Energy
IEA Efficiency
Update
AUSTRALIA Updated June 2003
BACKGROUND
Energy On 15 August 2002, the Australian government announced its agenda for the
and the development of a forward strategy on climate change, and elaborated the key
Environment elements on which that strategy will be based. The major aspects of this
announcement included:
The government’s commitment to develop and invest in domestic programmes
to meet the Kyoto target of limiting greenhouse emissions to 108% of 1990
levels over the period 2008 to 2012.
A climate change agenda focusing on the short term (next few years) and the
longer-term (20 to 30 years).
The development of the strategy to be supported and informed by dialogues
with state and territory governments, industry and community groups and
underpinned by four key elements:
− striving for a more comprehensive global response to climate change;
− maintaining a strong and internationally competitive economy with a lower
greenhouse signature;
− pursuing a policy balance between flexibility and certainty that allows key
decisions on investment and technology development, and also
emphasises cost-effectiveness; and
− policies and programmes that assist adaptation to the consequences of the
climate change that is already unavoidable.
The Ministerial Council on Energy (MCE), which comprises energy ministers from
all Australian States and Territories and the Commonwealth, was formed in June
2001. MCE’s objectives are:
To provide national oversight and co-ordination of policy development to
address the opportunities and challenges facing Australia's energy sector into
the future.
To provide national leadership so that consideration of broader convergence
issues and environmental impacts are effectively integrated into energy sector
decision-making.
As a further commitment to progressing energy efficiency, MCE established the
Energy Efficiency and Greenhouse Working Group, which consists of all Australian
jurisdictions. The group’s charter is to provide strategic advice on policy direction
and programme delivery to significantly enhance energy end-use efficiency. A key
task for the group is the development of a comprehensive National Framework for
Energy Efficiency.
National As a commitment to progressing energy efficiency in Australia, all jurisdictions are
Framework on currently developing a co-operative National Framework for Energy Efficiency.
Energy Efficiency
While all Australian jurisdictions have made a considerable contribution to the
facilitation of improved energy efficiency, there is still significant potential for further
co-ordination and enhancement. In particular, a more co-ordinated national
approach to energy efficiency will avoid unnecessary duplication; identify existing
and potential gaps; and maximise the impact and effectiveness of resources
dedicated to energy efficiency across jurisdictions.
The objective of the Framework is to achieve a sustained, measurable
improvement in Australia’s energy efficiency. The Framework will focus on
approaches to achieve net economic benefits and improve the efficiency and
competitiveness of the Australian economy; stimulate investment in sustainable
industries; and help reduce Australia’s environmental impacts.
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The Framework will be strategic in focus and developed co-operatively with all
jurisdictions and key stakeholders. Delivery and implementation will be targeted at
the most appropriate level and will take into consideration the individual
circumstance of particular regions and jurisdictions.
The development of the Framework will include:
Analysis of energy end-use in Australia.
Assessment of current government energy efficiency programmes.
Assessment of what energy efficiency improvements are technically viable
within realistic timeframes.
Barriers to realising energy efficiency potential.
Financial modelling to evaluate the commercial viability of energy efficiency
investment.
Economic modelling to determine the economic viability and impact of different
energy efficiency scenarios and recommendations for programmes, initiatives
and policy.
Completion of the Framework is expected towards the end of 2003.
Institutional Australia is a federation of six states and two territories. The Commonwealth
Framework government has limited constitutional powers in relation to many aspects of the
energy economy. Local governments have responsibility for implementing planning
policies and regulations which have an impact on energy use and efficiency at local
level. This covers areas such as urban design, road planning, etc., planning
regulations which effect energy efficiency in houses and businesses, and in waste
management and utilities. These can have large-scale implications for energy use
and consequent environmental impacts at the local, national and global levels. A
number of programmes administered through the Commonwealth's AGO
(Australian greenhouse Office) aimed at improving energy efficiency, are managed
through local governments.
RESIDENTIAL/
COMMERCIAL
Energy As part of the National Greenhouse Strategy, governments have introduced
Efficiency minimum energy performance standards (MEPS) for refrigerators, freezers, three-
Standards phase motors and air-conditioners and electric storage water heaters. These
standards have been developed in consultation with the manufacturing industry
and agreed by the Ministerial Council on Energy.
