Consideration about incentives in Italy and energy efficiency
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Transcript of Consideration about incentives in Italy and energy efficiency
Dario Di SantoDirettore FIRE
TEE e incentivi in Italia e in Europa
www.fire-italia.org
The Italian Federation for the Rational use of Energy is a no-profit association that promotes energy efficiency, supporting energy manager, ESCos and other companies dealing with energy.
Besides the activities directed to its nearly 500 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
www.fire-italia.org
EGE certification Energy Management Experts
UNI CEI 11339
www.secem.eu Gestione Energia magazine
www.fire-italia.org
FIRE activities and projects
3
www.hreii.eu/demo www.enforce-een.eu
www.ener-supply.eu
www.soltec-project.eu
www.esd-ca.eu
Among closed projects:- www.e-quem.enea.it - www.eu-greenlight.org- www.enerbuilding.eu- Eurocontract- ST-Esco
Besides to dedicated meetings, FIRE organises the Enermanagement conference, workshops, and training courses. It implements dissemination campaigns, surveys, market analysis and studies. Among the subjects with which FIRE has cooperated there are ENEA, GSE, RSE, large companies, universities, associations, agencies and trade fairs organizers.
www.fire-italia.org
Incentives
White certificates
Conclusions
Incentives: when and how
Source: IEA 2010.
4
50 EXECUTIVE SUMMARY
Technology policy
Many of the most promising low-carbon technologies currently have higher costs than the fossil-fuel incumbents. It is only through technology learning from research, development, demonstration and deployment (RDD&D) that these costs can be reduced and the technologies become economic. Thus, governments and industry need to pursue energy technology innovation through a number of parallel and interrelated pathways. Most new technologies will require, at some stage, both the “push” of RD&D and the “pull” of market deployment.
The role of governments in developing effective technology policy is crucial: policy establishes a solid foundation and framework on which other stakeholders, including industry, can build. Where appropriate, policies will need to span the entire spectrum of RDD&D. In this way, governments can reduce the risk for other actors in the early phases of technology development and then gradually expose the technology to greater competition, while allowing participants to realise reasonable returns on their investments as a low-carbon economy takes hold.
Governments will need to intervene on an unprecedented level in the next decade to avoid the lock-in of high-emitting, inefficient technologies. They must take
Figure ES.2 � Policies for supporting low-carbon technologies
Mar
ketd
eplo
ymen
t
2. Stable, technology-specific incentives
1. Technology developmentand demonstration
Prototype and demo stage( fuel cells, 2 generation
biofuels, electric vehicles, CCS)e.g. nd
High cost gap(solar CSP, solar PV,
hybrid vehicles)
Low cost gap(onshore wind, biomasspower in some markets)
Mature technology(energy efficiency,industrial CHP)
Green certificates, GHG trading
Feed-in tariffs, tax credits, loan guarantees
Building codes, efficiencystandards, information campaigns
1. Developmentand infrastructure
planning
RD&D financing,capital cost support
for large-scaledemonstration
3. Technology-neutralbut declining support
4. Accelerate adoption byaddressing market barriers
Time
4. Mass market3. Achieving
competitiveness2. Niche markets
Note: The figure includes generalised technology classifications; in most cases, technologies will fall in more than one category at any given time.
Key point
Government support policies need to be appropriately tailored to the stage(s) of development of a technology.
�����������
WhC White certificates
65% fiscal deduction(until 31 December 2013 or 30 June 2014)
www.fire-italia.org
Incentives
White certificates
Conclusions
Incentives in Italy
Energy efficiency Thermal renewables Electrical renewables
RES incentives(D.M. 6 luglio 2012)
Conto energia termico(D.M. 28 dicembre 2012)
Other options (Elena, Jessica, EEEF, structural funds, local incentives, etc.)
CHP-DH
5
Source: FIRE.
!"!!!!
!5.000!!
!10.000!!
!15.000!!
!20.000!!
