Presented by Paolo Bertoldi and Silvia Rezessy, European Commission, Directorate General JRC, Institute for Energy, at the IEA DSM Programme workshop in Milan, Italy on 22 October 2008.
Training Module on Electricity Market Regulation - SESSION 8 - PricingLeonardo ENERGY
Once the revenue requirements are established they should be converted into tariff systems. This session explains the major economic principles of electricity pricing and the general pricing models using average and marginal costs. Moreover the session explores the major pricing models for the electricity activities including: generation, transmission, distribution and retail activities.
Pricing principles : economic efficiency - cost recovery
General pricing models : average cost pricing - marginal cost pricing
Cost allocation issue
Pricing for different activities in the electricity industry : generation pricing - transmission pricing - distribution pricing - retail supply pricing
Can Europe deliver on energy efficiency? Investigating the effectiveness of A...Leonardo ENERGY
Article 7 is a key provision of the European Energy Efficiency Directive which established a set of binding measures to help the EU reach its 20% energy efficiency target by 2020. Each member state has to calculate its own savings target, and demonstrate how it will deliver the target between 2014 and 2020. This webinar introduces the main features of Article 7, shows how member states have implemented it, and discusses the challenge of evaluating its impact given the heterogeneity of policy responses.
The webinar will conclude with a number of options how a revised Article 7 can be simplified and streamlined, how transparency of implementation can be improved and how member states could be supported to deliver energy efficiency more effectively.
Quis custodiet ipsos custodes? The EU's energy efficiency policies scrutinise...Leonardo ENERGY
The European Court of Auditors (ECA) promotes accountability and transparency, and acts as the independent guardian of the financial interests of the EU citizens. ECA recently published two reports about EU energy efficiency policies (about appliances and buildings).
This webinar will present ECA’s role in the EU policy process, how it relates to evaluation, and the main conclusions from the two recent reports.
Addressing the Energy Efficiency First Principle in a National Energy and Cli...Leonardo ENERGY
When designing energy and climate policies, EU Member States have to apply the Energy Efficiency First Principle: priority should be given to measures reducing energy consumption before other decarbonization interventions are adopted. This webinar summarizes elements of the energy and climate policy of Cyprus illustrating how national authorities have addressed this principle so far, and outline challenges towards its much more rigorous implementation that is required in the coming years.
Training Module on Electricity Market Regulation - SESSION 2 - Market DesignLeonardo ENERGY
This section explains the main properties of different types of electricity markets exhibiting different level of competition and different forms of organisation.
• General market models : vertically integrated companies / single buyer / wholesale competition / retail competition
• Power pools : Price based / Cost based
• Markets with bilateral trade
• Balancing markets
• Power exchanges
How auction design affects the financing of renewable energy projects Leonardo ENERGY
Recording available at https://youtu.be/lPT1o735kOk
Renewable energy auctions might affect the financing of renewable energy (RE) projects. This webinar presents the results of the AURES II project exploring this topic. It discusses how auction designs ranging from bid bonds to penalties and remuneration schemes impact financing and discusses creating a low-risk auction support framework.
Training Module on Electricity Market Regulation - SESSION 8 - PricingLeonardo ENERGY
Once the revenue requirements are established they should be converted into tariff systems. This session explains the major economic principles of electricity pricing and the general pricing models using average and marginal costs. Moreover the session explores the major pricing models for the electricity activities including: generation, transmission, distribution and retail activities.
Pricing principles : economic efficiency - cost recovery
General pricing models : average cost pricing - marginal cost pricing
Cost allocation issue
Pricing for different activities in the electricity industry : generation pricing - transmission pricing - distribution pricing - retail supply pricing
Can Europe deliver on energy efficiency? Investigating the effectiveness of A...Leonardo ENERGY
Article 7 is a key provision of the European Energy Efficiency Directive which established a set of binding measures to help the EU reach its 20% energy efficiency target by 2020. Each member state has to calculate its own savings target, and demonstrate how it will deliver the target between 2014 and 2020. This webinar introduces the main features of Article 7, shows how member states have implemented it, and discusses the challenge of evaluating its impact given the heterogeneity of policy responses.
The webinar will conclude with a number of options how a revised Article 7 can be simplified and streamlined, how transparency of implementation can be improved and how member states could be supported to deliver energy efficiency more effectively.
