White certificates in Italy

Dario Di Santo, FIRE

Berlin, 11 November 2015

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www.fire-italia.org

The Italian Federation for the Rational use of Energy is a no-profit association founded in 1987 that promotes energy efficiency, supporting energy manager, ESCOs and other companies dealing with energy.

Besides the activities directed to its nearly 450 members, FIRE operates under an implementing agreement with the Ministry of Economic Development to manage the Italian energy manager network since 1992.

In order to promote energy efficiency FIRE cooperates and deals with public authorities, energy technology and service companies, consultants, medium and large consumers, universities and associations to promote best practices and improve the legislation.

FIRE manages SECEM - an accredited body - to certify the Energy management experts according to the standard UNI CEI 11339.

FIRE: the association for energy efficiency

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445 members in 2014, 228 persons and 217 organizations.

FIRE: the association for energy efficiency

Some members of FIRE:

A2A calore e servizi S.r.l. - ABB S.p.a. - Acea S.p.a. - Albapower S.p.a. - Anigas - Atlas Copco S.p.a. - Avvenia S.r.l. - AXPO S.p.a. - Banca d’Italia - Banca Popolare di Sondrio - Bit Energia S.r.l. - Bosh Energy and Building Solution Italy S.r.l. - Bticino S.p.a. - Burgo Group S.p.a. - Cabot Italiana S.p.a. - Carraro S.p.a. - Centria S.p.a. - Certiquality S.r.l. - Cofely Italia S.p.a. - Comau S.p.a. - Comune di Aosta - CONI Servizi S.p.a. - CONSIP S.p.a. - Consul System S.r.l. - CPL Concordia Soc. Coop - Comitato Termotecnico Italiano - DNV S.r.l. - Egidio Galbani S.p.a. - ENEL Distribuzione S.p.a. - ENEL Energia S.p.a. - ENEA - ENI S.p.a. - Fenice S.p.a. - Ferriere Nord S.p.a. - Fiat Group Automobiles - Fiera Milano S.p.a. - FINCO - FIPER - GSE S.p.a. - Guerrato S.p.a. - Heinz Italia S.p.a. - Hera S.p.a. - IBM Italia S.p.a. - Intesa Sanpaolo S.p.a. - Iren Energia e Gas S.p.a. - Isab s.r.l. - Italgas S.p.a. - Johnson Controls Systems and Services Italy S.r.l. - Lidl Italia s.r.l. - Manutencoop Facility Management S.p.a. - Mediamarket S.p.a. - M&G Polimeri Italia - Omron Electronics S.p.a. - Pasta Zara S.p.a. - Pirelli Industrie Pneumatici S.p.a. - Politecnico di Torino - Provincia di Cremona - Publiacqua S.p.a. - Raffineria di Milazzo S.c.p.a. - RAI S.p.a. - Rete Ferroviaria Italiana S.p.a. - Rockwood Italia S.p.a. - Roma TPL S.c.a.r.l. - Roquette Italia S.p.a. - RSE S.p.a. - Sandoz Industrial Products S.p.a. - Schneider Electric S.p.a. - Siena Ambiente S.p.a. - Siram S.p.a. - STMicroelectronics S.p.a. - TIS Innovation Park - Trenitalia S.p.a. - Turboden S.p.a. - Università Campus Bio-Medico di Roma - Università Cattolica Sacro Cuore - Università degli studi di Genova - Varem S.p.A. - Wind Telecomunicazioni S.p.a. - Yousave S.p.a.

Our membership include organization and professionals both from the supply and the demand side of energy efficiency services and solutions.

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FIRE: the association for energy efficiency

Besides being involved in many European projects, listed next, FIRE implement surveys and market studies on energy related topics, information and dissemination campaigns, and advanced training.

Some of FIRE clients over the years: Ministry of Environment, ENEA, GSE, RSE, large organizations (such as Centria, ENEL, Ferrovie dello Stato, FIAT, Finmeccanica, Galbani, H3G, Telecom Italia, Unioncamere), universities, associations, energy agencies and exhibition organizers.

www.fire-italia.org

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www.secem.eu

SECEM

SECEM, European System for Certification in Energy Management, is a certification body created by the FIRE.

SECEM was the first body to offer third-party certification for Energy Management Experts (EMEs) according to UNI CEI 11339 and is accredited according to the ISO/IEC 17024 standard.

In Italy two standards were developed in order to promote the qualification of energy efficiency operators: UNI CEI 11339 for EMEs was issued in 2009, UNI CEI 11352 for ESCOs was published in 2010. A new standard for energy auditor is presently under preparation.

Both the mentioned standards are recognized from the national legislation within the energy audit obl igat ions for large companies introduced by the EED directive and the white certificate scheme.

