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The white certificate scheme: the
italian experience and proposals for
improvement
Dario Di Santo                                                               Veronica Venturini
fiRE – italian federation for the Rational Use of Energy                     fiRE – italian federation for the Rational Use of Energy
Via anguillarese 301                                                         Via anguillarese 301
00123 Roma iT                                                                00123 Roma iT
disanto@fire-italia.org                                                      venturini@fire-italia.org

Daniele forni                                                                Enrico biele
fiRE – italian federation for the Rational Use of Energy                     fiRE – italian federation for the Rational Use of Energy
Via anguillarese 301                                                         Via anguillarese 301
00123 Roma iT                                                                00123 Roma iT
forni@fire-italia.org                                                        biele@fire-italia.org




Keywords
baseline, tradable white certicates, programme impact, na-                      Strengths and weaknesses, achieved results and suggestions
tional energy efficiency plans, incentive mechanisms, energy                 to improve the current scheme will be addressed.
efficiency policy, energy savings certificates, policy implemen-
tation, cost effectiveness
                                                                             Contents
                                                                             This paper will present in the first chapters how the Italian White
Abstract                                                                     Certificate scheme works, its basis and market dynamics. Then it
The Italian White Certificate scheme is one of the most com-                 will focus on the evaluation of the economical impact of deemed
plete examples of baseline and trade incentive schemes existing              savings projects, since they are the most important in term of
in Europe, created with the aim of promoting energy efficiency               accounted savings and deeply affect the capability of the scheme
measures on final energy uses. The first draft was defined by                to reach the mandatory targets and promote energy efficiency
Ministerial decrees in July 2004. The scheme provides for elec-              solutions. The analysis will show some critical issues that could
tricity and natural gas DSOs1 the obligation to achieve yearly               play a negative role in the future and suggests changes in the
energy saving targets certified by the presentation of a corre-              scheme’s design in order to avoid the possibility of a failure.
sponding number of white certificates (each equal to one toe).               Comparison with other schemes shows that this scheme works
The DSOs can reach their target either by implementing energy                better in promoting the growth of energy efficiency actors than
efficiency solutions among end-users or by buying white cer-                 in stimulating the implementation of energy efficiency projects.
tificate from other DSOs, ESCOs or companies that have an                    For this reason, the paper suggests to consider white certificate
appointed energy manager as provided by Italian law 10/1991.                 schemes (called hereafter WhC) as a complementary policy, to
   During the first years of application, the scheme encountered             be used together with other incentive schemes and policy tools.
some initial difficulties and has been corrected and modified                   The analysis of the Italian WhC is mostly based on three sur-
with ad hoc legislative acts in December 2007 and in May 2008.               veys recently implemented by FIRE2 among energy managers
Recently, it has become difficult to find white certificates on              and ESCOs [1][2][3], on a study realized by FIRE in 2010 [4],
the market, due to the configuration of the scheme more than                 and on information, views, experiences, and issues communi-
to market dynamics, and there is the necessity to change the                 cated by policy makers, institutional officers, FIRE’s members,
scheme.                                                                      and energy managers at FIRE’s workshops, conferences, and
   It is time to make a brief assessment of the White Certificate            training courses [5].
scheme, evaluating its effectiveness in promoting energy efficien-
cy in comparison to the experiences of other EU member States.
                                                                             2. fiRE, the italian federation for the Rational Use of Energy, is a no-profit associa-
                                                                             tion that manages the italian energy manager network on behalf of the Ministry
                                                                             for the Economic Development and promotes energy efficiency supporting profes-
                                                                             sionals and operators that work in the energy field. it deals with the italian white
1. DSo: distribution system operator.                                        certificate scheme since 2001.




	                               ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY                                     249

                                                           Contents   Keywords      Authors
2-011 Di SanTo ET al                                                                                          PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES




Figure 1. Yearly DSOs’ targets and issued certificates.



The	Italian	White	Certificate	scheme                                                        technically and administratively sound –, the owner receives
                                                                                            from GME (Gestore dei Mercati Energetici that manages the
The	sCheme’s	bAsICs                                                                         Italian Power Exchange and the Emission Trading, Green Cer-
The Italian WhC scheme (also known as TEE, acronym of                                       tificates and WhC markets) on its account a number of WhC
the Italian legislative definition “titoli di efficienza energetica”,                       corresponding to the recognized saving (one White Certificate
meaning “energy efficiency certificates”) created by the D.M. 20                            equals to one toe of savings).
July 2004, whose purpose is to promote measures to improve                                     Every party with WhC on its account can then trade the cer-
energy efficiency among end-users, has now entered its second                               tificates either on the real time GME market7, which usually
phase, after the changes introduced by the D.M. 21 December                                 is held once a week, or through bilateral contracts registered
2007 and the D.Lgs. 30 May 2008 No. 1153.                                                   on the GME’s platform. Operators that cannot present WhC
   The system is based on the obligation, imposed on electric-                              projects may join the market too as traders. The scope of WhC
ity and natural gas DSOs with more than 50,000 customers,                                   trading is to allow obliged DSOs to obtain a WhC amount suffi-
to meet specific targets, expressed as primary energy savings                               cient to reach their targets. The certificates should be presented
and increasing over the years as shown in Figure 1, aimed at                                to AEEG within May 31st of the year that follows the obligation.
increasing end-use energy efficiency. These savings can be                                  In the case of an insufficient number of certificates there are
achieved through energy efficiency actions among end-users                                  two possibilities:
and are assessed using tons of oil equivalent (toe) as measure-                             • if the number of WhC is at least equal to half the DSO’s tar-
ment unit4. Cumulative targets for DSOs, set at 200,000  toe                                    get, the DSO is not subjected to penalties, but the next year
in 2005, rose from 2.2 million toe in 2008 to 6.0 million toe                                   it must add these lacking WhC to its target;
in 2012. This year a new ministerial decree should extend the
scheme duration beyond 2012.                                                                • if the number of WhC does not reach half of the target, the
   Figure 2 shows how the scheme works. A DSO or a volun-                                       distributor is fined and it has nevertheless to add the lacking
tary subject – a DSO with less than 50,000 users, a company                                     WhC to its target the next year.
controlled or controlling a DSO, an energy service company                                  It is worth noticing, since it is important in the scheme’s frame-
(ESC)5, or a company or institution that have appointed an en-                              work, that AEEG has not set the value of the penalty. That
ergy manager in accordance with article 19 of law 10/916 – may                              means it will be calculated on the basis of the extent of the
apply for WhC by presenting an energy efficiency project. If                                default and of the involved DSO’s behaviour in complying with
the project satisfies the rules set by AEEG (the Italian Electric-                          the request to correct it. Therefore, the market lacks this typi-
ity and Gas Authority) and is approved by ENEA (the Italian                                 cal price upper threshold. We will see in Figure 2 which is the
Energy Agency) – whose task is to check that the project is                                 actual threshold to the market price.
                                                                                                The end-user can benefit from part of the economic value
                                                                                            of the WhC or, less frequently, from a discount on the capital
3. D.M. is the abbreviation for ministerial decree, a legislative second rank act that      cost of the solution or on the energy service annual fee, where
is issued in accord to a law or a legislative decree (D.lgs.). The white certificate        applicable. It can be an active party only if it is an organization
scheme was in fact provided for in the electricity and gas markets liberalization
laws.                                                                                       with the energy manager appointment obligation provided by
4. with the italian production mix, one toe is about 1,200 m3 of gas or 5,350 kwh           law 10/1991.
of electricity. That means that a 0.187 toe/Mwhe and 0.086 toe/Mwht coefficients
are used.
                                                                                                Almost every project involving an improved efficiency in the
5. in order to participate in the white certificate scheme it is not necessary to be an     final consumption of energy can be admitted in the scheme,
ESCo, as defined in the 2006/32/EC directive, but it is sufficient for the company          from boilers to lighting systems, from solar thermal to cogen-
purpose to deal with the implementation of energy efficiency measures. This is the
reason why we use ESC as acronym instead of ESCo. before it can present a project
an ESC shall demonstrate to comply with this request by obtaining an accreditation
(“accreditamento”) with aEEg.
6. industrial companies that have a primary energy consumption of at least                  7. it is possible to participate in “viewer mode” to the sessions by following the
10,000 toe and the other type of companies or authorities other 1,000 toe have to           directions given at the following link: http://www.mercatoelettrico.org/En/Mercati/
appoint an energy manager by law. Their network is managed by fiRE.                         accessowhC.aspx.




250	 ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY

                                                                    Contents         Keywords     Authors
PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES                                                                                                      2-011 Di SanTo ET al




Figure 2. Italian white certificates scheme.



eration, from electric motors to industrial process projects. The                           calculated on the basis of an algorithm based on at least one
exceptions not admitted in the scheme are projects aimed at                                 measurement. For example in the case of high efficient cogen-
increasing efficiency in electricity generation and solutions that                          eration, the savings are calculated with respect to the amount
are not listed in dedicated tables provided by the ministerial                              of fuel consumption, the electricity produced, and the useful
decrees that set up the scheme8. Each of the eligible projects is                           heat supplied to the user. The deemed saving approach has
expected to issue a certain number of certificates, depending on                            the advantage of requiring no meters and of making the WhC
the installed or replaced units, or on measured parameters (e.g.                            available since the implementation of the action. The engineer-
electricity and heat produced by a district heating plant), usu-                            ing estimates approach requires some measurements, delaying
ally for a period of five years (eight years for building envelope                          the emission of the first WhC usually by one year12. Both ap-
related projects, ten years for high efficiency CHP).                                       proaches make it easy to present projects.
   One of the main issues with WhC is how to calculate the                                     In the other cases, when a simplified file is not available, the
energy savings, since in many cases it is not reliable and prac-                            proponent must get a prior approval for the procedure of meas-
ticable to use meters9. For some actions, the savings are deter-                            urement and evaluation of the savings he intends to use. These
mined on the basis of special “files” defined by AEEG. In this                              are calculated on the basis of measured quantities (the so-called
case (deemed savings – with no on-field measurement – and                                   “metodo a consuntivo”, or energy monitoring plan). In fact, the
engineering estimates – with on-field measurement) it is easy                               proponent shall make a market survey to estimate the baseline
to evaluate the savings on the basis of the installed units or the                          of the solution with respect to market standards and the related
produced kWh (e.g. solar heating, windows replacement, CHP                                  “additional” savings, and propose a methodology to calculate
and district heating, etc). For example every square meter of                               the savings based on appropriate metering. Under this proce-
glazed solar thermal panels installed in Rome substituting an                               dure, important actions – such as industrial cogeneration and
electric boiler corresponds to 0.154 toe10. For deemed savings,                             many industrial projects, building renovation, waste heat re-
a preliminary survey is made by ENEA – previously by AEEG                                   covery, etc – are presented.
with the help of ENEA, RSE (Energy System Research Center)                                     An important issue is that only additional savings are consid-
or other subjects – in order to evaluate the standardized sav-                              ered for WhC. Additional savings are evaluated with respect to
ings to be recognized by these files. If during the survey it is                            a standard market baseline, dependent on the considered solu-
not possible to achieve a standardized method11, the engineer-                              tion and/or sector, that represents the average energy perform-
ing estimates approach is proposed. It implies that savings are                             ance of the typical action. This is a correct approach, whose
                                                                                            aim is to give the incentive only to the savings promoted by the
                                                                                            scheme – and not to the ones that would be obtained in any
8. The italian version of the D.M. 20 July 2004 is downloadable from the following          case because of technological improvement, mandatory stand-
link: http://www.autorita.energia.it/it/ee/def.htm.
                                                                                            ards, or market developments –, thus theoretically ensuring
9. Either because it would be too expensive or because it would be difficult or
impossible to isolate the effects of the energy efficiency solution (e.g. for buildings     that the incentive is both cost-effective and able to promote an
thermal insulation).
                                                                                            increase in energy efficiency. Unfortunately, though, the effects
10. This number will change in case of different location (the file considers five
solar zones), of gas boiler or district heating integration, or of evacuated tube col-
                                                                                            of the additional savings approach are not the expected ones.
lectors. See “list of deemed savings file” chapter.
11. for example, because there is no agreement among the stakeholders (tech-
nology manufacturers, energy providers, DSos, consumers, associations, etc), or
because the savings vary a lot depending on some variable.                                  12. That is the time required to “measure” the savings.




