Energy efficiency obligation schemes (EEOs) are used in many EU countries as a policy measure to reach energy efficiency targets. Some of the first EEOs (UK, Italy, France, Denmark) have been capable to reach positive results over the years, as clearly demonstrated by the ENSPOL project. The Italian mechanism, in particular, is an interesting example of white certificate scheme (WhC), since it is one of the most long-lasting schemes (operatively started in 2005), has ambitious targets, covers all sectors and energy efficiency solutions, and has many flexibility options in place (e.g. non-obliged parties, tradable market, bankability, etc.). Another point of interest is Italian WhC development over the years. In the first phase, most of the projects were related to buildings with deemed savings as energy savings assessment method. Then the industrial sector rose constantly, till covering 80% of the savings in 2014, mostly assessed through metered savings procedures. In the last three years, the buildings sector has started to recover, while metered savings have remained the most used energy savings evaluation procedure. This last development is mainly due to some regulatory decision and to the modification of the assessment of additionality for many industrial projects categories. The paper will illustrate the reasons behind these developments, the issues that have arisen over the recent years, and the decisions taken to address them through a major redesign of the Italian scheme that has been introduced with new ministerial guidelines in 2017: many aspects – such as targets, base-line and additionality, saving assessment, and measurement, verification and control procedures – has been deeply affected. The presentation related to the paper presented at eceee industrial conference, covers such themes, focusing in particular on the industrial side and highlighting themes like cost effectiveness, energy savings assessment, and how baseline and additionality have been dealt with over the years.

1. White certificates as a
tool to promote energy
efficiency in industry
Dario Di Santo, FIRE
Berlin, 12 June 2018

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

3. X
FIRE: the association for energy efficiency
Some members of FIRE:
Sviluppo Sostenibile, Albapower S.p.A., Albasolar s.r.l., Alpiq Intec S.p.A., AMIA S.p.A.,
AMIAT S.p.A., Atlas Copco S.p.A., Avvenia s.r.l., Axpo Italia S.p.A., Azienda provinciale
per i servizi sanitari TN, Banca Mediolanum S.p.A., Banca Popolare di Sondrio, Beghelli
S.p.A., Berco S.p.A., Bit Energia s.r.l., Bosch Energy and Building Solutions Italy s.r.l.,
Brembo S.p.A., Cabot Italiana S.p.A., Carbotermo S.p.A., Carraro S.p.A., Carrefour
Italia S.p.A., Centria s.r.l., Comau S.p.A., Compagnia Generale Trattori S.p.A., Consul
System S.p.A., CPL Concordia soc. coop., Credito Emiliano S.p.A., CTI Energia e
Ambiente, DBA Progetti S.p.A., DNV GL Business Assurance Italia s.r.l., Edilvì S.p.A.,
Edison Energy Solutions S.p.A., Electrade S.p.A., Elettra - Sincrotrone Trieste S.p.A.,
Enarkè associati, Enel Energia S.p.A., Energhe S.p.A., Energika s.r.l., Energon Esco
s.r.l., Energy Saving s.r.l., Energy Team S.p.A., Engie Servizi S.p.A., ENI S.p.A., Estra
Clima s.r.l., Fedabo S.p.A., Fenice S.p.A., Ferrari S.p.A., Ferriere Nord S.p.A., Fiera
Milano S.p.A., Finco, Finstral AG S.p.A., Gewiss S.p.A., Gruppo Società Gas Rimini
S.p.A., Hera S.p.A., Hitachi Drives and Automation s.r.l., Holcim S.p.A., Ilsa S.p.A.,
Intesa Sanpaolo S.p.A., Iplom S.p.A., IRBM Science Park S.p.A., ISAB s.r.l., Italcementi
S.p.A., Italgas Reti S.p.A., Italgraniti Group S.p.A., Kairos s.r.l., Lidl Italia s.r.l., Loclain
s.r.l., Manutencoop Facility Management S.p.A., Marche Multiservizi S.p.A., Mater-
Biopolymer s.r.l., Mediamarket S.p.A., MM S.p.A., Montello S.p.A., Munksjo Italia S.p.A.,
NBI S.p.A., Pasta Zara S.p.A., Politecnico di Torino - Dip. di Energetica, Polynt S.p.A.,
Publiacqua S.p.A., Raffineria di Milazzo S.C. p. A., RAI - Radiotelevisione Italiana
S.p.A., Rete Ferroviaria Italiana S.p.A., Roquette Italia S.p.A., S.p.A. Egidio Galbani,
San Marco Bioenergie S.p.A., Sandoz Industrial Products S.p.A., Schneider Electric
S.p.A., SDA Express Courier S.p.A., Seaside s.r.l., Siena Ambiente S.p.A., Siram S.p.A.,
Solvay Energy Services s.r.l., Studio Botta, Tecno s.r.l., Thales Alenia Space Italia
S.p.A., Tholos s.r.l., Trenitalia S.p.A., Trenord s.r.l., Trentino Trasporti S.p.A., Turboden
s.r.l., Università di Genova - DITEN, Università Campus Biomedico, Università Cattolica
del Sacro Cuore, Wind Tre S.p.A., Yanmar R&D Europe s.r.l., Yousave S.p.A.
Our membership include organisations and
professionals both from the supply and the demand
side of energy efficiency services and solutions.
Other 450 members, almost equally
divided between organisations and
professional.