The IEE ENSPOL project

The ENSPOL project’s main aim is to support member states who intend to set up new EEO schemes or implement alternative measures, as well as inform about the on-going development of existing schemes, and support member states with an existing EEO scheme to improve it, learning from and building on existing experiences.

The specific objectives of ENSPOL are to: Assess the relative strengths and weaknesses of EEOs and alternative measures based on the existing experiences and plans of member states and make recommendations for the most appropriate approaches against different criteria and under different conditions. Improve the knowledge and capabilities of member states (both within and outside of the project) with regards to the different options available for implementation of Article 7 (EEOs and alternative measures). Ensure the effective engagement of the broad range of stakeholders with an interest in the implementation of Article 7 and promote a wide consultation at European level. Complement and enhance the work of existing EU and member states initiatives concerned with the implementation of Article 7 EED.

The ENSPOL project started up in 2014 and will go on till mid 2016.

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Partners:JIN(NL)ABEA(BG)ADEME(FR)AEA(AT)CRES(GR)DEA(DK)EST(UK)FIRE(IT)KAPE(PL)OUCE(UK)SEI(UK)UPRC(GR)VITO(BE)

More information at: www.enspol.eu.

ContractN°:IEE/13/824/SI2.675067

Energy efficiency incentives in Italy

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White certificates

Tax deductions 50% e 65%

RES incentives (D.M. 6 luglio 2012)

Heat account

Other options (Elena, Jessica, EEEF, structural funds, local funds, etc.)

Source: FIRE.

CHP: high efficiency cogeneration DH: district heating

RES: renewable energy sources EEEF: European energy efficiency fund

Energy efficiency Thermal RES Electrical RESCHP-DH

WhC and 20-20-20 Programme

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-

5,0

10,0

15,0

20,0

25,0

2005200620072008200920102011201220132014201520162017201820192020

Na#onalenergyefficiencytargetsandWhCtargets(Mtoeofprimaryenergyandmillionsofcer#ficates)

WhCtargetsasMtoe WhCtargetsasnumberofwhitecerAficatesNaAonalenergyefficiencytargets Source:FIRE.

Na#onalenergystrategytarget(15.5Mtoefinalenergy)

2006/32/ECdirec#vetarget

WhCshouldcover≈60%ofthe2020targetlinkedwiththeapplicaRon

ofEED’sart.7.

The scheme basics: EEO + WhC trade

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Demand

WhC is an EEO DSOs have to meet energy

saving targets

Certificates can be traded on the market

Voluntary parties (ESCOs and

companies with energy manager or EnMS) can also obtain certificates

Supply

WhC is an incentive

1WhC=1addiRonaltoe

Allsectorsandallenergyefficiency

projectsareallowed.

Source: FIRE.

Main aspects related to EEOs

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ALLOWED PROJECTS

TARGETS

OBLIGED AND VOLUNTARY PARTIESCONTROLS

ADDITIONALITY AND BASELINE

COSTS AND COST-EFFECTIVENESS

SAVINGS ASSESSMENTRELATIONSHIP WITH REGULATIONS

For further information: www.enspol.eu

White certificates: main numbers

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70% WhC comes from

ESCOs25% from companies

with energy manager

Target 2013-2016:

from 5.5 to 9.5 Mln WhC

1,034 PPPMs and 13,717 RVC

(2,079 MPPs) presented in

2014

54% natural gas savings

26% electricity savings

34.6 Mln WhC issued from 2005

to May 2015

tau from 1 to

4,58

82% WhC come from

MPPs

Source: FIRE.

169 companies with energy

manager and790 ESCO presented

projects in 2014

≈80% industrial projects Weighted average price on

GME spot market

30

43

57

70

83

97

110

20052006200720082009201020112012201320142015*

7.5 Mln WhC and 2.7 Mtoe assessed in

2014

Additionality

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Consumption baseline: ex-ante consumption, market average or mandatory standard

Ener

gy c

onsu

mpt

ion

ex-ante consumption

ex-post consumption

Counted savings in WhC scheme

Uncounted savings in WhC scheme

Time

Source: FIRE.

OnlyaddiRonalsavingsreceivewhitecerRficates.Ex-ante

consumpRonisacceptedasbaselineonlywhenit

correspondsorishigherthanmarketorregulatorybaselinesforthespecificproject.

The tau coefficient

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0"

50"

100"

150"

200"

250"

300"

350"

400"

1" 2" 3" 4" 5" 6" 7" 8" 9" 10" 11" 12" 13" 14" 15" 16" 17" 18" 19" 20"

How$the$tau$coefficient$works$Hipothesis:$annual$saving$100$toe,$tau=3,36$

WhC"with"tau"

WhC"no"tau"

"Fonte:"FIRE"

WhC lifespan

Technology lifespan

2% annual discount

Thetaucoefficientallows

complexprojectstoobtainmorecerRficates,butinthe

industrialsectoritisdifficulttoensurethataprojectconRnuestogeneratesavingsalloverits

lifespan.

