eu policies on the promotion of energy...
TRANSCRIPT
EU policies on the promotion of energy services
Dr Marina Economidou and Paolo Bertoldi
Renewables & Energy Efficiency Unit,Institute of Energy and Transport, JRC
BASREC Conference
Ministry of Economy, Warsaw17/11/2015
Contents
1. EU policy framework
2. JRC support for ESCOs
• European Commission's in-house science service
• Established in 1957 (EuratomTreaty)
• Supporting EU policies with independent, evidence-based scientific and technical support
• 7 Institutes (Directorates) in 6 locations
• ~ 3.000 staff (2015)
• 1370 publications in 2014
The Joint Research Centre (JRC)
PART 1EU POLICY FRAMEWORK SUPPORTING ENERGY SERVICES
EU Energy and Climate 2030 targets
The EU countries have agreed to the following objectives to be met by 2030:
• a binding EU target of at least a 40% reduction in greenhouse gas emissions by 2030, compared to 1990;
• a binding target of at least 27% of renewable energy in the EU;
• an energy efficiency increase of at least 27%, to be reviewed by 2020 potentially raising the target to 30%, by 2030.
ENERGY EFFICIENCY DIRECTIVE
ServicesEnergy supply
House-holds
Industry
Generalmeasures
promoting EE
New EED
Sectoral measures
Monitoring & Reporting
Indicative national EE
targets
Public sector
Energy Efficiency Directive - 2012/27/EU
• Energy services contracts & clauses
• Info on relevant financial instruments
• Energy services contracts & clauses
• Info on relevant financial instrumentsInformation dissemination
• Encouragement of quality label development, inter alia, by trade associations
• Encouragement of quality label development, inter alia, by trade associations
Quality labels
• Regular updates of list or interface of available energy service providers and
• Regular updates of list or interface of available energy service providers and
Energy Service providers
• Publication of model contracts
• Best practices on EPCs
• Publication of model contracts
• Best practices on EPCsEnergy services in public sector
• Qualitative review of current/future development of market
• Qualitative review of current/future development of market
Market Review
• Market intermediaries, independent mechanism for complaints, national contact point for consumers
• Market intermediaries, independent mechanism for complaints, national contact point for consumers
Other
Art. 18
Article 5
Promotion of use of energy services in the public sector (central government renovations)
Article 7
Article 8Article 19
Boost for the uptake of energy audits
Actors such as ESCOs can contribute towards meeting the end-use target on energy companies
Public purchasing, annual budgeting and accounting to ensure public bodies can use EPCs and TPF
Energy Efficiency Directive - 2012/27/EU
Article 18
…but also
Article 20
Development of National Energy Efficiency Fund
PART 2JRC SUPPORT FOR ESCOs
Available material at: http://iet.jrc.ec.europa.eu/energyefficiency
JRC work on ESCOs
2005
2007
2010
2013
2015/2016
2011
2011
2012
2014
2015
Market analysis reports Expert workshops
European Status Report
European Status Report
European Status ReportNon-European Status Report
European Status Report
Energy Services Market in the EU Workshop
Energy Efficiency Policies, ESCOs and Financing
Workshop Energy Service Companies in Enlargement and Associated Countries
European Workshop on the Facilitation of Energy Services and the ESCO market in Europe
Upcoming European Report
9th EU JRC workshop on Energy Efficiency Policies
Methodology
• Online survey combined with expert interviews and complimented
by national reports, scientific articles, legal documents etc.
• Country-by-country reviews of ESCO market in the EU and beyond:
• Databases of ESCOs and ESCO projects
� Current ESCO market � Financing ESCO projects
� Types of projects � Barriers
� Regulatory & market factors � Future expectations
� Awareness and trust
Polish Market Review 2013Market barriersOverall status
ESCO markets across the EU (2013)
Large
Medium
Small
Zero
NA
Source: Bertoldi, Kiss, Panev, & Labanca (2014)
European market development2010-2013 market changes
� During the past ca. 3 years most of the European ESCO markets have grown in size and/or developed their complexity. Thus the average European ESCO market has improved.
� more ESCOs;
� more projects;
� areas where they were rare before (household, even transport)
� higher level of institutionalization.
� Development is also observed in case of non-EU countries.
� The growth has been stimulated by demand, i.e. an expansion of interest from the side of potential clients
� Active framework and positive impact of the EU level legislation and programmes
� Few mature markets: DE, CZ, FR, AT - even these can expect to go through significant growth in the future.
� The ESCO sector was able to kick-off in several typical non-ESCO countries, such as Denmark and Spain.
� Decrease or deterioration of the ESCO sector was rare during the observed period (HU, maybe AT?, maybe SE?).
