Workshop: The future of the Energy Efficiency Directive 18 July - - PowerPoint PPT Presentation

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Workshop: The future of the Energy Efficiency Directive 18 July - - PowerPoint PPT Presentation

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Workshop: The future of the Energy Efficiency Directive 18 July 2016, Slovak Permanent Representation to the EU, Brussels A workshop supported by the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety.

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Workshop:

The future of the Energy Efficiency Directive

A workshop supported by the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety.

18 July 2016, Slovak Permanent Representation to the EU, Brussels

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A workshop supported by the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety.

9:30

  • Welcome. Marian Husarik, Head of Energy Unit, Permanent Representation of

Slovakia 9:40 Introductions and expectations. Moderated by Stefan Scheuer, The Coalition for Energy Savings 10:00 Setting the scene  Findings on the implementation of Article 7 resulting from studies commissioned by the European Parliament and Commission, Jan Rosenow, Consultant and Researcher  Different policy options on Article 7 and impacts on energy savings, Frances Bean, The Coalition for Energy Savings 11:00 Coffee break 11:20 Open discussion. Moderated by Stefan Scheuer, The Coalition for Energy Savings 12:20 Closing remarks. Marian Husarik, Head of Energy Unit, Permanent Representation of Slovakia 12:30 Lunch

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Introductions and expectations

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Expectations Objective of the workshop is to foster a well informed revision of the EED, focus on Article 7 Therefore we provide

  • Findings and views on the EED implementation by an

independent expert

  • Illustration of the impact of EED issues on the delivery
  • Stakeholder perspectives and expertise

From participants we expect

  • Active contribution
  • Open exchange of experiences and ideas on the way forward

Chatham-House-Rule applies

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Who we are

  • 31 industry, NGO, consumers, workers, professional and local authorities

associations

  • 500 associations, 200 companies
  • 2 million workers, 15 million supporters
  • 2,500 cities and towns in 30 countries in Europe

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Advisory members:

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Energy Efficiency Directive in motion

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Driving savings beyond 2020

  • Article 7

Tapping the cost-effective potential

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Energy efficiency first An abiding motto and guiding principle

  • To treat energy efficiency as an energy source on its own

right

  • To prioritise energy efficiency where it is cost-effective,

considering its multiple benefits

  • To remove a systemic bias for increasing supply

How? Examples

  • Energy and climate plans
  • Internal Energy Market Design
  • State aid exemptions & Eurostat rules on public debt and

deficit

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Implementation of Article 7 so far – what do we know?

Workshop on the future of the Energy Efficiency Directive

Dr Jan Rosenow

Senior Associate, Regulatory Assistance Project Senior Research Fellow, Sussex University Honorary Research Fellow, Oxford University

Brussels, July 18, 2016

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Evidence base: 3 major studies for European Parliament and European Commission

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Presentation Outline

  • 1. What is Article 7?
  • 2. How have Member States responded?
  • 3. Critical evaluation
  • 4. Conclusions
  • 5. Further reading

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  • 1. What is Article 7?

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What is Article 7?

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Target: 1.5% of final energy sales per annum; i.e. 10.5% in 2020 BUT: after exclusions and exemptions: only ~0.75% Policy instruments: choice between Energy Efficiency Obligations (EEOs) and alternative measures or a combination Monitoring & Verification: detailed requirements including statistically representative sample, audit protocols, independence etc. (Annex V) Calculation method: detailed requirements to account for additionality, materiality, double counting etc. (Annex V)

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Future developments

  • ongoing: major review of Article 7,

amendments to be published in early October 2016

  • at the same time review of Energy

Performance in Buildings Directive (EPBD) which drives building codes in Europe

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  • 2. How have Member States responded?

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How have Member States responded?

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>7,000 pages of plans submitted to the European Commission 479 policy instruments planned

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Targets –exclusions lower the sum of all targets by 1/3

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Source: Rosenow and Fawcett (2016)

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Targets –exemptions lower the sum of all targets by 24%

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Source: Rosenow and Fawcett (2016)

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Number of policy instruments

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Source: Rosenow and Fawcett (2016)

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Significant policy heterogeneity across Member States – alternative measures

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2 2 1 1 1 2 1 4 2 1 1 2 3 1 4 4 8 2 5 8 6 14 1 11 14 16 7 21 14 4 2 2 3 1 1 6 19 4 1 2 3 5 2 4 4 7 1 5 3 3 3 2 3 3 1 1 1 4 1 3 1 1 1 3 2 1 1 4 2 1 1 1 1 1 1 1 1 1 1 1 44 14 6

  • 8. Other measures
  • 7. National Energy

Efficiency Funds

  • 6. Training and education

programmes

  • 5. Energy labelling schemes
  • 4. Standards and norms for

efficiency products (beyond existing EU legislation)

  • 3. Regulations or voluntary

agreements

  • 2. Financing/ fiscal

schemes

  • 1. Energy/CO2 taxes

*Lack of information about certain measures ** Lack of information about the majority of the measures for those countries

