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LEGAL REFORM FOR ENERGY EFFICIENCY Borko Raicevic Energy Efficiency and Renewables Expert Energy Community Secretariat Fourth International Forum Energy for Sustainable Development 17-19 September 2013, Tbilisi, Georgia

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Page 1: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

LEGAL REFORM FOR ENERGY EFFICIENCY

Borko Raicevic Energy Efficiency and Renewables Expert Energy Community Secretariat

Fourth International Forum Energy for Sustainable Development 17-19 September 2013, Tbilisi, Georgia

Page 2: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

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ENERGY COMMUNITY

PARTIES : • EU/ European Commission • 8 Contracting Parties • 1 Candidate • 3 Observers • 15 Participants

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INSTITUTIONS:

– Ministerial Council (MC), PHLG, ECRB, Secretariat (ECS), the Fora (Electricity, Gas, Oil, Social)

TASK FORCES:

– Energy Efficiency, Environment, Regional Energy Strategy

ENERGY COMMUNITY

Page 4: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

ENERGY EFFICIENCY- MULTIPLE BENEFITS

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Source: IEA, 2012

Page 5: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

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ENERGY COMMUNITY – FEW INDICATORS

Source: IEA 2012 (2010 data)

LOW ENERGY SUFFICIENCY >> HIGH ENERGY IMPORTS!

78%

68%

49%

76%

56%

85%

68%

4%

58%64%

59%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ALB BIH CRO KOS* MKD MNE SER MOL UKR WB EnC

EU 27

ENERGY SELF - SUFFICIENCY

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ENERGY COMMUNITY – FEW INDICATORS

Source: IEA 2012 (2010 data)

ENERGY INTENSITY IS MUCH HIGHER THAN IN EU!

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

toe

/ tho

usan

d 20

05 U

SD

TPES/GDP

TFEC/GDP

EU 27 PEI

EU 27 FEI

Page 7: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

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ENERGY COMMUNITY – FEW INDICATORS

Source: IEA 2012 (2010 data)

ENERGY CONSUMPTION PER CAPITA LOWER THAN IN EU, BUT EXPECTED TO RISE!

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

ALB BIH CRO KOS* MKD MNE SER MOL UKR WB EnC

toe /

capit

a TPES/population

TFEC/population

EU 27 TPES/population

EU 27 TFEC/population

Page 8: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

ACQUIS ON ENERGY EFFICIENCY MINISTERIAL COUNCIL DECISIONS

(Dec. 2009/Sep. 2010/Oct. 2011): 1. DIRECTIVE 2006/32/EC ON ENERGY END USE EFFICIENCY

AND ENERGY SERVICES (ESD) - by 31 December 2011 (1st NEEAPs by 30 June 2010)

2. DIRECTIVE 2010/30/EU ON LABELING OF ENERGY-RELATED PRODUCTS (RECAST DIRECTIVE 92/75/EEC) AND IMPLEMENTING DIRECTIVES/DELEGATED ACTS (ELD) – by 31 December 2011 / 31 December 2012

3. DIRECTIVE 2010/31/EU ON THE ENERGY PERFORMANCE OF BUILDINGS (EPBD) – RECAST DIRECTIVE 2002/91/EC - by 30 September 2012

NEW EU EE DIRECTIVE 2012/27/EU – RECOMMENDATIONS IN 2013 (VOLUNTARY APPROACH), ADOPTION IN 2014 (UPON DECISION OF MC)

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Page 9: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

DIRECTIVE 2006/32/EC (ESD) Key directive for creation of overall framework for EE:

Indicative energy savings targets (min 9 % for the 9 years of implementation), National Energy Efficiency Action Plans (NEEAPs) − 1st NEEP (2010-2012), 2nd NEEAP (2013-2015), 3rd NEEAP (2016-2018) Exemplary role of the public sector, EE criteria in public procurement, Improvement of end-users’ energy efficiency Obligation of the energy companies, Intelligent metering systems, Innovative EE financial instruments, Energy auditing system, Procedures for monitoring and verification of energy savings , etc.