4. X
4
FIRE: the association for energy efficiency
Besides being involved in many European
projects, listed next, FIRE implement surveys
and market studies on energy related topics,
information and dissemination campaigns,
and advanced training.
Some of FIRE clients over the years: Ministry
of Environment, ENEA, GSE, RSE, large
organizations (such as Centria, ENEL, Ferrovie
dello Stato, FIAT, Finmeccanica, Galbani, H3G,
Poste Italiane, Telecom Italia, Unioncamere),
universities, associations, energy agencies
and exhibition organizers.
www.fire-italia.org
On-going and just completed EU projects:

5. The scheme basics: EEO + WhC trade
5
Demand
WhC is an EEO
DSOs have to meet
energy saving
targets
Certificates can be
traded on the market
Voluntary parties (small
DSOs, ESCOs and
companies with energy
management expert or
EnMS) can also obtain
certificates
Supply
WhC is partly an
incentive
1 WhC = 1
addi*onal toe
All sectors and all
energy efficiency
projects are
allowed.
Source: FIRE.
The Italian scheme is an EEO scheme with many flexibility options
(voluntary parties, exchange market, possibility for DSOs to achieve
60% of target to be recovered in the next 2 years, etc.).

6. Some base points under 2017 guidelines
6
Energy savings evaluation methods:
Standard projects (SP – a mix of deemed savings and metered savings). Savings are
calculated based both on the installed units and the measurements done on a
statistically representative sample.
Monitoring plans projects (MPP – a type of metered savings). Savings are measured
according to an algorithm and a set of meters (both for energy consumption and
adjustment factors). With the new guidelines additional requirements were introduced
for the consumption baseline that has to be based on meters capable of at least daily
measures of the savings and on recorded data for at least one year.
WhC lifetime:
With previous guidelines: 5 years with tau coefficient.

7. Additionality
7
0
20
40
60
80
100
120
Ex-ante baseline Adjusted baseline Market-adjusted
baseline
Standard-adjusted
baseline
Ex-post consumption
Energy consumption baselines and energy savings
Additional energy savings
Source: FIRE.
Non-additional energy savings
Steps:
evaluation of ex-ante
baseline through 1-year
measurements;
a d j u s t e d b a s e l i n e
(production, climate,
occupation, etc.), which
can be higher or lower
than ex-ante baseline;
evaluation of market
(average of actual market
offer) and standard
(minimum legislative
requirements) adjusted
baselines;
definition of additional
savings.
Activity to be done on a
per-project basis.
C l e a r l y a r e s t r i c t i v e
definition of additionality.

8. The path from projects to WhC
8
Main points:
Proposals should be submitted before starting with the project
implementation;
At least 12 months of measurement for the ex-ante baseline are
needed;
GSE controls both SPs and MPPs (project proposals) and request of
certification (RCs - reports of savings).

9. WhC and EED art. 7 targets
9
0,0
5,0
10,0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
White certificates targets and achievements
(updated at the end of May 2018)
Target (million WhC) Updated targets (million WhC) Issued WhC 31/5-1/6 (million WhC) Savings (Mtoe)
FIRE on GME data.
Italian notification on EED art. 7:
25.8 Mtoe cumulated. In 2017
4.2 Mtoe cumulated delivered
through WhC (56%).
Two points to be noticed:
the growing residual target,
l i n k e d t o t h e u s e o f
flexibility from DSOs due to
insufficient supply;
the stagnating additional
energy savings (mainly due
t o e v o l v i n g r u l e s o n
eligibility and additionality).

