Belgium Energy efficiency report
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- Eleanore Robinson
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1 Belgium Energy efficiency report Objectives: 27.5 TWh of end-user energy savings in 216, including 2.8 TWh in industry Overview - (%/year) Primary intensity (EU=1)¹ % - CO 2 intensity (EU=1) % ++ CO 2 emissions per capita (in tco 2 /cap) % ++ Power generation - (%/year) Efficiency of thermal power plants (in %) % + Rate of electricity T&D losses (in %) % -- CO 2 emissions per kwh generated (in gco2/kwh) % ++ Industry - (%/year) Energy intensity (EU=1) % ++ Share of industrial CHP in industrial consumption (in %) 9-9.1% ++ Unit consumption of steel (in toe/t) % ++ * and - for steel ++ Among the best performing countries + Above the EU average 1 - Below the EU average 1 --Among the worst performing countries Latest update: March The European Union, as the best performing region, is used as the benchmark.
2 1. Overview 1.1. Policies: 9% energy savings target for 216 Belgium has adopted a National Energy Efficiency Action Plan -216 (NEEAP) which sets an energy savings target of 27.5 TWh (319.7 Mtoe) for 216 in buildings, transport and small industries (excluding sectors under ETS). A second NEEAP, still based on the 216 energy savings target set out in the first NEEAP, was adopted in. The new NEEAP includes additional measures for the energy sector and for Flanders. Energy efficiency measures planned in the three regional NEEAPs are expected to save a total of 35.8 TWh by 216. Of these savings, 57 percent should be achieved in the residential sector (buildings), 17 percent in transport, 11 percent through cogeneration and renewables, 8 percent in industry and 7 percent in other sectors. Around 7 percent of the planned energy savings should be achieved in Flanders, 23 percent in Wallonia and 7 percent in Brussels-Capital. There is no federal energy agency for energy efficiency. Each region develops its own set of incentives and regulations regarding energy efficiency. At the federal level, in the National Reform Program set an energy savings target of 18 percent by 22 compared with, which corresponds to a 9.8 Mtoe reduction in primary energy consumption by Energy consumption trends: above-average consumption levels Overall energy consumption per capita is 62 percent higher than the EU average: 5.3 toe compared with 3.3 toe for the EU in. The difference is mainly due to industry, which has a higher per capita energy consumption rate than average in the EU. Total energy consumption grew by 2 percent/year between and and then remained stable until, at around 58 Mtoe. It was impacted by the global economic crisis in and, despite a strong rebound in. Figure 1: Total and final energy consumption trends 7 6 Other Industry Power generation 5 Mtoe Industry accounts for a substantial share of energy consumption, with 3 percent (including non-energy uses) in compared with 32 percent in. The power sector accounts for just 12 percent, roughly, of total energy consumption (14 percent in ). Changes in the thermal generation mix (replacement of coal by gas) resulted in a significant reduction of the market share of coal in total energy consumption and a higher penetration of gas: coal accounted for just 4 percent in (22 percent in ) and gas for 25 percent (17 percent in ). Primary electricity, mainly consisting of nuclear, accounts for 17 percent of energy consumption. Belgium Country reports 2
3 Electricity consumption per capita is about 7,65 kwh, which is one third higher than the average consumption in European countries (). Total electricity consumption increased at the regular pace of 2.4 percent/year between and and then remained stable until. It dropped dramatically in when the Belgian industry was hit by the economic slowdown and has remained below its pre-crisis level since then. The industrial sector accounts for a large share of total electricity consumption, with around 48 percent of the total in. That share has shrunk since, when it accounted for 54 percent, due to the strong growth in electricity consumption in the residential and services sector (+2.2 percent/year between and ). Figure 2: Electricity consumption trends by sector TWh Industry Others 1.3. Energy efficiency trends: more rapid decrease in energy intensity since Belgium s total energy consumption per unit of GDP is high. Measured at purchasing power parity, it is 36 percent higher than the EU average. Energy intensity in Belgium has decreased by around 1.4 percent/year since, which is slightly slower than the EU average (1.6 percent/year). The decrease was mainly driven by the industrial sector (7 percent of the decrease) and, to a lesser extent, by the power generation sector (13 percent contribution). Since, the pace of reductions in energy intensity has accelerated. Figure 3: Energy intensity trends.% - - %/year -.2% -.4% -.6% -.8% -1.% -1.2% -1.4% -1.6% -1.8% Other sectors : buildings, transport and agriculture Industry Power generation Belgium Country reports 3
4 2. Power generation 2.1. Policies: green certificates and promotion of CHP According to energy efficiency measures detailed in the regional NEEAPs (), by 216 up to 3.9 TWh should be saved in the energy sector, half of which in Flanders and half in Wallonia. In Flanders, 1.4 TWh should be saved through the promotion of high-efficiency cogeneration (cogeneration certificates system) and.6 TWh through the diffusion of PV panels (green certificates and subsidies). In Wallonia, 1.6 TWh should be saved through green certificates for renewables and CHP and.4 TWh through CHP subsidies Efficiency of the power sector: large increase in the sector s energy efficiency The efficiency of thermal power plants has been improving rapidly, from 36 percent in to 43 percent in. That improvement was mainly linked to the switch from coal to natural gas in the power mix (22 percentage point decrease in the share of coal, offset by a similar increase in gas), together with the spread of gas combined cycle plants, which now account for around 47 percent of the thermal electricity capacity (). The average efficiency of the power sector is much lower because of the high share of nuclear power, which has an efficiency of just 33 percent. Nevertheless, driven by the energy efficiency progress in thermal power plants it has increased regularly since, reaching 38 percent in. Figure 4: Efficiency of the power generation and thermal power plants Figure 5: Thermal electricity capacity, by technology Steam Gas turbines Combined cycles % Total power generation Thermal power plants GW Belgium Country reports 4
