Energy Efficiency trends and policies in ITALY

Transcription

1 Energy Efficiency trends and policies in ITALY Date: November 2015 Energy Efficiency Trends and Policies in ITALY 1

2 Contact person: Giulia Iorio Alessandro Federici Italian National Agency for New Technologies, Energy and Sustainable Economic Development, ENEA Lungotevere Thaon di Revel, 76, Rome, Italy The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Communities. The European Commission is not responsible for any use that may be made of the information contained therein. Energy Efficiency Trends and Policies in ITALY 2

3 CONTENT OF THE REPORT The report describes the energy efficiency trends and policies in Italy, focusing on energy efficiency trends based on the ODYSSEE database. The analysis focuses on the period The report also illustrates the recent and innovative energy efficiency policies and measures, focusing on 3rd National Energy Efficiency Action Plans (NEEAP), submitted in July Energy Efficiency Trends and Policies in ITALY 3

4 TABLE OF CONTENT CONTENT OF THE REPORT...3 TABLE OF CONTENT...4 LIST OF FIGURES...5 LIST OF TABLES...6 EXECUTIVE SUMMARY ECONOMIC AND ENERGY EFFICIENCY CONTEXT Economic context Total Energy consumption and intensities Energy efficiency policy background Energy efficiency targets ENERGY EFFICIENCY IN BUILDINGS Energy efficiency trends Energy efficiency policies ENERGY EFFIENCY IN TRANSPORT Energy efficiency trends Energy efficiency policies ENERGY EFFICIENCY IN INDUSTRY Energy efficiency trends Energy efficiency policies ENERGY EFFICIENCY IN AGRICULTURE Energy efficiency trends REFERENCES Energy Efficiency Trends and Policies in ITALY 4

5 LIST OF FIGURES Figure 1: Macro-economic developments in Italy (2000=100)... 8 Figure 2: Primary energy consumption by energy source... 9 Figure 3: Final energy consumption by sector... 9 Figure 4: Shares of energy consumption by sector Figure 5: Shares of energy consumption by energy source Figure 6: Primary and final energy intensity Figure 7: Energy efficiency for overall economy and sectors by index ODEX (2000=100) Figure 8: Energy consumption of households by energy source Figure 9: Shares of energy consumption by energy source in households Figure 10: Energy consumption by types of end-use in households Figure 11: Variation households consumption Italy Mtoe ( ) Figure 12: Energy efficiency in households by index ODEX (2000=100) Figure 13: Energy unit consumption of electrical appliances in households (2000=100) Figure 14: Energy consumption of services sector by energy source Figure 15: Energy intensity and energy consumption per employee in services sector (2000=100) Figure 16: Energy consumption of transport sector by mode Figure 17: Energy consumption of transport sector by fuel Figure 18: Variation transport consumption Italy Mtoe ( ) Figure 19: Energy consumption of road transport s by mode Figure 20: Energy consumption trends of road transport (2000=100) Figure 21: Passenger transport by mode (2000=100) Figure 22: Goods traffic transport by mode and energy consumption Figure 23: Energy efficiency in transport sector (2000=100) Figure 24: Energy consumption in industry by fuel and industrial production index (2010=100) Figure 25: Shares of energy consumption by fuel in industry Figure 26: Energy consumption of manufacturing industry by branch Figure 27: Shares of energy consumption by branch in industry Energy Efficiency Trends and Policies in ITALY 5

6 Figure 28: Energy unit consumption and production of steel, paper and cement Figure 29: Variation industry consumption Italy Mtoe ( ) Figure 30: Variation industry consumption Italy: before and after the crisis Figure 31: Energy intensity in industry sector (2000=100) Figure 32: Annual variation of energy intensity in industry sector before and after the crisis (%/year) Figure 33: Energy efficiency index in industry (2000=100) Figure 34: Energy efficiency trends in industrial branches(%/year) Figure 35: Energy consumption in agriculture by energy source Figure 36: Energy and economic components in agriculture (2000=100) LIST OF TABLES Table 1: Energy efficiency objectives to 2020 (final and primary energy, Mtoe/year) Table 2: Annual achieved energy saving by sector, period, and expected for 2020 (final energy, Mtoe/year) Table 3: Cost-effectiveness of the implemented incentive measures Table 4: Potential of final energy saving in the residential sector, years Table 5: Potential of final energy saving in the services sector, years Energy Efficiency Trends and Policies in ITALY 6

