Country Report. Energy Efficiency Policies in Europe. Hungary

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1 Energy Efficiency Policies in Europe Analysis of National Energy Efficiency Action Plans and Policies in EU Member States 2014 Country Report Hungary Co-funded by the Intelligent Energy Europe Programme of the European Union

2 Key Points and Recommendations This report is one of 28 Country Reports published in 2015 by the Energy Efficiency Watch (EEW) project. It addresses 1) the changes in policies implemented since 2011 by EU Member States (MS) and their plans, based on the National Energy Efficiency Action Plans (NEEAPs) published in 2014 and other official, as well as 2) the feedback that was received from the quantitative survey and expert interviews on how effective policy implementation actually is (see more at efficiency- watch.org). Based on these results, it also offers recommendations on how Hungary s sectoral and overall energy efficiency policies could be further improved. Overview of findings The screening of the NEEAP and the findings from the survey conducted with Hungarian experts show that the policy framework has not significantly improved since 2012 and still lacks ambition. Most experts think that the EED savings target is not likely to be achieved. Energy prices are regulated, which maintains them at an artificially low level, and does not provide incentives to invest in energy efficiency. Many energy efficiency measures are still in the planning phase, while measures in place lack either ambition or financial support. Experts underline that EU co- funding for energy efficiency measures is high, at 85%. They believe that this high rate prevents the emergence of effective financing schemes: investments are decided on the basis of the eligibility to EU funds, not on cost- effectiveness. Experts point to uncertainty in the policy framework as a major barrier to investment in energy efficiency: retroactive change in taxation of revenues from renewables have been implemented in the last years, and investors fear the same could happen to energy efficiency investments. Sectoral Progress The sectoral progress of policies is as follows: With respect to the energy efficiency governance framework, the government has decided to implement alternative policy measures instead of an energy efficiency obligation scheme. Several strategies on energy and climate have been adopted, with some of their provisions impacting energy efficiency. A building Energy National Strategy was started in 2015, aiming at energy savings in new and existing buildings. However, experts consider that the policy measures only provide a weak framework, as energy efficiency is not regarded by the government as a priority, contrary to the supply side. They estimate that the government s estimate of the 2020 BAU consumption is too high. Experts also note a strong centralisation and little room for action from local authorities. The national and local energy agencies have been maintained, however no information is available on their activities. With regard to financing opportunities, the fund dedicated to green investments is still in place and a low- interest financing for ESCO activities is planned. In the public sector, the 3% renovation target only holds for buildings owned by the central government (i.e. local authorities not included). An Energy Efficiency Operational Programme is starting in 2015 and has been allocated around 240 million for the period Legal provisions are in place to implement green public procurement. At the local level, 24 cities have made a voluntary commitment to improve energy efficiency. The NEEAP states that financial support for modernisation of municipal buildings is available in the Regional and Urban Development Operational Programme. Experts point to an ownership issue as holding back investment in energy efficiency in public sector: many public buildings are owned by the state, but their facility management remains with municipalities. A regional programme for energy saving investments has been terminated in 2013 and has not been 1