	                                 ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY                                      251

                                                                    Contents         Keywords     Authors
2-011 Di SanTo ET al                                                                                          PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES



   In order to facilitate the comprehension of the way addition-                           ity to obtain WhC, and this means that WhC become only a
al savings work, two examples are presented below, one for the                             premium for the ESC or end-user that presents the project).
deemed saving evaluation and one for the energy monitoring                                    In fact, since it is difficult to find reliable market data in Italy,
plan evaluation.                                                                           the evaluation of additional savings is usually more complex
   If we change our gas boiler with a condensing one at home,                              and time consuming than the identification of the required
we can expect a high energy saving, since often the substituted                            meters and of the proper algorithm. For some actions, like the
boiler is old and characterized by low real efficiency13. But we                           domestic boiler example, it dramatically reduces the savings,
have to take into account that, due to the technological im-                               with respect to the ex-post VS ex-ante energy consumption
provements, even low class boilers presently have a high effi-                             difference, and thus the economic impact of WhC. For this
ciency, so the old boiler could not be considered as a baseline.                           reason, it is a main variable in the scheme and should not be
The baseline should instead be evaluated with respect to the                               underestimated.
typical boiler installed today in the residential sector. In this                             When renewable sources are used as fuel, the produced
particular case, since the Italian legislation set a minimum                               useful heat is integrally converted in savings with a 0.086 toe/
boiler efficiency that represents well the typical boiler instal-                          MWht coefficient.
lation, this value represents the baseline. So the additional                                 There are four types of WhC:
savings are calculated as a difference between this reference
                                                                                           • Type I: electricity savings;
value and the condensing boiler efficiency, for which the corre-
sponding deemed saving is 0.060 toe for a boiler with domestic                             • Type II: natural gas savings;
hot water production installed in Rome. It is worth noticing
                                                                                           • Type III: savings of other fuels (LPG, diesel oil, etc) for other
that to reach one toe of savings with this action, from 10 to 27
                                                                                               purposes than transportation;
boilers are needed, depending on the climate zone14, and this
correspond, with a WhC price of 90 Euro, to 3–9 Euro/boiler/                               • Type IV: savings of other fuels (LPG, diesel oil, etc) for
year.                                                                                          transportation uses.
   In case of industrial cogeneration (CHP), for which there is
                                                                                           This classification exists because end users pay a tariff compo-
no simplified file, it is necessary to use the monitoring plan ap-
                                                                                           nent on electricity and natural gas distribution to allow obliged
proach. Regarding the baseline issue, there are three possibili-
                                                                                           DSOs to recover costs “not covered in other ways”16. This com-
ties, according to ENEA:
                                                                                           ponent gives way to a reimbursement for obliged DSOs that is
• CHP is not a usual practice in the considered industrial sec-                            currently worth 93.68 Euro/toe (it ranged between 88.92 and
    tor, thus the baseline corresponds to the separated produc-                            100.00 Euro per toe from 2005 to 2010) and is assigned to DSOs
    tion of electricity and heat15;                                                        upon the presentation of type I, II, and III certificates to the
                                                                                           AEEG17.
• CHP is a usual practice in the considered industrial sector
                                                                                              The scheme provides a minimum threshold for presenting
    (e.g. paper or ceramic industry), but has not yet been used
                                                                                           projects, which varies from 25 to 200 toe, depending on the
    in the company that presents the project, thus the baseline
                                                                                           type of actions and the proponent (see Table 1). This is miti-
    corresponds to a typical CHP solution (e.g. steam turbine,
                                                                                           gated by the fact that projects implemented among different
    or reciprocating gas engine);
                                                                                           users can be combined to achieve the required threshold. The
• CHP is a usual practice in the considered industrial sector                              threshold is an issue for small projects, especially in case of
    (e.g. paper or ceramic industry) and CHP was already used                              energy monitoring plans, and for companies with an energy
    in the company that presents the project, thus the baseline                            manager, because for a single user, reaching a 200 additional
    corresponds to the solution with the higher efficiency be-                             toe savings is not an easy task.
    tween the typical CHP system and the ex-ante plant.                                       Table 2 shows that if a proponent implements different ac-
                                                                                           tions benefiting different clients, they can be added together
This shows how the same solution, which virtually ensures the
                                                                                           provided that they present the same evaluation method (all
same energy consumption reduction, is treated differently with
                                                                                           deemed savings, for example). If different evaluation methods
respect to the user. This means that this incentive scheme does
                                                                                           are used (for example solar thermal, which uses deemed sav-
not consider the capability of different technologies to pro-
                                                                                           ings, and CHP, which uses engineering estimates), the corre-
mote a real energy consumption reduction, both because of
                                                                                           sponding actions can be added only if they benefit a single user
the additional savings and because it does not take into account
                                                                                           and are presented as a monitoring plan.
projects’ lifetime. Besides, additional savings do not mean ad-
ditional actions: we will show below that the incentive is often
too weak to justify an operator choice (i.e. the energy efficiency
action will be carried on in any case, regardless of the possibil-
                                                                                           16. This definition, provided by D.M. 20 July 2004 and meaning that the DSos
                                                                                           reimbursement shall take into account the earnings related to energy efficiency
                                                                                           investments, is not easy to translate into numbers. Since DSos are mainly passive
                                                                                           parties, because they usually do not implement projects, it is possible to say that
                                                                                           the DSos reimbursement shall be substantially similar to the whC market price.
13. for example 70-75 %, since not only the nominal efficiency is lower, but also          DSos actually claim a reimbursement higher than the market price, in order to
the boiler works at partial loads most of the time, due to the mild italian weather.       cover the expenses related to their units dealing with whC and the reduced energy
This of course amplify the real efficiency gap between the two solutions.                  earnings from distribution.
14. in italy there are six climate zone, classified from a (the hotter one) to f (the      17. Type iV certificates do not give access to reimbursement, thus making them
colder one). Roma is in zone D.                                                            not worth to exchange on the market (this is the reason why in the price diagram
15. This is by the way the case of ChP for civil sector heating and cooling uses, as       in figure 3 they are not present). it is expected that a new law will change this and
considered in engineering estimates file no. 21.                                           so in the next years they also will become interesting.




252	 ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY

                                                                   Contents         Keywords     Authors
PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES                                                                                     2-011 Di SanTo ET al



Table	1.	minimum	required	thresholds	to	present	a	project.

                                     DSOs and company with
    Threshold (toe)                                                          Voluntary parties
                                        energy manager
    Deemed savings                                                 25                                     25
    Engineering estimates                                         100                                     50
    Monitoring plan                                               200                                   100



Table	2.	possibility	to	sum	up	different	actions	to	reach	the	thresholds	of	Table	1.

    Possibility to sum different                                                                                     Non homogeneous
    actions in a project to reach                 Homogenous savings evaluation methods                              savings evaluation
    the minimum threshold                                                                                                 methods
                                                                        Engineering
    One client                              Deemed savings                                      Monitoring plan         Monitoring Plan
                                                                         estimates
                                                                        Engineering
    Many clients                            Deemed savings                                      Monitoring plan           Not permitted
                                                                         estimates




Figure 3. WhC (TEE) price trend.




DemAnD,	supply	AnD	WhC’s	prICe                                                toe. Figure 3 shows the price trend over the years (till the begin-
The scheme therefore works on the basis of a demand, repre-                   ning of March 2011)18.
sented by the obligation imposed on DSOs (e.g. 4.3 million toe                   WhC can be cumulated with another national scheme grant-
in 2010), and a supply, represented by the certificates held by               ing a 55  % tax deduction when energy efficiency refurbish-
parties who have presented and got approved energy efficiency                 ments are undertaken, and with many regional incentives. This
projects.                                                                     means that a household owner can obtain the tax deduction
   Since there is a demand/supply driven market, periods of                   for a solar thermal or a double glass window installation, for
oversupply, as in 2008, when the price tends to remain relatively             example, and an ESC can ask for WhC (of course provided it
low can be followed by periods when the price goes up because                 reaches the minimum project threshold by summing up differ-
of a shortage of certificates. The certificates are bankable until            ent clients), offering a discount to the end-user. They are also
2012 and can therefore be withheld by the owner to be sold at a               compatible with green certificates and the RES feed in tariff, but
time considered more favourable.                                              only for the thermal part (i.e. green certificates can be issued on
   In 2009, the certificates were traded at a value between                   the electrical output of a biomass fired cogeneration plant while
75 and 85 Euro per toe, whereas in 2010 the price has reached                 WhC can be obtained on the heat recovery, if used for heating,
100 Euro per toe and has averaged in the range 90-95 Euro per                 air conditioning, or other useful purposes).


                                                                              18. Type iii whC were not exchanged before the end of 2008 because till then
                                                                              they opened no right to tariff reimbursement. Presently only type iV whC have
                                                                              this problem.




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                                                       Contents     Keywords          Authors
2-011 Di SanTo ET al                                                                                        PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES




Figure 4. Usage of simplified files and monitoring plans as total                         Figure 5. Deemed savings share by different solutions.
savings percentages.


Deemed	savings	capability	to	promote	energy	                                              end of this article, the new values of the files are also presented
efficiency                                                                                (marked with a “bis” or a “tris”).
                                                                                             The other solutions are less profitable, and in most cases
As part of the scheme of energy efficiency certificates, the
                                                                                          the cash flow generated by WhC trading seems insufficient
method of deemed savings deserves special attention because,
                                                                                          to promote their implementation. FIRE has pointed out this
since the scheme has started, using standard files to quantify
                                                                                          risk since the beginning of the scheme, when the availability
the energy savings has largely prevailed over the other two
                                                                                          of the first file for CFL lamps permitted to get one WhC every
types of evaluation, both in terms of savings certificates and
                                                                                          79 lamps, making this action very inviting for DSOs and ESCs.
number of operations performed (as shown in Figure 4 [6]).
                                                                                          As soon as the file was modified, reducing the additional sav-
The reason for this success lies mainly in the simplicity of appli-
                                                                                          ing coefficient, this solution became less attractive; the same
cation of such files, which do not require direct measurements
                                                                                          happened with aerators and low flow shower taps. As a conse-
of energy flows.
                                                                                          quence the percentage for these solutions has been reducing in
   It is worth noticing that the fall in engineering estimates is
                                                                                          the recent times. Since WhC market prices have not changed
due to an administrative tribunal decision in 2006 that blocked
                                                                                          much, the lack of other highly profitable solutions explains the
the possibility to recognize savings related to CHP and district
                                                                                          reason why it is getting difficult to find WhC on the market (as
heating files19.
                                                                                          shown by Figure 1).
   Another emerging trend is the growth of monitoring plans,
                                                                                             It is possible to start from a simple calculation, in order to
due both to a better understanding of the methods needed to
                                                                                          better explain this point. One toe means around 90 Euro from
present this kind of projects, and to an increasing difficulty in
                                                                                          WhC, as seen in Figure 3, and an economic saving on bill of
presenting new deemed projects.
                                                                                          400-600 Euro for the large industrial users and 700-800 Euro
   Figure 5 shows what kind of technical solutions were pre-
                                                                                          for the civil ones with Italian energy prices21 (household aver-
sented among deemed saving files. It is clear that compact fluo-
                                                                                          age costs in early 2011, as reported by AEEG, are 0.75 Euro/m3
rescent lamps, together with low flow shower taps and aerators
                                                                                          and 0.16 Euro/kWh). Apparently WhC increase the cash flow
lead the game, with 87 % of savings. Altogether, the other files
                                                                                          of a 10-20 %, which would represent a good incentive. There are
amounted only to 13 %.
                                                                                          two aspects that shall be considered: this percentage is usually
   This is because the files related to CFL, aerators and shower
                                                                                          lower due to the additional saving coefficient and the impact
taps permitted to earn through WhC more than their capital
                                                                                          of the incentive – cumulated over the years of WhC recogni-
cost. In addition, it was sufficient to distribute lamps, without
                                                                                          tion – depends on the capital cost of the action (acceptable
any on-site installation. These actions provided a very strong
                                                                                          investments in term of pay back time usually average 1,000-
economic benefit, resulting in a rapid diffusion of CFL on the
                                                                                          2,000  Euro/toe for industrial users and 3,000-6,000  Euro/
market. Thus CFL became the baseline, and AEEG decided to
                                                                                          toe for civil users, whereas the WhC contribution is around
change the additional savings coefficient20, reducing the ad-
                                                                                          400 Euro – calculated at a 5 % discount rate – on “additional”
ditional savings. In the list of the deemed savings files at the
                                                                                          toes).
                                                                                             In order to address more specifically this issue, FIRE carried
                                                                                          on a study in 2010 within the “Ricerca di Sistema” programme
19. The tribunal decision followed a request of a DSo that asked for an increase
in the calculated savings. The tribunal gave reason to the DSo and asked aEEg
                                                                                          to evaluate the “incentive to capital cost of investment” ratio for
to change the algorithm, but the aEEg tried to have the sentence changed by the           deemed savings files.
superior tribunal (Consiglio di Stato), which confirmed the tribunal decision, and
then it took another half a year – in 2010 – to issue the new files no. 21 e no. 22.
                                                                                             The main hypotheses are:
Thus all the ChP and district heating plants realized between 2006 and 2010 will
have their whC issued in the end of 2010 and for this reason a strong increase in
the engineering estimates percentage is expected in 2011 aEEg’s report.
20. To keep into account only the additional saving, a additional saving coefficient
is used, which is 100 % when the baseline corresponds to the ex-ante situation and
a value between 0 and 100 % in the other cases. The gross savings are then mul-           21. lPg and diesel oil will cost 1,300-1,500 Euro/toe. large industrial costumers
tiplied by this coefficient to get the net savings that are considered to issue whC.      costs are lower, but usually higher than other EU Countries.




