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www.fire-italia.org White certificates and other incentives - CHP Dario Di Santo, FIRE Bicocca University - EERM course 5 July 2013, Milano The rules and the market do change... If you don’t want to grope in the dark... You need FIRE!

White certificates and other incentives for energy efficiency and renewables and cogeneration

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Page 1: White certificates and other incentives for energy efficiency and renewables and cogeneration

www.fire-italia.org White certificates and other incentives - CHPDario Di Santo, FIRE

Bicocca University - EERM course 5 July 2013, Milano

The����������� ������������������  rules����������� ������������������  and����������� ������������������  the����������� ������������������  market����������� ������������������  do����������� ������������������  change...

If����������� ������������������  you����������� ������������������  don’t����������� ������������������  want����������� ������������������  to����������� ������������������  grope����������� ������������������  in����������� ������������������  the����������� ������������������  dark...

You����������� ������������������  need����������� ������������������  FIRE!

Page 2: White certificates and other incentives for energy efficiency and renewables and cogeneration

www.fire-italia.org

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

Besides the activities directed to its nearly 500 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

www.fire-italia.org

EGE certification Energy Management Experts

UNI CEI 11339

www.secem.eu Gestione Energia magazine

Page 3: White certificates and other incentives for energy efficiency and renewables and cogeneration

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FIRE activities and projects

3

www.hreii.eu/demo www.enforce-een.eu

www.ener-supply.eu

www.soltec-project.eu

www.esd-ca.eu

Among closed projects:- www.e-quem.enea.it - www.eu-greenlight.org- www.enerbuilding.eu- Eurocontract- ST-Esco

Besides to dedicated meetings, FIRE organises the Enermanagement conference, workshops, and training courses. It implements dissemination campaigns, surveys, market analysis and studies. Among the subjects with which FIRE has cooperated there are ENEA, GSE, RSE, large companies, universities, associations, agencies and trade fairs organizers.

Page 4: White certificates and other incentives for energy efficiency and renewables and cogeneration

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Introduction

4

Page 5: White certificates and other incentives for energy efficiency and renewables and cogeneration

Rapporto Annuale sull’Efficienza Energetica 2010

40

Figura 30: Consumo del settore servizi per fonte energetica, periodo 1990-2009

Figura 31: Consumo elettrico per addetto (1990=100) Fonte: elaborazione ENEA su dati MISE

0

5.000

10.000

15.000

20.000

25.000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

ktep

Energia elettricaLegna

Carbone

Olio combustibileGasolio

Gas

GPL

80

100

120

140

160

180

200

220

240

260

280

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Commercio Alberghi e ristoranti Credito e asssicurazioni Pubbica Amministrazione

Altri servizi cons elett/add terziario cons energ/add terziario

Rapporto Annuale sull’Efficienza Energetica 2010

19

efficienza è stato rispettivamente pari al 38,8% e al 17,9%; meccanica e minerali non metalliferi

hanno, invece, evidenziato le maggiori perdite di efficienza: 45,7% la prima e 22,5% il secondo (figura

10).

Significativi miglioramenti si osservano a partire dal 2005 anche per il tessile, mentre altre branche,

quali cemento e metalli non ferrosi, hanno registrato un peggioramento dell’efficienza energetica,

particolarmente pronunciato nel 2008 e 2009.

Figura 10: Efficienza energetica nel settore industria (1990=100) Fonte: elaborazione ENEA su dati MISE

Le tecnologie

Le tecnologie di interesse rilevante per il settore sono:

Motori elettrici e inverter

ENEA valuta che potrebbero essere introdotti ca 1.000.000/anno di motori ad alta efficienza di

potenza compresa nell’intervallo 5-90 kW, con un risparmio di ca 1,37 TWh/anno ed un risparmio

economico per gli utenti finali di ca 178 M€

8,

con un tempo di ritorno dell’investimento inferiore a

tre anni. Il risparmio potenziale proveniente dagli inverter è ancora maggiore, pari a circa 3,5

TWh/anno, corrispondenti ad un risparmio per gli utenti di ca 450 M€.

8

Con un costo medio del kWh di 0,13 €/kWh.

60

70

80

90

100

110

120

130

140

150

160

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

industria manifatturiera Siderurgia Metalli non ferrosi Meccanica

Agroalimentare Tessile Minerali non metalliferi cemento

Chimica Carta

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WhC and EED

Incentives

Conto termico

RES incentives

CHP

Some data about buildings and energy efficiencySources: RAEE 2011 ENEA, ENEA.

5

Impieghi finali di energia per settore 2011

134,9 Mtep

-2,6 % rispetto 2010

24,2%

31,5%

34,4%

2,2% 5,1% 2,5% Industria

Trasporti

Usi civili

Agricoltura

Usi non energetici

Bunkeraggi

Rispetto al 2007 i due piani di intervento comporterebbero una riduzione di consumo complessivo di circa 6 e 17 Mtep, rispettivamente per lo scenario BAU e BAT, pari nell’ordine al 4,5% e 12,8% del consumo iniziale. Se si prende a riferimento la cosiddetta previsione “Primes 2007 Baseline”[1], che assegna all’Italia un consumo tendenziale di 162,6 Mtep al 2020, il calo di consumo è del 22,4% nello scenario BAU e del 29,1% per lo scenario BAT.

18,20%

11,90% 14,20%

16,90% 17,00%

11,10%

6,80% 3,90%

Distribuzione del Parco edilizio residenziale in Italia (rif. 2010) Fonte ENEA- CRESME

Stock edifici per anno di costruzione

Prima del 1919

dal 1920 al 1945

dal 1946 al 1961

dal 1962 al 1971

dal 1972 al 1981

dal 1982 al 1991

dal 1992 al 2001

dal 2002 al 2008

25%

20%

15%

10%

5%

0%

20,1%

9,1% 11,1% 12,2% 10,8%

Edifici costruiti prima della Legge 373/76

Edifici costruiti dopo della Legge 373/76

Edifici a priorità di intervento

0

5

10

15

20

25

30

ante 1920 1920/1945 1946/1971 1972/1991 1992/oggi

Incidenza percentuale per fasce di costruzioneNORDCENTROSUD+ISOLE

Some data about Italy:Residential buildings: 12 MillionsOffices: 65.000Schools: 52.000Hotels: 6.000Around 65% was built before 1980...

Different attention to energy efficiency in different industrial sector.

Continuos growth of energy consumption in the tertiary sector with scarce energy efficiency

Page 6: White certificates and other incentives for energy efficiency and renewables and cogeneration

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WhC and EED

Incentives

Conto termico

RES incentives

CHP

Energy efficiency is the best solution to reduce energy and environmental risks and achieve a sustainable development.

Why energy efficiency?

Energy efficiency:reduces or keep under control energy dependency and energy security;reduces environmental pollution;avoids the construction of new power plants and transport network;helps creating new working places and facilitates the European energy industry (in particular the Italian one);allows to save money;contributes to a sound environmental and social report;promotes a sustainable development.

Page 7: White certificates and other incentives for energy efficiency and renewables and cogeneration

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WhC and EED

Incentives

Conto termico

RES incentives

CHP

Energy efficiency in three steps

Energy efficiency

No waste of energy

Improved technologies

Renewable and localized energy

sources

Low costBehavioural change

Limited effect per client

Can be costlyNo core business

Effect per client varies

Usually costlyNPV of produced energy?

Limited specific power

Page 8: White certificates and other incentives for energy efficiency and renewables and cogeneration

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WhC and EED

Incentives

Conto termico

RES incentives

CHP

A multiplicity of solutions with different sizes and type

Page 9: White certificates and other incentives for energy efficiency and renewables and cogeneration

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WhC and EED

Incentives

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RES incentives

CHP

Energy efficiency within a formula

cash flow => ex ante energy bill - ex post energy bill

Lack of M&V and KPI

Linked to building uses and

weather

Linked to building uses and weather

Linked to project and design

Linked to management

The direct connection between the cash flows related to energy saving and end-use makes it difficult to assess and manage the risks. Some points:

metering and good design and management (technical part and skills); distribution of risks on numerous projects (financial part); smart regulations and guarantee fund (policy).

Page 10: White certificates and other incentives for energy efficiency and renewables and cogeneration

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WhC and EED

Incentives

Conto termico

RES incentives

CHP

Financing: a question of size

Small: credit through bank agencies, no project financing; need for a diffused commercial and technical structure; request for turnkey and full service solutions.

Medium: agency or corporate banking; more ordinary commercial and technical structure; request mainly for turnkey and full service solutions.

Large: corporate o project financing; need for a structure capable to manage large projects; customized solutions.

Good opportunities for innovative business models, such as cooperatives, crowdfunding, investment funds, European Investment Bank programs, clustering of small operators and management of diffused partners.

Page 11: White certificates and other incentives for energy efficiency and renewables and cogeneration

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WhC and EED

Incentives

Conto termico

RES incentives

CHP

Different solutions and approaches for different users

Energy efficiency project

Energy intensive industry

Non energy intensive industry

Tertiary

Public administration

Residential

Page 12: White certificates and other incentives for energy efficiency and renewables and cogeneration

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Incentives

Conto termico

RES incentives

CHP

Cost effective solutions

Source: UE energy efficiency plan 2011.

12

EN 11 EN

F igure 2. Overall cost-curve for energy efficiency options of end-use sectors in the E U27 in 2020. Energy savings are expressed in final energy units. Energy savings (X -axis) are relative to the baseline (source: E C F study based on F raunhofer et al., 2009).

Energy sector also offers possibilities for energy efficiency improvements in the processes of energy transformation and also for increased utilization of recoverable energy. In addition, as energy utilities are the closest to the final energy consumers and have information on the energy use of their clients, they could be used as an interlocutor to realize energy savings potential in the demand side.