!25.000!!
2005! 2006! 2007! 2008! 2009! 2010! 2011! 2012! 2013! 2014! 2015! 2016! 2017! 2018! 2019! 2020!
Na#onal'energy'efficiency'targets'and'WhC'targets'
Na0onal!targets! WhC!targets!
Fonte:!elaborazioni!FIRE!
www.fire-italia.org
Incentives
White certificates
Conclusions
WhC and 20-20-20 Programme
WhC play an important role within the Italian 2020 target strategy.
Italian 2010 RES Plan target in 2020
2006/32/EC directive EE target in 2016Mto
e
Yearly increment in the range 0,4-1,6 Mtoe
www.fire-italia.org
Incentives
White certificates
Conclusions
7
AEEG asks for WhC
Energy savings
End-user
GME
AEEG
WhC obliteration
Distributor
Authorises WhC emission
Tranfers WhC
1st step obtaining WhC
2nd step: target complaiance
Voluntary parties: companies connected with obliged DSOs, small distributors, SSE and ESCOs, large consumers with appointed energy manager
Voluntary player
Voluntary company
GME market
WhC trading
Direct contracting (OTC)
Italian white certificates scheme (voluntary parties)WhC flows
cash flows
relations between parties
project implementation agreement
ENEA
WhC project evaluation
Source: FIRE.
www.fire-italia.org
Incentives
White certificates
Conclusions
The shift towards the industrial projects Rapporto GSE febbraio 2013 - luglio 2013
1.964
Titoli rilasciati per RVC analitiche
Titoli rilasciati per RVC standard
Titoli rilasciati per RVC a consuntivo
TEE rilasciati per metodi di valutazione, di cui alle Linee Guida dell'AutoritàDati in kTEE
2.122
2.122
TEE totali certificati dal GSE
TEE suddivisi per meto di di valutazione
TEE rilasciati [kTEE]
RVC standard 65
RVC analitiche 93
RVC a consuntivo 1.964
Principali categorie di intervento
TEE emessi [TEE]
IND-T 1.227.925
IND-FF 449.488
IND-GEN 138.841
IND-E 89.445
CIV-T 104.471
CIV-FC 48.389
IPRIV-NEW 14.365
Altro 49.467
1.964
Titoli rilasciati per RVC analitiche
Titoli rilasciati per RVC standard
Titoli rilasciati per RVC a consuntivo
TEE rilasciati per metodi di valutazione, di cui alle Linee Guida dell'AutoritàDati in kTEE
2.122
2.122
TEE totali certificati dal GSE
TEE suddivisi per meto di di valutazione
TEE rilasciati [kTEE]
RVC standard 65
RVC analitiche 93
RVC a consuntivo 1.964
Principali categorie di intervento
TEE emessi [TEE]
IND-T 1.227.925
IND-FF 449.488
IND-GEN 138.841
IND-E 89.445
CIV-T 104.471
CIV-FC 48.389
IPRIV-NEW 14.365
Altro 49.467
90% of new projects are in
industry
STEEL%METALLURGICAL%
38%%
PETROCHEMICAL%PHARMACEUTICAL%
CHEMISTRY%16%%
BUILDING%MATERIALS%
12%%
AGRO:FOOD%7%%
ENERGY%/%SERVICES%/%WASTE%TREATMENT%
7%%
RESIDENTIAL%COMMERCIAL%
6%%
GLASS%4%%
PAPER%AND%PRINTING%
3%%ICT%2%%
AUTOMOTIVE%MECHANICS%
2%%
WOOD%2%%
TEXTILE%AND%TANNING%1%%
STEEL%METALLURGICAL%9%%
PETROCHEMICAL%PHARMACEUTICAL%
CHEMISTRY%17%%
BUILDING%MATERIALS%14%%
AGRO9FOOD%13%%
ENERGY%/%SERVICES%/%WASTE%TREATMENT%
7%%
RESIDENTIAL%COMMERCIAL%
17%%
GLASS%4%%
PAPER%AND%PRINTING%4%%
ICT%3%%
AUTOMOTIVE%MECHANICS%
6%%
WOOD%2%%
TEXTILE%AND%TANNING%4%%
www.fire-italia.org
Incentives
White certificates
Conclusions
WhC breakdown: PPPM (above) and WhC (below)
Source: FIRE commissioned by ENEA.
