End-Use Energy Efficiency: National Plan for Regional Energy Challenge 26 - 27 July, 2010

1. Energy Efficiency at EU level
The Energy Services Directive and the
National Energy Efficiency Action Plans
(NEAAPs) of the EU-27
Experience from the EU project
‚Energy Efficiency Watch„ (2007-2010)
26 July, 2010
Carsten Petersdorff, Managing Director Ecofys Germany
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2. Content
 Introduction: The Energy Efficiency Watch Project
 Background: The European policy framework for energy
efficiency
 The Energy Service Directive (ESD)
 The National Energy Efficiency Action Plans (NEEAPs)
 Conclusions
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3. The Energy Efficiency Watch project
 Objectives:
 Identification of best-practice policies in EU
 Promotion of energy efficiency policy by addressing
European and national parliamentarians
 Screening & evaluation of the National Energy Efficiency
Plans
 embedded in a broader Energy-Efficiency-Watch-Initiative
(EEWI) initiated by EU parliamentarians
 Screening was conducted by Ecofys and the Wuppertal
Institute
 More information under www.energy-efficiency-watch.org
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4. Background: The European policy framework
for energy efficiency
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5. European EE
Action Plan: Save
20% energy by 2020 Directive on end-use
Directive on
energy efficiency and
cogeneration of heat
energy services
and power (CHP)
National Voluntary agreement on
Directive on the energy efficient cars
energy Increase energy
performance of energy efficiency
buildings (EPBD) on the Member Directive on labelling of
State level cars
Energy
Directive on CO2
emissions trading
policies STAR program
Directive on labelling of Ecodesign Directive
appliances
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6. Directive on the Energy Performance of Buildings
(EPBD)
Adopted in 2002, entered into
force 2006-2009
Member states should have:
 Minimum requirements for new
buildings & existing buildings >
1000 m2 when renovated
 Consider CHP, heat pumps etc. for
buildings larger than 1000 m2
 Energy performance certificate
when built, hired out or sold
 Regular inspection of boilers more
than 20 kW
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7. Eco-Design Directive
 Directive on the Eco-design of Energy-Using Products
 framework directive
 Two approaches:
 minimum efficiency standards
 eco-design requirement
 Situation
 adopted early 2005
 implementation for 15 types of equipment is under way
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8. The Energy Service Directive (ESD)
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9. Scope and framework of ESD
 Entered into force in May 2006
 Targets
 9% end-use energy savings beyond business as usual in the
period 2008-2016
 Sector targeted:
 Final energy users in all sectors except ETS sectors
 Energy companies, distributors, retail energy sales companies
 Framework for achieving targets
 Member States have to develop National Energy Efficiency
Action Plans
 Remove market barriers that hamper energy end-use efficiency
 Assign authorities or agencies to monitor targets
 Exemplary role for public sector
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10. Measures suggested for the promotion of end-
use energy efficiency (EE)
 Improved information on energy efficiency
 Qualification, accreditation and certification schemes
 Energy audits
 Financial instruments
 Energy efficient tariffs and other regulation
 Funds for providers of energy efficiency improvements, e.g.
ESCOs
 Metering and informative billing
 Market based instruments, e.g. voluntary agreements or
white certificates
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11. Obligations for energy distributors and retail
energy sales companies
Member States have to ensure that these companies:
 Provide statistical information on their final customers
(aggregated level)
 Refrain from any activities that impede demand or delivery of
energy services and other EE measures
 Provide competitively priced energy services to their
customers and/or energy audit and/or contribute to funds and
funding mechanisms.