10. WhC price over time
10
0
100
200
300
400
500
07/03/0607/06/0607/09/06
07/12/06
07/03/0707/06/0707/09/07
07/12/07
07/03/0807/06/0807/09/08
07/12/08
07/03/0907/06/0907/09/09
07/12/09
07/03/1007/06/1007/09/10
07/12/10
07/03/1107/06/1107/09/11
07/12/11
07/03/1207/06/1207/09/12
07/12/12
07/03/1307/06/1307/09/13
07/12/13
07/03/1407/06/1407/09/14
07/12/14
07/03/1507/06/1507/09/15
07/12/15
07/03/1607/06/1607/09/16
07/12/16
07/03/1707/06/1707/09/17
07/12/17
07/03/18
WhC'sprice(Euro/certificate)
Market session data
WhC market price trend
"May 31st session" "DSO's reimbursement" "Other fuels savings"
"Gas savings" "Electricity savings"
Source: FIRE evaluation based on GME data
Important points on market:
r e i m b u r s e m e n t f o r
obliged DSOs based on
previous year weighted
average market price;
three critical price periods
o v e r t i m e s h o w i n g
intrinsic instability.
1
2
3
Some changes:
no more tau coefficient;
l o nge r W hC l i f e t i me
( p e r i o d o v e r w h i c h
certificates are issued
b a s e d o n m e a s u r e d
savings).
With the new rules less
certificated per saved toe
(from 3,340 toe per
project to 277).

11. The growth of the industrial sector
11

12. Industrial projects in 2017
12
MPP approach played a
positive role. Even if it
requires the proponent to deal
with complex issues, like
adjusted consumption baseline,
r e l i a b l e m o n i t o r i n g a n d
verification, additionality, etc.,
it also brings flexibility and
e n s u r e s a n a c c u r a t e
a s s e s s m e n t o f e n e r g y
savings. Frauds are difficult.
The approach based on metered savings and reliable M&V procedures produced two other
benefits: a) it improved the know-how and skills of end-users, ESCOs and other market
operators, leading to an improved capacity of the market to find and propose energy
efficiency measures integrated with manufacturing processes, and b) offered to the
management bodies (GSE, ENEA, and RSE) a lot of data on industrial processes and their
usage and transformation.
The existence of the WhC scheme created a more favourable environment for energy
efficiency in enterprises: top managers understood the value of energy efficiency
improvements by exploiting WhC.
The prominent role of industrial projects was recognised in the two national strategies
issued in 2013 and 2017 (Ministerial Decree 8 March 2013 and Ministerial Decree 10
November 2017) that require to improve the WhC scheme especially toward the industrial
sector.

13. The value of rich data: EU-MERCI
The EU-MERCI project is dedicated to
the sharing of good energy efficiency
practices in the industrial sector.
The availability of huge data for
energy efficiency projects in the Italian
scheme, compared with other ones
from AT, PL, and UK, demonstrated
the added value of detailed proposals.
From 2017 the EU-MERCI good
practices repository is available.
13
www.eumerci.eu

14. Main results
14
Around 48 million WhC issued and 26 Mtoe delivered
by 2017;
ESCOs have been the main actor in presenting
projects both in terms of proposals (96%) and of toe
(70%, whereas 25% come from end-user companies
and 5% from DSOs);
≈60% of those savings have been metered and ≈57%
have been linked to monitoring plan projects;
Lot of data achieved through MPPs leading to a huge
and detailed projects’ database, even if some data are
not easy to categorise;
Capability to promote industrial energy efficiency
projects linked to manufacturing process
improvements;
Success in dealing with a growing proposals trend
(11,709 CRs presented in 2016 and 815 MPPs VS
≈150 in 2007 and ≈550 in 2012).
Over 12 years of working time (it’s the longer-life
scheme for energy efficiency available in Italy).

15. Main issues
15
Low materiality for industrial projects till 2013;
Over incentivising for some industrial projects initially
managed by modifying eligibility criteria, then by
changing additionality on-the-run (not good…), then
again through eligibility;
Consumption baseline requirements and proposals
deadline are quite strict with 2017 guidelines;
Additionality integrated in the scheme and evaluated
on a per-project basis is difficult to manage, especially
for industrial project, less standardised than buildings
and transport ones;
Complexity improves projects quality and qualifies
operators, but needs support in terms of information
and training;
Target setting is difficult and requires caution and/or
strong flexibility in place;
WhC market is theoretically a good concept, but
practically too inelastic to work outside equilibrium
Frauds can be a real issue with standardised projects.

16. Conclusion
16
The Italian scheme faced in twelve years of activity
many issues. Some of them were solved, others were
unexpectedly created.
The scheme has succeeded in producing interesting
results in terms of capability to reach important
targets, covering a wide variety of sectors and
technologies, and in spreading the know-how of
industrial energy efficiency solutions among ESCOs
and practitioners.
In particular, the large quota of industrial projects is
an interesting aspect at international level and a lot
of experience has been gathered in terms of adopted
solutions and trends in various industrial subsectors.
The consumption baseline and the additionality in
the industrial sector could provide much information
to policy makers interested in implementing effective
schemes in the industrial sector.
Sufficient time and resources should be devoted to
the scheme management and improvement.

17. Thank you!
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