Beta Paramita       2011DBB402Chau Thi Cam Hong   2012WACO16Qiong Wu            2012 DBB001                               ...
CONTENTBACKGROUND Problem Research Area Aim of StudyDISCUSSION Energy Saving Obligation to Utilities Obligation to la...
Background BACKGROUND Climate      Cheapest                              Energy Savings (ES) without                      ...
Aim of this paperRESEARCH AREA   EUROPE (EU) : ITALY, FRANCE, FLEMISH REGION   UNITED KINGDOM   UNITED STATES   AUSTRA...
BACKGROUND Problem Research Area Aim of StudyDISCUSSION Energy Saving Obligation to Utilities Obligation to large end...
Energy saving obligations to utilitiesEnergy Saving Obligation to Utilities                  obligations to               ...
Energy saving obligations to utilities in EU    A new policy instrument introduced in the EU to        support energy effi...
White certificates in EU EUWhite Certificate in  Concept of                                     Core elements of  White Ce...
White Certificate in EU  In Europe several countries have implemented a  white certificate scheme or are seriously  consid...
Energy Efficiency in US                                             Energy saving obligation in US:                       ...
Resource tiers                                                   An important                                             ...
US Experience                                         2006  before 2005                         Combined efficiency and  ...
Trading GHG Emissions in USA mandatory scheme that enablestrading of GHG emissions forpower generation in the US is theReg...
Energy Efficiency in Australia            Australian Bureau            of Agricultural and    2003            Resource    ...
BACKGROUND Problem Research Area Aim of StudyDISCUSSION Energy Saving Obligation to Utilities Obligation to large end...
The Tokyo Emission Trading Scheme 2000                              2010 - 2015Tokyo Metropolitan                1. Catego...
Emission Trading Scheme (ETS)    Trading in different forms, such as: 1. Excess emission reductions trading between    com...
The UK carbon reduction commitment(recently renamed the CRC energy efficiency scheme)                                     ...
The CRC energy efficiency scheme                                   19
Table of Conversion Factors      Converting fuel types to CO2     Gross CV Basis      Fuel Type                           ...
The CRC energy efficiency scheme  Participants in the CRC will also be able to   purchase (but not sell) emission   allow...
BACKGROUND Problem Research Area Aim of StudyDISCUSSION Energy Saving Obligation to Utilities Obligation to large end...
Where to place the obligations?  There are many diverse policy options for   formulating energy saving obligations.  The...
Obligation Scheme on large end – users    Table of comparison of Energy Saving Obligation Scheme on large end – users     ...
Overall design and target setting Are overall final or primary energy savings to be  achieved and in which sectors? Shal...
ITALY + FLEMISH REGION  Obligation of energy saving to   distribution companies  Stable regulated companies  Have no st...
FRANCE, GREAT BRITAIN, ITALY AND                   FLEMISH REGION)                  obligation of energy saving to distri...
BARRIERSPLACING THE OBLIGATION ON LARGE END-USER It will directly get full credit for implemented action   economic and ...
Supplier VS Large End-user: Energy market structure less important when the  obligation to is put on large end-user Such...
CONCLUSION  Putting an obligation on an actor allocates   responsibility and will lead to the delivery of   energy effici...