Quis custodiet ipsos custodes? The EU's energy efficiency policies scrutinise...Leonardo ENERGY
The European Court of Auditors (ECA) promotes accountability and transparency, and acts as the independent guardian of the financial interests of the EU citizens. ECA recently published two reports about EU energy efficiency policies (about appliances and buildings).
This webinar will present ECA’s role in the EU policy process, how it relates to evaluation, and the main conclusions from the two recent reports.
Addressing the Energy Efficiency First Principle in a National Energy and Cli...Leonardo ENERGY
When designing energy and climate policies, EU Member States have to apply the Energy Efficiency First Principle: priority should be given to measures reducing energy consumption before other decarbonization interventions are adopted. This webinar summarizes elements of the energy and climate policy of Cyprus illustrating how national authorities have addressed this principle so far, and outline challenges towards its much more rigorous implementation that is required in the coming years.
Training Module on Electricity Market Regulation - SESSION 2 - Market DesignLeonardo ENERGY
This section explains the main properties of different types of electricity markets exhibiting different level of competition and different forms of organisation.
• General market models : vertically integrated companies / single buyer / wholesale competition / retail competition
• Power pools : Price based / Cost based
• Markets with bilateral trade
• Balancing markets
• Power exchanges
How auction design affects the financing of renewable energy projects Leonardo ENERGY
Recording available at https://youtu.be/lPT1o735kOk
Renewable energy auctions might affect the financing of renewable energy (RE) projects. This webinar presents the results of the AURES II project exploring this topic. It discusses how auction designs ranging from bid bonds to penalties and remuneration schemes impact financing and discusses creating a low-risk auction support framework.
New business models for distribution grid stakeholders under high penetration...Leonardo ENERGY
Webinar recording at https://youtu.be/F53mrwelvVI
The webinar mainly targets DSOs, and potential flexibility providers (VPPs, aggregators, flexible consumers), but it is also relevant to all other stakeholders with an interest in the topics of smart distribution grids, local flexibility services and aggregation. These includes, but is not limited to: regulators, academics and researchers on these topics, retailers, or software and data service providers.
2016 IndustRE Workshop - 1 business models and policy recommendationsLeonardo ENERGY
www.industre.eu
September 2016 Stakeholders Workshop.
Presentation of business models for industrial demand side management and policy recommendations for the electricity market design.
Training Module on Electricity Market Regulation - SESSION 5 - Cost of CapitalLeonardo ENERGY
The weighted average cost of capital (WACC) methodology is a widely accepted method for calculating the allowed rate of return. Regulators use different models to set the allowed cost of capital. This section explains the models and their practical application.
Definition of cost of capital : WACC / Cost of equity / Cost of debt / Capital structure (gearing) / Treatment of taxes
Quantification of cost of capital : CAPM (Capital Assets Pricing Model) / Price Arbitrage Theory / Dividend Growth Model / Comparable Earnings Model / "Precedent Case" Approach
Financial Analysis
Training Module on Electricity Market Regulation - SESSION 3 - Price RegulationLeonardo ENERGY
This session explains different forms of price control, including the classical rate of return organisation and more advanced forms of incentive regulation. It will also explain the design criteria for different price control models.
• Major price control models: Rate of return / Cap regulation / Yardstick competition / Sliding scale regulation
• Principle design criteria: Efficiency properties / Demand impact / Regulatory burden / Practicability / Coherence with industry and market design
INTERPRETER – Local flexibility solutions leveraged by RD&I projects as syste...Leonardo ENERGY
Webinar recording at https://youtu.be/ueVkeVCbCCw
This presentation provides an introduction to flexibility solutions, focused on DSO and demand-side innovative service enabling solutions. This introduction will be followed by the presentation of ATTEST and INTERRFACE as examples of RD&I projects where these flexibility solutions are being developed at the European level.
First International Conference
Perspectives for Ukraine on Implementation of
Public Private Partnerships
PPP – The EIB Experience
by Tilman Seibert
Kyiv, 21 March 2006
Regulatory incentives for reduction of network lossesLeonardo ENERGY
Environmental concerns remain a driving force for European energy policy, as exemplified by last years’ directive on energy efficiency. The directive sets the legislative framework to achieve energy efficiency targets. Since electricity network losses comprise a significant component of electricity demand, regulatory incentives to facilitate loss reduction in electricity networks should be in place. This webinar evaluates the incentives for investments in low-loss equipment in differing regulatory settings and outlines pathways to assure the proper embedding of these incentives.