Increasing transformation efficiency can be achieved by using technologies that better transform primary energy into final useful energy. 58% of EU-27 electricity is produced in conventional thermal power plants. Around half of this electricity comes from coal-fired power plants and the rest is mainly produced based on gas combu������������������ ��������plants operate at 36-38% of thermal efficiency while the best available technologies (BAT) deliver an average efficiency of 46%. Gas-fired plants operate at an average of 47% efficiency, while BAT are on average 59%.

Another way to increase the efficiency of electricity generation is to use the heat that is generated by using it in co/tri-generation and district heating/cooling. Cogeneration can achieve 80�90% efficiency, if all savings, including the avoided network losses are calculated. The existing economic potential is largely underused and the less than optimal utilization of combined heat and power will grow even more pronounced in the future.

As regards heat production, the overall thermal energy production efficiency of the EU is around 40%. Reference technologies in heat-only-boilers provide a range of operational efficiencies from 70% in the case of biogas to 90% for natural gas, while best available technologies can deliver even higher performances.

District heating and cooling (DHC) is particularly well placed to use the residual heat produced in industrial sources. DHC, especially in combination with cogeneration, could

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Incentives

Conto termico

RES incentives

CHP

Source: European Commission.

13

Energy efficiency directiveMEETING ALL THREE “20-20-20 BY 2020” GOALS BECOMES A MATTER OF URGENCY

Reduce greenhouse

gas levels by 20%

Increase share of

renewables to 20%

100%

Reduce energy

consumption by 20%

-10%Current

trend to

2020

-20%

20%

Current

trend to

2020

Current

trend to

2020

1678 Mtoe

-20% objective

Status today

1842 Mtoebusiness

as usual

2020

Projections from 2007Projections from 200920% Energy saving objective

1474 Mtoe

* Gross inland consumption minus non-energy uses

Prim

ary

ener

gy c

onsu

mpt

ion*

, Mto

e

1400

1450

1500

1550

1600

1650

1700

1750

1800

1850

1900

2005 2010 2015

SO FAR THE EU IS NOT ON TRACK TO MEET ITS 20% ENERGY SAVING TARGET BY 2020

GAP

The Commission in 2011 proposed a new directive on energy efficiency to cope with the negative trend manifested at European level.

Page 14: White certificates and other incentives for energy efficiency and renewables and cogeneration

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Incentives

Conto termico

RES incentives

CHP

14

PUBLIC SECTOR TO LEAD BY EXAMPLE

• Annual renovation target of 3% for public buildings above 250 m²

• Purchase of products, services & buildings with high energy efficiency performance

• Local energy efficiency plansand introduction of energy management systems

Status

• Share of public buildings in building stock

EED proposals

• More systematic use of Energy Performance Contracting

• Public sector consumption makes important share of EU’s GDP

19%

12%

• Low average energy performance of existing buildings stock, incl. public buildings

• Cost optimal renovation can bring up to 60% energy savings

PUBLIC SECTOR TO LEAD BY EXAMPLE

• Annual renovation target of 3% for public buildings above 250 m²

• Purchase of products, services & buildings with high energy efficiency performance

• Local energy efficiency plansand introduction of energy management systems

Status

• Share of public buildings in building stock

EED proposals

• More systematic use of Energy Performance Contracting

• Public sector consumption makes important share of EU’s GDP

19%

12%

• Low average energy performance of existing buildings stock, incl. public buildings

• Cost optimal renovation can bring up to 60% energy savings

Energy efficiency directive

Source: European Commission.

Page 15: White certificates and other incentives for energy efficiency and renewables and cogeneration

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WhC and EED

Incentives

Conto termico

RES incentives

CHP

15

CREATING BENEFITS FOR CONSUMERS THROUGH THE PROVISION OF TAILORED ENERGY SERVICES AND INFORMATION

Status

• Considerable saving potential unused in the residential and services sectors

EED proposals

• Ensure accuracy & frequency of billing based on actual consumption

• Obligation for individual energy meters, reflecting actual energy consumption & information on actual time of use

• Appropriate information with the bill providing comprehensive account of current energy costs

• Lack of awareness &access to appropriate information on EE benefits

• Technological developments (e.g. smart meters/ grids) not sufficiently reflecting households interests

• National energy efficiency obligation scheme for utilities

• Slow uptake of market for energy efficiency services

CREATING BENEFITS FOR CONSUMERS THROUGH THE PROVISION OF TAILORED ENERGY SERVICES AND INFORMATION

Status

• Considerable saving potential unused in the residential and services sectors

EED proposals

• Ensure accuracy & frequency of billing based on actual consumption

• Obligation for individual energy meters, reflecting actual energy consumption & information on actual time of use

• Appropriate information with the bill providing comprehensive account of current energy costs

• Lack of awareness &access to appropriate information on EE benefits

• Technological developments (e.g. smart meters/ grids) not sufficiently reflecting households interests

• National energy efficiency obligation scheme for utilities

• Slow uptake of market for energy efficiency services

Energy efficiency directive

Source: European Commission.

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Incentives

Conto termico

RES incentives

CHP

16

Achieved savings

Remaining potential

IMPROVING ENERGY EFFICIENCY IN TRANSFORMATION AND DISTRIBUTION OF ENERGY

Status

• New generation installations not systematically reflecting level of Best Available Technologies

• National annual inventories of generation installations to monitor efficiency levels

• Network tariffs design to encourage offering services for consumersallowing them to save energy & control consumption

• 10-year national heat & cooling plans: transparency, predictability & alignment of policies for investments

• Fragmented regulations & incentives to address waste across supply chain

• CHP uses 30% less fuel for the same amount of heat & power but level of use in EU low: 11% vs. 21%.

• Waste heat recovery (CHP) obligation for new and existing power & industrial plants

EED proposals

Achieved savings

Remaining potential

IMPROVING ENERGY EFFICIENCY IN TRANSFORMATION AND DISTRIBUTION OF ENERGY

Status

• New generation installations not systematically reflecting level of Best Available Technologies

• National annual inventories of generation installations to monitor efficiency levels

• Network tariffs design to encourage offering services for consumersallowing them to save energy & control consumption

• 10-year national heat & cooling plans: transparency, predictability & alignment of policies for investments

• Fragmented regulations & incentives to address waste across supply chain

• CHP uses 30% less fuel for the same amount of heat & power but level of use in EU low: 11% vs. 21%.

• Waste heat recovery (CHP) obligation for new and existing power & industrial plants

EED proposals

Energy efficiency directive

Source: European Commission.

Page 17: White certificates and other incentives for energy efficiency and renewables and cogeneration

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RES incentives

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17

Efficienza e 2020 inEnergy efficiency directive

• Mandatory audits for large companies & incentives for the implementation of recommended measures and the introduction of Energy Management Systems

INCREASE AWARENESS FOR BENEFITS STEMMING FROM ENERGY EFFICIENCY IMPROVEMENTS IN INDUSTRY

Status EED proposals

• Member States to create incentives for SMEs to undergo energy audits

28%• Important share in

overall final energy consumption

• Considerable progress made but potential remaining

Achieved savings

Remaining potential

• Energy efficient technologies and EE best practices readily available

• Dissemination of best practices on benefits of energy management systems for SME businesses

• Mandatory audits for large companies & incentives for the implementation of recommended measures and the introduction of Energy Management Systems

INCREASE AWARENESS FOR BENEFITS STEMMING FROM ENERGY EFFICIENCY IMPROVEMENTS IN INDUSTRY

Status EED proposals

• Member States to create incentives for SMEs to undergo energy audits

28%• Important share in

overall final energy consumption

• Considerable progress made but potential remaining

Achieved savings

Remaining potential

• Energy efficient technologies and EE best practices readily available

• Dissemination of best practices on benefits of energy management systems for SME businesses

Source: European Commission.

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18

Energy efficiency 2012/27/EU directive

Art. 71. Each Member State shall setup an energy efficiency obligation scheme. That scheme shall ensure that energy distributors and/or retail energy sales companies that are designated as obligated parties under paragraph 4 operating in each Member State’s territory achieve a cumulative end-use energy savings target by 31 December 2020, without prejudice to paragraph.

2. That target shall be at least equivalent to achieving new savings each year from 1 January 2014 to 31 December 2020 of 1,5 % of the annual energy sales to final customers of all energy distributors or all retail energy sales companies by volume, averaged over the most recent three-year period prior to 1 January 2013. The sales of energy, by volume, used in transport may be partially or fully excluded from this calculation.

9. As an alternative to setting up an energy efficiency obligation scheme under paragraph 1, Member States may opt to take other policy measures to achieve energy savings among final customers, provided those policy measures meet the criteria set out in paragraphs 10 and 11. The annual amount of new energy savings achieved through this approach shall be equivalent to the amount of new energy savings required by paragraphs 1, 2 and 3. Provided that equivalence is maintained, Member States may combine obligation schemes with alternative policy measures, including national energy efficiency programmes.

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19

Energy distributed in Italy

4

Articolo 1 Definizioni

1.1 Ai fini della presente deliberazione si applicano le definizioni di cui ai decreti

ministeriali 20 luglio 2004 come modificati ed integrati dal decreto ministeriale 21 dicembre 2007, le definizioni di cui alla deliberazione 28 dicembre 2007, n. 344/07 e, inoltre, la seguente: x� distributori obbligati nell’anno 2012 sono i distributori di energia elettrica o

di gas naturale che avevano almeno 50.000 clienti finali connessi alla propria rete di distribuzione alla data del 31 dicembre 2010.