3 replaced since. Educational activities are ongoing, with education material provided to schools and training being offered to local government. The policy package in place for the buildings sector is seen as weak by experts, with many measures still in the planning phase. It largely builds on the transposition of the Energy Performance of Buildings Directive (EPBD): energy certification of buildings and energy labelling of products are seen as the most effective EE policies. Still, three quarters believe that Hungary is lagging much behind in meeting its obligation that all new buildings be "nearly zero- energy buildings" by Most programmes that were in place in 2011 to incentivise investments are still ongoing, such as the Green Investment Scheme Programmes or the National Energy Saving Loan, but lack effective funding. However, there is no information in the NEEAP on potential new programmes, and experts lament the lack of call for proposals for energy efficiency investments in residential buildings. For instance, no funds from Structural funds were available in Several information programmes are in place to raise awareness through public campaigns, promotion of pilot projects, however their impact is unclear. An information website is planned to be established. Smart metering pilot projects are ongoing. The policy package for appliances is essentially based on the EU Ecodesign and EU Energy Labelling Directives and is complemented by information and educational activities. However, there are no economic incentives to purchase best available technologies, and no training for retail staff and / or supply chain actors. Several initiatives are in the planning phase, such as an Appliance Replacement programme and a green loan programme. There are only limited policies and measures for the industry and tertiary sectors. Experts describe the energy efficiency market for industry and services as driven by ownership and energy prices, without policy support. A Virtual Power Plant Programme aims to incentivise businesses to lower their consumption by sharing good practices. Voluntary agreements are still in the planning phase, as are an awareness campaign and an energy audit mentor service that would provide direct consulting services. Among ongoing measures: the National Network of Energy Engineers is responsible for providing information to business in the SME sector, a programme targeting mitigation of energy use in SMEs. However, energy audits for industry and financial for SMEs are rated as largely ineffective by experts. In the transport sector, a Transport Infrastructure Development National Strategy was adopted in Train and railways modernisation programmes and a bus replacement programme are ongoing. In addition, tax incentives have been established for electric and hybrid cars and an action plan has been adopted for the development of electromobility infrastructure, with 25% of carbon market revenues earmarked to fund the programme, amounting to around HUF 7 billion in 2015 (22 million Euros). Recommendations Further improvements to the policy package could be the following: The energy efficiency governance framework should be strengthened, either through further alternative measures or an energy efficiency obligation scheme. Overall, uncertainty in the policy framework must be decreased in order to allow investments. In the public sector, local authorities should be given more competence and financial means to take action. It is recommended to ensure that Structural Funds are used to support targeted needs in public buildings renovation and industry efficiency, through preferential loans for instance. In the residential buildings sector, support measures should be scaled up and better targeted at poor households in energy inefficient housing. This would provide a more cost- effective protection for vulnerable households than regulated tariffs. In the industry sector, voluntary agreements should be implemented and monitored. Structured energy audit and management services should be readily available. The transport policy could encourage more intermodal transport. 2

4 Policy Developments according to Official Documents The next tables present 1) the policies that were implemented in 2011 in Hungary and 2) the policy changes after The policies are listed as the result of a document screening. Primarily, the screening takes into account the second and third NEEAP as well as Article 4, 5 and 7 communications of the Energy Efficiency Directive to achieve meaningful results. The Odyssee Mure database has also been a valuable source of information. Depending on the quality of information given in the official it has been analysed whether policies have been ongoing, abandoned/weakened or improved. It was not possible to assess how well these policies are implemented and which results they achieve. The changes in the policy design are illustrated with the following symbols: - means that the measure is ongoing without significant changes, - shows that the policy is new, - illustrates a policy that was abandoned, - ý shows a policy that is ongoing but that was weakened significantly, - þ presents a policy that is ongoing but that was improved significantly. Overarching Energy Efficiency Governance Framework Element of the policy package Long- term EE target(s) and strategy Involvement of non- governmental and market actors, and sub- national authorities Energy agencies and climate protection agencies EE funds for overall coordination and funding of policies and measures EE obligation scheme for overall coordination and funding of policies and measures Policies implemented in 2011 Policy changes after 2011 New Széchenyi Plan of 2011 lists the development of the green economy as one of the country s priorities The National Energy Strategy sets sectoral targets for 2030 National Reform Programme sets target of 10% total energy savings by 2020 National Climate Change Strategy formulates the objectives of energy strategy (all sectors) Local governments and research institutes are involved in energy efficiency policies and measures Energy Agency Energia Központ Nonprofit Kft Energy agencies have also been established at regional and local level Non- governmental organisations are the Enterprise Development Agency, the Association of Technical and Scientific Societies Investment programmes mentioned like the Green Investment Scheme to reduce emissions of greenhouse gases No information found in the screened The New Széchenyi Plan, the National Energy Strategy, the National Reform Programme and the National Climate Change Strategy are ongoing regarding the National Climate Change Strategy Building Energy National Strategy (BENS) (started in 2015) with measures to achieve energy savings in existing buildings, tightening the requirements of new buildings and research and development, training and information National Development and Regional development Concept Local governments and research institutes are still involved in policy making National Network of Energy Engineers plays a key role in improving energy efficiency The agencies on national and regional level and the non- governmental organisations still exist. The energy agency was renamed: Magyar Energetikai- és Közműszabályozási Hivatal, Hungarian Energy And Public Utility Regulatory Authority The Green Investment Scheme was renamed: Green Economy Financing Scheme A national fund does not exist Hungary decided to achieve the EU targets through alternative policy measures (Article 7(9), EED) 3

