The presentation used to summarise my paper presented at 2019 ECEEE summer study. The presentation goes through the whole life of the scheme, highlighting pros and cons of each phase, and shows the last modification of the rules of the scheme.

1. White certificates in Italy:
will it overcome the huge
challenges it has been
facing in the last three
years?
Dario Di Santo, FIRE
ECEEE, 6 June 2019

2. www.fire-italia.org
The Italian Federation for the Rational use
of Energy is a no-profit association founded
in 1987 that promotes energy efficiency,
supporting energy manager, ESCOs and other
companies dealing with energy.
Besides the activities directed to its members,
FIRE operates under an implementing
agreement with the Ministry of Economic
Development to manage the Italian energy
manager network since 1992.
In order to promote energy efficiency FIRE
cooperates and deals with public authorities,
energy technology and service companies,
consultants, medium and large consumers,
universities and associations to promote best
practices and improve the legislation.
FIRE manages SECEM - an accredited body
under ISO 17024 - to certify Energy
management experts (EGE - UNI CEI 11339).
FIRE: the association for energy efficiency
2

3. FIRE: the association for energy efficiency
Around 400 members, almost equally
divided between organisations and
professional, including including both
supply and demand side (medium and
large end-users).
3
FIRE can be a partner for many activities:
carrying out surveys among energy managers,
ESCO, EGE, companies with ISO 50001, etc .;
implementation of market and sectoral studies;
evaluation and support on incentive tools and
policies;
information campaigns and behavioural change;
dissemination campaigns;
energy audits and feasibility studies;
training courses on energy management and its
tools, policies and incentives, solutions for
energy efficiency, cogeneration, IPMVP, etc.;
European projects, international cooperation,
and much more…
Get in touch!
segreteria@fire-italia.org

4. 4
Besides being involved in many European
projects, listed next, FIRE implement surveys
and market studies on energy related topics,
information and dissemination campaigns,
and advanced training.
Some of FIRE clients over the years: Ministero
dell’Ambiente, ENEA, GSE, RSE, Regione
Piemonte, Provincia di Torino, Comune di
Vignola, EASME, Ecofys, ENEL, Engie, Estra,
Ferrovie dello Stato, FCA, Galbani, Gruppo
HERA, Hitachi, Leonardo, Poste Italiane,
Schneider Electric, TIM, Unioncamere, Vigili
del Fuoco, Wind Tre, universities, associations,
energy agencies and exhibition organizers.
FIRE: the association for energy efficiency
www.fire-italia.org
Cooperates with:
Policy
Management and good practices
Financing of projects
EPC and standardization
On-going and just completed EU projects:

5. The scheme basics: EEO + WhC trade
5
Demand
WhC is an EEO
DSOs have to meet
energy saving
targets
Certificates can be
traded on the market
Voluntary parties (small
DSOs, ESCOs and
companies with energy
management expert or
EnMS) can also obtain
certificates
Supply
WhC is partly an
incentive
1 WhC = 1
addi*onal toe
All sectors are
virtually eligible.
Source: FIRE.
The Italian scheme is an EEO scheme with WhC market. It has been
working since 2005 and has so far delivered more than 27 Mtoe of
additional energy savings.

6. WhC phase I - 2005-2007
Main rules:
Savings assessed as standard projects SPs (no meters),
simplified monitoring projects SMPs (meters required, but
with standardised approach for consumption baseline and
correcting factors), monitoring plan projects MPPs (real
energy savings).
Additionality defined based on mandatory requirements
(all sectors) and taking into account the average installed
park (industry).
WhC lifetime 5 years (8 for building envelope projects).
Possibility to present proposals after the start up of
energy efficiency projects (even years) for all energy
saving evaluation approaches (because WhC scheme
should have started in 2002).
Differentiated value of savings between electricity (lower),
gas (higher), and other fuels (none).
Tariff reimbursement fixed at 100 euros.
Target flexibility at 50% of DSO’s targets to be recovered
in 2 years.
6

7. WhC phase I - 2005-2007
7
0
20
40
60
80
100
120
M
ar2006Apr2006
M
ay2006Jun
2006Jul2006
Aug
2006Sep
2006Oct2006
Nov2006Dec2006Jan
2007Feb
2007
M
ar2007Apr2007
M
ay2007Jun
2007Jul2007
Aug
2007Sep
2007Oct2007
Nov2007Dec2007
WhC spot market prices (€/certificate)
Electricity savings price per session Tariff Reimbursement
Gas savings price per session
FIRE on GME data.
0,0
0,5
1,0
2005 2006 2007
White certificates targets and achievements
Original targets (million WhC) Updated targets (million WhC)
Issued WhC 31/5-1/6 (million WhC) Savings (Mtoe)
FIRE on GSE and GME data.
This phase was characterised by an excess of supply (thanks to CFLs and other simple
solutions) that led to a decrease of WhC price for electricity savings (DSOs were obliged to
present at least 50% of projects dealing with their distributed energy carrier. Updated
targets were lower due to their calculation for each DSO.