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Share of expected savings by policy instrument type [ktoe]

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Source: Rosenow and Fawcett (2016)

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0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

  • 3. Alternatives
  • 2. EEOs No White

Certificates

  • 1. EEOs White

Certificates <65% EEO contribution >40% Less than <40% EEO share

Note: some of these figures may have been updated in later plans

11 out of 16 EEOs in the EU are new, many of them to deliver significant savings

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Share of savings by sector

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Source: Rosenow and Fawcett (2016)

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Examples of innovative policy instruments

  • German Energy Efficiency Tender:

started in June 2016, 300 million Euro over 2016-18

  • UK Green Deal: on-bill financing

mechanism; UK government stopped funding in 2015

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  • 3. Critical evaluation

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Expected savings compared to expectations

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Source: Rosenow and Fawcett (2016)

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Rules to ensure credibility of savings

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Rule Description Eligibility policy measures that are primarily intended to support policy objectives other than energy efficiency are excluded Additionality

  • nly savings achieved in addition to existing

EU-wide standards can be counted Materiality any financial contributions needs to be significant enough in order to realistically trigger the investment decision Double counting

  • verlap between policy instruments needs to

be accounted for

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Credibility of savings – only 14% of all savings fully compliant

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Source: Rosenow and Fawcett (2016)

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  • 4. Suggestions for policy reform

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Selected suggestions for policy reform

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Problem area Current issues Potential solutions Additionality difficult to calculate and prove, particularly with regard to EPBD simplify rules e.g. allow all renovations to count fully but none of the savings from new buildings M&V inconsistent approach to M&V leads to considerable uncertainties improve guidance and Annex V, develop high level principles at EU level Reporting significant differences in quality and quantity of reporting develop reporting template

Source: Regulatory Assistance Project (2016)

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  • 5. Conclusions

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Conclusions

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1) Article 7 is a complex and ambitious piece of legislation. 2) Policy evaluation is very challenging, due to: heterogeneity of policies, amount of documentation (over 7,000 pages to date, and rising), and lack of standard reporting formats. 3) Member States should be on course to deliver savings close to those envisaged, if the ‘paper’ savings materialise in real life. 4) Current legal framework led in some cases to unintended interpretations. 5) There are considerable uncertainties around the reliability of energy savings estimates. Lack of additionality and the risk of non- delivery are key concerns. 6) M&V major challenge going forward.

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  • 6. Further reading

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Further reading

  • Rosenow, J., Fawcett, T., Leguijt, C., Pató, Z. (2016): Evaluating the

Implementation of Article 7 of the Energy Efficiency Directive. IEPPEC conference, Amsterdam, 7-9 June 2016

  • Regulatory Assistance Project (2016): Toolkit for Energy Efficiency

Obligations

  • ENSPOL (2015): Report on existing and planned EEOs in the EU – Part

I: Evaluation of existing schemes

  • Fawcett, T., Rosenow, J. (2016): The Member States’ plans and

achievements towards the implementation of Article 7 of the Energy Efficiency Directive. Report for European Parliament

  • Rosenow, J., Forster, D., Kampman, B., Leguijt, C., Pato, Z., Kaar, A.-L.,

Eyre, N. (2015): Study evaluating the national policy measures and methodologies to implement Article 7 of the Energy Efficiency Directive. Study for the European Commission

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Thank you for your attention

Dr Jan Rosenow email: jrosenow@raponline.org web: eng.janrosenow.com

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Setting the scene

Enlightening Article 7 Frances Bean

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Study commissioned by Climate Action Network Europe

Impact on energy savings

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Recommendations To strengthen the objective of Article:

  • Remove the 2020 sunset clause to

Boost investor and industry certainty;

Foster long-term high quality measures; and

Unleash energy efficiency markets.

  • Remove obscure and obsolete target reductions to

Prevent the target from being reduced; and

Deliver at least 1.5% savings per year.

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Recommendations To improve the delivery of real savings and enforcement:

  • Ensure that only Eurostat data is used as the reference to

Improve compliance; and

Secure coherence and reliability of energy statistics.

  • Clarify that eligible measures must have the primary
  • bjective or stated intention of increasing end use energy

efficiency to

Foster dedicated and effective policies;

Avoid diluting the objective of energy savings; and

Uphold the principle of energy efficiency first.

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Recommendations To improve the delivery of real savings and enforcement:

  • Put in place proper reporting, monitoring and verification

systems to

Avoid exaggerated savings; and

Tackle free-riders and double counting.

  • Clarify and enforce the additionality of national actions to

Remove uncertainty; and

Add value to EU minimum requirements.

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Contact

The Coalition for Energy Savings Rue de Toulouse 49, 1040 Brussels, BELGIUM secretariat[at]energycoalition.eu www.energycoalition.eu @Euenergysavings AISBL Reg Nr: 644.403.860 Transparency Register: 72911566925-69

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Workshop:

The future of the Energy Efficiency Directive

A workshop supported by the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety.

18 July 2016, Slovak Permanent Representation to the EU, Brussels