0"
10"
20"
30"
40"
50"
60"
70"
80"
90"
100"
110"
120"
07/03/2006"
16/05/2006"
25/07/2006"
24/10/2006"
16/01/2007"
27/03/2007"
05/06/2007"
28/08/2007"
06/11/2007"
29/01/2008"
08/04/2008"
17/06/2008"
09/09/2008"
18/11/2008"
17/02/2009"
28/04/2009"
01/07/2009"
22/09/2009"
01/12/2009"
02/03/2010"
11/05/2010"
20/07/2010"
19/10/2010"
11/01/2011"
22/03/2011"
31/05/2011"
30/08/2011"
15/11/2011"
07/02/2012"
17/04/2012"
31/05/2012"
07/08/2012"
06/11/2012"
05/02/2013"
16/04/2013"
25/06/2013"
17/09/2013"
WhC
's&price&(Euro)&
Market&session&data&
WhC&price&trend&
"May"31st"session"" "DSO's"reimbursement"" "Type"III"" "Type"II"" "Type"I""
Source:"FIRE"evaluaIon"based"on"AEEG"and"GME"data"
www.fire-italia.org
Incentives
White certificates
Conclusions
10
Price trends
Source: FIRE.
WhC oversupply
WhC shortage
www.fire-italia.org
Incentives
White certificates
Conclusions
11
Issued certificates VS targets
In the first phase there has been an excess of WhC on the market. Then it came a change that has taken the market on the opposite situation. The main drivers of these changes have been: CFL and other deemed saving files no more available, the completion of the 5 years cycle for the first projects, the introduction of the tau coefficient, the rapid growth of monitoring plans for industrial projects since 2012.In the future the limitation to “new” projects for monitoring plans and the information campaign from ENEA will play a role on the equilibrium between supply and demand.
!40%%
!20%%
0%%
20%%
40%%
60%%
80%%
100%%
!4.000%%
!2.000%%
%!%%%%
%2.000%%
%4.000%%
%6.000%%
%8.000%%
%10.000%%
2005% 2006% 2007% 2008% 2009% 2010% 2011% 2012% 2013% 2014% 2015% 2016%
%"
ktoe
"
Italian"WhC"targets"and"results"(data"updated"to"30"September"2013)"
Primary%energy%saving%targets%(ktoe)% Issued%WhC%from%June%1st%to%May%31st%(ktoe)%
Eccess%%or%missing%WhC%(ktoe)% (issuedWhC!targetWhC)/targetWhC%(%)%
Source:%FIRE%based%on%AEEG%and%GME%data%
www.fire-italia.org
Incentives
White certificates
Conclusions
EEOs around the world Source: IEA Best Practices in Designing and Implementing Energy Efficiency Obligation Schemes 2012.