Key transposition approaches: preparation of general EE law or extensive chapter in energy law + changes in procurement law + package of secondary legislation NEEAPs (based on the template)

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Page 10: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

DIRECTIVE 2010/30/EU (ELD)

Labels help consumers choosing energy efficient product. Framework Directive establishes the legal framework for labelling and consumer information regarding energy consumption for energy-related products:

Obligations for dealers and suppliers, Public procurement , Conditions for distance selling, etc.

The delegated regulations deal with the labelling of specific energy-related products:

Tumble driers, air conditioners, dishwashers, refrigerators, washing machines, TVs…

Key transposition approaches: Basic provisions in EE Law (framework directive) + Technical Regulations for Energy Labelling + standards

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Page 11: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

DIRECTIVE 2010/31/EU (EPBD) Focused on EE improvements in building stock:

Methodology for calculating the integrated energy performance of buildings, Minimum EP requirements for new and existing buildings, building units and technical building systems, Certification of buildings, Financial incentives, Regular inspection of heating and air-conditioning systems, “Nearly zero-energy buildings” - concept and plans.

Key transposition approaches: amendments of the law for buildings + certain provisions in EE law + package of secondary legislation and standards

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Page 12: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

EPBD RECAST (2010) SCOPE

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Elimination of the 1000 m2 threshold for

existing buildings → minimum energy performance requirements for all existing buildings undergoing a major renovation (25 % of building surface or value).

CPs also to set minimum energy performance requirements for technical building systems (large ventilation, AC, heating, lighting, cooling, hot water) for new built and replacement.

CPs to set minimum energy performance requirements for renovation of building elements (roof, wall, etc.) if technically, functionally and economically feasible.

Page 13: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

EPBD RECAST

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COST-OPTIMAL REQUIREMENTS:

New element - benchmarking methodology framework for calculating cost-optimal levels of minimum requirements.

Cost-optimal level = minimised lifecycle cost. Minimum requirements must be defined with a cost-optimal methodology on a long-term life-cycle cost (building envelope and technical systems).

Benchmarking methodology shall help CPs in setting their requirements.

In case of >15 % gap between cost-optimal and the actual national standard → CPs to justify the gap or plan measures to reduce it.

Costs

Savings

Page 14: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

EPBD RECAST

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CERTIFICATES:

to be issued to all new buildings/building units and when existing buildings/building units are rented/sold.

Public authorities occupying office space of > 500m² will have to display the certificate (lowered to > 250m² after 5 years).

Commission to develop a voluntary common European certification scheme for non-residential buildings.

Page 15: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

EPBD RECAST

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INSPECTIONS AND INDEPENDENT CONTROL: CPs to establish regular inspection of heating

systems (> 20kW) and of AC systems (> 12kW). Inspection reports issued after each inspection

(incl. recommendations for EE improvement) and handed over to owner or tenant.

Certificates and inspection to be carried out by independent and qualified and/or accredited experts.

CPs to set up independent control system with random verification of certificates and inspections reports.

CPs to establish penalties for non-compliance.

Page 16: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

EPBD RECAST

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NEW BUILDINGS:

Requirement to consider alternative systems for new buildings (such as RES, district heating and cooling, CHP….).

All new buildings in the EnC as from 2021 will have to be nearly zero energy buildings.

The nearly-zero or very low amount of energy required should to a very significant level be covered by energy from renewable sources.

Page 17: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

EPBD RECAST

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FINANCING:

Crucial role of financing for EE. CPs to draw up lists of national (financial) measures by

30 June 2013. CPs to take into account cost-optimal levels of energy

performances in funding decisions.

Page 18: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

TRANSPOSITION OF EPBD

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ALB BiH

CRO KOS* MLD MKD MNG SRB UKR FBIH RS

GENERAL PROVISIONS IN EE/ BUILDINGS LAW NATIONAL CALCULATION METHODOLOGY

CEN STANDARDS

SETTING OF MINIMUM EP REQUIREMENTS COST-OPTIMAL RECALCULATIONS CERTIFICATION OF BUILDINGS INSPECTION OF HEATING AND AC SYSTEMS INDEPENDENT CONTROL SYSTEM AND REGISTRY

Page 19: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

ENERGY COMMUNITY EE Activities

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EETF (2008-2012) - key activities: EE directives: roadmap development, exchange of experiences and best practices, progress reports, NEEAPs: development, monitoring of implementation, evaluation of savings, Promotion of availability of information and alternative financing mechanisms for EE, capacity building, Update on support programmes, coordination, Analysis of the impact of the new EU EE acquis

ECS assistance Strong donor’s support (EU/EC, GIZ, EBRD, WB, USAID, bilateral TA projects ) Work on regional level: EE COORDINATION GROUP

Page 20: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

TRANSPOSITION OF EE DIRECTIVES - RODAMAP

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UPDATED ROAD MAP STRUCTURE

I. DIRECTIVE 2006/32/EC ON ENERGY END USE EFFICIENCY AND

ENERGY SERVICES

II. DIRECTIVE 2010/31/EU ON THE ENERGY PERFORMANCE OF

BUILDINGS

III. DIRECTIVE 2010/30/EU ON LABELING OF ENERGY-RELATED

PRODUCTS

Energy savings targets

Promotion of energy end use efficiency and energy

services

Definitions and methodology

Energy performance requirements

Energy performance certificate

Inspection of heating and air-conditioning systems

Information and penalties

Scope and Definitions

Establishing the framework

Implementing Directives/Delegated Acts

RM – REPORTING OBLIGATIONS:

• Status of transposition

• Responsible institution(s)

• Intermediate milestones (planned actions and date)

• Overall deadline for implementation – defined (MC Decisions)

ROADMAP TEMPLATE PREPARED IN JANUARY 2011 by ECS!

National roadmaps prepared by March 2011

Available at EnC web-site

Page 21: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

STUDY ON ENERGY EFFICIENCY IN BUILDINGS

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To support governments in their efforts to meet their commitments under the Energy Community Treaty by assisting them to increase the efficient use of energy in buildings and improve their energy performances, as well as for implementation of their NEEAPs with respect to buildings sector.

Activities:

- Buildings stock inventory, reference buildings; - Economic energy saving potential; - Data base of climate parameters; - Methodology for calculating the energy performance of buildings; - EU standards and secondary legislation; - EPBD Implementation Roadmap for Energy Community; - Training workshop

Dissemination of results: Workshop on Energy Efficiency in Buildings, 22 February 2012, Vienna

Page 22: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

ILLUSTRATION Roadmap for implementation of EPBD (2012)

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Page 23: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

2nd NEEAP (2013-2015) Final aim: to become a overall EE strategic

document (not only focused on end-use sectors) => contribution to 2020 target

More comprehensive: supply side/ transmission/distribution /end-use Includes reporting on 1st NEEAP, evaluation of achievements, corrective measures (incl. targets) National targets for nearly zero energy buildings (EPBD) Public sector: Exemplary role (ESD/EPBD/ELD), Specific measures for public procurement Stronger focus on development of the market for energy services Harmonization with other national strategies and regional/local plans

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Page 24: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

EnC - WORK ON 2nd NEEAP (2013-2015)

MONITORING AND PRELIMINARY REPORTS ON 1st NEEAPs (EETF - June 2012) TEMPLATE FOR 2ND NEEAP (October 2012) TRAINING WORKSHOP ON THE PREPARATION OF THE 2nd NEEAPs (October 2012) WSs ON FINANCING OPTIONS (2012/2013 -ongoing ) PREPARATION AND ADOPTION (BY JUNE 2013) SUPPORT ON REGIONAL LEVEL (EE COORDIANTION GROUP)

HARMONISED PREPARATION AND MONITORING

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Page 25: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

REGIONAL SUPPORT PROGRAMMES

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→ EC: STUDY ON FINANCING OPTIONS TO IMPLEMENT NEEAPs IN THE WESTERN BALKANS; REVIEW OF FINANCIAL SUPPORT FACILITIES IN WB, CONCRETE PROJECTS (WBIF): EE WINDOW/REEP, SECTOR STUDY ON BIOMASS-BASED HEATING IN WB

→ INOGATE – COMPONENT III

→ GIZ OPEN REGIONAL FUND - ENERGY EFFICIENCY: SUPPORT IN MONITORING OF NEEAPs , VERIFICATION AND EVALUATION OF THE ENERGY SAVINGS ACHIEVED, CREATION OF INTEGRATED PLATFORM

→ EBRD: GAP ANALYSIS STUDY ON ESCO MARKET IN THE WESTERN BALKAN ; TA AND FINANCING FOR ESCO DEVELOPMENT, EPBD, TARIFFS AND PROCUREMENT, REGIONAL EE PROGRAMME

→ WORLD BANK: SCALING UP ENERGY EFFICIENCY IN BUILDINGS IN THE WESTERN BALKANS

→ USAID: ENHANCING CAPACITY FOR LOW EMISSIONS DEVELOPMENT STRATEGY REGIONAL PROGRAM (EC-LEDS)

→ BILATERAL TA PROJECTS (IPA/ IPA II, TWINNING , ADA, SIDA, USAID, UNDP, GIZ, …)

Page 26: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

EE COORDINATION GROUP WORK PROGRAMME 2013 – 2014

2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services >> secondary legislation, good practices and dissemination Funds and financing for energy efficiency >> mapping, analysis and dissemination Energy performance requirements/ cost- optimal level >> methodologies and software, calculation Certification of buildings and inspections of systems >> Coordinated development of certification scheme and National Control Systems Support schemes for renovation of buildings/ use of EPC/ESCOs >> existing schemes and recommendations Energy labeling >> development of by-laws, analysis of new EU regulation, market surveillance practices

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Page 27: LEGAL REFORM FOR ENERGY EFFICIENCY · 2nd NEEAP >> development, monitoring Public Sector EE Procurement >> review, identify good practices, disseminate results ESCOs and energy services

KEY MESSAGES

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IMPORTANT PROGRESS IN TRANSPOSITION OF EE

DIRECTIVES; HOWEVER, ADOPTION OF MISSING PRIMARY AND SECONDARY

LEGISLATION IS NECESSARY + FOCUS ON IMPLEMENTATION; NEEAP - FINALISATION, ADOPTION, IMPLEMENTATION AND

MONITORING (HARMONIZATION ALSO WITH LOCAL EEAPS OR SEAPs) PUBLIC SECTOR SHOULD HAVE LEADING, EXEMPLARY ROLE IN THIS PROCESS. THIS REQUIRES STRENGHTENING OF THE INSTITUTIONAL FRAMEWORK(AGENCIES, DEPARTMENTS) AS WELL AS BROADER INVOLVEMENT OF OTHER INSTITUTIONS AND MARKET PALYERS.

FINANCING NEEAPs (AND SEAPs): NATIONAL FUNDS, LOCAL AND CENTRAL BUDGET, WBIF EE WINDOW, OTHER IFIs FUNDS…

BESIDE EFFORTS ON NATIONAL LEVEL, EFFECTIVE REGIONAL COOPERATION IS EQUALLY IMPORTANT. SUPPORT ACTIVITIES BY DONOR COMMUNITY SHOULD BE UTILASED AND EQUALLY PROMOTED + EXCHANGE OF REACH EU/MSs EXPIRIENCE

TRAINING OF EXPERTS AND PROPER DEVELOPMENT OF THE ENERGY (CONSUMPTION) STATISTICS/ EE INDICATORS

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Contact:

Borko Raicevic:

[email protected]

www.energy-community.org