254	 ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY

                                                                  Contents         Keywords     Authors
PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES                                                                                             2-011 Di SanTo ET al




    %




Figure 6. WhC’s incentive VS capital cost ratio for deeemed savings files. Only results above 10% are shown.



• for each technology a range of typical investment cost has                      it is very difficult to find enough certificates on the market, the
        been estimated;                                                           situation is becoming critical.
                                                                                      The low revenue per unit and the complex procedure for the
• the value of 90 Euro/toe has been applied for the years of
                                                                                  collection of documentation to present a project, in fact, often
        the incentive (five or eight depending on the solution) and
                                                                                  do not justify the effort of presenting a WhC project. This is the
        discounted at 5 % ;
                                                                                  case of actions that are not normally made by actors allowed
• the incentive/capital cost ratio has been calculated for typi-                  to present projects, such as small companies and individual
        cal situations, with reference to climate zone, solar zone, and           installers, for heat pumps, boilers, air conditioners, window
        other files’ variables.                                                   glazing and insulation in residential buildings. In these cases,
                                                                                  the number of units to reach the threshold for submission of a
Figure 6 shows the files that presents a “WhC incentive/capital
                                                                                  project is particularly high, and the per unit revenue is low. To-
cost of the action” ratio higher than 10 %. As it can be seen,
                                                                                  gether they make it inconvenient to take part in the scheme23.
apart from lamps, taps, and stand-by, only VSD for industrial
                                                                                      One option for equipment and appliance retailers and in-
pumps, solar thermal collectors in substitution of electric boil-
                                                                                  stallers may be to rely on an ESC, which could serve as a “col-
ers, and the substitution of electric DHW boilers with gas boil-
                                                                                  lector” of actions. On the other hand, however, it would not be
ers remain available. All other actions present a lower ratio.
                                                                                  easy to involve such a company, because of the low premium
   It is worth noticing that even if a less than 10 % ratio can be
                                                                                  available, if the collectable certificates are not a conspicuous
good when calculating NPV and IRR22, from a psychological
                                                                                  number.
point of view it is insignificant, at least in terms of helping to
                                                                                      This is the reason why the scheme is not able, at least with the
choose which energy efficiency action to implement.
                                                                                  actions considered so far, to promote these technical solutions
   The methodology of evaluation through deemed savings
                                                                                  efficiently.
presently works more as a support scheme for ESCs rather
                                                                                      In order to check the position of energy managers and the
than as an award to stimulate the investment in energy efficient
                                                                                  other operators on this issue, FIRE made three surveys, one
technologies. The main reason for the high disparity in terms
                                                                                  aimed at ESCos in 2009 [1] and the other at energy managers,
of economic returns among the technologies is due to the fact
                                                                                  which closed respectively in 2009 [2] and in January 2011 [3].
that the WhC scheme considers only the yearly additional sav-
                                                                                  The results, with respect to the perception of the WhC strength,
ings achieved by each technology in the 5-10 years for which
                                                                                  was similar. We present below information about the most re-
WhC are issued, and is not related to the expected lifetime of
                                                                                  cent survey. A questionnaire was sent to approx. 2,000 energy
the different projects. Thus the market baseline of the different
                                                                                  managers and FIRE received 144 replies24.
technologies becomes fundamental in evaluating the weight of
                                                                                      Figure 7 shows that the participation of energy managers in
the WhC incentive.
                                                                                  the WhC scheme has till now been very scarce and that many
   Although in principle this represents a just form of re-
source allocation, giving full importance to the objective to be
achieved and not to the means, in practice it results in leaving
out of the game several viable technologies that could be imple-
                                                                                  23. for example, in the case of the replacement of single glazing with double glaz-
mented broadly, but are not stimulated by the WhC scheme. As                      ing in residential file n. 4, between 1,100 and 12,500 m2 of surface, depending
                                                                                  on climate zone, need to be replaced to reach the minimum threshold of 25 toe
                                                                                  with a corresponding revenue varying from 12 Euro to 1 Euro per square meter.
                                                                                  24. Considering that the questionnaire was a complex one and that it remained
22. nPV (net Present Value) and iRR (internal Rate of Return) are well known      open for answers for a short period the answer rate is satisfying and higher than
economic indicators to evaluate investments.                                      usual.




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                                                            Contents       Keywords     Authors
2-011 Di SanTo ET al                                                                            PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES




Figure 7. Energy manager answers to one of the questions raised within a recent FIRE survey. SSE=ESC, distributor=DSO.



of them do not consider the scheme worth joining in. The most                 Critical	aspects
commonly provided reasons are:                                                The WhC scheme has shown some critical issues, only partly
• lack of interest due to an insufficient economic value;                     resolved by the latest measures issued by public authorities.
                                                                              Legislative decree 115/2008 opened the way for some substan-
• complexity of the scheme;                                                   tial changes, but it was not transposed in a ministerial decree.
• lack of an adequate knowledge of the WhC scheme;                            The government showed a renewed commitment to the scheme
                                                                              with the legislative decree 28/2011 related to the 2009/28/EC
• size of actions below the scheme threshold;                                 directive, so 2011 should be the year for a confrontation be-
• lack of a dedicated call centre for queries about the scheme;               tween institutions and stakeholders to identify the possible
                                                                              improvements.
• lack of guidelines for monitoring plans evaluation and for                     The following issues could enhance this scheme if correctly
   simplified files;                                                          dealt with.
• lack of interest in energy efficiency measures from their                      Presently only  25 simplified files have been published by
   company.                                                                   AEEG26. Given that over 90 % of the presented projects cor-
                                                                              responds to this kind of actions, it goes without saying that this
The first three points are linked together, and witness the fact              is a limiting factor: many implemented projects that fall outside
that the WhC scheme is not a strong incentive to implement                    the files are not asking for certificates. This is reflected by the
energy efficiency actions. Besides, its complexity and the dif-               very low number of applications submitted by companies with
ficulty of getting information frighten many people more than                 energy managers (only two at the end of June 2010, to be com-
the scheme deserves.                                                          pared with the over 2,000 companies and local authorities that
• The reasons behind this result are the following:                           have an appointed energy manager).
                                                                                 Information about the availability of WhC on the market and
• Obliged distributors do not play a direct role in the im-                   their trading prices have improved thanks to recent measures
   plementation of energy efficiency measures (i.e. their only                (e.g. bilateral market average prices are now published month-
   source of revenue is the tariff reimbursement); they do not                ly), but this is still not enough to enable an investor to properly
   really care about the WhC scheme, even considering their                   manage the price risk and the best market strategies, both be-
   ESCOs25.                                                                   cause of the low frequency of updates and of the lack of data.
• Low incentives, together with the minimum threshold, the                    This represents an important limitation for a baseline and trade
   complexity of the scheme, and the lack of information, keep                scheme. It would be useful to have a web page on the GME
   away many potential participants.                                          website with real-time data. And it would not be difficult to
                                                                              achieve, considering that all the projects are presented via web.
• The financial crisis does not help energy efficiency, at least                 The definition of the new rules on the reimbursement rate
   until energy prices remains low (which is not the recent                   for DSOs – indexed to the trend of the main energy carriers,
   trend).                                                                    but not to the outcome of the market in the previous years - is
                                                                              another limit to the price of WhC, given the reluctance of DSOs
                                                                              to directly implement projects and to purchase certificates at
                                                                              a price greater than the refund. Having no longer profitable



                                                                              26. The twenty files indicated in the list below and five engineering estimates:
                                                                              ChP, district heating, VSD for water pumping systems, natural gas decompression
25. for example EnEl Si and EnEl Sole for the EnEl group.                     systems, centralized heating and cooling for buildings.




256	 ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY

                                                            Contents   Keywords     Authors
PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES                                                                                            2-011 Di SanTo ET al



projects like the fluorescent lamps to drive the supply side,                      takes into account the capability of the implemented actions
considering the fast growing energy saving targets, represents                     to produce savings during its lifetime. The national target for
an issue since WhC price is rising and the reimbursement is                        the 2006–2009 period has been totally fulfilled (and even ex-
not. Thus, unless the reimbursement rule is reviewed to allow                      ceeded) by the obliged actors. For the second obligation pe-
higher values, to increase the number of presented projects,                       riod, the obligation has been increased from 54 TWh cumac
a simplification of the applications for monitoring plans, and                     up to 345 TWh cumac, with transport fuel suppliers added to
possibly the reduction of the thresholds for projects dimension                    the energy suppliers as obliged actors. Compared to the Italian
will become almost a requirement.                                                  scheme, the number of French files is much higher (currently,
   The possibility to introduce a minimum threshold for the                        there are about 200  files for 200  energy efficiency actions),
price of WhC could also be considered, like the one used in the                    and covers almost all energy savings registered in the French
Italian green certificate scheme, in order to shield participating                 scheme. Another method of calculation is admitted: specific
companies from the risk of very low prices on the market (note                     field measures are presented to and evaluated by ADEME, and
however that this is not a risk in the near future, because of the                 this aspect can be easily compared to the Italian monitoring
lack of certificates expected for the 2011 obligation).                            plan evaluation method.
   Concerning additional savings, it is better to maintain them,                       It is worth noticing that not only these three schemes, but
but it could be useful to simplify their evaluation in monitoring                  also the one set by Flemish government in the Belgian federa-
plan projects, or at least to provide sectorial guidelines to help                 tion, created in 2003, have fulfilled their targets and are consid-
proponents to identify them.                                                       ered cost effective, since the cost to save energy is lower than
                                                                                   the cost of supply. The French scheme is more capable of pro-
                                                                                   moting structural actions, since the savings are calculated on
A	Tee	scheme	to	be	generalised	to	all	european	                                    the lifespan of the projects. This is an important point, together
countries?                                                                         with a simple procedure for approving new deemed savings
Even if energy efficiency is usually considered the most cost-                     files.
effective option to achieve emission reduction targets, it is well                     At EU level, the European Commission would like to create
known that it needs some support both to implement long pay-                       a harmonized scheme, but since each country has already set
back time actions and to overcome non economic barriers. For                       its own schemes, with different obliged actors, different fields of
this reason, during the last decades, starting from the oil crisis                 action and also different energy units to calculate the savings,
of the 70s, many policies have been adopted and many incen-                        it is almost impossible to start a new general scheme with com-
tives used.                                                                        mon rules. What can be done is the creation of an energy sav-
   At EU level, what has been achieved so far is not in line with                  ings obligation scheme in the framework of the Energy Services
the energy efficiency goal of 20 % by 2020. Even if it is not man-                 Directive recast that will be done in the next months. Should
datory, stronger efforts are needed and a new European En-                         this be agreed upon, the EU will provide a general framework,
ergy Efficiency Action Plan (EEAP) has recently been adopted,                      while national schemes will remain in the member States’
together with new legislative proposals and energy directives                      responsibility. Two fundamental points that the European
recasts. In 2013, the European Commission will provide an                          Commission wants to clarify are that savings must be “real”
“assessment of the results obtained and whether (energy effi-                      and “measurable”. Qualitative energy efficiency improvement
ciency) programs will, in combination, deliver the 20 % objec-                     measures should also be provided together with the completion
tive”. In the case the EU target is unlikely to be achieved, “the                  of a competitive energy market where ESCos should be seen as
Commission will propose legally binding national targets for                       the main boost. Moreover, consumer rights and consciousness
2020”. It means that the efforts required by the national energy                   must be strengthened (information, access to ESCo services,
efficiency policies must be strengthened and more incentives                       demand side management) [14, 15].
need to be created. Among measures indicated in the EEAP,                              As alternatives, or complementary instruments to WhC, it is
WhC are perhaps the most complex solution, and also a very                         possible to consider tax deduction schemes, guarantee funds,
new one. In this chapter some European WhC schemes are                             incentive for interest28, and schemes that give a set incentive
briefly compared, together with other type of policies.                            for every saved kWh or toe. Italy is planning to issue the sec-
   Table  3 shows some differences among the three WhC                             ond and the third schemes, in order to promote ESCOs and
schemes used in the UK, France, and Italy. It is worth noticing                    small energy efficiency measures respectively. Considering the
that all schemes have been able to fulfil their targets in the last                emphasis that the EEAP puts on ESCos, guarantee funds and
years. They differ in many aspects, but additional savings are                     incentive for interest can be a very effective solution. Energy
a fundamental requirement for all three schemes (for further                       efficiency actions are usually cost effective, so it is important
investigation we suggest [1]).                                                     to create the conditions for facilitating ESCos’ activities. Tax
   The French scheme, started in 2006, is the closest to the Ital-                 deduction is interesting especially when undeclared work is
ian one. For measuring savings, standardized measure files                         widespread, because revenue generated by taxes paid by unde-
have been defined, providing eligibility criteria and calculation                  clared labourers can help balance the cost of the policy for the
methods for the most common measures. The energy unit to                           State budget. In Italy, the 55 % tax deduction, whose amount
measure the realized energy savings is the kWh cumac27, which                      is distributed over five years (ten for projects implemented in


                                                                                   28. These are schemes that finance the interest rate given by banks, thus making
27. The word “Cumac” is a synthesis of the french words ”cumulé” and ”actual-      convenient for third party financing and energy performance contracts. guarantee
isé”, meaning added and discounted.                                                funds have similar effects.