Articolo 2

Comunicazione delle quantità di energia elettrica e di gas naturale complessivamente distribuite sul territorio nazionale nell’anno 2010 dai distributori obbligati nell’anno

2012 2.1 La quantità di energia elettrica complessivamente distribuita sul territorio

nazionale nell’anno 2010 dai distributori di energia elettrica di cui all’articolo 1, comma 1, è pari a 238.339 GWh.

2.2 La quantità di gas naturale complessivamente distribuita sul territorio nazionale nell’anno 2010 dai distributori di gas naturale di cui all’articolo 1, comma 1, è pari a 1.229.579.791 GJ.

Articolo 3

Obiettivi specifici di risparmio di energia primaria a carico dei distributori obbligati nell’anno 2012

3.1 Gli obiettivi specifici di risparmio di energia primaria a carico dei distributori di

energia elettrica di cui all’articolo 1, comma 1, arrotondati all’unità con criterio commerciale, sono determinati nella Tabella A allegata al presente provvedimento.

3.2 Gli obiettivi specifici di risparmio di energia primaria a carico dei distributori di gas naturale di cui all’articolo 1, comma 1, arrotondati all’unità con criterio commerciale, sono determinati nella Tabella B, allegata al presente provvedimento.

Articolo 4

Disposizioni finali 4.1 Il presente provvedimento è pubblicato sul sito internet dell’Autorità

www.autorita.energia.it.

22 dicembre 2011 IL PRESIDENTE: Guido Bortoni

Source: EEN 13/2011 AEEG decision.

It means around 45 Mtoe + 30 Mtoe = 75 Mtoe of energy distributed. Considering other sources it rises to 80-90 Mtoe.

A saving of 1,5% equals to 1,1-1,3 Mtoe/year that cumulated on 7 years means 7,7-9,5 Mtoe of savings. Of course the targets in the energy efficiency obligation scheme can be lower if

Savings due to actions started from 2008 can be accounted for provided their effects are measurable and still present in 2020.

Page 20: White certificates and other incentives for energy efficiency and renewables and cogeneration

!"!!!!

!5.000!!

!10.000!!

!15.000!!

!20.000!!

!25.000!!

2005! 2006! 2007! 2008! 2009! 2010! 2011! 2012! 2013! 2014! 2015! 2016! 2017! 2018! 2019! 2020!

Na#onal'energy'efficiency'targets'and'WhC'targets'

Na0onal!targets! WhC!targets!

Fonte:!elaborazioni!FIRE!

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WhC and EED

Incentives

Conto termico

RES incentives

CHP

WhC and 20-20-20 Programme

WhC play an important role within the Italian 2020 target strategy.

Italian 2010 RES Plan target in 2020

2006/32/EC directive EE target in 2016Mto

e

Yearly increment in the range 0,4-1,6 Mtoe

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Incentives

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RES incentives

CHP

WhC: different approaches from different countries! UK (CERT and CESP) Italy France Denmark Flanders region (Belgium)

Obligation period

2002-2005 (EEC-1)2005-2008 (EEC-2)2008-2012 (CERT)2009-2012 (CESP)

2005-2012 2006-2009 (first period)2011-2013 (second period)

2006-2009 (first period)2010-2012 (second period) 2003 –

Target size (ongoing phase)

293 MtCO2 lifetime savings in 2012 (CERT)19.25 MtCO2 lifetime savings in 2012 (CESP)

Cumulative savings of at least 22.4 Mtoe in 2012

345 TWh lifetime discounted (over the period January 2011- Dec. 2013)

2.95 PJ annual (first year savings) until 2009As of 2010: 6.1 PJ/y (first year savings weighted with prioritisation factors reflecting action lifespan)

Approx. 580 GWh (2009 target)3.5% of the amount of electricity supplied the year before to household and non-residential clients (2.5% in case of less than 2,500 clients).

Energy end-use sectors covered Residential All All excl. ETS All except transport Residential and non energy intensive industry and service

Restrictions in achieving the target

40% priority group and 15% super priority group. 25% insulation measures (CERT)Low income areas; max 4% by loft insulations; max 4% by cavity wall insulations; max 1% by energy advice

Until 2008 50% on own energy source

25 TWh cumac max achievable by information, formation and innovation programmes

None specificThe actions must always consist of financial contribution and an awareness-raising element

Measurement and verification options Standard values

Standard values (19 measures)Engineering approach (5 measures)Metered baseline method

Standard values (about 240 measures)Case-by-case approval for other measures

Standard values for approx. 200 measures Specific engineering calculation

Case-by-case approval by VEA

Dominant measurement and verification choice Deemed savings only Deemed savings Deemed savings Specific engineering calculations NA

Accreditation of savings Ex-ante Ex-ante (majority) Ex-ante Ex-ante (adjusted first year savings only) Ex-ante approval

Size of certificate NA 1 toe 1 kWh cumac NA NA

Validity of certificate NA (compliance in 2012) The entire phase of the scheme (2005-2012)

3 compliance periods(compliance in 2009 and 2013)

NA (only adjusted first year savings count) NA

Certification threshold size NA

20 toe/year, 40 toe/year and 60 toe/year for savings evaluated respectively by deemed, engineering and metered baseline methods

1 GWh cumac (projects can be pooled to reach the threshold)

NA NA

Trading* mechanisms Trading among suppliers Spot marketOTC (dominant) OTC only No trading No trading

Banking, borrowing

Banking of excess savings between phases (EEC-1 to EEC-2, EEC-2 to CERT)

Banking till 2012Borrowing for 1 year if under compliance below 40%

Banking three compliance periods

Banking till 2012As of 2010 borrowing if under compliance below 35% (45% in 2010)

Banking of excess savings

Figure 1. Summary of WhC schemes in Europe. Source: European Commission Directorate General JRC

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22

AEEG asks for WhC

Energy savings

End-user

GME

AEEG

WhC obliteration

DSO

Authorises WhC emission

Tranfers WhC

1st step obtaining WhC

2nd step: target compliance

Obliged parties: DSOs with more than 50.000 clients.

DSO

Italian white certificates scheme (obliged parties)WhC flows

cash flows

relations between parties

project implementation agreement

ENEA

WhC project evaluation

Source: FIRE.

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23

AEEG asks for WhC

Energy savings

End-user

GME

AEEG

WhC obliteration

Distributor

Authorises WhC emission

Tranfers WhC

1st step obtaining WhC

2nd step: target complaiance

Voluntary parties: companies connected with obliged DSOs, small distributors, SSE and ESCOs, large consumers with appointed energy manager

Voluntary player

Voluntary company

GME market

WhC trading

Direct contracting (OTC)

Italian white certificates scheme (voluntary parties)WhC flows

cash flows

relations between parties

project implementation agreement

ENEA

WhC project evaluation

Source: FIRE.

Page 24: White certificates and other incentives for energy efficiency and renewables and cogeneration

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24

WhC for dummies

DSOs with more than 50.000 clientsObliged parties (SO)

DSOs with less than 50.000 clients Companies linked to or controlled from SOEnergy service providers SSECompanies with appointed energy manager

Voluntary parties (SV)

1 WhC (also called TEE) = 1 additional toeWhC energy equivalent

5 years8 years for building envelope related actions10 years for high efficiency cogeneration

Duration of WhC issuing

Depends on the market (95-115 €/toe recently)WhC economic equivalent

Modalità standardizzata - deemed savingsModalità analitica - engineering estimatesModalità a consuntivo - monitoring plans

Saving evaluation

Energy efficiency improvements and savingsAllowed actions

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25

Type I - electricity savingsType II - gas savingsType III - other fuels savings (no transport)Type IV - other fuels savings transport D.S.Type V - other fuels savings transport E.E. & M.P.

Types of certificates

Both till 2012, to be extendedDuration and validity of WhC

WhC for dummies

Primary energy efficiency improvements Targets

It depends on a standard fuel mix price trend. Till now the range has been: 86.98-100 €/toe.DSO tariff reimbursment

It is the the ratio between the useful life of the measure and the standard WhC project life (5 or 8 years). It ranges between 1,00 and 4,58. It depends on the technology group as collected in the ministerial decrees tables.

Coefficient tau

WhC are released quarterly for deemed savings.After the measure are collected for the other projects (the timetable can be freely chosen, provided it is at least annually.

WhC release timetable

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WhC for dummies

Fonte figura: ENEL.

Gas Electricity

Source: AEEG. Source: AEEG.

53% of the total target is ENEL’s.

Page 27: White certificates and other incentives for energy efficiency and renewables and cogeneration

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18

Additional savings concept

Consumption baseline: market average or mandatory standard

Ener

gy c

onsu

mpt

ion

ex-ante consumption

ex-post consumption

Counted saving for WhC

Saving not counted for WhC

Time

Page 28: White certificates and other incentives for energy efficiency and renewables and cogeneration

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"

www.fire-italia.org

WhC and EED

Incentives

Conto termico

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Tau coefficient

WhC lifespan

Technology lifespan

Page 29: White certificates and other incentives for energy efficiency and renewables and cogeneration

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Incentives

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Minimum thresholds required to present a project

Possibility to join different actions in one project

Number of involved clients Homogenous methodsHomogenous methodsHomogenous methods Non homogenous

methods

Single client Deemed savings

Engineering estimates

Monitoring plans Monitoring plans

Many clients Deemed savings

Engineering estimates

Monitoring plans Not allowed

Minimum thresholds and allowed synergies

Project evaluation method Global savings (with tau)

Deemed savings 20 toeEngineering estimates 40 toe

Monitoring plans 60 toe

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Saving evaluation methods

• Deemed savings: 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.

• Engineering estimates: the saving is evaluated with respect to some measured quantities through a dedicated algorithm defined in the considered file. Required meters are also indicated in the considered file.

• Monitoring plan: 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 and approved from ENEA.

