Romania. The First National Action Plan in the field of Energy Efficiency (NAPEE)

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1 Romania The First National Action Plan in the field of Energy Efficiency (NAPEE) Veronica Petri Institute for Studies and Power Engineering Bucharest, Romania

2 Challenges Challenges at national and international level: Increase of economic competitiveness Security of energy supply Decrease of environmental impact including diminishing of climate changes effects Romania must past the gap to EU developed countries economic performances The final energy intensity in Romania is 1.4 times greater then the EU average (final energy intensity established by correcting GDP with the buying power parity) Necessity: increase of energy intensity Decrease of primary energy consumption of fossil fuels: RES promotion International agreements: Kyoto Protocol

3 Main Legislative Framework Energy Efficiency RES Climate Changes Law no 199/2000 regarding the efficient use of energy (modified and completed by Law no 56/2006) setting the necessary legislative framework for performing and applying of the national policy of efficient use of energy GD no 163/2004 regarding the approval of the National Strategy on Energy Efficiency identifies the possibilities and means for increase of energy efficiency on the whole chain, by implementing adequate programs GD no 1535/2003 regarding the Strategy for Valorification of RES + GD no 443/ regarding the promotion of electricity from renewables amended by GD no. 958/2005 (transposing the Directive 2001/77/EC) assure the legal framework for RES promotion, with direct effects on the decrease of final energy consumption Law no 3/2001 for ratifying the Kyoto Protocol at UNFCCC Romania must reduce the GHGs emissions in the period by 8% comparative to the 1989 The entire acquis on energy efficiency was taken over by the national legislation.

4 Institutional Framework Energy Efficiency 1990 setting up of Romanian Agency for Energy Conservation the specialised authority at national level in the field of energy efficiency, within the Ministry of Economy and Finance setting up of National Energy Observatory in charge for data base and for establishing the main energy efficiency indicators for Romania 2003 beginning of operation of Romanian Fund for Energy Efficiency which is financing under commercial conditions the industrial companies and other energy consumers, to facilitate their efficient energy use projects financing Other institutions / ministries with charges in the energy efficiency field: Ministry of Economy and Finance applies the Government policy in the energy sector, including the energy efficiency and RES fields Ministry of Development, Public Works and Housing for housing Ministry of Environment and Sustainable Development Ministry of Interior and Administrative Reform for local administration Ministry of Transport- for transport sector

5 Institutional Framework Climate Change Ministry of Environment and Sustainable Development (MESD) develops and carries out the state policy related to the protection of the environment, including climate changes has been assigned UNFCCC Focal Point co-ordinates the implementation of the flexible mechanisms under the Kyoto Protocol, JI and IET National Environmental Protection Agency (NEPA) co-ordinates the elaboration, implementation and monitoring of environmental strategies and action plans at national, regional and county level National Commission on Climate Change operates as the main advisory body to the MESD on decisions regarding climate change policy Regional and local authorities play an important role in the implementation of local policies and measures in reducing the carbon intensity of the Romanian economy Some research institutions currently support the government in developing and implementing climate change policies: the National Research and Development Institute for Environmental Protection the National Administration for Meteorology the Institute for Research on Forestry Management

6 Institutional Framework RES National Authority for Energy Regulation Ministry of Economy and Finance - applies the Government policy in the energy sector, including RES field System and Transport Operator for Green Certificate market operation

7 The National Strategy in the field of Energy Efficiency Energy efficiency is a main component of the national energy policy Strategy scope to identify the possibilities and means for the increase of the energy efficiency on the entire energy chain, by implementing adequate programs The strategy gives the directing lines, the annual programs for energy efficiency increase and the possible financing sources being identified

8 The National Strategy in the field of Energy Efficiency Basis of the Strategy objectives It was evaluated the potential of the energy efficiency increase, under different scenarios of economic and social development in Romania scenarios for increase of macroeconomic indicators (GDP, population, etc) primary energy need scenarios for reducing of primary energy intensity: optimist, moderate, pessimist It was considered the tendency of the energy efficiency annual increasing without adopting special measures For each scenario of macroeconomic indicators evolution (ex.gdp) there were determined: the evolution of the domestic primary energy consumption in the scenarios of primary energy intensity reduction the necessary percent of supplementary reduction of the energy intensity, having in view the target the directions for action the necessary investment The selection of measures for energy intensity reduction was performed by Cost-Benefit analysis

9 Romania s Target for Final Energy Saving The target for EU Member States, according to 2006/32/EC Directive: reduction of the final energy consumption by at least 9% in the period , comparative with the average consumption in the last five years for which there are available data For Romania, the period is In establishing the target, it was taken into consideration the energy saving potential in Romania, based on the National Strategy in the field of Energy Efficiency, in the economy sectors within the scope of 2006/32/EC Directive, respectively industry (other branches then those included in the National Allocation Plan), residential, tertiary and transport Final energy consumption, average value in the th tep 2005 period Target of 9% energy saving till th tep According to 2006/32/EC Directive Target of 13.5% (1.5% annual) energy saving till th tep Adopted by Romania Intermediate target of 4.5% (1.5% annual) energy saving till th tep In establishing the energy saving target for Romania it was taken into consideration the high value for energy intensity in the national economy (0.358 tep/1000 EUR in 2004, comparative with tep/1000 EUR as average EU25 in 2004) The average annual decrease of final energy consumption in period will be 1.5%, 50% higher then the minimum value required by 2006/32/EC Directive