12
118
Best Practices in Designing and Implementing Energy E!ciency Obligation Schemes
Design Parameter Denmark France Italy
Policy Objectives
Legal Authority
Fuel Coverage
Sector and Facility Coverage
Energy Saving Target
Sub-targets and Portfolio Requirements
Obligated Parties
Compliance Regime
Penalty
Performance Incentives
Eligible Energy Savings
Eligible Energy Efficiency Measures
Measurement, Verification, and Reporting
Trading of Energy Savings
Funding
To decrease total energy consump-tion by 2% in 2012 and 4% in 2020
Voluntary agreements by obligated parties within a legislative framework
Electricity, natural gas, district heating; and heating oil
Residential, public, private business, and energy-intensive industry end-users
2.95 PJ for 2006-2009 (0.7% of consumption); 6.1 PJ for 2010-2012 (1.2% of consumption)
None
Distributors of electricity, natural gas, district heating, and heating oil
Energy savings must be well documented and they must be verifiable by an independent party
EUR 0.1 per kWh of shortfall; pos-sibility for distributor to lose license
Weighting factors for longer lifetime energy efficiency measures
Distributors must engage third parties to achieve energy savings within own or any other energy type except for transport
Many types, including energy audits, targeted information, subsidies for efficient appliances and equipment; also small scale renewables
Distributors verify and report savings; can be calculated or deemed savings
Energy savings may only be traded among obligated energy distributors
Cost recovery through tariffs
To realise the available potential of energy efficiency in France
Combination of legislation and regulation
All fuels, including district heating and cooling and transport fuels
Residential and commercial buildings, manufacturing industries, networked industries, transport, and agriculture
54 TWh cumac for July 2006 to June 2009; 345 TWh cumac for January 2011 to December 2013
90 TWh cumac for transport fuels
Energy retailers that sell the covered fuels to end consumers
Surrender of energy efficiency certificates; banking is allowed for up to nine years
EUR 0.02/kWh lifetime final energy shortfall
None
Savings can be produced by obligated parties, local authorities, and social housing landlords
Standardised and non-standardised measures plus contributions to programmes targeting fuel poverty, education, or innovation
Deemed savings for standardised measures; regulatory approval required for others
Over-the-counter trading of energy efficiency certificates
Cost recovery through tariffs is possible but has yet to be allowed
To serve as the primary driver for end-use energy efficiency
Combination of legislation and Ministerial Decrees
Electricity and natural gas
All sectors including transport, and all end-uses including small-scale co-generation and photovoltaics
2.2 Mtoe cumulative in 2008; increasing to 6.0 Mtoe cumulative in 2012
None
Distributors of electricity and natural gas
Surrender of energy efficiency certificates; one-year grace period before penalty is assessed if at least 60% of target is met
EUR 25,000 to 155 million assessed on case-by-case basis
Possible 5% premium over achieved savings
Savings can be produced by obligated distributors and accredited energy service providers
Preapproved list of measures with deemed energy saving values plus other measures assessed on a case-by-case basis
Deemed savings, partial on-field measurement, or measures subject to preapproval
Trade of energy efficiency certificates through over-the-counter market or spot market
Fixed contribution to cost recovery through a tariff contribution; transport measures not eligible for cost recovery
118
Best Practices in Designing and Implementing Energy E!ciency Obligation Schemes
Design Parameter Denmark France Italy
Policy Objectives
Legal Authority
Fuel Coverage
Sector and Facility Coverage
Energy Saving Target
Sub-targets and Portfolio Requirements
Obligated Parties
Compliance Regime
Penalty
Performance Incentives
Eligible Energy Savings
Eligible Energy Efficiency Measures
Measurement, Verification, and Reporting
Trading of Energy Savings
Funding
To decrease total energy consump-tion by 2% in 2012 and 4% in 2020
Voluntary agreements by obligated parties within a legislative framework
Electricity, natural gas, district heating; and heating oil
Residential, public, private business, and energy-intensive industry end-users
2.95 PJ for 2006-2009 (0.7% of consumption); 6.1 PJ for 2010-2012 (1.2% of consumption)
None
Distributors of electricity, natural gas, district heating, and heating oil
Energy savings must be well documented and they must be verifiable by an independent party
EUR 0.1 per kWh of shortfall; pos-sibility for distributor to lose license
Weighting factors for longer lifetime energy efficiency measures
Distributors must engage third parties to achieve energy savings within own or any other energy type except for transport
Many types, including energy audits, targeted information, subsidies for efficient appliances and equipment; also small scale renewables