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                                                            Contents        Keywords     Authors
2-011 Di SanTo ET al                                                                                       PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES



Table	3.	Comparison	among	different	white	certificate	schemes	[14].




2011), has been an outstanding success for building actions like   demonstrates that the targets can be achieved with projects that
solar thermal, double glazed windows, thermal insulation and       at least in part are not really promoted by the scheme, and then
high efficiency boilers. Another tax deduction scheme, 20 % for    are not really “additional”30, even if they comply with the AEEG
electric engines, has instead been a failure. This suggests that   definition of additional savings (e.g. the household boilers ex-
such schemes require a high level of incentive to be effective.    ample previously shown).
Besides, they can only be used by people with a tax debit, and        In Italy the situation can be portrayed as a half full glass. The
this is an important limit.                                        scheme has worked well so far for some specific actions and
                                                                   has been able to achieve the mandatory targets. After the end
                                                                   of first phase, dominated by compact fluorescent lamps, it has
Discussion	and	proposals                                           become difficult to reach the targets. Recognizing this issue,
The WhC scheme is a complex scheme, and therefore difficult schemes [14]. decree 3 March 2011 gives the possibility to the
   Table 3. Comparison among different white certificate           the legislative
and expensive to manage for the DSOs and voluntary parties.        Ministry of Economic Development to increase the value of
Therefore the role of AEEG and from now on of ENEA and             the incentive – by allowing higher prices in the market through
GSE29, both as regulator and facilitators, will be decisive for    a revision of the DSOs reimbursement and/or by introducing
its success.                                                       multipliers for the acknowledged savings based on the lifespan
   In fact, due to the issues indicated in this paper, it may be   savings of different solutions31 –, and to allow the presentation
questioned whether WhC schemes are useful and effective. It is     of new projects to become simpler and cheaper.
difficult to give a yes/no answer, since there is no experience of    Up to now the Ministry of Economic Development has
such a scheme at a maturity stage. Most of the indicated issues    demonstrated to be able to overcome the main issues of the
can be overcome by the right policy measures, so it is worth to    schemes, so it is possible that the modifications that are going
try at least some modifications.                                   to be decided will improve the scheme.
   The first issue is how to judge whether it has been a success.     The second issue is what are the goals of a WhC scheme.
An important point is that the achievements of the scheme          There are three possibilities.
should be measured on the basis of the actions actually pro-
moted and the contribution to the development of energy
service companies and the energy efficiency market, not just to
the fulfilment of the mandatory targets. The Italian experience
                                                                                         30. because whC do not affect the choice of the project proponent of implement-
                                                                                         ing the project, as shown before in the document.
                                                                                         31. for example interventions on the building envelope or on district heating could
29. The recent legislative Decree 3 march 2011 n. 28 (adoption of the 2009/28/EC         have a multiplier equal to three or four, since the savings will be generated for a
directive) assigns to gSE (gestore dei Servizi Energetici) the role of managing the      long time, whereas solutions such as lamps or stand-by systems will have one or
white certificates projects platform that presently is managed by aEEg.                  less, since they won’t last more than five years.




258	 ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY

                                                                 Contents         Keywords     Authors
PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES                                                                                                              2-011 Di SanTo ET al



Table	4.	Deemed	savings	files.

                                                                                Deemed savings files

                                                                                                                                               Saving (10-3      Units needed to
      File                                                                                                             Unit per toe
                                          Technology                                           Unit                                           toe/unit/year)      reach 25 toe
    number
                                                                                                                     min         max          min       max      max        min

     1-tris   CFLs P <15W                                                                      lamp                        212        4.049        0        5    101.215      5.306
       2      electric DHW boiler -> gas DHW boiler                                           1 boiler                      14           14       73       73        342        342
       3      4 stars boiler
                                                                      heating                 1 boiler                      11          71        14       92      1.786        272
                                                            heating and DHW                   1 boiler                       9          25        40      117        625        214
       4      gas DHW boiler -> high efficiency gas DHW boiler                                1 boiler                      16          16        64       64        391        391
       5      single glazed windows -> double glazed windows
                                                                      houses                   1 m2                         43         500         2       23     12.500      1.087
                                                                       offices                 1 m2                         56         500         2       18     12.500      1.389
                                                                     hospitals                 1 m2                         38         250         4       26      6.250        962
       6      walls and roof insulation
                                                                      houses                   1 m2                         83        3.333        0       12     83.333      2.083
                                                                       offices                 1 m2                        108        3.333        0        9     83.333      2.688
                                                                     hospitals                 1 m2                         79        1.667        1       13     41.667      1.969
       7      photovoltaic
                                                                         beta< 70°             1 kWp                        3            4      240       346       104            72
                                                                         beta> 70°             1 kWp                        4            6      166       241       151         104
     8-bis    solar thermal collectors for DHW
                                                       electric boiler substitution            1 m2                          4          10      104       229       240         109
                                                        gas/oil boiler substitution            1 m2                          7          16       61       134       410         187
                                                                   district heating            1 m2                         10          22       45        98       556         255
       9      VSD electric engines for industrial pumping systems
                                                                    1 turn industry            1   kW                       12          42        24       83      1.042        301
                                                                 2 turns industry              1   kW                        6          20        49      166        508        151
                                                                  3 turns industry             1   kW                        3          11        95      319        265         78
                                                                seasonal industry              1   kW                       11          38        27       90        940        278
      11      high efficiency electric engines
                                                                    1 turn industry           1 kW                          37         294         3       27      7.353        936
                                                                 2 turns industry             1 kW                          19         149         7       53      3.731        469
                                                                  3 turns industry            1 kW                          10          77        13      102      1.923        245
                                                                seasonal industry             1 kW                          35         270         4       29      6.757        868
    13a-bis   aerators and low flow shower taps residential sector                           1 device                      187         187         5        5      4.682      4.682
    13b-bis   low flow shower taps hotels
                                                                     electric boiler         1 device                       60          60        17       17      1.488      1.488
                                                                    gas/oil boilers          1 device                      101         101        10       10      2.525      2.525
    13c-bis   low flow shower taps sport centers
                                                                     electric boiler         1 device                       11          11        89       89       282         282
                                                                    gas/oil boilers          1 device                       19          19        53       53       476         476
      15      air to air domestic heat pumps
                                                                          COP 3,0           apartment                       6           59        17      166      1.471        151
                                                                          COP 3,5           apartment                       4           48        21      226      1.190        111
                                                                          COP 4,0           apartment                       4           40        25      272      1.000         92
                                                                          COP 4,5           apartment                       3           36        28      308        893         81
      17      public lighting control systems                                                 1 kW                          4           14        70      234        357        107
      18      MV public lighting lamps->HPS lamps                                            1 lamp                         5           31        32      206        779        121
      19      air conditioners < 12kWf                                                          1 kWf                    263            588        2         4    14.706      6.579
      20      walls and roof insulation for cooling purposes                                    1 m2                   1.250          5.000        0         1   125.000     31.250
      23      led semaphoric lamps                                                           lamp (10 W)                  14             40       25        74       998        339
      24      led lamps for cemeteries                                                      lamp (0,5 W)                 611            611        2         2    15.263     15.263
     25a      anti standby                                                              anti stand-by device             150            150        7         7     3.741      3.741
     25b      anti standby                                                              anti stand-by device             376            376        3         3     9.402      9.402
      27      DHW electric heat pumps                                                         heat pump                    9             15       68       111       368        225




• To achieve its mandatory targets. It could be easy or difficult                                     In the second case, it is possible to consider the possibility of
     depending on how easy it is to present a project and evalu-                                   using two different and additional schemes: WhC as a basis and
     ate the savings. It does not ensure an increase in energy ef-                                 another instrument (e.g. a tax exemption, a guarantee fund, a
     ficiency, but can still be useful for the assessment of national                              fixed premium for toe scheme) dedicated to effectively promote
     savings. WhC’s price can be very low.                                                         specific energy efficiency measures. It could be something like
                                                                                                   the experience of the 55 % tax exemption in Italy. The advan-
• To promote energy efficiency operators and professionals
                                                                                                   tage is that it is possible to maintain an almost pure baseline
     growth. Same as above, but with a higher WhC’s price, and
                                                                                                   and trade scheme, with the related cost-effective benefits, while
     it will add to savings assessment the capability of consist-
                                                                                                   having the opportunity to promote a rapid diffusion of some
     ently increasing the growth rate of ESCs and other actors. It
                                                                                                   technologies.
     is advisable to have easy procedures to present projects and
                                                                                                      The third case has the advantage, with respect to the previous
     to evaluate savings.
                                                                                                   one, of avoiding the complexity of dealing with cross-subsidies.
• To stimulate the implementation of additional energy ef-                                         It is though quite difficult to manage without the introduction
     ficiency projects. In this case, which will comprehend the                                    of multipliers, which can compromise the cost-effectiveness of
     previous ones, the market price should be high enough to                                      the scheme, or of a high market price32, both measures that can
     allow the WhC price/capital cost ratio to be well above 20 %.                                 lead to speculative effects. Even in the hypothesis of a perfect
     In this case, it is advisable to have strict procedures for the                               policy design, able to assign the right multiplier to each tech-
     evaluation of savings, since the incentive value is strong.                                   nology, the complexity of the system can become excessive and
                                                                                                   unmanageable.
Considering the costs involved in the creation and manage-
ment of a WhC scheme, the first case should not be taken into
account, unless policy makers reckon it as very important in
                                                                                                   32. in the italian scheme it means to set a higher value for the DSos’ reimburse-
their country.                                                                                     ment. of course it would be very difficult to determine such a value.




	                                 ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY                                                    259

                                                                    Contents           Keywords          Authors
2-011 Di SanTo ET al                                                                  PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES



   The last issue is that since the scheme is complex, it is cru-      FIRE conference and workshop proceedings dedicated to
cial to monitor its achievements, something that can be done               white certificates (www.fire-italia.it/convegni.asp):
through surveys and data analysis. Until now this issue has            Convegno FIRE - Rimini - 4 novembre 2010 - Certificati
been underestimated in Italy, as the importance of disseminat-             bianchi: risultati e proposte di miglioramento
ing proper information to stakeholders.                                Key Energy 2009 - Rimini - 29 ottobre 2009 - Certificati
   It will be interesting to see what the achievements of the              bianchi: la partita si fa seria
WhC scheme will be in the next 2–3 years. In the meantime,             Hotel Universo - Roma - 22 aprile 2008 - Il nuovo sistema di
countries that are going to start such a scheme should make                incentivazione dell’efficienza energetica
sure that they deal in an appropriate way with the illustrated         Older workshops not listed here but available on the indicated
issues and that they take into account a periodical review of the          web page
rules in order to overcome possible issues.                            AEEG’s annual reports about white certificates, www.autorita.
                                                                           energia.it/it/pubblicazioni_ee.htm
                                                                       GME’s monthly newsletters, www.mercatoelettrico.org/It/
list	of	deemed	saving	files                                                Tools/newsletter.aspx
Files no. 1-tris and no. 13b-bis and 13c-bis are no more active        Concerted Action for the implementation of the 2006/32/EC
since January 2011.                                                        directive, core theme number 3, information gathered
                                                                           through FIRE’s participation in working groups
                                                                       Energy Efficiency Plan 2011 - Communication from the
useful	links	and	references
                                                                           Commission to the European Parliament, the Council, the
                                                                           European Economic and Social Committee and the Com-
lInKs	of	InsTITuTIons	AnD	AssoCIATIons	relATeD	To	WhITe	
                                                                           mittee and the Committee of the Regions, COM(2011)
CerTIfICATes	In	ITAly
                                                                           109/4
AEEG, Italian electricity and gas authority, www.autorita.             “European Workshop on Experiences and Policies on Energy
   energia.it                                                              Saving Obligations and White Certificates” proceedings,
GME, Italian energy market operator, www.mercatoelettrico.                 27-28 January 2011, http://re.jrc.ec.europa.eu/energyef-
   org                                                                     ficiency/events/WhC_Workshop.htm
ENEA, Italian Agency for new technologies, energy and envi-            “Tradable certificates for energy savings (white certificates)
   ronment, www.enea.it                                                    - theory and practice”, P. Bertoldi, S. Rezessy, 2006, Eu-
RSE, Energy System Research center, www.rse-web.it                         ropean Commission Joint Research Centre, Institute for
MSE, Ministry of Economic Development, www.                                Environment and Sustainability
   sviluppoeconomico.gov.it                                            “Polices for increasing energy efficiency: Thirty years of expe-
Federutility, Federation of DSOs, www.federutility.it                      rience in OECD countries”, H. Gellera, P. Harringtonb, A.
Agesi, www.agesi.it, and Assoesco, www.assoesco.org, ESCos                 H. Rosenfeldc, S. Tanishimad, F. Unanderd, Energy Policy
   associations                                                            34 (2006) 556–573
FIRE, Italian Federation for the rational use of energy, www.          “What can we learn from tradable green certificate markets
   fire-italia.org                                                         for trading white certificates?”, R. Haas, N. Sagbauer,
                                                                           G. Resch, ECEEE 2009 Summer Study - Act! Innovate!
referenCes                                                                 Deliver! Reducing energy demand sustainably
“Le ESCO in Italia”, a FIRE survey on ESCOs in Italy, 2008,            “Energy company obligations to save energy in Italy, the UK
    www.fire-italia.it/indagini/2008-12_indagine_ESCO_re-                  and France: what have we learnt?”, N. Eyre, M. Pavan, L.
    port.pdf                                                               Bodineau, ECEEE 2009 Summer Study - Act! Innovate!
“Indagine di monitoraggio della partecipazione al meccanis-                Deliver! Reducing energy demand sustainably
    mo dei WhC”, a FIRE survey on WhC in Italy, 2009, www.             IEA documentation and proceedings available
    fire-italia.it/indagini/WhC/WhC_1.asp                                  through the web sites: www.ieadsm.org/ViewTask.
“Indagine sul gradimento dei WhC tra gli energy manager”,                  aspx?ID=17&Task=14, www.ieadsm.org/Content.
    a FIRE survey in cooperation with ENEL on the energy                   aspx?ID=7#ancMilan
    managers participation in WhC in Italy, 2011, www.fire-            Energie Plus, Maitriser l’energie durablement, Revue de
    italia.it/indagini/WhC_ENEL/WhC_ENEL.asp                               l’Association technique energie environnement, biweekly
“Osservazioni sul meccanismo dei certificati bianchi e spunti              newsletter and bimonthly insight, all numbers from 2007
    per l’aggiornamento”, D. Di Santo, RdS, 2010, www.enea.                to 2011
    it/attivita_ricerca/energia/sistema_elettrico/Elettrotec-          Ademe & Vous, Ademe international monthly magazine, all
    nologie/Report-elettrotecnologie.html                                  numbers from 2007 to 2011




260	 ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY

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The white certificate scheme: the italian experience and proposals for improvement