The development of minimum energy performance standards for other products
during 2002–2004 has been announced in published plans. New MEPS are being
considered for electric lamps, distribution transformers, air-conditioners, electric
motors and commercial refrigeration.
The National Appliance & Equipment Energy Efficiency Committee (NAEEEC)
regularly commissions studies to project the energy saving and greenhouse
abatement expected to be saved as a result of regulatory decisions made under
the National Appliance & Equipment Energy Efficiency Programme (NAEEEP). The
latest report entitled “When you can measure it, you know something about it”
(projected impacts 2000-2020) covers only those programmes that are generally
implemented on a mandatory basis: energy labelling and MEPS. It reviews the
likely impacts of labelling and MEPS for a wide range of household, commercial
and industrial appliances and equipment. The combined projected greenhouse gas
impact of all programmes covered in this study is 134 million tonnes carbon dioxide
equivalent (Mt CO 2-e) below business-as-usual over the period 2003-2018. The
average impact during the Kyoto Protocol Commitment period 2008 to 2012 is
estimated to be about 8.2 Mt CO2-e per annum reduction below business-as-usual.
The projected impact is 13.3 Mt CO2-e per annum by 2015 and 14.9 Mt CO2-e per
2
annum by 2020. The programme is expected to save purchasers over A$4 billion1
by 2018. More information can be found at:
www.greenhouse.gov.au/energyefficiency/appliances/meps/
Building Codes
Mandatory In March 1999, following wide consultation, the federal government and the
Energy Efficiency building industry reached agreement on a comprehensive strategy aimed at making
Standards for Australian buildings more energy-efficient. This two-pronged strategy
Buildings encompasses, on the one hand, Commonwealth government and building industry
support for voluntary best practices in building design, construction and operation,
and the elimination of worst energy performance practices on the other hand by
incorporating a single standard for minimum performance requirements into the
Building Code of Australia (BCA).
Work has begun on developments to define an acceptable minimum level of energy
efficiency for new buildings throughout Australia to eliminate worst practice within
the industry. Energy efficiency provisions for housing were to be incorporated into
the BCA on 1 January 2003, with provisions for commercial and public buildings
introduced in 2004.
A comprehensive industry education and training programme is being developed to
prepare the building industry for introduction of mandatory minimum performance
requirements.
The AGO estimated in 1999 that in the absence of any such measures, the energy
consumption of residential buildings could grow by 40% between 1990 and 2010,
leading to a 17% increase in greenhouse gas emissions. The energy use in non-
residential buildings could even increase by 91%, leading to a 94% growth in CO2
equivalent emissions, or 62.8 million tonnes of CO2 equivalent from commercial
buildings alone in 2010.
Energy Under the National Greenhouse Strategy, governments developed, in consultation
Labelling with industry, a national scheme for mandatory energy labelling for major domestic
appliances. Six appliance types have been labelled since 1992 (refrigerators
freezers, clothes washers and dryers, dishwashers and air-conditioners). A
revision of energy labels for all major domestic appliances was completed in 2001.
Australia is the first nation to effectively rebase its labelling scheme. The Australian
label has been used as an example of label best practice by CLASP, a UN funded
NGO which promotes label schemes to developing countries and it has been used
by the Indian government as the model for that nation’s scheme.
The Australian Gas Association (AGA), together with the Gas Appliance
Manufacturers Association of Australia, developed voluntary energy labelling and
minimum performance programmes for the two main gas-using appliances (gas
water heating systems and space heaters) in Australia. The AGA is recognised as
a standard-setting body for gas issues and the energy programmes have been
designed to comply with these standards. While participation in the labelling
programme is notionally voluntary, all appliances comply as all suppliers are
members of these associations.
Australia’s Standby power is the energy used by an appliance while it is plugged in but not
Standby actually carrying out its central function. In Australia, standby power consumption
Power Strategy generally accounts for over 10% of Australia’s household electricity usage, costing
2002-2012 more than A$500 million and generating more than 5 million tonnes of carbon
dioxide per annum. This is equivalent to the greenhouse impact of more than
1 million cars.
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On average, in 2002 A$1 = US$0.543.