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12. Exemplary role public sector: list of eligible
public procurement measures
 Requirements concerning the use of financial instruments
for energy savings (e.g. energy performance contracting)
 Requirements to purchase energy efficient equipment
 Requirements to replace or retrofit existing equipment
 Requirements to use energy audits and implement the
recommended measures
 Requirements to purchase or rent energy efficient buildings
(or replace/retrofit them)
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13. The National Energy Efficiency Action Plans
(NEEAPs)
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14. NEEAPs: Requirements and timeline
 Member States are obliged (but not necessarily
motivated) to submit action plans
 1st NEEAP was due in 2007
 No specific format
 Recognition of ‚early action„ (measures initiated in a
previous year not earlier than 1995)
 Submitted NEEAPs vary greatly in detail and ambition
 1st NEEAPs are rather a „collection of ideas‟ for the
Commission
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15. NEEAPs: Requirements and timeline
 2nd NEEAP due 2011
 European Commission will provide a harmonised template
 Member States must evaluate the preceding NEEAP and their
target achievement
 Include additional measures addressing shortfalls
 3rd NEEAP due 2014
 Member States must evaluate the preceding NEEAP and their
target achievement
 European Commission will probably define further
requirements to ensure target achievement 2016
 Political process aiming to build-up consistent energy
efficiency policy framework
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16. Different starting points:
Energy intensity of selected MS in 2005
kgoe per EUR 1 000 of GDP Source:
EUROSTAT
McKinsey
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17. Important role of policy packages
- Packages for end-users of energy -
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18. Information and advice
 Private households sector
 Ireland – ‚Power of one„-campaign: integrated campaign on
information, education, change of behaviour
 Public sector
 Malta - ‚Green Leaders„ in each Ministry: make public
building stock more efficient
 Industry / Tertiary sector
 Finland – mandatory audits for private service buildings
(Czech republic following)
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19. Regulation
 Examples of dynamization of mandatory
standards
 Revision of national building regulation in 2010 to
improve energy performance of existing buildings by
60% (Ireland)
 Zero carbon standard for new homes by 2016 (UK)
 Information & Regulation: energy improvements
specified in the energy label must be implemented when
existing buildings are renovated (Denmark)
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20. Funding & Financing
 Tax incentives
 Energy investment deduction (EID) in the Netherlands allows
deductions on taxable profits after investments in EE
 Enhanced capital allowances (ECA) in UK provide tertiary
sector with a first year 100% tax allowance on EE equipment
 Examples of subsidy schemes
 Low-interest loans for EE retrofitting of existing buildings,
combined with energy advice program to identify EE measures
(Germany)
 Combination with quality assurance: Funding when certified
advisors approved quality of the measure, (City of Hamburg)
 Energy Savings Trusts (DK, UK)
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21. Important role of policy packages
- Packages for energy suppliers -
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22. Market Based Services & Instruments
 Energy services and ESCOs generally still play a
subordinated role in the NEEAPs, but some
examples
 White certificate schemes (France, Italy,
Poland)
 Electricity saving obligation for distribution
companies (Flanders)
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23. Stimulating Voluntary Agreements
 Examples of long term agreements with companies
combined with financial incentives
 Companies which have signed the “energy conservation
agreement” can get higher rates of subsidies for energy
audits (Finland)
 An Energy Agreement Programme promotes energy
management schemes in companies (Ireland)
 Combined strategies: establishing a climate change levy
to reduce energy use in the industry and public sector –
for those who commit to emission reductions or
improved energy efficiency targets, this levy is reduced
(UK, DK, SE)
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24. General remarks on sector coverage
 Buildings/Residential Sector
 Regulatory approach (according to EU Directives)
 Focus on establishing a funding structure
 Industry and Service Sector
 Focus on establishing a funding structure
 Networks and voluntary agreement
 Transport Sector
 „weakest part in the chain“
 Transport sector not or not adequately addressed
 Focus on improving the transport infrastructure
 „soft measures“ (Information etc.)
 Agricultural sector
 totally neglected in most NEEAPs (incl. those with high sector
relevance – only Spain provides measures)
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25. Conclusions 1st set of NEEAPs
 Very heterogeneous NEEAPs => difficult to compare,
especially regarding calculation
 Minimum requirements fulfilled
 Public sector coverage rather weak
 General performance: measures, calculations etc.
often intransparent / not very elaborate
 Impressive scope of new measures
=> source of inspiration / for mutual learning
 Step towards coherent policy packages
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26. Further Implementation of the ESD:
Recommendations for 2011 NEEAPs
 Enforce ESD NEEAP process to produce good results
 Standardised reporting format
 Harmonised methodology for calculation of targets
and effects of measures
 Clear definition of additionally (what is meant by
‚early action„ / ‚early savings„?)
 pay specific attention to issues as
 role of ESCOs
 coverage of transport and agricultural sectors
 Elaboration of measures regarding supply side
 Set binding EE target (link ESD to 20/20/20 target)
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27. Thank you for your attention!
Please see for details /
good practice examples:
www.energy-efficiency-watch.org
(brochure for download)
Contact:
c.petersdorff@ecofys.com
d.becker@ecofys.com
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