8. WhC phase II - 2008-2012
Main news (part A - 2008-2011):
Increase of the targets and extension to 2009.
Addition of end-users to the eligible parties.
Unified value of energy savings.
Tariff reimbursement linked to a fuel mix (ranging within
89-104 euros over time).
Target flexibility at 60% of DSO’s targets to be recovered
in 1 year.
Introduction of a clause to automatically increment the
targets in case of ever supply higher than 5%.
Progressive reduction and then elimination from 2011 of
CFLs and other easy solutions (change of additionality).
Main news (part B - 2011-2012):
Introduction of the tau multiplier to take into account the
technical life of energy efficiency projects.
8

9. WhC phase II - 2008-2012
9
Over the years there has been an increase of uncovered targets, leading to higher updated
targets. This produced a continuous rise of the WhC price till the end of 2011, when the
tau coefficient was introduced, improving the economic attractiveness of the scheme.
Progressive growth of MPPs and industrial projects. Decoupling between WhC and targets.
0
20
40
60
80
100
120
Jan
2008Apr2008Jul2008Oct2008Jan
2009Apr2009Jul2009Oct2009Jan
2010Apr2010Jul2010Oct2010Jan
2011Apr2011Jul2011Oct2011Jan
2012Apr2012Jul2012Oct2012
WhC spot market prices (€/certificate)
Weighted average price per session Tariff Reimbursement
FIRE on GME data.
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
2008 2009 2010 2011 2012
White certificates targets and achievements
Original targets (million WhC) Updated targets (million WhC)
Issued WhC 31/5-1/6 (million WhC) Savings (Mtoe)
FIRE on GSE and GME data.

10. WhC phase III - 2013-2016
Main news:
New targets till 2016, expressed as white certificates to
take into account the tau coefficient.
Decision to stop by the end of 2012 the possibility to
present MPP projects after their implementation (SPs and
SMPs have to be presented within 6 months from
reaching the minimum project size).
GSE took over the role of managing agency in place of
ARERA that maintained the role of determining the tariff
reimbursement and applying fines to defaulting DSOs.
Flexibility clause extended again to two years and
increased to 50% of the target for 2013-2014;
Introduction of new SPs and SMPs files, covering also the
transport sector.
From 2014 the tariff reimbursement has been linked to
the weighted average market price.
More or less from the same period additionality started to
take into account the pay-back time of projects, cutting
off the most convenient.
10

11. WhC phase III - 2013-2016
11
The tau coefficient initially allowed for a recover of the supply/demand ratio. However,
since 2015 the issue started rising again, both due to the new rules on presentation
timeline and “pay-back time” additionality. In the second half of 2016 the growing shortage
was coupled by the draft of the new guidelines, considered a worsening by WhC operators,
with a strong impact on WhC prices.
0
50
100
150
200
250
300
Jan
2013Apr2013Jul2013Oct2013Jan
2014Apr2014Jul2014Oct2014Jan
2015Apr2015Jul2015Oct2015Jan
2016Apr2016Jul2016Oct2016
WhC spot market prices (€/certificate)
Weighted average price per session Tariff Reimbursement
FIRE on GME data.
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
10,0
11,0
12,0
13,0
14,0
2013 2014 2015 2016
White certificates targets and achievements
Original targets (million WhC) Updated targets (million WhC)
Issued WhC 31/5-1/6 (million WhC) Savings (Mtoe)
FIRE on GSE and GME data.

12. WhC phase I - 2005-2007
Main news:
Reduced 2017-2020 targets were set.
Elimination of the tau coefficient and differentiation of
WhC lifetime.
Additionality defined based on mandatory requirements
and performance of supply market (i.e. it is the present
performance to be considered, not the installed park).
New standard projects with sample measure (SPSMs
metered on a sample).
Elimination of SPs and SMPs.
Hourly metering required for all projects.
New stricter timeline to present projects, made difficult in
conjunction with the metering requirements.
Projects implemented among different clients can be
collected in one proposal only if the ESCO finances them.
60% target flexibility to be recovered in one year.
12