3
In August 2000, all Australian governments agreed to pursue efficiencies in
standby power consumption and the “1 Watt” target for appliances under the
banner of the IEA standby power initiative. In its publication ”Things that Go Blip in
the Night”, the IEA advocates that members develop long-term plans to reduce
standby over time, a recommendation that Australian jurisdictions have embraced.
In a process throughout 2002, government agencies consulted with stakeholders
about ideas to reduce standby: the Strategy is a result of that dialogue.
The Strategy is being developed through a process which potentially has two
stages. This staged approach will provide the opportunity firstly to identify the
products that need attention and, secondly, provide industry with the opportunity to
develop voluntary measures to address standby for the product, and then move to
more interventionist measures (mandatory actions) if and when necessary.
Stage 1 -- Profiles: identification of major product groups and initial actions (as
short as one year and as long as five years):
All key products will have a product profile prepared which outlines its current
status with respect to standby power. Australian governments will announce the
standby target for each product in the product profile. Generally, this target will
be the Energy Star level promoted by the US Environmental Protection Agency
or some other previously identified internationally accepted level. The standby
target will be included in the relevant Australian Standard to ensure all
stockholders have a reasonable opportunity to become aware of the target level
and compliances dates. NAEEEC will continue benchmarking surveys each
year and gather other market intelligence to monitor standby levels. The data
will be used to measure improvement for each product and build on the existing
data sources and analysis. This monitoring function will be assisted by industry
agreements where suppliers agree to supply government agencies with standby
levels for relevant products. A formal review of progress will be undertaken once
milestones have been reached. A review will generally result in either “a positive
result”, meaning that reasonable progress has been made to date and that
voluntary measures in place can continue as proposed, or a “negative result”
meaning that insufficient progress has been made (or is unlikely to be made)
and that specific mandatory measures under Stage 2 will be necessary.
Initially 40 product types have identified savings of 36 Mt over 15 years.
Stage 2 -- Mandatory Action Plans: escalating Government Action (one to five
year process)
Stage 2 seeks to impose mandatory measure. Government would move to
regulatory intervention ONLY:
1. Where progress by voluntary measures is shown to be inadequate (i.e. a
negative review at the end of Stage 1); or
2. The potential for excessive standby is well documented from overseas
experience and that regulation appears to be warranted as a pre-emptive
measure or voluntary measures are unlikely to be effective; and
3. The Ministerial Council of Energy accepts that regulation is necessary to
achieve the standby target.
Any regulatory action would be subject to the usual processes of economic
analyses (cost-benefit analysis and public consultation) and would only proceed if it
is in the public interest and complies with governmental regulatory requirements.
Mandatory measures can be withdrawn if it shown that the relevant industry is
responding to standby targets set for Stage 2 or making significant progress toward
those targets.
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House Governments have agreed to implement a consistent Nation-wide House Energy
Energy Rating Scheme (NatHERS). The scheme provides householders with a means of
Rating assessing energy efficiency of houses and thereby assists in making more
informed choices about housing purchases and renovation. The national scheme
and several state-based rating schemes will be co-ordinated to ensure consistency.
A graded five-star rating system is used, with the most energy-efficient dwellings
receiving the highest number of stars. Implementation of the scheme rests with the
state and territory governments who can decide whether or not to make the
scheme mandatory. The Australian Capital Territory has a requirement that all new
houses achieve at least a four-star rating. Victoria has recently announced that all
new residential buildings will soon have to have a five star energy rating.
Mandatory energy efficiency measures for houses were introduced in the Building
Code of Australia on 1 January 2003. However, the measures were not adopted in
all States and Territories at that time, as some administrations need time to resolve
administrative issues, including reconciling building control and planning
requirements. These changes will make homes more energy-efficient and save
greenhouse gas emissions.
Windows In 2001 the window and glazing industry, supported by the Commonwealth
Energy government, launched a system of energy performance labelling for window
Rating products called the Window Energy Rating Scheme (WERS). The scheme, which
Scheme delivers both an energy performance label for consumers and backup technical
support for industry members, was designed to inform consumers and influence
purchase decisions.
WERS is used by product manufacturers in their promotional campaigns to
establish differentiation in the market and encourage the increased use of high
performance glazing.
