Dr. Ralf Schüle Senior Consultant and Project Co-ordinator Wuppertal Institute - RG II:

1. Challenges and Solutions for Central and Eastern European CountriesAnalyses on the National Energy Efficiency Action Plans Dr. Ralf Schüle Senior Consultant and Project Co-ordinator Wuppertal Institute - RG II: Energy, Transport and Climate Policy IPM8 - 8th Inter-Parliamentary Meeting on Renewable Energy and Energy Efficiency Friday, 7th November 2008, Budapest, Parliament of Hungary

2. 1 2 3 4 Overview • Energy Efficiency Policy in the EU and the Role of the ESD • Framework Conditions for Energy Efficiency Policy in CEE • National Energy Efficiency Action Plans as Exercise and Indicator • Conclusions for CEE and for the Future Design of Energy Efficiency Policy IPM8, Budapest

3. 1 2 3 4 Overview • Energy Efficiency Policy in the EU and the Role of the ESD • FrameworkConditions for Energy Efficiency Policy in CEE • National Energy Efficiency Action Plans as Exercise and Indicator • Conclusions for CEE and for the Future Design of Energy Efficiency Policy IPM8, Budapest

4. Energy Efficiency Policy in the EU and the Role of the ESD Climate Policy • Energy and Climate Package 2008 and futher three strategies by 2020: • ETS and Kyoto-Targets • Energy Efficiency and CHP • Renewable Energies Target 1: 20% Reductions in GHG-Emissions vs. 1990 Effort Sharing Com. ETS-Directive CCS-Directive Target 2: 20% PE-Savings vs. BAU REN-Directive EE Action Plan Fuel Quality Directive Target 3: 20% of REN CHP-Directive Cars-Directive ESD-Directive EuP-Directive EPBD-Directive SET-Plan Energy Policy Technology Policy IPM8, Budapest

5. Energy Efficiency Policy in the EU and the Role of the ESD • Energy Efficiency and Energy Service Directive (ESD) requires MS • to adopt aim to achieve an overall national indicative reduction target in end-energy use of 9% by 2016 (... for the 9th year of application ...) • to submit three (National) Energy Efficiency Action Plans (NEEAPs): 2007, 2011, 2014 • Only a few formal requirements are given in the ESD: • Calculation of national indicative annual energy savings target adopted for 2016 (GWh) and national intermediate indicative annual energy savings target adopted for 2010 (GWh) • Displaying energy efficiency improvement programmes, energy services, and other measures planned for achieving the target • Measures and strategies complying with the provisions on the exemplary role of the public sector, and the provision of information and advice on end energy efficiency on end users. IPM8, Budapest

6. Energy Efficiency Policy in the EU and the Role of the ESD • Strenghs of the ESD ... • „framework directive“ in which regulations of other directives (EuP, EPBD), can be embedded • With the publication of NEEAPs, we currently have an illustrative and impressive collection of measures that enables international mutual learning among MS ... • (... despite high variation of level of information provided) • Forces MS to develop action plans and display strategies and to monitor effects of measures IPM8, Budapest

7. Energy Efficiency Policy in the EU and the Role of the ESD • ... and weaknesses • Additionality: • ESD does not mention that energy savings counting towards the 9 % target must be in addition to energy savings from autonomous changes • EU Action Plan for Energy Efficiency obviously expects strong contribution from ESD (and other recent Directives): „new policy“ leading to new and additional energy savings compared to autonomous changes and even previous policy • Early action/early savings: • ESD allows that effects of measures initiated in a previous year not earlier than 1995 can be taken into account in the calculation of the annual energy savings.“ (Annex I, ESD) • What is meant: • ‘Early measures’? (e.g., building code from 2005 and still in force in 2008 - 2016) or • Early energy savings‘? (e.g., from energy-efficient building constructed in 2005) IPM8, Budapest

8. 1 2 3 4 Overview • Energy Efficiency Policy in the EU and the Role of the ESD • Framework Conditions for Energy Efficiency Policy in CEE • National Energy Efficiency Action Plans as Exercise and Indicator • Conclusions for CEE and for the Future Design of Energy Efficiency Policy IPM8, Budapest