  • 1. The white certificate scheme: the italian experience and proposals for improvement Dario Di Santo Veronica Venturini fiRE – italian federation for the Rational Use of Energy fiRE – italian federation for the Rational Use of Energy Via anguillarese 301 Via anguillarese 301 00123 Roma iT 00123 Roma iT disanto@fire-italia.org venturini@fire-italia.org Daniele forni Enrico biele fiRE – italian federation for the Rational Use of Energy fiRE – italian federation for the Rational Use of Energy Via anguillarese 301 Via anguillarese 301 00123 Roma iT 00123 Roma iT forni@fire-italia.org biele@fire-italia.org Keywords baseline, tradable white certicates, programme impact, na- Strengths and weaknesses, achieved results and suggestions tional energy efficiency plans, incentive mechanisms, energy to improve the current scheme will be addressed. efficiency policy, energy savings certificates, policy implemen- tation, cost effectiveness Contents This paper will present in the first chapters how the Italian White Abstract Certificate scheme works, its basis and market dynamics. Then it The Italian White Certificate scheme is one of the most com- will focus on the evaluation of the economical impact of deemed plete examples of baseline and trade incentive schemes existing savings projects, since they are the most important in term of in Europe, created with the aim of promoting energy efficiency accounted savings and deeply affect the capability of the scheme measures on final energy uses. The first draft was defined by to reach the mandatory targets and promote energy efficiency Ministerial decrees in July 2004. The scheme provides for elec- solutions. The analysis will show some critical issues that could tricity and natural gas DSOs1 the obligation to achieve yearly play a negative role in the future and suggests changes in the energy saving targets certified by the presentation of a corre- scheme’s design in order to avoid the possibility of a failure. sponding number of white certificates (each equal to one toe). Comparison with other schemes shows that this scheme works The DSOs can reach their target either by implementing energy better in promoting the growth of energy efficiency actors than efficiency solutions among end-users or by buying white cer- in stimulating the implementation of energy efficiency projects. tificate from other DSOs, ESCOs or companies that have an For this reason, the paper suggests to consider white certificate appointed energy manager as provided by Italian law 10/1991. schemes (called hereafter WhC) as a complementary policy, to During the first years of application, the scheme encountered be used together with other incentive schemes and policy tools. some initial difficulties and has been corrected and modified The analysis of the Italian WhC is mostly based on three sur- with ad hoc legislative acts in December 2007 and in May 2008. veys recently implemented by FIRE2 among energy managers Recently, it has become difficult to find white certificates on and ESCOs [1][2][3], on a study realized by FIRE in 2010 [4], the market, due to the configuration of the scheme more than and on information, views, experiences, and issues communi- to market dynamics, and there is the necessity to change the cated by policy makers, institutional officers, FIRE’s members, scheme. and energy managers at FIRE’s workshops, conferences, and It is time to make a brief assessment of the White Certificate training courses [5]. scheme, evaluating its effectiveness in promoting energy efficien- cy in comparison to the experiences of other EU member States. 2. fiRE, the italian federation for the Rational Use of Energy, is a no-profit associa- tion that manages the italian energy manager network on behalf of the Ministry for the Economic Development and promotes energy efficiency supporting profes- sionals and operators that work in the energy field. it deals with the italian white 1. DSo: distribution system operator. certificate scheme since 2001. ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY 249 Contents Keywords Authors
  • 2. 2-011 Di SanTo ET al PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES Figure 1. Yearly DSOs’ targets and issued certificates. The Italian White Certificate scheme technically and administratively sound –, the owner receives from GME (Gestore dei Mercati Energetici that manages the The sCheme’s bAsICs Italian Power Exchange and the Emission Trading, Green Cer- The Italian WhC scheme (also known as TEE, acronym of tificates and WhC markets) on its account a number of WhC the Italian legislative definition “titoli di efficienza energetica”, corresponding to the recognized saving (one White Certificate meaning “energy efficiency certificates”) created by the D.M. 20 equals to one toe of savings). July 2004, whose purpose is to promote measures to improve Every party with WhC on its account can then trade the cer- energy efficiency among end-users, has now entered its second tificates either on the real time GME market7, which usually phase, after the changes introduced by the D.M. 21 December is held once a week, or through bilateral contracts registered 2007 and the D.Lgs. 30 May 2008 No. 1153. on the GME’s platform. Operators that cannot present WhC The system is based on the obligation, imposed on electric- projects may join the market too as traders. The scope of WhC ity and natural gas DSOs with more than 50,000 customers, trading is to allow obliged DSOs to obtain a WhC amount suffi- to meet specific targets, expressed as primary energy savings cient to reach their targets. The certificates should be presented and increasing over the years as shown in Figure 1, aimed at to AEEG within May 31st of the year that follows the obligation. increasing end-use energy efficiency. These savings can be In the case of an insufficient number of certificates there are achieved through energy efficiency actions among end-users two possibilities: and are assessed using tons of oil equivalent (toe) as measure- • if the number of WhC is at least equal to half the DSO’s tar- ment unit4. Cumulative targets for DSOs, set at 200,000  toe get, the DSO is not subjected to penalties, but the next year in 2005, rose from 2.2 million toe in 2008 to 6.0 million toe it must add these lacking WhC to its target; in 2012. This year a new ministerial decree should extend the scheme duration beyond 2012. • if the number of WhC does not reach half of the target, the Figure 2 shows how the scheme works. A DSO or a volun- distributor is fined and it has nevertheless to add the lacking tary subject – a DSO with less than 50,000 users, a company WhC to its target the next year. controlled or controlling a DSO, an energy service company It is worth noticing, since it is important in the scheme’s frame- (ESC)5, or a company or institution that have appointed an en- work, that AEEG has not set the value of the penalty. That ergy manager in accordance with article 19 of law 10/916 – may means it will be calculated on the basis of the extent of the apply for WhC by presenting an energy efficiency project. If default and of the involved DSO’s behaviour in complying with the project satisfies the rules set by AEEG (the Italian Electric- the request to correct it. Therefore, the market lacks this typi- ity and Gas Authority) and is approved by ENEA (the Italian cal price upper threshold. We will see in Figure 2 which is the Energy Agency) – whose task is to check that the project is actual threshold to the market price. The end-user can benefit from part of the economic value of the WhC or, less frequently, from a discount on the capital 3. D.M. is the abbreviation for ministerial decree, a legislative second rank act that cost of the solution or on the energy service annual fee, where is issued in accord to a law or a legislative decree (D.lgs.). The white certificate applicable. It can be an active party only if it is an organization scheme was in fact provided for in the electricity and gas markets liberalization laws. with the energy manager appointment obligation provided by 4. with the italian production mix, one toe is about 1,200 m3 of gas or 5,350 kwh law 10/1991. of electricity. That means that a 0.187 toe/Mwhe and 0.086 toe/Mwht coefficients are used. Almost every project involving an improved efficiency in the 5. in order to participate in the white certificate scheme it is not necessary to be an final consumption of energy can be admitted in the scheme, ESCo, as defined in the 2006/32/EC directive, but it is sufficient for the company from boilers to lighting systems, from solar thermal to cogen- purpose to deal with the implementation of energy efficiency measures. This is the reason why we use ESC as acronym instead of ESCo. before it can present a project an ESC shall demonstrate to comply with this request by obtaining an accreditation (“accreditamento”) with aEEg. 6. industrial companies that have a primary energy consumption of at least 7. it is possible to participate in “viewer mode” to the sessions by following the 10,000 toe and the other type of companies or authorities other 1,000 toe have to directions given at the following link: http://www.mercatoelettrico.org/En/Mercati/ appoint an energy manager by law. Their network is managed by fiRE. accessowhC.aspx. 250 ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY Contents Keywords Authors
  • 3. PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES 2-011 Di SanTo ET al Figure 2. Italian white certificates scheme. eration, from electric motors to industrial process projects. The calculated on the basis of an algorithm based on at least one exceptions not admitted in the scheme are projects aimed at measurement. For example in the case of high efficient cogen- increasing efficiency in electricity generation and solutions that eration, the savings are calculated with respect to the amount are not listed in dedicated tables provided by the ministerial of fuel consumption, the electricity produced, and the useful decrees that set up the scheme8. Each of the eligible projects is heat supplied to the user. The deemed saving approach has expected to issue a certain number of certificates, depending on the advantage of requiring no meters and of making the WhC the installed or replaced units, or on measured parameters (e.g. available since the implementation of the action. The engineer- electricity and heat produced by a district heating plant), usu- ing estimates approach requires some measurements, delaying ally for a period of five years (eight years for building envelope the emission of the first WhC usually by one year12. Both ap- related projects, ten years for high efficiency CHP). proaches make it easy to present projects. One of the main issues with WhC is how to calculate the In the other cases, when a simplified file is not available, the energy savings, since in many cases it is not reliable and prac- proponent must get a prior approval for the procedure of meas- ticable to use meters9. For some actions, the savings are deter- urement and evaluation of the savings he intends to use. These mined on the basis of special “files” defined by AEEG. In this are calculated on the basis of measured quantities (the so-called case (deemed savings – with no on-field measurement – and “metodo a consuntivo”, or energy monitoring plan). In fact, the engineering estimates – with on-field measurement) it is easy proponent shall make a market survey to estimate the baseline to evaluate the savings on the basis of the installed units or the of the solution with respect to market standards and the related produced kWh (e.g. solar heating, windows replacement, CHP “additional” savings, and propose a methodology to calculate and district heating, etc). For example every square meter of the savings based on appropriate metering. Under this proce- glazed solar thermal panels installed in Rome substituting an dure, important actions – such as industrial cogeneration and electric boiler corresponds to 0.154 toe10. For deemed savings, many industrial projects, building renovation, waste heat re- a preliminary survey is made by ENEA – previously by AEEG covery, etc – are presented. with the help of ENEA, RSE (Energy System Research Center) An important issue is that only additional savings are consid- or other subjects – in order to evaluate the standardized sav- ered for WhC. Additional savings are evaluated with respect to ings to be recognized by these files. If during the survey it is a standard market baseline, dependent on the considered solu- not possible to achieve a standardized method11, the engineer- tion and/or sector, that represents the average energy perform- ing estimates approach is proposed. It implies that savings are ance of the typical action. This is a correct approach, whose aim is to give the incentive only to the savings promoted by the scheme – and not to the ones that would be obtained in any 8. The italian version of the D.M. 20 July 2004 is downloadable from the following case because of technological improvement, mandatory stand- link: http://www.autorita.energia.it/it/ee/def.htm. ards, or market developments –, thus theoretically ensuring 9. Either because it would be too expensive or because it would be difficult or impossible to isolate the effects of the energy efficiency solution (e.g. for buildings that the incentive is both cost-effective and able to promote an thermal insulation). increase in energy efficiency. Unfortunately, though, the effects 10. This number will change in case of different location (the file considers five solar zones), of gas boiler or district heating integration, or of evacuated tube col- of the additional savings approach are not the expected ones. lectors. See “list of deemed savings file” chapter. 11. for example, because there is no agreement among the stakeholders (tech- nology manufacturers, energy providers, DSos, consumers, associations, etc), or because the savings vary a lot depending on some variable. 12. That is the time required to “measure” the savings. ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY 251 Contents Keywords Authors
  • 4. 2-011 Di SanTo ET al PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES In order to facilitate the comprehension of the way addition- ity to obtain WhC, and this means that WhC become only a al savings work, two examples are presented below, one for the premium for the ESC or end-user that presents the project). deemed saving evaluation and one for the energy monitoring In fact, since it is difficult to find reliable market data in Italy, plan evaluation. the evaluation of additional savings is usually more complex If we change our gas boiler with a condensing one at home, and time consuming than the identification of the required we can expect a high energy saving, since often the substituted meters and of the proper algorithm. For some actions, like the boiler is old and characterized by low real efficiency13. But we domestic boiler example, it dramatically reduces the savings, have to take into account that, due to the technological im- with respect to the ex-post VS ex-ante energy consumption provements, even low class boilers presently have a high effi- difference, and thus the economic impact of WhC. For this ciency, so the old boiler could not be considered as a baseline. reason, it is a main variable in the scheme and should not be The baseline should instead be evaluated with respect to the underestimated. typical boiler installed today in the residential sector. In this When renewable sources are used as fuel, the produced particular case, since the Italian legislation set a minimum useful heat is integrally converted in savings with a 0.086 toe/ boiler efficiency that represents well the typical boiler instal- MWht coefficient. lation, this value represents the baseline. So the additional There are four types of WhC: savings are calculated as a difference between this reference • Type I: electricity savings; value and the condensing boiler efficiency, for which the corre- sponding deemed saving is 0.060 toe for a boiler with domestic • Type II: natural gas savings; hot water production installed in Rome. It is worth noticing • Type III: savings of other fuels (LPG, diesel oil, etc) for other that to reach one toe of savings with this action, from 10 to 27 purposes than transportation; boilers are needed, depending on the climate zone14, and this correspond, with a WhC price of 90 Euro, to 3–9 Euro/boiler/ • Type IV: savings of other fuels (LPG, diesel oil, etc) for year. transportation uses. In case of industrial cogeneration (CHP), for which there is This classification exists because end users pay a tariff compo- no simplified file, it is necessary to use the monitoring plan ap- nent on electricity and natural gas distribution to allow obliged proach. Regarding the baseline issue, there are three possibili- DSOs to recover costs “not covered in other ways”16. This com- ties, according to ENEA: ponent gives way to a reimbursement for obliged DSOs that is • CHP is not a usual practice in the considered industrial sec- currently worth 93.68 Euro/toe (it ranged between 88.92 and tor, thus the baseline corresponds to the separated produc- 100.00 Euro per toe from 2005 to 2010) and is assigned to DSOs tion of electricity and heat15; upon the presentation of type I, II, and III certificates to the AEEG17. • CHP is a usual practice in the considered industrial sector The scheme provides a minimum threshold for presenting (e.g. paper or ceramic industry), but has not yet been used projects, which varies from 25 to 200 toe, depending on the in the company that presents the project, thus the baseline type of actions and the proponent (see Table 1). This is miti- corresponds to a typical CHP solution (e.g. steam turbine, gated by the fact that projects implemented among different or reciprocating gas engine); users can be combined to achieve the required threshold. The • CHP is a usual practice in the considered industrial sector threshold is an issue for small projects, especially in case of (e.g. paper or ceramic industry) and CHP was already used energy monitoring plans, and for companies with an energy in the company that presents the project, thus the baseline manager, because for a single user, reaching a 200 additional corresponds to the solution with the higher efficiency be- toe savings is not an easy task. tween the typical CHP system and the ex-ante plant. Table 2 shows that if a proponent implements different ac- tions benefiting different clients, they can be added together This shows how the same solution, which virtually ensures the provided that they present the same evaluation method (all same energy consumption reduction, is treated differently with deemed savings, for example). If different evaluation methods respect to the user. This means that this incentive scheme does are used (for example solar thermal, which uses deemed sav- not consider the capability of different technologies to pro- ings, and CHP, which uses engineering estimates), the corre- mote a real energy consumption reduction, both because of sponding actions can be added only if they benefit a single user the additional savings and because it does not take into account and are presented as a monitoring plan. projects’ lifetime. Besides, additional savings do not mean ad- ditional actions: we will show below that the incentive is often too weak to justify an operator choice (i.e. the energy efficiency action will be carried on in any case, regardless of the possibil- 16. This definition, provided by D.M. 20 July 2004 and meaning that the DSos reimbursement shall take into account the earnings related to energy efficiency investments, is not easy to translate into numbers. Since DSos are mainly passive parties, because they usually do not implement projects, it is possible to say that the DSos reimbursement shall be substantially similar to the whC market price. 13. for example 70-75 %, since not only the nominal efficiency is lower, but also DSos actually claim a reimbursement higher than the market price, in order to the boiler works at partial loads most of the time, due to the mild italian weather. cover the expenses related to their units dealing with whC and the reduced energy This of course amplify the real efficiency gap between the two solutions. earnings from distribution. 14. in italy there are six climate zone, classified from a (the hotter one) to f (the 17. Type iV certificates do not give access to reimbursement, thus making them colder one). Roma is in zone D. not worth to exchange on the market (this is the reason why in the price diagram 15. This is by the way the case of ChP for civil sector heating and cooling uses, as in figure 3 they are not present). it is expected that a new law will change this and considered in engineering estimates file no. 21. so in the next years they also will become interesting. 252 ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY Contents Keywords Authors