Saving evaluation methods in Italian WhC

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Deemed savings projects (progetti standard): the saving is evaluated with respect to the number of installed reference units (e.g. square meter, kW, number of installed units). No measures are required. Only standardized solutions can be included in a deemed saving file. The proponent presents an RVC once.

Scaled savings - engineering estimates (progetti analitici): the saving is evaluated with respect to some measured quantities through a dedicated algorithm defined in a dedicated file. Required meters are also indicated in the dedicated file. The proponent presents an RVC at least once a year.

Metered saving (progetti a consuntivo): the method is similar to the previous one, but the algorithm, the baseline, the additional saving coefficient, and the needed meters should be preliminarily proposed by the applicant PPPM and approved from GSE (with ENEA-RSE). After the PPPM is accepted the proponent will get WhC by presenting an RVC at least once a year.

PPPM

D.S. file

E.E. file

RVC: Request to verify and certify the savings PPPM: Project proposal and M&V procedure

Monitoringplans2005-2007:

≈10%2014:82%

Surveyed savings: not used so far. Plans to diffuse them with new WhC guidelines.

Projects by evaluation methodology

15

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

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

Savingsrelatedtonewprojects(toe)

Totalsavings(toe

)

BreakdownofissuedWhCbysavingevalua?onmethodology

Deemedsavingsprojects Simplifiedmonitoringprojects MonitoringplanprojectsNewdeemedsavingsprojects Newsimplifiedmonitoringprojects Newmonitoringplanprojects

Source:FIREonGSEdata.Source:FIREonGSEdata.

Almost 80% of WhC comes from industrial savings. Around 80%

are assessed based on on-site measurements.

Almost 96% of the proposals in 2014 were

presented by ESCOs.

Breakdown of WhC issued in 2013

16

40%

33%

8%

7%

4%

2%2%

4%

BreakdownofWhCissuedin2014IND-THeatgenera5onand

recoveryforindustrialprocesses

IND-FFOtherindustrialenergy

efficiencysolu5ons

CIV-FCBuildingenvelope

CIV-THea5ng,aircondi5oning

andDHWproduc5onfor

agricoltureandcivilsector

IND-EDrivesystems(engines,

inverters,etc.),automa5onand

powerfactorcorrec5on

IND-GENElectricitygenera5on

andrecoveryforindustrial

processes

IPUB-RETLigh5ngforexis5ng

publicligh5ng

Other

Source:FIREonGSEdata.

Industrialprojectsin2014:≈80%

Italian WhC scheme main characteristics

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Targets from 200 ktoe in 2005 to 7,600 ktoe in 2016; Additionality based on market or regulatory baseline per single project or deemed saving file; ≈85% of savings are metered and ≈82% are monitoring plan projects (in 2007 ≈90% were deemed savings); ESCOs have been the main actor in presenting projects both in terms of proposals (96%) and of toe (70%, whereas 25% come from companies with energy manager); Flexible managing agencies needed to deal with the growing proposals (13,717 RVCs presented in 2014 and 1,034 PPPMs VS ≈150 in 2007 and ≈550 in 2012); All energy efficiency projects in all sectors are allowed; the scheme moved from civil sector projects to industrial ones; Controls are mainly documental, but on-site controls are rising; Cost effectiveness is high (0.017 euro/kWh according to ENEA).

Trend of certificates and savings

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-

5.000

10.000

15.000

20.000

25.000

30.000

35.000

-

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

2006 2007 2008 2009 2010 2011 2012 2013 2014

Cumulateddata

Annu

aldata

Trendofissuedcer3ficatesandofenergysavings(dataexpressedasthousands)

cumulatedcer?ficates cumulatedtoe cer?ficates toe

Source:FIREonGSEdata.

The introduction of the tau coefficient has increased the number of long lifespan projects, together with the cost of the scheme, but it has not ensured an increase in new annual savings.

News about the Italian scheme

Fonte: “RAEE 2012”, ENEA.

It works!

New guidelines to be introduced in order to improve the scheme (cost effectiveness, additionality/materiality, saving assessment, support to complex projects, etc.).

The most important lesson learnt is that such a scheme can not born perfect, but it needs continuos care and also some imperfections should be accepted during transitions.

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Some directions from MiSE for the new guidelines, to be issued in few months:

no more tau coefficient; new evaluation methodology (simplified monitoring plans with sample measurements) and surveyed savings; stricter evaluation of ex-ante consumption; new rules for responsibilities with ESCOs as proponents; pay-back t ime minimum requirements; increased controls.

Thank you!

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