mag I N T E L L I G E N T E N E R G Y E U R O P E FOR A SUSTAINABLE FUTURE N°3 - OCTOBER 2011 3 Renewable energy A new era 9 IN THEIR OWN WORDS EU Directive triggers industry investment in renewables 10-11 MANAGER & MANAGED PV Legal 14-15 COUNTRY PROFILE Plotting paths for renewables MAGAZINE O F T H E I N T E L L I G E N T E N E R GY- E U R O P E P R OG R A M M E N°3 - OCTOBER 2011 B Y M A R I E D O N N E L LY EDITORIAL Director at DG Energy Renewable energy is the focus for this issue of the Intelligent Energy – Europe magazine. There are many renewable energy projects within the IEE programme, though the ones you can read about in this issue’s lead feature have been chosen because they have “We’re making good progress and the goal is likely to be met.” had a particularly high impact. IEE project partners from across the European Union are together helping achieve I N T E L L I the Union’s over-riding goal: to boost renewable energy’s share of the EU’s final gross energy consumption to at least 20% by 2020. Happily we’re making good progress and the goal is likely to be met. If it is, I’m sure the IEE’s contribution will have been substantial. E N E R G Y You’ll see in the lead feature how the foundation has been laid to enable renewable technologies to roll out across the EU. Offshore energy and biomass are examined in some detail. Elsewhere, in the regular ‘manager and managed’ section, there are interviews with E U R those responsible for the PV Legal project. Photovoltaic energy has enormous potential but is being held back in certain countries by unnecessary bureaucracy. The PV Legal team has compiled a comprehensive database on the remaining administrative obstacles. How much bureaucracy is required for a rooftop installation in your country? The country profile section in this issue puts the spotlight on solar, biomass and hydropower in Germany and Poland. FOR A SUSTAINA There is also a special focus on energy services companies and related energy performance contracts – solutions for financing energy efficiency and renewable energy in both the public and private sectors. Enjoy the issue! Marie Donnelly, Director for new and renewable sources of energy, energy efficiency & innovation, European Commission’s Directorate-General for Energy PAGE 2 / N°3 - OCTOBER 2011 ec.europa.eu/intelligentenergy THE INTELLIGENT ENERGY-EUROPE mag MAGAZINE ISSUE NUMBER 3 Table of contents Editorial Lead feature Renewable energy, a new era 4-7 On the ground Rethinking renewable energy 8 In their own words EU Directive triggers industry investment in renewables 9 4 Manager & Managed PV Legal 10-11 Focus on Get others to do the hard work 12-13 Country profile Plotting paths for renewables 14-15 On the ground Training makes the difference 16 On the ground European energy inspiration 17 On the ground The energy of the sun powers our world 18 mag 12 2 I N T E L L I G E N T E N E R G Y E U R O P E FOR A SUSTAINABLE FUTURE N°3 - OCTOBER 2011 3 Renewable energy A new era 8 10 Photos: P. 5: © iStockphoto/Teun van den Dries. P. 6: © iStockphoto/Roberto Gennaro. P. 8: © juwi Holding AG; © Fiona Ball; © juwi Holding AG. P. 10: © iStockphoto/Pedro Castellano. P. 11: © iStockphoto/Fabio Ficola. P. 12: © Berlin Energy Agency. P. 13: © iStockphoto/ seewhatmitchsee. P. 14: © Piotr Kubiesa and Włodzimierz Łukasik. P. 14-15: © Energietag Baden-Württemberg, Ingo Bartussek, guukaa. P. 16: © Shell; © Shell; © Petras Ruzgus. P. 17: © Toyota Motor Europe; © Claudia Julius. P. 18: © SaaS; © Torresol Energy; © sostenible.cat. The responsibility for the content of this publication lies with the authors; it does not necessarily reflect the opinion of the European Union. The EACI is not responsible for any use that may be made of the information contained herein. The information contained is given for information purposes only and does not legally bind any of the parties involved. Editors: Andrea Pascal and Cindy Carolle, EACI 9 IN THEIR OWN WORDS EU Directive triggers industry investment in renewables 10-11 MANAGER & MANAGED PV Legal 14-15 COUNTRY PROFILE Plotting paths for renewables © European Union, 2011 More details on the IEE programme can be found at ec.europa.eu/intelligentenergy N°3 - OCTOBER 2011 / PAGE 3 RENEWABLE ENERGY LEAD FEATURE Renewable energy A new era The Intelligent Energy –Europe programme aims to help the European Union meet its 2020 renewable energy target with projects that remove barriers, improve market transparency and mobilise investment. When it comes to climate change, targets usually grab the headlines. How ambitious should our carbon dioxide reduction targets be? Should targets be voluntary or mandatory? What you seldom see in the mainstream press is coverage of exactly how these targets are met. How does the European Union turn these fine words into action? The target set out in the Renewable Energy Directive of 2009 – that renewable energy should make up at least 20% of the EU’s final gross energy consumption by 2020 – is a case in point. If Europe meets this target – an increasingly likely eventuality – it will be thanks to a flurry of activity in the EU institutions and in the Member States, almost all of which is out of the public eye. The Intelligent Energy – Europe Programme helps bridge the gap between the target and the reality on the ground. IEE projects are bringing together key market players like governments, local authorities, SMEs and industry with the grand aim of accelerating the growth of the RES market in Europe, an increasingly significant market in terms of investment and jobs created. IEE projects are designed to give momentum to the Renewable Energy Directive: Member States had to come up with a National Renewable Energy Action Plan (NREAP) by the PAGE 4 / N°3 - OCTOBER 2011 end of June 2010: now they have to implement Intelligent Energy – Europe targets all lay- these action plans. IEE projects help them ers of government and society. Through while at the same time improving the efficiency Concerted Actions, like CA-RES, respon- of markets and mobilising investments. sible authorities in Member States work together to find the most effective ways to The Intelligent Energy – Europe Programme helps bridge the gap between the target and the reality on the ground. implement EU Directives. “Together with the Commission, participants from 30 countries meet informally twice per year to exchange best practices and to find common solutions for implementing the Renewable Energy Directive,” says EACI project officer María Laguna. On a local level, another IEE project, Polis, aims to boost solar energy in six cities (Paris, Lisbon, Munich, Vitoria, Lyon and Malmo) by bringing together architects, urban planners and energy policy-makers. “Sometimes these professions have different priorities,” says María (who is also For example, REPAP2020 connects European Parliamentary