10 Specific Aspects in National Target Calculation The data regarding the final energy consumption in period officially statistically data the official statistics in Romania is organised and co-ordinated by the National Institute for Statistics, subordinated to the Government the National Institute for Statistics is responsible for sending the official data to EUROSTAT

11 Romania s Target for RES Benefits: diversification of supply, diminishing the imports of energy resources, sustainable development of the energy sector, environment protection Under meteorological and geographical conditions in Romania, the medium and long term energy balance takes into consideration the followings renewable energy sources: solar, wind, hydro, biomass, geothermal RES targets: domestic gross energy consumption: 15% in 2020 electricity consumption: 38% in 2020 (including the 10% target for biofuels) Basis for RES target: evaluation of the technical and economic exploitable potential for each resource type analysis of the possible technologies evaluation of the necessary investment estimation of the primary energy resources saving diminishing the fossil fuels import Financing the investment projects for RES: attracted funds EU special programs flexible mechanisms of Kyoto Protocol (JI)

12 Romania s Target under Kyoto Protocol Romania was the first country included in the Annex I of the UNFCCC (developed and economies in transition countries) which ratified the Kyoto Protocol to the UNFCCC Romania committing itself to reduce the GHG emissions with 8%, in the first commitment period , comparing to the base year (1989) 1989 as base year - this year expressed the best Romania s economic output potential directly connected with the Romania s emissions potential The progress in implementing the UNFCCC and the Kyoto Protocol: the total GHG emissions of Romania (without sinks), calculated in CO2 equivalent, decreased with 46% in the period Romania will achieve the Kyoto Protocol s 8% GHG emissions reduction target in the first commitment period, even considering the slight increasing trend of the GHG emissions noticed after 1999 Concrete actions: the first National Strategy on Climate Change of Romania based on a capacity building project financed by the Danish Environmental Protection Agency (DEPA) the National Action Plan on Climate Change elaborates further the individual policies and concrete measures to be developed and implemented under the National Strategy on Climate Change bilateral co-operation programmes with various Annex I countries (Switzerland, the Netherlands, Norway, Denmark, Austria, Sweden, France) and the Prototype Carbon Fund established by the World Bank. There are 8 MoU on co-operation under Article 6 of the Kyoto Protocol for Joint Implementation (JI) projects implementation of the EU ETS

13 The measures for energy efficiency improvement included in the first NAPEE Measures categories Regulations Information and legislative measures Information campaigns Energy audit Voluntary agreements Energy services for energy saving Third part financing Energy performance contracts Financial instruments Subsidies Tax exemptions for construction authorisation for thermal rehabilitation works Co-financing Energy efficiency mechanisms and other combinations between the other sub-categories Romanian Fund for Energy Efficiency is financing under commercial conditions industrial companies and other energy consumers, in order to facilitate the use of technologies for energy efficient use Romanian Fund for Energy Efficiency is operating from Till now, 18 financing contracts were concluded In 2006, annual energy savings were 9,884 tep, equivalent of 38,427 t CO2 Financing schemes to be performed in partnership with EBRD

14 The measures for energy efficiency improvement included in the first NAPEE Sectors measures Industry sector has an important saving potential within a SAVE study Schemes and measures for implementing in Romania the industry specific Long Term Agreements, performed during , the voluntary agreements were identified as one of the most efficient instruments for obtaining the engagement of industry in the increase of the energy efficiency energy management activities, together with investment in the measurement and control equipment for energy consumption Transport sector promoting the use of biofuels modernisation of passengers and freight trains and of the metro Residential sector it will be continued of the thermal rehabilitation program of the multi-stage buildings it will be issued the energy performance certificate for new buildings beginning with 2007 it will be issued the energy performance certificate for existing buildings beginning with 2010 Public lighting replace of the old lighting apparatus with new ones, more energy efficient replace of the low performance equipment introducing the installation for light flow decrease on the main routes in the period with low traffic The use of local RES for electricity and heat production for end consumers will be promoted by a legislative initiative which will stimulate investment having as target the increase of energy efficiency trough using renewables

15 The control of energy savings According to 2006/32/EC Directive, art. 4.(4): Member States shall assign to one or more new or existing authorities or agencies the overall control and responsibility for overseeing the framework set up in relation to the target. These bodies shall thereafter verify the energy savings as a result of energy services and other energy efficiency improvement measures, including existing national energy efficiency improvement measures, and report the results. In Romania, there were established two responsible authorities for control and supervision at national level: Ministry of Environment and Sustainable Development for energy efficiency in buildings Romanian Agency for Energy Conservation - for energy efficiency in other fields These bodies: have the responsibility of supervisory the framework established for the energy saving national target verify the resulted energy savings report the results

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