Saving evaluation method

Deemed savings

Engineering estimates

Monitoring plan

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31

Time chart

Action Implementation

RVC presentation RVC

approved by GSE WhC

Release WhC transaction WhC

obliteration

PPPM presentation PPPM

approved by GSE

Within 180 days

Within 60 days

No time limitations

Within May 31st of

the year after the

targeted one

Within 60 days (silence

procedure)

Page 32: White certificates and other incentives for energy efficiency and renewables and cogeneration

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32

Deemed savings files

Page 33: White certificates and other incentives for energy efficiency and renewables and cogeneration

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33

D.S. files for industry, tau coefficients and M.P. results

!

min max min max max minTauFile

number Technology Unit Unit per toe Saving (10-3

toe/unit/year)Units needed to

reach 20 toe

Industrial deemed savings files

9 VSD electric engines for industrial pumping systems1 turn industry 1 kW 12 42 24 83 314 91 2,65

2 turns industry 1 kW 6 20 49 166 153 45 2,653 turns industry 1 kW 3 11 95 319 80 24 2,65

seasonal industry 1 kW 11 38 27 90 284 84 2,6511 high efficiency electric engines

1 turn industry 1 kW 37 294 3 27 2.220 283 2,652 turns industry 1 kW 19 149 7 53 1.126 142 2,653 turns industry 1 kW 10 77 13 102 581 74 2,65

seasonal industry 1 kW 35 270 4 29 2.040 262 2,65

Figure 1. Industrial deemed savings files summary.

Monitoring plan: more interesting (potential savings and tau value), but more difficult to obtain (more complex and longer procedure) than deemed savings and engineering estimates.

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Market trends and monitoring plans

Savings breakdown for type of evaluating procedure

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The analysis about monitoring plans

BackgroundConsidering new projects, monitoring plans are overcoming standard and engineering estimates projects with respect to the amount of generated savings. No deep investigation was carried out and a few data were available on them.

The aim of the analysisENEA commissioned a study to FIRE to:

investigate monitoring plans and extract information on the results of seven years of presented projects;

identify trend lines for the energy efficiency technologies used and assess the market penetration;

verify if the real savings (RVC) matched the forecasts (PPPM); identify the role of the proponents, the difficulties they encountered and

the most common errors in the presentation of proposals.

Page 36: White certificates and other incentives for energy efficiency and renewables and cogeneration

14#

33#

47#

0#

5#

10#

15#

20#

25#

30#

35#

40#

45#

50#

2005)2010# 2011# 2012#(incomplete)#

Monthly#average#PPPM#proposals#

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WhC and EED

Incentives

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PPPM presentation trend

Both the effect of the tau coefficient and of the learning curve about PPPM presenting linked to FIRE-ENEA training courses can be seen.

Source: FIRE on AEEG data.

Page 37: White certificates and other incentives for energy efficiency and renewables and cogeneration

51%$

43%$6%$

0,1%$0,5%$

Accepted$PPPM$

Passed$at$the$first$a7empt$

a9er$1$revision$

a9er$2$revisions$

a9er$3$revisions$

a9er$4$revisions$www.fire-italia.org

WhC and EED

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PPPM are not that easy to present

Detailed analysis focused on the 600 PPPM that have been approved.About half of the approved proposals has required at least a request for integration. Especially in the first years some proposals required 3 or 4 revisions (recently ENEA decided to allow no more than one request of integration.Less than 10% of the proposals were rejected.

Source: FIRE commissioned by ENEA.

Page 38: White certificates and other incentives for energy efficiency and renewables and cogeneration

1%#5%# 7%#

87%#

Presented#PPPM#

Electric#DSO#(DE)#

Gas#DSO#(DG)#

Energy#manager#(EM)#

Energy#service#provider#(ESP)#

2%#

30%#68%#

Requested#WhC##

Electric(DSO((DE)(

Gas(DSO((DG)(

Energy(manager((EM)(

Energy(service(provider((ESP)(

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WhC and EED

Incentives

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PPPM and monitoring plans’ WhC divided by proponent

Source: FIRE commissioned by ENEA.

Source: FIRE commissioned by ENEA.

Page 39: White certificates and other incentives for energy efficiency and renewables and cogeneration

30%$

41%$

29%$

WhC$energy$saving$breakdown$

WhC$electricity$$

WhC$natural$gas$

WhC$other$fuels$

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WhC breakdown

A strong role of thermal energy consumption emerges in the industrial sector, in opposition to the saving electricity leadership for standard projects.

Source: FIRE commissioned by ENEA.

Page 40: White certificates and other incentives for energy efficiency and renewables and cogeneration

STEEL%METALLURGICAL%

38%%

PETROCHEMICAL%PHARMACEUTICAL%

CHEMISTRY%16%%

BUILDING%MATERIALS%

12%%

AGRO:FOOD%7%%

ENERGY%/%SERVICES%/%WASTE%TREATMENT%

7%%

RESIDENTIAL%COMMERCIAL%

6%%

GLASS%4%%

PAPER%AND%PRINTING%

3%%ICT%2%%

AUTOMOTIVE%MECHANICS%

2%%

WOOD%2%%

TEXTILE%AND%TANNING%1%%

STEEL%METALLURGICAL%9%%

PETROCHEMICAL%PHARMACEUTICAL%

CHEMISTRY%17%%

BUILDING%MATERIALS%14%%

AGRO9FOOD%13%%

ENERGY%/%SERVICES%/%WASTE%TREATMENT%

7%%

RESIDENTIAL%COMMERCIAL%

17%%

GLASS%4%%

PAPER%AND%PRINTING%4%%

ICT%3%%

AUTOMOTIVE%MECHANICS%

6%%

WOOD%2%%

TEXTILE%AND%TANNING%4%%

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WhC breakdown: PPPM (above) and WhC (below)

Source: FIRE commissioned by ENEA.

Page 41: White certificates and other incentives for energy efficiency and renewables and cogeneration

EE"heat"48%"

EE"electricity"17%"

Heat"recovery"9%"

Cogenera8on"16%"

Biomass"6%"

Solvent"treatment"0%"

Civil"sector"4%"

WhC"technology"breakdown"

EE"heat"19%"

EE"electricity"28%"

Heat"recovery"15%"

Cogenera8on"17%"

Biomass"6%"

Solvent"treatment"

1%"Civil"sector"

14%"

PPPM"technology"breakdown""

n°#PPPM requested#WhCEE#heat 128 645.293EE#electricity 186 226.946Heat#recovery 98 112.973Cogeneration 111 210.377Biomass 41 81.487Solvent#treatment 9 5.236Civil#sector 90 48.820

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Technology breakdown

Source: FIRE commissioned by ENEA.

Page 42: White certificates and other incentives for energy efficiency and renewables and cogeneration

9%#53%#

10%#

28%#

Heat#recovery#breakdown#

HEAT#RECOVERY#FOR#THE#PROCESS#

HEAT#RECOVERY#FOR#OTHER#USES#

FLUE#RECOVERY#FOR#THE#PROCESS#

FLUE#RECOVERY#FOR#OTHER#USES#

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WhC and EED

Incentives

Conto termico

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Heat recovery

With heat recovery for the process we mean heat reused within the same process that generated it.More often the heat recovered at low temperature is used in other processes within the enterprise. The same applies for the two flue recovery categories.

Source: FIRE commissioned by ENEA.

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Gas cogeneration

The new cogeneration plants are distributed homogeneously among all activities with use of low-temperature heat.A peak of interventions in the food and chemical / pharmaceutical sectors can be nevertheless noticed.

82%$

17%$

1%$

Cogenera.on$proposals$

Gas$CHP$

Gas$trigenera.on$

Gas$quadrigenera.on$

Source: FIRE commissioned by ENEA.

Page 44: White certificates and other incentives for energy efficiency and renewables and cogeneration

44%#

22%#

10%#14%#

10%#

Biomass#proposals#

BIOMASS#BOILER#

BIOMASS#COGENERATION#

BIOMASS#FOR#PROCESS#

BIOGAS#

BIOOIL#

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WhC and EED

Incentives

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Biomass

The use of biomass shows a concentration in the agri-food sector where the availability of residues leads to a natural application.Other interesting aspects are the direct use of wood biomass as fuel in the lime factories and biogas in the food industry.

Source: FIRE commissioned by ENEA.

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Civil sector

59%$

36%$

5%$

Civil$sector$proposals$

BOILERS$AND$HEAT$ACCOUNTING$LIGHTING$

DISTRICT$HEATING$

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PPPM forecast VS requested WhC over years

Case 1: e.g. building materials, manufacturing industry

Case 2: e.g. furnace glass, membranes, RDF

Case 3: e.g. lighting, heating, cooling

Preventivo

Consuntivo

Preventivo

Consuntivo

Consuntivo

Preventivo

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The complete report will give us a lot of interesting information (that would be difficult to summarize in a presentation).

It is better to think about a procedure to collecting and categorising data from complex projects since the start up of the WhC scheme.

Monitoring plans don’t tell us just how many pieces of a technology has been installed, they give us information about industrial processes and trends in technology substitution (a fact that can stimulate many support activities), and they help ESP to grown up and become ESCO or anyway skilled operators.

To make savings in the order of Mtoe monitoring plans are a necessity (unless we pour a lot of money in terms of WhC/”cost of investment” on deemed savings, like we have done for CFL), so it is important to monitor their trends.

A lot of information and training activities is needed in order to get some interesting achievement.

Conclusions

Energy efficiency is complex and to be successful it needs a lot of commitment (in primis by policy makers), the recognition of co-benefits, M&V (not only for WhC to work, but for EPC and banks), information and training. This is true for EEO as well as for any kind of support policy.

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48

Typical cement production cycle

!

