the white certificates scheme in italy: how it works
DESCRIPTION
The presentation about the white certificates scheme in Italy held at the workshop dedicated to the white certificates systems during the IEPPEC conference in Berlin.TRANSCRIPT
White certificates in Italy
Dario Di Santo, FIRE
Berlin, 8 September 2014
2
www.fire-italia.org
The Italian Federation for the Rational use of Energy is a no-profit association founded in 1987 that promotes energy efficiency, supporting energy manager, ESCOs and other companies dealing with energy. !Besides the activities directed to its nearly 450 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 manages SECEM - an accredited body - to certify the Energy management experts according to the standard UNI CEI 11339.
FIRE: the association for energy efficiency
3
www.fire-italia.org
FIRE: the association for energy efficiency
Some members of FIRE:
ABB S.p.A. - Acea S.p.A. - API - AXPO S.p.A. - Banca d'Italia - Banca Popolare di Sondrio - Beghelli S.p.A. - Bticino S.p.A. - Finlombarda S.p.A. - C.G.T. S.p.A. - Citroën Italia S.p.A. - Comune di Aosta - Comune di Padova - Comune di Savona - Comune di Venezia - Cofely S.p.A. - CONI Servizi S.p.A. - CONSIP S.p.A. - Egidio Galbani S.p.a. - ENEL Distribuzione S.p.A. - ENI S.p.A. - Ferrero S.p.A. - Fiat Group Automobiles - Fiera Milano S.p.A.- FINCO - FIPER - GSE S.p.A. - Guerrato S.p.A. - Heinz Italia S.p.A. - Hera S.p.A. - Intesa Sanpaolo S.p.A. - ISPRA - Italgas S.p.A. - Lidl Italia s.r.l. - Mediamarket S.p.A. - Nestlè Italiana S.p.A. - Newco Energia S.p.A. - Osram S.p.A. - Pirelli Industrie Pneumatici S.p.A. - Politecnico di Torino - Provincia di Cremona - Provincia di Firenze- RAI S.p.A. - Raffineria di Ancona S.p.A.- Regione Autonoma Friuli Venezia Giulia - SAGAT S.p.A. - Schneider Electric S.p.A. - Siemens S.p.A. - Siram S.p.A. - Sorgenia S.p.A. - STMicroelectronics S.p.A. - Telecom Italia S.p.A. - Trenitalia S.p.A. - Turboden S.p.A. - Università Cattolica del Sacro Cuore - Università Campus Bio-Medico di Roma - Università Cattolica Sacro Cuore-Sede Roma - Università degli studi di Genova - Università degli studi di Roma Tor Vergata - Università di Pisa - Università degli Studi di Salerno - Vodafone Omnitel N.V. - Wind Telecomunicazioni S.p.A.
Our membership include organization and professionals both from the supply and the demand side of energy efficiency services and solutions.
4
Besides being involved in many European projects, listed next, FIRE implement surveys and market studies on energy related topics, information and dissemination campaigns, and advanced training.
Some of FIRE clients over the years: Ministry of Environment, ENEA, GSE, RSE, large organizations (such as Centria, ENEL, Ferrovie dello Stato, FIAT, Finmeccanica, Galbani, H3G, Telecom Italia, Unioncamere), universities, associations, energy agencies and exhibition organizers.
SME Energy Check-Up
FIRE: the association for energy efficiency
www.fire-italia.org
White certificates
Tax deductions 50% e 65% (until 31 December 2014, then 50%)
Italian incentives for energy efficiency
Energy efficiency Thermal RES Electrical RES
RES tariffs (D.M. 6 luglio 2012)
Thermal account (D.M. 28 dicembre 2012)
Other options (Elena, Jessica, EEEF, structural funds, local funds, etc.)
CHP-DH
Fonte: FIRE.
CHP: high efficiency cogeneration DH: district heating
RES: renewable energy sources EEEF: European energy efficiency fund 5
EEO and alternative schemes for Italy
Source: Italian notification about art. 7 of EED directive.
6
WhC and 20-20-20 Programme
7
!"!!!!
!5,0!!
!10,0!!
!15,0!!
!20,0!!
!25,0!!
2005!2006!2007!2008!2009!2010!2011!2012!2013!2014!2015!2016!2017!2018!2019!2020!
Na#onal'energy'efficiency'targets'and'WhC'targets''(Mtoe'of'primary'energy'and'millions'of'cer#ficates)'
WhC!targets!as!Mtoe! WhC!targets!as!number!of!white!cerAficates!NaAonal!energy!efficiency!targets! Source:!FIRE.!
Na#onal'energy'strategy'target'as'art.'7'EED'direc#ve'
2006/32/EC'direc#ve'target'
The WhC scheme for obliged parties
8
GSE applies for WhC
Energy savings
End-user
GME
GSE
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
WhC flows cash flows relations between parties
project implementation agreement
ENEA-RSE
WhC project evaluation
Source: FIRE.