Education, In 2002, the Commonwealth government, several state governments, and the
Training building and design industries jointly developed and published Australia’s most
and Public comprehensive guide to environmentally sustainable housing titled Your Home.
Awareness
The Your Home suite of materials includes a Consumer Guide to raise awareness
and a Technical Manual for building professionals and interested owner builders.
The Your Home Technical Manual has become the principal reference guide for
building industry education and training programmes.
Your Home materials are also used in tertiary education for architecture,
environment design, and building courses.
State and territory governments have focused on their own communities and areas
of responsibility to raise public awareness both on energy efficiency and
environment protection. Activities undertaken include the production of booklets,
journals, books, web sites, demonstration projects and training programmes; some
local governments are active in producing publications aimed at increasing public
awareness of energy efficiency and environmental issues.
PUBLIC SECTOR The Commonwealth government has made a commitment to lead by example in
ensuring that its own procurement practices and operations maximise energy
efficiency. State and territory governments are implementing similar programmes.
Government The Australian government is committed to reducing the intensity of energy use in
Energy Commonwealth operations, with a consequent reduction in economic costs and
Efficiency greenhouse gas emissions. Annual whole-of-government energy reports are
Actions tabled in Parliament and made available to the public. The reports show total
energy used by Commonwealth departments and agencies, the intensity of energy
use and associated greenhouse gas emissions.
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The fourth annual report, Energy Use in Commonwealth Operations 2000-01,
showed a 10% reduction in total energy consumption and a 10% reduction in
associated greenhouse gas emissions largely as a result of reduced energy
intensities of government operations.
Under the policy for improving energy efficiency in government operations
introduced in 1997, budget dependent agencies are required to submit energy
consumption data annually to the Department of Industry, Tourism and Resources
(ITR). Energy intensities, such as MJ/person, MJ/square metre and MJ/kilometre,
are calculated and used to track changes in energy performance over time to allow
simple comparisons to be made between similar facilities. All agencies covered by
the policy are required to meet energy efficiency targets by 2002/3.
Other measures include mandatory minimum energy intensity levels for new and
refurbished buildings, and office equipment and appliances, the requirement that
new building leases increase the incentive for building owners to improve building
energy efficiency, regular energy audits of building space with implementation of
cost-effective recommendations, and the application of minimum energy
performance standards for new houses, with an energy review of existing stock.
New fuel efficiency levels for the government vehicle fleet will be announced in
early 2001.
Government bodies not specifically covered by the policy are encouraged to adopt
the policy measures. The success to date of the central government approach has
encouraged states and territories to adopt similar measures in energy reporting,
and a national government energy data reporting system has been developed by
ITR, in co-operation with the other government jurisdictions.
Local Cities for Climate Protection™- Australia assists local governments and their
Governments communities reduce greenhouse gas emissions. The programme is funded through
a commitment of A$13 million over five years, made by the Prime Minister in his
statement, Safeguarding the Future, in November 1997. CCP™ is an international
trade-marked programme of the International Council for Local Environmental
Initiatives (ICLEI) delivered in collaboration with the AGO, under which councils
commit to progress through five milestones with the aim of reducing greenhouse
gas emissions. Councils that join the programme are provided with assistance,
information and incentive programmes to design approaches to reduce greenhouse
gas emissions and understand the potential impacts of climate change. With
programmes running in a number of countries, Australia has taken the lead.
CCP™ Australia now has over 160 local governments representing over 63% of
the Australian population – the most of any country. This also represents nearly
30% of local government members worldwide.
INDUSTRY
Greenhouse The Greenhouse Challenge, announced in 1995, is a joint voluntary initiative
Challenge between the Commonwealth government and industry to abate greenhouse gas
Programme emissions. The Greenhouse Challenge programme was extended through the
1997 Safeguarding the Future statement. Included in the A$180 million package
was an additional A$27.1 million over five years for the Greenhouse Challenge
programme.
The Greenhouse Challenge programme consists of three phases:
The commitment (a contract between the Commonwealth government and an
industrial company).
The co-operative agreement.
Performance reporting.
The co-operative agreement includes an inventory of emissions, an action plan with
specific actions to minimise emissions, performance indicators to measure
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progress, and a forecast of expected abatement of emissions over a set time
period. The programme also provides information to members, including technical
advice on how to identify, monitor and mitigate emissions in each sector, a
workbook to assist participants in developing their co-operative agreement, and
workshops and seminars on technical issues and greenhouse actions.
