Energy Efficiency targets in Spain: The EE Directive and beyond

2015 BP Madrid Forum onEnergy & Sustainability

Madrid, 29 September 2015

Carlos García BarqueroHead of Planning and Studies Department

IDAE

1.- EE Current Situation

A) Energy context

B) Measures under development (NEEAP 2014-2020)

C) Public building mandatory renovation

D) EE National Fund

2.- EE Policy Challenges

3

Energy context: Primary energy by sources 2000-2014

Source: MINETUR/IDAE

2014

Note: Non- renewable wastes included in petrol; *small Hydro in Hydraulic

0

15.000

30.000

45.000

60.000

75.000

90.000

105.000

120.000

135.000

150.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Ktoe

Electrical Balance Other RES Hydraulics Nuclear Natural Gas Coal Oil

Coal10,1%

Oil43,0%

Natural Gas20,0%

Hydraulics2,8%

Other RES11,8%

Nuclear12,6%

Electrical Balance‐0,2%

4

Energy context: Domestic production of energy 2000-2014

Source: MINETUR/IDAE

2014

20%

21%

22%

23%

24%

25%

26%

27%

28%

29%

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Degree of Self Sup

ply (%

)

Ktoe

Oil Natural Gas Coal RES Nuclear Degree of Self Supply

Coal4,7%

Oil1,3%

Natural Gas0,1%

Nuclear44,4%

RES49,6%

5

Energy context: Sectoral contribution to GDP 2000-2013

Source: MINETUR/IDAE

2000

2013

60%

70%

80%

90%

100%

110%

120%

130%

140%

150%

160%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

2000=100

GDP (€05) VA_Services (€05) VA_Construction (€05)

VA_Agriculture (€05) VA_Manufacturing Industry (€05) Households Consumption (€05)

Agriculture 3,6%

Energy Branches 2,2%

Manuf. Industry 15,7%

Construc. 10,6%

Services 58,3%

Taxes 9,6%

Agriculture 3,1%

Energy Branches 2,9%

Manuf. Industry 12,1%

Construc. 5,7%

Services 67,4%

Taxes 8,8%

6

Energy context: Final energy by sectors 2000-2013

Source: MINETUR/IDAE

2013

0

15.000

30.000

45.000

60.000

75.000

90.000

105.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

ktoe

Transport Industria Households Services Agriculture&Fisheries  Other

Industria 25,7%

Transport 39,4%

Households 18,6%

Services 11,8%

Agriculture&Fisheries 

3,5%

Otros  1,0%

• Primary energy intensity has been reduced at an annual average rate of -2,0 % in 2004-2012 (EU: -1,90%)

• Final energy intensity has been reduced at an annual average rate of -2.4 % in 2004-2012 (EU: -1,82%)

Final Intensity (PPP)Primary Intensity (PPP)

Source: IDAE/EnR

7

Energy context: Spain is on the path to reduce energy intensities

0,075

0,090

0,105

0,120

0,135

0,150

0,165

0,180

0,195

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

koe/€05p

EU‐28 France Germany Italy Spain UK Ireland Portugal

0,060

0,075

0,090

0,105

0,120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

koe/€05p

EU‐28 France Germany Italy Spain UK Ireland Portugal

‐0,67%

‐1,09%

‐2,25%

‐1,85%

‐3,40%

‐3,10%

‐2,80%

‐2,50%

‐2,20%

‐1,90%

‐1,60%

‐1,30%

‐1,00%

‐0,70%

‐0,40%

‐0,10%

2004‐2013 2008‐2013

Ann

ual A

verage

 Variation

 (%/year)

Structural Effect Real FI Variation

8

Energy context: Important structural effect on Final Intensity

Source: IDAE

Increasing relevance of structuraleffect from 2008 on

0,080

0,083

0,086

0,089

0,092

0,095

0,098

0,101

0,104

0,107

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

koe/€05

Final Intensity at Constant Structure Final Intensity

Structural Effect

Trends of Final Energy Intensity at Constant Structure

‐2,17%

‐1,75%

‐3,45%

‐1,45%

‐4,00%

‐3,50%

‐3,00%

‐2,50%

‐2,00%

‐1,50%

‐1,00%

‐0,50%

0,00%2004‐2013 2008‐2013

Ann

ual A

verage

 Variation

 (%/year)

Structural Effect Real FI Variation

9

Energy context: Important structural effect on Manufacturing Industry Intensity

Source: IDAE

Increasing relevance of structuraleffect in SPAIN within Industryfrom 2008 on

0,080

0,100

0,120

0,140

0,160

0,180

0,200

0,220

0,240

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

koe/€05

EU‐28 France Germany Italy Spain UK

Trends of Energy Intensity in Manufacturing Industry

NEEAP: Main EU Guidelines

• Directive 2010/31/EU on the Energy Performance of Buildings

• Directive 2012/27/EU on Energy Efficiency

• Art. 4: Long term strategy for therenovation of the national stock ofdwellings.