  • 5. PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES 2-011 Di SanTo ET al Table 1. minimum required thresholds to present a project. DSOs and company with Threshold (toe) Voluntary parties energy manager Deemed savings 25 25 Engineering estimates 100 50 Monitoring plan 200 100 Table 2. possibility to sum up different actions to reach the thresholds of Table 1. Possibility to sum different Non homogeneous actions in a project to reach Homogenous savings evaluation methods savings evaluation the minimum threshold methods Engineering One client Deemed savings Monitoring plan Monitoring Plan estimates Engineering Many clients Deemed savings Monitoring plan Not permitted estimates Figure 3. WhC (TEE) price trend. DemAnD, supply AnD WhC’s prICe toe. Figure 3 shows the price trend over the years (till the begin- The scheme therefore works on the basis of a demand, repre- ning of March 2011)18. sented by the obligation imposed on DSOs (e.g. 4.3 million toe WhC can be cumulated with another national scheme grant- in 2010), and a supply, represented by the certificates held by ing a 55  % tax deduction when energy efficiency refurbish- parties who have presented and got approved energy efficiency ments are undertaken, and with many regional incentives. This projects. means that a household owner can obtain the tax deduction Since there is a demand/supply driven market, periods of for a solar thermal or a double glass window installation, for oversupply, as in 2008, when the price tends to remain relatively example, and an ESC can ask for WhC (of course provided it low can be followed by periods when the price goes up because reaches the minimum project threshold by summing up differ- of a shortage of certificates. The certificates are bankable until ent clients), offering a discount to the end-user. They are also 2012 and can therefore be withheld by the owner to be sold at a compatible with green certificates and the RES feed in tariff, but time considered more favourable. only for the thermal part (i.e. green certificates can be issued on In 2009, the certificates were traded at a value between the electrical output of a biomass fired cogeneration plant while 75 and 85 Euro per toe, whereas in 2010 the price has reached WhC can be obtained on the heat recovery, if used for heating, 100 Euro per toe and has averaged in the range 90-95 Euro per air conditioning, or other useful purposes). 18. Type iii whC were not exchanged before the end of 2008 because till then they opened no right to tariff reimbursement. Presently only type iV whC have this problem. ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY 253 Contents Keywords Authors
  • 6. 2-011 Di SanTo ET al PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES Figure 4. Usage of simplified files and monitoring plans as total Figure 5. Deemed savings share by different solutions. savings percentages. Deemed savings capability to promote energy end of this article, the new values of the files are also presented efficiency (marked with a “bis” or a “tris”). The other solutions are less profitable, and in most cases As part of the scheme of energy efficiency certificates, the the cash flow generated by WhC trading seems insufficient method of deemed savings deserves special attention because, to promote their implementation. FIRE has pointed out this since the scheme has started, using standard files to quantify risk since the beginning of the scheme, when the availability the energy savings has largely prevailed over the other two of the first file for CFL lamps permitted to get one WhC every types of evaluation, both in terms of savings certificates and 79 lamps, making this action very inviting for DSOs and ESCs. number of operations performed (as shown in Figure 4 [6]). As soon as the file was modified, reducing the additional sav- The reason for this success lies mainly in the simplicity of appli- ing coefficient, this solution became less attractive; the same cation of such files, which do not require direct measurements happened with aerators and low flow shower taps. As a conse- of energy flows. quence the percentage for these solutions has been reducing in It is worth noticing that the fall in engineering estimates is the recent times. Since WhC market prices have not changed due to an administrative tribunal decision in 2006 that blocked much, the lack of other highly profitable solutions explains the the possibility to recognize savings related to CHP and district reason why it is getting difficult to find WhC on the market (as heating files19. shown by Figure 1). Another emerging trend is the growth of monitoring plans, It is possible to start from a simple calculation, in order to due both to a better understanding of the methods needed to better explain this point. One toe means around 90 Euro from present this kind of projects, and to an increasing difficulty in WhC, as seen in Figure 3, and an economic saving on bill of presenting new deemed projects. 400-600 Euro for the large industrial users and 700-800 Euro Figure 5 shows what kind of technical solutions were pre- for the civil ones with Italian energy prices21 (household aver- sented among deemed saving files. It is clear that compact fluo- age costs in early 2011, as reported by AEEG, are 0.75 Euro/m3 rescent lamps, together with low flow shower taps and aerators and 0.16 Euro/kWh). Apparently WhC increase the cash flow lead the game, with 87 % of savings. Altogether, the other files of a 10-20 %, which would represent a good incentive. There are amounted only to 13 %. two aspects that shall be considered: this percentage is usually This is because the files related to CFL, aerators and shower lower due to the additional saving coefficient and the impact taps permitted to earn through WhC more than their capital of the incentive – cumulated over the years of WhC recogni- cost. In addition, it was sufficient to distribute lamps, without tion – depends on the capital cost of the action (acceptable any on-site installation. These actions provided a very strong investments in term of pay back time usually average 1,000- economic benefit, resulting in a rapid diffusion of CFL on the 2,000  Euro/toe for industrial users and 3,000-6,000  Euro/ market. Thus CFL became the baseline, and AEEG decided to toe for civil users, whereas the WhC contribution is around change the additional savings coefficient20, reducing the ad- 400 Euro – calculated at a 5 % discount rate – on “additional” ditional savings. In the list of the deemed savings files at the toes). In order to address more specifically this issue, FIRE carried on a study in 2010 within the “Ricerca di Sistema” programme 19. The tribunal decision followed a request of a DSo that asked for an increase in the calculated savings. The tribunal gave reason to the DSo and asked aEEg to evaluate the “incentive to capital cost of investment” ratio for to change the algorithm, but the aEEg tried to have the sentence changed by the deemed savings files. superior tribunal (Consiglio di Stato), which confirmed the tribunal decision, and then it took another half a year – in 2010 – to issue the new files no. 21 e no. 22. The main hypotheses are: Thus all the ChP and district heating plants realized between 2006 and 2010 will have their whC issued in the end of 2010 and for this reason a strong increase in the engineering estimates percentage is expected in 2011 aEEg’s report. 20. To keep into account only the additional saving, a additional saving coefficient is used, which is 100 % when the baseline corresponds to the ex-ante situation and a value between 0 and 100 % in the other cases. The gross savings are then mul- 21. lPg and diesel oil will cost 1,300-1,500 Euro/toe. large industrial costumers tiplied by this coefficient to get the net savings that are considered to issue whC. costs are lower, but usually higher than other EU Countries. 254 ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY Contents Keywords Authors
  • 7. PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES 2-011 Di SanTo ET al % Figure 6. WhC’s incentive VS capital cost ratio for deeemed savings files. Only results above 10% are shown. • for each technology a range of typical investment cost has it is very difficult to find enough certificates on the market, the been estimated; situation is becoming critical. The low revenue per unit and the complex procedure for the • the value of 90 Euro/toe has been applied for the years of collection of documentation to present a project, in fact, often the incentive (five or eight depending on the solution) and do not justify the effort of presenting a WhC project. This is the discounted at 5 % ; case of actions that are not normally made by actors allowed • the incentive/capital cost ratio has been calculated for typi- to present projects, such as small companies and individual cal situations, with reference to climate zone, solar zone, and installers, for heat pumps, boilers, air conditioners, window other files’ variables. glazing and insulation in residential buildings. In these cases, the number of units to reach the threshold for submission of a Figure 6 shows the files that presents a “WhC incentive/capital project is particularly high, and the per unit revenue is low. To- cost of the action” ratio higher than 10 %. As it can be seen, gether they make it inconvenient to take part in the scheme23. apart from lamps, taps, and stand-by, only VSD for industrial One option for equipment and appliance retailers and in- pumps, solar thermal collectors in substitution of electric boil- stallers may be to rely on an ESC, which could serve as a “col- ers, and the substitution of electric DHW boilers with gas boil- lector” of actions. On the other hand, however, it would not be ers remain available. All other actions present a lower ratio. easy to involve such a company, because of the low premium It is worth noticing that even if a less than 10 % ratio can be available, if the collectable certificates are not a conspicuous good when calculating NPV and IRR22, from a psychological number. point of view it is insignificant, at least in terms of helping to This is the reason why the scheme is not able, at least with the choose which energy efficiency action to implement. actions considered so far, to promote these technical solutions The methodology of evaluation through deemed savings efficiently. presently works more as a support scheme for ESCs rather In order to check the position of energy managers and the than as an award to stimulate the investment in energy efficient other operators on this issue, FIRE made three surveys, one technologies. The main reason for the high disparity in terms aimed at ESCos in 2009 [1] and the other at energy managers, of economic returns among the technologies is due to the fact which closed respectively in 2009 [2] and in January 2011 [3]. that the WhC scheme considers only the yearly additional sav- The results, with respect to the perception of the WhC strength, ings achieved by each technology in the 5-10 years for which was similar. We present below information about the most re- WhC are issued, and is not related to the expected lifetime of cent survey. A questionnaire was sent to approx. 2,000 energy the different projects. Thus the market baseline of the different managers and FIRE received 144 replies24. technologies becomes fundamental in evaluating the weight of Figure 7 shows that the participation of energy managers in the WhC incentive. the WhC scheme has till now been very scarce and that many Although in principle this represents a just form of re- source allocation, giving full importance to the objective to be achieved and not to the means, in practice it results in leaving out of the game several viable technologies that could be imple- 23. for example, in the case of the replacement of single glazing with double glaz- mented broadly, but are not stimulated by the WhC scheme. As ing in residential file n. 4, between 1,100 and 12,500 m2 of surface, depending on climate zone, need to be replaced to reach the minimum threshold of 25 toe with a corresponding revenue varying from 12 Euro to 1 Euro per square meter. 24. Considering that the questionnaire was a complex one and that it remained 22. nPV (net Present Value) and iRR (internal Rate of Return) are well known open for answers for a short period the answer rate is satisfying and higher than economic indicators to evaluate investments. usual. ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY 255 Contents Keywords Authors
  • 8. 2-011 Di SanTo ET al PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES Figure 7. Energy manager answers to one of the questions raised within a recent FIRE survey. SSE=ESC, distributor=DSO. of them do not consider the scheme worth joining in. The most Critical aspects commonly provided reasons are: The WhC scheme has shown some critical issues, only partly • lack of interest due to an insufficient economic value; resolved by the latest measures issued by public authorities. Legislative decree 115/2008 opened the way for some substan- • complexity of the scheme; tial changes, but it was not transposed in a ministerial decree. • lack of an adequate knowledge of the WhC scheme; The government showed a renewed commitment to the scheme with the legislative decree 28/2011 related to the 2009/28/EC • size of actions below the scheme threshold; directive, so 2011 should be the year for a confrontation be- • lack of a dedicated call centre for queries about the scheme; tween institutions and stakeholders to identify the possible improvements. • lack of guidelines for monitoring plans evaluation and for The following issues could enhance this scheme if correctly simplified files; dealt with. • lack of interest in energy efficiency measures from their Presently only  25 simplified files have been published by company. AEEG26. Given that over 90 % of the presented projects cor- responds to this kind of actions, it goes without saying that this The first three points are linked together, and witness the fact is a limiting factor: many implemented projects that fall outside that the WhC scheme is not a strong incentive to implement the files are not asking for certificates. This is reflected by the energy efficiency actions. Besides, its complexity and the dif- very low number of applications submitted by companies with ficulty of getting information frighten many people more than energy managers (only two at the end of June 2010, to be com- the scheme deserves. pared with the over 2,000 companies and local authorities that • The reasons behind this result are the following: have an appointed energy manager). Information about the availability of WhC on the market and • Obliged distributors do not play a direct role in the im- their trading prices have improved thanks to recent measures plementation of energy efficiency measures (i.e. their only (e.g. bilateral market average prices are now published month- source of revenue is the tariff reimbursement); they do not ly), but this is still not enough to enable an investor to properly really care about the WhC scheme, even considering their manage the price risk and the best market strategies, both be- ESCOs25. cause of the low frequency of updates and of the lack of data. • Low incentives, together with the minimum threshold, the This represents an important limitation for a baseline and trade complexity of the scheme, and the lack of information, keep scheme. It would be useful to have a web page on the GME away many potential participants. website with real-time data. And it would not be difficult to achieve, considering that all the projects are presented via web. • The financial crisis does not help energy efficiency, at least The definition of the new rules on the reimbursement rate until energy prices remains low (which is not the recent for DSOs – indexed to the trend of the main energy carriers, trend). but not to the outcome of the market in the previous years - is another limit to the price of WhC, given the reluctance of DSOs to directly implement projects and to purchase certificates at a price greater than the refund. Having no longer profitable 26. The twenty files indicated in the list below and five engineering estimates: ChP, district heating, VSD for water pumping systems, natural gas decompression 25. for example EnEl Si and EnEl Sole for the EnEl group. systems, centralized heating and cooling for buildings. 256 ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY Contents Keywords Authors
