Promoting Energy Efficiency in Europe

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Insights, Experiences and Lessons learnt from theNational Energy Efficiency Action Plans

Promoting Energy Efciency in Europe


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DisclaimerThe sole responsibility for the content of this reportlies with the authors. It does not necessarily reect the

opinion of the European Communities. The EuropeanCommission is not responsible for any use that may bemade of the information contained therein.

ImprintBrochure Presented by the Energy Efciency Watch Project

Coordinated by EUFORES a.i.s.b.l.European Forum for Renewable Energy SourcesDr. Jan GeissAnne-Doroth Mller

Based on the screening and in-depth analysis ofNational Energy Efciency Action Plans (NEEAPs)

Wuppertal Institut GmbHDr. Ralf SchleChristof ArensVera Hfele

Ecofys Germany GmbHDaniel BeckerThomas BoermansKjell BettgenhuserDr. Jochen HarnischPiotr Jaworski

Wuppertal, Cologne, Berlin, Brussels, January 2009

Graphics: www.digitale-gestaltung.de

Photo: Thomas J. Kiefer, Fotolia.de


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A common ag for Energy Efciency The Energy Efciency Watch

Europe is at a crucial point to dene its energy future!

In todays world, Europe is facing rising oil and gas prices,threats to the security of energy supply and energy povertyas well as the already noticeable consequences of climatechange.Energy efciency is the quickest, cheapest and most directway to turn these challenges into real opportunities. Withexisting technologies, energy savings of up to 30% are al-ready feasible. Improved application of energy efciencycould cut around 20% of greenhouse gas emissions in theEU. However, most EU Member States are still not mak-ing use of these enormous opportunities and are lackingclear implementation of energy efciency measures on theground. In 2006, we and other Members of the European

Parliament and National Parliaments, founded the Energy Ef-

ciency Watch Initiative to call for the promotion of energyefciency and knowledge sharing of good policy in that eldwithin Europe. The Energy Efciency Watch project (EEW), co-ordinated by EUFORES, is the centrepiece of the initiative andwe are happy to present its results.We are convinced that the results of the EEW will contrib-ute signicantly to raising awareness of energy efciency,enhancing a mutual learning process among EU MemberStates and helping Europe to reach its 2020 targets (20%Energy saved, 20% Energy from Renewable Energy, 20%Greenhouse gas reduction) which were afrmed by the Eu-ropean Heads of State and of Governments at the March2007 Summit.

Mechtild Rothe, MEP, Vice-

President of the European Par-

liament, President of EUFORES

Claude Turmes, MEP, Vice-

President of EUFORES

Fiona Hall, MEP, Vice-Presi-

dent of EUFORES

Photo: Van Holsteijn en Kemna, www.vhk.nl



The Energy Efciency Watch ProjectThe overall objective of the EEW Project is to promote en-

ergy efciency across Europe by analysing Member Statesnational energy efciency strategies and by highlightinggood practice energy efciency policies, instruments andactivities.

The main source for this analysis were the National EnergyEfciency Action Plans (NEEAPs) pulished by EU MemberStates between 2007 and 2008.

According to the Directive on energy end-use efciency andenergy services (ESD, 2006/32/EC), Member States are calledto set an indicative 9% reduction target in end-use energyconsumption by 2016, to provide mechanisms, incentivesand institutional, legal and nancial frameworks to achievethis target and to create the conditions for the developmentand promotion of markets for energy services (Art. 1).

Within the project, all 27 NEEAPs were screened along theformal criteria of the ESD and the policy approach driven ineach Member State to address energy saving potentials.

Based on the results of the screening, 12 NEEAPs were select-ed (Belgium, Bulgaria, Czech Republic, France, Germany, Hun-gary, Italy, Poland, Romania, Spain, Sweden, United Kingdom)for an in depth evaluation.