7 EXECUTIVE SUMMARY In the period both primary and final energy consumption decreased in Italy: -9.5% and -4.6%, respectively. After a steady growth in the period , since 2006 primary and final energy consumption decreased. The recovery of 2010 was blocked by the financial crisis on credit market and public budget started in The corresponding energy intensities fell: primary energy intensity by 8.8% and final energy intensity by 3.8%. The trend of both energy intensities was decreasing since 2003, more rapidly in the last years. The driving sector is services sector, +39.0% of energy consumption in , followed by households, +21.7%: in the last years the energy consumption was quite stable for both sectors about 20 Mtoe and 30 Mtoe, respectively. The energy consumption in transport sector decreased since 2008: -9.7% in the period For industry sector a steady reduction was observed in energy consumption for all years , -30.5%, with the exception of All fossil fuels had a decrease in the period : -24.3% for oil products, -32.3% for coal and -5.8% for natural gas. Electricity consumption increased by 4.2%, down in the last years. The renewable energy sources had a highest growth rate in the period : over 300% reaching the share of 7.4% of final energy consumption in Heat consumption is also rising: +21.1% in the period with a quota of 3.1% in The energy efficiency, measured by ODEX index, improved by 11.0% in the period All sectors had have improvement in energy efficiency: transport sector improved by 12.8%, followed by industry with 12.2%. For households was observed an slower improvement due to the increase in energy consumption for a better comfort and not to a loss in energy efficiency. The improvement in transport sector depended on energy efficiency of transport road, especially to energy efficiency of cars. All industrial branches contributed to the progress in energy efficiency of industry sector, more rapidly in the years : chemicals is the most efficient branch. The 3 rd National Energy Efficiency Action Plan, submitted in 2014, sets the final end-use energy savings target of 15.5 Mtoe for As set in NEEAP 2014, achieved energy savings up to 2013 have been equal to more than 3.2 Mtoe/year, equivalent to 20.7% of the 2020 objective. In order to reach the targets over the period , Italy intends to rely on the White Certificate obligation scheme, and two additional energy efficiency schemes: the tax deductions and the Thermal Account (Heating & Cooling Support Scheme). Legislative Decree 102 of July 4, 2014, as transposition of the Directive on Energy Efficiency (2012/27/UE Directive) establishes a framework of measures for the promotion and improvement of energy efficiency in many areas, able to contribute to the achievement of national savings energy targets at 2020: for building sector there will be a strong boost to the redevelopment of the buildings of public administration and strengthening of instruments such as White Certificates and energy audits. The Decree foresee the establishment of a national fund for energy efficiency (5M for 2014 and 25 M for 2015), the related actions are energy efficiency in PA buildings, district heating and cooling, energy efficiency of residential buildings and social housing, energy efficiency in services and industry sector. Energy Efficiency Trends and Policies in ITALY 7

8 1. ECONOMIC AND ENERGY EFFICIENCY CONTEXT 1.1. ECONOMIC CONTEXT In 2013 the GDP amounted to 1,411 billion euro, chain-linked year 2005, a decrease of 1.7% compared to 2012, in the period the drop was 0.8%: the GDP rose slightly until 2007 (+1.2%/year), followed by a significant decline in 2009 (-5.5%). The financial crisis on credit market and public budget, started in 2011, has blocked the economic recovery of 2010 and 2011 with consequences on all the components of demand: in % in GDP, -3.8% in value added of industry, -2.0% in value added of tertiary and -3.8% in private consumption of households. The decline has kept on in the following two years: only in 2014 there was a slight increase in value added of tertiary and private consumption, followed in 2015 by a small raise also in GDP and value added of industry, as indicated by the first data available. Industry showed the higher decrease: the value added in 2009 fell below the value in 2000 (-17,4% in 2009 compared to 2007). The drop in the period was -11.7%. Figure 1: Macro-economic developments in Italy (2000=100) GDP Value added tertiary Value added industry Private consumption households 1.2. TOTAL ENERGY CONSUMPTION AND INTENSITIES In 2013 the primary energy consumption was Mtoe, with a drop of 9.5% over the period : since 2008 the consumption continued to fall (figure 2). Italy has returned to the levels of consumption in mid 90s with a different energy mix: oil at 35.6% of total consumption (57.6% in 1995), gas at 36.3% (27.8% in 1995), renewable sources at 16.9% (5.0% in 1995). Energy Efficiency Trends and Policies in ITALY 8

9 Figure 2: Primary energy consumption by energy source Mtoe importexport elect other renewables biomass coal gas oil The final energy consumption showed the same trend: in 2013 the consumption was Mtoe, -4.6% compared to The energy consumption is decreasing from 2006 with different trends by sector: industry energy consumption kept on decline over the period , transport energy consumption is falling since 2008, services and households energy consumption increased over the period with increases and descreases in the last three years (figure 3). Figure 3: Final energy consumption by sector Mtoe agriculture services households transport industry These trends have changed the composition of final consumption by sector (figure 4): the transport sector continues to have the highest energy consumption but its share has decreased from 33.9% to 32.1%, followed by households, industry and services with a share of final energy consumption, respectively, equal to 25.3%, 23,4% and 16.8%. Energy Efficiency Trends and Policies in ITALY 9

10 Figure 4: Shares of energy consumption by sector 100% 90% 80% 70% 60% 50% 2,5% 2,3% 11,5% 16,8% 19,8% 25,3% 33,9% agriculture services households 40% 32,1% transport 30% 20% 10% 32,1% 23,4% industry 0% In the period the driving sector was the services sector: +4.7% for value added (+8.7% in ) and +39.1% for energy consumption. With regard to energy consumption by energy source, all fossil fuels decreased over the period : -32.3% for coal, for oil products and -5.8% for gas. The renewable energy sources increased by over 300%, 8.8 Mtoe in 2013, followed by electricity, +4.2%, and heat. The mix of energy sources in final energy consumption is showed in figure 5. Figure 5: Shares of energy consumption by energy source 0,0% 1,4% 3,1% 7,4% oil products 2,8% 18,7% 46,3% 20,4% 36,7% gas coal electricity 30,8% 2,0% 30,4% heat renewables The primary energy intensity and the final energy intensity (i.e. ration between primary or final consumption and GDP) are indicators often used to assess the energy efficiency of the overall Energy Efficiency Trends and Policies in ITALY 10