Participating organisations amount to 418 members with 250 signed agreements.
Another 288 organisations had indicated through Letters of Intent their desire to
join the programme. The Greenhouse Challenge achieved emissions abatement of
23.5 million tonnes of CO2 equivalent in the year 2000.
The Challenge has almost total emissions coverage in a number of energy-
intensive sectors, including electricity generation and distribution, and oil and gas
extraction. The Challenge also has good coverage of a number of manufacturing
sub-sectors such as machinery and metals manufacturing, iron and steel and
aluminium and cement. In 2000, it was estimated that 45% of Australia's industrial
greenhouse gas emissions were covered by the Greenhouse Challenge
programme.
An independent evaluation of the programme undertaken in 1999 recommended
that the Greenhouse Challenge be continued as a collaborative initiative, with
particular focus on expanding into less well represented sectors and focusing on
major emission sources. Specific opportunities for improvement were identified in
recruitment strategies, technical support and reporting.
The report demonstrated that the Challenge has been effective in achieving
greenhouse gas emission abatement and in building the capacity of both
government and industry to identify, monitor, manage and report greenhouse gas
emissions. The Greenhouse Challenge has demonstrated that it is a flexible
programme that can remain effective in a changing environment.
Australia Post is the country's largest retail network, with more than 4 000 outlets.
Through its Greenhouse Challenge membership, Australia Post introduced a large
number of energy efficiency measures. In the first year, the organisation expected
a 1.8% reduction in its greenhouse emissions, and a forecast target of 3% by 2005.
But the results exceeded forecasts. Australia Post achieved a 14.9% reduction in
its first reporting, saving about 50 000 tonnes of CO2 equivalent and an estimated
A$3 million a year.
The Greenhouse Challenge programme was expanded in 1997 to include
hundreds of smaller companies through another programme called Greenhouse
Allies. Under this programme, large Greenhouse Challenge members mentor
smaller firms through a group process to help them reduce their emissions.
Energy Efficiency The Energy Efficiency Best Practice (EEBP) Programme launched by the
Best Practice Commonwealth government in mid-1998 assists targeted industries to reduce their
Programme greenhouse gas emissions while also reducing costs and increasing productivity
through improving energy efficiency. A$10.3 million has been allocated by the
government over a five-year period 1998-2003 to support the programme.
EEBP’s major focus is on innovation and training, applying strategies that have the
potential to identify efficiency improvements of up to 50% in key energy-using
processes:
Through innovation, EEBP brings together expertise from technology, industry
and research to provide a lateral, systems-based approach to specific
processes and provides the participating company with support to implement
the opportunities identified.
Through training, EEBP provides practical skills to all levels of a company,
enabling them to develop the internal capacity sufficient to effectively manage
and improve the energy efficiency of their operations.
7
The programme is currently undertaking both sectoral and cross-sectoral work in a
number of areas identified as having opportunities for cost-effective improvements
in energy efficiency. Sectors engaged in the innovation and training aspects of the
programme include bread baking, supermarkets, resource processing, beverage
and containers manufacturing, wine making and dairy production. Energy efficiency
products include a range of promotional and advisory materials, information
dissemination and bench-marking tools (hotels and aluminium sectors). Cross-
sectoral activities include the development of products relating to motors, energy
performance contracting and vehicle fleet management.
EEBP has succeeded in promoting and implementing a range of strategies with
participating sectors. Achievements over the past months include:
In the baking sector, EEBP facilitated the development and launch of a
showcase best practice bakery with improvements to building fit-out, equipment
efficiency and practices targeted at reducing energy use and greenhouse gas
emissions by 40%.
EEBP strategies incorporated in the beverage making sector have resulted in
substantial reductions in process energy usage. For example, a major brewer
has achieved 35% reduction in refrigeration energy consumption and is aiming
to roll out energy management training in all its national operations. A major
soft drink manufacturer in implementing energy savings of up to 20% in a filling
and refrigeration process and a large malt producer has also achieved a 12%
reduction across its company wide energy budget.