13. WhC phase IV and V - from 2017 on
13
The effect of the targets cut was wasted due to the established and suspected frauds (more
than 1.3 million WhC per year lost). New additionality caused a drop of WhC per proposal
for new projects and no more SPs to use hindered the supply recover. These facts pushed
WhC price to 480 euros, when the Ministry decided to introduce a cap on the tariff
reimbursement for DSOs.
0
100
200
300
400
500
600
Jan
2017
Feb
2017
M
ar2017
Apr2017
M
ay2017
Jun
2017
Jul2017
Aug
2017
Sep
2017
Oct2017
Nov2017
Dec2017
Jan
2018
Feb
2018
M
ar2018
Apr2018
M
ay2018
Jun
2018
Jul2018
Aug
2018
Sep
2018
Oct2018
Nov2018
Dec2018
Jan
2019
Feb
2019
M
ar2019
Apr2019
M
ay2019
WhC spot market prices (€/certificate)
Weighted average price per session Tariff Reimbursement
FIRE on GME data.
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
10,0
11,0
12,0
2017 2018
White certificates targets and achievements
Original targets (million WhC) Updated targets (million WhC)
Issued WhC 31/5-1/6 (million WhC) Savings (Mtoe)
FIRE on GSE and GME data.
(partial data)

14. WhC market and economics
14
Comments:
The WhC market requires an
adequate supply elasticity to
work.
Equilibrium between demand
and supply is impossible to
obtain by setting targets in the
long run.
An unstable market makes the
s c h e m e u n r e l i a b l e o r
speculative.
If WhC are obtained over a
certain lifetime, the effects on
the scheme cost can be huge.
WhC
lifetime
Additio-
nality
Certificates
issued per year
per saved toe
Discounted
value of
certificates at
100 euro/
certificate
Discounted
value of
certificates at
250 euro/
certificate
Value of
avoided gas
imports
D.M. 28/12/2012 5 50% 1.68 727 1,818 1,232
D.M. 11/01/2017 10 10% 0.10 77 193 246
D.M. 10/05/2018 7 100% 1.00 579 1,447 2,463
0
50
100
150
200
250
300
350
400
450
500
07/03/06
16/05/06
25/07/06
24/10/06
16/01/07
27/03/07
05/06/07
28/08/07
06/11/07
29/01/08
08/04/08
17/06/08
09/09/08
18/11/08
17/02/09
28/04/09
01/07/09
22/09/09
01/12/09
02/03/10
11/05/10
20/07/10
19/10/10
11/01/11
22/03/11
31/05/11
30/08/11
15/11/11
07/02/12
17/04/12
31/05/12
07/08/12
06/11/12
05/02/13
16/04/13
25/06/13
17/09/13
03/12/13
04/03/14
13/05/14
22/07/14
14/10/14
13/01/15
24/03/15
29/05/15
04/08/15
27/10/15
26/01/16
05/04/16
31/05/16
30/08/16
08/11/16
31/01/17
11/04/17
13/06/17
12/09/17
21/11/17
13/02/18
02/10/18
11/12/18
05/03/19
14/05/19
PrezzoTEE€
Data sessione
Andamento mercato GME TEE prezzi
Sessione 31/5 Contributo tariffario Tipo III Tipo II Tipo I
Elaborazioni FIRE su dati GME

15. News introduced by D.M. 10 maggio 2018
Some of the main news:
No more additionality integrated in the scheme for
projects linked to improvements of existing facilities. WhC
lifetime reduction (from 10 to 7 years and from 7 to 5).
New eligible projects and introduction of eight SMSPs files
(led for internal and public lighting, electric motors,
compressed air generation, smart bill, naval propulsion
systems, hybrid and electric vehicles fleets).
Improved flexibility for DSOs (two years to recover the 60%
target flexibility instead of one).
250 euro DSOs’ reimbursement cap.
Possibility to issue temporary non-energy saving related
certificates by GSE in case of lack of certificates to cover
the minimum target.
Another important news was the change of the top
management at GSE, with the goal of re-launching the
scheme, by improving the support and communication
activities, and reducing the legal dispute.
15

16. Final comments
D.M. 10 maggio 2018 introduced measures that
deal both with demand and supply.
Presently the scheme faces a strong undersupply
of certificates. However, a large number of
certificates are presently suspended under
administrative court trial. If unlocked, the
situation should improve in the next two years.
To improve the situation, GSE new management
started a new approach from end 2018 to
reinforce dialog, improve support to stakeholders,
and clarify rules, while continuing to ensure a
strict evaluation and verification approach.
In the coming months WhC operators will face
good and stable WhC prices and clearer rules and
this could facilitate an increase in supply.
Simplified procedures, like standard projects, are
anyway required to accelerate the recover and
really involve the transport and building sectors
(i.e. the priorities under 2030 framework).
Market schemes require a good evaluation in
place and continuous management.
16
Source: FIRE.

17. Thank you!
www.facebook.com/FIREenergy.manager
www.linkedin.com/company/fire-federazione-
italiana-per-l'uso-razionale-dell'energia
www.twitter.com/FIRE_ita
For more information about
our activities
visit our web site!
www.dariodisanto.com