• Art 5: Energy renovation of 3% of the floorarea of the General State Administration(AGE) buildings

• Art. 7 & 20: EE obligation schemes andEE National Funds and AlternativeMeasures

• Art. 8-11: Audits and energy managementsystems, metering and billing information

• Art. 14-15: Promotion of CHP and EEimprovement of the transformation,transmission and distribution sectors

EED, Art. 3: Establishment of national indicative objectives

Statusquo

(2007)

Statusquo

(2009)

Objective-20%

10

NEEAP: National scenario

• Directive 2006/32/EC of Energy Services

• National Energy Efficiency Action Plan 2008-2012 (NEEAP1)

• Directive 2010/31/EU of Energy Efficiency in Buildings

• National Energy Efficiency Action Plan 2011-2020 (NEEAP2)

• National Law 2/2011 on Sustainable Economy

• Directive 2012/27/EU of Energy Efficiency

• Sectoral plans (CHP, ECB, RITE, PIVE, MOVELE, PAREER, JESSICA, …)

• Law 18/2014 of 15 October, approving urgent measures for growth, competitiveness and efficiency

• National Energy Efficiency Action Plan 2014-2020 (NEEAP3)

11

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

NEEAP2 2011-2020

Directive 2006/32/EU on Energy Services

ENERGY EFFICIENCY NATIONAL FUND (Art 20 EED)ENERGY EFFICIENCY OBLIGATION SCHEME (Art 7 EED)

Directive 2012/27/EU on Energy Efficiency (EED)

NEEAP3 2014-2020

Energy Efficiency Strategy in Spain (E4) 2004-2012

PAEE2005-2007

PAEE2008-2012

NEEAP4 2017-2020

12

NEEAP 2014-2020: the latest of consecutive plans

• Indicative Objective 1: Reduction of primary energy consumption in 2020 compared to BAU scenario(from 162.8 to 119,9 Mtoe)

• Binding Objective 2: Accumulated Saving of 15,979 ktoe during 2014-2020, equivalent to 571ktoe/year

Indicative Objective 1Binding Objective 2

13

NEEAP 2014-2020: Objectives

162,8

138,3 134,0123,2 122,8 121,4 121,7 113,6 113,9 121,6 119,9

0

20

40

60

80

100

120

140

160

180

BAUScenario

2007 2008 2009 2010 2011 2012 2013 2014Provisional

2013AnnualReport

NEEAP2014‐2020

Primary Energy (Mtoe)

Objetive 202020 %  BAUScenario 2020  = 130,02 Mtoe

Distribution of annual savings (571 ktoe/year) by sectors

14

• Saving target : 15,979 ktoe (571 ktoe/year of additional accumulated savings)

Distribution of accumulated savings (15,979 ktoe)by measures

Alternative Measures (Art 7.9):• Law 15/2012 of energy tax measures• MOVELE• PIVE• PAREER• JESSICA-FIDAE• PIMA Sol/PIMA Aire• Energy efficient driving program

NEEAP 2014-2020: Binding Objective by measures and sectors

Alternative Measures

29%

EU Funds (ERDF)31%

National Fund (EENF)/Obligation Scheme (EEOS)

40%

Industry54,6%

Transport25,3%

Buildings&Equipment15,3%

Public Services2,2%

Agriculture1,7%

Communication1,1%

• Efficient Vehicle Incentive Plan (PIVE) – 8th call for proposals

o Budget: 225 M€

o Objective: to incentive the purchase of new efficient vehicles -energy class (A or B)- by means ofscrapping passenger cars older than 10 years.

o Aids: 1.000 €/veh (1.500 €/veh for large families), plus a similar contribution from the manufacturer,importer, car dealership or selling point. (750 €/veh latest call)

Concept PIVE PIVE 2 PIVE 3 PIVE 4 PIVE 5 PIVE 6 PIVE 7 PIVE 8 TOTALLaunching Date 1 /10/ 2012 4/02/ 2013 29/07/2013 28/10/2013 27/01/2014 6/06/2014 27/02/2015 14/05/2015 ‐‐‐‐‐

Economic Support (M€) 75 150 70 70 175 175 175 225 1,115Vehicles Objective (units) 75,000  149,090  69,576 69,576  173,940  173,940 173,940 299,938 1,185,000.