Five of the major wineries covering over 60% of Australian production have
participated in the programme and are implementing actions that are estimated
to save between 9% and 43% in process energy applications.
A partnership between EEBP and the Australian Fleet Management
Association (AFMA), Greener Motoring, identifies how managers of fleet
vehicles can reduce fuel consumption by at least 15%, through successfully
demonstrated fleet management practices. The Greener Motoring programme
has been targeted at 5 000 organisations representing 65% of the vehicle fleet
sector. To date 307 organisations which collectively manage 400 000 vehicles,
have registered with the Greener Motoring programme. Fifteen of these
organisations have recently been awarded certificate for achieving greater than
10% emissions savings.
A Best Practice Guide (BPG) to Energy Performance Contracts (EPC) has
been developed and distributed to over 2 000 organisations. State government
programmes are actively promoting the uptake of EPC by state and local
government agencies.
Energy efficiency has been incorporated into a technology roadmap process for
alumina refining, which identified the technologies, innovation and R&D needed
over the next two decades to respond to the pressures of greenhouse and
waste minimisation.
The programme and its activities are communicated through the programme's
Website, bimonthly newsletter, stakeholder seminars and presentations to
governments, key users and industry stakeholders.
An independent full-term review of the programme has been conducted, finding the
programme to be cost-effective and saving 1.2 Mt CO2 and A$74.6 million in
energy costs by 2010 assuming the planned actions are implemented.
Generator The Voluntary Efficiency Guidelines For Power Generation was launched in the
Efficiency Prime Minister's 1997 Safeguarding the Future statement and subsequently
Standards (GES) incorporated into the National Greenhouse Strategy. The measure was developed
in recognition of the fact that power generation is responsible for more than a third
of national greenhouse gas emissions (excluding change of land use). Design of
the Guidelines, subsequently referred to as the Generator Efficiency Standards
(GES) has been completed and agreed by governments. Based on the model
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developed by the Efficiency Standards Working Group (ESWG), the government
introduced on 1st July 2000 efficiency guidelines for power generators using fossil
fuels. The standards apply to new power plants (approved after 30 June 2000) and
existing power generators above a minimum threshold on a case-by-case basis.
This includes grid-connected power stations, off-grid plant or auto-generators. The
minimum threshold is 30 MW capacity, 50 GWh electrical output, and a capacity
factor of 5% or more in each of the last three years. Approximately 65% of energy
generation capacity in Australia is covered by the GES programme. It is proposed
that the measure be implemented through legally-binding, five-year agreements
between the Commonwealth and power generators.
The contract specifies the approach generators should take in identifying and
undertaking agreed actions that improve plant efficiency and reduce greenhouse
gas intensity. Generators first sign the agreement. Then they calculate the best
practice performance band and current performance of the plant and submit this
information, together with a menu of options, to the government for agreement,
within six months of signing. The menu of options outlines potential improvements
for the plant.
The generators must monitor their performance and report to the AGO (Australian
Greenhouse Office) on a regular basis. The standards are reviewed every five
years. The measure is expected to save about 4 million tonnes of CO2 equivalent a
year during the first commitment period under the Kyoto Protocol.
Energy Some energy utilities have distributed information material on climate change,
Utilities developed energy efficiency promotional campaigns, conducted building energy
Information management seminars and provided consumer advice.
TRANSPORT
Transport In May 2000, the Australian Transport Council (ATC) directed the National
Policy Transport Secretariat (NTS) to work with Commonwealth, state and territory
Framework transport agencies to develop a long term strategy for reducing greenhouse
emissions across the transport sector.
The ATC provides a forum for Commonwealth, state, territory and New Zealand
transport ministers to maximise the contribution of effective transport to Australia’s
productivity, quality of life and equity.
Ministers requested that particular attention be paid to the impact of urban traffic on
greenhouse emissions and to develop an integrated national approach. The
Strategy Lowering Emissions from Urban Traffic – An Integrated National Action
Plan responds to that request. The strategy may be viewed at
www.nts.gov.au/environment .
The transport sector needs to make significant changes in order to implement a
strategic and co-ordinated programme that will result in lowered emissions across
the sector. The ATC, as a group that provides leadership and co-ordination of the
transport system, is well placed to facilitate these changes.