どうも ありがとうございます                 31
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Where to place the saving obligation

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Where to place the saving obligation

  1. 1. Beta Paramita 2011DBB402Chau Thi Cam Hong 2012WACO16Qiong Wu 2012 DBB001 1
  2. 2. CONTENTBACKGROUND Problem Research Area Aim of StudyDISCUSSION Energy Saving Obligation to Utilities Obligation to large end-users Where to place the obligation?CONCLUSION The best scheme for energy saving in residential and commercial + industrial sector 2
  3. 3. Background BACKGROUND Climate Cheapest Energy Savings (ES) without Reduce energy technology change demand -- behavioural aspectmitigation Fastest To overcome the barriers Energy Efficiency (EE) -- technological aspectLabels and standards, building codes, information campaigns, voluntary agreements,taxation, investment subsides, suppliers’ obligations and financial incentives. Market based How is the mechanisms obligation defined What is the total Who will be subject obligation to the obligation Decision of the Setting of 3 an obligation
  4. 4. Aim of this paperRESEARCH AREA EUROPE (EU) : ITALY, FRANCE, FLEMISH REGION UNITED KINGDOM UNITED STATES AUSTRALIA JAPAN MAIN OBJECTIVE To explore several innovative policies and measures implemented worldwide, identify the obliged parties and the reasoning behind that, and come up with useful suggestions for policymakers. 4
  5. 5. BACKGROUND Problem Research Area Aim of StudyDISCUSSION Energy Saving Obligation to Utilities Obligation to large end-users Where to place the obligation?CONCLUSION The best scheme for energy saving in residential and commercial + industrial sector 5
  6. 6. Energy saving obligations to utilitiesEnergy Saving Obligation to Utilities obligations to utilities US Australia 6
  7. 7. Energy saving obligations to utilities in EU A new policy instrument introduced in the EU to support energy efficiency is introducing obligations on some categories of energy market operators to deliver a certain amount of energy savings. A tradable savings certificates white certificates 7
  8. 8. White certificates in EU EUWhite Certificate in Concept of Core elements of White Certificates white certificates  Establishing energy saving A kind of documents obligation on some category of White certificates certify that a certain market actors; reduction of energy consumption has been attained;  Technical processes to support Based on suppliers’ obligation the scheme and the market backed by a reputable body An obligation to achieve a certain target of energy savings, if energy producers do not authorising that the claimed meet the mandated target for energy energy savings are valid; consumption they are required to pay a  Tradable instrument as well as penalty; rules and, if deemed necessary, Tradable infrastructure for trading; The white certificates are given to the  Cost recovery mechanism in producers whenever an amount of energy some cases; is saved whereupon the producer can use  Enforcement mechanisms and the certificate for their own target sanctions. compliance or can be sold to (other) parties who cannot meet their targets 8
  9. 9. White Certificate in EU In Europe several countries have implemented a white certificate scheme or are seriously considering doing so. Italy started a scheme in January 2005; France and Denmark a year later. Great Britain has combined its obligation system for energy savings with the possibility to trade obligations and savings. The Netherlands and Poland are seriously considering the introduction of a white certificate scheme in the near future. 9
  10. 10. Energy Efficiency in US Energy saving obligation in US:  Target referred to EERSs (Energy Efficiency Resource Standards)  Combined with renewable energy obligation referred to RPSs (Renewable Portfolio Standards) Texas was legislated for distributors to offset a certain percentage of their load growth through end-use energy efficiency. Five states have incorporated tradable certificates in their portfolio standards ,but only Connecticut is actively. Some states energy efficiency has been introduced as a target delivery option within renewable energy obligation.
  11. 11. Resource tiers An important structural feature of combined renewable and efficiency portfolios in the US are the resource tiers, which specify the type of resources that are expected to contribute to a certain share of the overall target Separate tiers for efficiency and renewable energy allow capturing energy saving opportunities and are likely to provide more certainty to market.