Course on Regulation and Sustainable Energy in Developing Countries - Session 1Leonardo ENERGY
This session is devoted to the design of schemes for the large-scale dissemination of renewable energy technologies in developing countries. Market-based mechanisms overcome partly the limits of donor aid-projects. They build on public-private partnerships where a network of local entrepreneurs contributes to the maintenance of systems.
The example of solar home systems will be explained. Even if there are in many instances in parity with fossil fuels, small photovoltaic systems remain unaffordable for the majority of rural inhabitants without proper financial support mechanisms. But in the most active countries, the number of systems disseminated is now in the range of several ten thousands to several hundred thousands systems, thanks to the implementation of rural energy services companies.
Recent technological innovation could contribute to the acceleration of the diffusion of solar photovoltaic. The innovation introduced by the massive diffusion of mobile phones in developing countries tends simultaneously to create new markets for small photovoltaic systems and could improve the conditions for the diffusion of these systems by facilitating the daily management of these systems by rural energy services companies. Furthermore, Light Emitting Diodes (LED) technology opens new perspectives of self-sustained market diffusion.
The implementation of small rural energy services companies can also help to disseminate a wider range of products: LPG, cookstoves, biodigesters... New practices from rural energy providers tend to target more precisely the demand of end-users by combining the offer of photovoltaic systems with a variety of technologies to satisfy other energy needs than basic lighting in rural areas.
Concrete case studies from the dissemination of different renewable energy technologies in developing countries will be presented, notably in Zambia, South Africa, Bangladesh, China...
It will conclude with the institutional and regulatory framework that needs to be implemented to help rural energy services companies to thrive even in the most remote areas of developing countries.
http://www.leonardo-energy.org/webinar/energy-efficiency-programs-and-policies
This session is part of the Clean Energy Regulators Initiative Webinar Programme.
Theme 8 - Promotion of Energy Efficiency
Module 3 - Energy Efficiency Programs and Policies
This webinar covers the three main delivery mechanisms that can be incorporated into a national policy to deliver energy savings and reduce greenhouse gas emissions.
First, it is presented the importance of having high-level policies and strategies clearly stated by the government, sometimes expressed more formally through enabling legislation on energy efficiency. Then, it is discussed the regulatory path to establish minimum requirements that each targeted stakeholder in the market has to comply with, which would include building codes, minimum energy performance standards (MEPS), energy manager regulations, mandatory disclosure of energy usage and an annual action plan. The discussion follows on how the government can launch support programs for energy efficiency or establish a regulatory framework that would obligate energy utilities to put programs in place, and to deliver energy savings to their customers. Finally, it is presented the market mechanism based on Energy Service Companies that can act as an integrator and catalyst of private investment in the market, and ultimately demonstrate that a market has been completely transformed towards a greener energy sector.
CoordiNet- Large scale demonstrations for TSO-DSO CooperatioLeonardo ENERGY
Webinar recording at https://youtu.be/xgfUd6acBfk
The CoordiNet project aims at demonstrating how Distribution System Operators (DSO) and Transmission System Operators (TSO) shall act in a coordinated manner to procure and activate grid services in the most reliable and efficient way through the implementation of three large-scale demonstrations.
New business models for distribution grid stakeholders under high penetration...Leonardo ENERGY
Webinar recording at https://youtu.be/F53mrwelvVI
The webinar mainly targets DSOs, and potential flexibility providers (VPPs, aggregators, flexible consumers), but it is also relevant to all other stakeholders with an interest in the topics of smart distribution grids, local flexibility services and aggregation. These includes, but is not limited to: regulators, academics and researchers on these topics, retailers, or software and data service providers.
2016 IndustRE Workshop - 1 business models and policy recommendationsLeonardo ENERGY
www.industre.eu
September 2016 Stakeholders Workshop.
Presentation of business models for industrial demand side management and policy recommendations for the electricity market design.
Training Module on Electricity Market Regulation - SESSION 5 - Cost of CapitalLeonardo ENERGY
The weighted average cost of capital (WACC) methodology is a widely accepted method for calculating the allowed rate of return. Regulators use different models to set the allowed cost of capital. This section explains the models and their practical application.
Definition of cost of capital : WACC / Cost of equity / Cost of debt / Capital structure (gearing) / Treatment of taxes
Quantification of cost of capital : CAPM (Capital Assets Pricing Model) / Price Arbitrage Theory / Dividend Growth Model / Comparable Earnings Model / "Precedent Case" Approach
Financial Analysis
Training Module on Electricity Market Regulation - SESSION 3 - Price RegulationLeonardo ENERGY
This session explains different forms of price control, including the classical rate of return organisation and more advanced forms of incentive regulation. It will also explain the design criteria for different price control models.