11 economy and final consumers. In 2013 the primary energy consumption was koe/ 2000, -2.1% compared to 2012: the intensity is declining all over the period , -8.8%, and more rapidly in the last years. The final energy intensity had a similar trend to the primary energy intensity with a slower decrease: in the 2013 it was koe/ 2000, -1.2% compared to 2012 and -3.8% in the period (figure 6). Figure 6: Primary and final energy intensity 0,150 0,140 0,130 koe/ ,120 0,110 0,100 0,090 primary energy intesity final energy intesity The trends are mainly due to growth rate of GDP higher than energy consumption: it was higher in the years of economic expansion ( ) and less low in the years of stagnation ( ). The energy intensity as a energy efficiency measure is influenced by factors not related to energy efficiency such as structural changes, comfort effects linked to human behavior. The indicators based on energy unit consumption are a better option to evaluate energy efficiency trends. The ODEX index aggregates energy efficiency indicators observed for energy end-use and appliances into an aggregate bottom-up energy efficiency index with weighs given by their share in total final energy consumption. In the 2013 the energy efficiency index for the whole economy amounted to 89.0, measured as three-year moving average and base year 2000, which means a 11.0% of energy efficiency improvement from 2000 and a gain of almost 1%/year : the energy efficiency trends in sectors measured by technical ODEX index are showed in figure 7. All sectors had have improvement in energy efficiency since 2000: transport sector improved by 12.8%, followed by industry with 12.2%. For households was observed an slower improvement due to the increase in energy consumption for a better comfort. Energy Efficiency Trends and Policies in ITALY 11

12 Figure 7: Energy efficiency for overall economy and sectors by index ODEX (2000=100) Global ODEX industry ODEX transport ODEX household ODEX services ODEX 1.3. ENERGY EFFICIENCY POLICY BACKGROUND Legislative Decree 102 of July 4, 2014 as transposition of the Directive on Energy Efficiency (2012/27/UE Directive) establishes a framework of measures for the promotion and improvement of energy efficiency in many areas, able to contribute to the achievement of national savings energy targets at More specifically, for building sector there will be a strong boost to the redevelopment of the buildings of public administration and strengthening of instruments such as White Certificates and energy audits. A large section is devoted to the measurement and billing of energy consumption - with the mandatory install meters "smart" condominiums within the aiming to promote the reduction of energy consumption through the recognition of individual consumption and the division of costs based on actual consumption. The Authority for Electricity, gas and water supply system has developed specifics for intelligent metering systems that provide information to end customers on current time use of the services and energy efficiency targets. The Decree foresee the establishment of a national fund for energy efficiency (5 M for 2014 and 25 M for 2015), whose priorities are: employment growth; whole building energy efficiency; zero energy buildings; energy upgrading and seismic protection; district heating and cooling in agriculture or connected to biomass distributed generation. The related actions are: energy efficiency in PA buildings; district heating and cooling; public energy efficiency included lighting; Energy Efficiency Trends and Policies in ITALY 12

13 energy efficiency of residential buildings and social housing; energy efficiency services; energy efficiency in the industrial sector. The currently available financial resources amount to more than EUR 800 million. In order to ensure an optimal coordination between interventions financed by the Energy Efficiency Fund and other energy efficiency measures, the Decree has also envisaged a specific steering committee: the quick implementation of the program for energy refurbishment of Public Administration buildings is among its primary objectives, and the Government has earmarked 355M for the period ENERGY EFFICIENCY TARGETS Pursuant to Article 7.1 EED, the final end-use energy savings target for Italy is Mtoe. Since a number of national schemes have been in force for several years, including the White Certificate obligation scheme, Italy may use early actions to bring its cumulative saving of final energy to be achieved over the period to the above-mentioned required value of Mtoe. In order to deliver the minimum cumulative savings of final energy consumption to be achieved over the period , Italy intends to rely on the White Certificate obligation scheme. This scheme is flanked by two additional energy efficiency schemes: the tax deductions and the Thermal Account (Heating & Cooling Support Scheme). All the schemes are already operational nationwide. Table 1: Energy efficiency objectives to 2020 (final and primary energy, Mtoe/year) Planned measures for Expected savings by 2020 White Heating & Measures and Tax Deductions Regulatory Conventional Primary Certificates Cooling Support investments Scheme standards energy demand Energy Scheme Scheme for mobility Sector Residential Services Public Private Industry Transport Total Source: 2014 NEEAP Relative to the objective for period as set in 2014 NEEAP, achieved energy savings up to 2013 have been equal to more than 3.2 Mtoe/year, equivalent to around 21% of the 2020 objective (Table 2). Half of such savings derives from the White Certificates scheme. At sectoral level, residential sector already achieved one third of the expected objective, industry more than one quarter. Energy Efficiency Trends and Policies in ITALY 13