5 Favourable framework conditions for energy services Energy taxation higher than EU minimum requirements Promotion of ESCOs by regulatory means Plans to strengthen the demand side management activities of energy service providers, e.g. by setting the requirements for concluding a service contract Excise duty rate for gas and electricity is at minimum rate R&D support Strengthening of R&D activities mentioned in the second NEEAP The ESCO service for the residential sector is modified significantly. One state- owned central service provider will replace the current market players in 2016 A website will be set up to raise awareness about ESCOs The residential electricity prices (and energy taxes) in Budapest are among the lowest in the EU No information found in the screened Public Sector Element of the policy package Policies implemented in 2011 Policy changes after 2011 Public sector strategy Energy efficiency education material Education material is still provided for primary and secondary education Regional Operational Programme include energy- saving investments that can be financed in the joint ownership to schools. It is also planned to further develop energy- related secondary and adult curricula with practical exercises, skills and innovative tools section of panel buildings The regional operational (modernisation of lighting, programme ended in 2013 improvement of heating, replacement Local government training is of doors and windows etc.) ongoing Municipal level training, awareness No information on development raising and consulting Energy efficiency consultancy network to disseminate information and realise trainings regarding the consultation network but a National Network of Energy Engineers was established to provide information to municipalities The Ministry of National Development The Energy efficiency consultancy plans to join the 10:10 campaign and network is still in the planning phase thus to reduce carbon emissions by 10% in one year (campaign promoted by regarding the 10:10 campaign Great Britain) Central European Cooperation Programme Demonstration of Energy Efficiency and Utilisation of Renewable Energy Through Public Buildings Project including provision of information to local decision makers and other local actors To renovate 3% of the total floor area of public buildings, HUF 6 billion has been allocated under the Energy Efficiency Operational Programme (EEOP) starting in 2015 Sustainable Energy Action Plans (SEAP) have currently been adopted by 24 cities in Hungary (voluntary commitment to improve energy efficiency) National Building Energy System (NBES) database to upload building energy data 4

6 Public procurement Green Public procurement action plan and guidelines to prefer the solutions with the least possible environmental impact during the life- cycle Energy efficiency requirements for office equipment in the public sector Public buildings Renewable Public Institution Sub- Programme including insulation, replacement of doors and windows, metering- based billing, modernisation of heat centres, and heat pumps Energy Performance Certificate mandatory for large public buildings CEP5 is a European Programme to support energy efficiency efforts in public buildings (model building housing exhibition, information centre, conference centre etc.) R&D support Model projects for the promotion of a more sustainable lifestyle and consumption alternatives to promote sustainable solutions in public buildings and other highly visited buildings The procurement plan is ongoing The requirements for office equipment is still in the planning phase Act CVIII provides that sustainability criteria can be taken into account among the sub- criteria (since 2012), information material have been published on a website Government Resolution No 1849/2014 stated that public bodies shall only purchase products and buildings with high energy- efficiency performance Renewable public institution programme is ongoing The Energy Performance Certificates are still mandatory regarding the CEP5 programme The Model Projects ended Residential Sector Buildings Element of the policy package Minimum Energy Performance Standards (MEPS) Policies implemented in 2011 Policy changes after 2011 Energy Performance of Buildings Directive (EPBD) implemented Drawing up a National Strategy for the Energy Performance of Buildings Goals for decreasing the heating energy demand of buildings by 30% by 2030 Other Regulation Energy efficiency requirements for household boilers (according to the EPBD) The EPBD is ongoing The National Strategy for the Energy Performance of Buildings was approved by the government in February 2015 Goals for decreasing the heating energy demand still exist. Hungary aims to achieve the EU energy efficiency targets ongoing 5

