Embed Size (px)
Citation preview
EEOS: from obligation to opportunity for growth Experience of the Italian multi-utility Hera S.p.A.
Energy Management Hera S.p.A., Bologna, Italy Sofia, June 12th 2018
1.
3.
4.
2.
Contents
HERA Group profile
Obligation Scheme on EE: the Italian way
HERA strategy and results
Conclusions
3
7
15
22
1. HERA Group profile
1 4
2 3 4
HERA Group:
Strong local roots
Aptitude for innovation
Indipendent Management
A business model that is unique in Italy
HERA was the first national
experiment in the combination
of council-owned companies
Balanced and constant growth in all areas of
activity (regulated or free-market) and
progressive incorporation of other companies.
1 5
2 3 4
Providing primary local services to citizens
A major Italian multi-utility
1st national
operator
3rd national op.
2nd national
operator
4th national
operator
7 millions of tons/y of waste treated
35,000 km of drinking water network
21,000 km of gas network
10 TWh/y of electricity sold
20,000,000 m3 served with district heating
REVENUES 2017: over 5,600 mln €
EBITDA 2017: 984 mln €
1 6
2 3 4
Strategy and Global Agenda
HERA creates shared value working
on Global Agenda Goals
Activities carried out by HERA cover 10 out
of 17 global goals of United Nations
Organization for Sustainable Development.
Smart energy use Efficient use of resources
Innovation
CIRCULAR ECONOMY
6 goals are involved in our Energy Efficiency strategy
2. Obligation Programme on Energy
Efficiency: the Italian way
1 2 3 4 8
• Industry, residential and transport sectors: energy savings are usually a consequence of
actions which would have however been made.
• Quite rarely energy efficiency is pursued alone, as main driver. Not enough for exploiting its
potential.
• Before 2005, ESCOs were rearely neutral. They were usually not able to detect best
efficiency solutions for the asset owner but tend to offer just one option (ie: CHP, heat
recovery...)
Energy efficiency: why not?
Between 2000 and 2004, the Italian Government introduced an incentivation scheme for
enhancing energy efficiency, based on obligation on Natural Gas and Electric Power Distribution
Operators, called ”White Certificate Programme”
1 2 3 4 9
The aim of the new obligation scheme was to start a new business field – energy efficiency .
For this purpose, an obligation to Distribution Operators was set involving incentives collected
through energy fees
Energy efficiency: Italian strategy
The Programme proved to be
effective and cheaper than other
mechanisms, so that in 2014 it was
selected as main instrument to
meet Italian targets on energy
efficiency (transposing of EU
Directive 27/2012)
1 073 1 133 1 142 1 182
443 280 279 351
662 727 695 726
1 660 1 660 1 527 1 527
918,70
620,94 512,50
778,93
113,27 105,83 114,83 191,4 0
500
1 000
1 500
2 000
2013 2014 2015 2016
euro
Rin. Onnicomprensiva Rinnovabili AsteCIP 6 Rinnoovabili Conto EnergiaDetrazioni Fiscali Certificati Bianchi
* CESEF 2017: Il mercato italiano dell’efficienza energetica
1 2 3 4 10
Wh. C.
The focus of the Obligation scheme are Electric Power and Natural Gas Distribution Operators.
They have to collect/buy White Certificates and give them to the Regulation Authority once a year.
White certificates are generated by energy efficiency improvements and are eventually bought by
EPDO/NGDO, thus financing energy efficiency.
White Certificates: how it works/1
Wh. C.
STEP 1: collecting White Certificates and deliver to the Regulation Authority
€
EPDO NGDO
Regulation Authority
Organized market,
companies, ESCo…
1 2 3 4 11
Refund [€]
Electric Power and Natural Gas Distribution Operators have regulated revenues/incomes, so
they need to be refund for the extra cost they have to buy Wh. C..
White Certificates: how it works/2
STEP 2: refund by the Regulation Authority
EPDO NGDO
Regulation Authority
1 2 3 4 12
White Certificates
Paperworks about the adopted improvement action
White Certificates: how it works/3
White Certificates are generated by submitting Energy Saving Actions (ESAs) to the Regulation Authority, who
eventually issues them.
ESCo, ISO 50001 Companies,
EPDO, NGDO…
Regulation Authority
ESA by energy consumer
STEP 0: generating White Certificates
Final energy consumer, Distribution Operators, ESCO, thanks to the flexibility of the mechanism, all of these
subjects can benefit from energy efficiency
1 2 3 4 13
Ways to submit for the White Certificate Scheme
In the initial stage of the obligation scheme, we had three ways for submitting ESAs to the White Certificate Scheme
COMPLEXITY
• no measurements at all for small savings, which are pre-determined (insulating glass, domestic water heaters, electric motors...)
STANDARD
• reduced measurements according to a pre-determined, simplified algorithm, for even big savings which are easily measurable (inverters on pumps and fans, district heating, chillers...)
ANALYTHIC
• the algorithm for the measurement of the savings achieved is proposed by the attendee itself and has to be validated by the Regulation Authority before WhC can be issued (two steps procedure). Widely used in the industrial sector because of the variety of technologies involved.