  • 9. PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES 2-011 Di SanTo ET al projects like the fluorescent lamps to drive the supply side, takes into account the capability of the implemented actions considering the fast growing energy saving targets, represents to produce savings during its lifetime. The national target for an issue since WhC price is rising and the reimbursement is the 2006–2009 period has been totally fulfilled (and even ex- not. Thus, unless the reimbursement rule is reviewed to allow ceeded) by the obliged actors. For the second obligation pe- higher values, to increase the number of presented projects, riod, the obligation has been increased from 54 TWh cumac a simplification of the applications for monitoring plans, and up to 345 TWh cumac, with transport fuel suppliers added to possibly the reduction of the thresholds for projects dimension the energy suppliers as obliged actors. Compared to the Italian will become almost a requirement. scheme, the number of French files is much higher (currently, The possibility to introduce a minimum threshold for the there are about 200  files for 200  energy efficiency actions), price of WhC could also be considered, like the one used in the and covers almost all energy savings registered in the French Italian green certificate scheme, in order to shield participating scheme. Another method of calculation is admitted: specific companies from the risk of very low prices on the market (note field measures are presented to and evaluated by ADEME, and however that this is not a risk in the near future, because of the this aspect can be easily compared to the Italian monitoring lack of certificates expected for the 2011 obligation). plan evaluation method. Concerning additional savings, it is better to maintain them, It is worth noticing that not only these three schemes, but but it could be useful to simplify their evaluation in monitoring also the one set by Flemish government in the Belgian federa- plan projects, or at least to provide sectorial guidelines to help tion, created in 2003, have fulfilled their targets and are consid- proponents to identify them. ered cost effective, since the cost to save energy is lower than the cost of supply. The French scheme is more capable of pro- moting structural actions, since the savings are calculated on A Tee scheme to be generalised to all european the lifespan of the projects. This is an important point, together countries? with a simple procedure for approving new deemed savings Even if energy efficiency is usually considered the most cost- files. effective option to achieve emission reduction targets, it is well At EU level, the European Commission would like to create known that it needs some support both to implement long pay- a harmonized scheme, but since each country has already set back time actions and to overcome non economic barriers. For its own schemes, with different obliged actors, different fields of this reason, during the last decades, starting from the oil crisis action and also different energy units to calculate the savings, of the 70s, many policies have been adopted and many incen- it is almost impossible to start a new general scheme with com- tives used. mon rules. What can be done is the creation of an energy sav- At EU level, what has been achieved so far is not in line with ings obligation scheme in the framework of the Energy Services the energy efficiency goal of 20 % by 2020. Even if it is not man- Directive recast that will be done in the next months. Should datory, stronger efforts are needed and a new European En- this be agreed upon, the EU will provide a general framework, ergy Efficiency Action Plan (EEAP) has recently been adopted, while national schemes will remain in the member States’ together with new legislative proposals and energy directives responsibility. Two fundamental points that the European recasts. In 2013, the European Commission will provide an Commission wants to clarify are that savings must be “real” “assessment of the results obtained and whether (energy effi- and “measurable”. Qualitative energy efficiency improvement ciency) programs will, in combination, deliver the 20 % objec- measures should also be provided together with the completion tive”. In the case the EU target is unlikely to be achieved, “the of a competitive energy market where ESCos should be seen as Commission will propose legally binding national targets for the main boost. Moreover, consumer rights and consciousness 2020”. It means that the efforts required by the national energy must be strengthened (information, access to ESCo services, efficiency policies must be strengthened and more incentives demand side management) [14, 15]. need to be created. Among measures indicated in the EEAP, As alternatives, or complementary instruments to WhC, it is WhC are perhaps the most complex solution, and also a very possible to consider tax deduction schemes, guarantee funds, new one. In this chapter some European WhC schemes are incentive for interest28, and schemes that give a set incentive briefly compared, together with other type of policies. for every saved kWh or toe. Italy is planning to issue the sec- Table  3 shows some differences among the three WhC ond and the third schemes, in order to promote ESCOs and schemes used in the UK, France, and Italy. It is worth noticing small energy efficiency measures respectively. Considering the that all schemes have been able to fulfil their targets in the last emphasis that the EEAP puts on ESCos, guarantee funds and years. They differ in many aspects, but additional savings are incentive for interest can be a very effective solution. Energy a fundamental requirement for all three schemes (for further efficiency actions are usually cost effective, so it is important investigation we suggest [1]). to create the conditions for facilitating ESCos’ activities. Tax The French scheme, started in 2006, is the closest to the Ital- deduction is interesting especially when undeclared work is ian one. For measuring savings, standardized measure files widespread, because revenue generated by taxes paid by unde- have been defined, providing eligibility criteria and calculation clared labourers can help balance the cost of the policy for the methods for the most common measures. The energy unit to State budget. In Italy, the 55 % tax deduction, whose amount measure the realized energy savings is the kWh cumac27, which is distributed over five years (ten for projects implemented in 28. These are schemes that finance the interest rate given by banks, thus making 27. The word “Cumac” is a synthesis of the french words ”cumulé” and ”actual- convenient for third party financing and energy performance contracts. guarantee isé”, meaning added and discounted. funds have similar effects. ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY 257 Contents Keywords Authors
  • 10. 2-011 Di SanTo ET al PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES Table 3. Comparison among different white certificate schemes [14]. 2011), has been an outstanding success for building actions like demonstrates that the targets can be achieved with projects that solar thermal, double glazed windows, thermal insulation and at least in part are not really promoted by the scheme, and then high efficiency boilers. Another tax deduction scheme, 20 % for are not really “additional”30, even if they comply with the AEEG electric engines, has instead been a failure. This suggests that definition of additional savings (e.g. the household boilers ex- such schemes require a high level of incentive to be effective. ample previously shown). Besides, they can only be used by people with a tax debit, and In Italy the situation can be portrayed as a half full glass. The this is an important limit. scheme has worked well so far for some specific actions and has been able to achieve the mandatory targets. After the end of first phase, dominated by compact fluorescent lamps, it has Discussion and proposals become difficult to reach the targets. Recognizing this issue, The WhC scheme is a complex scheme, and therefore difficult schemes [14]. decree 3 March 2011 gives the possibility to the Table 3. Comparison among different white certificate the legislative and expensive to manage for the DSOs and voluntary parties. Ministry of Economic Development to increase the value of Therefore the role of AEEG and from now on of ENEA and the incentive – by allowing higher prices in the market through GSE29, both as regulator and facilitators, will be decisive for a revision of the DSOs reimbursement and/or by introducing its success. multipliers for the acknowledged savings based on the lifespan In fact, due to the issues indicated in this paper, it may be savings of different solutions31 –, and to allow the presentation questioned whether WhC schemes are useful and effective. It is of new projects to become simpler and cheaper. difficult to give a yes/no answer, since there is no experience of Up to now the Ministry of Economic Development has such a scheme at a maturity stage. Most of the indicated issues demonstrated to be able to overcome the main issues of the can be overcome by the right policy measures, so it is worth to schemes, so it is possible that the modifications that are going try at least some modifications. to be decided will improve the scheme. The first issue is how to judge whether it has been a success. The second issue is what are the goals of a WhC scheme. An important point is that the achievements of the scheme There are three possibilities. should be measured on the basis of the actions actually pro- moted and the contribution to the development of energy service companies and the energy efficiency market, not just to the fulfilment of the mandatory targets. The Italian experience 30. because whC do not affect the choice of the project proponent of implement- ing the project, as shown before in the document. 31. for example interventions on the building envelope or on district heating could 29. The recent legislative Decree 3 march 2011 n. 28 (adoption of the 2009/28/EC have a multiplier equal to three or four, since the savings will be generated for a directive) assigns to gSE (gestore dei Servizi Energetici) the role of managing the long time, whereas solutions such as lamps or stand-by systems will have one or white certificates projects platform that presently is managed by aEEg. less, since they won’t last more than five years. 258 ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY Contents Keywords Authors
  • 11. PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES 2-011 Di SanTo ET al Table 4. Deemed savings files. Deemed savings files Saving (10-3 Units needed to File Unit per toe Technology Unit toe/unit/year) reach 25 toe number min max min max max min 1-tris CFLs P <15W lamp 212 4.049 0 5 101.215 5.306 2 electric DHW boiler -> gas DHW boiler 1 boiler 14 14 73 73 342 342 3 4 stars boiler heating 1 boiler 11 71 14 92 1.786 272 heating and DHW 1 boiler 9 25 40 117 625 214 4 gas DHW boiler -> high efficiency gas DHW boiler 1 boiler 16 16 64 64 391 391 5 single glazed windows -> double glazed windows houses 1 m2 43 500 2 23 12.500 1.087 offices 1 m2 56 500 2 18 12.500 1.389 hospitals 1 m2 38 250 4 26 6.250 962 6 walls and roof insulation houses 1 m2 83 3.333 0 12 83.333 2.083 offices 1 m2 108 3.333 0 9 83.333 2.688 hospitals 1 m2 79 1.667 1 13 41.667 1.969 7 photovoltaic beta< 70° 1 kWp 3 4 240 346 104 72 beta> 70° 1 kWp 4 6 166 241 151 104 8-bis solar thermal collectors for DHW electric boiler substitution 1 m2 4 10 104 229 240 109 gas/oil boiler substitution 1 m2 7 16 61 134 410 187 district heating 1 m2 10 22 45 98 556 255 9 VSD electric engines for industrial pumping systems 1 turn industry 1 kW 12 42 24 83 1.042 301 2 turns industry 1 kW 6 20 49 166 508 151 3 turns industry 1 kW 3 11 95 319 265 78 seasonal industry 1 kW 11 38 27 90 940 278 11 high efficiency electric engines 1 turn industry 1 kW 37 294 3 27 7.353 936 2 turns industry 1 kW 19 149 7 53 3.731 469 3 turns industry 1 kW 10 77 13 102 1.923 245 seasonal industry 1 kW 35 270 4 29 6.757 868 13a-bis aerators and low flow shower taps residential sector 1 device 187 187 5 5 4.682 4.682 13b-bis low flow shower taps hotels electric boiler 1 device 60 60 17 17 1.488 1.488 gas/oil boilers 1 device 101 101 10 10 2.525 2.525 13c-bis low flow shower taps sport centers electric boiler 1 device 11 11 89 89 282 282 gas/oil boilers 1 device 19 19 53 53 476 476 15 air to air domestic heat pumps COP 3,0 apartment 6 59 17 166 1.471 151 COP 3,5 apartment 4 48 21 226 1.190 111 COP 4,0 apartment 4 40 25 272 1.000 92 COP 4,5 apartment 3 36 28 308 893 81 17 public lighting control systems 1 kW 4 14 70 234 357 107 18 MV public lighting lamps->HPS lamps 1 lamp 5 31 32 206 779 121 19 air conditioners < 12kWf 1 kWf 263 588 2 4 14.706 6.579 20 walls and roof insulation for cooling purposes 1 m2 1.250 5.000 0 1 125.000 31.250 23 led semaphoric lamps lamp (10 W) 14 40 25 74 998 339 24 led lamps for cemeteries lamp (0,5 W) 611 611 2 2 15.263 15.263 25a anti standby anti stand-by device 150 150 7 7 3.741 3.741 25b anti standby anti stand-by device 376 376 3 3 9.402 9.402 27 DHW electric heat pumps heat pump 9 15 68 111 368 225 • To achieve its mandatory targets. It could be easy or difficult In the second case, it is possible to consider the possibility of depending on how easy it is to present a project and evalu- using two different and additional schemes: WhC as a basis and ate the savings. It does not ensure an increase in energy ef- another instrument (e.g. a tax exemption, a guarantee fund, a ficiency, but can still be useful for the assessment of national fixed premium for toe scheme) dedicated to effectively promote savings. WhC’s price can be very low. specific energy efficiency measures. It could be something like the experience of the 55 % tax exemption in Italy. The advan- • To promote energy efficiency operators and professionals tage is that it is possible to maintain an almost pure baseline growth. Same as above, but with a higher WhC’s price, and and trade scheme, with the related cost-effective benefits, while it will add to savings assessment the capability of consist- having the opportunity to promote a rapid diffusion of some ently increasing the growth rate of ESCs and other actors. It technologies. is advisable to have easy procedures to present projects and The third case has the advantage, with respect to the previous to evaluate savings. one, of avoiding the complexity of dealing with cross-subsidies. • To stimulate the implementation of additional energy ef- It is though quite difficult to manage without the introduction ficiency projects. In this case, which will comprehend the of multipliers, which can compromise the cost-effectiveness of previous ones, the market price should be high enough to the scheme, or of a high market price32, both measures that can allow the WhC price/capital cost ratio to be well above 20 %. lead to speculative effects. Even in the hypothesis of a perfect In this case, it is advisable to have strict procedures for the policy design, able to assign the right multiplier to each tech- evaluation of savings, since the incentive value is strong. nology, the complexity of the system can become excessive and unmanageable. Considering the costs involved in the creation and manage- ment of a WhC scheme, the first case should not be taken into account, unless policy makers reckon it as very important in 32. in the italian scheme it means to set a higher value for the DSos’ reimburse- their country. ment. of course it would be very difficult to determine such a value. ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY 259 Contents Keywords Authors
  • 12. 2-011 Di SanTo ET al PanEl 2: CURREnT EnERgY EffiCiEnCY PoliCiES The last issue is that since the scheme is complex, it is cru- FIRE conference and workshop proceedings dedicated to cial to monitor its achievements, something that can be done white certificates (www.fire-italia.it/convegni.asp): through surveys and data analysis. Until now this issue has Convegno FIRE - Rimini - 4 novembre 2010 - Certificati been underestimated in Italy, as the importance of disseminat- bianchi: risultati e proposte di miglioramento ing proper information to stakeholders. Key Energy 2009 - Rimini - 29 ottobre 2009 - Certificati It will be interesting to see what the achievements of the bianchi: la partita si fa seria WhC scheme will be in the next 2–3 years. In the meantime, Hotel Universo - Roma - 22 aprile 2008 - Il nuovo sistema di countries that are going to start such a scheme should make incentivazione dell’efficienza energetica sure that they deal in an appropriate way with the illustrated Older workshops not listed here but available on the indicated issues and that they take into account a periodical review of the web page rules in order to overcome possible issues. AEEG’s annual reports about white certificates, www.autorita. energia.it/it/pubblicazioni_ee.htm GME’s monthly newsletters, www.mercatoelettrico.org/It/ list of deemed saving files Tools/newsletter.aspx Files no. 1-tris and no. 13b-bis and 13c-bis are no more active Concerted Action for the implementation of the 2006/32/EC since January 2011. directive, core theme number 3, information gathered through FIRE’s participation in working groups Energy Efficiency Plan 2011 - Communication from the useful links and references Commission to the European Parliament, the Council, the European Economic and Social Committee and the Com- lInKs of InsTITuTIons AnD AssoCIATIons relATeD To WhITe mittee and the Committee of the Regions, COM(2011) CerTIfICATes In ITAly 109/4 AEEG, Italian electricity and gas authority, www.autorita. “European Workshop on Experiences and Policies on Energy energia.it Saving Obligations and White Certificates” proceedings, GME, Italian energy market operator, www.mercatoelettrico. 27-28 January 2011, http://re.jrc.ec.europa.eu/energyef- org ficiency/events/WhC_Workshop.htm ENEA, Italian Agency for new technologies, energy and envi- “Tradable certificates for energy savings (white certificates) ronment, www.enea.it - theory and practice”, P. Bertoldi, S. Rezessy, 2006, Eu- RSE, Energy System Research center, www.rse-web.it ropean Commission Joint Research Centre, Institute for MSE, Ministry of Economic Development, www. Environment and Sustainability sviluppoeconomico.gov.it “Polices for increasing energy efficiency: Thirty years of expe- Federutility, Federation of DSOs, www.federutility.it rience in OECD countries”, H. Gellera, P. Harringtonb, A. Agesi, www.agesi.it, and Assoesco, www.assoesco.org, ESCos H. Rosenfeldc, S. Tanishimad, F. Unanderd, Energy Policy associations 34 (2006) 556–573 FIRE, Italian Federation for the rational use of energy, www. “What can we learn from tradable green certificate markets fire-italia.org for trading white certificates?”, R. Haas, N. Sagbauer, G. Resch, ECEEE 2009 Summer Study - Act! Innovate! referenCes Deliver! Reducing energy demand sustainably “Le ESCO in Italia”, a FIRE survey on ESCOs in Italy, 2008, “Energy company obligations to save energy in Italy, the UK www.fire-italia.it/indagini/2008-12_indagine_ESCO_re- and France: what have we learnt?”, N. Eyre, M. Pavan, L. port.pdf Bodineau, ECEEE 2009 Summer Study - Act! Innovate! “Indagine di monitoraggio della partecipazione al meccanis- Deliver! Reducing energy demand sustainably mo dei WhC”, a FIRE survey on WhC in Italy, 2009, www. IEA documentation and proceedings available fire-italia.it/indagini/WhC/WhC_1.asp through the web sites: www.ieadsm.org/ViewTask. “Indagine sul gradimento dei WhC tra gli energy manager”, aspx?ID=17&Task=14, www.ieadsm.org/Content. a FIRE survey in cooperation with ENEL on the energy aspx?ID=7#ancMilan managers participation in WhC in Italy, 2011, www.fire- Energie Plus, Maitriser l’energie durablement, Revue de italia.it/indagini/WhC_ENEL/WhC_ENEL.asp l’Association technique energie environnement, biweekly “Osservazioni sul meccanismo dei certificati bianchi e spunti newsletter and bimonthly insight, all numbers from 2007 per l’aggiornamento”, D. Di Santo, RdS, 2010, www.enea. to 2011 it/attivita_ricerca/energia/sistema_elettrico/Elettrotec- Ademe & Vous, Ademe international monthly magazine, all nologie/Report-elettrotecnologie.html numbers from 2007 to 2011 260 ECEEE 2011 SUMMER STUDY • EnERgY EffiCiEnCY fiRST: ThE foUnDaTion of a low-CaRbon SoCiETY Contents Keywords Authors