The WhC scheme for voluntary parties
9
AEEG Applies 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, ESCOs, consumers with appointed energy manager (or EMS for small and medium end-users).
Voluntary player
Voluntary company
GME market
WhC trading
Direct contracting (OTC)
WhC flows cash flows relations between parties
project implementation agreement
ENEA-RSE
WhC project evaluation
Source: FIRE.
WhC for dummies
10
DSOs with more than 50.000 clientsObliged parties (SO)
DSOs with less than 50.000 clients Companies linked to or controlled from DSOs Energy service providers SSE Companies with appointed energy manager EM Company with no EM obligation with EMS
Voluntary parties (SV)
1 WhC (also called TEE) = 1 additional toeWhC energy equivalent
5 years 8 years for building envelope related actions 10 years for high efficiency cogeneration
Duration of WhC issuing
Depends on the market (95-115 €/toe recently)WhC economic equivalent
Modalità standardizzata - deemed savings projects Modalità analitica - simplified monitoring projects Modalità a consuntivo - monitoring plan projects
Saving evaluation
Energy efficiency improvements and savingsAllowed actions
WhC for dummies
11
Type I - electricity savings Type II - gas savings Type 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 2016Duration and validity of WhC
Primary energy efficiency improvements Targets
It depends on a standard fuel mix price trend. Till now the range has been: 86.98-110.27 €/toe. It considers WhC market prices since 2014
DSO tariff reimbursement
It is the the ratio between the useful life of the project 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
A continuous improvement approach
12
D.M. 24 aprile 2001
Delibera 103/03
D.M. 20 luglio 2004
D.M. 21 dicembre 2007
D.Lgs. 115/2008
Delibera EEN 9/2011
D.M. 28 dicembre 2012
D.Lgs. 79/99
Source: FIRE.
The voluntary parties
Energy manager Energy managers are the experts dedicated to energy efficiency within an organization. To work well:
•they require the right position within the organization chart and supporting policies and procedures (the best is a ccomp l i shed under an ene rgy management system according to the ISO 50001 standard);
•their duties cover monitoring of energy consumption, energy supply, energy management, EE investment proposals.
ESCO
ESCOs are a key operator to support end-user in implementing and running EE projects:
•they of fer energy performance contracts (EPC) with third party financing (TPF);
•some of them have been able to use t h e W h C s c h e m e t o a c q u i r e competences in the industrial field and have begun offering EPC contracts also to industries.
13
Energy managers in Italy
14
RAPPORTO SUGLI ENERGY MANAGER IN ITALIA: EVOLUZIONE DEL RUOLO E STATISTICHE
2013 pagina 36 di 67
CLASSI'DI'ATTIVITÀ' 2003' 2004' 2005' 2006' 2007' 2008' 2009' 2010' 2011' 2012' 2013'
Agricoltura' !36!! !42!! !52!! !50!! !47!! !48!! !51!! !57!! !53!! !67!! !74!!
Attività'industriali' !623!! !618!! !642!! !649!! !637!! !639!! !632!! !608!! !615!! !604!! !650!!di$cui$Manifatturiere$ $620$$ $615$$ $637$$ $645$$ $632$$ $632$$ $624$$ $599$$ $614$$ $591$$ $600$$
Energia'e'servizi'a'rete'(*)' !179!! !168!! !174!! !174!! !176!! !305!! !328!! !292!! !299!! !316!! !323!!
Civile'(Residenze'e'Servizi)' !852!! !891!! !900!! !830!! !836!! !727!! !790!! !758!! !726!! !728!! !786!!di$cui$nella$P.A.$ $222$$ $231$$ $225$$ $190$$ $190$$ $180$$ $187$$ $153$$ $161$$ $165$$ $201$$
Trasporti' !332!! !364!! !357!! !359!! !374!! !411!! !418!! !408!! !409!! !412!! !385!!TOTALE' '2.022'' '2.083'' '2.125'' '2.062'' '2.070'' '2.130'' '2.219'' '2.123'' '2.102'' '2.127'' '2.218''(*)$Dal$2008$le$attività$del$ciclo$dei$rifiuti$sono$state$spostate$dal$settore$civile$al$settore$delle$industrie$con$servizi$a$rete.$
Nota$aggiuntiva:$I$dati$indicati$comprendono$i$responsabili$locali$nominati$dalle$aziende$multisito.$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$Fonte:!FIRE.!
Tabella 3. Andamento delle nomine compresi soggetti obbligati. 2003 dati provvisori. Fonte: FIRE
EM'OBBLIGATI'TOTALI'
PRIMARI! LOCALI! TOTALI!!1.685!! !416!! !2.101!!
EM'OBBLIGATI'ENTRO'30/4'PRIMARI!! LOCALI! TOTALI!
!1.531!! !399!! !1.930!!
EM'OBBLIGATI'IN'RITARDO'PRIMARI! LOCALI! TOTALI!
!154!! !17!! !171!!
EM'NON'OBBLIGATI'PRIMARI! LOCALI! TOTALI!
!533!! !102!! !635!!
EM'TOTALI'PRIMARI! LOCALI! TOTALI!
!2.218!! !518!! !2.736!!Tabella 4. Energy manager nominati nel 2013. Dati provvisori sui non obbligati. Fonte: FIRE.
RAPPORTO SUGLI ENERGY MANAGER IN ITALIA: EVOLUZIONE DEL RUOLO E STATISTICHE
2013 pagina 36 di 67
CLASSI'DI'ATTIVITÀ' 2003' 2004' 2005' 2006' 2007' 2008' 2009' 2010' 2011' 2012' 2013'
Agricoltura' !36!! !42!! !52!! !50!! !47!! !48!! !51!! !57!! !53!! !67!! !74!!
Attività'industriali' !623!! !618!! !642!! !649!! !637!! !639!! !632!! !608!! !615!! !604!! !650!!di$cui$Manifatturiere$ $620$$ $615$$ $637$$ $645$$ $632$$ $632$$ $624$$ $599$$ $614$$ $591$$ $600$$
Energia'e'servizi'a'rete'(*)' !179!! !168!! !174!! !174!! !176!! !305!! !328!! !292!! !299!! !316!! !323!!
Civile'(Residenze'e'Servizi)' !852!! !891!! !900!! !830!! !836!! !727!! !790!! !758!! !726!! !728!! !786!!di$cui$nella$P.A.$ $222$$ $231$$ $225$$ $190$$ $190$$ $180$$ $187$$ $153$$ $161$$ $165$$ $201$$
Trasporti' !332!! !364!! !357!! !359!! !374!! !411!! !418!! !408!! !409!! !412!! !385!!TOTALE' '2.022'' '2.083'' '2.125'' '2.062'' '2.070'' '2.130'' '2.219'' '2.123'' '2.102'' '2.127'' '2.218''(*)$Dal$2008$le$attività$del$ciclo$dei$rifiuti$sono$state$spostate$dal$settore$civile$al$settore$delle$industrie$con$servizi$a$rete.$
Nota$aggiuntiva:$I$dati$indicati$comprendono$i$responsabili$locali$nominati$dalle$aziende$multisito.$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$Fonte:!FIRE.!
Tabella 3. Andamento delle nomine compresi soggetti obbligati. 2003 dati provvisori. Fonte: FIRE
EM'OBBLIGATI'TOTALI'
PRIMARI! LOCALI! TOTALI!!1.685!! !416!! !2.101!!
EM'OBBLIGATI'ENTRO'30/4'PRIMARI!! LOCALI! TOTALI!
!1.531!! !399!! !1.930!!
EM'OBBLIGATI'IN'RITARDO'PRIMARI! LOCALI! TOTALI!
!154!! !17!! !171!!
EM'NON'OBBLIGATI'PRIMARI! LOCALI! TOTALI!
!533!! !102!! !635!!
EM'TOTALI'PRIMARI! LOCALI! TOTALI!
!2.218!! !518!! !2.736!!Tabella 4. Energy manager nominati nel 2013. Dati provvisori sui non obbligati. Fonte: FIRE.
Slight increase of appointed
energy managers along the years.
Public administration non
compliant.
Energy management expert (EGE)
15
EGE: expert energy manager that can be certified under an accredited scheme in Italy (according to standard UNI CEI 11339).
Energy manager ESCO
Energy auditor Consultant
EGE
ESCOs
16
EE technologies suppliers Banks
End-user
ESCO
TPF through ESCO
ESCOs offer: energy performance contracts; third party financing (TPF); integrated energy service.
EE saving
Fonte: FIRE
TPF through banks
Energy bill savings Financing Service fee Energy service
EPC, energy performance contract
17
Source: FIRE.Source: FIRE.
WhC: from general ESPCOs to ESCOs
18
EPC+TPF+integrated approach
ESPCOs within WhC
50-100
≈3.000
UNI CEI 11352:2014
UNI CEI 11352 is the Italian standard to
certify ESCOs.
Additional savings
19
Consumption baseline: ex-ante consumption, market average or mandatory standard
Ener
gy c
onsu
mpt
ion
ex-ante consumption
ex-post consumption
Counted savings in WhC scheme
Uncounted savings in WhC scheme
Time
Source: FIRE.
The tau coefficient
20
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"
WhC lifespan
Technology lifespan
2% annual discount
Minimum project dimension
21
Minimum dimension required to present a project
Possibility to join different actions in one project
Number of involved clients Homogenous methods Non homogenous methods
Single client Deemed savings Engineering estimates Monitoring plans Monitoring plans
Many clients Deemed savings Engineering estimates Monitoring plans Not allowed
Project evaluation method Global savings (with tau)
Deemed savings 20 toe
Engineering estimates 40 toe
Monitoring plans 60 toe
Saving evaluation methods
22
Deemed savings projects (progetti standard): 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. The proponent presents an RVC once.
Simplified monitoring projects (progetti analitici): the saving is evaluated with respect to some measured quantities through a dedicated algorithm defined in a dedicated file. Required meters are also indicated in the dedicated file. The proponent presents an RVC at least once a year.
Monitoring plan projects (progetti a consuntivo): 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 PPPM and approved from GSE (with ENEA-RSE). After the PPPM is accepted the proponent will get WhC by presenting an RVC at least once a year.
Saving evaluation method
Deemed savings !Engineering estimates !Monitoring plan
PPPM
D.S. file
E.E. file
RVC: Request to verify and certify the savings PPPM: Project proposal and M&V procedure
Monitoring plans 2005-‐2007:
≈10% 2013: 82%
“Grandi progetti”
D.M. 28 dicembre 2012 introduced also the so called “Grandi progetti” that is large projects with more than 35 ktoe of annual savings.
These projects, which should be infrastructural and have a technical life of more than 20 years, follow a different approval procedure.
These projects grant two advantages:
a multiplier of the savings up to 50% depending on the amount of the annual savings, the sector (higher within metropolitan areas), and the innovation and CO2 reduction levels;
the possibility to opt for a fixed price tariff based on the WhC market price.
23
Art. 10, comma 1: “Per gli interventi infrastrutturali, anche asserviti a sistemi di risparmio energetico, trasporti e processi industriali che comportino un risparmio di energia elettrica o di gas stimato annuo superiore a 35.000 tep e che abbiano una vita tecnica superiore a venti anni, il proponente richiede al Ministero dello sviluppo economico l'attivazione della procedura di valutazione, ai fini dell'accesso al meccanismo dei certificati bianchi, presentando il progetto di intervento”.
Presenta PPPM
Entro 120 giorni al massimo esprime parere sulla proposta, definisce il sistema di misura e
i TEE rilasciabili
Soggetto proponente (progetto con R> 35 ktep)
Fonte figura:
MSE
• Di concerto col MATTM;
• Acquisito il parere della
regione interessata;
• Col supporto tecnico di
GSE, ENEA, RSE.
In questo tipo di progetti entra direttamente in gioco il Ministero delle Sviluppo Economico.
In accordance with M i n i s t r y o f e n v i r o n m e n t a n d involved Region. With GSE, ENEA and RSE technical support
Within 120 days defines the saving assessment procedure and the WhC
Presents PPPM Project proponent (more than 35 ktoe)
Time chart
Action Implementation
RVC presentation RVC
approved by GSE
!WhC issued !
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)
24
Some infographics
72% WhC coming from ESP
25% WhC coming from companies with energy manager
Target 2013-‐2016:
from 5.5 to 9.5 Mln WhC
82% WhC from monitoring plans
in 2013
6.7 Mln of WhC issued in
2013
50% natural gas savings
25% electricity 25% other fuels
Weighted average price on market
30
45
60
75
90
105
120
2005 2007 2009 2011 2013
28 Mln WhC issued from the start to 31
May 2014
tau from 1 to 4.58
Industrial projects were 80% in 2013
Source: FIRE.
63 obliged DSOs 508 companies
presented projects in 2013
25
Tariff recovery for
DSOs from 86 to 110 €/toe over
the years
Breakdown of WhC issued in 2013
26
0"
100.000"
200.000"
300.000"
400.000"
500.000"
600.000"
700.000"
800.000"
900.000"
1.000.000"
0"
500.000"
1.000.000"
1.500.000"
2.000.000"
2.500.000"
3.000.000"
3.500.000"
4.000.000"
4.500.000"
5.000.000"
2006" 2007" 2008" 2009" 2010" 2011" 2012" 2013"
Savings(related(to(new(projects((toe)(
Total(savings((toe
)(
Breakdown(of(issued(WhC(by(saving(evalua?on(methodology(
Deemed"savings"projects" Simplified"monitoring"projects" Monitoring"plan"projects"New"deemed"savings"projects" New"simplified"monitoring"projects" New"monitoring"plan"projects"
Source:"FIRE"on"GSE"data."Source:"FIRE"on"GSE"data."
Breakdown of WhC issued in 2013
48%$
22%$
8%$
5%$
5%$
5%$
2%$5%$
Breakdown*of*WhC*issued*in*2013*
IND*T$Heat$genera3on$and$recovery$for$industrial$processes$
IND*FF$Other$industrial$energy$efficiency$solu3ons$
CIV*T$Hea3ng$,$air$condi3oning$and$DHW$produc3on$for$agricolture$and$civil$sector$
IND*E$Drive$systems$(engines,$inverters,$etc.),$automa3on$and$power$factor$correc3on$
IND*GEN$Electricity$genera3on$and$recovery$for$industrial$processes$
CIV*FC$Building$envelope$
IPRIV*RET$Ligh3ng$for$exis3ng$private$end*users$buildings$
Other$
Source:$FIRE$on$GSE$data.$
Industrial projects in 2013: 80%
27
Simplified evaluation procedures: industry
28
# Solution File type Unit Requested units per toe
7T Photovoltaics under 20 kW DS kW 1-‐2
9T Inverters for pumping systems DS kW 1-‐16
16T Inverters for pumping systems over 22 kW SMP -‐ -‐
30E Electric motors IE3 DS kW 9-‐135
31E Inverters for compressed air SMP -‐ -‐
33E Power factor correction for motors DS Motor 1-‐189
34E Mechanical steam recompression systems SMP -‐ -‐
35E Industrial coolers SMP - -
36E UPSs DS kVA 2-‐36
For deemed savings projects (DS) a range is present since the values depend on some variables, such as the number of working shifts, the weather zone, the power range, etc. Per le schede analitiche è impossibile indicare dei valori. For simplified monitoring projects (SMP) no values are indicated, since they depend on the application of the saving algorithm to the indicated variables (e.g. fuel consumption, heat demand, etc).
Simplified evaluation procedures: civil
29
# Solution File type Unit Requested units
per toe2T Electric DHW heaters -‐> gas DHW heaters DS Boiler 53T High efficiency boilers for single apartments DS Boiler 3-‐274T High efficiency DHW DS Boiler 65T Double glazing windows DS m 13-‐1726T Wall and roof insulation DS m 27-‐1.1457T Photovoltaics under 20 kW DS kW 1-‐28T Solar thermal for DHW DS m 2-‐810T Natural gas decompression SMP - -15T Air to air heat pumps DS Apartment 1-‐2219T Air conditioners under 12 kW DS kW 99-‐22220T Wall and roof insulation for cooling DS m 430-‐1.71822T District heating SMP - -26T Centralized cooling systems SMP - -27T DHW heat pumps DS Heat pump 3-‐632E Inverters for HVAC systems SMP - -36E UPSs DS kVA 2-‐3637E Biomass boilers for single apartment DS Apartment 1-‐538E Building automation systems DS m 105-‐1.573Please refer to the note in the previous slide.
Monitoring plans: the main results from 2005 to 2013 FIRE conducted on behalf of ENEA a deep analysis of the PPPMs presented from the beginning of the WhC scheme till July 2012 (Tomassetti et al. 2013). The reasons behind the study were the lack of information about PPPMs, mainly due to the structure of the proposals database (DB). The DB in fact was not structured in order to make an automatic analysis of PPPMs feasible. To help evaluating PPPMs GSE is presently working on a improvement of the DB, but the process will require some time. Thus, in order to obtain more information about the PPPMs projects ENEA commissioned a first survey to cover PPPMs presented between 2005 and July 2012. Due to the poor structure of the PPPM database, FIRE had to create a new excel database in order to breakdown the information included in the DB and be able to confront and analyse the content. The results, which are not easy to summarise, are available in (Tomassetti et al. 2013). Here a synthesis is provided. Proponents Number of
presented PPPMs Total expected savings (ktoe)
Average project size (toe)
ESCOs and consultants 524 924 1,700 EMs 47 396 8,000 DSOs 36 30 800 Total 607 1,350 2,225 Table 1. Breakdown of presented PPPMs (2005-2012) by proponent.
Table 1 shows that ESCOs play the main role in presenting PPPMs, with an 86% quota. Projects presented by companies with an appointed energy manager (EMs) are larger, with an average size of 8,000 toe. This suggests that the end-user company prefers to act directly only when the forecasted cash flow is quite high and it is considered convenient to train their personnel to act without the involvement of an ESCO or a DSO. There are nevertheless EMs that presented directly the project, but asked for the support of an ESCO or consultant to prepare it. This confirms the complexity of the PPPM procedure and the need of information and training activities aimed at facilitating the preparation of a proposal.
Figure 9. Sector and technology breakdown in terms of presented PPPMs.
The sector breakdown shows a wide application, with all the energy intensive sectors represented. Petrochemical, building materials and agro-food are characterised by larger project sizes. The technology breakdown shows an homogeneous situation, with most of the available solutions presented. Energy efficiency involving heat consumption tends to have a larger project size, as it can be expected.
STEEL%METALLURGICAL%
PETROCHEMICAL%PHARMACEUTICAL%
CHEMISTRY%
BUILDING%MATERIALS%
AGRO4FOOD%
ENERGY%/%SERVICES%/%WASTE%TREATMENT%
RESIDENTIAL%COMMERCIAL%
GLASS%
PAPER%AND%PRINTING% ICT%
AUTOMOTIVE%MECHANICS%WOOD%
TEXTILE%AND%TANNING%
Sector'breakdown'for'number'of'PPPMs'
Source:%FIRE.%
Energy%efficiency%heat%19%%
�Energy%efficiency%electricity%
28%%%
Heat%recovery%15%%
%CogeneraRon%
17%%
Use%of%biomass%6%%
Solvent%treatment%1%%
Civil%sector%technologies%
14%%
PPPM'technology'breakdown''
Source:%FIRE.%
Monitoring plans: the main results from 2005 to 2013 FIRE conducted on behalf of ENEA a deep analysis of the PPPMs presented from the beginning of the WhC scheme till July 2012 (Tomassetti et al. 2013). The reasons behind the study were the lack of information about PPPMs, mainly due to the structure of the proposals database (DB). The DB in fact was not structured in order to make an automatic analysis of PPPMs feasible. To help evaluating PPPMs GSE is presently working on a improvement of the DB, but the process will require some time. Thus, in order to obtain more information about the PPPMs projects ENEA commissioned a first survey to cover PPPMs presented between 2005 and July 2012. Due to the poor structure of the PPPM database, FIRE had to create a new excel database in order to breakdown the information included in the DB and be able to confront and analyse the content. The results, which are not easy to summarise, are available in (Tomassetti et al. 2013). Here a synthesis is provided. Proponents Number of
presented PPPMs Total expected savings (ktoe)
Average project size (toe)
ESCOs and consultants 524 924 1,700 EMs 47 396 8,000 DSOs 36 30 800 Total 607 1,350 2,225 Table 1. Breakdown of presented PPPMs (2005-2012) by proponent.
Table 1 shows that ESCOs play the main role in presenting PPPMs, with an 86% quota. Projects presented by companies with an appointed energy manager (EMs) are larger, with an average size of 8,000 toe. This suggests that the end-user company prefers to act directly only when the forecasted cash flow is quite high and it is considered convenient to train their personnel to act without the involvement of an ESCO or a DSO. There are nevertheless EMs that presented directly the project, but asked for the support of an ESCO or consultant to prepare it. This confirms the complexity of the PPPM procedure and the need of information and training activities aimed at facilitating the preparation of a proposal.
Figure 9. Sector and technology breakdown in terms of presented PPPMs.
The sector breakdown shows a wide application, with all the energy intensive sectors represented. Petrochemical, building materials and agro-food are characterised by larger project sizes. The technology breakdown shows an homogeneous situation, with most of the available solutions presented. Energy efficiency involving heat consumption tends to have a larger project size, as it can be expected.
STEEL%METALLURGICAL%
PETROCHEMICAL%PHARMACEUTICAL%
CHEMISTRY%
BUILDING%MATERIALS%
AGRO4FOOD%
ENERGY%/%SERVICES%/%WASTE%TREATMENT%
RESIDENTIAL%COMMERCIAL%
GLASS%
PAPER%AND%PRINTING% ICT%
AUTOMOTIVE%MECHANICS%WOOD%
TEXTILE%AND%TANNING%
Sector'breakdown'for'number'of'PPPMs'
Source:%FIRE.%
Energy%efficiency%heat%19%%
�Energy%efficiency%electricity%
28%%%
Heat%recovery%15%%
%CogeneraRon%
17%%
Use%of%biomass%6%%
Solvent%treatment%1%%
Civil%sector%technologies%
14%%
PPPM'technology'breakdown''
Source:%FIRE.%
30
PPPMs breakdown (FIRE-ENEA analysis 2005-2012)
Figure 11. The ten larger projects presented from 2005 to 2012.
Figure 12. Comparison between expected and effective savings.
From a more detailed analysis, the greatest variation between the expected and the effective savings was found in the predictions of thermal efficiency (Table 2) and three typical situations have been identified, as shown in Figure 12. Case 1 refers to projects in sectors that were affected by the financial crisis, such as building materials and the manufacturing industry. After an initial increase of the savings, the reduction of the production determined a reduction in the savings, mostly due to the rising weight of fixed costs. Process modifications, like the ones included in Case 2, showed a continuous rise of the savings, most probably due to the step by step improvement of the projects settings, strictly linked to the industrial process11. The last case refers to typical horizontal solutions, such as lighting, heating, and
11 Lines in Errore. L'origine riferimento non è stata trovata. are indicative, since it was impossible and meaningless to build an average curve.
87#
28#
25#
24#
23#
22#
22#
20#
18#
0# 5# 10# 15# 20# 25# 30# 35# 40# 45# 50# 55# 60# 65# 70# 75# 80# 85# 90# 95# 100#
blast#furnace#(steel)#
hot#rolling#(steel)#
annealing#furnace#(steel)#
regenera=ve#burners#(steel)##
oxygen#produc=on#onCsite#(steel)##
gas#cogenera=on#for#district#hea=ng#(energy#produc=on)#
CCCG#(petrolchemical)#
CCCG#(rubber#and#plas=c)#
heat#recovery#for#electricity#produc=on#(chemical)#
heat#recovery#(petrolchemical)#
Savings([ktoe/year](
Larger(projects([ktoe/year](
Source:#FIRE.#
C>#200#
Source: FIRE
31
PPPMs breakdown (FIRE-ENEA analysis 2005-2012)
Case 1: e.g. building materials, manufacturing industry
Case 2: e.g. furnace glass, membranes, RDF
Case 3: e.g. lighting, heating, cooling
Expected
Effective
Expected
Effective
EffectiveExpected
Savings correlated with the market
Savings correlated with the solution learning curve
Constant saving (weather related)
32
Difference between PPPM and RVC savings: 1.4%
electricity, -‐8.3% gas, 16.6% fuels
PPPMs breakdown (FIRE-ENEA analysis 2005-2012)
FIRE analysis on 2005-2012 PPPMs commissioned by ENEA
33
the Italian scheme, a result that was expected when the scheme was designed, but that became a fact not as a consequence of having initially limited the presentation of WhC project to energy service providers9, but of having an interesting economic return coupled with the complexity of the PPPMs10.
Figure 7. EIWhC for the 47 PPPMs that report the investment costs.
Figure 8. EIWhC for the most indicative sectors, with at least 20% of PPPMs with the CAPEX indicated.
9 Companies with energy manager were admitted only at the end of 2007. 10 Were it easy to present a PPPM, the role of EMs would have been the prominent one, whereas ESPs represent around 70% of the market even nowadays.
0"
50.000"
100.000"
150.000"
200.000"
250.000"
0%"
50%"
100%"
150%"
200%"
250%"
300%"
350%"
400%"
450%"
1" 2" 3" 4" 5" 6" 7" 8" 9" 10"11"12"13"14"15"16"17"18"19"20"21"22"23"24"25"26"27"28"29"30"31"32"33"34"35"36"37"38"39"40"41"42"43"44"45"46"47"
WhC$earnings$/$capex$WhC$cash$flow$are$discounted$at$5%$on$the$5$year$incen9ve$lifespan$
WhC"earnings"/capex" Average" toe"
0%#
5%#
10%#
15%#
20%#
25%#
30%#Cement#
Steel#
Electronics#
Glass#
Average'WhC'earnings'/'CAPEX'ra2o'(sectors'for'which'CAPEX'is'reported'at'least'in'20%'of'PPPMs)'
the Italian scheme, a result that was expected when the scheme was designed, but that became a fact not as a consequence of having initially limited the presentation of WhC project to energy service providers9, but of having an interesting economic return coupled with the complexity of the PPPMs10.
Figure 7. EIWhC for the 47 PPPMs that report the investment costs.
Figure 8. EIWhC for the most indicative sectors, with at least 20% of PPPMs with the CAPEX indicated.
9 Companies with energy manager were admitted only at the end of 2007. 10 Were it easy to present a PPPM, the role of EMs would have been the prominent one, whereas ESPs represent around 70% of the market even nowadays.
0"
50.000"
100.000"
150.000"
200.000"
250.000"
0%"
50%"
100%"
150%"
200%"
250%"
300%"
350%"
400%"
450%"
1" 2" 3" 4" 5" 6" 7" 8" 9" 10"11"12"13"14"15"16"17"18"19"20"21"22"23"24"25"26"27"28"29"30"31"32"33"34"35"36"37"38"39"40"41"42"43"44"45"46"47"
WhC$earnings$/$capex$WhC$cash$flow$are$discounted$at$5%$on$the$5$year$incen9ve$lifespan$
WhC"earnings"/capex" Average" toe"
0%#
5%#
10%#
15%#
20%#
25%#
30%#Cement#
Steel#
Electronics#
Glass#
Average'WhC'earnings'/'CAPEX'ra2o'(sectors'for'which'CAPEX'is'reported'at'least'in'20%'of'PPPMs)'
Data, being faculta_ve, are not
reliable and currently an inves_ga_on is being done on this
issue.
PPPM presentation trend
14#
33#
47#
0#
5#
10#
15#
20#
25#
30#
35#
40#
45#
50#
2005)2010# 2011# 2012#(incomplete)#
Monthly#average#PPPM#proposals#
Source: FIRE on AEEGSI data.
34
The evaluation effort can rise
theory rapidly. Be ready to manage
it!
PPPM: cement industry example
35!
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.
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.
36
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 and are published on the website www.efficienzaenergetica.enea.it.
PPPM: cement industry example
Source: ENEA-FIRE study on PPPM in the cement industry.
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.
37
PPPM: cement industry example
Source: ENEA-FIRE study on PPPM in the cement industry.
38
PPPM: cement industry example
Source: ENEA-FIRE study on PPPM in the cement industry.
39
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.
PPPM: cement industry example
Source: ENEA-FIRE study on PPPM in the cement industry.
40
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.
PPPM: cement industry example
Source: ENEA-FIRE study on PPPM in the cement industry.
41
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.
PPPM: cement industry example
Source: ENEA-FIRE study on PPPM in the cement industry.
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.
42
PPPM: cement industry example
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.
!
43
PPPM: some considerations
0"
10"
20"
30"
40"
50"
60"
70"
80"
90"
100"
110"
120"
130"
140"
150"
07/03/06"
16/05/06"
25/07/06"
24/10/06"
16/01/07"
27/03/07"
05/06/07"
28/08/07"
06/11/07"
29/01/08"
08/04/08"
17/06/08"
09/09/08"
18/11/08"
17/02/09"
28/04/09"
01/07/09"
22/09/09"
01/12/09"
02/03/10"
11/05/10"
20/07/10"
19/10/10"
11/01/11"
22/03/11"
31/05/11"
30/08/11"
15/11/11"
07/02/12"
17/04/12"
31/05/12"
07/08/12"
06/11/12"
05/02/13"
16/04/13"
25/06/13"
17/09/13"
03/12/13"
04/03/14"
13/05/14"
22/07/14"
WhC
's&price&(Euro)&
Market&session&data&
WhC&market&price&trend&
"May"31st"session"" "DSO's"reimbursement"" "Type"III"" "Type"II"" "Type"I""
Source:"FIRE"evaluaIon"based"on"GME"data"
WhC oversupply
WhC shortage
44
WhC market price trend
45
WhC: issued certificates VS targets
!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"31"July"2014)"
Primary%energy%saving%targets%(ktoe)%EsAmated%available%WhC%based%on%projects%presented%in%the%previous%years%Issued%WhC%from%June%1st%to%May%31st%(ktoe)%Eccess%%or%missing%WhC%(ktoe)%(issuedWhC!targetWhC)/targetWhC%(%)%
Source:%FIRE%based%on%GME%data%
*%Provisional%data.%
Main challenges: Since 2014 only new projects can be presented (the PPPM shall be presented before the the energy efficiency action comes into operation). In 2016 the sum of the increasing target and of the end of the previous WhC lifecycle will sum up to almost 4 Mtoe.
Conclusions
Fonte: “RAEE 2012”, ENEA.
It works!
The most important lesson learnt is that such a scheme can not born perfect, but it needs continuos care and also some imperfections should be accepted during transitions.
46
Conclusions: by dealing with complex proposals ESPs learn much about industrial processes and they can replicate best prac_ces; knowledge and money allow some ESP to become a real ESCO with EPC and TPF for industrial process projects; effec_ve promo_on of EE projects in industry; limited mechanism cost (433 euro/5x2.5 toe=35 euro/toe).
The IEE Enspol project
The IEE ENSPOL project’s main aim is to support member states who intend to set up new EEO schemes or implement alternative measures, as well as inform about the on-going development of existing schemes, and support member states with an existing EEO scheme to improve it, learning from and building on existing experiences.
The specific objectives of ENSPOL are to: Assess the relative strengths and weaknesses of EEOs and alternative measures based on the existing experiences and plans of member states and make recommendations for the most appropriate approaches against different criteria and under different conditions. Improve the knowledge and capabilities of member states (both within and outside of the project) with regards to the different options available for implementation of Article 7 (EEOs and alternative measures). Ensure the effective engagement of the broad range of stakeholders with an interest in the implementation of Article 7 and promote a wide consultation at European level. 4.Complement and enhance the work of existing EU and member states initiatives concerned with the implementation of Article 7 EED.
The Enspol project has just started up and will go on till 2016.
47
Partners: JIN (NL) ABEA (BG) ADEME (FR) AEA (AT) CRES (GR) DEA (DK) EST (UK) FIRE (IT) KAPE (PL) OUCE (UK) SEI (UK) UPRC (GR) VITO (BE)
More information at: www.enspol.eu
Contract N°: IEE/13/824/SI2.675067
Thank you!
www.facebook.com/FIREenergy.manager
www.linkedin.com/company/fire-federazione-italiana-per-l'uso-razionale-dell'energia
www.twitter.com/FIRE_ita
For����������� ������������������ more����������� ������������������ information����������� ������������������ about����������� ������������������ our����������� ������������������ activities����������� ������������������ ����������� ������������������ visit����������� ������������������ our����������� ������������������ web����������� ������������������ site!����������� ������������������
www.dariodisanto.com