eeos in italy - energy · development (with others ministries) aeegsi regulatory authority for...

EEOS in Italy Alberto Pela, Regulatory Affairs - GSE

Albert Borschette Conf. Centre - Brussels

15-16 November, 2016

- 2 -

Ownership 100%

MEF

Ministry of

Economy and Finance

MSE

Ministry of Economic

Development

(with others Ministries)

AEEGSI

Regulatory Authority

for Electricity, Gas and Water

Decisions Guidelines

MISSION: GSE promotes the development of renewable energy sources and energy

efficiency in Italy, by granting economic incentives and supporting the policy makers

GSE

Electricity market,

natural gas market and

environmental

markets

Research on the

energetic system

Purchase of electricity

for small customers

Ownership 100% Ownership 100% Ownership 100%

- 3 -

No

n s

olo

en

erg

ia e

lettric

a

Agenda

EU & National Regulatory Frameworks

Italian EEO & EEA – Art 7 Measures

National results Art 7 EED – Energy Savings achieved

The Italian White Certificates Scheme

- 4 -

EU Regulatory Framework – Overview

In Italy the EED provisions have been fully transposed into

national laws through the Lgs. Decree n. 102/2014

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.

The Italian EEO & EEA schemes should generate cumulative savings of 25.83

Mtoe (60% of which should result from the white certificate mechanism).

- 5 -

Art 7 Measures

Italian EEO & EEA schemes

- 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 -

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 50.000 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 -

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 -

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

- 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 2014-2015, Italy is on track to fulfill the EED

Art. 7 2020 targets

- 12 -

The WhC scheme :

In the 2005-2015 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 2014-2015 : 1,80 Mtoe

• Expected energy savings (Mtoe) to 2020: 16 Mtoe


Source: PAEE 2014, ENEA

- 13 -

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 2007-2015 from Tax deductions: 1,01 Mtoe

• 2014-2015: 0,6 Mtoe

• Expected energy savings (Mtoe) to 2020: 3,92 Mtoe



- 14 -


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


- 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 -

The support scheme is based on the obligation, placed on electricity and natural gas distributors with more than 50.000 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.

3.03 3.71 4.26

5.23

2.48

3.04 3.49

4.28

0

2

4

6

8

10

12

2013 2014 2015 2016

Obligation (Millions of WhC)

Natural GasDistributors

ElectricityDistributors

5,51 6,75

9,51

7,75

National EEO– WhC Mechanism

- 18 -

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 50001-certified

energy management system in place.

The market (national energy stock exchange or bilateral

agreements) defines the WhCs price.


National quantitative energy-

saving targets - incremental over

time - for electricity and gas

distributors for the years from

2013 to 2016 (national Decree of 28

Dec. 2012):

- 19 -

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 -

Italian White Certificates: subjects

Non-obliged

electricity and natural gas distributors

E.S.Co

Energy Services Company

Companies with an energy manager,

appointed according to Law 10/1991

Companies with an energy manager,

appointed on a voluntary basis

Companies certified ISO 50001

electricity and natural gas distributors

(+ 50,000 customers) OBLIGED PARTIES - (DEMAND)

VOLUNTEER PARTIES (SUPPLY)


- 21 -

ENEL S.P.A. 3,64

M.WhC 85%

ACEA S.P.A. 0.20

M.WhC 5%

A2A S.P.A. 0.17

M.WhC 4%

Other 10 Distributors

0.25 M.WhC

6%

13 Electrical Distributors: 4.26 Million of WhC

ITALGAS S.P.A. 0.82

M.WhC 23%

2i RETE GAS S.P.A.

0.67 M.WhC

19%

HERA S.P.A. 0.26

M.WhC 7%

A2A RETI GAS S.P.A.

0.23 M.WhC

7%

OTHERS 44

Distributors 1,52

M.WhC 44%

48 Natural Gas Distributors: 3.49 Million of WhC

1 distributor has almost 50% of the obligation

6 distributors have 75% of the obligation

61

Italian WhC: obliged distributors (2015)

- 22 -

Italian WhC: active subjects (2015)

2,48

3,04 3,49

4,28

17 39

967

117 89 4

0

200

400

600

800

1000

1200

ElectricalDistributors

NaturalGas

Distributors

E.S.Co. EnergyManager(Obliged)

EnergyManager

(Volunteer)

ISO50001

- 1233 active subjects, 78% E.s.co.

- Distributors generate only 4,7% of WhC

- 96% of WhC have to be traded

- 23 -

White Certificate Trading System: spot market & bilateral agreements

Demand

3,04 3,49

Regulated

Spot Market

Supply

Obliged

Parties

Volunteer

Parties

Bilateral

Agreements

Parties have to

communicate to

GME through

the WhC

Register

• N° of WhCs

• price of each

agreement

WhC

WhC €

€

- 24 -

Italian White Certificates: Evaluation of Energy Savings

• Subject matter = defined by decree

• Additionality = defined by decree

• Energy saving = estimated

Deemed Saving

(RVC-S)

• Subject matter = defined by decree

• Additionality = defined by decree

• Energy saving = measured

Analytical

(RVC-A)

• Subject matter = customized by proposal

• Additionality = proposed by subjects and verified by GSE

• Energy saving = measured

Energy Monitoring

Plans

(PPPM & RVC-C)

- 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

2) Analytical

3) Energy Monitoring Plans

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.

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.

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

Non additional

energy saving

100

Ex-Ante

Consumption

Baseline

Consumption

80

70

Ex-Post

Consumption

Additional

energy saving

Regulation &

standard

Technological

evolution

Market

White

Certificates

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

- 27 -

Italian White Certificates: evolution over 10 years of implementation

0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Deemed (RVC-S)

Analytical (RVC-A)

Monitoring (RVC-C)

2014 - 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 2015

Civil 32%

Lighting 4%

Industrial

64%

Of which:

• 1.604.891 (IND-T: “Industrial Heat” - Industrial processes:

generation or heat recovery for cooling, drying, burning,

melting)

• 325.896 (IND-E: “Industrial Efficiency” - Industrial processes:

efficient dry systems (motors, etc.) automation and power

factor measures)

• 165.748 (IND-GEN: “Industrial Generation” - Industrial

processes: electricity generation from renewable sources,

heat recovery or cogeneration)

• 1.029.566 (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)

3.126.101 WhC were issued to the Industrial Sector (64%)

- 29 -

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 2017-2020 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.

Next Perspectives

- 30 -

• Italy is the first country of the world in the implementation of WhC

mechanism (2005—2016, 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.

WhC – Lesson learnt & conclusion

- 31 -

Conclusion

According to the 2016 International Energy Efficiency Scorecard published by the

nonprofit American Council for an Energy-Efficient Economy (ACEEE), Italy ranks 2nd

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”

Thank you

[email protected]

eeos in italy - energy · development (with others ministries) aeegsi regulatory authority for...

Documents