PPPM
3. HERA strategy and results
1 2 3 4 15
HERA’s strategy: obligation and opportunity
HERA needs to meet annual energy
savings targets
Being both an EPDO and a NGDO, HERA is
obliged under Italian White Certificates
Programme to meet annual energy savings.
Target can be satisfied:
purchasing WhC on dedicate market;
originating WhC directly.
Investment in human and economical resources to build internal skills (not just outsourcing)
Capitalization of historical experience in management of different internal assets.
Development of a set of energy services broadly applicable to industrial operators.
From OBLIGATION to OPPORTUNITY for growth
1 2 3 4 16
Internal Assets: ISO 50001 EMS
Energy management system certification has
been a priority: 7 companies within HERA Group
certified their EMS and progressive energy
savings target are set. This streghtens
origination of Whc through energy efficiency
initiatives in internal assets.
Industrial operators
Support to industrial operators in scouting and
development of energy efficiency projects (Vs
knowledge barrier).
Participative project development on a
no-fee basis and scouting of available
subsidies of financial support for investments.
HERA’s strategy: towards both directions
6,600 toe/y en.savings Hera S.p.A ( resp. 2013)
1 2 3 4 17
HERA’s strategy for EE in industry: a comprehensive approach
LOCAL SYNERGIES
CROSS COMPETENCES
TECHNOLOGY SPECIALISTS
PARTICIPATIVE PROJECT
DEVELOPMENT
FINANCIAL & PATRIMONIAL
SOLIDITY
Broad informative campaign in cooperation with
Industrial Associations: seminars, whorkshops.
Trust, knowledge barrier
Network of technological partners
capable of developing yet in the
scouting phase
customized/specialistic analysis
Technical added value
Technologically neutral approach,
strong wide experience of internal
EM Department in energy audits
and WhC processes.
Strong interlocutor
Involvment of industrial operators in
opportunities identification and
project development
Commitment, cooperation
Opportunity for investing in
guaranteed energy savings
Investment lever
reliability
1 2 3 4 18
HERA’s strategy: outputs and results
Reinforncement of results through certification standards
(e.g. ISO 14064)
Access to WhC incentives
Energy Performance Contracts
Implementation M&V schemes
Feasibility studies
Energy Audit
Energy Saving
initiatives are made
financially sounder
thanks to White
Certificates
HERA is however
obliged to collect WhC,
we can afford to analyse
ESAs no fee.
INDUSTRIES do not
take any cost until they
finally decide to act.
RESULTS:
n°160 energy savings projects
accessed WhC
450,000 toe saved in 2007-2017
IEA Report
”Energy Provider-Delivered Energy Efficiency”
1 2 3 4 19
Example: industrial heat pumps
Energy Audit
(EED 27/2012)
Identification of an
energy efficiency
improvement
opportunity
Access to incentives
(White Certificates)
The Company can
decide wether to
carry on the
action or not
Installation of heat pump to recover heat at low
temperature and serve medium temperature process
project carried out in a chemical-food industry
1 2 3 4 20
Refinery sect.
Example: industrial heat pumps
The project The Energy Audit showed the availability of
industrial heat lost in the cooling tower,
available throughout the year in great quantity
but to reduced temperature (3.500 mc /h and T
30-35°C).
The current heat pump technology allows this
waste heat to be used to produce hot water (up
to 90°C).
coo
ling
syst
em
storage pool
T≈32°C 3.500 mc/h
T≈29°C
T≈29°C
cooling tower
T≈60°C 20 mc/h
1 2 3 4 21
Example: industrial heat pumps
Thanks to the
incentive the DPP is
acceptable for the
Company
€(600 000)
€(400 000)
€(200 000)
€-
€200 000
€400 000
€600 000
€800 000
€1 000 000
€1 200 000
€1 400 000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
year
Discounted Payback Period
NO WhC
WhC [280€/WhC]
Capex (€) 495.628 Routine maintenance costs (€/y) 2.000
(year) 20 Extraordinary maintenance costs (€/y) 0
Expected Saving (€/y) 125.597 Discount rate (%) 8,0%
WhC (€/y) 338.830 Tax rate (%) 31,5%
Decrease in production (%) 0,3% Depreciation rate (%) 10%
DPP without WhC
DPP with WhC DPP with WhC
4. Conclusions
1 2 3 4 23
Final messages and lessons learned
Italian White Certificates Programme is based on incentives to final use conveyed by Distribution
Operators
• It has been so far the main driver for energy efficiency in the industrial sector, because of its
wide applicability
• It has been cheaper than other incentives for energy efficiency/renewable
HERA strategy aims at playing an active role in promoting energy efficiency, which is identified as
primary way to grow
Distribution Operators have lots to give for promoting energy efficiency:
• Territorial synergies for strong and historic local presence
• Well known industrial brand: reliability
• Cross-competences based on experience on their own assets
• Financial soundness
Thanks for your attention
Contacts information:
Fabio Roveda
Margherita Cumani
Dir. Business Development
Energy Management & Asset Upstream
HERA S.p.A.
www.gruppohera.it
