IMPLEMENTATION OF ENERGY EFFICIENCY DIRECTIVE 2012/27/EU IN THE NORDIC COUNTRIES

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1 ENERGY EFFICIENCY DIRECTIONS IN THE NORDIC COUNTRIES AND LITHUANIA IMPLEMENTATION OF ENERGY EFFICIENCY DIRECTIVE 2012/27/EU IN THE NORDIC COUNTRIES Birger Lauersen

2 ENERGY EFFICIENCY DIRECTIVE 2012/27/EU* Establishes a set of binding measures to reach 20% energy efficiency target by Important articles 7. Energy efficiency obligation schemes 9. Metering 10. Billing information 11. Cost of access to metering and billing information 12. Consumer information and empowering programme 14. Promotion of efficiency in heating and cooling 15. Energy transformation, transmission and distribution * Adopted EU legal act marked as EEA relevant by the EU and under scrutiny for incorporation into the EEA Agreement by Iceland, Liechtenstein and Norway

3 ARTICLE 7 - ENERGY EFFICIENCY OBLIGATION SCHEMES Obliges Member States to set up an energy efficiency obligation scheme and/or alternative policy measures, to ensure that energy distributors and/or retail energy sales companies achieve a cumulative end-use energy savings target by 31 December 2020 equivalent to achieving new savings each year, from 1 January 2014 to 31 December 2020, of 1,5% of the annual energy sales to final customers. Sweden Finland Denmark Alternative measures: Mainly energy and carbon taxation Various energy efficiency measures such as municipal energy advisors, information technology procurement support energy audit support scheme for SME. Alternative policy measures: Energy efficiency agreements Transport fuel taxes / road transport Energy audits Energy efficiency agreements Heat pumps for detached and terraced houses Investments in heating plants Energy efficiency regulations for renovations and subsidies to incentivize renovations Energy efficiency regulations for new development Energy Savings Obligation DK existing energy efficiency obligation scheme. Established by law - implemented by a voluntary agreement between government and the sector organisations. Agreement is managed by the Danish Energy Agency in collaboration with representative from the organizations. The grid and distribution companies are obligated achieve savings each year; Ongoing negotiations on scheme Denmark will note use any alternative policy measures.

4 DANISH ENERGY SAVINGS OBLIGATIONS SCHEME ON TARGET SO FAR

5 ARTICLE 9-11 METERING AND BILLING Provisions on metering, billing information and cost of access to metering and billing information. Sweden Finland Denmark Article 9-11: A new act on Energy Metering in Buildings has been adopted. It will be analyzed in which cases individual metering of heating and hot water would be cost-effective. The provisions are also implemented through amendments to the Electricity Act, the Natural Gas Act and the District Heating Act. Information and estimates for energy costs are provided to consumers through the website which also enables consumers to compare deals. The Swedish Energy Markets inspectorate has presented a proposal for new functionalities of smart meters for gas and electricity. Article 9: Some amendments were conducted to existing legislation. In addition some new provisions were included in the new Energy Efficiency Law to reach full compliance with EED. A study on the cost-effectiveness of individual metering in multipurpose/multi-apartment buildings was been carried out in 2013, as requested by 9(3). Article 10 & 11: Provisions regarding billing and billing information were moved from existing legislation. Provisions regarding district heating were included into the Energy Efficiency Law to achieve full compliance with EED. Article 9: Denmark has implemented through an Executive Order on individual metering of electricity, gas, water, heating and cooling (the meter Order). Source: Concerted Action for the Energy Efficiency Directive, Country Information

6 CONSUMER INFORMATION AND EMPOWERMENT Individual metering and billing is consumer information but what is the objective? Consumption and cost reductions and/or empowerment? Højstup School in Odense 2009 The school was already connected to DH Odense 92 % DH Surplus heat (CHP: RES, coal, waste) Peak solar thermal production during summer holidays and abundance of surplus heat Dronninglund District Heating, Co-op

7 COMMERCIAL AND SYSTEM BORDERS Customer & consumer Consumer DH supplier Heat producer DHsystem

8 AN EXAMPLE OF A DISTRICT HEATING CUSTOMER/ CONSUMER 25 km

9 DISCLOSURE 2017 Disclosure Future Energy input to DH Fuel efficiencies PEF Emissions Contract: 20 years +1 billion

10 DRAFT AMENDMENT OF EED Article 7 Energy Savings Obligation is extended to the period beyond 2020 to 2030 To some extent can new RE technologies count as savings Article 9 and 10 New article 9a applies only for heating and cooling and hot water Distinction introduced btw final customers and final customers

11 MAIN POINTS DH future perspectives the infrastructure needed to deliver degrees of efficiency and RE in cities District Heating is not electricity or gas No heating takes place in a vacuum there's always a system context System borders not just historical coincidence Information is about giving the right people the right information at the right time Historic view vs future action Emissions dependant on allocations and definitions Empowerment is also the power to make mistakes Systemic/holistic thinking or individual thinking The directive on Energy Efficiency (2012/27/EU) promotes an integrated approach to assess the costs and benefits of the various efficient heating and cooling supply options. This approach takes into account all relevant supply resources in geographical boundaries selected so as to avoid sub-optimised solutions on a project-by-project basis, and covering socioeconomic and environmental factors when accounting for the economic effects. Commissioner Vestager to MEP Morten Messerschmidt, EU-Parliamentary questions, 5 March 2015, E /2014

12 FURTHER INFORMATION Birger Lauersen Danish District Heating Association House of District Heating Merkurvej 7 DK-6000 Kolding Denmark Phone Fax mail@danskfjernvarme.dk