• Major price control models: Rate of return / Cap regulation / Yardstick competition / Sliding scale regulation
• Principle design criteria: Efficiency properties / Demand impact / Regulatory burden / Practicability / Coherence with industry and market design
INTERPRETER – Local flexibility solutions leveraged by RD&I projects as syste...Leonardo ENERGY
Webinar recording at https://youtu.be/ueVkeVCbCCw
This presentation provides an introduction to flexibility solutions, focused on DSO and demand-side innovative service enabling solutions. This introduction will be followed by the presentation of ATTEST and INTERRFACE as examples of RD&I projects where these flexibility solutions are being developed at the European level.
First International Conference
Perspectives for Ukraine on Implementation of
Public Private Partnerships
PPP – The EIB Experience
by Tilman Seibert
Kyiv, 21 March 2006
Regulatory incentives for reduction of network lossesLeonardo ENERGY
Environmental concerns remain a driving force for European energy policy, as exemplified by last years’ directive on energy efficiency. The directive sets the legislative framework to achieve energy efficiency targets. Since electricity network losses comprise a significant component of electricity demand, regulatory incentives to facilitate loss reduction in electricity networks should be in place. This webinar evaluates the incentives for investments in low-loss equipment in differing regulatory settings and outlines pathways to assure the proper embedding of these incentives.
Course on Regulation and Sustainable Energy in Developing Countries - Session 1Leonardo ENERGY
This session is devoted to the design of schemes for the large-scale dissemination of renewable energy technologies in developing countries. Market-based mechanisms overcome partly the limits of donor aid-projects. They build on public-private partnerships where a network of local entrepreneurs contributes to the maintenance of systems.
The example of solar home systems will be explained. Even if there are in many instances in parity with fossil fuels, small photovoltaic systems remain unaffordable for the majority of rural inhabitants without proper financial support mechanisms. But in the most active countries, the number of systems disseminated is now in the range of several ten thousands to several hundred thousands systems, thanks to the implementation of rural energy services companies.
Recent technological innovation could contribute to the acceleration of the diffusion of solar photovoltaic. The innovation introduced by the massive diffusion of mobile phones in developing countries tends simultaneously to create new markets for small photovoltaic systems and could improve the conditions for the diffusion of these systems by facilitating the daily management of these systems by rural energy services companies. Furthermore, Light Emitting Diodes (LED) technology opens new perspectives of self-sustained market diffusion.
The implementation of small rural energy services companies can also help to disseminate a wider range of products: LPG, cookstoves, biodigesters... New practices from rural energy providers tend to target more precisely the demand of end-users by combining the offer of photovoltaic systems with a variety of technologies to satisfy other energy needs than basic lighting in rural areas.
Concrete case studies from the dissemination of different renewable energy technologies in developing countries will be presented, notably in Zambia, South Africa, Bangladesh, China...
It will conclude with the institutional and regulatory framework that needs to be implemented to help rural energy services companies to thrive even in the most remote areas of developing countries.
http://www.leonardo-energy.org/webinar/energy-efficiency-programs-and-policies
This session is part of the Clean Energy Regulators Initiative Webinar Programme.
Theme 8 - Promotion of Energy Efficiency
Module 3 - Energy Efficiency Programs and Policies
This webinar covers the three main delivery mechanisms that can be incorporated into a national policy to deliver energy savings and reduce greenhouse gas emissions.
First, it is presented the importance of having high-level policies and strategies clearly stated by the government, sometimes expressed more formally through enabling legislation on energy efficiency. Then, it is discussed the regulatory path to establish minimum requirements that each targeted stakeholder in the market has to comply with, which would include building codes, minimum energy performance standards (MEPS), energy manager regulations, mandatory disclosure of energy usage and an annual action plan. The discussion follows on how the government can launch support programs for energy efficiency or establish a regulatory framework that would obligate energy utilities to put programs in place, and to deliver energy savings to their customers. Finally, it is presented the market mechanism based on Energy Service Companies that can act as an integrator and catalyst of private investment in the market, and ultimately demonstrate that a market has been completely transformed towards a greener energy sector.
CoordiNet- Large scale demonstrations for TSO-DSO CooperatioLeonardo ENERGY
Webinar recording at https://youtu.be/xgfUd6acBfk
The CoordiNet project aims at demonstrating how Distribution System Operators (DSO) and Transmission System Operators (TSO) shall act in a coordinated manner to procure and activate grid services in the most reliable and efficient way through the implementation of three large-scale demonstrations.