CE

MB

UR

EA

U BA

T Reference D

ocument

Page 26

Chapter 3

Figure 1. Cement manufacturing process (dry process) [22]

Source: Reference Document on Best Available Techniques in the Cement, Lime and Magnesium Oxide Manufacturing Industries, EC, 2010.

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Italy is among the largest cement producers in Europe.

With a total production of 36.3 million tons of cement it was in 2009 the main producer, despite the significant decline in recent years (-15.6% in 2008).

The production facilities are located throughout the country and currently total 88 manufacturing units, of which 58 are full-cycle and 30 are grinding factories.

There are 80 active rotary kilns, all based on the dry or semi-dry technology that enables the achievement of greater energy efficiency.

The cement industry in Italy

The cement industry is clearly one of the most interesting for the WhC scheme in terms of potential certificates and it serves well as an example of WhC implementation in the industrial sector.

The data and the assumptions on this presentation are taken from the guideline for the cement industry created by ENEA and FIRE that will be published on the website www.efficienzaenergetica.enea.it.

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Despite remarkable advances in technology, in terms of energy efficiency, there are still margins for improvement.

The BAT considered in the cement industry BRef indicate a value of 3,000 MJ/t of clinker for thermal energy and 90 kWh/t of cement for electricity.

The savings that would result from the transformation of the entire cement factories park is about 300 MJ/t of clinker. Given the annual national production of 36.3 million tons of cement, a clinker/cement ratio of 0.75, and assuming an approximate percentage of plants renovation of 50%, the global saving will be around 100 ktoe/year.

For the consumption of electrical energy, considered over the entire production line, the possible reduction from the baseline is about 25 kWh/t of cement. Considering again a penetration rate of 50% the global saving will be around 85 ktoe/year.

Potential savings

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51

Typical algorithms for the cement industry

In order to prepare a monitoring plan the following points must be addressed:- process description;- description of the EE solution;- identification of the baseline, and thus of additional savings;- definition of the algorithm to calculate the energy savings;- description of the M&V system.

Usually the third and fourth points are the most difficult to address, for different reasons.

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52

Typical baseline values

For new plants (or a complete renovation of an existing plant) the reference is the market average, i.e. the typical solution proposed in that period of time for the same intervention. As mentioned above, currently it is the dry process with multiple stage preheater and precalciner.For the renovation of an existing plants, provided an hardware intervention is implemented and not only an improvement of the plant management or of the regulation of the energy devices, the baseline reference is the higher between the specific consumption of the ex-ante plant and the specific consumption of the current practice in the same industrial sector.

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53

Savings collected in the cement industry within the WhC scheme

The good number of applications demonstrates that even if monitoring plans are complex, they can successfully be used, especially when the available savings are good enough to justify the effort. In Italy, there is a minimum threshold to present a single EE measure of 60 toe, that at present WhC prices corresponds to 6,000 €/year for five years. The table shows typical savings between 15 and 3,500 toe.

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The algorithm is not an issue technically, but it is important that it is chosen taking into account the necessity to normalise the savings with the industrial production – the clinker in this case – and to ensure that the effect of the EE intervention is correctly isolated from other energy consumption.

Most problems that arise in this connection are due to an insufficient number of meters or to their incorrect positioning. But there are may also be errors in the definition of the savings formula.

Since in the cement industry fuel and clinker consumption present high values – on the order of hundreds of thousands of tons per year – an accurate measurement may be difficult. To address this issue, one possibility is to refer to the measurement uncertainties listed in Annex VII of the Decision 2007/589/EC related to the emission trading scheme (directive 2003/87/EC).

The use of alternative fuels is still limited, so its effects on the final result is still not very significant, but considering the Italian interest in refuse derived fuel (RDF) from industrial and municipal waste, the implications of its use should be analysed, both with respect to WhC and ETS, and should lead to a different baseline for RDF fired plants.

Conclusions

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With large EE interventions, like the ones considered in the cement industry, monitoring plans are working well. Industrial companies have come to understand the opportunity that WhC represent and are trying to join in.

More importantly, EE is finally going to be promoted by the mechanism. Monitoring plans have in fact already overtaken deemed savings and engineering estimates in Italy in the last year in terms of issued certificates.

Due to the complexity of the plans the proponents are improving their knowledge of the industrial sectors in which they operate, with positive effects on their potential to promote and replicate similar actions. Some of the proponents have indeed become full ESCOs this way, fulfilling one of the original aims of the WhC scheme in Italy.

A final important aspect: the real trigger to success of the scheme and of the involvement of industry is information and training. It is fundamental to devote sufficient economic and personnel resources to these activities. The advantages for the system in general are enormous compared with the cost of implementing these actions.

Conclusions

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56

Weighted average WhC price

40,00$

50,00$

60,00$

70,00$

80,00$

90,00$

100,00$

110,00$

2005$ 2006$ 2007$ 2008$ 2009$ 2010$ 2011$ 2012$ 2013$

Weighted(average(WhC(price(on(the(GME(market(

€/toe$

Target$year(2013:$provisional$data)$

Source:$FIRE$based$on$AEEG$and$GME$data$

Page 57: White certificates and other incentives for energy efficiency and renewables and cogeneration

0"

10"

20"

30"

40"

50"

60"

70"

80"

90"

100"

110"

120"

07/03/2006"

16/05/2006"

25/07/2006"

24/10/2006"

16/01/2007"

27/03/2007"

05/06/2007"

28/08/2007"

06/11/2007"

29/01/2008"

08/04/2008"

17/06/2008"

09/09/2008"

18/11/2008"

17/02/2009"

28/04/2009"

01/07/2009"

22/09/2009"

01/12/2009"

02/03/2010"

11/05/2010"

20/07/2010"

19/10/2010"

11/01/2011"

22/03/2011"

31/05/2011"

30/08/2011"

15/11/2011"

07/02/2012"

17/04/2012"

31/05/2012"

07/08/2012"

06/11/2012"

05/02/2013"

16/04/2013"

25/06/2013"

WhC

's&price&(Euro)&

Market&session&data&

WhC&price&trend&

"May"31st"session"" "DSO's"reimbursement"" "Type"III"" "Type"II"" "Type"I""

Source:"FIRE"evaluaIon"based"on"AEEG"and"GME"data"

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57

Price trends

Source: FIRE.

WhC oversupply

WhC shortage

Page 58: White certificates and other incentives for energy efficiency and renewables and cogeneration

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58

Issued certificates VS targets

In the first phase there has been an excess of WhC on the market. Then it came a change that has taken the market on the opposite situation. The main drivers of these changes have been: CFL and other deemed saving files no more available, the completion of the 5 years cycle for the first projects, the rapid growth of monitoring plans since 2012. The results in 2011 and 2012 are affected by the introduction of the tau coefficient (i.e. in the same years targets and issued WhC are not directly comparable).

!40%%

!20%%

0%%

20%%

40%%

60%%

80%%

100%%

!4.000%%

!2.000%%

%!%%%%

%2.000%%

%4.000%%

%6.000%%

%8.000%%

%10.000%%

2005% 2006% 2007% 2008% 2009% 2010% 2011% 2012% 2013% 2014% 2015% 2016%

%"

ktoe

"

Italian"WhC"targets"and"results"(data"updated"to"May"31"2013)"

Primary%energy%saving%targets%(ktoe)% Issued%WhC%from%June%1st%to%May%31st%(ktoe)%

Eccess%%or%missing%WhC%(ktoe)% (issuedWhC!targetWhC)/targetWhC%(%)%

Source:%FIRE%based%on%AEEG%and%GME%data%

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Legislation and incentives

59

Page 60: White certificates and other incentives for energy efficiency and renewables and cogeneration

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Barriers

Source: IEA 2010.

60

602 PART THE TRANSITION FROM PRESENT TO 20502

barriers to their adoption. Among the factors that influence household decisions to adopt new technologies are the time and inconvenience associated with searching for a better product, collecting and assessing information, and completing the transaction. Consumer perceptions of the potential risks associated with the shift to more efficient technologies may also impede their adoption. Policies can make energy-efficient technologies more attractive to would-be adopters (Figure 16.5).

Figure 16.5 � Impact of policies on different costs relating to technology choices

Impacted by policies,

programmes, awareness, and by

shifting preferences – all roughly

approximated by the “hurdle rate”

or the “implicit discount rate”

Impacted by policies, R&D

programmes, experience, growing

expectations, and new innovations

CapitalCapital

Fuel

Fuel

Standardtechnology

Efficienttechnology

Informationcosts

Search costs

Preferences,perceived risk

Transactioncosts

Cost

or

cost

equiv

ale

nt

Source: Laitner (2009).

Key point

Policies and programmes must identify and address the hidden costs associated with energy-efficient technology adoption.

Overcoming the costs and risks associated with new technologies is an important step towards increasing technology adoption; however emerging social science research suggests that it is unlikely to be sufficient and that other factors play equally important roles. This research highlights the emergence of successful consumer-focused programmes and policies that target, inform, motivate and empower energy users.

Targeting people and behaviours. The would-be adopters of more energy-efficient technologies present a diverse range of attitudes, interests, values, motivations and resources. Successful community-based social marketing

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Existing barriers slow down the diffusion of energy efficient solutions and must be addressed to reach the 20-20-20 targets.

Some of these barriers can be addressed through dissemination and training activities, others require support schemes, others – like the second one – should be dealt with, but will remain.

Barriers

The main barriers to energy efficiency are:lack of knowledge and attention;attention focalized towards the core business;operators know-how and qualification;attitudes and behaviors;lack of a sufficient production and distribution chain;complexity of the EE solutions;inadequate legislation and authorization procedures;lack of good support schemes;lack of interest and know-how from financial institutions and banks.

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Policy and behaviors

Source: IEA 2010.

