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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Boosting energy-efficiency services markets for building renovation and system efficiency

The event promoted policy recommendations, solid business models and practical tools to uncap the full potential of energy-efficiency services market.

High-level speakers from the EU and international institutions discussed the legislative framework and market conditions for energy-efficiency services, including the current situation and policy outlook for the 2020 & 2030 horizons and beyond.

In particular, the event highlighted the cost-effective contribution of the current provision for the promotion of energy-efficiency services in art. 18 of the Energy Efficiency Directive to the achievement of the national ‘long-term renovation strategies’ proposed in art. 2a of the revised Energy Performance of Buildings Directive.

During the event, a number of practical examples were presented, showing how energy efficiency service solutions, such as energy performance contracts, can be successfully deployed in order to deliver a high degree of energy savings along with further results in terms of innovation and cost-efficiency. The presentations were given on a peer-to-peer basis by the clients and providers involved in the projects displayed.

The event was followed by the presentation of two practical tools for boosting the energy-efficiency services market elaborated within EU-funded projects: the European Code of Conduct for Energy Performance Contracting (EPC) and Quality Criteria for EPC.

The European Code of Conduct for EPC, established as part of the Transparense project in 2014, defines the basic values and principles that are considered fundamental for the successful preparation and implementation of EPC projects. It was developed in tight collaboration between actors of the European EPC sector: providers, clients and European associations representing energy services companies (ESCOs). Since it was released, it has been a reference document in the field of EPC and the number of its signatories still keeps growing.

Quality Criteria (technical and financial) for EPC are a new tool that will be developed within the QualitEE project, starting in mid-2017 under the H2020 programme. QualitEE aims at scaling up investment in energy-efficiency services by reducing complexity of such services and increasing the trust of clients and financial institutions in energy-efficiency service providers. Technical and financial Quality Criteria will therefore be developed to bring more clarity in Energy Performance Contracts, facilitating certification of energy efficiency services, thus fostering investment in this sector. QualitEE is going to complement the Energy Efficiency Financial Institutions Working Group (EEFIG) held by the European Commission.

The closing remarks by market practitioners provided another brief overview of the role of EPCs, their potential and existing barriers to their further development, as well as possible ways and ideas to tackle them.

The event brought together the main actors of energy-efficiency service market: policy makers; providers of energy-efficiency services (ESCOs), public and private clients: municipalities, industrial, commercial and residential sectors; technology providers, financial institutions, academia and other relevant actors interested in boosting the market.

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EU-ASE at the Informal Energy Council

Valletta, 18 May 2017 — At the Informal Energy Council in Malta today, top executives of leading companies urged EU Energy Ministers to increase ambition on energy efficiency. Member States are currently discussing the European Commission’s proposals for a Clean Energy Package, which includes proposals for a binding EU energy efficiency target.

At the opening session of the meeting, business representatives from the European Alliance to Save Energy (EU-ASE) urged Energy Ministers to keep the binding nature of the EU energy efficiency target for 2030, increase the level of ambition towards a 40% energy efficiency target and underpin it by dedicated policies and measures, without which an optimal framework for enhanced energy efficiency cannot be created. They also expressed concern on the recent proposals aiming at further weakening binding provisions aimed at achieving 1,5% saving annually among end-users (art.7), which would have very important consequences in terms of increased gas imports and costs for households.

While presenting cost-effective investments in energy efficiency, senior business representatives from Danfoss, Knauf Insulation, Philips Lighting, and Schneider Electric emphasised to Energy Ministers that the current revisions of the Energy Efficiency Directive (EED) and the Energy Performance of Buildings Directive (EPBD), both of which are included in the package, offer a unique opportunity to create a unique framework to drive economic market growth and job creation in the European Union. Energy Ministers were urged to carefully assess the social, political, economic and environmental potentials of key provisions in the directives under review.

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Fourth Annual EU-ASE High-Level Dinner Debate

How to realize the EU’s energy efficiency potential within the EU Climate and Energy Package 2030

Leading businesses call for an ambitious EU-wide binding energy savings target for 2030.

On 14 October 2014, a broad range of European companies, large and SMEs, operating in diverse sectors, gathered in the European Parliament for the Fourth Annual High-Level Dinner Debate, organized by the European Alliance to Save Energy (EU-ASE). Leading businesses called on EU Heads of State and Government, due to gather in Brussels for a European Council on 23 and 24 October, to support an ambitious EU wide binding energy savings target for 2030.

The creation of a fully functioning energy-efficiency market in the EU is currently being undermined by continuing uncertainty over the future legal framework for energy efficiency; notably the lack of long term targets. These would provide security for investment and create the conditions vital to innovation and the maintenance of our technical advantages. Under existing policies, two-thirds of economically viable energy efficiency potential available between now and 2035 will remain unrealized.

If fully exploited, energy efficiency could make EU GDP grow by 1.1%, but with current efforts by Member States, it is expected to be only 0.25%. The Fourth annual EU-ASE High-Level Dinner Debate therefore focuses on:

  • The role of a binding target for energy efficiency in anticipation of the final decision to be taken by the European Council in late October 2014 in the context of the EU Climate and Energy Package 2030;
  • The full realization of market potential of the companies involved.

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Third Annual EU-ASE High-Level Dinner Debate

Energy efficiency is at the heart the EU energy and climate framework for 2030 and EU regional policy 2014-2020

The European Commission and EU Member States must propose a post 2020 energy-and-climate strategy and plan the use of resources that the EU will make available through its multi-annual regional and cohesion policy.

On 23 September 2013, a large contingent of European companies gathered for the Fourth Annual High-level Dinner Debate, organized by the European Alliance to Save Energy. Over the next period, the European Commission and EU Member States have two very important tasks ahead:

  • To propose a post-2020 energy-and-climate strategy and to
  • To plan the use of resources the EU will make available through its multi-annual regional and cohesion policy

In this context, the progressive business community has an important role to play to ensure policy makers fully understand the potential of energy efficiency and embrace a long term vision for an energy efficient economy.The dinner debate was an opportunity to gather senior business representatives with high-level European decision-makers to:

  • Share views about the need to have a European binding energy savings target for 2030
  • Highlight where improvements in planning and expenditure of EU resources are required for the period 2014-2020

Together with some of the participants to the dinner and other business leaders, EU-ASE reiterated the call for an EU binding energy savings target for 2030 in a letter addressed to the Competitiveness Council, the European Parliament and European Commission. The text, issued on 11 October, is also available on this page.

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