9. Final Energy Consumption in selected MS 1995-2005in Mio t OE Source: EUROSTAT IPM8, Budapest

10. Baseline Projections(in ktoe) Source: PRIMES (2006) IPM8, Budapest

11. Energy Intensity of Selected MS in 2005(kgoe per EUR 1 000 of GDP) Source: EUROSTAT McKinsey IPM8, Budapest

12. CO2-Emissions per Capita(kg per capita) Source: EUROSTAT Source: NEEAPs, ESD Potential Study IPM8, Budapest

13. ESD-Target and Economic Potentials IPM8, Budapest

14. 1 2 3 4 • Energy Efficiency Policy in the EU and the Role of the ESD • Framework Conditions for Energy Efficiency Policy in CEE • National Energy Efficiency Action Plans as Exercise and Indicator • Conclusions for CEE and for the Future Design of Energy Efficiency Policy IPM8, Budapest

15. National Energy Efficiency Action Plans in CEE • Plans reflect the significance (and the respective conditions) of energy efficiency policy in member states: • one group of countries has already gathered large experience with the development, implementation and evaluation of measures, • Another group predominantly aims at establishing basic institutional structure and supporting framework conditions IPM8, Budapest

16. National Energy Efficiency Action Plans in CEE • Different types of policy packages • 1. Packages for end-users of energy (private housholds, companies, state authorities ...) IPM8, Budapest

17. National Energy Efficiency Action Plans in CES and NMS • Different types of policy packages • 2. Packages for „supplier“ of services Advice and Consultancy e.g initial advice for buildings Information e.g. Inform. Campaigns, Labelling, Certificates, Auditing Regulation e.g. Energy Standards for Buildings and Appliances End-Users Institutional Measures e.g. energy agencies Funding and Financing Subsidies for building retrofitting, investments in ee technologies IPM8, Budapest

18. National Energy Efficiency Action Plans in CEE: Types of Measures • Information, Advice and Consultancy • In most NEEAPs, public information campaigns or activities targeting at the information of end-users are annouced. • Poland and Romania announces a large information campaign on rational energy consumption in the housing sector • EPBD: Audits and Building Certification (BUL, PL, ROM, LIT) in the housing sector • ESD: Smart Metering in collaboration with ESCOs (BUL) • EuP: Labelling of household appliances and lighting (CZ, HU, PL, ROM) • Innovative approach: • Ireland: Power of One campaign (broad array of comminication channels and sectors covered) • Austria: klima:aktiv Initiative (link to loan programmes) • Innovative approach: linking mandatory advice with funding (Germany) IPM8, Budapest

19. National Energy Efficiency Action Plans in CEE: Types of Measures • Regulation: • EuP: Standards of boilers and technical appliances (BUL, PL) • EPBD: Minimum requirements of old and new buldings (BUL, CZ, HU, PL) • Mandatory introduction of energy management in large energy users (HU, PL) • Guarantee of maximum and minimum indoor temperature in the residential sector (BUL) • Innovative approach: dynamisation of standards (for building regulations, top runner) IPM8, Budapest

20. National Energy Efficiency Action Plans in CEE: Types of Measures • Funding and Financing • Most of CEC have already implemented (or will implement) energy efficiency (credit) funds in the residential, industry, service sector: e.g. BUL, HU, POL, ROM) • Additional funding • through compensation funds: REECL credit line (BUL) • through EU Structural fond (HU/PHARE) • through GEF/UNDP energy efficiency programme (PL/Krakow), ROM • Innovative Measure: • Combination of funding with quality assurance and advice • Tax rebates for companies having committed to reduction targets (e.g. in a LTA) IPM8, Budapest

21. National Energy Efficiency Action Plans in CEE: Types of Measures • Education and Quality Assurance: • Only a few CEC and MNS mention education and quality assurance of „suppliers“ of services explicitly • Example: • Checking of boilers (CZ), • Information campaign on training and education (PL) • Training of municipalities (HU) • Innovative approach: Funding only when certified advisors and consultants have guaranteed the quality of the measure, e.g. the installation of a Solar Thermal Heater (City of Hamburg) IPM8, Budapest