IDAE has managed more than 700,000 dossier evaluations in 2 years, relying on thesupport of 2,580 selling points

15

NEEAP 2014-2020: PIVE

o Incentives linked to categories and range of

autonomy (not to market prices).

o Budget: 10 M€.

o Beneficiaries: particulars, enterprises, regions,

local corporations, AGE bodies.

o Higher incentives for large families and

disabled people.

• MOVELE Program

o Promotion of electric vehicles purchasing.

o Catalogue of vehicles with models subject to besupported available in www.movele.es

16

NEEAP 2014-2020: MOVELE

o Budget: 200 M€.

o Support mechanisms: Direct public aids + reimbursable loans(EURIBOR + 0,0%; 12 years payback)

o Requirement: energy qualification improvement of dwelling label of at least 1 letter

o Actions:

17

NEEAP 2014-2020: PAREER-CRECE

o Objective: promotion of integral actions directed to improve energy efficiency andpromotion of RES in the stock of existing dwellings (households and hotels)

TYPE OF ACTION BUILDING USE

MONEY ALLOWANCE WITHOUT CONSIDERATION

BASE AID

% ADDITIONAL AID

Social  Criteria 

Compreh. Action

Energy Efficiency

“A” Final Rating  “B” Final Rating  Two‐letter Upgrade or Higher

Upgrade of the EE in the thermal envelopeHousehold 30%

(limit 6 000 €/ household)

15% 20% 15% 10% 5%

All other uses 0% 20% 15% 10% 5%

Upgrade of EE in thermal & lighting installations Household 20%0% 0% 10% 5% 0%

All other uses 0% 0% 10% 5% 0%

Replacement of conventional energy by thermal biomassin building thermal installations

Household25%

5% 10% 0% 0% 0%

All other uses 0% 10% 10% 5% 0%

Replacement of conventional energy by geothermalenergy in building thermal installations

Household30%

10% 15% 0% 0% 0%

All other uses 0% 15% 10% 5% 0%

o Fund co-funded by ERDF and IDAE and operated by the EIB (European Investment Bank)

o Technical Assistance Unit for the identification and technical preparation of projects and public tendering

o National Managers selected by EIB: “BBVA”, “Banco de Santander” and “Ahorro Corporación”

o Beneficiaries: ESCOs, private companies, public administrations

o Objective: financing of sustainable urban development projectswhich improve energy efficiency and/or use RES and or other privatecompanies

o Budget: 123 M€

18

NEEAP 2014-2020: FIDAE

• Energy Diversification and Saving Investment Fund (FIDAE):

• FIDAE sectors and priority topics:

Buildings: Public buildingsand social housing

Transport: fleets andtransport infrastructure

Lighting: street lighting andnetwork traffic lights

Local infrastructure, smartgrids and ICT linked with EE,RES or clean transport

Solar Energy

1

2

3

4

1

Biomass 2

Energy efficiency, energymanagement. 3

Eligibility Criteria

Clean transport 4

Sectors

• Electric and hybrid vehicles• electric‐vehicle charging infrastructure/ LNG• Equipment for the recovery of electricalenergy on braking

• Buildings• Renovation/heat and/or refrigeration distribution networks

• EE project ins the industry sector / port/lighting/services, etc.

• Thermal energy installations • Biofuels production• Biomass treatment Installations for energy purposes .

• Biofuels pump installations

Priority topics

19

NEEAP 2014-2020: FIDAE

• Mandatory Audits for enterprises non-SME (large companies)

(by 5th December and every 4 years later on)

Nº of large companies

Nº of establishments

Industry 931 5.813

Construction 192 1.474

Commerce 689 4.170

Other Services 1.970 15.829

TOTAL 3.782 27.286

Estimation of Nº of establishments which shouldrealize energy audits by sectors

• Promotion of ESCOs market

Main Activities declared by registered ESCOs (968 companies)

20

NEEAP 2014-2020: Audits and ESCOs (Art. 8, 16 & 18 EED)

Public lighting

CHP Buildings Household Industry

Registered

 Com

panies

21

• “NEW ENERGY BILL” & “ENERGY SAVING” Communicationcampaigns

NEEAP 2014-2020: Communication, Information and Training

• “SICER”: Citizen Information Service on EE and RES

0

5.000

10.000

15.000

20.000

25.000

30.000

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

ene‐13 feb‐13 mar‐13 abr‐13 may‐13 jun‐13 jul‐13 ago‐13 sep‐13 oct‐13 nov‐13 dic‐13