14 Table 2: Annual achieved energy saving by sector, period, and expected for 2020 (final energy, Mtoe/year) Regulatory standards White Certificates Scheme Tax Deductions Scheme Measures and investments for mobility Other measures Energy savings Achieved at 2013* Expected at 2020 Achieved target (%) Residential % Services % Industry % Transport % Total % *Net of duplications Source: ENEA elaboration With respect to White Certificates, the analysis of a sample of ex-post calculation projects showed a cost-effectiveness equal to /kwh, seven times lower than the tax deductions average. Within this scheme, global renovation is the most cost-effective measure (Table 3). Table 3: Cost-effectiveness of the implemented incentive measures Investment (M ) Lifetime (years) Annual investment (M /year) Achieved savings (GWh/year) Costeffectiveness ( /kwh) White Certificates n.a. 10 n.a 39, /65% tax deductions Source: ENEA elaboration Overall upgrading Thermal insulation 11, , Heating system 6, , Enabling factors for an effective implementation of the 2014 NEEAP are: Weighted average establishment of a dedicated guarantees fund for larger energy efficiency projects: the size of the fund is approximately 70 M per year for the period ; development and dissemination of standards for energy performance contracting; stimulation of the qualification for energy service providers; strengthening of the Italian participation in the EU s Research &Innovation Programme Horizon 2020; implementation of a comprehensive information and training programme (3M allocated budget for the period ). Energy Efficiency Trends and Policies in ITALY 14

15 2. ENERGY EFFICIENCY IN BUILDINGS 2.1. ENERGY EFFICIENCY TRENDS In 2013 the energy consumption of households amounted to 30.1 Mtoe, stable compared to The households consumption increased until to 2010 with an annual growth rate of 2.7%, followed by an high drop of 12.5% in 2011 and a rise in 2012: +21.7% over the period (figure 8). The main energy source is natural gas with a share of 46.7% in 2013 and +11.8% over the period Figure 8: Energy consumption of households by energy source 35 Mtoe wood heat electricity coal gas oil products Wood and electricity are the other important energy sources. In the period the consumption of oil products dropped by 53.6% falling to a share of 8.6% of total consumption in 2013 (figure 9). In the last years wood consumption showed an exponential growth due to a better performance of biomass plants (that make them preferable to natural gas and LPG plants in mountain areas) and a high quality in space heating. At the same time, there isn t a reduction in natural gas consumption because of the expansion of the natural gas network, especially in the South Italy. Energy Efficiency Trends and Policies in ITALY 15

16 Figure 9: Shares of energy consumption by energy source in households 5,2% 0,0% 22,4% 22,5% 8,6% oil products gas 3,1% coal 21,3% 50,8% 19,2% 46,7% electricity heat 0,2% ,0% 2013 wood In 2013 the energy consumption for air conditioning (space heating and air cooling) took for approximately 75% of the total consumption (Figure 10), increasing in recent years. Energy consumption for lighting and electrical appliances, like as for cooking and hot water, had a constant trend over the period, slightly down in the last years: in 2013 the share of consumption was 10.9% for lighting and electrical appliances, 8.5% for hot water and 5.5% for cooking. Figure 10: Energy consumption by types of end-use in households 35 Mtoe lighting and appliances cooking hot water air conditioning In the period the improvement in energy efficiency were not enough to offset the increases in households energy consumption mainly due to a demographic effect (more dwellings) and a lifestyle effect: more appliances for a better comfort in dwelling (figure 11). This result is also showed by the ODEX index. Energy Efficiency Trends and Policies in ITALY 16

17 Figure 11: Variation households consumption Italy Mtoe ( ) Mtoe Variation Climate effect consumption More dwellings More appliances per dwelling Larger homes Energy savings Other -3 Energy efficiency in households over the period improved only by 7.5% (figure 12). The slowdown is due to an increase in energy consumption for space heating and not of loss in energy efficiency: a high raise in wood consumption, especially related to the second residences, and expansion of the natural gas network. Figure 12: Energy efficiency in households by index ODEX (2000=100) household ODEX heating (technical) water heating (technical) cooking (technical) electrical appliances The best improvement in energy efficiency were observed for electrical appliances: 22.7% (2.0%/year) due to a considerable decrease in energy unit consumption (figure 13). Water heating and cooking improved by 19.6% and 15.5%,respectively, in the period Energy Efficiency Trends and Policies in ITALY 17

18 Figure 13: Energy unit consumption of electrical appliances in households (2000=100) refrigerator freezer washing machine dish washer large appliances In 2013 the energy consumption of services was 20.1 Mtoe. The main energy sources are natural gas and electricity with a share, respectively, of 56.5% and 38.2%. Figure 14: Energy consumption of services sector by energy source Mtoe other heat electricity gas oil products The services sector is the leading sector of overall economy: in the period it has showed a highest increase in energy consumption, +39.1%, confirmed by the growth in energy intensity, total (+32.9%) and electricity (+50.2%), and in energy consumption per employee, total (+30.3%) and electricity (+47.3%) (figure 15). Energy Efficiency Trends and Policies in ITALY 18

