French white certificate scheme

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1 French white certificate scheme Marie Pausader Energy savings and Renewable heat unit Ministry of Environment Energy and the Sea Ministère de l Environnement, de l Énergie et de la Mer

2 Final energy consumption Decreasing since 2001 : Ambitious targets set in the law: -20% of energy consumption in 2030 compared to 2012 (about -32% compared to reference scenario - PRIMES 2007) Source : SOeS 2

3 Article 7 implementation Mainly via our EEO scheme: Already in place when EED was voted Seemed more simple to adapt an existing tool rather than create new tools 3

4 White certificate scheme Obligation : On energy suppliers, based on their energy sales Measured with a number of white certificates Fulfilled by the corresponding number of white certificates vs. financial penalty (2 c /missing WC) 3-year period White certificates : Received by an energy supplier or an eligible actor for implementing energy saving measures towards energy consumers, in all sectors (residential, tertiary, agriculture, industry, transports, etc.) May be freely traded on the national registry Final energy savings CUMulated over the lifespan of this action and annually discounted with a 4% ACtualization rate : 1 WC = 1 kwh CUMAC 4

5 White certificate scheme Evolutions since 2006 : Inclusion of transport fuel suppliers 1st period 2nd period 3rd period July 2006 June 2009 January 2011 January 2015 January TWhc 460 TWhc 700 TWhc New obligation on fuel poverty 5

6 White certificate scheme Restrictive list of eligible applicants (in order to simplify the scheme) : Energy suppliers with an obligation Local and regional authorities Public housing companies and the ANAH (national agency of housing) Active and incentive contribution in the realization of the energy saving action, targeted individually The energy supplier can choose freely the nature of his contribution (giving financial incentives, providing a free energy audit, ) 6

7 White certificate scheme All actions taken except installation covered by the European Emission Trading Scheme (ETS) Standardized actions (90%) For frequent actions Worksheets conceived by stakeholders and approved by administration ( >150) Minimum quality criteria for products or contractors (should be beyond legislation) Provides standardized amount of white certificates for the action Specific actions (5%) Contribution to information /formation /innovation programs 7

8 White certificate scheme Elements of costs: Dedicated verification and control = pax Regulation = 1.5 pax Expertise (Agency) = 2 pax Registry = 4 pax 2-4 / MWhc limited impact on energy prices ~1% [0,7-1,4%] Around 700 M /yr for

9 Energy savings achieved in 2014 White certificates issued for actions implemented in 2014 Tertiary 25% transport Networks 0% Industry 15% 1% % WC Agriculture 2% Residential 57% % of energy savings in 2014 insulation (roofs) 10,2% 6,2% insulation (walls) 8,1% 5,0% condensing boiler 7,7% 7,5% insulation (roofs) - tertiary 6,9% 4,2% large condensing boilers 6,3% 5,1% 4E+09 3,5E+09 3E+09 2,5E+09 2E+09 1,5E+09 1E WC for actions implemented in <LT<5 6<LT<10 11<LT<15 16<LT<20 21<LT<25 LT>25 9

10 Accounting energy savings for art 7 - Identify actions implemented on year y - Remove bonuses and actions not in accordance with EED - For each action, calculate the energy savings for years y to 2020 taking into account the lifetime of each specific action - Aggregate the results 10

11 Accounting energy savings for art 7 - Different units in FR EEO scheme and EED - Different rules => New accounting procedures to develop (still not finalized) 11

12 Accounting energy savings for art 7 CEE issued in 2014: 242 TWhc 184 TWhc «EED valid» year annual savings (LT >y-1) kwh discounted TOTAL ,6 TWh of energy savings from 2014 to 2020 But also 68,8 TWh from 2021 to 2030, 20 TWh from 2031 to

13 Accounting energy savings for art cumul CEE 15,42 13,39 12,86 12,26 11,74 10,89 9,99 86,59 8,01 6,15 5,92 5,65 5,41 4,82 122, , , , , ,54 Total (TWh) 122,54 Total should be at least 365 by

14 Challenges Adapt to EU rules: - Ecodesign requirements => reduces WC for boilers / heatpumps - limits WC to energy savings, not considering whether remaining energy consumption is renewable or not - Remove actions initiated before 2014 and impacts after Carry-over (not limited in FR) => lots of actions initiated in 2013 in prevision of future objectives and less actions in 2015/2016 than expected 14

15 Useful links More information about the white certificate scheme available (in French) on the ministry website : Regarding energy efficiency in general, 2014 NEEAP and annual reports available (in English) at the following link : 15

16 Thank you for you attention!

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