This evaluation focused on two main elements of the NEE-

APs, the analysis of the relationship between energy sav-ings potentials, the target calculated and the measuresdisplayed to achieve the target, as well as on the level ofinnovativeness of measures and elements enclosed in theNEEAPs.During the evaluation process, representatives of the energyefciency industry and NGOs have been involved to includetheir specic perspectives on the NEEAPs. In that way, theevaluation process gathered both scientic analysis andstakeholders input.

The evaluation results are presented in a condensed wayin this brochure which shall provide advice and support forthe redrafting of NEEAPs wherever improvement might beneeded. The EEW evaluation of the NEEAPs is understoodas a complementary contribution and additional dissemi-nation channel to the evaluations done by the EuropeanCommission. The EEW is supported by Intelligent EnergyEurope.

Photo: Taf, Fotolia.de



The role of the NEEAPs for Europesway towards Energy Efciency

EU Member States altogether are currently consuming 17 per-

cent of the worlds energy production. Consumption is main-ly dependent on the level of industrial development and thesize of the population.The question of energy consumption is both a challenge anda chance:

Rising energy prices, an increasing dependency on ener-gy imports and the effects of climate change will have anegative impact, if consumption is not reduced.

Consequent implementation of energy efciency strate-gies will lead to higher international competitiveness ofEuropean industries, and new international markets willarise for advanced energy efcient technologies and en-ergy services.

So far, in many EU Member States energy efciency has notbeen on top of the political agenda, although the potentialsfor cost-effective savings are considerable. This picture is nowchanging, fostered signicantly through EU legislative initia-tives and political processes:To identify potentials, all energy end use sectors must beanalysed. Overall savings potentials are about half of our cur-rent consumption and, in addition, in a number of countriesthey are much above the average, i.e. there are low hangingfruit to be picked.Despite the fact that the NEEAPs are very heterogeneousin structure and level of information provided, they enableinternational comparability and transparency of measures.Reecting especially the specic conditions and experiencefor energy efciency policies in old and new Member States,

innovative approaches and good practice to address energy

saving potentials are emphasised in the following ways:

1) Because they are comprehensive or combine several typesof measures in sectors (information combined with funding)2) Because they represent a new or consequent approachto address energy savings in one sector (e.g. dynamisation ofstandards, market-based approaches, procurement)3) Because they specically involve stakeholders in nationalpolicies (e.g. voluntary agreements with industry)

As plans, however, the NEEAPs enclose both measures beingalready implemented and measures to be implemented onlyin the future. Critical discussion in, and continuous efforts of,Member States are required to assure the implementation ofpolicies as announced in the plans.

EU 27 technical energy savings potentials per sectorin million toe

Households

Transport

Tertiary

Industry

milliontoe

2004

2008

2012

2016

2020

600

500

400

300

200

100

0

Source: ESD Potential Study

Photo: emmi, Fotolia.de



The Irish Power of One campaign builds mainly on Edu-cation and Communication. The campaign focuses on

Awareness on types and sources of energy, costs andenvironmental impactsConsumer information about the impact that inef-cient energy use has on costs and the environmentIndividual responsibility and small changes in dailybehaviour

An innovative approach is the presentation of examples:In the Power of One Street project, the energy efciencyof eight families from different geographical and socialbackgrounds is tracked. Every month, the participantswere set a challenge to improve their energy efciency.The savings measured were announced to the media.Another sub-programme is the Power of One at Workinitiative, encouraging employers and employees to bemore energy efcient in the workplace. The initiative pro-vides basic guidance on energy efciency for employees,business owners and managers through an advertisingcampaign, a website and a toolkit for implementing aworkplace energy awareness campaign at the local level.(http://www.powerofone.ie)

A major obstacle to energy efciency is the lack of knowledge

(on both energy efcient equipment & behaviour) amongprivate households, companies or public authorities. Thus, acore strategy is to effectively provide each target group withspecied information. According to ESD, Member States play

The Austrian klima:aktiv campaign, as part of the na-tional climate strategy, aims at supporting existingpolicy packages and sectoral measures through infor-mation, communication, networking and advice.Klima:aktiv comprises 21 programmes on energy ef-ciency of buildings and appliances, renewable energyuse and mobility management. Its broad scope is struc-tured along two general lines:

Traditional approach: basic information and initialadvice for private households, public authoritiesand companiesInnovative communicative approach: involvementof decision makers, producers and companies withrelevant inuence on investment decisions, e.g.master builders, plumbers, property developersand managers, manufacturers of (prefabricated)houses, and procurement operators.