19 Figure 15: Energy intensity and energy consumption per employee in services sector (2000=100) energy intensity electricity intensity energy cons/emp electricity cons/emp 2.2. ENERGY EFFICIENCY POLICIES The building sector s contribution to the national targets is estimated at 4.9 Mtoe/year (including 3.67 Mtoe/year from the residential sector and 1.23 Mtoe/year from the services sector).this estimate is based on consideration of the following factors: application of the new standards required by the EPBD for buildings and by the Ecodesign Directive for space heating and cooling: the contribution to the total figure is estimated to be in the order of 1.6 Mtoe/year for residential buildings and 0.2 Mtoe/year for non-residential buildings; tax deduction mechanism: this is estimated to yield a savings of 1.38 Mtoe/year of final energy in the residential sector; thermal account: this is estimated to save 1.47 Mtoe/year of final energy use, including 0.54 Mtoe/year in the residential sector and 0.93 Mtoe in the services sector, both public and private; White Certificates: while this scheme was designed with the industrial sector in mind, based on historical data White Certificates are estimated to generate savings in the civil sector of 0.25 Mtoe/year of final energy, including 0.15 Mtoe/year in the residential sector and 0.1 Mtoe/year in the services sector. The tax deductions for energy efficiency improvement actions are granted to the civil sector, including housing and services/commercial, and consist of reductions of IRPEF (personal income tax) and IRES (corporate income tax) granted for actions improving the energy efficiency of existing buildings, in particular for 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 Energy Efficiency Trends and Policies in ITALY 19

20 shutters, and insulation of roofs, walls and floors); replace heating systems with condensing boilers or heat pumps; replace electrical water heaters with heat pump water heaters. The tax deductions can be claimed by all taxpayers, including natural persons, professionals, companies and undertakings incurring costs for installing the actions on existing buildings, parts thereof or any real estate units of any cadastral category, including rural buildings, owned or otherwise held. If the actions are executed via financial lease agreements, the deduction is granted to the user, and is calculated on the basis of the cost incurred by the leasing company. Thermal Account is the first nationwide direct incentive scheme for the generation of renewable thermal energy, as well as being the first scheme encouraging public administrations to implement energy efficiency improvement actions in buildings and technical installations. The Thermal Account became operational in July More specifically, the incentive scheme is addressed to both Public Administrations and private parties: these beneficiaries may implement the actions via an ESCO, by means of a third-party financing contract, an energy service contract or an energy performance contract. The following energy efficiency improvement actions implemented by public administrations are eligible: thermal insulation of walls; replacement of transparent vertical structures (windows); installation of screening and shading systems; replacement of heating systems with condensing boilers. As to the generation of heat from renewable sources, one or more of the following actions carried out by public administrations or private parties are eligible: replacement of heat generators with electrical and gas heat pumps, including heat pumps for the production of sanitary hot water; replacement of heat generators with biomass-fed heat generators, heating fireplaces and stoves; installation of solar thermal collectors and solar cooling systems. According to Article 4 of Directive 2012/27/EU, is currently under public consultation a long-term strategy for mobilising investments in the renovation of national stock of residential and commercial buildings, both public and private. To this end, an assessment of the size of the building stock has been carried out to estimate the investment necessary for energy-related renovation. Then, an assessment has been made of the potential national energy savings achievable by energy efficiency improvement actions in the residential and non-residential sectors, taking into account the current and planned legislative instruments and incentives, in order to achieve the national savings targets described in section Such evaluation highlighted the need to strengthen existing tools in order to overcome the barrier to investments in building energy efficiency. In particular, thanks to global and partial interventions on different building typologies, an overall potential energy saving equal to 49,000 GWh/year of final Energy Efficiency Trends and Policies in ITALY 20

21 energy has been estimated at 2020, equivalent to 3.71 Mtoe/year. To achieve this objective, it would be needed to upgrade more than 170 million m 2 of floor area per year. Table 4: Potential of final energy saving in the residential sector, years Intervention on building Unit energy saving (GWh/year) Total energy savings at 2020 Building type Type Upgraded floor area (m 2 /year) Roof Facade Windows Heating system Overall upgrading GWh/year Mtoe/year Single family Multi-family Partial 39,407, , Global 26,551,030 2,230 15, Partial 79,141, , Global 25,142,222 2,414 16, Total floor area 170,242,360 Total Energy savings 48, Source: NEEAP 2014 Concerning the services sector, a mix of the aforementioned interventions was considered, as well as their climatic characteristics, destination of use and cost/benefits ratio. The overall final energy saving can be quantified in 1.5 Mtoe/year, considering a yearly renovated floor area equal to 16 million m 2. In particular, it can be foreseen that one third of the energy saving is achieved in public schools. Table 5: Potential of final energy saving in the services sector, years Type of building Upgraded floor area Total energy savings at 2020 (m 2 /year) GWh/year Mtoe/year Private office 2,880,000 2, Public office 2,640,000 3, Hotel 1,425,000 1, Private school 1,000, Public school 4,950,000 5, Bank 782, Shopping centre 2,289,163 2, Total 15,966,974 17, Source: NEEAP 2014 Concerning policy measures, together with the aforementioned EED transposition, Ministerial Decree of 26 June 2015 completes the transposition of the European Directive EPBD 2002/91/CE. This legislative measure comprises three different decrees. The first one defines the requirements of nearly zero energy buildings and set the new minimum requirements, to be in force since October A new calculation method for the energy performance is introduced, based on the comparison with a reference building having the characteristics set in the decree. All energy use needed to comply with the standard use of the building is included in computation of the energy performance of the building, which is referred to different classes. In the second decree, the format for technical project reports is defined, relative to new and nearly zero energy buildings, relevant retrofitting and technical installations. The last decree includes the national guidelines for Energy Performance Certificates (EPC), to be in force since October A homogeneous information system is also set for all Italian regions, aimed at the management of a new registry of EPC and thermal installations, to Energy Efficiency Trends and Policies in ITALY 21