National The government is continuing to work with the automotive industry towards
Average Fuel reaching agreement on a satisfactory national average fuel consumption target for
Consumption passenger vehicles for 2010. The negotiations are being carried out in line with the
Target Prime Minister's call for an improvement of 15% over business-as-usual average
fuel consumption for new passenger vehicles by 2010 that was outlined in the 1997
statement Safeguarding the Future: Australia's Response to Climate Change.
Fuel Consumption Label
A mandatory, model-specific fuel consumption labelling scheme for new passenger
cars commenced in January 2001. The scheme will be expanded to include a wider
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range of vehicles in July 2003. The revised label will also show how much carbon
dioxide is emitted by each vehicle.
Government The government has undertaken to develop options for challenging but realistic fuel
Vehicle efficiency targets from 2003 for government car fleets. A number of states have
Fleets introduced initiatives to improve the efficiency of government fleets. The Victorian
Greenhouse Strategy 2002 sets a target of reducing greenhouse gas emissions
from the government passenger fleet by 10% by 2006. In July 2002, the New South
Wales government placed the world's second largest order for hybrid vehicles with
a decision to buy 200 Toyota Prius sedans. The state's Prius fleet -- second only to
New York City's 300 -- will save NSW taxpayers an estimated A$550 000 in fuel
costs over the next two years. The ACT Government Greenhouse Strategy
released in 1999 stated that the government will aim to reduce the greenhouse gas
emissions from the operation of its vehicle fleet by a further 15% by 2008.
The Energy Efficiency Best Practice Programme is also targeting vehicle fleets
(see separate section on EEBP).
Fuel Consumption Guide.
The government produces an annual Fuel Consumption Guide, providing reliable
comparative data of the fuel consumption of new passenger cars and some classes
of four wheel drives and light commercial vehicles. The Guide, available on the
Internet at www.greenhouse.gov.au/transport/fuelguide , helps consumers choose
the most fuel-efficient vehicle for their needs.
Green Vehicle Guide
In January 2002, the Motor Vehicle Environment Council, in consultation with the
Commonwealth Department of Transport and Regional Services released a
proposal for an Australian "green vehicle guide". The internet-based guide will
provide information to consumers on the environmental performance of motor
vehicles, including noxious and greenhouse emissions. The guide is expected to
become available in 2003.
Integrated The Australian government has released a green paper on fundamental land
Transport transport infrastructure reform, AusLink: Towards the National Land Transport
Planning Plan.
AusLink will result in the development of a more sustainable and higher performing
national transport network. It will also improve transport links across regional
Australia, with funding specially earmarked for regional areas.
The green paper proposes:
Establishing an integrated National Land Transport Network -- transport
links of strategic national importance, such as rail and road connections
between cities and to major ports and airports.
Developing a National Land Transport Plan -- a rolling five-year national plan
with participation from the community, industry and all governments. A longer-
term planning horizon of up to 20 years will be used to expand our
understanding of the challenges our country will face.
Establishing a national advisory body -- of public and private sector experts
to provide transport ministers with strategic analysis and advice on priorities for
national infrastructure investment, reforms to support intermodal integration and
infrastructure pricing.
Generating the best ideas -- expanding the range of organisations able to
propose projects for Commonwealth funding, including state and territory
governments, local councils, the private sector, user organisations, regional
development bodies and community organisations.
Funding the best solutions -- widening the range of solutions eligible for
Commonwealth funding, including new technology that can lead to better
management and pricing.
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Employing a consistent approach to funding -- establishing a single, flexible
funding programme to replace the separate programmes for different transport
modes. It will help to direct funds to the best projects. Regional funding will be
earmarked.
Encouraging reciprocal responsibility -- encouraging the joint and
complementary development and funding of projects between governments,
and with the private sector, to increase the level of available funding.
The AusLink Green Paper is open for comment until 7 February 2003 and will be
supported by a series of consultation meetings in metropolitan and regional
Australia. The government will release a formal policy statement, or white paper,
next year. AusLink will commence from July 2004.