Presented by Vlasis Oikonomou, SOM Research Institute, Department of Economics, University of Groningen, Netherlands, at the IEA DSM Programme workshop in Maastricht, the Netherlands on 11 October 2006.
12-13 May 2016 - India's Policy Dialogue
International Workshop on Extended Producer Responsibility in India: Opportunities, Challenges and Lessons from International Experience, New Delhi, India.
Presented by John Parsons Project Coordinator European Smart Metering Alliance at the IEA DSM Programme workshop in Brugge, Belgium on 10 October 2007.
Best Practices in Designing and Implementing Energy Efficiency Obligation Sch...Leonardo ENERGY
An energy efficiency obligation (EEO) is a regulatory mechanism that requires obligated parties to meet quantitative energy saving targets by delivering or procuring eligible energy savings produced by implementing approved end-use energy efficiency measures.
Governments have endeavoured to improve end-use energy efficiency, and in some cases to also achieve other objectives, by designing and implementing schemes that place EEOs on particular parties.
This webinar will summarise the results from detailed case studies and a unique comparative analysis of 19 different EEO schemes implemented in a range of jurisdictions around the world.
The webinar will also identify a set of best practices that can be employed in designing and implementing an EEO scheme.
Best Practices in Designing and Implementing Energy Efficiency Obligation Sch...Leonardo ENERGY
An energy efficiency obligation (EEO) is a regulatory mechanism that requires obligated parties to meet quantitative energy saving targets by delivering or procuring eligible energy savings produced by implementing approved end-use energy efficiency measures.
Governments have endeavoured to improve end-use energy efficiency, and in some cases to also achieve other objectives, by designing and implementing schemes that place EEOs on particular parties.
This webinar will summarise the results from detailed case studies and a unique comparative analysis of 19 different EEO schemes implemented in a range of jurisdictions around the world.
The webinar will also identify a set of best practices that can be employed in designing and implementing an EEO scheme.
Financial Instruments for Energy Markets
Presentation by Laurent Cheval Head of Nordic and Fuel Origination Business Division Asset Optimisation and Trading
Energy Day, Stockholm School of Economics, SITE December 2014
White certificates: the shift towards industry presented at ECEEE summer stud...Dario Di Santo
The Italian white certificates scheme (WhC) has been in place for nine years and a lot of experience has been gathered. More than this, it has become an effective mechanism, mostly based on measured energy savings, to promote and implement energy efficiency in industry.
The scheme is based on an energy efficiency obligation, imposed on electricity and gas distributors, and on a tradable market for certificates, thus acting as an incentive for medium and large end-users and energy service companies (the voluntary parties).
The WhC targets started from 0.2 Mtoe/year in 2005 and shall reach 7.6 Mtoe/year in 2016, covering more than 60% of the national target set by the 2006/32/EC directive. After the first phase dominated by deemed saving projects - in particular CFL lamps and other civil sector applications - "progetti a consuntivo" (a.k.a. monitoring plans) in the industrial sector have started to rise under the effect of the "tau" coefficient, the multiplier introduced in 2011 that adds to the yearly additional savings the discounted future savings for technologies with a lifespan of more than 5 years (WhCs are usually released for a lifetime of 5 years).
The result has been dramatic: in 2013 around 95% of the certificates due to new projects has been related to energy efficiency in the industrial sector. An interesting point is that all this projects are monitored and savings are effectively measured through on-site metering.
The proposed paper shows in detail this transformation and how a WhC scheme has been able to become effective for industrial energy efficiency projects. The paper is based on an extensive research carried on from FIRE on monitoring plans, showing what kind of interventions have been implemented, how they performed compared to the expected savings, and what kind of advice can be given to other countries that are considering the introduction of an energy efficiency obligation (EEO) scheme according to the 2012/27/EU directive.
A policy perspective on Building Automation and Control Systems (BACS)Leonardo ENERGY
Improved management of technical building systems (TBS) can offer a cost-effective potential to reduce building energy consumption, improve the quality of life of occupants and facilitate the integration of renewable energy systems by providing flexibility to the connected energy grids.
Multiple policy initiatives related to BACS currently exist or are under development. This presentation will give an overview and some examples of European policy tools and/or local implementations. The most relevant policy tools that can help contribute accessing these savings potentials are the Energy Performance in Buildings Directive (EPBD), the Energy Efficiency Directive (EED), Ecodesign Directive (ED) and Energy Labelling Regulation (ELR).