7 Grants, tax incentives Liveable Panel Dwellings Renovation Programme with investments (subsidies) in existing buildings (e.g. insulation, replacement of doors and windows, metering- based billing, ventilation systems) Building New Green Home Sub- Programme for very efficient buildings better than the minimum requirements Green Investment Scheme Programmes o Climate- friendly Pre- Fabricated Homes Sub- Programme focuses on supporting the modernisation and renovation of residential buildings o Climate- Friendly Homes Energy Efficiency Sub- Programme supports the complex climate- friendly energy efficiency renovation of residential buildings built by traditional technologies o Front Door and Windows Replacement Sub- Programme o Our Home Renovation and New Home Building Sub- Programme supports modernisation activities, like efficient heaters, insulation, technical building system renovation etc. Financing instruments National Energy Saving Loan Programme for the replacement of doors and windows as well as heat insulation Energy performance Energy Performance Certificates are certificates (EPCs) mandatory for buildings or flats Energy advice and audits Energy efficiency consultancy network to coordinate tenders, establish training system, establish and coordinate national auditing and monitoring system The liveable panel Dwellings Renovation Programme is still in the planning phase The Building New Green Home Sub Programme is ongoing The Green Investment Scheme Programmes were replaced by Otthon Melege (Warmth of Home) programme in There is a sub programme for new windows and boilers for single family houses and a multi- flat houses retrofitting programme Green loan programme suitable for the financing of residential energy efficiency projects The loans are no longer available ongoing regarding the consultation network Implementing rules are set out in the Government Decree No 122/2015. The Hungarian Energy and Public Utility Regulatory Authority is in charge of the verification of energy auditors 6

8 Information tools for investors and users Education material for primary and secondary education Energy efficiency consultancy network to disseminate information and raise awareness, through e.g. road shows Awareness- raising campaign to present energy- efficient technologies (target group: population between 25 and 45) Demonstration projects No information found in the screened Education and training Energy efficiency consultancy network for building to establish training system professionals R&D support R&D activities mentioned (Energieklub, 3CSEP- CEU studies) Education material is still provided to schools. It is also planned to further develop energy- related secondary and adult curricula with practical exercises, skills and innovative tools regarding the planned projects Central European Cooperation Programme Demonstration of Energy Efficiency and Utilisation of Renewable Energy Through Public Buildings Project including an awareness raising campaigns for residential buildings (road shows etc.) Smart Metering pilot Projects are currently in progress and residential consumers are equipped with meters wherever this is technically feasible / Profitable energy pilot project included awareness raising measures and a series of events between 2012 and Projects were conducted in Borsod- Abbaúj- Zemplén country. Similar activities are planned An energy efficiency information website is available. The Public Utility Regulatory Authority is responsible) Energy and climate awareness campaign The real price of energy Service providers provide information about energy consumption, potentials and available financial incentives to customers No information found in the screened regarding the consultation network Central European Cooperation Programme Demonstration of Energy Efficiency and Utilisation of Renewable Energy Through Public Buildings Project including training programme to acquire skills related to the practical uses of the Building Energy Rating Tool Training system is in place for experts providing energy efficiency services in the construction industry (including theoretical and practical skills) Developing new technologies and other research and development activities mentioned within the Action Plan and the BENS Achieving energy savings by a review of the building certification system (study) 7

9 Residential Sector Appliances Element of the policy package Policies implemented in 2011 Policy changes after 2011 Minimum Energy The Ecodesign Directive has been ongoing Performance Standards transposed (MEPS) Economic incentives Green Investment Scheme o Low- Energy Bulb Replacement Sub- Programme to support persons in need replacing traditional light bulbs o Low- Energy Household Appliance Replacement Sub- Programme offers persons in need the opportunity to replace the high- energy refrigerator and washing machine (since 2010) Energy labels EU Energy Label is in place ongoing Information tools Education material for primary and secondary education Education and training for retail staff and other supply chain actors Information about energy efficient appliances and energy calculator Campaign to encourage a sustainable lifestyle and related behavioural pattern under the Energy Efficiency Operational Programme Environment- Friendly Product label in addition to the EU Energy Label (since 1994) Awareness- raising campaign to present energy- efficient technologies (target group: population between 25 and 45) Education material for primary and secondary education Energy efficiency consultation network R&D support No information found in the screened The Green Investment Scheme ended but is intended to be continued Green loan programme suitable for the financing of residential energy efficiency projects Otthon Melenge (Warm of Home) programme including sub programmes to change fridges and freezers, washing machines Education material is still provided to schools. It is also planned to further develop energy- related secondary and adult curricula with practical exercises, skills and innovative tools The information website Energiakulkulator is ongoing The campaign to encourage a sustainable lifestyle ended The Eco- Label is still available / Profitable energy pilot project included awareness raising measures and a series of events between 2012 and Projects were conducted in Borsod- Abbaúj- Zemplén country. Similar activities are planned An energy efficiency information website will be set up Energy and climate awareness campaign The real price of energy Service providers provide information about energy consumption, potentials and available financial incentives to customers regarding the educational materials The consultation network is still in the planning phase No information found in the screened Industry, Tertiary Sector, and Agriculture Element of the policy package MEPS and other standards for equipment, production process, products Policies implemented in 2011 Policy changes after 2011 The Ecodesign Directive has been transposed ongoing 8