policy-makers and industry with the aim to facilitate the implementation of the Renewable Energy Directive. Initially, the project supported the relevant authorities by offering good advice on the development of the NREAPs; more recently, an independent and detailed assessment of these action the project officer for Polis). “They need to integrate solar criteria into city plans, and into tender procedures for city rehabilitation projects. Energy needs to be included at the beginning of the planning stage.” “We are not just talking about active solar potential, but also about passive solar potential,” adds project coordinator Sigrid plans has been carried out by the project Linder. South-facing buildings generate less team: “Positive outlooks but more is needed heating demand in winter, while heat gains on support schemes. It’s important that the can be reduced in summer with proper plans are followed by actions from today shading devices. While to decree that all onwards”, are the main conclusions of this buildings must have south-facing windows study, says Jan Geiss, EUFORES Secretary would be impractical, town planners are General. being urged to keep the concept in mind. RENEWABLE ENERGY Building offshore Grids in the Northern Seas of Europe – what should the grid look like? “The cable length between the wind farm and the shore has a huge impact on cost,” says Jan De Decker, project coordinator for the IEE project Offshore Grid. The Offshore Grid project examined the various options for connecting offshore wind farms to the electricity grid. Project partners looked at the technical and economical challenges, the policy aspects and the required regulation. The result is a set of recommendations considered so thoroughly researched that the European Commission has adopted them. “Governments should favour hubs [of wind farms], and hubs should be developed at the same time,” says Jan. Large zones of wind farms are preferable to numerous smaller zones. The project examined the relative merits of connecting wind farms to interconnectors, the power lines that ensure security of supply between countries and allow them to trade. While this can lead to cable length savings, it restrains trading capacity between national markets when there is wind. “Attaching wind farms to interconnectors can be beneficial, though this is not always the case,” says Jan. “It depends strongly on the capacities, the cable lengths, and the price differences between the countries. The trade-off between reduced cable costs and reduced trade needs to be examined on a case-by-case basis.” EACI project officer Dana Dutianu is very complimentary. “Offshore Grid was a huge effort,” she says, that provided important input to the preparation of the Communication on Energy infrastructure priorities. This document includes several references to possible offshore grid concepts for the North Seas and the Baltic Sea, which were developed by the OffshoreGrid project. FOR MORE INFO Communication “Energy infrastructure priorities for 2020 and beyond - A Blueprint for an integrated European energy network” ec.europa.eu/energy/infrastructure/strategy/2020_ en.htm www.offshoregrid.eu/ N°3 - OCTOBER 2011 / PAGE 5 RENEWABLE ENERGY Biomass – particularly wood pellets for power production – has become a globally tradable commodity. Pellet consumption in Europe is around 9 million tons per annum, of which about 2 million tons is imported from outside Europe. But developing a market for biomass fuels is not straightforward. Investors need to understand what drives supply and demand. They need re-assuring that the commodity is up to standard; differences in quality would stifle trade. The EUBIONET III project is increasing pricing transparency and supporting the development of standards for solid biofuels. “When you know how and why prices fluctuate, you understand better the market. People are then more likely to enter,” says EACI project officer Silvia Vivarelli. Project partners are helping to define the characteristics of solid biofuels, the required physical and chemical PAGE 6 / N°3 - OCTOBER 2011 properties, especially moisture content, so that fuels can be properly transported, stored and used. I N “The role of biomass has always been important but now there is more international trade,” says project coordinator Eija Alakangas, who has 28 years of experience in the sector. Pricing indexes for industrial wood pellets in the Baltic region are now published monthly, Eija points out. EUBIONET III project partners have worked with the International Organization for Standardization to ensure that biomass fuels can be traded on a reliable basis worldwide. E N For the future, Eija is concentrating on new biomass fuels. “In Finland, we are using ethanol from bakery residues,” she says. Finland is however ahead of the game compared to the rest of the world. FOR MORE INFO www.eubionet.net RENEWABLE ENERGY Sustainable public procurement the private sector to support investment in structural and cohesion funds on the one Implementing effective obligations concern- small and medium-scale photovoltaic plants. hand and people from the energy sector Project partners are targeting so-called on the other,” says project coordinator ‘marginal’ land: landfill sites, brown-field Carmen Heinze. The project team is sites, former quarries, buffer zones (near organising a series of study tours that airports for example) and former military provide experts from one Member State complexes, all areas with low or no economic with the chance to visit another, picking up value. valuable tips on renewable energy project ing minimum levels of energy from renewables in building regulations and codes for new or refurbished buildings or in the public procurement (for example, for social housing) is a highly technical exercise. Local authorities across the EU need to train staff applications as they go. “In some Member to ensure this takes place with the mini- States, the procedures can be lengthy and mum amount of procedures. An IEE project, Patres, has provided authorities with the necessary training. “The situation varies from country to country,” explains project coordinator Fabio Tomasi. “Local authorities can have a higher or a lower level of freedom. We want to simplify procedures so that it doesn’t take months of bureaucracy to get permission to install a geothermal heat pump or a solar panel. We are working on the details, and as you bureaucratic, which puts some applicants “We are working on the details, and as you know, the devil is in the detail.” optimum level of penalty to deter architects “We were taught that, when making local regulations to promote renewable energy and energy efficiency, we should not specify the type of technology we prefer,” says Francesca Ravaioli, energy manager with the Forlì town council in Italy. “We should instead focus on the