62

599 CHAPTER TECHNOLOGY CHOICES AND BEHAVIOUR16

16

Extensions and alternatives to the techno-economic model

If policies are to influence energy consumption more effectively, they need to reflect a more complex understanding of the many factors that shape or drive individual behaviours (Stern, 2002). Such policies will reflect not only the influence of financial costs and rewards and the availability of technology choices, but also the importance of personal capabilities, habits, values, norms and social and institutional contexts (Figure 16.2).

Figure 16.2 � Policy instruments and behavioural drivers

Policy instruments Behavioural drivers

Commandand control

Economicinstruments

Service andinfrastructure

Personal capabilities and constraints:literacy, social status, behaviour-

specific knowledge and skills

Habit and routine

Values, attitudes, beliefs,personal norms

Institutional, economicand technological context:

Social context: social norms,persuasion, advertising, personalcommitments, informal institutions

Laws, regulations

Private contracts

Financial costs and rewards

Available technology

Convenience

Communicationand diffusioninstruments

Collaborativeagreements

Source: Stern (2002).

Key point

A diverse set of behavioural factors must be considered in designing programmes and policies aimed at improving the adoption of energy efficiency and low-carbon technologies.

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63

The legislative tools are:EU directives, regulations, and decisions;laws (constitutional, ordinarie, finanziarie);legislative decrees (D.Lgs.);decreti legge (D.L., Government’s acts to be confirmed by the Parliament to maintain effectiveness);D.P.R., D.P.C.M. e D.M. (second rank decrees, required by the above mentioned laws);regional and local acts;AEEG delibere;GSE and GME technical regulations concerning the market;UNI, CEI, and CTI standards.

Italian legislation

Last but not least, the administrative tribunals (TARs) play an important role especially with AEEG acts and have a deep reflection on the regulations.

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Different policies for different technology development

Source: IEA 2010.

64

50 EXECUTIVE SUMMARY

Technology policy

Many of the most promising low-carbon technologies currently have higher costs than the fossil-fuel incumbents. It is only through technology learning from research, development, demonstration and deployment (RDD&D) that these costs can be reduced and the technologies become economic. Thus, governments and industry need to pursue energy technology innovation through a number of parallel and interrelated pathways. Most new technologies will require, at some stage, both the “push” of RD&D and the “pull” of market deployment.

The role of governments in developing effective technology policy is crucial: policy establishes a solid foundation and framework on which other stakeholders, including industry, can build. Where appropriate, policies will need to span the entire spectrum of RDD&D. In this way, governments can reduce the risk for other actors in the early phases of technology development and then gradually expose the technology to greater competition, while allowing participants to realise reasonable returns on their investments as a low-carbon economy takes hold.

Governments will need to intervene on an unprecedented level in the next decade to avoid the lock-in of high-emitting, inefficient technologies. They must take

Figure ES.2 � Policies for supporting low-carbon technologies

Mar

ketd

eplo

ymen

t

2. Stable, technology-specific incentives

1. Technology developmentand demonstration

Prototype and demo stage( fuel cells, 2 generation

biofuels, electric vehicles, CCS)e.g. nd

High cost gap(solar CSP, solar PV,

hybrid vehicles)

Low cost gap(onshore wind, biomasspower in some markets)

Mature technology(energy efficiency,industrial CHP)

Green certificates, GHG trading

Feed-in tariffs, tax credits, loan guarantees

Building codes, efficiencystandards, information campaigns

1. Developmentand infrastructure

planning

RD&D financing,capital cost support

for large-scaledemonstration

3. Technology-neutralbut declining support

4. Accelerate adoption byaddressing market barriers

Time

4. Mass market3. Achieving

competitiveness2. Niche markets

Note: The figure includes generalised technology classifications; in most cases, technologies will fall in more than one category at any given time.

Key point

Government support policies need to be appropriately tailored to the stage(s) of development of a technology.

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Support schemes could be dedicated to:knowledge (raising awareness and know-how, energy audits, energy management systems);research and development in new technologies;the development of the supply chain, from the production to the installation (both of the technology and of the connected devices or consumables, such as pellet and ashes for domestic biomass fired boilers);the installation of technologies among the end users or the development of energy services;the financial system (banks, private equity, etc);past and present errors (e.g. conto energia PV, nuclear decommissioning in Italy for power plants turned off soon after their start up).

The last voice should be treated with respect, becausefollows the lack of a medium and long term strategy andis quite common in Italy.

Support actions

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The basic idea – often neglected – is that since the energy system is a complex one, then it should be addressed with a mix of dedicated and tailored support measures.

Support tools

The main used are:capital cost or investment contributions (e.g. Ministry of Environment’s and regional calls);

feed-in tariffs and premium (e.g. CIP6, conto energia fotovoltaico);

baseline and cap and trade schemes (e.g. white and green certificates, emission trading);

guarantee funds (e.g. Fondo Kyoto);fiscal deductions or reliefs (e.g. detrazioni fiscali 55%, gas taxation for CHP);

carbon tax.

Support actions

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Incentives

Energy efficiency Thermal renewables Electrical renewables

Feed in premium PV(D.M. 5 luglio 2012)

RES incentives(D.M. 6 luglio 2012)

Green certificates and TFO(in via di uscita)

Conto energia termico(D.M. 28 dicembre 2012)

White certificates

65% fiscal deduction(till al 31 December 2013)

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

CHP/DH

WhC

DH GC

5

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Incentives

Efficienza energetica Energia termica da FER Energia elettrica da FER

Conto energia fotovoltaico

GSE

Incentivi alle FER elettriche

GSE

Certificati verdi e T.F.O.

GSE - GME

Conto energia termico

GSE-ENEA-AEEG

Certificati bianchi

MSE - GSE - ENEA - AEEG – RSE - GME

Detrazioni fiscali al 55%

ENEA - Agenzia delle Entrate

Altre misure (Fondo Kyoto, Fondo EEEF, incentivi locali etc.)

Cassa Depositi e Prestiti, enti locali, Ministeri etc.

CHP/TLR

C.B.CAR

GSEGME

C.V. TLR

GSEGME

6

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Admitted proponents

Public administrations (max threshold 200 M€/year), also through ESCOs and TPF

For thermal renewables only: families, condominiums, agricultural, commercial and industrial companies (max threshold 700 M€/year), also through ESCOs and TPF

TargetExisting buildings

Interventions aimed at building envelope and plants

46

direct

registry

Access booking (only P.A.)

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(fonte www.fire-italia.org)

Solu%ons Incen%ve  dura%on

Admi3ed  proponents

Thermal insulation of building envelope 5  anni (Allegato  I)

P.A.  (accesso  dire5o  o  

prenotazione)

Edifici  di  proprietà  delle  PP.AA.  e  da  esse  occupa<

Substitution of windows 5  anni

(Allegato  I)

P.A.  (accesso  dire5o  o  

prenotazione)

Edifici  di  proprietà  delle  PP.AA.  e  da  esse  occupa<

Condensing boilers (substitution) 5  anni

(Allegato  I)

P.A.  (accesso  dire5o  o  

prenotazione)

Edifici  di  proprietà  delle  PP.AA.  e  da  esse  occupa<

Building shielding and shading 5  anni

(Allegato  I)

P.A.  (accesso  dire5o  o  

prenotazione)

Edifici  di  proprietà  delle  PP.AA.  e  da  esse  occupa<

Geothermal, electrical and gas powered heat pumps

2  anni  fino  35kW(Allegato  II)

P.A.(accesso  dire5o  o  

prenotazione)  e  priva<.

Registri  oltre  500kW

Geothermal, electrical and gas powered heat pumps 5  anni  oltre  35kW  fino  a  

1MW.

(Allegato  II)

P.A.(accesso  dire5o  o  

prenotazione)  e  priva<.

Registri  oltre  500kW

Biomass powered boilers, also for greenhouses

2  anni  fino  35kW

(Allegato  II)

P.A.(accesso  dire5o  o  

prenotazione)  e  priva<.

Registri  oltre  500kW

Biomass powered boilers, also for greenhouses 5  anni  oltre  35kW  fino  a  

1MW.  

(Allegato  II)

P.A.(accesso  dire5o  o  

prenotazione)  e  priva<.

Registri  oltre  500kW

Solar thermal and solar cooling

2  anni  fino  a  50m2 P.A.(accesso  

dire5o  o  prenotazione)  e  priva<.

Solar thermal and solar cooling5  anni  oltre  50  fino  a  1000  m2

P.A.(accesso  dire5o  o  

prenotazione)  e  priva<.

DHW heat pumps in substitution of DHW electric boilers 2  anni

P.A.(accesso  dire5o  o  

prenotazione)  e  priva<.

50

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Incentives for renewable energy sources

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- 7 -

RES - E SUPPORT MECHANISMS PV PLANTS OTHER RES PLANTS

Feed-in Tariff Sliding Feed-in Premium

A fixed tariff (technology and size banding incentive)

PLUS any applicable

premium

Value of Feed-in MINUS

hourly zonal energy market price

PLUS any applicable

premium

P  ≤  1MW P > 1MW

Feed-in tariff Sliding Feed-in Premium

A fixed tariff (depending on

technology and size) PLUS

self consumption premium or/and any applicable premium

Value of Feed-in MINUS

hourly zonal energy market price

PLUS self consumption

premium or/and any applicable premium

P  ≤  1MW P > 1MW

Yearly cumulative spending limit: 6,7 € bln

Directly Registries PV  plants  ≤    12  kW (≤  20  kW  with  20%  tariff  reduction)

PV plants > 12 kW

How to access to incentives How to access to incentives

Directly Registries Auctions Very small plant & other marginal cases

- RES  ≤  5MW except - Hydro  ≤10 MW - Geo  ≤  20  MW

- RES > 5MW except - Hydro > 10 MW - Geo > 20 MW

Yearly cumulative spending limit: 5,8 € bln

INSTRUMENTS: RES-E support schemes

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Fonte: GSE78

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Fonte: GSE79

Incentives breakdown

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Incentives tariffs

Base tariffs from 85 to 291 €/MWh

Premiums are provided fo r h igh e f f i c iency c o g e n e r a t i o n a n d innovative biogas and geothermal plants.

