Global energy players highlight common views on the energy efficiency potential in buildings and transport sector

 12 September 2017, Strasbourg, European Parliament: Today senior business representatives from Italian multinational energy supplier ENEL and the European Alliance to Save Energy (EU-ASE) – a cross-sectorial organization of companies providing energy efficient technologies and services – presented to Member of the European Parliament (MEPs) their “Common Views” on energy efficiency. They outlined that buildings and transport have the highest cost-effective energy savings potential in the EU, respectively 61% and 41%.

The exploitation of synergies between buildings, transport and the electricity system as well as the integration of efficient technologies and services through the smart grids and the development of smart cities represent business opportunities that Europe should not miss.

Simona Bonafé (S&D, Italy) welcomed this constructive holistic approach by key business players and said: “Energy efficiency is one of the greatest tools for boosting economic growth, creating qualified jobs and safeguarding a sustainable environment. In the building and transport sector, there is a huge potential for innovation and investments. We must move forward with ambitious legislation to give a clear message to all stakeholders”.

In his introductory speech, Harry Verhaar, Head of Global Public & Government Affairs, Philips Lighting and Chairman of EUASE Board of Directors, said: “Additional measures must be taken in the framework of the EED/EPBD revisions to speed up building renovation and increase the current EU annual renovation rate to at least 3%. Renovation strategies should be developed within each specific national energy context by planning in terms of districts and entire energy systems, rather than focusing only on individual buildings to reap the full potential of high-efficiency energy supply solutions and maximize the energy saving potential of the entire energy chain”.

On behalf of ENEL, Nicola Melchiotti, Head of European Public Affairs and Regulation, added: “To make the entire system more efficient we need smart homes, smart buildings and smart cities. Buildings and transport show a great potential for energy efficiency and electrification is the answer: the more we electrify, the less energy we use. In the transport sector electric engines are 5 times more efficient than traditional ones and they can help solve other pressing problems, like the air pollution in our cities. We need to capture this opportunity”.

 

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La sfida dei cambiamenti climatici si vince anche con una politica ambiziosa e leggi chiare sull’efficienza energetica nell’edilizia e nei trasporti.

 Strasburgo, Parlamento Europeo, 12 settembre 2017: Oggi rappresentanti di ENEL e della European Alliance to Save Energy (EU-ASE) – un’organizzazione inter-settoriale che raggruppa importanti imprese europee operanti nel campo energetico e dei servizi e associazioni come il Kyoto Club – in occasione di un evento congiunto ospitato dall‘on.Simona Bonafe, hanno, sottolineato il fatto che i settori edilizio e dei trasporti hanno il più alto potenziale di risparmio energetico nell’UE, rispettivamente del 61% e del 41%, rispetto alla situazione attuale.

Sfruttamento di sinergie tra edifici, trasporti e sistema elettrico, unitamente all’integrazione di tecnologie e servizi efficienti attraverso le “smart grids” e lo sviluppo di “smart cities”, rappresentano un’opportunità economica che l’Europa non puo’ e non deve farsi sfuggire, dato anche il contesto sempre più drammatico di instabilità climatica che ci impone di agire con urgenza, come dimostrato dagli eventi drammatici degli ulltimi giorni.

ENEL e EU-ASE hanno invitato i Membri del Parlamento Europeo (MEP), impegnati nella revisione delle direttive sull’Efficienza Energetica (EED) e sulla Performance Energetica degli Edifici (EPBD), a tenere fede al loro impegno di sostenere norme e obiettivi più ambiziosi rispetto a quelli contenuti nella posizione comune del Consiglio e facilitare sicurezza e flessibilità degli investimenti e una particolare attenzione verso le aree urbane, dove i benefici ottenibili direttamente sarebbero risparmio energetico, creazione di nuovi posti di lavoro non delocalizzabili, maggiore competitività del sistema economico e tanti altri ulteriori significativi vantaggi tra i quali il miglioramento della qualità dell’aria e la conseguente diminuzione dei rischi per la salute.

Simona Bonafé, Membro del Parlamento Europeo (S&D, Italia) ha accolto favorevolmente un tale approccio costruttivo ed olistico ed ha affermato: “L’efficienza energetica è uno dei più grandi strumenti disponibili per stimolare la crescita economica, la creazione di posti di lavoro qualificati e la salvaguardia dell’ambiente. Nei settori dell’edilizia e dei trasporti c’è un alto potenziale per l’innovazione e gli investimenti. Dobbiamo perseguire una legislazione ambiziosa per lanciare un chiaro messaggio a tutti gli stakeholders”.