5 The rate of transmission and distribution losses (T&D) in the Belgian grid is low, dropping from 5.7 percent in to 4.7 percent of the distributed volumes in. That rate is 27 percent lower than the EU average. Figure 6: Electric T&D losses % Belgium Country reports 5
6 3. Industry 3.1. Policies: voluntary agreements and tax deductions for energy efficiency investments According to energy efficiency measures detailed in the regional NEEAPs (), up to 2.8 TWh should be saved in industry by 216, 1.8 TWh of which in Flanders (mainly through a benchmark agreement) and 1.1 TWh in Wallonia (mainly through branch agreements). At the national level, tax deductions for energy-saving investments in businesses are the only measure aimed at promoting energy efficiency in industry. Industrial energy efficiency policies are implemented at the regional level through voluntary agreements with each regional government. In the Brussels area, voluntary agreements were introduced in. Flanders adopted a benchmark agreement, including a commitment to bring the energy efficiency to the world top ten by 212 (172 companies). Flemish industrial companies with an annual energy consumption of more than.5 petajoules (PJ) (approximately equal to 139, MWh of electricity) have to establish an energy plan involving energy savings measures with an internal rate of return (IRR) of 15 percent after tax. These measures have to be taken within the four years following the approval of their energy plan. In Wallonia, 13 sector associations (around 16 companies) signed a voluntary agreement under which they committed themselves to a quantified energy efficiency improvement over the period Green certificates and a system of quotas were implemented to promote cogeneration in (Wallonia) and (Flanders and Brussels region). In Flanders, the quota for cogeneration was 1.19 percent in and is raised every year, up to a level of 1.5 percent in 215 (8.6 percent in 213). Plans have been adopted to increase the share to 11.2 percent between 216 and 219 (9.3 percent in and 7 percent as of 221) Energy consumption trends: drop in industrial energy consumption Industrial energy consumption increased by 1.6 percent/year between and. Since then it has decreased by 2.6 percent/year, with a noticeable 19 percent drop in (-6 percent in ). Figure 7: Trends in industrial energy consumption Mtoe Natural gas accounted for 44 percent of industrial energy consumption in, up from about 24 percent in. The share of electricity has also grown, from 22 percent in to 31 percent in. The use of coal was scaled down to 1 percent, compared with around 38 percent in. Oil also accounts for a decreasing share in the sector s consumption: it currently represents 5 percent of overall consumption, down from around 13 percent in. The use of biomass is growing steadily and accounted for 6 percent of overall industrial consumption in. Belgium Country reports 6
7 Energy-intensive industries account for more than 7 percent of the sector s energy consumption (75 percent in ). Chemicals represent an increasing share of the total: 37 percent in, compared with less than 19 percent in. The share of the steel industry was drastically reduced from 4 percent in to 19 percent of industrial energy consumption in. The non-metallic minerals industry (cement, ceramics, etc.) has a slightly declining market share of 8 percent (12 percent in ), while the share of the paper industry has nearly doubled, from 4 percent in to 7 percent in. Figure 8: Energy consumption of industry, by source Figure 9: Energy consumption of industry, by branch 1% 1% 9% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Biomass 8% 7% Heat 6% Electricity 5% Gas 4% Oil 3% Coal/Lignite 2% 1% % Other Paper Non metallic minerals Chemical Steel 3.3. Energy intensity trends: increase in industrial energy efficiency Energy consumption per unit of industrial value added (energy intensity) has been decreasing at the rapid pace of 2.3 percent/year since, ie at a faster pace than the EU average (1.8 percent/year). Since, an above-average fall in the energy consumption per ton produced (specific consumption) was seen in the steel industry (4.3 percent/year). The cement industry s specific consumption fell moderately (.3 percent/year). By contrast, the chemical industry has shown a slight increase in the amount of energy consumed per unit of valued added (1.5 percent/year). The same trend was observed in the paper industry (+3.1 percent/year since ). Figure 2: Trends in the energy intensity of industrial branches 4.% 3.% 2.% %/year 1.%.% -1.% -2.% -3.% -4.% -5.% - - Total* Steel Chemical Cement Paper *Including construction and mining, Odyssee Belgium Country reports 7
8 The share of CHP generation in industrial electricity consumption has surged since, indicating the widespread dissemination of the technology in the sector. In, CHP accounted for 9 percent of industrial electricity consumption, up from 3 percent in. Figure 11: Share of industrial CHP in industrial consumption 12% 1% 8% 6% 4% 2% % Between and, the energy intensity of the manufacturing industry (ie excluding mining and construction) showed a 1.7 percent/year decrease. This decrease is the result of energy efficiency trends in each individual branch, as measured from the reduction in the energy intensity at constant structure, as well as by changes in the structure of the value added; energy efficiency improvements contributed 2 percent/year, while structural changes towards more intensive branches offset part of those improvements by increasing the intensity of manufacturing by.3 percent/year. Figure 3: Trends in the energy intensity of manufacturing and structural effect.5%.% -.5% - %/year -1.% -1.5% -2.% -2.5% -3.% Real variation Change at constant structure Structural effect Belgium Country reports 8
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