The Italian White Certificates scheme: results and lesson learned. Alberto Pela Regulatory Affairs GSE

Transcription

1 The Italian White Certificates scheme: results and lesson learned Alberto Pela Regulatory Affairs GSE ENSPOL EU Observatory Meeting The Hague March

2 Non solo energia elettrica Agenda GSE s role & Italian White Certificates Scheme Results and Lessons Learned - 2 -

3 About Energy Services Operator - GSE MSE Ministry of Economic Development (with others Ministries) MEF Ministry of Economy and Finance AEEGSI Regulatory Authority for Electricity, Gas and Water Guidelines Ownership 100% Decisions Ownership 100% Ownership 100% Ownership 100% Purchase of electricity for small customers Electricity market, natural gas market and environmental markets Research on the energetic system MISSION: GSE promotes the development of renewable energy sources and energy efficiency in Italy, by granting economic incentives and supporting the policy makers - 3 -

4 GSE OUTLOOK AND MAIN ACTIVITIES Managing of different systems for the promotion of RES, CHP and Energy Efficiency (qualifying plants, carrying out technical inspections on plants, issuing incentives, re-selling in the market of the RES-electricity purchased, collecting different types of data from plants through a satellite system, etc.) Support schemes for RES electricity Green Certificates: issuing GC and monitoring compliance of producers and importers obligated; Feed-in Tariff (incentive + compensation for the energy sold) Energy Services for RES and CHP electricity Support schemes for thermal RES and Energy Efficiency White certificates and other specific incentives (i.e: Heating Account)

5 ACTIVITIES GSE REALIZES TECHNICAL INSPECTIONS AND VERIFICATION ACTIVITIES RELATED TO RES AND EE SCHEMES ON-SITE & ADMINISTRATIVE INSPECTIONS: THE ONLINE DATABASE - 5 -

6 The Italian National Energy Strategy and EED implementation Reduction of GHG emissions Ml Ton CO2/anno Energy Efficiency Primary energy Consumption Mtoe 209 RES Development Impact on total consumptions % -20% -24% % % EU target 2020 NES target EU target 2020 NES target EU target 2020 NES target

7 Italian Lgs. Decree 102/2014: Transposition of the EU Dir. 2012/27/EU IMPLEMENTATION OF THE EE DIRECTIVE INTO NATIONAL LAW (LGS. DECREE 102/2014) Article.7- Energy efficiency obligation schemes Expected contributions from the various incentive mechanisms Sectors WhC Regulation & Standard Sustain able Mobility Tax Relief Heating Account Residential X 3% XX - XXX X Services X XX - XXX X Public sector X X 47% - - XXX Industry XXX 33% X Transport X XXX XXX

8 White Certificates Scheme Regulatory framework White Certificates or TEE Energy Efficiency Certificates, are one of the most relevant tools to promote the energy efficiency in Italy: The Scheme, introduced in 2004 (Decree July, 20 th 2004) has been improved during following years (Decrees 21th Dec 2007, May 30 th 2008 and 28 th Dec 2012) electricity and natural-gas distributors with more than 50,000 costumers are required to achieve yearly quantitative primary-energy saving targets, expressed in Tonnes of Oil Equivalent (TOE) saved. White certificates are tradable instruments giving proof of the achievement of end-use energy savings through energy efficiency improvement initiatives and projects - 8 -

9 White Certificates Scheme Regulatory framework The national Decree of 28 Dec have set national quantitative energy-saving targets - incremental over time - for electricity and gas distributors for the years from 2013 to Parties eligible to submit projects for accruing white certificates are: - electricity and gas distributors with more than 50,000 final customers ( obliged parties ) and their controlled companies; - non-obliged distributors; - companies operating in the sector of energy services (ESCOs); - companies or organizations having an energy manager or an ISO certified energy management system in place. Market (national energy stock exchange or bilateral agreements) defines WhCs price

10 Italian White Certificates: only additional energy saving 100 Non additional energy saving Regulation & standard Technological evolution Market 80 Additional energy saving White Certificates 70 Ex-Ante Consumption Baseline Consumption Ex-Post Consumption