10 Energy savings and action targets for individual companies Energy management systems and other obligations Economic incentives for investment Financial support for energy advice and audits Voluntary Agreements regarding energy audits, development of products with better energy efficiency indicators and energy saving targets Creation of an open database providing access to thematic information and realised projects (good practices) Energy efficiency consultancy network to disseminate information and raise awareness Mandatory energy consumption report of large consumers including work plan regarding energy efficiency improvements Virtual Power Plant Programme (since 2011) including questionnaire about the energy situation, voluntary targets (Energy conscious Business Label if target is achieved), demonstration activities and share best practices and awards Employment of energy experts at large energy consumers (including energy management system) Mitigation of the energy use of enterprises including technological modernisation of SMEs, energy- saving renovation of industrial buildings and agricultural building Operational Programme Environment and Energy offers non- repayable grants for increase of renewable energies and energy efficiency (since 2007) Energy efficiency loan fund for investments of the business sector (since 1991). The amount of the loan can be 80% of the total costs Hungarian Energy Efficiency Co- Financing Programme by IFC and GEF to promote energy efficiency financing in the Hungarian financial sector (since 1998) Measures under the second NEEAP o Technological modernisation of SMEs o Energy renovation of industrial buildings o Energy efficient renovation of agricultural buildings o Energy- efficient renovation of buildings of other businesses purpose (service, trade) Coordination of the establishment and operation of a national energy efficiency auditing and monitoring system The Voluntary Agreements with mandatory target commitments are still in the preparation phase Creation of the open database is still proposed An energy efficiency consultation network was not established but the newly developed National Network of Energy Engineers provides information to businesses in the SME sector regarding the energy consumption reports The Virtual Power Plant Programme is ongoing An energy efficiency information website will be set up Energy and climate awareness campaign The real price of energy The Employment of energy experts is ongoing Building Energy National Strategy focuses on energy management activities Mitigation of energy use is ongoing The Operational Programme ended in 2013 The loans are no longer available regarding the co- financing programme and the measures under the second NEEAP Rural development Programme includes rationalising and reducing the energy consumption of horticultural facilities Energy audit mentor service i.e. direct consulting services and establishment of an energy auditors register Energy audits shall be carried out by large enterprises in December 2015 The auditor must provide data to the registration body on the completion of the audit (operating early 2016) 9