The promotion of energy efcient technologies and life-styles as well as the emphasis on quality assurance andnetwork-based standard setting make klima:aktiv anoutstanding information campaign in Europe. (http://www.klimaaktiv.at)

Good Practice:

an important role to assure the provision of information.

Consequently, many Member States such as Austria, Bulgaria, Cy-prus, Germany, Romania, the UK, have announced or have alreadystarted cross-sectoral information and networking campaigns.

Good Practice:

Good Practice examples from the NEEAPsProvision of basic information

Photo: Lidy Poot, Fotolia.de



Energy Audits: Generating robust datafor energy efciency actions

Energy audits, especially when being combined with com-

plementary advisory services, play an extraordinary role insupporting investment decisions. In the building sector forexample, which is the most important sector in this context,audits provide the necessary energy information and databasis for efciency-related investments.

Investors in different sectors with a clear need for indepen-dent data and information are through these audits broughttogether with certied consultants who provide a compre-hensive analysis of the object to be modernised.

Additionally, audits are an important access to investors whomight then consider additional activities and energy-savinginvestments beyond the standard.

Energy Performance certicates for all buildings (when con-structed, sold or rented out) have become mandatory via theEuropean Energy Performance of Buildings Directive (EPBD).In addition, most Member States reect the need for a robustdata base in their NEEAPs by subsidising voluntary energyaudits especially in the building sector, e.g. Austria, Belgium,the Czech Republic, Denmark, Finland, Germany, Ireland, theNetherlands and the United Kingdom.

In some cases, energy audits even are (or will be in the fu-ture) mandatory for large energy consumers (Bulgaria) orfor companies and private investors applying for subsidiesor low interest loans (Austria, Germany). In Finland, subsi-dised energy audits for private service buildings were madea mandatory element in the energy conservation agree-ments of 1999.

Photo: Tortenboxer, Fotolia.de

Photo: waltart, Fotolia.de


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Rebate in taxation for investments in energy ef-ciency (Belgium, France)The energy investment deduction (EID) providesa tax rule allowing additional deductions on tax-able prots after investments in energy efciency(Netherlands)The enhanced capital allowances (ECA) providebusinesses in the tertiary sector with a rst year100% tax allowance on investments in designatedenergy efcient equipment (UK)

Implementing a scheme of direct subsidies forapartment buildings and (semi) detached houses(Finland)Issuance of extensive loan and credit based pro-grammes (Austria, Germany), e.g. the expandedCO2 Building Retrot Programme of the KfW Bank(Germany)Establishment of Energy Savings Trusts in Denmark(http://www.elsparefonden.dk) and the (UK http://www.energysavingtrust.org.uk)In order to reduce electricity use in the residentialsector, the non-residential sector and the tertiarysector, Italy plans the replacement of incandescentlamps by compact uorescent lamps (CFL) through,inter alia, white certicate schemes, informationprogrammes, and monetary incentives, resulting insavings of 4,800 GWh/year until 2016.

Promoting Energy Efficiency in Europe8

Prominent examples:

Energy efcient investments throughnancial incentivesInformation and advice play an important role in making in-

vestors more sensible regarding energy efcient investmentdecisions. The impact of such soft measures is strength-ened when combined with complementary nancial incen-tives.The spectrum of nancial incentives for the industry andtertiary sector is quite broad throughout the EU MemberStates. They are offered as- soft loans- grants- direct subsidy schemes- tax reductions.All these incentives aim at reducing (and sometimes com-pensating) the additional costs for energy efcient technol-ogies or components compared to standard investments.

Prominent examples:

In many Member States, loan schemes, grants or direct sub-

sidies are also offered to improve the energy performance ofexisting residential buildings and the electricity use in theprivate household sector.

Mostly, the focus lies on both the improvement of the build-ing envelope and installations, or the use of renewable ener-gies (mainly solar and biomass systems) and CHP (combinedheat & power) systems.

Photo: Nadolica, Fotolia.de



Dynamisation of standards

Photo: Holger Buse, Fotolia.de

Link of information and legal regulations for existingbuildings (Denmark)

Introduction of requirements pointing out thatwhen major renovations take place, energy im-provements specied in the energy label must beimplementedIntroduction of specic requirements in the build-ing regulations regarding the replacement of roofs,windows, and oil and gas boilers as well as thechange of heat supplyMandatory inspection scheme to target the qualityassurance of heating systems

New buildings

Tightening the energy requirements in the buildingregulation by 25-30% compared to 2006, i.e. approx-imately 25% to be reached until 2010 (Denmark)Ensuring an improvement in energy performance ofhomes and a revision of regulations leading to energy usereductions of 40% relative to current standards (Ireland)Improving energy efciency standards: Since 2007buildings are required to be 40% more efcientthan the average level of 2002 (UK)Envisaging carbon neutral new homes by 2016 (UK)

Existing buildings

Revision of national building regulation in 2010with the aim of improving energy performance by60% compared to current standards (Ireland)Introduction of a code for sustainable homes, ensur-ing that all homes funded by the government complywith a high energy standard level (3 star level) (UK)

Mandatory standards address new or existing buildings and

electrical appliances. While the Energy Performance of Build-ings Directive (EPBD) aims to promote improvements in thebuilding sector, the Eco-design of Energy-using Products(EuP) Directive harmonises requirements concerning designand development of energy-using products.Member States have developed a range of different approaches:

Etrium Econcern Passive Ofce Building, ColognePhoto: Econcern GmbH


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Getting industry and servicesectors involvedIn order to promote energy efciency in the industry and ser-

vice sector, the most common approaches in NEEAPs are theprovision of nancial inventives and the establishment ofvoluntary agreements with market stakeholders.Besides direct nancing measures, some Member States al-low rebates in taxation for investments in energy efciency,as mentioned e.g. in the Belgian and French NEEAP. The en-ergy tax in the Netherlands is a levy on energy consump-tion and covers all sectors. In the UK, the Enhanced CapitalAllowances (ECA) scheme provides businesses in the tertiarysector a rst year 100% tax allowance on designated energyefcient equipment investments. Relating to the latter, vol-untary networking between governmental authorities andbusiness representatives and the establishment of voluntaryagreements are a common approach to get stakeholders in-volved in energy efciency policies.

Financial incentives

Companies which have signed the energy conser-vation agreement can get higher rates of subsidiesfor energy audits (Finland)An Energy Agreement Programme promotes ener-gy management schemes in companies (Ireland)Combined strategies: establishing a climate changelevy to reduce energy use in the industry and publicsector for those who commit to emission reduc-tions or improved energy efciency targets, thislevy is reduced (UK, DK, SE)

Voluntary networking approaches

Example Ireland: The Irish Large Industry Energy Network(LIEN) is a well established networking and informationprogramme for large industrial energy users. Having al-ready been in operation for more than 10 years, it has en-gaged almost 100 of the largest energy users in ongoingrelationships including site visits, workshops and annualperformance reporting. LIEN members share informa-tion on energy saving technologies and techniques tomaximise savings and maintain competitiveness.