11 Italian White Certificates: fulfillment of the obligations Electricity and Gas distributors with more customers can fulfill their obligations of Whc by Obtaining WhC from GSE, through the implementation of energy efficiency projects PURCHASING WHC from third-party SPOT MARKET managed by GME BILATERAL AGREEMENTS with eligible parties (voluntary or obliged)

12 Italian White Certificates: eligible subjects Obliged Parties - (Demand) Volunteer Parties (Supply) Obliged electricity and natural gas distributors Non-obliged electricity and natural gas distributors E.S.Co Energy Services Company Companies with an energy manager, appointed according to Law 10/1991 Companies with an energy manager, appointed on a voluntary basis Companies certified ISO

13 Italian White Certificates: obliged distributors (2015) 13 Electrical Distributors: 4.26 Million of WhC Natural Gas Distributors: 3.49 Million of WhC ENEL S.P.A. 3,64 M.WhC 85% OTHERS 44 Distributors 1,52 M.WhC 44% ITALGAS S.P.A. 0,82 M.WhC 23% 2i RETE GAS S.P.A. 0,67 M.WhC 19% Other 10 Distributors 0,25 M.WhC 6% A2A S.P.A. 0,17 M.WhC 4% ACEA S.P.A. 0,20 M.WhC 5% A2A RETI GAS S.P.A. 0,23 M.WhC 7% HERA S.P.A. 0,26 M.WhC 7%

14 Italian White Certificates: active subjects on scheme (2015) active subjects, 78% E.s.co. - Distributors generate only 4,7% of WhC ,04 3,49 4, , Electrical Distributors Natural Gas Distributors E.S.Co. Energy Manager (Obliged) Energy Manager (Volunteer) ISO

15 White Certificate Trading System: EET Markets Demand REGULATED SPOT MARKET WhC Supply OBLIGED PARTIES PARTIES HAVE TO COMMUNICATE TO GME N OF WHCS PRICE OF EACH AGREEMENT VOLUNTEER PARTIES 3,04 3,49 BILATERAL AGREEMENTS WhC

16 TEE Governance of the scheme and GSE s role DSO Obligated Party Tariff contribution WC Cancelled Company with Energy Manager ESCO Energy Service Company Eligible Subjects to obtain WC WC DSO EE & GAS Iso TEE Offerta TEE Domanda

17 GSE s role in the field of energy efficiency White certificates Since February 2013, GSE is responsible of all the following activities related to WC scheme: MANAGEMENT of the mechanism EVALUATION with the support of ENEA and RSE CERTIFICATION of the savings associated with energy efficiency projects under the white certificates scheme COMMUNICATION activities on energy efficiency projects approved through the istitutional website CONTROL about technical and administrative requirements related to WC projects implemented VERIFICATION on the mandatory aspects related to obliged parties/distributors

18 Results and Lessons Learned

19 White Certificates issued 2006 /2015 Ton saved (2015): 1,733,441 WC issued RVC-C Final RVC-S Standard RVC-A Analytic Total

20 White Certificate Trading System: Prices (year 2015)

21 White Certificates issued, Regional distribution and energy savings (2014)

22 White Certificates issued, Regional distribution (2015)

23 Italian White Certificates: achievements year WhC were issued to the Industrial Sector (64%) Of which: Industrial 64% Civil 32% Lighting 4% (IND-T: Industrial Heat - Industrial processes: generation or heat recovery for cooling, drying, burning, melting) (IND-E: Industrial Efficiency - Industrial processes: efficient dry systems (motors, etc.) automation and power factor measures) (IND-GEN: Industrial Generation - Industrial processes: electricity generation from renewable sources, heat recovery or cogeneration) (IND-FF: Industrial FF Industrial processes: interventions other than the above, for the energy optimization of production processes and plant layout designed to achieve a lasting energy consumption reduction normalized by quantity and quality of production)