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Source: GSE

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- 8 -

SUPPORT MECHANISMS FOR RES-E IN EUROPE Examples of comparison of incentives in force in May 2013 (20 years annualized total revenues)

Feed in tariff Green Certificates Feed in Premium Wholesale electricity price Min and max value of the incentive

0

50

100

150

200

250

RO CK IT NL UK DE FR SE DK AT

€/M

Wh

Hydro – 10 MW

0

50

100

150

RO IT NL CK UK DE AT FR DK SE

€/M

Wh

Wind – 10 MW

0

50

100

150

200

250

300

350

DE FR RO UK IT CK NL AT SE DK

€/M

Wh

Geothermal – 10 MW

0

50

100

150

200

250

IT RO AT DE CK UK FR NL DK SE€/

MW

h

Solid biomass – 10 MW

INSTRUMENTS: RES-E support schemes

For almost all kinds of small plants, in Italy, incentives given to producers are still the highest of the EU. (this is due to a clear intention, in the latest reform, to encourage specific applications with more impact on Italian supply chain)

Source: GSE

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78- 9 -

0

100

200

300

400

500

600

700€/

MW

h

0

100

200

300

400

500

600

700

€/M

Wh

0100020003000400050006000700080009000

10000

2007 2008 2009 2010 2011* 2012 2013

MW

0100020003000400050006000700080009000

10000

2007 2008 2009 2010 2011 2012 2013

MW

ITA

LY

GER

MA

NY

3 kW residential buildings total revenues

200 kW industrial buildings total revenues

2000 kW ground total revenues

*  This  includes  more  than  3700  MW  of  plants  already  completed  in  2010    (“Salva Alcoa”  Decree)

INSTRUMENTS: RES-E support schemes

annual installed MW

SUPPORT MECHANISMS FOR PHOTOVOLTAIC IN EUROPE Examples of comparison of PV annual installed capacity and incentives digression (20 years annualized total revenues based on the Italian load factor)

Source: GSE

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- 19 -

2005-2011 trends and 2020 NREAP sectorial targets

MONITORING: where we are and where we should be

Data available on SIMERI (http://www.gse.it/it/Statistiche/Simeri)

Share of RES in gross final consumption in the ELECTRICITY sector

Share of RES in gross final consumption in the HEATING sector

NREAP's trajectory Final

NREAP's trajectory Final

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- 23 -

Indicative cumulative yearly cost of RES-E support (“counter  PV”  and  “counter  others  RES”) Estimate of the net potential annual cost, already committed but not yet fully supported. It includes the economic value of all green certificates as well the costs of registries and auction. It does not include the costs of services such as “simplified  purchase  &  resale  arrangement”  and  “net  metering”.

June 6, 2013

April 30, 2013 (latest available estimate)

PV 6,47 €  bilOther RES 2,54 €  bilFossil 0,87 €  bilTotal 9,87 €  bil

MONITORING: FOCUS ON RES-E SECTOR. COSTS

Net cost of incentives on electricity bills (A3) in the year 2012 It includes the costs of services such as “simplified  purchase  &  resale  arrangement”  and  “net  metering”  (0,2  € bil). It does not include the economic value of the green certificates that have not been withdrawn from the GSE.

PV 6,70 €  bil 6,70 €  bil

Other RES 4,22 €  bil 5,80 €  bil

Total 10,92 €  bil

"Spending caps"

Components of the electricity bill for a household type (March 2013): 53% energy and dispatching; 17% burden for incentives; 15% transmission and distribution; 13% taxes; 2% other system burdens

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- 26 -

MONITORING: FOCUS ON RES-E SECTOR. ECONOMIC BENEFITS

Employment impacts due to investments in 2011 RES Investments in 2011

Impacts on national value added in 2011 Impact on gross domestic production in 2011

Source: GSE Methodology: input/output analysis, using spending vectors updated and corrected to take account of the value of imports and exports

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Cogeneration

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Fonte: Newsweek

Centralised power production

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Fonte: Newsweek

Distributed power production

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Definitions D.Lgs. 20/2007:

- Small CHP < 1 MWe

- Micro CHP < 50 kWe

Cogeneration and trigeneration schemes

ICE engine Gas turbine

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Fonte: Università di Roma 1Cogeneration and trigeneration schemes

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Large cogeneration plants (> 300 MW)

Source: GSE

Plants of every size

Small CHP plants

Microturbine plant and 1 kW GT prototype

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Typical figures

Technology Fuel Size (MWe) Electrical efficiency Overall efficiency Average capital costin $/kWe

Average Maintenance in$/kWh

Steam Turbine Any 0.5-500 7-20% 60-80% 900-1800 0.0027

Gas Turbine Gaseous and liquidfuels 0.25-50+ 25B42% 65B87% 400-850 0.004-0.009

Combined cycle Gaseous and liquidfuels 3-300+ 35B55% 73-90% 400-850 0.004-0.009

Diesel and Ottoengines

Gaseous and liquidfuels 0.003-20 25B45% 65-92% 300-1450 0.007-0.014

Micro turbines Gaseous and liquidfuels 15-30% 60-85% 600-850 <0.006-0.01

Fuel cells Gaseous and liquidfuels 0.003-3+ App 37-50% App. 85-90% ? ?

Stirling engines Gaseous and liquidfuels 0.003-1.5 App. 40% 65-85% ? ?

Costs and profitability A well-designed and operated cogeneration schemewill always provide better energy efficiency than aconventional plant, leading to both energy and costsavings.

Cost savings depend on both the cost of the primaryenergy fuel and the price of electricity that the schemeavoids. However, although the profitability of acogeneration project generally results from its cheapelectricity, its success depends on using recovered heatproductively, so a prime criterion is a suitable heatrequirement. As a rough guide, cogeneration is likelyto be suitable where there is a fairly constant demandfor heat for at least 4,500 hours in the year.

The total investment in a CHP project depends uponthe size of the installation and its design andcharacteristics. Under favourable conditions, paybackperiods of three to five years can be achieved on mostcogeneration installations. Their operating life canreach 20 years.

Industry and Market Trends Cogeneration accounts for around 7% of total globalpower production and more than 40% in someEuropean countries. This potential is far from beingachieved in most countries. There are many suppliersof conventional cogeneration technologies, but newertechnologies (micro turbines, fuel cells, Stirlingengines) are produced by a few companies only.

An expansion of the market for small-scalecogeneration schemes is likely to occur in the years to

come. The micro turbine market is expected to growover the forthcoming years. Fuel cell applications willbe on the market probably not before 2004-2005.

In many countries the current situation of cogenerationin the market could be better. The European experienceshows that rising gas and falling electricity prices makeit difficult for cogenerators to operate profitably.Uncertainties created through reforms in the energysector can be an important barrier.

Global policies to reduce greenhouse gas emissions,liberalisation of energy markets, and emerging needsfor decentralised energy in emerging markets willimprove the prospects for cogeneration.

Table 1: Cogeneration Technology Characteristics

Key Points- Cogeneration is the most efficient way of generating electricity, heat and cooling from a given amount of fuel. It

saves between 15-40% of energy when compared with the separate production of electricity and heat.- Cogeneration helps reduce CO2 emissions significantly. It also reduces investments into electricity transmission

capacity, avoids transmission losses, and ensures security of high quality power supply.- A number of different fuels and proven, reliable technologies can be used.- A concurrent need for heat, electricity and possibly cooling indicates suitable sites for cogeneration.- The initial investment in cogeneration projects can be relatively high but payback periods between 3-5 years

might be expected.- The payback period and profitability of cogeneration schemes depends crucially on the difference between the

fuel price and the sales price for electricity.- Global environmental concerns, ongoing liberalisation of many energy markets, and projected energy demand

growth in developing countries are likely to improve market conditions for cogeneration in the near future.

Project RisksTechnology: CHP is a mature technology. With properengineering, risks such as downtimes, failures, andreduced efficiency are not greater than for mostcombustion technologies.Environmental: Environmental problems such as airemissions, noise, raw material and residue handling, canall be mitigated through proper siting, design, andoperation of the CHP facility. In many cases CHPretrofits to existing installations may bringenvironmental improvements.Planning: The ratio between electricity and fuel pricesmay change (price risk); regulatory frameworks maychange unfavorably (regulatory risk); the heat demandmay change, making the CHP project less suited to meetthe siteUs needs (energy consumption risk); or theorganization that uses the CHP scheme may close,relocate, or go bankrupt (host risk).

Investment into energy efficiency does not come for free. The owner of a cogeneration plant needs to calculate with two types of cost: the initial costs for installing the cogeneration plant (purchase of the cogeneration unit, connection to the power grid, the fuel system and the heating system, construction and engineering) and for the long-term costs for the fuel and for the maintenance of the system.

Looking at the initial costs, the investment into cogeneration is more capital-intensive than the investment into a boiler, which only produces heat and no electricity. The graph above shows that the cogeneration unit constitutes the biggest share of overall investment. Generally, smaller cogeneration units have a higher price per kWe, so that the total initial costs vary from 6700 to 63,000 per kWe.

Next to the fuel costs, long-term costs occur due to maintenance and service needs. Most suppliers of cogeneration units offer a full-service contract: essentially a life-time guarantee for the cogeneration unit. Full-service contracts have a duration of ten years or more and should cover the costs for lubrication, filters, spark-plugs (for engines), etc. Cogeneration users should not shy away from paying these additional costs, if they do not have the knowledge for operating, maintaining and overhauling these machines.