Consultas acum

uladas

Consultas men

suales

• “Training and information measures”

o Annual Mandatory Renovation: 3% of the floor area of State buildings in 2014, and then everyyear thereafter during 2014–2020 period, to meet at least minimum energy performancerequirements of Art. 4 EED

o Implemented actions:

• Buildings with total surface > 500 m2 and heatingand/or cooling systems are included (> 250 m2

from 9/07/2015)

• PIGEP: Energy and Asset Management ElectronicPlatform

22

Renovation of State Buildings (Art. 5, EED)

Resulting inventory of buildings: 1,763buildings, with a surface over 11.2 million m2

(resulting objective: 336,000 m2/year)

Inventory Results

23

o Assigned to MINETUR through the Secretary of State for Energy

o Management by IDAE

o Supervised and controlled by a Monitoring & Control Committee

o Approved in 2015: two consecutive programs with 168 and 210 M€ respectively1a) Aid programme for EE buildings (PAREER)1b) Aid programme for modal split actions and efficient use of transport modes1c) Aid programme for SME and large companies’ in industry1d) Aid programme for municipal street lighting infrastructure renewal

2) Complementary programmes for industry, street lighting, road transport, railways and water cycle

ENERGY EFFICIENCY NATIONAL FUND (FNEE)

ENERGY EFFICIENCY AND SAVING MEASURES

NEEAP 2014-2020

Generl State Budgets(PGE)

European Regional Developmant Funds

(ERDF)

Any other economic resource for EE financing EE

Contributions from EEOSobliged parties to the energy efficiency obligation scheme

103.5 M€ (2014)

Energy Efficiency National Fund (EENF), Art 20 EED

All Directive deadlines are being accomplished :

• Article 4: long-term strategy for renovation of residential and commercial buildings: SpanishStrategy for Energy Rehabilitation in the Building Sector; Renovation of State Buildings

• Article 5: inventory and retrofit of heated/cooled central government buildings: 1,763 buildings in2013 and Mandatory Renovation

• Article 6: new public procurement law dealing with energy products: Law 15/2014 on PublicSector rationalisation

• Article 7: EE Obligation Schemes and alternative actions according to Article 7.9: EEOS, PIVE,MOVELE, PAREER, FIDAE, energy taxes, regulations and standards

• Articles 8, 9,10, 11, 16, 18: audits, metering, training, ESCOs: Mandatory audits, inventory ofESCOs

• Articles 12, 17: Information and training: Courses and campaigns

• Art 14: Promotion of High-Efficiency CHP: IDAE report (2013) and study under development

• Art 20: Energy Efficiency National Fund: several EENF aid lines in place

Spain is fully committed with the EED transposition

EE Policy Challenges: EE Directive

• Widen end-use energy statistics analysis following EUROSTAT regulationSpahousec (households)Planned (industry, transport, services)

• Regulation of energy audits in SMEs and large companiesRoyal Decree under elaboration

• Metering/information: empowering consumers to manage energy consumptionRoyal Decree under elaboration

• Expanded efforts aimed at promoting EE in industryIndustry as a priority sector in future EE policies (+66 Mill€ recently under EENF)

• Still a big potential for improving EE in buildingsPromotion of nearly zero-energy buildings

• Smart cities / sustainable urban mobilityNational Strategy on Alternative Fueled Vehicles (VEA)

• Main ERDF 2014-2020 Operative Programs under approvalExpected increased activity during next years (over 1 Bill€ for EE)

• Updating NEEAP:NEEAP 2017-2020 to be submitted by end-April 2017

EE Policy Challenges: Pending issues and priorities

26

THANK YOU

cgbarquero@idae.es

27

Energy context: Important structural effect on Manufacturing Industry Intensity

Source: IDAE

20%

40%

60%

80%

100%

120%

140%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Base 2004=100%

Paper Chemicals Non Metallic Minerals Primary Metals Equipment Food and Beverages

Changes in the Added Value Structure in Manufacturing Industry

Change in the contribution of the several branches to the Gross Value Added of the manufacturing industry:reduction in the more intensive branches of non-metal minerals and metallurgy and slight displacement towardsless intensive branches.

28

NEEAP 2014-2020: Energy Efficiency Obligation Scheme (EEOS)