22 be created by ENEA and the Regions by the end of The new registry should be harmonized with the existing regional registries. Each region should control yearly its own EPCs, for a minimum of 2% of the total. 3. ENERGY EFFIENCY IN TRANSPORT 3.1. ENERGY EFFICIENCY TRENDS In 2013 the energy consumption of transport sector amounted to 38.2 Mtoe, -2.3% compared to The road transport is the main mode, both for passenger and freight transport: in 2013 it absorbed 86.6% of energy consumption of transport sector (in slight decrease in the last years), followed by air transport (international air transport included), 9.7%, and water transport, 2.6 (figure 16). Figure 16: Energy consumption of transport sector by mode Mtoe air transport water rail road The energy consumption by fuel reflects this situation: in 2013 oil products covered 92.9% of energy consumption but their share had fallen from 98.0% in Biofuels have grown rapidly: in 2013 the consumption was 1.3 Mtoe reaching the share of 3.3% (figure 17). Energy Efficiency Trends and Policies in ITALY 22

23 Figure 17: Energy consumption of transport sector by fuel Mtoe biofuels electricity gas oil products Since 2007 the energy consumption has started to decrease because of the economic crisis: -15.8% since 2007 and -9.7% over the period The variation in energy consumption is due to a reduction in the passenger and freight traffic, measured in passenger-kilometre and tonne-kilometre (activity effect), and changes in energy consumption per passenger-kilometre and tonne-kilometre (energy savings): the energy consumption per passenger-kilometre is decreasing because of decrease in the energy specific consumption; the energy consumption per tonne-kilometre is rising because of the increase in travels but less goods transported per travel (figure 18). Figure 18: Variation transport consumption Italy Mtoe ( ) Mtoe -1 Variation consumption Activity effect Energy savings Modal shift Other In 2013 the energy consumption of road transport was 33.0 Mtoe: cars were the main transport vehicles with a consumption of 17.8 Mtoe, 53.7% of the total energy consumption (62.5% in 2000) (figure 19). Energy Efficiency Trends and Policies in ITALY 23

24 Figure 19: Energy consumption of road transport s by mode Mtoe trucks and light vehicles buses motorcycles cars Over the period the energy consumption of road transport decreased by 10.8%: cars consumption reduced by 23.0% because of new cars more efficient, shift from gasoline cars to other type of cars and the economic crisis of 2007, while the other road transport modes had an increase in energy consumption (figure 20). Figure 20: Energy consumption trends of road transport (2000=100) cars motorcycles buses trucks and light vehicles The energy consumption by transport mode follows the trends of passenger and goods transport (measured in passenger-kilometre and tonne-kilometre). In the period the passenger transport decreased by 9.4%: the drop is due to a reduction in passenger transport by car, the main passenger transport mode (74.3% in 2013), while there was an increase for the other transport modes (figure 21). Energy Efficiency Trends and Policies in ITALY 24

25 Figure 21: Passenger transport by mode (2000=100) cars public modes trains domestic air motorcycles The same trend was observed for goods transport: in the period the road transport decreased by 31.3% with a share of 65.1% in 2013 from 75.9% in 2000, the water transport increased by 46.4% reaching a share of 25.2%. In figure 22 are showed the trends of goods traffic by mode and energy consumption of road and water transport. Figure 22: Goods traffic transport by mode and energy consumption Gtkm =100 road train water road EC water EC The energy efficiency index of transport sector in 2013 was 87.2, with an improvement of 12.8% in the period (figure 23). The efficiency of transport sector depends mainly on the energy efficiency of transport road because cars and trucks take up almost 90% of energy consumption: over the period the energy efficiency of cars improved by 15.8% while energy efficiency of trucks worsened by 59.0%. The other transport modes have improved in energy efficiency but their impact is limited: 46.9% for water transport, 33.4% for air transport and 10.3% for rail in the period Energy Efficiency Trends and Policies in ITALY 25