Composition of typical initial costs per unit capacity

Maintenance costs per unit capacity

9

Fundamental economic considerat ionCosts

0100.000200.000300.000400.000500.000600.000700.000800.000

5 15 30 50 65 100 150 250 300 350 400 500 600 700 800 900 1000kWe of chp-plant

Totalinvest

mentinEur

o

EngineeringConnection to gridExhaustConnection to heating systemConstructionCHP-Unit

Price-function: Full-Service = 5.73 x pel-0,26 [Ct/kWhe]

0,000,501,001,502,002,503,003,504,00

0 200 400 600 800 1.000electrical power of chp unit in kWe

CostforFul

l-Service-Co

ntractin[ct/

kWhel]

Initial costs of cogeneration investmentSource: ASUE 2005

Full-service contract costs

COGENchallenge

Source: Cogen Europe.

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89

Traditional system

electricity

gas

heat

Cogenerator

gas

heat

electricityelectricity sold if not self

consumed

Feasibility studies

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90

O&MElectricityFuel

Cash flowTraditional

system

(b)

(a)

(c)

Cogenerator

(d)

(g)

(e)

(f)

Investment I0

FC=f+(a+b+c)-(d+e+g)

VAN=FA(FC)-I0

Feasibility studies

Page 91: White certificates and other incentives for energy efficiency and renewables and cogeneration

0"

5.000"

10.000"

15.000"

20.000"

25.000"

30.000"

35.000"

40.000"

0:00"

2:00"

4:00"

6:00"

8:00"

10:00"

12:00"

14:00"

16:00"

18:00"

20:00"

22:00"

MW#

giovedì#+#16/5/2013#

Pompaggio"

Eolico"

Termo"

PV"

Idro"

Geo"

(da>"Terna,"elaborazione"FIRE)"

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CHP

91

The evolution of the energy system, including new resources worldwide and geopolitical and structural changes, makes the prices volatile and difficult to predict.The rush towards a new (and smarter) energy infrastructure shall overcome the friction b e t w e e n t r a d i t i o n a l a n d renewable energy sources, c e n t r a l i z e d a n d d i f f u s e d generation, and energy waste against energy efficiency.

2001: demand 52-19 GW supply 71 GW (49 GW available) fuel quota 40 €/MWh system charges 0 €/MWh

2011: demand 56-22 GW supp ly 118 GW (76 GW f rom

thermoelectric) fuel quota 80 €/MWh system charges 24 €/MWh

Data sources: Terna, AEEG.

A new energy market

0"

5.000"

10.000"

15.000"

20.000"

25.000"

30.000"

35.000"

40.000"

0:00"

2:00"

4:00"

6:00"

8:00"

10:00"

12:00"

14:00"

16:00"

18:00"

20:00"

22:00"

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martedì#+#4/5/2010#

Pompaggio"

Eolico"

Termo"

PV"

Idro"

Geo"

(dati Terna, elaborazione FIRE)

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CHP

92

Gas

Electricity and gas tariff composition

Electricity

34,17%

18,47%

39,40%

7,97%

ImposteServizi di reteMateria prima Vendita al dettaglio, commercializzazione all'ingrosso e oneri aggiuntivi

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93

Fonte ECD - AusTex.

Feasibility studies

The optimal situation: high baseload/peak ratio.

Possibility to install two twin cogenerators.

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94

Hea

tEl

ectr

icity

Hours

kW

kW

A typical situation. Using the load curves to define the optimal size of the CHP plant.

Hours

Feasibility studies

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95

4.500 hours

8.300 hours

200 kW

Option A: 200 kW engine Option B: 1.000 kW engine

2.800 hours

surplus

1.000 kW

Feasibility studies

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96

Or

kW

45,00

68,75

92,50

116,25

140,00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Saturday

[kW

]

37,500

50,625

63,750

76,875

90,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Monday-Friday

[kW

]

Demand

Production

Surplus

Power modulation

Feasibility studies

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97

Mall surface: 20.000 m2

selling area: 13.000 m2

volume: 100.000 m3

heat: 2.171 MWh/anno electricity: 7.920 MWh/anno cooling: 1.915 MWh/anno electrical power: 1.400 kW Et/Ee: 0,27

Hospital beds: 140 volume: 42.000 m3

heat: 2.192 MWh/anno electricity: 800 MWh/anno cooling: 605 MWh/anno electrical power: 190 kW Et/Ee: 2,75

Hotel posti letto: 350 volume: 43.000 m3

heat: 2.400 MWh/anno electricity: 460 MWh/anno cooling: 718 MWh/anno electrical power: 105 kW Et/Ee: 5,23

Sport centre with swimming pool plants: 2 palestre, 3 piscine (20x10; 25x12,5; 12x3 m2) volume: 9.000 m3

heat: 1.200 MWh/anno electricity: 316 MWh/anno cooling: 126 MWh/anno electrical power: 100 kW Et/Ee: 3,80

Office buildings volume: 15.000 m3

heat: 563 MWh/anno electricity: 371 MWh/anno cooling: 209 MWh/anno electrical power: 97 kW heat power: 222 kW cooling power: 302 kW Et/Ee: 1,51

Font

e: M

acch

i, Ca

mpa

nari

, Silv

a “L

a m

icro

gene

razi

one

a ga

s na

tura

le”,

Polip

ress

Demand typical indexes for tertiary users

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Rules set out from directive 2004/8/EC

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98

High efficient (alto rendimento) CHP

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Page 99: White certificates and other incentives for energy efficiency and renewables and cogeneration

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WhC and EED

Incentives

Conto termico

RES incentives

CHP

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WhC and EED

Incentives

Conto termico

RES incentives

CHP

White certificates for CHP

CAR recognition and WhC request

AEEGPresents WhC

issues WhC

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Step IIb: WhC markets

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OTC market

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rapporti fra le parti

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The number of WhC i s eva lua ted as : RISPx0,086xKw h e r e 1 < K < 1 , 4 depending on the size of the plant.

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Incentives

Conto termico

RES incentives

CHP

101

Current tax allowances for natural gas:

Industrial uses: 1,80* c€/m3 Civil uses: ≈20,00 c€/m3 * ≈ 1,30 c€/m3 in case of consumption greater than 1.200.000 m3/year.

District heating is considered an industrial service and is subjected to the industrial uses tax.The same rule applies to particular users, like restaurants, “amateur” sport centres, handicapped hosting centres, etc.

Gas tax relief

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Incentives

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RES incentives

CHP

102

With regards to tax relief the situation is the following one (GC: gas consumption).

First 0,220 m3/kWhe of GC

GC over 0,220 m3/kWhe 1,80* c€/m3 (industrial sector)

GC over 0,220 m3/kWhe ≈20,00 c€/m3 (civil sector)

* ≈ 1,30 c€/m3 in case of consumption greater than 1.200.000 m3/year.

0,0004 c€/m3 (sold to the grid)

0,0001 c€/m3 (self consumption)

Gas tax relief

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Incentives

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RES incentives

CHP

103

Gas tax relief

0,00#

0,10#

0,20#

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0,15# 0,20# 0,25# 0,30# 0,35# 0,40# 0,45#Rendimento)ele+rico)cogeneratore)

Fiscalità)gas)naturale)per)CHP)

Consumo#specifico#m3/kWhe# m3#sconta>#%#Fonte: FIRE

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Incentives

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RES incentives

CHP

104

Gas tax relief

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Incentives

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RES incentives

CHP

105

To summarise the incentives for high efficiency CHP (cogenerazione alto rendimento CAR):

WhC 16-18 €/MWhe for 10 years in civil sector; in the industrial sector it depends on the baseline; Base tariff for RES with CHP is in the range 30-220 €/MWhe for biogas and 160-270 €/MWhe for solid biomass for 20 years;the tax relief on natural gas can reach 50 €/MWhe for the civil sector and 5 €/MWhe for industry and civil users that pays industrial taxes;net metering, a choice till 200 kWe, equal to 10 a 30 €/MWhe, depending on the fuel (higher for RES);no transport and distribution components on self consumed electricity for efficient user systems (SEU) below 20 MWe; dispatching priority.

References

Chi l’ha visto?Chi l’ha visto?Chi l’ha visto?Chi l’ha visto?Chi l’ha visto?Chi l’ha visto?

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106

To remain up to date:EU official gazzette (http://eur-lex.europa.eu); Italian Gazzetta ufficiale (www.gazzettaufficiale.it) and regional BURs;the free AEEG newsletter (www.autorita.energia.it);the free GSE newsletter (www.gse.it);the free GME newsletter (www.mercatoelettrico.org);energy dedicated newspapers (www.staffettaonline.com, www.quotidianoenergia.it, www.e-gazette.it); ENEA, regional and local energy agencies, energy associations (www.enea.it, www.fire-italia.org, etc);the free website www.normattiva.it, which maintains up to date laws and legislative decrees texts, or the commercial equivalent like www.studiolegale.leggiditalia.it, which address also ministerial, regional, and local decrees and jurisprudential repertories.

Useful references

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107

Some useful links:FIRE: www.fire-italia.org AEEG: www.autorita.energia.it GME: www.mercatoelettrico.orgGSE: www.gse.itCogen: www.cogen.orgWade: www.localpower.orgCogena: www.ascomac.it/sezionec/pag341_c.aspx DOE: www1.eere.energy.gov/industry/distributedenergyCOSPP www.cospp.com

References

Chi l’ha visto?Chi l’ha visto?Chi l’ha visto?Chi l’ha visto?Chi l’ha visto?Chi l’ha visto?

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