Voluntary agreements

Several Member States, such as the Netherlands andFinland, have a long and successful tradition in conclud-ing binding agreements. In the Dutch system of LongTerm Agreements (LTA), the government committed alarge number of sectors of the national industry to im-proving energy efciency.At present, there are several types of LTAs establishedwith companies and organisations in the tertiary, trans-port and agricultural sectors.The second generationLTA 2 requires the participating com-panies to draft an Energy Conservation Plan (ECP) in consul-tation with the relevant public institution. This ECP sets theenergy efciency goals of each company, linked to concretemeasures planned and an implementation strategy.Based on all ECPs in the sector, a sector objective is de-termined being set in a sectoral long-term plan (LTP).

Photo: Van Holsteijn en Kemna, www.vhk.nl



Market-based approachesThe Energy Services Directive calls for an important role of en-

ergy service companies (ESCOs) in achieving energy savings.In the course of European integration, Member States hadto liberalise their energy markets. Energy utilities could nolonger retain customers by supplying electricity or gas only,so they offered new services such as advice, energy audits,maintenance and operation, property management, andequipment supply. Independent ESCOs offer such services,too, establishing contracts with their customers. They work

project wise, i.e. they identify savings potentials, install the

necessary equipment, operate the system, purchase fuel andelectricity, and provide nancing of the project. The paymentis structured as a success fee, i.e. linked directly to achievingthe energy savings. In Europe, ESCOs have been active main-ly in the public sector, i.e. in public buildings, hospitals, andlighting projects. In such public lighting projects, for example,municipalities offered the lighting operation, including thesupply of electricity up for tender.

In most of the current Energy Efciency Action Plans, activi-ties of ESCOs play only a subordinate role. Suggested mea-sures to foster the development of the ESCOs range from thecreation and stimulation of framework conditions for energyservices via the provision of energy services up to mandatorycommitments imposed upon energy companies.

Some Member States, such as Italy and France, have devel-oped White Certicate Schemes in which energy savingsbeyond a business as usual case receive certicates. Withinthese schemes, energy companies themselves are obliged tostronger commitments in energy efcient activities. Largeelectricity and gas distribution network companies (Italy) orenergy supply companies (France) are legally obliged to provea certain amount of energy savings either through own ac-tivities or the purchase of White Certicates from ESCOs.

An outstandingly innovative instrument is proposed in theNEEAP of the UK: in this plan, a carbon reduction commit-ment (CRC) is envisaged, which targets the introduction of acap-and trade scheme for large public and commercial sectororganisations.

Photo: jeff Metzger, Fotolia.de

Photo: Econcern GmbH


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Transport SectorCompared to other sectors, transport plays a subordinate role in

the NEEAPs, although emissions are continuously rising in thissector. Several Member States (Denmark, Estonia, Germany) arealready addressing the issue by separate transport developmentplans, indirectly linked to the ESD-process. These plans focus on:

1. Optimisation of energy use in vehicles2. Optimisation of mobility management3. Change of modal split

2. Examples for optimisation of mobility management

Mandatory speed restrictions (Austria, Bulgaria,Finland, Italy, Netherlands)Promoting information technology in transportthrough the use of telematics in order to increase ca-

1. Examples for optimisation of energy use in vehicles

Promotion of energy efcient vehicles throughgrants and subsidy schemesIntroducing a labelling scheme for new cars (France,UK, Finland)Emission limits from 2009 on: 140 g CO2/km for theaverage of new cars sold (Italy)Environmental taxation, either taxation of fuel oils(Bulgaria, Germany) or emission related road tax(Ireland, Germany, Italy, Netherlands, UK)

3. Examples for change of modal split

Information campaigns (Germany, Ireland)Expansion of public transport (Austria, Cyprus, Finland)Improving transportation infrastructure by invest-ing in rail infrastructure (Czech Republic, Finland,Romania)Strengthening the public transport system throughthe purchase of new, more energy efcient buses,the establishment of a school bus system and theintroduction of bus lanes from 2007-2020 (Cyprus)Support of cycle transport and pedestrians (Austria,Finland, Germany)Promotion of teleworking (Malta)Changes of spatial and regional planning and resi-dential housing development in order to avoid traf-c or shift towards less emission intensive modes(Austria, Finland)Targeting the insurance industry: promoting the in-clusion of a yearly public transport network card inthe provision of car insurance packages (Austria)

pacity utilisation and reduce trafc (Austria, Finland)Promotion of car sharing and car-pooling (Austria, Italy)Promoting mobility managements in public andprivate institutions (Austria, Spain, Poland) or travelcentres (Finland)Improving goods and rail transport (Austria)