  12. 12. US Experience 2006 before 2005  Combined efficiency and renewable portfolio targets Texas is the first state are mostly adopted introduce a certain percentage of their load growth through 2010 end-use EF  The end of 2010  scheme was introduce before 26states have energy 2005 and came into force in efficiency by target as 2007-2008  5 states EERSs combined with incorporated tradable renewable energy as RPSs certificates in their portfolio standards, but only Apart from supplier/distributor Connecticut is actively trading, obligation, include obligation North Carolina and Illinois are borne by a state agency called gathering input on certificate Energy Efficiency Utility trading Ex. Vermont
  13. 13. Trading GHG Emissions in USA mandatory scheme that enablestrading of GHG emissions forpower generation in the US is theRegional Greenhouse GasInitiative (RGGI)  10 states :Connecticut, Delaware, Maine,Maryland, Massachusetts, NewHampshire, New Jersey, NewYork, Rhode Island and Vermonthave capped and will reduce CO210% by 2018The main characteristic of this scheme is that auctioning ofallowances is predominant and the main projects that canbe financed by the revenues collected through auctioningrefer to energy efficiency and renewable energy
  14. 14. Energy Efficiency in Australia Australian Bureau of Agricultural and 2003 Resource Economics and Greenhouse Abatement Certificates Sciences, Energy in Australia 2010, (GGAS) introduce since 2003 in NSW, Table F: Australian Australia  To achieve the required energy reduction in emissions, eligible parties consumption, by industry and fuel purchase and surrender tradable type certificates called New South Wales Greenhouse Abatement Certificates (NGACs). 2009 Separate scheme : 1. The energy Saving Scheme (EES) in NSW 2. The Energy Efficient Target in Victoria (VEET) 3. The Residential Energy Scheme in South Australia (REES)
  15. 15. BACKGROUND Problem Research Area Aim of StudyDISCUSSION Energy Saving Obligation to Utilities Obligation to large end-users Where to place the obligation?CONCLUSION The best scheme for energy saving in residential and commercial + industrial sector
  16. 16. The Tokyo Emission Trading Scheme 2000 2010 - 2015Tokyo Metropolitan 1. Category 1-A: 8 % for officeGovernment (TMG) start buildings, public facilities,Tokyo CO2 Emission commercial buildings,Reduction Program, prioritized lodging, educational facilities,from large-scale business and medical facilities, etc. that do not fall under Category 1-B;building, which emit 40% of allCO2 in this sector 2. Category 1-B : 6 % for buildings in which air 2002 - 2005 conditioning/heating from district cooling/heating plants1st phase resulted average make up more than 20 % ofabout 2% emission reduction energy consumption; andthen change the aim at a 25% 3. Category 2 : 6 % forin the city baseline carbon factories that do not apply toemission by 2020 Category 1
  17. 17. Emission Trading Scheme (ETS) Trading in different forms, such as: 1. Excess emission reductions trading between companies 2. SMF credits 3. Credits from outside the city 4. Renewable energy credits 5. Green Electricity Certification 6. City Solar Energy Bank
  18. 18. The UK carbon reduction commitment(recently renamed the CRC energy efficiency scheme) The CRC is a mandatory scheme aimed at improving energy efficiency and cutting emissions in large public and private sector organizations. These organizations are responsible for around 10% of the UK’s emissions. 18
  19. 19. The CRC energy efficiency scheme 19
  20. 20. Table of Conversion Factors Converting fuel types to CO2 Gross CV Basis Fuel Type Measurement Unit Emissions Factor kgCO2 / per measurement unit Aviation Spirit tonnes 3128 Aviation Turbine Fuel tonnes 3150 Basic Oxygen Steel (BOS) gas kWh 0.996 Blast furnace gas kWh 0.996 Burning Oil/Kerosene/Paraffin litres 2.532 Cement industry coal tonnes 2373 Coke Oven Gas kWh 0.146 Commercial/Public Sector Coal tonnes 2577 Coking Coal tonnes 2932 Colliery Methane kWh 0.184 Diesel litres 2.639 Electricity kWh 0.541 Fuel Oil tonnes 3216 Gas Oil litres 2.762 Industrial Coal tonnes 2314 Lignite tonnes 1203 Liquid Petroleum Gas (LPG) litres 1.495 Peat tonnes 1357 Naphtha tonnes 3131 Natural Gas* kWh 0.1836 Other Petroleum Gas kWh 0.2057 Petrol litres 2.3035 Petroleum coke tonnes 2981 Scrap tyres tonnes 1669 Solid smokeless fuel tonnes 2810 Sour gas kWh 0.2397 Waste (other than waste oil or tonnes 275.0 waste solvents) Waste oils tonnes 3026 20 Waste solvents tonnes 1613
  21. 21. The CRC energy efficiency scheme  Participants in the CRC will also be able to purchase (but not sell) emission allowances from the EU Emission Trading Scheme at a price that is higher of the EU ETS price or the minimum CRC floor price.  The floor price was set at £16/t (= 1973.76 ¥) CO2 for 2013, gradually rising to £30/t (= 3700 ¥) by 2020 21
  22. 22. BACKGROUND Problem Research Area Aim of StudyDISCUSSION Energy Saving Obligation to Utilities Obligation to large end-users Where to place the obligation?CONCLUSION The best scheme for energy saving in residential and commercial + industrial sector 22