Nel suo discorso introduttivo, Monica Frassoni, Presidente di EU-ASE, ha detto: “Devono essere prese delle misure aggiuntive nell’ambito del processo di revisione delle direttive EED e EPBD per accelerare la riqualificazione degli edifici ed incrementare l’attuale tasso di efficientamento energetico annuo nell’UE ad almeno il 3%. Le strategie di rinnovamento devono essere sviluppate tenendo conto dei singoli contesti energetici nazionali, e prevedere una pianificazione in termini di distretti e sistemi energetici nel loro complesso, piuttosto che concentrarsi unicamente sui singoli edifici, così da poter sfruttare appieno il potenziale di risparmio energetico esistente”.

Per conto di ENEL, Nicola Melchiotti, Head of European Public Affairs and Regulation, intervenendo al dibattito ha aggiunto: “Per rendere l’intero sistema più efficiente abbiamo bisogno di edifici e città intelligenti. Edifici e trasporti hanno un grande potenziale per l’efficienza energetica e la chiave è l’elettrificazione: più elettrifichiamo, meno energia usiamo. Nel settore dei trasporti, i motori elettrici sono cinque volte più efficienti di quelli tradizionali e possono aiutare a risolvere altri pressanti problemi, come quello dell’inquinamento dell’aria delle nostre città. Dobbiamo cogliere questa opportunità”.

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Energy Efficiency First – Insights from the chemical industry

Debates on the proposal for a revised Energy Efficiency Directive have mainly focused on setting the right level of ambition through targets. The European chemical industry presented its views to shift the focus of the discussion towards the means and concrete proposals on how those targets can be achieved.

The chemical industry is known as one of the largest energy consumers in Europe. It also delivers energy efficient solutions across the European value chains, especially in the construction sector and it can play an important role in helping achieve European targets and at the same time unlock the full potential of energy efficiency to the benefit of the European economy.

During the debate, organized by the European Energy Forum, Marco Mensink, Cefic Director General, presented the vision of the chemical industry and Monica Frassoni, President of the European Alliance to Save Energy (EU-ASE), presented the views of the the business represented  by EU-ASE. Ms Frassoni acknowledged the energy saving potential in the building sector as well as the need of ambitious targets to provide the business community with the necessary regulatory long term framework to attract investments i the European Union and boost the energy efficiency market.

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Joint Breakfast debate: Common views on the Energy Efficiency potential in building and transport sectors

Enel and EU-ASE welcome the revision of the Directives on Energy Efficiency and Energy Performance of Buildings proposed within the Clean Energy for All Europeans package in view of setting an EU long-term framework for improving energy efficiency investments: key drivers of the low carbon economy transition. Buildings and transports offer a huge potential for efficiency gains: in-depth evaluation1 of the aggregated savings potentials in different sectors found that buildings and transport have the highest share for cost-effective energy savings, respectively 61% and 41%, followed by the tertiary sector (38%) and industry (26%).

In addition, in 2015 the International Energy Agency (IEA) estimated that, in Europe, approximately 70% of emissions cuts to stay below 2°C will need to come from energy efficiency which was described by the IEA itself as an energy source in its own right.

There is no technology gap and energy efficiency is a business opportunity not only for solution providers. Also the power sector, which has already come a long way in its transformation towards decarbonization, can be the key driver for further driving energy savings in these end-use sectors.

Enel and EU-ASE believe that an effective EU policy framework on energy efficiency should ensure predictability and security for investments, consistency, flexibility and market-driven cost-effectiveness, with a specific focus on the urban context where the majority of the population lives and significant co-benefits arise as improvement of air quality and minimization of related health risks.

Exploiting the synergies between the building and transport sectors and the electricity system means integrating efficient technologies and services through the smart grids, towards the development of smart cities.

BUILDINGS 

Citizens spend 90% of their lives inside buildings which currently account for 40% of EU primary energy demand and represent 36% of CO2 emissions. 9 out of every 10 of the existing buildings in the EU will still be standing and occupied by 2050 and 75% of them were constructed with low (or no) energy efficiency requirements. This is why existing buildings should be put at the center of the EU’s energy efficiency strategy by setting a reliable and coherent EU framework for the definition of national long-term renovation strategies for the entire building stock.

A reduction of energy consumption through energy efficiency measures must be prioritized to firmly apply the “Efficiency First” principle in building renovation, while boosting their integration as active players in the modern energy system.

Renovation strategies should be developed within each specific national energy transition context by planning in terms of districts and entire energy systems, rather than focusing only on individual buildings to reap the full potential of high-efficiency energy supply solutions and maximize the energy saving potential of the entire energy chain.

Digitalization will play a key role in managing and integrating renewable and distributed generation, while reducing energy consumption and empowering end-users towards energy efficient behaviours. Such market changes will be accelerated by the increasing ‘smart readiness’ of buildings able to respond to market signals through demand response. As a result, the role and value of transmission and distribution networks and infrastructure will surge. The change is not only technological but also cultural: operators, but also regulators will need to quickly evolve to meet the new challenges.

