Scaling Up Energy Efficiency Experiences from Germany

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Augustine Wilcox
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1 Scaling Up Energy Efficiency Experiences from Germany Dr. Georg Maue/ Division IIB1- General issues of energy efficiency Paris, May 10th, Referent 1

2 Source: Federal Government 2010, BMU/BMWi 2014, BMWi 2015, AGEE-Stat 2014, AGEB 2015, BMWi Energiewende targets Achieved Climate % greenhouse gas reduction (vs. 1990) -27% to -95 Renewable Energies Energy Efficiency % gross electricity consumption % gross final energy consumption % primary energy consumption (vs. 2008) final energy productivity (vs. 2008) building renovation % transport energy consumption (vs. 2008) 32.6% (2015) 13,7% % (2015) 1.7% p.a. ~1% p.a. 1.7% to to % p.a. ( ) doubling of renovation rate: 1% 2% p.a. The energy transition follows a transparent, long-term strategy with specific targets Speaker 2

3 Efficiency Policies - categories 1. Awareness: information and consulting services 2. Financial incentives: 3 billion p.a. (2 billion alone for CO2 building modernization programme; provision of grants & lowinterest rate loans) 3. Regulation (building codes, ecodesign & labeling directive, energy audits in industry, ETS) 4. Energy taxation IEA: Germany avoided 30 billion USD of fossil fuel imports in 2014 alone as a result of energy efficiency investments since 1990 (all IEAmembers: 80 billion USD)

4 Source: Ecofys 2015 Main federal-level energy efficiency measures taxation regulation financial incentives information & consultation Buildings Energy saving legislation KfW progammes for Buildings construction Labelling (EU Directive Fuel Economy) Products & appliances Regulation of consumption Motor vehicle taxation Energy Efficiency Labelling E-mobility strategy Ordinance Mobility and fuel National strategy Top Runner Initiative Industry and business Industry and business Obligatory energy audits KfW credits and loans Energy consulting services Transport Transport Motor vehicle taxation Regulation of consumption Energy efficiency policies find a balance between consultation, information, incentives and regulation Speaker 4

5 Key pillars of the National Action Plan on Energy Efficiency Stepping up energy efficiency in buildings Energy efficiency as a return and business model Individual responsibility for energy efficiency All the measures under the NAPE adhere to a common principle: supply information - provide support - demand action. 5

6 Source: Ecofys 2015 based on BMWi 2014 NAPE: Additional energy efficiency measures in Germany Quality assurance and optimising energy consulting Savings in PJ Incentives for energy-efficient renovations (total savings not clear) Upgrading, continuation and increased funding of the CO2 building renovation programme Promoting energy performance contracting National energy-efficiency label for old heating installations Upgrading the KfW energy efficiency programmes Energy efficiency networks initiative Obligation to perform energy audits for non-smes National top runner initiative Introduction of a competitive tendering scheme for energy efficiency Additional immediate measures These measures shall lead to additional energy savings of PJ by

Source: Fraunhofer IBP, BMWi 2014 Learning curves in energy efficient buildings Minimum requirements (WSVO/EnEV) Solar houses Current building practice Low-energy houses

7 Source: Fraunhofer IBP, BMWi 2014 Learning curves in energy efficient buildings Minimum requirements (WSVO/EnEV) Solar houses Current building practice Low-energy houses State of the art Research Pilot phase 3 litre house Zero-energy buildings Plus energy house Building efficiency regulation follows the technical learning curve to stay ambitious. 7

8 NAPE - Innovative approaches Tendering scheme (using competition to define scope of incentives and technologies) 500 energy efficiency networks of companies (building awareness and capacity through business-to-business exchange in networks) Energy performance contracting (public guarantees for contracting projects by SMEs and public authorities) Metering savings programme (supporting digital services to measure savings)

9 Source: Fraunhofer ISI, IREES and Hassan 2013 Industrial efficiency: challenges and measures Barriers Amortisation requirements Operational write-offs Financing Upfront-investment Lack of information and time Measures KfW credits and loans Grants for cross-cutting technologies and energy efficient production processes Competitive tendering Energy audits Energy management systems Energy efficiency networks Some barriers still inhibit the implementation of economically-viable energy efficiency measures Speaker 9

10 Source: Ebert, Essig & Hauser 2010 The rebound effect in homes Energy-efficiency gains are offset by the rebound effect, hence higher energy savings are necessary

11 GIZ bilateral Energy Efficiency Projects 2015 Ongoing EE projects, current contract volume: approx. EUR 160 Million (2015)

ing promotional policies (e.g. energy conservation legislation) Developing sector- and industry-specific strategies Shaping incentive systems and

12 GIZ s multi-level activities on energy efficiency (examples) Macro Meso Micro Designing promotional policies (e.g. energy conservation legislation) Developing sector- and industry-specific strategies Shaping incentive systems and financial mechanisms Appraising technology potential Techn. standards, methodology, quality assurance Initial and advanced training of energy experts (e.g. auditors) Developing service markets Establishing networks and platforms Awareness-raising and technology roll-out campaigns Promoting innovation processes Information and education services Performing pilot and lighthouse projects

Energy Efficiency Networks Introduction I/II

a big variety of topics Lighting Cultivate Behavior

specific expertise Air/Compre ssor Energy Efficiency

System Process/ Tooling Improve Responsible energy

13 Energy Efficiency Networks Introduction I/II Challenge of Energy Saving Energy efficiency touches a big variety of topics Lighting Cultivate Behavior Energy efficiency solutions require diverse and specific expertise Air/Compre ssor Energy Efficiency HVAC Energy efficiency is not a core business Control System Process/ Tooling Improve Responsible energy managers tend to have difficulties to cope with the challanges Energy at GIZ

14 Asia: Example Country India Impacts and Success Factors Impacts / Approaches: Over 10,000 energy auditors have been trained and certified The energy efficiency website has had more than 3 million hits and over 40,000 users Analysis tools that have been introduced in 85 conventional power plants ensure efficient energy generation Implementation of super critical power plant technology (- 1.8 million t CO 2 per year) Establishment of impact-oriented support programmes for SME and residential buildings (minimum savings of at least 30 %) Implementation tool for energy evaluation of buildings (5 large building projects of 220 buildings have been certified to date) Challenges Energy Efficiency

Example Country China Topic: Transformation from energy utility to energy service provider Partner: State Grid Corporation of China Largest utility in the world (1.

15 Example Country China Topic: Transformation from energy utility to energy service provider Partner: State Grid Corporation of China Largest utility in the world (1.1 billion costumers - 85% of China) Framework: DSM directive 0.3% of annual sold energy in energy conservation measures Major impacts Energy service business unit founded (27+1 ESCos) > 500 energy audits performed > 550 energy efficiency networks founded > 1000 people employed in EE business unit at SGCC > 750 MW reduction in peak load 29 February 2016 Energy at GIZ

16 Thank you for your attention!

17 Thank you for your attention! Its efficient to cut down on your expenditures for heating, Not for traveling

Scaling Up Energy Efficiency Experiences from Germany Andere; 0,49

Scaling Up Energy Efficiency Experiences from Germany Andere; 0,49 power generation; 21% upstream CH4 reductions; 18% energy efficiency, 49% industrial motors; 14% appliances and lighting; 14% heating