11 Energy labelling EU Energy Labelling Directive implemented R&D support Harmonisation of EU or state- funded R&D research tenders of research institutes, higher education and SMEs ongoing regarding the R&D programme Transport Sector Element of the policy package Planning instruments Policies implemented in 2011 Policy changes after 2011 Transport Operational Programm incl. following measures Development of a cycle lane network Railway electrification, infrastructure modernisation (2 projects with approx. 500 km), build infrastructure which allows higher axle load to transport larger units of cargo Different bus replacement programmes Regulatory instruments Establishment of low- traffic zones incl. exclusion of heavy vehicles from specific zones to ensure livable surroundings Green public procurement: purchase mainly electric energy- efficient locomotives to replace diesel locomotives P&R system, free of charge or significant discount in combination with use of PT, integrated electronic ticket or pass system Economic incentives Maintenance + extension of road toll for heavy vehicles: State will grant less support from general tax revenues to the operation and maintenance, but users will make an (increasingly) larger contribution proportional to their road use Product development incentives to put car manufacturers and suppliers propelled by renewable fuels in competitive position Information and advice Different environmentally friendly transport campaigns; e.g. European mobility week Car free day Bam! Cycle to work R&D support No information found in the screened Transport Infrastructure Development National Strategy (adopted in 2014) Development of a cycle lane network Railway electrification, network modernisation, purchase of energy- efficient trains bus replacement programme operating a bicycle community transport system P&R system Tax incentives for the purchase of environmentally- friendly cars (battery electric and plug- in hybrid electric) Electronic road toll (into force since 2013) Campaign to promote rail transport No information found in the screened Policy Developments according to the Expert Survey In order to provide a fuller picture on energy efficiency progress made, this chapter makes use of information gained through quantitative surveys and qualitative interviews. For each country assessed in the EEW project, three experts were interviewed orally, while 25 national energy efficiency experts participated in the quantitative survey for Hungary The experts work with the 10

12 business sector, universities/research organisations, public sector or energy agencies. All findings below are solely based on the assessments made by these experts. This also includes the country progress indicators, which helps to compare the progress across countries and policy fields. The indicator was calculated from five relevant questions of the quantitative survey (see annex for the questionnaire), namely question 1 (ambition of energy efficiency policies), question 2 (progress in the last 3 years), question 4 (annual savings target), question 7 (NZEB target) and question 8 (improvements in key energy policy areas). The answers were weighted (the most positive answer by 100, the least positive one by 0).According to the Hungarian experts, Hungary is among the Member States that have made relatively little progress since the second NEEAP (country progress indicator: 26 out of 28). The rate of progress has slowed down somewhat compared to the period after the first NEEAP (2012 survey: country progress indicator: 20 out of 27). Almost 90 % of interviewed experts consider the overall ambition of energy efficiency policies as rather low (59 %) or ambitious in only a few sectors (29 %). Similarly, 84 % think that no or only a few additional policies were introduced in the last three years (both ratings are among the lowest in the EU). Among the critical issues observed by the experts are that energy efficiency is not a policy priority and there is a focus on the supply side. They also regret the impact that regulatory measures for keeping energy prices low have on energy efficiency. As positive developments, the experts see the financing provided by European Funds as well as increased awareness of energy efficiency among citizens and municipalities. The experts also mention a centralisation process in the field of energy efficiency. Hungary: overall ambicon of the energy efficiency policies Hungary: progress of the energy efficiency policies in the last 3 years 8% 12% 4 29% 59% 40% generally, rather low ambisous in a few sectors, less so in most others ambisous in a range of sectors, less so in a few others generally, rather high no or very litle progress a few addisonal policies a range of addisonal policies many addisonal policies More than half of the interviewed experts think that the EED savings target (new savings of 1.5% of the annual energy sales to final consumers) is not likely to be achieved. Three quarters believe that Hungary is lagging much behind in meeting its obligation under the EPBD that all new buildings be "nearly Zero Energy Buildings" by

13 Hungary: achievement of naconal 1.5 % energy savings target (EED) Hungary: on track towards the "nzeb" obligacon 19% 29% 21% 52% 75% not aware of this target target is likely not to be achieved target is likely to be achieved I don't know No, we are lagging much behind Yes, the implementason is well underway For the public sector, experts mention the cut of municipal budgets. The ownership of many municipal buildings changed from the local level to the national government with operating costs continuing to be paid by the municipalities. This is seen as an additional barrier to energy efficiency improvements in the public building stock. Some funds were available in the residential sector, though only sporadically. Also, the policy measures to keep energy costs low slowed the progress in energy efficiency across sectors. For the transport sector, experts report on the existance of programmes to increase electric cars and the historically high use of public transport. However, they also see a high need for investments in modernisation. Hungary: improvement in actual implementacon Considerason of energy efficiency in public purchasing 66% 21% 13% Funcsoning of the energy service market 63% 33% Decreasing fuel poverty Energy efficiency in transport 50% 33% 46% 59% 8% no progress some progress Energy efficiency in industry 29% 63% 8% good progress Exemplary role of public buildings 25% 71% Building renovason 13% 7 13% 0% 20% 40% 60% 80% 100% Among specific energy efficiency policy instruments, energy certification of buildings and energy labelling of products are seen as the most effective in the Hungarian context (rated at least partly effective by 83% and 75% respectively). Also, experts perceive energy efficiency requirements for 12

