EEOS in Italy Alberto Pela, Regulatory Affairs - GSE. Albert Borschette Conf. Centre - Brussels November, 2016

Transcription

1 EEOS in Italy Alberto Pela, Regulatory Affairs - GSE Albert Borschette Conf. Centre - Brussels November, 2016

2 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 - 2 -

3 Non solo energia elettrica Agenda EU & National Regulatory Frameworks Italian EEO & EEA Art 7 Measures National results Art 7 EED Energy Savings achieved The Italian White Certificates Scheme - 3 -

4 EU Regulatory Framework Overview The EU Commission adopted the Energy efficiency plan 2011 which was followed in October 2012 by the Directive on EE (2012/27/EU) setting out national EE targets. In Italy the EED provisions have been fully transposed into national laws through the Lgs. Decree n. 102/2014 The Italian EEO & EEA schemes should generate cumulative savings of Mtoe (60% of which should result from the white certificate mechanism)

5 Art 7 Measures Italian EEO & EEA schemes - 5 -

6 National EEO & EEA Art 7 Measures N.B. The above savings are a share of the fixed targets under Art 7 and notified to the EU Commission. Moreover in evaluating the savings, no account was taken of the effects of implementing the rules under EU Directives EPBD and Ecodesign. Also, the expected savings do not include the contribution of energy efficiency policy measures promoted at local level i.e. structural funds

7 National EEO & EEA Art 7 Measures White Certificates National EEO The WhC scheme is expected to give a contribution to 60% of the national target in 2020-EED. The main objective of the Italian WhC scheme is the reduction of primary energy consumption through the implementation of energy efficiency projects. electricity and natural-gas distributors with more than costumers are required to achieve yearly quantitative primary-energy saving targets, expressed in Tonnes of Oil Equivalent saved. Factor that influenced the selection of the policy mix implemented under Article 7: The Italian WhCs Scheme has completed its 10th year of implementation: the foreseen energy saving targets have been achieved and new one have been identified. The WhC Scheme, introduced in 2004 has been improved during following years (Decrees 21th Dec 2007, May 30th 2008, 28th Dec 2012, 4 July 2014 n. 102)

8 National EEO & EEA Art 7 Measures In addition to the WhCs scheme, as complementary measures art7 (9) the following EE alternative measures have been introduced: 1-Conto termico (Thermal Account): Incentive system for small interventions to increase EE and to produce thermal energy from renewable sources (up to 65% for costs related to NZEB buildings, up to 40-50% for new building shells, replacement of heating plants, replacement or installation of equipment). Financial Availiability: 900 MLN Eur. The incentive will be paid in yearly instalments over a variable support period (2 to 5 years or 1 year if the total investment cost is < 5,000 EUR), depending on the projects. Eligible subjects: Public administrations and private parties Eligible projects concern: energy efficiency improvements in existing building envelopes (i.e. thermal insulation of walls); replacement of existing systems for winter heating with more efficient ones (condensing boilers); replacement and, in some cases, construction of new renewable-energy systems (i.e heat pumps, biomass boilers,). It provides also incentives for energy auditing and energy certification associated with the above projects

9 National EEO & EEA Art 7 Measures 2- Tax deductions - Ecobonus: Fiscal deductions up to 65% of total investment related to energy efficiency improvement in private buildings. ENEA manages the Ecobonus scheme. The tax deductions are granted for both residential and commercial buildings and consist of reductions of IRPEF (personal income tax) and IRES (corporate income tax) in respect of actions to improve the energy efficiency of existing buildings. Eligilbe investments: expenses incurred to reduce heating demand by means of overall upgrading of the building s energy performance; improve the building s thermal insulation (replacement of windows, including blinds or shutters, and insulation of roofs, walls and floors); install solar thermal panels; replace winter heating systems (with condensing boilers or heat pumps). Sectors White Certificates Tax Relief Heating Account Regulation & Standard Sustainable Mobility Residential X XXX X XX - Services X XXX X XX - Public sector X - XXX X - Industry XXX - - X - Transport X - - XXX XXX - 9 -

10 National results-art 7 EED Energy Savings achieved

11 National EEO & EEA Energy Savings Achieved Considering the energy savings achieved through the national EEO & EEA mix on , Italy is on track to fulfill the EED Art targets

12 National EEO & EEA Energy Savings Achieved The WhC scheme : In the period, WhC contributed to primary energy savings equal to 21,8 Mtoe (36,2 Million WhC issued). Final Energy Savings under the Art 7 from WhC in : 1,80 Mtoe Expected energy savings (Mtoe) to 2020: 16 Mtoe Source: PAEE 2014, ENEA

13 National EEO & EEA Energy Savings Achieved Tax deductions: Between 2007 and 2015, more than 2.5 millions of interventions have been realized, and at 2015 households have invested EUR 28 billion. Final Energy Savings from Tax deductions: 1,01 Mtoe : 0,6 Mtoe Expected energy savings (Mtoe) to 2020: 3,92 Mtoe Source: PAEE 2014, ENEA

14 National EEO & EEA Energy Savings Achieved Thermal Account (Conto Termico): Since its implementation in July 2013 until November 2016, eligible beneficiaries submitted around 26,000 applications. Earmarked funds have amounted to more than EUR 84 Million (PA: 17.7 MLN EUR + RESIDENTIAL 66.6 MLN EUR). Expected final energy savings (Mtoe) to 2020: 5,88 Mtoe Source: PAEE 2014, ENEA

15 The Italian White Certificates Scheme

16 WhC Main elements White Certificates or TEE Energy Efficiency Certificates, are one of the most relevant tools to promote the energy efficiency in Italy. The electricity and natural-gas distributors with more than 50,000 customers are required to achieve yearly quantitative primary-energy saving targets, expressed in TOE saved. GSE is in charge for the operative activities of the scheme since 2012, with the support of ENEA and RSE for activities related to the evaluation of proposals. The WhC market platform is provided by GME. The Italian WhC scheme issues certificates only for additional savings. A tariff contribution is granted to obligated distribution companies to cover part of the costs incurred to achieve the objectives. Penalties are imposed on the obligated parties in cases of non-compliance

17 National EEO WhC Mechanism The support scheme is based on the obligation, placed on electricity and natural gas distributors with more than customers, to achieve a quantified target of energy savings yearly. Obligation increases over the years, and during each year is divided among distributors according to their market share during previous year , Obligation (Millions of WhC) 7,75 6, , Natural Gas Distributors Electricity Distributors

18 National EEO WhC Mechanism National quantitative energysaving targets - incremental over time - for electricity and gas distributors for the years from 2013 to 2016 (national Decree of 28 Dec. 2012): 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. The market (national energy stock exchange or bilateral agreements) defines the WhCs price

19 National EEO WhC Mechanism Distributors can fulfill their obligations of WhC (each year by 31 May) by Obtaining WhC from GSE, through the implementation of energy efficiency projects Purchasing WhC from third-party Spot Market, managed by GME, and regulated by AEEGSI Bilateral Agreements with eligible parties (voluntary or obliged)

20 National EEO WhC Mechanism Italian White Certificates: subjects OBLIGED PARTIES - (DEMAND) electricity and natural gas distributors (+ 50,000 customers) Non-obliged electricity and natural gas distributors E.S.Co Energy Services Company VOLUNTEER PARTIES (SUPPLY) Companies with an energy manager, appointed according to Law 10/1991 Companies with an energy manager, appointed on a voluntary basis Companies certified ISO

21 Italian WhC: obliged distributors (2015) Electrical Distributors: 4.26 Million of WhC 48 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 M.WhC 23% 2i RETE GAS S.P.A M.WhC 19% Other 10 Distributors 0.25 M.WhC 6% A2A S.P.A M.WhC 4% ACEA S.P.A M.WhC 5% A2A RETI GAS S.P.A M.WhC 7% 1 distributor has almost 50% of the obligation 6 distributors have 75% of the obligation HERA S.P.A M.WhC 7%

22 Italian WhC: active subjects (2015) Electrical Natural Distributors Gas Distributors 2,48 E.S.Co. 3, Energy Manager (Obliged) 3, active subjects, 78% E.s.co. 89 Energy Manager (Volunteer) 4,28 4 ISO Distributors generate only 4,7% of WhC - 96% of WhC have to be traded

23 White Certificate Trading System: spot market & bilateral agreements Demand Supply Regulated Spot Market WhC Obliged Parties 3,04 Parties have to communicate to GME through the WhC Register N of WhCs price of 3,49 each agreement Volunteer Parties Bilateral Agreements WhC

24 Italian White Certificates: 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 by proposal Additionality = proposed by subjects and verified by GSE Energy saving = measured

25 Italian White Certificates: Evaluation of Energy Savings The energy savings generated by projects which are awarded through white certificates are assessed using 3 methods: 1) Deemed Saving It is on the basis of technical sheets identifying the savings associated with the specific action (for instance, the number of electrical motors or external air intake air conditioners, the number of square metres of solar panels etc.). It is an immediate and simple method, as the applicant is not required to produce measurements or surveys during the works to certify the savings. 2) Analytical The analytical assessment sheets include a saving-calculation TAU algorithm is fed by a few parameters characterising the operating and energy consumption status of the equipment. To obtain the EECs, the applicant must undertake to install a measuring device and to report the measured data at least once a year for the duration of the useful life of the system. 3) Energy Monitoring Plans It is applied only to applications for which no technical sheets are available. The applicant must submit a project proposal and a measurement plan consisting of a proposal structured in a series of fields defining the project from all the viewpoints covered by the assessment. The continued delivery of energy savings by the project throughout its useful life is not taken for granted: the EECs are only issued after verification of the system's operating data. The key features of the post-hoc method are: a) the measuring plan; b) identification of the baseline, c) additionality: energy efficiency certificates are only granted in respect of additional savings, i.e. the share of savings above that which would have been achieved even without the project as a consequence of technological, regulatory and market developments.

26 Italian White Certificates: only additional energy saving 100 Non additional energy saving Regulation & standard Technological evolution Market 80 Additional energy saving White Certificates 70 The Italian WhC scheme issues certificates only for additional savings. Savings are first evaluated as the difference between the ex-ante and the ex-post consumptions and then reduced if the ex-ante level is below the baseline Ex-Ante Consumption Baseline Consumption Ex-Post Consumption

27 Italian White Certificates: evolution over 10 years of implementation Deemed (RVC-S) Analytical (RVC-A) Monitoring (RVC-C) ,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000, Peak of projects submitted due to: non-overlapping with other incentives (July 2013) WhC recognizable only for new projects, not yet implemented (January 2014)

28 Italian WhC: achievements year WhC were issued to the Industrial Sector (64%) Industria l 64% Civil 32% Lighting 4% Of which: (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)

29 Next Perspectives On 2015 the Italian Ministry for Economic Development have launched a Public Consultation on WhC Scheme in order to receive sectorial feedbacks and redesign the mechanism till 2020 target. It will bring a new decree for WhC scheme. By the end of the year the scheme will by update by the White Certificates Guidelines providing new improvements and yearly targets for the period. The WhC Guidelines are under revision with the aims of: improving efficacy of the mechanism and enhance the additional energy saving achieved by the projects; setting new targets; rewarding the most innovative technologies and the most effective initiatives

30 WhC Lesson learnt & conclusion Italy is the first country of the world in the implementation of WhC mechanism ( , the new guidelines will be publish by the end of the current year. Mechanism evolved over the 10 years of experience (Civil sector -> Industrial sector). Energy Savings are measured & verified thanks to evaluation methods. WhC take into account the additionality of savings (related to market & technologies). WhC are only granted in respect of additional savings, i.e. the share of savings above that which would have been achieved even without the project as a consequence of technological, regulatory and market developments. The market selects the technologies and sectors. WhC prices are trasparent and public. High participation from Private Sector thanks to ESCO involvement. WhC market s options are useful and considered by the obliged parties

31 Conclusion According to the 2016 International Energy Efficiency Scorecard published by the nonprofit American Council for an Energy-Efficient Economy (ACEEE), Italy ranks 2 nd concerning Energy Efficiency world ranking. ACEEE evaluated each country using 35 policy and performance metrics spread over four categories: buildings, industry, transportation, and overall national energy efficiency efforts. It is an important recognition of the efforts made by the country to promote energy efficiency and accelerate the transition to a low carbon economy

32 Thank you