26 Figure 23: Energy efficiency in transport sector (2000=100) transport ODEX rail water air cars trucks and light vehicles 3.2. ENERGY EFFICIENCY POLICIES In 2013 the Ministry of Infrastructure and Transport set up a "National infrastructure plan for installing electric vehicles charging points" (PNIRE) to ensure the uniform spread of electric charging points across the national territory. More specifically, in the short term (1-2 years), an infrastructure network will be set up with charging points in urban and metropolitan areas. In the medium and long term (3-5 years) charging points will also be set up in non-urban areas and along the motorways. The charging points will be both public and private, in a ratio of 1 to 8. The funding allocated to the implementation of the Plan, to be achieved by means of the signing of special programme agreements totals EUR 47.6 million for the three-year period , including EUR 14.3 million for 2014 and EUR 4.9 million for The funding, from a special fund in the Ministry of Infrastructure and Transport s budget, will be used for the co-financing (up to 50 %) of projects for the installation of systems to develop infrastructure networks for recharging vehicles as part of programme agreements with regional and local authorities. The Plan also makes provision for incentives for buying vehicles with overall low emissions worth a total of EUR 108 million in the three-year period , including EUR 31.3 million for 2014 and EUR 40.4 million for The Plan, already in its startup phase, will be used as a reference for future guidelines for the balanced creation of an electric vehicle recharging system, taking account of the specific features of Italy and actual need indifferent situations. The Plan emphasises the importance in the short term of infrastructure in the most polluted urban areas and on main roads into the major cities. Unless amendments are made to reflect sudden changes in electric vehicle usage, the Plan provides for the following: by 2016: recharging points accessible to the public; by 2018: recharging points accessible to the public; by 2020: recharging points accessible to the public. Energy Efficiency Trends and Policies in ITALY 26

27 Funds are addressed to projects to set up a network of electric vehicles charging points in the following areas: sustainable mobility in urban/metropolitan areas; public and private fleets; petrol stations; two-wheeled vehicles (motorcycles). Law No 134/2012 (Article 17-decies) introduced incentives for the purchase of low CO 2 emission vehicles in the period These incentives are paid out through an ad-hoc fund with a budget of 50 M for 2013 and 45 M respectively for 2014 and 2015, mainly targeting the purchase of company and public-use vehicles. Subsequently "Stability Law 2013" of 24 December 2012 reduced the overall budget for the three-year period to 120 M. In compliance with this Decree, the Ministry of Economic Development issued an "Implementing Decree concerning the incentives for the purchase of low emission vehicles" (February 2013), which detailed the procedure for requesting the incentives and the allocation of resources for As at January ,584 vehicles had been registered, of which 535 electric and 541 hybrid. Most of the vehicles which benefited from the incentives (about 1,820) have CO 2 emissions between 50 and 95 gco 2 /km. The Stability Law 2014 has earmarked EUR 500 million for the purchase of new public transport vehicles, including EUR 200 million for renewing the railway cars and EUR 300 million for renewing the bus fleet. The feasibility of launching a 5-year financing plan to renew the bus fleet (around 50,000 vehicles) is currently being assessed and alternative incentive schemes for the private sector are being considered. The aim is to renew completely over the next five years the national bus fleet which has an average age of 12 years. This should generate energy savings in the region of 0.04 Mtoe. By drawing on several funding sources, by 2016 it is planned to commission about 57 km of underground railways, 20 km of tramways and 20 km of regional railways for a total cost of about EUR 6.0 billion (around 80% of which have already been allocated by Stability Law 2014). By 2020 the total length of completed railways will comprise 130 km of underground railways, 30 km of tramways and 45 km of regional railways for a total cost of about EUR 17 billion. Some of the major railway development works targeted by the funding include underground Line C in Rome, Lines M1, M2, M3, M4 and M5 in Milan, some section of Lines 1 and 6 in Naples, the Turin underground and the metropolitan railway of Brescia. The programming period of the Structural Fund includes a specific thematic area for "Sustainable movement of people and goods" whose main aim is to promote sustainable transport systems and to remove bottlenecks in the main network infrastructures; this area has a budget of about EUR 2 billion. In particular, railway projects in progress will be prioritised, specifically the largescale or major projects already launched in programming period and the works included in the TEN-T corridors. By 2016, about 45 km of new railways should become operational on ordinary lines and 57 km on the high-speed/high-capacity network. By 2020, the projects included in the programming documents will have been deployed to a great extent, reaching 140 km of railways on the ordinary lines and 500 km on the high-speed/high-capacity network. This because by 2020 the following new lines should be commissioned: Palermo-Messina- Catania, the high-speed line Energy Efficiency Trends and Policies in ITALY 27

28 Tortona/Novi Ligure-Genova and Turin-Venice. The total estimated costs of these works is about EUR 30 billion. According to estimates made on the basis of the data currently available, completion of these major works and upgrading of passenger and freight railway services should generate savings of some 0.45 Mtoe by To date, the commissioning of high speed railways has implied a demand reduction on corresponding flight routes, with a final energy saving equal to 0.09 Mtoe/year up to In accordance with Directive 2010/40/EU, in 2014 the National Intelligent Transport System (ITS) Action Plan was adopted: it identifies the national priorities till It analyses the state of the Art of ITS deployment in Italy and identifies strategies and policies to be undertaken, for each of the priority areas included in the EU Directive. It is currently under discussion by all the involved stakeholder in order to identify and launch concrete action for the deployment of the Action Plan. The plan identifies four priorities up to 2017: optimal use of road, traffic and travel data; continuity of ITS traffic and freight management services; ITS applications for road safety and transport security; linking the vehicle with the transport infrastructure. The introduction to the Action Plan reports that operation of the systems implemented to date globally at both urban and extra-urban level has led to effective energy savings through the deployment of ITS in the range of 10-12%. All these actions will together generate savings to 2020 of 1.97 Mtoe: this value includes the savings of 0.12 Mtoe produced by the State incentives for renewal of the car fleet in ENERGY EFFICIENCY IN INDUSTRY 4.1. ENERGY EFFICIENCY TRENDS In 2013 the energy consumption in industry fell to 27.8 Mtoe, -8.1% compared to The energy consumption decreased all over the period , -30.5%, and the slight growth in 2010 was blocked by the financial crisis on credit market and public budget, started in The industrial production index showed the same trend (figure 24). In the period all energy sources have dropped: -59.2% for oil products, -44.4% for gas, -31.0% for coal and -18.8% for electricity. Only renewable sources were increasing: +91.7% reaching a consumption of 0.6 Mtoe. Energy Efficiency Trends and Policies in ITALY 28

