SMART AND CLEAN ENERGY FOR ALL
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- Esmond Hill
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1 SMART AND CLEAN ENERGY FOR ALL Energy efficiency 1 #EnergyUnion
2 ENERGY EFFICIENCY FIRST PRINCIPLE WHY? The cheapest energy is the one that we do not consume Energy efficiency should be considered as a source of energy in itself: It is endless It is available everywhere 2 #EnergyUnion
3 ENERGY EFFICIENCY IS THE MOST COST-EFFECTIVE WAY OF ACHIEVING ENERGY UNION OBJECTIVES 3 #EnergyUnion
4 IT S NOT A DREAM 4 #EnergyUnion
5 IT S NOT ONLY THE ECONOMY Variation final energy consumption - European Union - Mtoe ( ) Variation final energy consumption - European Union - Mtoe ( ), Odyssee-Mure 5 #EnergyUnion
6 WHY DO WE NEED NEW POLICY THEN? 12 lm/w ~ 8.3W 65 lm/w ~ 1.5W 120 lm/w ~ 0.83W 6 #EnergyUnion
7 POLICY CONCLUSIONS FOR 2030 Building renovation has to do more Review of EPBD Review of Art. 7 EED Financing has a more important role to play Smart Finance for Smart Buildings Digital/ICT has a big potential to contribute Capture behavioral change potentials Contractually guaranteed energy savings as business model Capture demand response potentials Development of a 'Smartness indicator for buildings' Review of Art EED 7 #EnergyUnion
8 WHAT PIECES OF LEGISLATION? 8 #EnergyUnion
9 EED REVIEW AND LINKS TO OTHER INITIATIVES EED Reviewed in the context of: Art. 1 and 3 EED 2030 target Art. 4 Long term renovation strategies Art. 7 Saving obligations Art thermal energy Art electricity Art gas Art. 15(5) CHP priority Art. 15(8) Demand response Art Reporting EED review and Governance proposal EPBD review EED review EED review MDI recast unchanged MDI recast MDI recast Governance proposal 9 #EnergyUnion
10 ENERGY EFFICIENCY DIRECTIVE (EED) OBJECTIVES Adapting to Energy and Climate 2030 Framework Streamlining, simplifying and increasing coherence with other elements of the package, namely: New governance regulation New electricity market design Update of legislation on renewables 10 #EnergyUnion
11 WHAT NEEDS TO BE DONE? ACHIEVING THE 30% ENERGY EFFICIENCY TARGET BY 2030 With a 30% target, the Union s 2030 energy consumption cannot exceed 1321 Mtoe of primary energy consumption and 987 Mtoe of final energy consumption. This equals a 23% reduction in primary energy consumption compared to historical 2005 energy consumption levels (-17% in final energy consumption). Keeping the momentum: We need approximately the same energy efficiency effort from 2020 to 2030 as from 2010 to #EnergyUnion
12 THE WAY FORWARD 12 #EnergyUnion
13 THE 30% ENERGY EFFICIENCY TARGET (Articles 1 and 3) WHAT ARE THE POSITIVE IMPACTS COMPARED TO A 27% TARGET? SAVINGS Reduced energy related costs e.g. for households and energy intensive industries Less thermal generation capacities needed Reduction in pollution control costs & health damage costs by billion SAVINGS Lower electricity price for households and energy intensive industries 2030 (b.a.u.) 27% 30% Security of supply: avoided cumulative fossil imports = 70 billion Decarbonisation is cheaper in the long run ( ): 9 billion/year less 158 MWh 161 MWh 157 MWh 13 #EnergyUnion
14 THE 30% ENERGY EFFICIENCY TARGET (Articles 1 and 3) WHAT ARE THE POSITIVE IMPACTS COMPARED TO A 27% TARGET? SUSTAINABLE GROWTH Up to 400,000 more jobs in 2030 Up to 0.4% increase of GDP in 2030 (~ 70 bn ) WHAT ARE THE POSITIVE IMPACTS OF THE WHOLE 2030 ENERGY AND CLIMATE PACKAGE COMPARED TO BUSINESS AS USUAL? SUSTAINABLE GROWTH Up to 900,000 more jobs in 2030 Up to 1% increase of GDP in 2030 (~ 190 bn ) 14 #EnergyUnion
15 ENERGY EFFICIENCY DIRECTIVE (EED) WHERE WE ARE TODAY OTHER INSTITUTIONS' POSITIONS WHAT WE SUGGEST 2020 Framework: Indicative national targets for % indicative EU target for 2020 Commission 2014: 30% indicative EU target for 2030 EUCO Conclusions 2014: 'at least 27% target for 2030 to be reviewed by 2020 having in mind a 30% target' EP 2015 Resolution: Binding 40% target 2030 Framework: Indicative national contributions for % binding EU target for #EnergyUnion