� Large differences between national markets – they are only slightly transferable.
� The geographical distribution of ESCOs and projects is uneven also within countries.
European market development2010-2013 market changes
ESCO market size across the EU
Investment volume Undertaken projects
BE €1.5 million (EPCs) AT 15-20 EPCs; 30-35 ESCs
CZ €10 million yearly CY 2 EPCs in 2014
DE €1.6-2 billion (2010)* CZ 10-15 EPCs yearly
ES ͂ €1 billion yearly DE Around 200**
FR €189 million (2013) FR 143 EPCs
PLPLN 40-100 million turnover(2011)
SE 10 EPCs in recent years
SESEK 40 million (underestimate)yearly
UK GBP 180 millionSource: JRC analysis based on National Energy Efficiency Action Plans 2014
Barriers to market development
Information
&
awareness
Information
&
awareness
Absence of success storiesAbsence of
success stories
Low client awareness on
ESCO concept or EPC models
Low client awareness on
ESCO concept or EPC models
Lack of awareness on how to access financing
Lack of awareness on how to access financing
Undervalued benefits of
energy efficiency improvements
Undervalued benefits of
energy efficiency improvements
Institutional
& legislative
Institutional
& legislative
Problematic government procurement
rules
Problematic government procurement
rules
Legislations creating
unfavourable conditions towards EE
Legislations creating
unfavourable conditions towards EE
Lack of accrediting
mechanisms to certify ESCOs
Lack of accrediting
mechanisms to certify ESCOs
FinancialFinancial
Difficulties accessing financing
Difficulties accessing financing
Scarce or expensive capital/ Stale banking sector
Scarce or expensive capital/ Stale banking sector
Conventional financing rules are incompatible
with EPCs
Conventional financing rules are incompatible
with EPCs
Lack of experience in EE projects of financial institutions
Lack of experience in EE projects of financial institutions
Market &
external
Market &
external
Low energy prices
Low energy prices
High perceived risk compared to other investment
options
High perceived risk compared to other investment
options
Small scale projectsSmall scale projects
Multi-party ownership and split incentives
Multi-party ownership and split incentives
Technical &
administrati
ve
Technical &
administrati
ve
Complex administrative procedures
Complex administrative procedures
High transaction costs
High transaction costs
Complex M&V protocols; future
savings predictability
issues
Complex M&V protocols; future
savings predictability
issues
Lack of technical skills/experience in EPC projects
Lack of technical skills/experience in EPC projects
BehaviouralBehavioural
Client risk aversion about EPC models or
future uncertainty
Client risk aversion about EPC models or
future uncertainty
Limited confidence in ESCO services
Limited confidence in ESCO services
Preference for in-house solutions
Preference for in-house solutions
Unwillingness to take on long-term debt
Unwillingness to take on long-term debt
EED policy support for energy services
Legislative
measures
Financial
incentives
Info.
measures
Registry
of ESPs
AT � � �
BE
BG � �
CY � � �
CZ � � � �
DE
DK � �
EE �
EL � � �
ES � � �
FI � �
FR
HR � � � P
HU
Legislative
measures
Financial
incentives
Info.
measures
Registry
of ESPs
IE �
IT
LT �
LU
LV � �
MT
NL � �
PL � �
PT
RO
SE P
SI
SK P
UK � �
ESP: Energy Service ProvidersP: Planned
Source: JRC analysis based on National Energy Efficiency Action Plans 2014
Energy services market
• Published EPC models: AT, CY, CZ, EL, ES, FR, LU, PL, NL, UK
• Current number of ESCOs still low
• Germany, Spain, Italy: more than 300-400
• All other countries: less than 50
• Size of EPC market is generally small
• Current trends in market for energy contracting:
• Growth: BE, DE, ES, FR, SE and UK
• Decline: AT, PL
• Future trends in the market for energy contracting• Positive trends reported for: CY, CZ, DE, NL
Measurement and verification (M&V)
M&V's pivotal role in the overall project success
• project savings are used to pay the financing obligations of EPCs
• energy savings represent avoided energy consumption
Use of M&V protocols in the energy service sector in 22 EU MSs
Source: ten Donkelaar, et al., 2013
A few summarizing points
Supportive EU policy framework
Large variations in terms of ESCO market development, size, features and frameworks among European countries
But… the markets have more in common than before:• Almost all markets have grown since 2010;• More demand driven markets, increasing number of policies supporting ESCO solutions and growing ESCO associations;
• Facilitators gain importance as an effective means to mediate between client and suppliers;
• Model contracts, standards and/or intensive information dissemination are developed and carried out by third
parties/market facilitators;
• Participation of a wide range of companies, indicating an open and competitive market.
