 17%
7
9. ExCo 05 // 20-22 September 2011
India
1. Policy Governor & Compliance Driver
(Bureau of Energy Efficiency)
4. Stock
Exchange
Set Compliance Directives
3. Designated Consumers
Industry-A
Energy
Audit
Industry-B
5. Transfer
Agent /
Depositories
6. Accredited
Verification
Agency
Recommendation
for Issue of
ESCerts
Issue of
ESCerts
2. Market Governor
Institution
Policy Governor and Compliance Driver
Role
Transfer Agents / Depositories
Compliance assurance through incentives and
automatic penalties
Ensure publicly available data
Undertake energy efficiency measures; appoint
rd
accredited 3 party energy auditors
Maintain data of traded prices, traded volumes and
trends.
Hold the ESC in electronic form.
Third Party energy Auditors
Audit industry energy savings
Market Governor
Industry
Trading Platform
8
10. ExCo 05 // 20-22 September 2011
Why implement the WhC
Market mechanism to improve energy efficiency;
Tradable nature of the WhC ensures achievement
of the EE targets at the lowest possible cost;
Transparency of the scheme to market actors;
Proved to be useful and efficient in a number of
countries;
Can be modified according to the specific country
requirements.
9
