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Intelligent Energy from Central Sweden. Recent Developments in Energy Efficiency EU Directives on Energy Efficiency and Renewable Energy at the EU Level. Randall Bowie DG Energy and Transport. Main Energy Priorities. Increasing energy efficiency
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Intelligent Energy from Central Sweden Recent Developments in Energy Efficiency EU Directives on Energy Efficiency and Renewable Energy at the EU Level Randall BowieDG Energy and Transport
Main Energy Priorities • Increasing energy efficiency • Achieving a properly functioning internal market for gas and electricity • Promoting renewable energy • Strengthening nuclear safety and security • Security of Europe’s energy supplies and further developing external energy policy relations • Improving the links between energy policies and environmental and research policies Mr. Andris Piebalgs Energy Commissioner
Energy Policy Legislation Supportprogrammes Information, Communication, Behaviour Policy Instruments No single measure but a coherent mix of measures is required
European Commission Plenary in Parliament Council of Ministers EP Committee Coreper Draft Directive Council Working Party EP Rapporteur Presidency Up to 3 Readings EP & Council must agree Act of Parliament & Council Codecision – Who’s involved
Energy consumption 2005 Preliminary gross energy consumption (1 750 Mtoe)by sector in 2005 (EU-25)
Obstacles: Why potential not realised In theory market will achieve the best result, but • Financial obstacles & lack of transparency for risks and costs /benefits • Atomised and fragmented market • Lack of functioning market for energy efficiency (few standardised goods/services) • No transparent and cost-reflective prices • Lack of information, education & training Regulatory failure
Directives Proposed by Com. Adopted by EP & Council Trans-position date Directives on Energy Labelling (8) 1992 → 1994→ Directives on Minimum Efficiency (3) 1992-2000 1997-2002 Directive on Electricity from Renewables 31.05.2000 27.09.2001 27.10.2003 Dir. on Energy Performance of Buildings 11.05.2001 16.12.2002 04.01.2006 Directive on Promotion of the Use of Biofuels 27.11.2001 08.05.2003 31.12.2004 Directive on Promotion of Cogeneration Based on Useful Heat Demand 22.07.2002 11.02.2004 21.02.2006 Directive on Eco-design for Energy-using Products 01.08.2003 06.07.2005 06.07.2007 RES & RUE Directives
Measure Green Lights Green Buildings Motor Challenge Voluntary Agreements on Products Voluntary Agreements on Production ISO 14001, EMAS, ECO-Labelling Energy Managers Energy Audits Energy Management Systems Integrated Control Systems Industry Initiatives
Directive proposals Proposed by Com. Adopted by EP & Council Trans-position date Directive on Energy end-use Efficiency and Energy Services 10.12.2003 5.04.2006 May 2008 Proposal for Directive on low energy & emission road transport vehicles 2006 Action Plan for Energy Efficiency 19.10.2006 RES & RUE – Recent
The content The Buildings Directive(2002/91/EC) 1. Common method to calculate the energy performance of buildings. Method to include all factors that impact on energy consumption and can be adapted to building types (homes, offices, schools, etc.) 2. Set minimum energy performance standards to new buildings and large existing buildings being refurbished. 3. Certification schemes for all buildings (new, sold, rented) 4. Display of certificates in public buildings 5. Inspection & assessment of boilers/heating and cooling installations
The content The Eco-design Directive (2005/32/EC) • The Directive aims to facilitate free movement of goods and to improve environmental performance of products throughout their life-cycle by integration of environmental aspects in product design • Selection of products: • Products with significant volume of sales, life-time impact & potential to change; • Balance between ecological requirements, technical /economic feasibility; • Health & safety + life-cycle costs will also be important
Current activities The Eco-design Directive (2005/32/EC) • Adopted by EP and Council on 7 July 2005 • Technical & economical studies to provide background info on 13 products (+ 1 horizontal): • Boilers, water heaters, computers, copiers/faxes/printers, televisions, battery chargers, office lighting, street lighting, air conditioning, electric motors, commercial fridges/freezers/ vending machines, domestic fridges & freezers, washing machines & dishwashers + study on standby equipment. • Tender contract signed in late 2005 • Studies recommend which improvement measures to be undertaken (voluntary agreements, directives etc)
Next steps The Eco-design Directive (2005/32/EC) • The Commission will develop a working plan with an indicative list of products by July 2007 • Interested parties will further be consulted in the context of a “Consultation Forum” • A Regulatory Committee to be consulted on the concrete eco-design requirement for each affected product • The draft implementing measure to be checked by WTO and EP before final adoption by Commission
The Energy Services Directive Article 1: Objective • To promote cost-effective energy efficiency in EU Member States through obligations and the removal of institutional, financial and legal barriers. • To promote the development of a sustainable market for energy efficiency and energy services.