Some examples of existing policy will be given and reference will be made to the recently completed Smart Readiness Indicator study and the ongoing Ecodesign BACS preparatory study.
Presented by Prof. Dr. Carlos Àlvarez, Instituto de Ingenería Energética, Universidad Politécnica de Valencia, Spain, at the IEA DSM Programme workshop in Madrid, Spain on 19 October 2005.
Presented by Arturo Rodríguez-Garcia, Director General, General Manager, Visual Tools, Spain, at the IEA DSM Programme workshop in Madrid, Spain on 19 October 2005.
Presented by Wolfgang Irrek, Research group "Energy Transport and Climate Policy" Wuppertal Institute for Climate, Environment and Energy, Germany at the IEA DSM Programme workshop in Copenhagen, Denmark on 19 April 2006.
Presented by Ulrich Bang Termansen, the Association of Danish Energy Companies, Denmark at the IEA DSM workshop in Copenhagen, Denmark on 19 April 2006.
Presented by Nicolai Zarganis, Head of Division, Danish Energy Authority, denmark, at the IEA DSM Programme workshop in Copenhagen, Denmark on 19 April 2006.
Presented by Marcella Pavan, head, Energy Efficiency Policy Division, Italian Regulatory Authority for Electricity and Gas, Italy, at the IEA DSM Programme workshop in Copenhagen, Denmark on 19 April 2006.
Presented by Larry Mansueti, Office of Electricty Delivery and Energy Reliability, U.S. Department of Energy, USA, at the IEA DSM Programme workshop in Seoul, Korea on 18 April 2007.
Have you ever wondered how search works while visiting an e-commerce site, internal website, or searching through other types of online resources? Look no further than this informative session on the ways that taxonomies help end-users navigate the internet! Hear from taxonomists and other information professionals who have first-hand experience creating and working with taxonomies that aid in navigation, search, and discovery across a range of disciplines.
Sharpen existing tools or get a new toolbox? Contemporary cluster initiatives...Orkestra
UIIN Conference, Madrid, 27-29 May 2024
James Wilson, Orkestra and Deusto Business School
Emily Wise, Lund University
Madeline Smith, The Glasgow School of Art
This presentation, created by Syed Faiz ul Hassan, explores the profound influence of media on public perception and behavior. It delves into the evolution of media from oral traditions to modern digital and social media platforms. Key topics include the role of media in information propagation, socialization, crisis awareness, globalization, and education. The presentation also examines media influence through agenda setting, propaganda, and manipulative techniques used by advertisers and marketers. Furthermore, it highlights the impact of surveillance enabled by media technologies on personal behavior and preferences. Through this comprehensive overview, the presentation aims to shed light on how media shapes collective consciousness and public opinion.
0x01 - Newton's Third Law: Static vs. Dynamic AbusersOWASP Beja
f you offer a service on the web, odds are that someone will abuse it. Be it an API, a SaaS, a PaaS, or even a static website, someone somewhere will try to figure out a way to use it to their own needs. In this talk we'll compare measures that are effective against static attackers and how to battle a dynamic attacker who adapts to your counter-measures.
About the Speaker
===============
Diogo Sousa, Engineering Manager @ Canonical
An opinionated individual with an interest in cryptography and its intersection with secure software development.
This presentation by Morris Kleiner (University of Minnesota), was made during the discussion “Competition and Regulation in Professions and Occupations” held at the Working Party No. 2 on Competition and Regulation on 10 June 2024. More papers and presentations on the topic can be found out at oe.cd/crps.
This presentation was uploaded with the author’s consent.
Acorn Recovery: Restore IT infra within minutesIP ServerOne
Introducing Acorn Recovery as a Service, a simple, fast, and secure managed disaster recovery (DRaaS) by IP ServerOne. A DR solution that helps restore your IT infra within minutes.
Obesity causes and management and associated medical conditions
European Experience on Tradable Certificates for Energy Savings (White Certificates)
1. 1
European Experience on
Tradable Certificates for Energy
Savings
(White Certificates)
Paolo Bertoldi and Silvia Rezessy
European Commission, Directorate General JRC
Institute for Energy
2. 2
Introduction
• Market-based instruments (MBIs) are public policies which
make use of market mechanisms with transferable property
rights to distribute the burden of a public policy.