performance.” Francesca, who has attended three Patres training Consumers of renewable energy are a natural target for the IEE programme. The Qualicert project covers the certification of installers of small scale photovoltaic, solar thermal, geothermal, heat pump and qualified installers, who will deliver high “Municipalities own various marginal areas quality installations,” says EACI project and they are at the same time having dif- officer Gianluca Tondi. ‘This is important ficulties finding financial resources at the because the quality of installation affects moment,” says project coordinator Erica the efficiency of the system. Negative Holland. publicity generated by a poor installation PVs in Bloom mobilized investment of ap- can take years to overcome.” proximately Euro 37 million with just Euro “EU legislation states that by the end of 2012 1 million of public support. installers of small scale renewable systems should be certified by national authorities or Funding is available have equivalent qualifications,” says project Amid all the talk of cash-strapped govern- make the market more transparent, and will ments, it should be noted that funding for renewable energy is still available. In fact, the coordinator Marjolaine Pont. “This will increase the overall quality of installations.” energy budgets of the EU’s regional and cohesion funds have not been fully used so far. FOR MORE INFO “Regional funds can invest in energy REPAP2020 efficiency and renewables but there is still a gap between the theory and the practice,” says Damien Cocard, EACI project officer for SF Energy Invest. “Managing authorities and project developers should take advantage of the extended opportunities within the Structural funds to finance and develop energy projects.” sessions this year, has incorporated her SF Energy Invest targets both managing newly acquired knowledge into a renewable authorities and fund managers. Matchmak- energy tender for a local school. ing events are held to help bridge the gap Municipalities have been actively engaged in Installers need to be certified “End users need to be able to choose from deviating from their original design is “We are not just talking about active solar potential, but also about passive solar potential.” funds easier to access.” biomass systems. know, the devil is in the detail.” Defining the just one example of this delicate process. off,” says Carmen. “We want to make the between the applicant and the authority. another IEE project, PVs in Bloom, which aims “It’s about networking, about bringing to bring together public administrations and together the people involved with the www.repap2020.eu CA-RES www.ca-res.eu Polis www.polis-solar.eu Patres www.patres.net PVs in Bloom www.pvsinbloom.eu SF Energy Invest www.sf-energyinvest.eu Qualicert www.qualicert-project.eu N°3 - OCTOBER 2011 / PAGE 7 RENEWABLE ENERGY ON THE GROUND “The repowering of just one of the five wind turbines in November 2010 is resulting in an annual yield which is much higher than before.” Rethinking renewable energy Two Sustainable Energy Europe Campaign projects make efficient energy approaches even more efficient. Innovative design for energy performance In Isleworth, just outside of London, a broadcasting centre like no other is being born. A few exterior details, such as the giant natural ventilation chimneys, hint at the building’s unique energy efficient approach. Sky Broadcast’s design choices and architecture have made the building Europe’s most sustainable broadcasting studio and data-centre. Sky will use the multi-storey building called ‘Harlequin 1’ as its centre of operations, housing the television company’s recording, post-production and transmission facilities. Harlequin 1 will be fully complete in late 2011, but a large part of the building is already in use. Every detail, from ventilation options to water consumption in toilets was considered when construction plans were developed. “Renewable energy is at the heart of the building,” says Fiona Ball, Sky’s head of environment. “To reduce carbon emissions, we will use biomass to fuel a combined cooling, heating and power plant. In addition, the energy from a wind turbine will deliver 55-60% of the annual office lighting requirements of Harlequin 1. And we have even built flexibility into the infrastructure to one PAGE 8 / N°3 - OCTOBER 2011 day incorporate other sustainable energy solutions, such as hydrogen fuel cells.” FOR MORE INFO Fiona Ball www.sky.com/environment Capturing the wind “Repowering means placing more powerful wind turbines in the best wind locations,” explains Christian Hinsch, juwi’s Director of Corporate Communications. “With our approach we are producing significantly more clean energy using fewer systems than before.” “With a sensible programme, we can reduce the number of wind turbines and still generate much more power than is currently produced.” Some of the best sites are already occupied by smaller machines nearing the end of their life. These can be replaced by a smaller number of bigger machines. A project in Schneebergerhof in the Rhineland-Palatinate region of Germany proves Christian’s point. “The repowering of just one of the five wind turbines in November 2010 is resulting in an annual yield which is much higher than before,” says Christian Repowering is especially beneficial for countries that have invested in wind energy early on and are now seeking to expand their wind energy production. FOR MORE INFO Christian Hinsch www.juwi.com/wind_energy/references/ schneebergerhof.html “The PPC group is planning to invest € 2 bn in RES projects within the next four years.” IN THEIR OWN WORDS PROF. ARTHOUROS ZERVOS Chief executive of Greece’s Public Power Corporation EU Directive triggers industry investment in renewables The IEE magazine talks to Prof. Arthouros Zervos, chief executive of Greece’s Public Power Corporation. What impact has the EU Renewable Energy Directive had on industry? The 2010-2020 decade started out with a groundbreaking proposal for the industry: legally binding targets to reach at least 20% renewable energy by 2020 in the EU. The Directive provides a strong and stable regulatory framework, which is absolutely key to the development of the renewable energy industry in Europe. Member States’ National Renewable Energy Action Plans show that the approach continues to pay off and that total renewable energy consumption will more than double in 2020. Progress towards greater use of renewable energy varies from country to country within the EU. Why is this? How in your opinion could countries be encouraged to catch up? for peak-load. Synergies can therefore Progress on the use of RES varies from could be happy with a wind farm with a country to country for many reasons. The maturity of each technology could be one reason, as well as the different economic situations and most