  23. 23. Where to place the obligations?  There are many diverse policy options for formulating energy saving obligations.  Their efficiency is likely to be correlated with local framework conditions and influential historically grown structures in the energy sectors of each country 23
  24. 24. Obligation Scheme on large end – users Table of comparison of Energy Saving Obligation Scheme on large end – users Tokyo Emissions Trading Scheme UK CRC Energy Efficiency Scheme Obligated actors Large end-users (~1,300 facilities & office buildings) Large end-users (~5,000 private and public sector organizations) Period 2010-2014 (2nd period: 2015-2019) 2010-2012 (2013 onwards: first capped period) Target Cap based on 6% reduction to baseline 2000 (2nd Reducing around 1.2 million of CO2 per year by 2020 period 17% compared to emissions in 2000) Coverage 40% of commercial & industrial sector emissions, Around 25% of business sector emissions, electricity mostly electricity Unit CO2 – emissions reductions CO2 – emissions reductions Allocation Grandfathering Auctioning Compliance Reducing electricity consumption through installing No individually specified target but incentive to reduce efficient equipment at own sites, or buying credits on electricity consumption by becoming more efficient the market (Eligibility of renewable energy credits, green electricity certification, credits stemming from city solar energy bank) Measurement Self reporting according to Guideline from the Self-certification of emissions (spot audits) reporting and municipal government verification Penalty/incentive Increase of target by 1.3 Public league table revealing comparative emissions mechanism reduction performance 24
  25. 25. Overall design and target setting Are overall final or primary energy savings to be achieved and in which sectors? Shall energy saving be reached via network- bound energy only? Shall only the untapped potential in the residential sector be addressed? Shall all measures be tailored so that they reduce the maximum amount of carbon dioxide? 25
  26. 26. ITALY + FLEMISH REGION  Obligation of energy saving to distribution companies  Stable regulated companies  Have no strong link to end-user  have no interest to develop energy service as added value UK + FRANCE supplier obligation are imposed to retailers possibility of conflict with their main resources regulated end-user tariffsSource: Based on the information from “The Digest of United Kingdom Energy Statistics 2006”. UNITED STATES alternative to deliver energy saving target, like Vermont as state-wide provider of energy efficiency, it is run by a competitively selected contractor 26
  27. 27. FRANCE, GREAT BRITAIN, ITALY AND FLEMISH REGION)  obligation of energy saving to distribution companies  stable regulated companiesELIGIBLE ACTOR  supplier have an interest in delivering them selves  placing obligation on distribution company may stimulate third actor involvement DENMARK  distribution companies under obligation are requested to contract our part of efficiency project to independent companies SPAIN, GERMANY, SWEDEN  have no supplier obligation, not directly triggered by the white certificate ENERGY SAVING OBLIGATION ARE NOT REALLY CHANGING THE UTILITIES BUSINESS MODELS TO 27 ENERGY SERVICE COMPANY
  28. 28. BARRIERSPLACING THE OBLIGATION ON LARGE END-USER It will directly get full credit for implemented action  economic and public image benefits Private end-user tend to be more cost cautious  recovery mechanism burden into every actor on the chain, which is takes its profit margins Direct end-use obligations may be expected to bring lower transaction costs for obliged parties Easier to integrate the transport sector into end-user obligations  to cover emission/energy consumption for transportation TRADING MECHANISM WILL BRING WIDER BENEFITS TO A SYSTEM WITH OBLIGATIONS IMPOSED ON 28 END-USERS.
  29. 29. Supplier VS Large End-user: Energy market structure less important when the obligation to is put on large end-user Such as Tokyo ETS and CRC , they define a minimum threshold for eligibility  which is called personal carbon allowance Energy efficiency in residential sector more easier to delivered by mechanism of supplier and often dominated by standard, straightforward and well- understood technologies such as efficient product Energy efficiency operator like VERMONT model, also an alternative mechanism 29
  30. 30. CONCLUSION  Putting an obligation on an actor allocates responsibility and will lead to the delivery of energy efficiency measures  Separates obligations may be establish in order to reach certain targets  The most important type of potential sector will be harnessed by saving obligation  residential vs industrial and commercial sector  For residential sector the utilities (mainly supplier) could be place to deliver the saving  ESCO play an important role in delivering saving for industrial and commercial sector 30
  31. 31. どうも ありがとうございます 31

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