• In the energy sector MBIs have been used to promote RES-
E and to cut harmful emissions (e.g. CO2, SO2, Nox quotas
coupled with permit/allowance trading).
• Theoretically MBIs minimize cost for society for reaching a
certain target (static efficiency) and create incentives to
innovate and improve performance (dynamic efficiency).
3. 3
Policy drivers in Europe
• Bringing sustainability to the energy sector:
– EU Energy Efficiency Target: by 2020 the EU should save at least 20
% of its energy consumption in a cost-effective manner;
– The Directive on Energy End-Use Efficiency and Energy Services: a
target of 9% over 9 years; the Directive mentions White Certificates
and leaves the option of the Commission to later on recommend
introduction.
– In 2005 the EU ETS has started.
• Energy market restructuring and liberalisation:
– Directive 2003/54/EC: all customers are able to choose their gas and
electricity supplier by 1 July 2007 at the latest;
– Effects of liberalization on energy efficiency.
4. 4
Liberalization and EE
• A possible market-based policy portfolio oriented
towards end-use energy efficiency could comprise
energy-savings quota for some category of operators
(distributors, suppliers, consumers, etc.).
• The quota is achieved by saving associated to energy
efficiency projects.
• The savings would be verified by the regulator and
certified by means of the so-called “white”
certificates (tradable certificates for energy savings);
• The savings or the certificates or the quota could be
traded;
5. 5
Key features
Five key elements of white certificates schemes:
– the creation and framing of the demand (government
set the overall target and its apportioning).
– the tradable instrument (certificate) and the rules for
issuing and trading,
– Institutional infrastructure and processes (such as
measurement and verification) to support the scheme.
– the cost recovery mechanism, in some cases.
– A system of sanctions in the case of non compliance
6. 6
European Schemes
• Great Britain has a variation of this policy mix scheme
since 2002, without trading;
• Tradable certificates have been introduced in Italy (in
2005), and since July 2006, in France.
• Poland has announced in its NEEAP the implementation
of a white certificate system in 2009. In Flanders (region of
Belgium) and in Ireland there are savings obligations
imposed on electricity distributors without certificate
trading option; saving obligations on electricity, gas and
heat distributors in Denmark.
7. 7
Nature of tradable certificates
• A white certificate is both an accounting tool, which
proves that a certain amount of energy has been saved in
a specific place and time, and a tradable commodity,
which belongs initially to the subject that has induced the
savings (implemented a project) or owns the rights to
these savings, and then can be traded according to the
market rules, always keeping one owner at the time.
• As for renewable electricity certificates (a.k.a. green
certificates), the value of the white certificate is different
from the economic value of the saved energy (Euro/kWh).
• In principle white certificates can also be established for a
voluntary market (this is happening in the US).
8. 8
Key Issues with ESC (1)
• An ESC is both a tradable commodity that carries a property right (one owner at
the time till redemption), and also an accounting tool, which can be used for any
type of EE programme or project verification (e.g. tax credits, or EE financing
mechanism, ESCO investor client relation). Therefore there could be some interest
for ESC also to monitor other policies in addition to the one based on obligations for
distributors or suppliers.
• Administrative and transaction costs have been indicated as possible drawback
for ESC schemes compared to other policy instruments. Administration costs could
be very high both on the public institutions (e.g. set up the scheme, monitoring and
verification, issuing of certificates, tracking of certificates, running the certificate
market, etc.). Transaction costs for project implementers can have a high fixed or
constant component regardless the size of the project and, depending on the size
and nature of projects, can exceed 40% of total investment cost (Mundaca and Neji
2007).
9. 9
Key Issues with ESC (2)
• Are utilities the best organisations to deliver energy efficiency ? (according to the
ESD this is now an obligations). It can be argued that other actors (e.g. ESCOs,
equipment suppliers, retailers) could be better placed to deliver energy efficiency to
the final users, therefore an ESC scheme open to other actors could be more cost-
effective and effective.
• Are ESCs driving towards the lower cost energy saving options? How to incentivise
specific technologies and long payback projects.
• Trading or no trading: the size of the market, the number of actors involved, and
the role that utilities would like to play (in house energy efficiency or outsourcing the
expertise) determine the benefits of trading (reduction of overall costs). For example
in France, EDF and Gas de France, the two utilities with the largest targets, tend to
implement project by themselves to position the companies as energy service
providers, while in Italy the majority of ESCs are delivered to ESCOs (and one of the
aim was also to develop an ESCO market)
10. 10
Key Issues with ESC (3)
• On which actors should the obligations be placed? From a practical points of view final users
tend to be excluded. It can be argued whether it would be more appropriate to set the
obligations on distribution companies (more stable, and less interested in energy sales) as in
Italy or on retail companies (more dependent on sales, but closer to the clients, could also be
less stable than distribution companies) as in France and UK.