Distributors verify and report savings; can be calculated or deemed savings
Energy savings may only be traded among obligated energy distributors
Cost recovery through tariffs
To realise the available potential of energy efficiency in France
Combination of legislation and regulation
All fuels, including district heating and cooling and transport fuels
Residential and commercial buildings, manufacturing industries, networked industries, transport, and agriculture
54 TWh cumac for July 2006 to June 2009; 345 TWh cumac for January 2011 to December 2013
90 TWh cumac for transport fuels
Energy retailers that sell the covered fuels to end consumers
Surrender of energy efficiency certificates; banking is allowed for up to nine years
EUR 0.02/kWh lifetime final energy shortfall
None
Savings can be produced by obligated parties, local authorities, and social housing landlords
Standardised and non-standardised measures plus contributions to programmes targeting fuel poverty, education, or innovation
Deemed savings for standardised measures; regulatory approval required for others
Over-the-counter trading of energy efficiency certificates
Cost recovery through tariffs is possible but has yet to be allowed
To serve as the primary driver for end-use energy efficiency
Combination of legislation and Ministerial Decrees
Electricity and natural gas
All sectors including transport, and all end-uses including small-scale co-generation and photovoltaics
2.2 Mtoe cumulative in 2008; increasing to 6.0 Mtoe cumulative in 2012
None
Distributors of electricity and natural gas
Surrender of energy efficiency certificates; one-year grace period before penalty is assessed if at least 60% of target is met
EUR 25,000 to 155 million assessed on case-by-case basis
Possible 5% premium over achieved savings
Savings can be produced by obligated distributors and accredited energy service providers
Preapproved list of measures with deemed energy saving values plus other measures assessed on a case-by-case basis
Deemed savings, partial on-field measurement, or measures subject to preapproval
Trade of energy efficiency certificates through over-the-counter market or spot market
Fixed contribution to cost recovery through a tariff contribution; transport measures not eligible for cost recovery
The main consideration is that every country has adopted different incentive strategies, making any confrontation an hard task.
www.fire-italia.org
Incentives
White certificates
Conclusions
Business plan are based on ex-ante consumption knowledge...
cash flow => ex ante energy bill - ex post energy bill
Lack of M&V and KPI
Linked to building uses and
weather
Linked to building uses and weather
Linked to project and design
Linked to management
The direct connection between the cash flows related to energy saving and end-use makes it difficult to assess and manage the risks. Some points:
metering and good design and management (technical part and skills); distribution of risks on numerous projects (financial part); smart regulations and guarantee fund (policy).
www.fire-italia.org
Incentives
White certificates
Conclusions
... and imply the capability to involve small size projects
Small: credit through bank agencies, no project financing; need for a diffused commercial and technical structure; request for turnkey and full service solutions.
Medium: agency or corporate banking; more ordinary commercial and technical structure; request mainly for turnkey and full service solutions.
Large: corporate o project financing; need for a structure capable to manage large projects; customized solutions.
Good opportunities for innovative business models, such as cooperatives, crowdfunding, investment funds, European Investment Bank programs, clustering of small operators and management of diffused partners.
www.fire-italia.org
Incentives
White certificates
Conclusions
Some important points: Energy audits and, even better, the energy management systems are essential to have
reliable baseline data on which to build credible business plan. They are also needed to access some incentives schemes (e.g. white certificates). Why not aiming incentives at their promotion?
Energy efficiency is made in the territory in favor of the territory and of the system. However, there is a lack of structures capable of operating in a distributed manner on small projects (or capable of aggregating them in favor of larger operators). Some support may be needed to promote new business models.
Many opportunities are dropped for lack of information or qualified operators. It is essential that the policy makers support actions to overcome these issues in the interest of the market and the users. The existing incentivated training system lack effectiveness.
No business model grows well in a system where the rules change frequently and with lack of coherence. Well...
Considerations
Incentives are neither subsidies, nor discounts. Incentives must not promote speculation. Incentives require time to bear fruit.
Seeing you in Milano!
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