Energy Efficiency in Italy Rino Romani -Walter Cariani ENEA [email protected]...

Energy Efficiency in Italy

Rino Romani -Walter [email protected] [email protected]

ITALIAN NATIONAL AGENCY FOR NEW TECHNOLOGIES, ENERGY AND THE ENVIRONMENT

The “White Certificates” scheme

mailto:[email protected]

Implementing EEP: National and International opportunities

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Contents Energy consumption

Legislation on energy efficiency previous present

EE decrees April 2001- July 2004- December 2007 M&V Main results

NEEAP (National Energy Efficiency Action Plan)



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Italian energy consumption, energy and electricity intensity



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Italian energy consumption in end-uses



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Italian legislation framework Law 30 April 1973, n. 373 Law 28 May 1982, n. 308, Law 9 January 1991, n. 10 Lgs Decree 16 March 1999, n. 79, Lgs Decree 23 May 2000, n. 164, Lgs decrees (energy efficiency) April 2001- July 2004 -

December 2007 Lgs Decree 19 August 2005 n. 192 Budgetary law 2007 “energy package”



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Energy efficiency decrees Issued for the first time in April 2001. Innovative strategy that combines a command and control

approach with a market based instrument Distribution System Operators (DSO), with more than

100.000 customers, are required to achieve quantitative targets of energy efficiency improvements in end-uses

The way to achieve these objectives is left to DSO’s free enterprise and market forces (energy efficiency titles or white certificates). ESCOs are part of the scheme as well.



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Energy efficiency decrees

On July 2004 an amended version of the two decrees was issued with the following main changes: Modifications in the distribution of annual quantitative

targets; Extension of the implementation period (from 2005 to

2009) Introduction of a flexible mechanism in the deadline for

achieving the annual savings



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Energy efficiency decrees On December 2007 a further amended version of the two decrees was

issued with the following main changes: Increase of the annual quantitative targets; Obligation for DSO with more than 50.000 customers; Extension of the implementation period (from 2009 to 2012) Companies with an appointed energy manager are authorised to

operate in the scheme



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Annual Targets (Mtoe)

electricity gas

year annual cumulative annual cumulative

2005 0,1 0,1 0,1 0,1

2006 0,1 0,2 0,1 0,2

2007 0,2 0,4 0,2 0,4

2008 0,8 1,2 0,6 1,0

2009 0,6 1,8 0,4 1,4

2010 0,7 2,4 0,6 1,9

2011 0,8 3,1 0,4 2,2

2012 0,6 3,5 0,5 2,5


cumulative savings

0

1

2

3

4

5

6

7

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Mte

p

savings 8thyears

savings 7thyears

savings 6thyears

savings 5thyears

savings 4thyears

savings 3rdyears

savings 2ndyears

savings 1styears


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Energy saving targets can be achieved through projects/activities implemented by

DSO, directly or via controlled companies Energy Service Companies (ESCOs) Companies who have appointed Energy Managers

Eligible projects All energy efficiency projects



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Energy Efficiency Titles (TEE) or White Certificates (WhCs)

1 WhC for 1 toe of saved primary energy Type 1: certificates savings of electricity Type 2: certificates savings of natural gas Type 3: certificates savings of other fuels

WhCs are issued by the Electricity Market Operator (GME) once it has been certified that a defined amount of energy saving will be attained by project implementation



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Sanctions

proportional and in any case greater than the investment needed to compensate the non-compliance

established and applied by the Authority for Electric Energy and Gas (AEEG)



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Process to recognize energy saving

Implementation of the project

Request of verification

Assessment and certification

Issue of WhC

Exchange of WhC

Transfer of WhC to AEEG

Economic contribution

DSO and ESCO

Entitled project

AEEG/ENEA

GME

DSO and ESCO

DSO

AEEG to DSO

Phases and Actors



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What political drivers and obstacles did the evaluations face? Previous Italian laws on energy efficiency

(82/308 and 91/10 acts) granted subsidies for energy efficiency projects: based on a global national budget available for the

requests economic lever to encourage the operators but no

targets not enough subsidies to allow the implementation

of the projects



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What political drivers and obstacles did the evaluations face? The WhC mechanism, based on a Command & Control

approach, fixes targets to reach, identifies the obliged subjects and creates a market scheme to close the circuit thanks to which a number of energy efficiency projects are implemented.



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Measurements and Verification of energy savings (M&V) The definition of technical rules, the implementation,

monitoring and enforcement of the whole mechanism are under the responsibility of the Authority for Electric Energy and Gas (AEEG)

The AEEG developed three evaluation methods: a default (deemed savings) method: no on-field

measurement; an engineering method, partial field measurement; energy monitoring plan, subject to AEEG/ENEA pre-

approval



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Measurements and Verification of energy savings (M&V) Deemed savings and engineering methods are developed

by AEEG following consultation of all interested parties

Energy monitoring plans have to meet criteria pre-defined by AEEG and are subject to AEEG pre-approval. They can be proposed only for measures for which no deemed savings or engineering methods have been adopted by AEEG

Only “additional savings” are considered, i.e. savings over and above spontaneous market trends and legislative requirements