important RES availability. The Greek RES market faced three main obstacles: the complicated legal framework, public acceptance and grid inadequacy. The new legal framework along with the creation of a one-stop shop for investors has significantly accelerated the licensing procedures. However, much As far as Greece is concerned, the Directive more needs to be done regarding public will boost Greek investments, and there acceptance and upgrading the grid, for are a number of investors who realise that renewable energy sources (RES) will play a key role in the country’s attempt to return instance explaining to local communities that boosting investments in green energy is one of the best ways to reshape our be achieved while integrating a mix of technologies on the electricity grid. When assessing RES you must first understand the conditions under which investment is taking place. An investor high load factor or a photovoltaic park with high irradiation or geothermal power in a region with high enthalpy. Is there anything that programmes such as IEE could do to make your life as a chief executive of a major utility easier? IEE already plays a crucial role in dismantling institutional, financial, behavioural and informational barriers which slow down RES uptake. In my personal view, the IEE programme directly contributes to the achievement of the RES 2020 target by enabling the economy. sharing of best practices (e.g. through Which type of renewable energy do you regard as potentially the most profitable for the electricity industry? And why is that? of RES installers), by addressing non- the 200 MW photovoltaic plant in Western A mix of renewable energy technologies importance that the IEE grows with the Macedonia, and the 1,339 MW wind farms in is interesting: some provide a back-up to renewable energy industry, in order to Crete, Karpathos, Kassos and Rhodes. the electricity grid where others provide pursue its very useful mission. to growth. Public Power Corporation (PPC) is investing to increase RES in the group’s electricity production mix. The PPC group is planning to invest € 2 bn in RES projects within the next four years and is currently developing some large scale projects like the Qualicert Project on certification technological barriers or facilitating policy implementation (e.g. through the Concerted Action on the RES Directive), and by raising awareness. It is of key N°3 - OCTOBER 2011 / PAGE 9 RENEWABLE ENERGY “They have involved the right people; industry is doing it for industry.” MANAGER & MANAGED Eliminating photovoltaic energy bureaucracy The PV Legal project has built up comprehensive data on the administrative barriers that hold back market growth. Zoé Wildiers, EACI project officer, PV Legal. PV Legal is a key project within the Intelligent Energy - Europe programme, its final objective being the removal of administrative barriers to the installations of RES systems (in this case PV), one central topic of the Renewable Energy Directive. Its contribution to removing the administrative barriers that hold back greater use of photovoltaic energy is already evident, and the project’s impact is expected to outlive the 32 months of EU funding that has supported it until now. “According to Article 13 of the Renewable Energy Directive, Member States have to remove administrative barriers,” says Zoé Wildiers, the EACI project officer in charge of PV Legal. “This is also just what PV Legal is aiming to do.” Project partners have not only identified existing hurdles, they are also drawing up concrete policy recommendations that will facilitate PAGE 10 / N°3 - OCTOBER 2011 the growth of the entire PV market, from small rooftop installations to ground-mounted large-scale plants. In a number of countries, bureaucracy has already been cut back. The project has highlighted the divergent The database identified the problems Cooperation between the project partners, situation in different Member States. “In some countries it can take over 3 years to get a PV permit,” Zoé says. the coordinator and EACI is reported to have been strong. To achieve this, the time and cost of the various legal requirements (such as permits) for different PV installations in 12 European countries have been fed into the PV Legal database. “With the data we can see why development is faster in some countries than in others. Thanks to the database, we know where the problems are,” says Zoé. The fact that the PV Legal partners are industry associations has also contributed to the project’s success. “They have involved the right people; industry is doing it for industry,” Zoé continues. “If you are a developer you can use the database to decide where to invest. If you don’t like the barriers that exist in one country you can push for change or go elsewhere.” “The consortium of PV Legal - through the coordinator - kept the EACI continuously informed on project findings and success stories. On the other hand, when one of the partners encountered problems during the course of the project we worked together with the consortium to find a solution so the project could ensure the foreseen impact,” remarks Gianluca Tondi, who was formerly in charge of PV Legal at the EACI. It will be important to keep up the momentum after the project ends in 2012, says Gianluca. “The PV Legal database will continue in some form. It doesn’t make sense to collect all this data and not keep it updated.” Legal-administrative costs as a share of overall project development costs (excluding PV equipment) 70% 60% 50% 40% 30% 20% 10% 0% Segment A BG CS FR Segment B DE GR Segment C IT NL PL PT SL SP RENEWABLE ENERGY “Germany already has 15 years of experience of connections, support programmes and administrative procedures.” MANAGER & MANAGED When barriers go down, installations go up Evidence suggests there is a direct link between administrative hurdles and market growth. operators are legally obliged to accept any installation in Spain are around 39% of PV connection request. the total – but progress is nevertheless concrete. Administrative costs can exceed 70% Diversity between national markets remains: Then compare this situation with Poland, rooftop, whereas in Italy and the Czech where the PV market is not as developed and where the administrative costs of setting up a medium-size demonstration Thomas Chrometzka, project coordinator PV Legal. Is it a coincidence that the size of the photovoltaic (PV) market in individual Member States seems to be inversely proportional to the bureaucracy required for installations? PV installation are in excess of 70% of the planning costs (i.e. excluding hardware). While growth can sometimes be achieved despite bureaucracy, bureaucratic headaches are always a brake on any market potential. “In Italy and Spain there has been quite significant market growth but legal and PV Legal project coordinator