TRANSPORT 

Urban mobility accounts for 40% of all CO2 emissions of road transport. Electric vehicles (EV) are the solution to decarbonize transport, improve air quality and enhance energy efficiency as the efficiency of electric motors (80-90%) is much higher than the one of combustion engines (20-30%).

However, it is essential to stimulate their EU market penetration by removing the economic and non-economic barriers currently hindering a quicker uptake.

Smart grids play a crucial role within the EU’s decarbonisation process by supporting the development of e-mobility as well as a structural role in smart cities offering part of the infrastructure needed for the activation of new approaches of thinking and acting within urban ecosystem. On the demand side, smart grids and smart meters enable consumers to actively manage their own energy demand and put in place energy efficient behaviors. Demand side services provided by EV batteries and smart charging solutions can be a key catalyst for consumer’s empowerment, so important to drive energy savings.

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The vote you’ve never heard of – and why it can change Europe’s investment climate

A revision of the EU accounting rules on the treatment of public-private energy performance contracts would allow massive injections of investment into the EU economy. Yet, there is opposition from some national statistical offices — especially Germany –which have to take a position next week, writes Monica Frassoni.

Monica Frassoni is a former MEP and current President of the European Alliance to Save Energy.

Next week member states will make up their minds on whether or not EU accounting rules on the treatment of public-private energy performance contracts (EPCs) should be changed.

It is a high-stakes decision. A revision would allow massive injections of private sector investment into the EU economy. Yet, there is opposition from some national statistical offices, who have to take a position by 25 July.

 

At the moment there is an inconsistency in how rules are applied to public/private energy efficiency investments, which are considered ‘on balance sheet’, compared to public /private investment in highways and roads, which are ‘off balance sheet’.

Public sector bodies – cities, local authorities and mayors – currently have to class third party financing for energy efficiency improvements as public debt. This means they often have to turn down good projects or ‘bankrupt’ their books. The reform would unlock the doors on large amounts of private investment – for example, from banks or pension funds investing via energy service companies – with the investment repaid from the savings on energy bills.

This means they often have to turn down good projects or ‘bankrupt’ their books. The reform would unlock the doors on large amounts of private investment – for example, from banks or pension funds investing via energy service companies – with the investment repaid from the savings on energy bills.

This private money would flow into the EU economy, where it is vitally needed to fund warmer buildings, cheaper lighting, cleaner air and increased energy security for EU citizens – all at no risk to the public authorities. At the same time, it would be helping member states implement the Paris Agreement and meet the 2030 climate and energy goals at least cost.

Many EU member states are still experiencing low-growth, low-investment environments. The mantra everywhere is that attracting private sector investment into infrastructure and EU businesses will be key to driving a sustained economic recovery in Europe.

A very wide range of stakeholders, including EU Commissioners, municipalities, businesses, investors and civil society representatives agree that the reform of the accounting treatment of EPCs is one of the key barriers to close this investment gap.

Numerous examples of aborted energy efficiency investment in public buildings from Spain to Slovakia have been brought forward as evidence that a change is both proportionate and justified.

The arguments and evidence have been extensively considered and consulted upon within the statistical community. Eurostat has moved forward to suggest progressive solutions based around recognising energy services provided via EPCs as just that – energy services, with finance solutions and operational risk provided by private sector providers.

A group of progressive countries including France, Italy, Spain, Portugal and Ireland recognise the strategic importance of resolving the issue and are committed to moving forward from proposal to reality.

Yet not everybody seems to share the same positive idea. We hear European utilities – whose business models will be forced to a major change to accommodate the rise of a new services-based energy industry if the revision goes through – are actively lobbying against the change. The German statistical office seems to be listening to them. Others, like Sweden or Finland, seem also to be doubtful.

This is not some abstract academic issue. The USA already has an accounting system similar to the one proposed by Eurostat. The US energy services market is worth around $4-6 billion per year, compared to just €150m in the EU at the moment.

The recently published High-Level Expert Group on Sustainable Finance Interim Report singled out the EPC accounting rule issue out as an early priority to resolve, recognising it as a key ‘lever’ the EU can pull to quickly and effectively channel private sector finance to a simply vast investment opportunity that will create new employment opportunities for EU citizens working for EU firms delivering EU infrastructure.

In the aftermath of the financial and sovereign debt crises, and in the face of the very grave threat climate changes pose to our European way of life, all parts of the financial system need to change to deliver the sustainable economy we need. This includes the institutions that govern it.

National statistical offices must play an active role in helping create the new ‘rules of the game’ needed to underpin the EU’s transformation to a sustainable economy. We hope that in the days ahead they will vote for change.

 

Source: euractiv.com

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