Photo: Yali Shi, Fotolia.de



Public procurement programmes

The design of public procurement programmes rangesfrom mandatory green public procurement programmesin Austria to less binding regulations like in Poland, whereenergy efciency criteria have to be taken into consider-ation in public investments. In Cyprus, an action plan forgreen public procurement was set up including energyefciency criteria for equipment, buildings and vehicles.

Binding targets

The UK has dened quantied requirements for Sustain-able Operations on the Government Estate with the aimto reduce its emissions by 30% by 2020.Front runner the Netherlands: by 2010, 100% of nationalpublic procurement will include sustainable procurementcriteria. For regional governments, a 50% target was set.

The public sector as a Role ModelArticle 5 of the Energy Services Directive obligates Member States

to outline the exemplary role of the public sector in their NEEAPs.Accordingly, most Member States have adopted public procure-ment programmes; furthermore there are some activities in theeld of information and advice. On the latter, Malta designed aspecial form: so-called Green Leaders will be assigned in eachministry. Coordinated by the Government Environmental Corpo-rate Responsibility Ofce, their major activity is to commission anenergy audit of at least one building belonging to each ministry.In most NEEAPs the requested improvement of the energy perfor-mance of public buildings is addressed by regulatory measures.

Regulatory measures

The United Kingdom and the Netherlands aim atreaching carbon neutral or climate neutral centralgovernment buildings by 2012.Voluntary agreements and mandatory informa-tion measures for municipal buildings are cur-rently in place in Finland; according to its NEEAP,Finland plans to include public sector buildings aswell.Ireland underlines the exemplary role of the pub-lic sector with a large package of measures includ-ing green public procurement, a high-level work-ing group to achieve a 33% energy saving targetfor the public sector, the requirement to produceannual reports on energy efciency actions, andthe documentation of the progress regarding thistarget.

Photo: Ayvengo, Fotolia.de

Photo: Econcern GmbH


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Member State Target for 2016

Austria 22,333 GWhBelgium 30,366 GWh

Bulgaria 7,291 GWh

Cyprus 2,152 GWh

Czech Republic 19,842 GWh

Denmark 2,083 GWh

Estonia 2,125 GWh

Finland 17,800 GWh

France 139,560 GWh

Germany 231,389 GWh

Greece 16,410 GWh

Hungary 11,611 GWh

Ireland 13,117 GWhItaly 126,327 GWh

Latvia 3,483 GWh

Lithuania 4,652 GWh

Luxemburg 1,582 GWh

Malta 378 GWh

Netherlands 51,190 GWh

Poland 53,333 GWh

Portugal 20,840 GWh

Romania 32,564 GWh

Slovakia 10,338 GWh

Slovenia 4,261 GWh

Spain 196,349 GWhSweden 41,100 GWh

UK 136,500 GWh

Total 1,555,758GWh

Energy savings targets of EU-MemberStates until 2016

Photo: Chita, Fotolia.de


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Key-Supporting Partner: Supporting Partner:

Contact:

EUFORES a.i.s.b.l.European Forum for Renewable Energy SourcesDr. Jan GeissRenewable Energy HouseRue dArlon 63 65B-1040 Brussels, BelgiumTel.: +32(0)25 46 19 48Fax: +32(0)25 46 19 [email protected]

www.energy-efciency-watch.org

Wuppertal InstituteDr. Ralf [email protected]

Information:

Please nd the NEEAPs and more information on Energy Efciencyat the European Commission, DG Transport and Energy website:http://ec.europa.eu/energy/efciency/end-use_en.htm

Promoting Energy Efficiency in Europe

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