Thomas Chrometzka does not want to jump to conclusions before the project has run its course, but he admits the evidence points in this direction. administrative barriers are preventing Just look at one of the European Union’s most developed markets – Germany – where the legal and administrative costs of PV installations of all sizes are below 10%. “In the more mature markets, grid operators and authorities are more aware. Germany already has 15 years of experience of connections, support programmes and administrative procedures,” says Thomas. German regulation and permit procedures are so advanced that in most cases grid The data has also been used to compile cheaper PV systems from coming online,” says Thomas. The database the PV Legal team has compiled will itself help reduce these barriers. recommendations that have in some cases already led to changes in the law. As an example, Thomas points to Spain, where the obligation to obtain a permit for a rooftop PV installation of up to 100 kW for connection to a low-voltage grid was in Germany, most PV installations are Republic ground-mounted large-scale PVs have taken off to a greater extent. PV Legal policy recommendations have been tailormade to reflect this diversity and to boost market segments in all countries. Among the only administrative hurdles project partners had to overcome among themselves was establishing a common position on the methodology for their analysis. “It’s not that easy when you have a large project consortium,” says Thomas. “It ended up taking much more time than we thought. We realised we had to go into a lot of detail. Eventually, however, the effort was worth it and now we are able to provide good data for the participating countries.” Despite these challenges and the remaining barriers, the overall picture across Europe remains positive: growth in installed capacity doubled in 2010. FOR MORE INFO w w w. p v l e g a l . e u removed by royal decree in April 2010. Spain still has more work to do – the legal and administrative costs of a rooftop PV N°3 - OCTOBER 2011 / PAGE 11 Sometimes high upfront investment costs and insufficiently short payback periods deter potential investors. FOCUS ON Get others to do the hard work Market barriers to energy services companies and energy performance contracts must be removed if these useful tools are to reach their full potential. Winners of the European Energy Service Award 2009. Sustainable energy has long been a European goal, but sometimes high upfront investment costs and insufficiently short payback periods deter potential investors. One solution is to use energy services companies (ESCOs) or energy performance contracts (EPCs), market-based solutions that can be harnessed to promote energy efficiency and renewable energy sources in both the public and private sectors. Both ESCOs and EPCs are highlighted for financing, thus the public authority in the EU’s Energy Efficiency Plan 2011 does not need to indebt itself. The project as important means for the promotion is already delivering natural gas and heat of sustainable energy. The European energy savings of €100 000 annually. Energy services are broadly defined as any type of project or measure that leads to a verifiable and measurable or estimable energy efficiency improvement and/or primary energy savings. But they must be delivered on the basis of a contract, ensuring that suppliers and customers have confidence these services will deliver what they propose. The EU has an estimated 700 to 1 000 active ESCOs, turning over as much as €8.5 billion annually. They deliver energy services and/or other energy efficiency measures to their clients, and get paid on the basis of the savings they achieve. Being complementary to EU regulations, these for-profit businesses are seen as key to further stimulating energy efficiency in Europe. Yet the energy services market still faces numerous barriers, including a lack of awareness and information, distrust in suppliers, accounting rules, different procedures in each country, and problems accessing finance. PAGE 12 / N°3 - OCTOBER 2011 Commission is also looking at ways to boost Europe’s energy services market. Driving energy services “We want to introduce advanced EPC in countries where the concept is established and standard EPC in countries where the market has yet to get going,” says coor- The Intelligent Energy – Europe (IEE) dinator Susanne Berger. But she acknowl- programme has supported the energy edges difficulties for EU-wide harmonisa- services market via about 20 projects. tion: “We learned it makes no sense today The IEE project EESI is raising awareness of energy performance contracting through the annual European Energy Services Award and 24 pilot projects across Europe. It shows that such contracts are a cost-efficient to create a European standard for energy performance contracts, so are focusing on national EPC standards which will benefit future projects.” way of using the building sector’s existing Confidence is key potential for energy saving. In the Czech There is some scepticism in central and Republic, SEVen, an EESI partner in Prague, is working with the Regional Authority of the Pardubice region to cut energy and heat use in schools, hospitals, social and healthcare centres in 30 different locations. Measures include installation of new enhanced heating systems, reconstructing distribution systems and improved localised control. eastern European countries with undeveloped energy services markets that EPCs will deliver the promised energy savings and pay back the investments made by ESCOs or others. So the Permanent project seeks to build confidence among financiers there, by promoting two international protocols that can be used to measure and verify either The work is financed under a 13-year energy performance or energy efficiency. energy service contract between the ESCO Several hundred people in each partner and the building owners, with one year for country have been trained to use these equipment installation and 12 years to repay protocols in energy audits, so as to provide the company’s investment of €1.32 m. The the ESCO has taken over the full responsibility savings from an EPC for buildings. all-important guarantee of energy “Our project’s 49 field tests already indicate there is huge European potential for profitable energy efficiency services.” FOCUS ON 7 00 to 1 000 active ESCOs, turning over €8.5 billion annually The ChangeBest project is promoting the development of energy efficiency services (EES), while encouraging companies to enter this sector based on good business models. According to coordinator Wolfgang Irrek, “Our project’s 49 field tests in 16 Member States already indicate there is huge European potential for profitable energy efficiency services.” The tests look at ways to roll out services that are either ‘new’ or ‘optimised’ for a company, community or country; results are being turned into guidelines for companies to develop marketable and successful services. One test, in Denmark, targets the refurbishment of private households, a new market niche for energy efficiency services. W H AT I S A N E N E R G Y P E R F O R M A N C E CONTRACT? FOR MORE INFO EPCs come in various forms, depending for example on the agreed payback times or penalties. In a typical one, which may cover heating and the envelope of a building, an ESCO (energy service company) will design and implement an energy retrofit with a guaranteed level of savings. These savings are used to reimburse part or all of the ESCO’s initial investments. The building’s owner or tenants may benefit from some of the energy savings. When all investments have been reimbursed, the contract ends and henceforth the owner and/or tenant benefits from all energy savings. EESI www.european-energy-service-initiative.net Permanent www.permanent-project.eu ChangeBest www.changebest.eu FRESH www.fresh-project.eu MINUS 3% www.minus3.org Energy Performance Contracts (EPCs) are increasingly popular across Europe, especially in Germany, Austria, the Czech Republic and Scandinavian countries. They are not a new concept, but they are only now making inroads into the market, in particular in the public building sector – where they offer owners a guaranteed, quantifiable and long-term reduction in energy consumption and energy costs. They appeal to local authorities seeking easy access to finance in this sector, one traditionally ignored by risk-averse banks. Current energy performance contracts deliver between 5% and 30% energy savings. The Fresh project is looking at ways of using them in social housing, which accounts for 35 million homes across Europe, and achieving greater savings. According to the coordinator, Christophe Milin, “The energy retrofitting of social housing is hampered by a lack of adapted funding. One solution is to use EPCs, in which an energy service company invests in comprehensive refurbishment and repays itself through the generated savings.” But he notes that laws covering this field must be clarified, to address complete refurbishment and problems of recouping capital from the energy savings enjoyed by tenants after such refurbishment. N°3 - OCTOBER 2011 / PAGE 13 COUNTRY PROFILE By calling on solar energy, Europe could cover the equivalent of the total space and water heating consumption of almost 10 million households today. Plotting paths for renewables Snapshots of solar power, biomass and hydropower allow German and Polish partners in four IEE projects to roll out new plans. Stuttgart homes and residences which are ideally designed for the use of solar energy. EU Member States are ramping up their use of renewable energies to ensure they make up at least 20% of their final energy consumption by 2020, in line with national commitments under the Renewable Energy Directive. The Re-Shaping project gives them a helping hand and will contribute to the formulation of European renewables policy beyond 2020. future deployment of renewables. According to the Re-Shaping project’s coordinator Dr Mario Ragwitz, “German government ministries and energy regulators are benefiting from our project recommendations on optimising RES policy measures. This includes the economic efficiency of renewables support schemes and the effectiveness of renewables policies nationwide.” The project has published RES Policy Country Profiles, which assess Member States’ renewables policy effectiveness and efficiency. The profiles are snapshots of national successes and failures, now widely used by energy-sector investors and local authorities to improve best practice for renewables policy. A web-based ‘scenarios viewer’ also shows how EU policy choices on everything from biomass imports to subsidies would affect Germany’s 2020 target is 18%, but it intends to beat this and achieve 19.6% under the new national renewable energy action plan. “Because of this planned overachievement, Germany is in a strong position to discuss the EU Renewables Directive ‘cooperation mechanisms’ with other EU countries,” adds Mario, referring to the possibility for Member States to exchange their renewables target surpluses and deficits. Switching on solar About half of the energy consumed in Europe goes on heating and cooling of buildings and for industrial applications. Satisfying this demand is tough. But solar thermal is one proven and cost-effective technology solution. By calling on solar energy, Europe could cover the equivalent of the total space and water heating consumption of almost 10 million households today. ProSTO aims to boost the use of solar thermal systems by promoting solar thermal obligations (STOs), local regulations that oblige owners of new and renovated buildings to install solar thermal systems. The project developed a database on existing STOs, plus a Developers Toolbox to guide communities in setting up their own STO. The German partners in ProSTO were the City of Stuttgart and the Steinbeis Research Institute (Solites). For new public buildings and renovations, Stuttgart recently set energy requirements that were 30% stricter than the equivalent national legal regulation. This municipal initiative in Stuttgart has been followed by new regional and federal laws using the same approach. The two project partners have capitalised on their STO experience, for example organising Polish farmer’s straw-fueled boiler. PAGE 14 / N°3 - OCTOBER 2011 a campaign to promote solar thermal in Stuttgart’s multi-family homes. “Hydropower generates a relatively small share of energy in Poland, but plays a significant role in energy grids.” COUNTRY PROFILE “We learned that solar thermal laws are not enough: local authorities in Germany and the rest of Europe also need support and tools to implement them.” Newly installed solar thermal plants in basis where biomass energy is concentrated Stuttgart increased by 10% between 2008 and its energy potential, including where and 2009, compared with a drop of about this biomass can be potentially used 20% across the rest of Germany, mainly due (energy sinks) especially for heat and to the financial crisis. Thomas Pauschinger electricity production. Armed with this of Solites attributes this to the Baden- knowledge, regional authorities will develop Wuerttemberg region’s renewable heat law regional masterplans for sustainable use and Stuttgart’s sustainable energy initiatives. of renewables. Local communities and “We learned that solar thermal laws are not farmers are included in every step, ensuring enough: local authorities in Germany and the plan is workable and will succeed. the rest of Europe also need support and tools to implement them,” he says, referring mainly to awareness-raising campaigns and guidelines on setting up a STO. Using local biomass Many European regions sit on a biomass ‘goldmine’, without knowing it. One project focused on renewables energy planning is now highlighting this huge potential in the UK, Germany, Poland and Italy. BEn, the Biomass energy register for sustainable site development for European Regions, shows local authorities what kind of biomass is available and storable in their area, to prompt them to play an active role in The project’s two Polish partners are the Institute for Ecology of Industrial Areas (IETU) and the Gostynin Lake District Tourist Communes Association (StowGmin). “In our Central Poland region, the GIS tool convinced local communities that it is feasible to build biomass plants that run sustainably on locally sourced straw or wood,” says Janusz Krupanek of IETU. Potential biomass investments identified there include individual heating boilers for local farms between 20 and 200 ha, medium-sized biogas plants for husbandry farms and food producers, and briquette production for regional use in individual boilers. regional energy planning. Hydropower database The project delivered an online biomass Small hydropower (SHP) covers installed energy register for the four selected capacity up to 10 MW. Europe still leads regions, using biomass data in a web- the world in this sector, generating based Geographical Information System. enough electricity to power over 12 million The tool’s users can visualise on a regional households. But while experts see huge potential to upgrade old schemes or build new ones, SHP production and capacity have stagnated – due to growing environmental concerns and time-consuming administration. The SHP Stream Map project is looking at opportunities and challenges in the sector. One result is HYDI, a unique database on hydropower installed capacity and production in the EU27, updated annually. “A methodology for reliable data collection for HYDI has been developed, despite severe problems in acquiring data from some major energy actors,” says Dr Janusz Steller, from the Polish Hydropower Association, one of the eleven project partners. Janusz notes there has been no major hydropower scheme in Poland since 1971, but that more than 80% of its technical hydropower potential remains untapped. “Hydropower generates a relatively small share of energy in Poland, but plays a significant role in energy grids – so vital in a country developing its wind power sector.” The next project goal is to create a roadmap for the small hydropower sector, which can be used to influence the country’s decision-makers. FOR MORE INFO Ben www.ben-project.eu SHP Stream Map www.streammap.esha.be Re-Shaping www.reshaping-res-policy.eu ProSTO www.solarordinances.eu N°3 - OCTOBER 2011 / PAGE 15 ON THE GROUND “How a vehicle is driven makes a significant impact on how much fuel is used.” Training makes the difference Education and training projects that are part of the Sustainable Energy Europe Campaign are resulting in real energy savings. Vehicle performance is linked to driver behaviour, load, and fuel purchases. Helping drivers save energy we think about extending the programme As part of the Sustainable Energy Europe across a partner’s fleet of, say, more than 100 equipped with marketable skills and im- trucks, the savings will really begin to add provements are taking place in apartments up. That’s good news for the environment.” across Lithuania. During the seven-day Campaign, Shell and its Netherlands-based partner The Emons Group put an innovative course, participants aged over 50 learn new fuel management system to the test about energy and the environment, as well using a fleet of 17 Emons Recycling Logistics as the law, and ways to communicate with vehicles. Called Shell FuelSave Partner, residents. Many graduates have been hired the technique is designed for commercial road transport operators and uses in- FOR MORE INFO vehicle monitoring and real time analysis Joseph Machado of where fuel is being consumed, lost or www.shellfuelsavepartner.nl or used inappropriately. It tracks a range of www.shellfuelsavepartner.com parameters, including individual measures (click on “More about” of driver performance, such as acceleration. and “Visit web site”) “We have found that driver-related factors Global Commercial Environmental Solutions. Many Lithuanians grapple with high energy impact on how much fuel is used.” bills because their previously state-owned the information provided by Shell FuelSave Partner, Emons worked with drivers oneon-one. Shell FuelSave Partner links vehicle apartment buildings were built when energy efficiency was not a priority. Renovating is a challenge, because homeowners associations do not typically exist. performance with driver behaviour, load The Union of Lithuanian Pensioners (Bociai) management and fuel purchases. Detailed has created a popular training programme analyses allow fleet managers to engage that addresses this as well as another drivers to take immediate action. problem: age discrimination. “For some drivers at Emons, we saw up “Our training is expressly designed for senior to 10% savings in fuel consumption in the citizens - a valuable sector of the workforce,” first six months,” Joseph explains. “When says Petras Ruzgus, chairman of Bociai. PAGE 16 / N°3 - OCTOBER 2011 have become the renovation representative for their own building. Of course employment is not the programme’s only positive outcome. The renovations are increasing energy efficiency and savings for individuals, while decreasing Never too old to learn “How a vehicle is driven makes a significant Using tailored training sessions based on by building management companies, or CO2 emissions. are key to improving fuel consumption,” says Dr Joseph Machado, responsible for Shell’s Thanks to Bociai, older people are being FOR MORE INFO Petras Ruzgus www.lietuvosbociai.lt “Customers walk into the dealership at La Rochelle, and say ‘Wow’.” ON THE GROUND European energy inspiration Two projects, both part of the Sustainable Energy Europe Campaign, demonstrate energy efficient solutions and hold great potential for pan-European replication. Toyota’s enviro-wise car dealership in La Rochelle is carbon neutral. Instant information, instant gratification from nine other countries recently launched explains Christopher. “It is obvious that the “European Citizens Climate Cup,” a together with our dealer Ronan Chabot, Individual. Dialogue. Free. These words competition between private households. we have created something different.” Winners are recognised for the largest energy describe the Energy Savings Club (Energiesparclub) and its interactive Energy Savings Account (iESA), where members savings and the lowest CO2 emissions, with all tracking done using the iESA. Energy use is significantly less, thanks to the structure’s energy efficient design. For heating, ventilation and cooling Toyota input their heating fuel, electricity and water installed a series of underground pipes meter readings or usage estimates into an that use the temperature of the earth to online system. Thanks to 20 integrated regulate the inside air. Other features online advisory tools, the iESA provides include a green roof to provide insulation users with instant feedback on how, based FOR MORE INFO and shading, and building insulation made on lifecycle-costs, they can increase their Claudia Julius of recycled materials. All showroom lighting energy savings. www.theclimatecup.eu uses energy efficient lamps. Furthermore, around 2 000 square metres of photovoltaic “In Germany alone, 32 000 members are panels have been installed on the roof; these registered,” says Claudia Julius of co2online. “These households benefit from free feedback and advice on how to cut costs The future of retail, French style and CO2 emissions. We found that members Close to La Rochelle on the west coast are reducing natural gas consumption by an of France, an exemplary car dealership average of 4% each year, and saving even combines innovation and design. Toyota more on costs, especially if prices rise.” has built a carbon-neutral building that will The Energiesparclub was founded in Germany serve as a benchmark for future projects. by co2online gGmbH. “As far as we know, no “Toyota takes a 360 degree approach to other single system covers so many aspects sustainability,” says Christopher Barrow, of energy savings advice and consumption Manager of Sustainable Development for monitoring with a single log-in,” Claudia Toyota France. This means an environmental adds. By next year, membership of the strategy for each step in an automobile’s Energiesparclub is expected to reach 100 000. lifetime, from design and manufacturing, to Replicating this German success, thanks to produce on average three times the amount of energy consumed on site. FOR MORE INFO Christopher Barrow www.toys-motors.fr/eco-concessionla-rochelle.php logistics, distribution, and end of life recycling. support from the Intelligent Energy – Europe “Customers walk into the Toyota & Lexus Programme, co2online and consumer groups dealership at La Rochelle, and say ‘Wow,’” N°3 - OCTOBER 2011 / PAGE 17 RENEWABLE ENERGY ON THE GROUND “Gemasolar is the first commercial plant in the world to use this technology.” The energy of the sun powers our world Spain is host to two forward-thinking Sustainable Energy Europe Campaign projects which use the Mediterranean sun to produce energy for our needs. Thoughtful design ensures that the building decreases the need for electrical lighting. Capturing the sun’s rays – with salt! Further south in Spain, energy experts are putting renewables to the test with an innovative tower plant that uses a combination of solar energy and molten salts to capture and store energy. When is the critical advantage of this system. We façade, along with thermal insulation, act have achieved a method that enables to turn as a shield to keep the daytime heat at bay. a renewable source like solar energy into Air conditioning relies on a free cooling a ‘dispatchable’ energy, meaning we are system, which means that when possible capable of supplying electricity on demand. cooler air from outside the building is used Other renewable energies like wind power to ventilate the interior. Solar thermal and generation have no easy storage option.” photovoltaic systems have been installed commercial production begins at the The technology has been developed by the Gemasolar plant in Seville later this year, engineering and technology group SENER, it has been estimated that the tower will the majority shareholder of Torresol Energy. supply clean and secure energy to 25 000 on the roof of the BST. Interior blinds with mirrored components transport daylight into the building, which decreases the need for electrical lighting. households, thereby reducing CO2 emissions “The demand for electricity for lighting by more than 30 000 tonnes annually. has been reduced by about 30% because of the window blinds,” Joan explains. Launched by Torresol Energy Investments, S.A., a private energy company based in Bizkaia, Gemasolar is a massive plant that uses central tower receiver technology with a heat storage system. This means FOR MORE INFO Juan Ignacio Burgaleta www.torresolenergy.com that thousands of mirrors (or heliostats) temperatures above 500 degrees Celsius, generates steam and produces electrical power. Excess energy captured from the sun “Considering the Catalan heat, durability is key,” said Joan Sabaté of SaAS Sabaté Associates Architecture and Sustainability. He was describing the facilities of the salt tank. Blood and Tissue Bank of Catalonia (BST), the world to use this technology,” says Juan designed to be sustainable and energysmart. Ignacio Burgaleta, Director of Technology for Innovation is everywhere. For starters, the Torresol Energy. “Storage of the solar energy walls are extra-thick. The density of the PAGE 18 / N°3 - OCTOBER 2011 most energy efficient buildings in the Innovation around every corner can be transferred and stored in the molten “Gemasolar is the first commercial plant in “The BST is considered to be one of the savings in thermal demand,” Joan adds. an innovative molten salts system within the collected by the salts, capable of reaching to the position of the sun. Mediterranean region because of the vast surrounding a tower focus solar rays, and tower transfers heat to a boiler. The heat The blinds automatically rotate in relation FOR MORE INFO Joan Sabaté www.saas.es/banco-de-sangre-decataluna/ Tools and services for local and regional authorities and energy agencies www.managenergy.net Interactive website Networking opportunities Capacity building workshops Case studies and good practice Education corner Information on EU legislation Annual events © littlesam - Shutterstock Dates for your diary > November 2011: The results of the evaluation of the 2011 call for proposals are revealed. > November 2011 – February 2012: Negotiations on the proposals recommended for funding. > February 2012 onwards: Grant agreements will be signed. You can start work! > Early 2012: Next IEE call for proposals. INTELLIGENT APPLICATION Become an expert evaluator for Intelligent Energy – Europe If you are an expert in the field of sustainable energy or transport and you are not applying for funding from the Intelligent Energy – Europe Programme, you may be interested in helping us to evaluate project proposals. Why not apply to be included on our list of evaluators? http://ec.europa.eu/eaci/call_en.htm Once you are on this list, and depending on the nature of the task, we may invite you to assist us in future evaluation exercises. executive agency EUROPEAN COMMISSION for competitiveness & innovation EA-AB-11-003-EN-C IEE INTELLIGENCE