22. National Energy Efficiency Action Plans in CEE: Types of Measures • Industry Networks and Voluntary Agreements: • Underrepresented in CEC and NMS • Examples: • EE consultation network (HU), • VA on Audits (HU), • System of voluntary undertaktings (PL) • White Certificate Scheme (Poland) • Innovative approach: Tax Rebates given in companies having joined the LTA (Finland), White Certificates Scheme • Market-based approaches and services: • Underrepresented in NEEAPs • Establishing regulatory framework for contracting, offering of contracting seminars (ROM) IPM8, Budapest

23. National Energy Efficiency Action Plans in CEE IPM8, Budapest

24. National Energy Efficiency Action Plans in CEE: Types of Measures • Industry Networks and Voluntary Agreements: • Underrepresented in CEC and NMS • Examples: • EE consultation network (HU), • VA on Audits (HU), • System of voluntary undertaktings (PL) • Innovative approach: • White Certificate Scheme (Poland) • Tax Rebates given in companies having joined the LTA (Finland), White Certificates Scheme • Market-based approaches and services: • Underrepresented in NEEAPs • Establishing regulatory framewok for contracting, offering of contracting seminars (ROM) IPM8, Budapest

25. National Energy Efficiency Action Plans in CEE: General Remarks on Sectors • Buildings/Residential Sector • Regulatory approach (according to EU Directives) • Focus on establishing a funding structure • Focus on multi-family houses • Social aspects (energy poverty)? • Industry and Service Sector • Focus on establishing a funding structure • Networks and voluntary agreement • Transport Sector • „weakest part in the chain“ • Transport sector not or not adequately addressed • Focus on improving the transport infrastructure • „soft measures“ (Information etc.) IPM8, Budapest

26. 1 2 3 4 • Energy Efficiency Policy in the EU and the Role of the ESD • Framework Conditions for Energy Efficiency Policy in CEC and NMS • National Energy Efficiency Action Plans as Exercise and Indicator • Conclusions for CEE and for the Future Design of Energy Efficiency Policy IPM8, Budapest

27. Conclusions • Main methodological problem in NEEAPs: Assessing the relationship between potentials, targets calculated and measures assessed ex ante or ex post Calculation of Energy Savings Targets ? Assessments of Effects of Measures by BU ond/or TD Methodologies Energy Savings Potentials in Sectors(national studies, sectoral studies, ESD Potential Study) IPM8, Budapest

28. Conclusions • From diversity to harmonisation • Harmonisation of evaluation methods (EMEEES) • MS need support from the EC and partners in other MS to establishish capacities • Harmonisation of NEEAPs (template) for 2011 • From plan to implementation • MS to implement/monitor and improve EEI measures displayed in the NEEAPs • Stakeholders and actors in MS can evaluate and control the state of implementation • Further measures are required to achieve energy savings beyond baseline • Savings achieved by natural development (e.g. NEEAP CZ) need to be excluded in NEEAPs II IPM8, Budapest

29. Conclusions • Overcoming obstacles: • Power relations in market creation • In which sense are stakeholders in energy (supply) sector „open“ for energy efficiency issues? • In what sense can structures, institutions and markets focusing on energy efficiency can be established? • Developing the Potentials • Innovative measures: • Dynamisation of standards • (e.g. front runner principle, combined with subsidies, progressive building standards for new and existing buildings etc.) • Introduce performance based standards and measures (measuring the „real“ savings) • Strengthen labelling and marketing approaches • Energy efficiency as part of the Energy Security Strategy in the EU and in MS. IPM8, Budapest

30. Vision • Ford T • prototype of innovation • Innovative was automatised mode of manufacturing its parts and the organisation of the production process • the key of the success: promise of unlimited mobility and the promise of the automobilisation of the world. • Efficiency 2020 • Equivalent vision for energy and resource efficiency is needed, NEEAPs are a first small step to develop such a vision throughout Europe. IPM8, Budapest

31. Thank you for your attention! Dr. Ralf Schüle Wuppertal Institute for Climate, Environment and Energy ++49/(0)202/2492-110ralf.schuele@wupperinst.org