14 new and renovated buildings as similarly effective (7 and 75% at least partly effective). The highest rating for "not effective at all" is given to the inspection of heating/air- conditioning systems (almost 50%). Hungary: effeccveness of different policy instruments Energy cersficason of buildings 17% 58% 25% Energy labelling of products 21% 38% 37% EE requirements for renovated buildings 21% 62% 13% EE requirements for new buildings 26% 57% 17% Programmes for local energy planning 38% 5 Inspecson heasng/air- condisoning systems 13% 48% 39% Financial incensves for SMEs 29% 38% 33% Energy audits for companies 29% 42% 21% 8% Nasonal Energy Efficiency Funds 5 17% 25% Targeted advice for households 46% 29% 25% Financial incensves for private households 38% 37% 25% Energy taxason 41% 38% 21% Smart metering 5 33% 13% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% not implemented not effecsve at all partly effecsve very effecsve Good Practices The Virtual Power Plant (VPP) Programme can be considered as a good practice. It was established in The general aim of the program is to collect experiences and best energy efficiency practices of successful companies, transform them into transferable knowledge and forward them to companies especially SMEs, who lack of energy managers internally, motivate the management of the SMEs to invest time and energy in EE, and use the best companies as a role model for the others cooperate with the relevant authorities in order to create a legislation framework supporting energy efficiency. The Virtual Power Plan Program is the largest company EE movement in the region. It aims to set off a 200MW power plant's electricity production with proven energy savings by 2020 (regarding direct and indirect electricity savings). Building the virtual power plant starts with assessing the existing energy efficiency projects. The energy saving results of a company investment is verified by VPP experts and converted into saved fossil primer energy of an actual power plant. The savings serve as building blocks of a NEGAWATT power plant that is virtual since it prevents the building of a new fossil power plant. General practice shows that around 20% savings are attainable with fast returns on non- subsidized investments either through investments or even with just more cautious use of energy. 13

15 Disclaimer The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Union. Neither the EASME nor the European Commission are responsible for any use that may be made of the information contained therein. The analysis performed here is based almost exclusively on the information provided in the NEEAPs. Consequently, a low score for any of the criteria analysed could also be the result of a NEEAP lacking detailed information. Furthermore for some countries, national experts were consulted to review the reports. However, an expert was not available for every country and a full analysis of the policies and measures was only possible for a limited number of reports. The purpose of this assessment is not an absolute policy overview among Member States but is focusing on each Member State s individual conditions. The Project The Energy Efficiency Watch Project aims to facilitate the implementation of the Energy Efficiency Directive but also related policies like the Energy Performance in Buildings Directive (EPBD) and the Ecodesign (ErP) Directive on the national, but also on the regional and local level. This country report shows the progress made in implementation of national energy efficiency policies via a screening of NEEAPs and an extensive EU wide expert survey. efficiency- watch.org The Authors Stefan Thomas, Felix Suerkemper, Thomas Adisorn, Dorothea Hauptstock, Carolin Schäfer- Sparenberg, Lena Tholen, Florin Vondung (Wuppertal Institute) Daniel Becker, Lucie Tesniere, Charles Bourgault, Sonja Förster (Ecofys) Christiane Egger (OÖ Energiesparverband) with contributions by Reinhold Priewasser (University of Linz), Nils Borg (eceee), Dominique Bourges (Fedarene), Peter Schilken (Energy Cities) List of Abbreviations EE Energy Efficiency, EED Energy Efficiency Directive, EPC Energy Performance Certificates, EPBD Energy Performance of Buildings Directive, ESCO Energy Service Company, EU European Union, EEW Energy Efficiency Watch, MEPS Minimum Energy Performance Standards, MURE Mesures d Utilisation Rationelle de l Energie, NEEAP National Energy Efficiency Action Plan, nzeb nearly Zero Energy Buildings, R&D Research and Development 1