• Linked to the above point is the issue of cost recovery: normally distribution companies are
regulated companies, and their tariff are regulated, in this case a small wire charge could be
used to pay the costs these companies incur to implement ESC up to their saving target
(either a fix cost recovery as in Italy or based on the real cost of the ESC). Suppliers are
usually outside the regulated tariffs and so free to charge their customers for the energy
efficiency projects.
• Another very important issue not much debated is the initial ownership of the ESC, which
should be with the initiator of the project. For example association of end-users, representing
end-user that have implemented EE projects could receive the ESC, or
retailers/manufacturers offering rebates for EE products (what should be the size of rebate? I
suggest that the end-user should be involved.
11. 11
International integration of ESC (1)
• We have three national schemes, covering national markets with very
different rules, aims, measurement methods.
• An international scheme would raise the issue of equity - citizens in
country paying for efficiency projects taking place in another country
and benefitting other citizen. If the overall aim of ESC is to reduce
CO2 this issue could be overcome as CO2 is a global problem, and
EE project in certain countries may cost less. The equity issue is not
present in the EU ETS where CDM and JI are possible.
• One possibility would be to allow a small share of “foreign ESCs” to
enter a national scheme, in few selected project types
• A possible solution could be to create a voluntary international market
for ESCs as it exist for RECs; these ESCs could be used for carbon
offset or part of the voluntary carbon market (still EE is not trusted as
a major CO2 emission reduction, and there is the risk of double pay
for an EE project).
12. 12
Issues for international harmonization (1)
Baselines:
• Present regulation;
• Sales average and performance of the most commonly used
appliance on the market “average-on-the-market” (appliances and
equipment);
• Average consumption of installed stock;
• Building stock or equipment stock (e.g. in insulation measures in
France);
13. 13
Issues for international harmonization (2)
3 M&V approaches:
• deemed savings approach with default factors for free
riding, delivery mechanism and persistence: no on-field
measurements required;
• engineering approach, model with some on-field
measurement,
• a third approach based on monitoring plans: comparison
of measured or calculated consumptions before and after
the project, taking into account changed framework
conditions (e.g. climatic conditions, occupancy levels,
production levels);
14. 14
Issues for international harmonization (3)
Projects:
• Sectors: residential, commercial, industry
(including ETS), transportation.
• Energy sources: electricity, gas, heating oil,
transport fuels, district heating and cooling.
• Technologies: appliances, boilers, insulation,
lighting motors, vehicles, CHP, etc.
15. 15
Issues for international harmonization (4)
Size of certificate:
• The ESC can be based on final or primary energy.
• The ESC can include the annual savings, the life time
saving (discounted or not?), or the saving under the life of
the ESC scheme (e.g. five years)
• Size and denomination of the ESC (MWh, Toe, Carbon,
etc.)
16. 16
Conclusions
• The white certificate systems currently in operation in Europe differ
markedly in their basic design features. The UK and Italian scheme have
shown good results.
• There is the need to harmonise many key characteristic such as the
M&V, lifetime, eligible projects, and technologies, across the EU before
white certificates can be introduced on a wider basis.
• A first step could be set up an international voluntary certificates market,
the main issue here is to create credibility for EE savings, and demand
(carbon market). For the mandatory market (compliance) there are major
obstacles, such as the different aims of the schemes (CO2, security of
supply, national competitiveness, etc.), the equity issue, the national EE
and ES targets (would foreign ESC count toward the ESD target?), etc.
An initial suggestion would be to allow a small share of the national
target (or the individual company level target) to be met by foreign ESCs.
18. 18
First Results in France
• By the end of Februray 2008, 220 certificates have been
delivered to 58 beneficiaries, corresponding to 14,0 TWh
(with 4,5 TWh in the last months). 13,9 TWh resulting from
standardised measures and 92 GWh via specific projects
• The certified savings are divided as follows:
– Residential buildings (95.4%)
– Commercial buildings (2.0%)
– Industry (1.8%)
– Networks (0.6%)
– Transport (0.3%)
19. 19
First Results in France
The 10 standardised projects more frequently implemented are: