Implementation of the EED throughout the EU
Dr. Stefan Thomas
Felix Suerkemper
Wuppertal Institute for Climate, Environment and Energy, Germany
Energy Cities Romania Annual Conference
Brasov, 22-24 April 2015
Status of NEEAP presentation to the European Commission
by April 2015
National Energy Efficiency Action Plans (NEEAPs) were due in
June 2014!
As of 21 April:
 26 NEEAPs presented in national language (all, but HU and Sl)
 24 NEEAPs presented in English (all, but GR, HU, RO, Sl)
 Romania: not presented yet in English!
And only very recently in national language
23 April 2015
DR. STEFAN THOMAS
page 2
Wuppertal Institute
Energy Efficiency Policy:
Harness the multiple benefits
• Recent publication
by the IEA (2014):
Capturing the
Multiple Benefits of
Energy Efficiency
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page Dr. Stefan Thomas
Wuppertal Institute
Energy Efficiency Policy:
Harness the multiple benefits – some examples
 Findings by the IEA (2014) for large-scale energy efficiency programmes:
 GDP: growth rate + 0.25 to 1.1% per year
 Employment: 8 to 27 job years per EUR 1 million invested;
Romania’s Art. 4 strategy: up to 40,000 jobs from building renovation
 Public budgets: EE in buildings in the EU could bring revenues and
savings of EUR 67 to 128 billion to public budgets
 Health and well-being impacts: may quadruple economic savings
compared to energy cost savings alone
 Productivity improvements: may by worth 2.5 times the energy cost
savings alone
 Energy poverty alleviation, Etc.
 Wuppertal Institute 2014: Thailand could limit the share of energy import
costs in GDP to 20 % through energy efficiency (baseline projection:
almost 30%)
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page Dr. Stefan Thomas
Wuppertal Institute
Multiple benefits of energy efficiency:
Efficiency is cost-effective using life-cycle cost calculations
Potential costs and benefits (present values) for enterprises and consumers
per year of implementation of an illustrative portfolio of energy efficiency
programmes in Germany (would achieve Art. 7 EED targets)
Source: Wuppertal
Institute 2013
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page Dr. Stefan Thomas
Wuppertal Institute
The role of NEEAPs
Burden or Strategic Roadmap for harnessing the benefits of EE?
Good practice for content of a NEEAP (1):
 Addressing energy efficiency targets (Art. 3, 4, 7) and clear
structuring according to EED provisions
 Clear and comprehensive description of measures (incl. target
groups, timeframe and operating mode) and changes compared to
previous NEEAPs
 Clear distinction between energy efficiency measures and others
(e.g. policies to promote PV installation)
 Include action by regional and local governments and support for
these
 Description of measures taken to promote energy service markets
23 April 2015
DR. STEFAN THOMAS
page 6
Wuppertal Institute
The role of NEEAPs
Burden or Strategic Roadmap for harnessing the benefits of EE?
Good practice for content of a NEEAP (2):
 Quantification:
 Savings achieved with existing EE policies
 Baseline forecast for 2020 with existing EE policies and gap to
targets
 Presentation of new EE policies planned and savings for each
policy estimated ex ante  prove they will be closing the gap
(Basis: assessment of remaining potentials and gaps in sectoral
policy packages)
 Good Practice NEEAPs: e.g. UK, Germany, Poland
23 April 2015
DR. STEFAN THOMAS
page 7
Wuppertal Institute
The NEEAP cycle: Interplay of targets, analysis, policy design,
implementation, monitoring, and evaluation
Required Savings
(climate protection,
energy security)
Definition of quantitative
target
Revision of policy
packages and target
Definition of contributions
to be made by sectors
Evaluation of policies
and services
Potential (GWh or
CO2eq/year), technically,
economically
Implementation and
monitoring
Ex ante analysis:
implementation costs and
achievable potential
23 April 2015
DR. STEFAN THOMAS
Design of Policy Packages
per technology and sector
page 8
Wuppertal Institute
Good practice in NEEAPs
How EU Member States intend to implement Art. 7 (I)
Source: Coalition of Energy Savings 2015
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DR. STEFAN THOMAS
page 9
Wuppertal Institute
Good practice in NEEAPs
Member States compliance with EED Article 4 requirements
Source: BPIE 2014
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DR. STEFAN THOMAS
page 10
Wuppertal Institute
Good practice in implementation
Evolution of Denmark‘s savings targets for energy companies
2,4 % per year
23 April 2015
DR. STEFAN THOMAS
page 11
Wuppertal Institute
Example for a recommended sector-specific policy package:
Buildings
Source: Wuppertal
Institute, www.bigee.net
POLICY PACKAGE
for
ENERGY EFFICIENCY in BUILDINGS
Governance framework for energy efficiency
Energy efficiency targets &
planning
Energy efficiency infrastructure &
funding
Eliminating distortions
Specific policies and measures for energy efficiency in new buildings
Regulation
23 April 2015
Information
12
Incentives &
financing
Capacity
building &
networking
Promotion of
energy
services
page Dr. Stefan Thomas
RD &D and
BAT promotion
Wuppertal Institute
Energy Efficiency
Conclusions (1)
 Energy efficiency has multiple benefits. It usually is a win-win-win
option for all aspects of sustainability
 We need much more evaluation and communication of these
multiple benefits – to citizens, companies, and politicians!
 Energy efficiency will still only to a part happen by itself
- because of the manifold and strong market barriers
 Governance and policy packages for energy efficiency are needed
to tap the full potential and develop energy efficiency markets
 Evaluation shows they can achieve around 2% per year of additional
energy savings – we need more policy evaluation too
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page Dr. Stefan Thomas
Wuppertal Institute
Energy Efficiency
Conclusions (2)
How local authorities could be more strongly involved in NEEAP
implementation
 A part of the specialised fund for investments could be set aside for local
and regional governments to invest in their building stock (offices,
schools, social housing, hospitals and other types of public buildings)
 Local authorities can play an important role in developing projects among
their citizens and enterprises, in cooperation with e.g. banks and energy
(service) companies
 => A special programme in the fund to support local authorities to hire
energy efficiency (and RES) development managers,
 (net)working within their cities and villages with providers of energy
audits and installation of energy-efficient technologies etc.,
 with citizens and enterprises interested in investments, communicating
the fund's programmes,
 supporting investors in applications,
 taking care of professional training, etc.
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page Dr. Stefan Thomas
Wuppertal Institute
Thank you for your attention!
stefan.thomas@wupperinst.org
felix.suerkemper@wupperinst.org
Good practice in NEEAPs
How EU Member States intend to implement Art. 7 (II)
Source: ENSPOL 2015
23 April 2015
DR. STEFAN THOMAS
page 16
Wuppertal Institute
Why do we need governance for energy efficiency?
To overcome the plethora of barriers
 Energy efficiency = many small to medium technical improvements
 lack of oversight (where to start?),
 lack of information (both consumers and technology providers!),
 sometimes small financial gains from an improvement
 => lack of priority
 sometimes lack of funds
 split incentives between investors and users or between
technology/building providers and buyers
 => make energy efficiency easy, attractive, and eventually the default
 => policy packages with more information, practical guidance,
regulation, and financing support needed
(„the sticks, the carrots, and the tambourines“)
Source: Wuppertal
Institute
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page Dr. Stefan Thomas
Wuppertal Institute
How instruments in the sector-specific package interact:
Renovation of existing buildings
Source:
Wuppertal
Institute,
www.bigee.net
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page Dr. Stefan Thomas
Wuppertal Institute
Methodology for developing sector-specific policy packages
Actor-oriented theoretical analysis
Step 1
Analysis of actor-specific barriers
and incentives
Step 2
Developing implementation
strategies to address the barriers
and incentives
Step 3
From implementation strategies
to policy packages
The empirical proof
Step 4
Validate the resulting
‚recommended policy package‘
through empirical evidence of
which instruments advanced
countries have packaged together
PLUS: The multi-criteria
assessment scheme to
evaluate single policies: are
they ‘good practice’?
Source: Wuppertal
Institute 2012
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page Dr. Stefan Thomas
Wuppertal Institute
General Actor Constellation New Buildings
Source: Wuppertal
Institute, www.bigee.net
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page Dr. Stefan Thomas
Wuppertal Institute
How instruments in the sector-specific package interact:
New buildings
Source:
Wuppertal
Institute,
www.bigee.net
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page Dr. Stefan Thomas
Wuppertal Institute
Step 4: Validate the resulting recommended package through
empirical evidence
• As the most advanced countries show, the policy package that we derived
from our actor-centred analysis comes close to what countries have
introduced to approach very high levels of energy efficiency
Policy
California
China
Denmark
Germany
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Funds or DSM
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page Dr. Stefan Thomas
Tunisia
Wuppertal Institute