Energy efficiency trends and policies

Transcription

1 Energy efficiency trends and policies Overview In 2015 the final energy consumption of Hungary was 17,3 Mtoe, 1,17 percentage point higher than in 2000 (16,14 Mtoe). The residential sector, the largest consuming sector in 2000 kept its largest share with one third of total final consumption (34%) in Both the share of the transport sector and industry have been growing to 25,1% and 24,5% in 2015, respectively. The share of transport is continuously growing but it is still below the EU average (EU: 33% in 2015). The share of services decreased by 6,8 percentage points down to 12,6% in total. The share of agriculture remained relatively low with a 3% share. Figure 1: Final energy consumption by sector Energy efficiency measured by ODEX improved by more than 2%/year on average from 2000 to 2015, or 30% over the period. The main driving forces have been industry and services with an average 3,8% and 3,5% improvement per year, respectively. Transport and the residential sector got smaller gains than the average, with 1,9% and 1% per year on average, respectively. This trend can be explained by overall resource efficiency improvements especially in the private sector. Improvement in the industry and the service sector were due especially to the introduction of energy efficiency requirements and labelling affecting buildings, equipments, processes and appliances. Figure 2: Energy efficiency index (by sector)

2 Hungary intends to achieve the 1,5% annual decrease of the final energy consumption with 17 alternative measures. No energy efficiency obligation scheme was introduced, and no plan to do so is on the energy policy agenda. The most important measures of the NEEAP are Operational Programmes (OPs) financed by EU Funds (some of them coupled with state budget), with primary focus on energy efficiency improvement. The focus of the Environmental and Energy Efficiency Operative Programme (KEHOP) is explicitly the improvement of energy efficiency at enterprises, public and residential buildings. Other OPs also have sub-programmes that aim to promote energy efficiency. The OPs all target a wide range of consumer groups, with a wide range of potentially supportable projects related to energy efficiency improvement in buildings, production and processes, and renewable energy. Other programmes aiming at the achievement of the national saving target include the Green Economy Financing Scheme (GEFS), financed from state budget and EU-ETS revenues. GEFS finances the Warmth at Homes programme, which ensures non-refundable funding for energy efficiency in the residential sector and state-owned building sector for e.g. for heating system modernization, replacement of old household appliances and complex building modernization.a new measure - the National Network of Energy Managers - was introduced in It performs energy advisory tasks. Table 1: Sample of cross-cutting measures Measures NEEAP measures Description Expected savings, impact evaluation More information available Operational yes Programmes with main focus on energy efficiency improvement, financed by European Structural and Investment and Cohesion Funds The most important measures of the NEEAP are Operational Programmes (OPs) financed by the European Structural and Investment Funds and European Cohesion Funds (some of them coupled with state budget), with primary focus on energy efficiency improvement. These are the Environmental and Energy Efficiency Operative Programme (KEHOP), the Regional and Rural Development Operational Programme (TOP), Competitive Central Hungary Operational Programme (VEKOP), Economic Development and Innovation Operational Programme (GINOP), Rural Development Operational Programme, Human Resources Development Operational Programme (EFOP). The OPs target a wide range of consumer groups (households, SMEs, local governments, public institutions, nonprofit organizations, heat producers and suppliers, enterprises), with a wide range of potentially supportable projects related to energy efficiency Cumulative savings attributable to OPs with main focus on energy efficiency - according to the methodology on Art. 7 - were 4,09 PJ in Cumulative saving in 2014 was 1,037 PJ. Cumulative energy savings attributable to OPs indirectly effecting energy efficiency were 1,2 PJ in energy 4th NEEAP of Hungary

3 improvement in buildings, production and processes, and renewable energy utilization. Only savings from those programmes are counted to this measure, which had a primary focus on energy efficiency improvement and/or final energy saving. There are more than 10 other Operational Programmes, where the primary focus of a call for supportable projects is not energy efficiency, but the project indirectly influences energy consumption, e.g. improvement of the infrastructure of social services, healthcare, education, tourism, business parks, etc. Here, only those projects where taken into account, where costs related to energy efficiency improvement were among eligible costs, and documented energy saving (by an energy expert or auditor) occurred. National Network of Energy Managers yes The National Network of Energy Managers was established in The purpose of the measure is to exploit the energy efficiency potential at public institutions, including local governments and to advise SMEs and households on energy saving methods and opportunities. Offices of the network are existing regional governmental offices, where energy managerial tasks are performed by local staff. Professional requirements to perform energy managerial tasks are defined by 122/2015. Government Decree. Main tasks of energy managers include free energy advising for public institutions, for managers of public buildings to help to prepare mandatory energy saving plans every 5 years, SMEs and households, promotion of energy audits and the introduction of energy management system at public institutions and SMEs, and provision of help to the implementation of energy saving measures. - Link

4 National energy efficiency programmes yes Other programmes aiming at the achievement of the national saving target include various national energy efficiency programmes. Between 2008 and 2016 revenues from the sale of Kyoto units were used in the Green Investment Scheme (GIS), which was replaced by the Green Economy Financing Scheme (GEFS) in 2014, financed from state budget and EU-ETS revenues, and managed by the Ministry of National Development, and the Economic Greening System (EGS), managed by the Ministry of National Economy. The budget of GEFS and EGS varies from year to year. GEFS finances the Warmth at Homes programme, which ensures non-refundable funding for energy efficiency in the residential sector and state-owned building sector. Measures such as heating system modernization, replacement of old household appliances and complex building modernization can be supported. In the period of almost HUF 29 billion (EUR 93,8 mio) was spent within the Warm Homes Programme (WAH), which resulted in 1,1 PJ (documented) cumulative savings in th NEEAP Source: MURE Buildings No clear trend of energy efficiency improvement can be observed in household space heating. This is in part due to data problems. The amount of solid biomass energy used for heating purposes has recently been more precisely determined and revised back to Fuel substitution must have had an effect on increasing space heating energy consumption after 2009, as the share of all types of fuels (especially gas, but also district heating and brown coal) have been shrinking compared to the share of wood and waste. The share of gas in total household space heating energy use decreased from 64% to 49% in the period of , while the share of solid biomass (wood and waste) increased its share from 8% to 40%.

5 Figure 3: Energy consumption of space heating per m2 Figure 4: Energy consumption by end-uses per dwelling About 1 Mtoe of energy consumption variation was due to energy efficiency improvements that resulted from the replacement of inefficient equipment and appliances with more energy efficient ones (replacing old furnaces with efficient gas boilers). The largest part of consumption variation (3,08 Mtoe) was due to the increasing stock of electric appliances. There has also been a dynamic spread of modern info-communication appliances. Electrification of households is still, however, below the EU average by about 30%. Consumption of durable electric appliances has been rising, however, not only because of growing coverage, but also because the stock of existing appliances is getting older. 2,26 Mtoe out of consumption variation was the result of a change in consumer behaviour, of changes in fuel mix and other unknown effects and data problems. As a result, the energy consumption reached 5,95 Mtoe in 2015, or 0,4% higher than in 2000.

6 Figure 5: Main drivers of the energy consumption variation in households Due to a diffusion of electrical appliances in offices an increasing trend of electricity consumption can be observed over the period No robust data are available afterwards. Figure 6: Energy and electricity consumption per employee (normal climate) The 2002/91/EC directive was implemented in Hungary by the 7/2006 (V.24.) TNM Decree and the 176/2008 (VI.30.) Governmental Decree. These regulate the energy performance of buildings for new construction and major renovation of buildings above 1000 m2 and also introduce a building certification scheme. Due to the new regulations, technical heat requirements became 30% stricter than before. The recast directive of 2010/31/EU introduced stricter requirements that were implemented through several amendments of the 7/2006 TNM decree. An important amendment of the decree in 2014 made the cost-optimal energy efficient requirement a pre-condition for getting funding through grants from either state budget or EU funds. Implementing 2012/27/EU Article 5 a national building registry system was set up in 2013 (NÉeR) by the ÉMI Nonprofit Kft. As a result of panel house refurbishment programmes started in the 2000's 35% of all panel buildings have been renovated til 2015.A new loan scheme was introduced in April 2017 in order to trigger energy efficient building

7 renovations in the residential building sector. An interest-free loan is introduced for home owners, multiapartment buildings and housing cooperatives. The loan is financed through EU Funds, by two different operational programmes (OP). The loan is provided by the state owned MFB Hungarian Development Bank Plc, and it can be used for home energy efficiency investments. Table 2: Sample of policies and measures implemented in the building sector Measures Description Expected savings, impact evaluation More information available Stricter regulations building The 2002/91/EC directive was implemented in Hungary by the 7/2006 (V.24.) TNM Decree and the 176/2008 (VI.30.) Governmental Decree. These regulate the energy performance of buildings for new construction and major renovation of buildings above 1000 m2 and also introduce a building certification scheme. Due to the new regulations, technical heat requirements became 30% stricter than before. The recast directive of 2010/31/EU introduced stricter requirements that were implemented through several amendments of the 7/2006 TNM decree. An important amendment of the decree in 2014 made the cost-optimal energy efficient requirement a pre-condition for getting funding through grants from either state budget or EU funds. Implementing 2012/27/EU Article 5 a national building registry system was set up in 2013 by ÉMI Nonprofit Kft. - Block house (panel) refurbishment programmes New residential loan scheme provided by MFB, Hungarian Development Bank Programmes initiated in (based on 323/ Governmental Decree) targeted industrialized residential buildings (block houses) and other residential buildings (most of them single flat family houses built between ) to implement complex energy efficiency measures, such as replacement of old doors and windows, building thermal insulation, heating regulation and heating system modernisation, implementation of billing based on heat measurement, renewable energy utilization and the replacement of traditional light bulbs with energy efficient lamps for vulnerable social groups. As a result of panel house refurbishment programmes 35% of all panel buildings have been renovated til Dwellings that have been refurbished with the use of public support programmes is estimated to have reached to 330 thousand households. A new loan scheme was introduced in April 2017 in order to trigger energy efficient building renovations in the residential building sector. An interest-free loan is introduced for home owners, multi-apartment buildings and housing cooperatives -

8 to overcome difficulties associated with high investment costs and low financing capability. The loan is financed through EU Funds, by two different operational programmes (OP). Economic Development and Innovation Operational Programme (GINOP-8.4.4/A-17) has a budget of 339 million euro (HUF 105,2 billion), while Competitive Central Hungary Operational Programme has a budget of 30 million euro (HUF 9,41 billion). For each OP, max. 25% of the budget can be applied for multi-apartment buildings. The loan is provided by the state owned MFB Hungarian Development Bank Plc. The loan can be used for energy efficiency investments, such as thermal insulation, heating and cooling system modernization, summer heat protection, etc., and renewable energy projects, such as installation of solar energy system or solar panel, heat pump, or other renewable energy based heating system. Source: MURE Transport Road transport is the dominating transport energy consumption: the share in the total final energy consumption increased by 5 percentage point from 2000 to 2015, up to 93%. The consumption share of rail transport decreased from 5% to 3%, air transport s share decreased from 7 % to 4%. Figure 7: Split of the transport energy consumption by modes The share of cars in passenger traffic increased in the period of up to 65%, while the share of public transport of 40% in 2000 decreased to 35% in 2015.

9 Figure 8: Share of transport in passenger traffic Freight traffic (in tonne-km) has been rapidly growing in the period due to the 5% yearly expansion of goods transported on roads. The share of freight traffic on road increased from 66% in 2000 to 76% in 2015, while the share of rail transported goods decreased from 31% to 20%. The share of goods transported on water is low (3,6%). Figure 9: Share of modes in freight traffic Energy consumption of transport grew from 3,08 Mtoe to 4,12 Mtoe in the period of The rise of consumption was due to increased activity by 1,27 Mtoe, which was almost entirely compensated by energy savings (-1,22 Mtoe). The growing share of car in passenger traffic (compared to public transport) explains the increase of consumption by 0,33 Mtoe.

10 Figure 10: Main drivers of the energy consumption variation in transport Measures targeting the transport sector include the intoduction of a toll road system, the Jedlik Ányos Plan supporting electro-mobility, the development of infrastructure for bicycle use and various transport infrastructure projects in the Transport Operational Programme, supported by European Union Funds. Table 3: Policies and measures into force in the transport sector Measures Description Expected savings, impact evaluation More information available Toll system road Measures targeting the transport Energy saving due to sector include the introduction of a this measure was toll-road system in energy estimated 0,43 PJ for savings are attributable to traffic rationalization, better capacity utilization, and division of labour of transport modes. Jedlik Ányos Plan to support electromobility In 2015 the Hungarian government approved the Jedlik Ányos Plan that aims to promote electro mobility. The goal is to have alternative vehicle in 2020 on the Hungarian roads. The Plan is implemented through the Jedlik Ányos Cluster, which includes various stakeholders related to electro- mobility in Hungary. The Plan aims at planning and implementing a supportive legal and financial framework for the spread of electric vehicles, such as - Link

11 the deployment of charging infrastructure, developing of measurement and accounting system for electricity used to charge vehicles, ensuring the operation of charging appliances, establishing direct and indirect financial incentives Transport Operative Programme In the programming period of various infrastructure projects were developed related to public transportation in urban and suburban regions, e.g. finalizing the 4th metro line in Budapest. The budget within the Transport Operative Programme for these projects was HUF 544,6 billion. - Source: MURE Industry The final energy consumption of industry increased by 1,4% per year on average, from 3,5 Mtoe in 2010 to 4,2 Mtoe in Energy consumption of the industry is concentrated in four energy intensive branches. Chemicals, steel, non-metallic, and non-ferrous industries lowered their share in total industrial energy consumption from about 70% in 2000 to 58% of total consumption in Figure 11: Final energy consumption by branch Source: Specific energy consumption per tonne of steel has been decreasing until Energy efficiency deteriorated after the crises due to lower utilization rates. The unit consumption figure of 0,34 toe/t for 2015 ranks Hungary in the medium range among EU countries. The paper industry is marginal and the unit consumption decreased by 35% from 2000 to 2011.

12 Figure 12: Unit consumption of energy intensive products (toe/t) The increase of industrial energy consumption was about 0,5 Mtoe from 2000 to This was to a large extent due to the expansion of industrial production (1,88 Mtoe). Growing energy consumption due to activity was mainly compensated by efficiency improvements of production and processes (-1,84 Mtoe). The economy has been continuously restructured from the 90 s by less energy intensive branches gaining larger share. Structural changes continued in the 2000 s, and to a smaller extent also after 2010, contributing to a decrease of energy consumption by 0,8 Mtoe. Figure 13: Main drivers of the energy consumption variation in industry There are several new measures targeting large enterprises based on the Energy Efficiency Act of 2015, including mandatory audit for large enterprises (EED Art. 8.), the mandatory appointment of an energy manager at large enterprises, and a new tax incentive introduced in 2017 for the implementation and operation of investments aimed at improving energy efficiency. Economic Development and Innovation Operational Programme finances energy efficiency measure of SMEs.

13 Table 4: Policies and measures into force in industry Measures Description Expected savings, impact evaluation More information available Economic Development Innovation Operational Programme and Energy efficiency of the industry, with special focus on SMEs is supported through the Economic Development and Innovation Operational Programme, funded by European Union Funds and state budget. Priorities of grants and supportable projects and budget are summarized yearly in government decrees (1006/2016 (I.18.) for 2016, 1173/2015. for 2015). Mandataory energy audit for large enterprices Implementation of EED Art. 8. into Hungarian law. There is an obligation for large enterprises to register at the Hungarian Energy and Public Utility Regulatory Authority (HEA) and to carry out an energy audit every four years. Every year there is a new registration obligation and data provision obligation on energy savings. Energy auditors also have to be registered at HEA. Compliance with the law is controlled by HEA, which may check the quality of energy audits and sanction registered enterprises and/or auditors. Link Mandatory appointment of an energy manager at large enterprises Measure is based on the Energy Efficiency Act of Goal of the measure is to support energy efficient behaviour, planning and investments at large enterprises. According to the EE Act of 2015 large enterprises are determined according to the following criteria: if consumption exceeds a) kwh electricity or b) m3 natural gas or c) GJ heat Enterprises have the obligation to report yearly energy saving data to the Hungarian Energy and Public Utility Regulatory Authority (HEA). HEA verifies energy savings due to specific measures according to EED Art.7 methodology New corporate tax A new tax incentive was introduced in 2017 for the incentive to trigger implementation and operation of investments aimed energy efficiency at improving energy efficiency by reducing final energy consumption. Goal of the measure is to Implemented measures are first reported to HEA by June 30, 2017 for companies which are obligated to carry out an energy audit. For those large enterprises which are not subject to mandatory energy audit, the first data provision deadline for implemented ee measures is June 30, Link

14 investements promote energy efficiency investments all over the business sector at large, medium and small enterprises. The tax incentive can be up to 30% of eligible costs, but not more than the HUF equivalent of EUR 15 million at present value, which can be increased by 20% for small enterprises, and 10% for medium-sized enterprises The tax incentive may only be claimed in connection with projects aimed at energy efficiency improvement. No tax credit can be applied with respect to investments aiming at fulfilling the mandatory environmental protection standards or minimum mandatory energy efficiency standards. It is necessary for the taxpayer to obtain a certificate from an auditor registered at the Hungarian Energy and Public Utility Regulatory Authority that proves that the investment aims at improving energy efficiency by reducing energy consumption. The certificate should be based on the result of an energy audit. The taxpayer is obligated to provide data on the certified investment and the energy savings stemming from it. Source: MURE