16 WHY DO WE NEED AN EU BINDING TARGET? OBJECTIVES Union s commitment towards its international climate and energy goals in 2030 and beyond Energy efficiency on equal footing with the other 2030 climate and energy targets Endorse the Union s commitment under the Energy Union Framework to put energy efficiency first Give investors the security that it is worth investing in energy efficiency, with positive impact on the technology costs and payback periods. Coherent governance process is needed to ensure that there is no ambition and delivery gap towards the Union's 2030 energy efficiency target. 16 #EnergyUnion
17 ENERGY SAVINGS (ARTICLE 7 EED) Extending existing energy saving obligations beyond 2020 (1.5%/year) Strengthening the social dimension Improving coherence with the EPBD Attracting private investment for energy efficiency renovations 17 #EnergyUnion Lower energy bills for consumers and reduced energy demand Requiring MS to consider energy poverty in designing energy efficiency obligations schemes or alternative measures Increasing buildings renovation rate Simplifying and streamlining
18 METERING AND BILLING PROVISIONS (ARTICLES 9-11 EED) Contribute to deliver a New Deal for Energy Consumers: Clarification of the EED provisions on metering and billing for thermal energy (district heating/cooling, central supply of heat/cooling/hot water). Ensuring access to clearer consumption information and more frequent feedback for consumers in multiple-apartment buildings. New meters to be remotely readable by 2020, and existing meters to be adapted to be remotely readable by 2027 where this is cost effective. 18 #EnergyUnion
19 ENERGY PERFORMANCE OF BUILDINGS DIRECTIVE (EPBD) SMARTER AND MORE SUSTAINABLE BUILDINGS FASTER Smart To encourage the use of ICT and smart technologies ensuring buildings operate efficiently: By introducing building automation and control systems as alternative to physical inspections; By encouraging the roll out of the required infrastructure for e-mobility (with focus on large commercial buildings and excluding public buildings and SMEs); By introducing a smartness indicator to assess the technological readiness of the building to interact with the occupants, the grid, while managing itself efficiently Simple By streamlining outdated or cumbersome provisions that have not delivered the expected output 19 #EnergyUnion
20 ECODESIGN AND LABELLING DIRECTIVES Supporting market transformation and innovation towards high-quality products with lower environmental impacts by: Banning inefficient products from the market through ecodesign by setting minimum requirements for energy-related products to improve their environmental performance by regularly updating existing minimum requirements to align with technological progress Informing consumers about efficient products through energy labelling by improving the effectiveness of the energy label (e.g. abolishing the A+ to A+++ classes) by strengthening compliance (e.g. product registration) 20 #EnergyUnion
21 SMART FINANCE FOR SMART BUILDINGS More effective use of public funds Deploying Financial Instruments and flexible energy efficiency and renewable financing platforms Building on EFSI II blending with ESIF funds Assistance and aggregation Supporting the project pipeline at EU and local level Project Development Assistance facilities "One-stop-shops" De-risking Understanding the risks and benefits for financiers and investors The De-risking Energy Efficiency Platform Commonly accepted underwriting framework 21 #EnergyUnion
22 22 #EnergyUnion
23 EU policy framework for energy efficiency Objectives All sectors Buildings Products Transport Generation Energy efficiency targets Art. 1 and 3 EED Strategic/long term planning Art. 4 EED Art EED Minimum standards for efficiency and the internal market Art. 4 EPBD Art. 9 EPBD Ecodesign Directive CO 2 standards Accelerate uptake of investments in efficient products, cars and buildings Art. 4-7 EED Art. 18 EED Information of consumers Art EED Art. 8 EED Art. 11 EPBD Labelling Directive Removing split incentives, market and regulatory barriers Art. 19 EED Qulification Art EED 'Build-up skills' Financing 23 #EnergyUnion Art. 18 EED EU and national funds 'Smart finance for Smart buildings'
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