29 Figure 24: Energy consumption in industry by fuel and industrial production index (2010=100) Mtoe =100 oil products gas coal electricity heat renewables production index In 2013 electricity absorbed 35.6% of total energy consumption followed by gas with a share dropped to 34.8% from 43.4% in 2000 (figure 25). Figure 25: Shares of energy consumption by fuel in industry 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0,0% 0,0% 0,0% 0,0% 7,0% 7,2% 7,4% 7,5% 8,4% 9,8% 9,9% 7,9% 8,5% 9,2% 30,5% 31,6% 31,7% 30,4% 31,0% 31,4% 32,8% 33,4% 33,7% 34,6% 34,9% 35,6% 34,3% 35,6% 8,6% 9,5% 8,2% 9,4% 9,6% 10,1% 9,6% 9,8% 9,1% 6,2% 9,3% 11,1% 11,3% 8,6% 43,4% 43,5% 43,6% 42,3% 36,4% 35,6% 35,1% 34,1% 32,3% 33,6% 33,6% 32,6% 33,3% 34,8% 16,7% 14,7% 15,8% 17,3% 15,3% 15,1% 14,4% 14,6% 15,6% 14,4% 11,0% 11,2% 10,8% 9,8% oil products gas coal electricity heat renewables The performance in industry depends on manufacturing industry: -8.2% of energy consumption in 2013 compared to 2012, -32.6% over the period In 2013 all industrial branches had a reduction in energy consumption compared to 2012, with peaks observed for steel, -19.1%, non ferrous metals, -16.3%, and paper, -14.3%, with the exception of chemicals, +0.2%. Over the period for almost all industrial branches were observed decreases greater than 30% (figure 26): -56.9% for textiles, -38.3% for non metallic minerals and for non ferrous metals, exceptions were -23.5% for paper, -24.0% for food and -25.8% for steel. Industrial production decreased in the period but less than the energy consumption as evidence of improvement in energy efficiency. Energy Efficiency Trends and Policies in ITALY 29

30 Figure 26: Energy consumption of manufacturing industry by branch Mtoe other manufacturing machinery non ferrous metals steel non metallic minerals chemicals paper textiles food In 2013 the energy-intensive branches absorbed almost two-thirds (64.2%) of the total energy consumption of industry: a fifth was consumed by primary metals, followed by non metallic minerals, 17.9%, chemicals, 14.8%, and paper, 7.3%. The other industrial branches have used less than 10%, except for machinery (13.4%)(figure 27). Figure 27: Shares of energy consumption by branch in industry 2,4% 12,8% 17,7% 1,4% 0,5% 7,7% 8,7% 6,7% 6,6% 15,3% 2,3% 3,4% 1,3% 9,5% 4,2% 7,0% 7,3% 13,4% 14,8% 18,9% food textiles paper chemicals non metallic minerals steel non ferrous metals machinery 20,2% ,9% 2013 other manufacturing mining construction In particular, the production of energy-intensive branch steel, cement and paper increased until to 2007 (figure 28). Because of the crisis, the production dropped drastically: in 2009 the production of steel decreased by 37.1% compared to 2007, the production of cement by 23.6% and the production of paper by 16.9%. The crisis of 2011 has blocked the recovery: in % for steel and +8.6% for paper, in % for steel and -5.9% for paper compared to 2011, in % for steel and -0.6% for paper compared to The production of cement has continued to decrease. Energy Efficiency Trends and Policies in ITALY 30

31 The trend in production has affected the energy unit consumption. The unit consumption decreased until 2007 and increased during the crisis years as a result of the fact that in recession the large equipment don t operate at full capacity resulting in a loss of efficiency. As well as a part of the energy consumption is not related to production levels. Figure 28: Energy unit consumption and production of steel, paper and cement toe/t 0,35 0,30 0,25 0,20 0,15 0,10 0,05 0, =100 steel paper cement steel prod paper prod cement prod The decrease in energy consumption in the period is mainly determined by improvement in energy efficiency and the reduction of the activity, especially since 2007 because of the crisis (figure 29). A higher value added per unit of production, value of products, contributed to the reduction in energy consumption per 2%, as also the structural effects (caused by the fact that individual branches with different energy intensities are not growing at the same rate). Figure 29: Variation industry consumption Italy Mtoe ( ) Mtoe -2-4 Variation consumption Activity Structure Value of products Energy savings Other In the figure 30 are shown the variation of the energy consumption before and after the crisis. Energy Efficiency Trends and Policies in ITALY 31