The Energy Efficiency Directive Article 2: Scope • Covers all energy end-use suppliers (distributors and retailers of electricity, natural gas, LNG, LPG, district heating & cooling, heating oil, coal, lignite, peat, biomass, & transport fuels). • Aviation fuels & maritime bunkers excluded. Small companies < 75 GWh/yr. excl from Art. 6 and 13. • Covers all providers of energy efficiency improvement measures. • Covers all energy end-use sectors: - domestic, agricultural, public and tertiary sectors- non-energy intensive industries and transport • Emissions Trading sector excluded.
The Energy Efficiency Directive Article 4: The target Measured from 1.1.2008 until end of 2016. • 9-year 9 % target (1% cum annual savings). • Indicative but carefully monitored & reported. • Fixed amount of energy (TWh) calculated as 1% of 5-year average of unadjusted final cons. • Credit for some “early actions” <1995 (1991). • All measures must be verifiable and measurable or estimable. (Details Annexes I, II, III & IV.) • Commission to revisit White Certificates
The Energy Efficiency Directive Article 5: Public Sector Obligations The Public Sector in Member States shall: • publish energy efficiency guidelines as assessment criteria in tendering for public contracts; • select two mandatory measures from list in Annex V, req. energy-efficient public procurement, energy audits & energy performance contracting.
The Energy Efficiency Directive Article 6: Obligation on Energy Suppliers • Member States & suppliers to promote energy services & energy efficiency. • Obligation for energy distribution and/or retail energy sales companies: - to offer energy services, energy audits & energy efficiency measures or contribute to energy efficiency fund. • Energy companies to help remove market barriers, & not hinder market development.
The Energy Efficiency Directive • Article 13: Metering &Billing • Article 14: Reporting • Tariffs, Audits, Information Comitology
The Green Paper on security of supply (2000) • Energy dependency in EU-25 is 50% and will reach 70% by 2030 • EU does not have great room of manoeuvre on the supply side • Stakeholders recognised need to deal with demand side of energy policy
An ambitious goal of 20% cost effective reduction by 2020 compared with current consumption. Half of potential realised with existing legislation Technical potential increasing with innovation Green Paper debate. Stakeholders opinions and answers to 25 questions asked. The consultation process ended end of March 2006 Commission followed-up with Consultation Report Action Plan and Impact Assessment. The Green Paper on Energy Efficiency
Energy Efficiency Action Plan- 2006 • Objective: To present package of structured, timed & coherent initiatives to realise potential • Method: (a) by improving implementation of and compliance with existing legislation; • (b) by announcing amended and new initiatives • Scope: All end-use sectors, public sector & energy transformation sector (Green Paper EE) • Timeline: 1.2007 – 12.2012
Energy Efficiency Action Plan Six sections, 10, priorities, 75 measures • Dynamic energy performance requirements for products, buildings and energy services • Improving energy transformation • Moving on transport • Financing energy efficiency • Changing energy behaviour • International partnerships (globalisation)
Directive proposals and measures Proposed by Com. Adopted by EP & Council Trans-position date Strategic European Energy Review + package of renewables & supply measures Jan. 2007 Implementation of Action Plan for Energy Efficiency RES & RUE – FUTURE