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ITALY - Case Example

ITALY - Case Example. EE Policy measure : INFORMATION Category: EE CERTIFICATES GENT Meeting- April 2003. NEW POLICY FRAMEWORK-1. TWO TWIN MINISTERIAL DECREES ON ENERGY EFFICIENCY (24 April 2001) Mandatory quantitative energy savings targets at national level ( Primary energy )

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ITALY - Case Example

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  1. ITALY - Case Example EE Policy measure: INFORMATION Category: EE CERTIFICATES GENT Meeting- April 2003

  2. NEW POLICY FRAMEWORK-1 TWO TWIN MINISTERIAL DECREES ON ENERGY EFFICIENCY (24 April 2001) • Mandatory quantitative energy savings targets at national level (Primary energy) • Specific targets on each Electric Energy and Gas Distributor

  3. NEW POLICY FRAMEWORK-2 • Target annual compliance control by Regulatory Authority of Electricity and Gas (AEEG) - sanctions for non compliance • Energy Efficiency Certificates (EEC) certificates issued by AEEG to Distributors and Escos • Institution of an EEC market

  4. National targets • Mandatory quantitative energy savingstargets at national level(Primary energy) Year Targets [Mtoe/yr] Electricity Gas 2002 0,10 0,10 2003 0,50 0,40 2004 0,90 0,70 2005 1,20 1,00 2006 1,60 1,30 • At least 50% via a reduction of electricity and gas end-uses • Implementation: Authority for Electricity and Gas (AEEG)

  5. Distributors’ targets -1 • Specific targets on each Distributor • Threshold: >100.000 customers as at 31.12.2001 • Apportioned on the basis of the quantity of electricity/gas distributed to final customers compared to the national total, in the previous year • 50 % minimum via reduction of electricity and gas consumption • Specific regional targets can be added by Regional Administrations

  6. Distributors’ targets -2 • Annual compliance control by AEEG • Sanctions for non compliance (Proportional and in any case greater than investments needed to compensate the non-compliance)

  7. Energy Efficiency certificates (EEC) • Issued by AEEG (unit: tep) • To distributors and ESCOs • Ex-post and on annual basis after verification of energy savings achieved • Tradable via bilateral contracts or in the EEC market • Banking allowed over five years

  8. ELIGIBLE PROJECTS Targets have to be achieved via the implementation of energy savings projects • Only demand-side actions • Illustrative list of 14 classes of projects (with more than 35 sub-classes) • Maximum lifetime: 5 year • Supply-side project not eligible

  9. Actions in charge of Distributors -1 • Prepare an optimised plane for projects/programs implementation (according to Autority indications) taking into account costs/benefits evaluations • Choose third society for agreements (Escos, commercial apparata networks..)

  10. Actions in charge of Distributors -2 • Organise promotion actions towards clients (information, incentives, financing..) • Organise the collection of the required data for energy savings evaluation

  11. Actions in charge of Distributors -3 • Document the results and submit the documentation to the Regulatory Authority for Electricity and Gas for certification • Negotiate purchase or selling energy efficiency certificates in the new EEC market

  12. CASE DESCRIPTION -1 • Program sponsor: Energy Distributors/Escos • Dates: Start 2001 End 2006 • Market actors: End Users (Industrial, Residential, Commercial)

  13. CASE DESCRIPTION -2 • Technologies Targeted: see table • Policy measure employed: Information- EE certificates (+ subsequent other measures: incentives, financing...) • Status of documentation: ex-ante evaluation methods defined, balanced data not yet available

  14. EVALUATION METHODS -1 Three valuation approaches: • DEFAULT APPROACH (ex-ante energy savings evaluation - no on-field measurements) • ENGINEERING APPROACH (some on-field measurements required) • ENERGY MONITORING PLAN (subjected to pre-approval)

  15. EVALUATION METHODS -2 Consideration of: • free riders • delivery mechanism • persistence of savings

  16. BASELINES • SUBSTITUTIONS • NEW INSTALLATIONS

  17. BASELINES-Substitutions • Hypothesis: savings evaluated for the same given energetic service • substitutedTechnology • more diffusedTechnology • representative averageTechnology in use

  18. BASELINES-New installations Energy savings=  Energy Consumption between: • better existing technology /immediately lower technology(ex. Boilers 4 and 3 stars) • better existing technology / average technology on the market or more diffused technology(ex. Refrigerators, dish-washers..)

  19. Programs /ex-ante evaluation methods

  20. Programs /ex-ante evaluation methods

  21. Programs /ex-ante evaluation methods

  22. INDICATORS -1 • SPECIFIC GROSS PRIMARY ENERGY SAVINGS SGprE[tep/year /physical unit] • Gross Savings to be corrected in order to take into account: • natural trends of diffusion • impact of delivery mechanism different than installation • persistence of savings (proposed 95-100% with respect to the previous year) • life cycle of energy consuming apparata (generally non considered for long life apparata)

  23. INDICATORS -2 Gross savings to be corrected by at least two factors: • a)free riders • b)delivery mechanism (i = i th delivery method) [a and b to be defined after consultation] • Net Specific Primary Energy Savings (i th delivery method ) NSprE = SGprE (1 – a – bi)

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