24 Lesson Learned - High participation from Private Sector thanks to ESCO involvment (see also mandatory Quality Certification) - Both WhC market s options are useful and considered by the obliged parties -Mechanism evolved over the 10 years of experience (Civil sector -> Industrial sector) -Most effective support scheme (in term of /ton saved) -The market selects the technologies and sectors -WhC Prices are transparent and public - The Industrial sector recognizes in the Whc Scheme a stable investment opportunity - Importance of Verification and measuring activities - High quality and reliability of Technical documents related to Energy savings projects - Frequency of redesign (see regulatory framework) - Information activities are strategic

25 alberto.pela@gse.it

26 Back up

27 Italian White Certificates: evolution over 10 years of implementation

28 Italian White Certificates: Method of evaluation of Energy Savings Deemed Saving (RVC-S) Subject matter = defined by decree Additionality = defined by decree Energy saving = estimated Analytical (RVC-A) Subject matter = defined by decree Additionality = defined by decree Energy saving = measured Energy Monitoring Plans (PPPM & RVC-C) Subject matter = customized, proposed by eligible subjects. Additionality = proposed by subjects and evaluated by GSE Energy saving = measured and calculated by algorithm proposed by subjects and evaluated then approved by GSE. Only after the approval of the PPPM, the subject can presents RVC-C to obtain White certificates in the amount corresponding to the energy saving measured and communicated with the RVC-C

29 Italian White Certificates: Focus on Energy Monitoring Plans ESCO or Company with an Energy Manager An eligible subject identifies potential energy savings projects. PPPM Proposta di Progetto e Programma di Misura The subject elaborates a PPPM (Monitoring plan project proposal). PPPM is the proposal used by proposers to require the approval of an energy saving project; if it is accepted by GSE it is followed by an RVC RVC Richiesta di verifica e di certificazione dei risparmi RVC (Request for verification and certification of savings) certifies the energy saving reached at the end of the project implementation. The measurements of the energy saving are provided to GSE to obtain WhC.

30 Italian White Certificates: Focus RVC Period The period concerning each RVC is not fixed by regulations but it s decided by proposer. Consequently WhC issued in a Year (i.e. 2015) could be related to different periods of energy savings, from 1 quarter up to 5 years. a) 1 RVC per year RVC 1 RVC 2 RVC 3 RVC 4 RVC 5 b) 1 RVC in 5 years RVC 1 c) 2 RVC in 5 years RVC 1 RVC 2 Year 1 Year 2 Year 3 Year 4 Year

31 Italian White Certificates: Focus on financial revenues INDUSTRIAL PARTNER They can share with their Industrial partners the financial revenues (private agreements) 5 2,48 WhC 1 Energy Efficiency Titles 2 ESCO or Company with an Energy Manager 3,49 3 MARKET They can sell the WhC to the obliged parties via Bilateral Agreements or EET Market

32 White Certificate Trading System: Market Operators Approx operators listed on Whc Register of which more than 1000 are also market operators Operators of trading system 1 operator buys more than 40% of the Whc Spot market Demand (II semester 2015) 10 operators sell 40% of the Whc Spot market Supply (II semester 2015)

33 Calculation of white certificates Net saving (NS): gross savings, net of nonadditional energy savings. Net saving integral (NSI): the net savings that are expected to be achieved over the technical life of an intervention and applying the decay rate per annum; it is the sum of two components: the net savings achieved in the course of its useful life (net savings contextual, NSC) and the net savings achieved by the end of its life, at the end of the technical life of the intervention itself (net savings anticipated, NSa);

34 Calculation of white certificates Durability coefficient ( ): is a positive coefficient, equal to the ratio between the net integrated value and the net saving value, calculated with reference to the useful life of the same. The value is defined by type of intervention on the reference sector (civil, industrial, commercial) and ranges from 1.87 to 4.58 (interventions on the building). Additionally: the conditions of the pre-installation does not represent, in general, the market average solution. Only the share of lower consumption of components compared to 'medium' available on the market that are suitable to perform the same function is useful for the quantification of savings