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Measurements and Verification of energy savings (M&V) Projects validation as well as energy savings certification

are under AEEG’s responsibility

Verification is carried out via: control of projects documentation prepared according to a

predefined reporting format and sent to AEEG by interested parties. Both quantitative and qualitative project characteristics are checked for validation

random on-site audits (i.e.: control of more detailed project-related documentation as well as audit at customers’ premises)

The certification of the energy savings produced by each project is made via the issuing of Energy Efficiency Certificates (EECs)



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Measurements and Verification of energy savings (M&V)


Project threshold (Mtoe/year)

Method

Default Engineering Energy monitoring

DSO/ESCOs 25

ESCOs 50 100

DSO 100 200


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Projects evaluated by Default Method(examples of 22 developed formats) Replacement of incandescent lamps by CFL; Replacement of electric boilers by gas boilers for

heating sanitary water; Installation of high efficient boilers; Thermal insulation systems in buildings; Photovoltaic plants (<20 kW power); Variable speed drivers High efficiency electric motors; Etc…



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Tariff contribution

The WCh mechanism is supported by a yearly determined “tariff contribution”, from the AEEG.

For each “toe” of certified energy saving, the obliged Distributors will receive a “tariff contribution”, presently, valued at 100 €

“tariff contribution” is a component of the electric and gas bill, paid by all end users.



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Main results (July 2008)

Several ESCOs authorised (1,100 till now), of whose 140 actually implemented projects;

Over 3,200 projects implemented; 2.0 Mtoe of energy saving achieved (with respect to the

2008 cumulative target of 2.2 Mtoe); Avoided emissions over 5.5 million tons of carbon

dioxide; Benefit for end users significantly outweighted (in a ratio

of roughly 1 to 8) the tariff contribution.



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Main results (July 2008)



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Costs borne by “Obliged DSOs” No information yet available about the costs borne by

DSOs to implement energy efficiency measures. A preliminary estimation carried out on two main

assumptions: Four different percentage subdivisions between titles bought on

the market and titles achieved for projects directly implemented by the DSOs

Savings achieved mainly through projects implemented by DSOs in the residential sector, where a pay-back time for the investment of 4 years it is deemed reasonable



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Outcome from the preliminary estimation Costs borne by “Obliged DSO” (M€)



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Costs for the Government

Costs associated with tariff contribution

2Mtoe * 100 €/toe = 200 M€

Costs associated with M&V

1,5 M€ per year

€ per GJ saved

2,5 €/GJ



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Costs for the Government

Source ECOFYS



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Does it work? Advantages

it combines the guaranteed results of regulation with the economic efficiency of market-based instruments

it promotes the development of a market for energy efficiency products and services

it fosters the entrance of new market actors Features

progressive approach in implementation credibility and transparency of the policy approach flexibility for market operators to meet their goals simplicity and accurateness of rules



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NEEAP-The national indicative energy saving targets

GWh Mtoe

Average over 5 year period 1,316,261 113.19

9% energy saving target in 2016 118,464 10.18

Energy saving target adopted (9% or higher)

126,327 (9.6%) 10.86

Intermediate target in 2010 adopted

35,658 (3%) 3.39



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Programs of EE improvement and other measures for achieving the national targets En. Sav. Target 2010 - GWh

En. Sav. Target 2016 - GWh

Measures in the Residential sector:

1) Thermal insulation improvement of ante 1980 residential buildings2) Substitution of simple glazing of windows with double glazing 3) Replacement of incandescent bulbs with CFL4) Substitution of dish-washing machine with class A equipment 5) Replacement of refrigerators and freezers with equipment of A+ e A++class6) Substitution of washing machines with superlative class A equipment 7) Installation of efficient electric water heating equipment 8) Installation of efficient air conditioning systems 9) Energy-efficient heating systems 10) High-efficiency wood Boilers and Fireplaces

1) 3,4892) 2333) 1,6004) 3055) 1,2106) 317) 7008) 1809) 8,15010) 1,100

1) 12,8002) 9303) 4,8004) 1,0605) 3,8606) 4107) 2,2008) 5409) 26,75010) 3,480

Measures in the Tertiary sector: 1) Energy-efficient heating systems 2) Installation of efficient air conditioning systems 3) Efficient bulbs and digital control systems4) Efficient bulbs and digital control systems (public lighting

1) 5,4702) 8353) 1,4004) 425

1) 16,6002) 2,5103) 4,3004) 1,290

Measures in the Industry sector: 1) Efficient bulbs and digital control systems2) Substitution of electric motors (1-90kW) from Eff2 class with Eff1 class3) Inverters for electric motors (0.75-90 kWh)4) High-efficiency cogeneration 5) Mechanical vapour compression

1) 7002) 1,1003) 2,1004) 2,0935) 1,047

1) 2,2002) 3,4003) 6,4004) 6,2805) 3,257

Measures in the Transport sector: 1) Introduction from 01.01.2009 of a standard of consumption for vehicles of 140 g/km (average of total sold vehicles)

1) 3,490 1) 23,260

Total of Expected Energy Saving 35,658 126,327


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Thanks for your attention


Energy Efficiency in Italy Rino Romani -Walter Cariani ENEA [email protected]...

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