Further For further information, please contact:
information
Ian Cronshaw
General Manager,
Domestic Energy Policy Branch
Energy and Environment Division
Department of Industry, Tourism and Resources
Canberra
Tel: +61 (2) 6213 7879
Fax: +61 (2) 6213 7902
E-mail: Ian.Cronshaw@industry.gov.au
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Energy
IEA Efficiency
Update
Updated June 2003
AUSTRIA
BACKGROUND
Energy The Energy Report 1993 of the federal government was agreed upon in the
Report Ministerial Council in May 1993 and adopted by the National Council after due
1993 and consideration on 6 April 1994. It laid down the goals for Austrian energy
1996 policy which remain unchanged. These are:
Security of supply.
Cost-efficiency of the energy supply.
Environmentally benign energy supply.
Social acceptability of the energy supply system.
In order to achieve these objectives the federal government especially makes
use of the following strategies:
Promotion of the rational use of energy (improvements in energy
efficiency).
Promotion of renewable sources of energy.
Energy Austria ratified the United Nations Framework Convention on Climate Change
and the (UNFCCC) on 28 February 1994. The Convention entered into force globally
Environment on 21 March 1994 and for Austria on 29 May 1994. The first National
Communication entitled National Climate Report of the Austrian Federal
Government in compliance with the obligations under Articles 4.2 and 12 of
the Framework Convention on Climate Change, Vienna, was issued in August
1994.
Austria supports the UNFCCC climate change policies. The government had
committed itself in all official reports to a national target of a 20% reduction of
CO2 emissions by 2005, based on 1988 emissions. Meanwhile, the target has
been adapted to the Kyoto Protocol under the UN Framework Convention on
Climate Change, where the European Union as a whole has taken on the
commitment of an 8% reduction of the greenhouse gases CO2, CH4, N2O,
HFCs, PFCs and SF6 until the commitment period from 2008 to 2012. The
percentage reduction is based on the emissions of 1990 (for CO2, CH4, N2O)
and 1990 or 1995 (for HFCs, PFCs, SF6). The EU Member States have
thereafter agreed on individual reduction targets for each Member State.
According to the so-called "Burden sharing-agreement“1 Austria is committed
to reduce greenhouse gas emissions by 13% below 1990 levels by the time of
the first commitment period 2008-2012.
Total Austrian GHG emissions have risen 2.7% from 1990 to 1999, so the
country must now reduce emissions slightly more than 15% from 1999 levels
in order to meet the Kyoto Protocol commitments. The Austrian Parliament
ratified this Protocol in March 2002 and the EU as a whole ratified it in May
2002, making the country's commitment to GHG emissions targets legally
binding.
The Second National Climate Report of the Austrian Federal Government was
published in September 1997 in compliance with the UNFCCC obligations.
Austria's Third National Communication to the UNFCCC was finalised in
November 2001. It described in detail the National Climate Strategy (Strategie
Österreichs zur Erreichung des Kyoto-Zieles -- Klimastrategie 2000 --
2008/2012) (see below).
1
The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
1
Energy related measures are described in several sections of Chapter 4 of the
Third National Communication. They are related to minimum thermal
standards for buildings, thermal insulation of dwellings and support schemes
for energy efficient constructions and the use of renewable energy in new
buildings (see below).
The National The National Environmental Plan (NUP) of the federal government was
Environment adopted in 1995 and provided Austria with a long-term concept and integrates
Plan (NUP) these environmental commitments at all political levels — industrial policy,
energy policy, agricultural policy and technology policy. In this plan, the major
energy related targets were defined as further advances in energy efficiency
and a continuing shift to renewable energy sources.
Klimastrategie In response to climate change challenges, Austria has recently developed the
2000-2008/2012 "Strategie Österreichs zur Erreichung des Kyoto-Zieles- Klimastrategie 2000-
2008/2012"; this report builds on the ideas and structures outlined in Austria’s
Third National Climate Report submitted to the UNFCCC by the federal
government in November 2001. It is based on the study “Kyoto-Optionen-
Analyse” by the "Österreichische Kommunalkredit“; this study built upon work
of the Austrian Council on Climate Change (ACCC) (especially the "Kyoto
Technology Package“, which had been proposed as a follow-up to the
"Austrian Toronto Technology Programme“) as well as related studies from
the business and industry sector and took into account the views of different
stakeholders on costs and effects. This is a comprehensive strategy which
lays out a series of measures intended to curb the country’s GHG by 13%
below 1990 levels by 2008-2012, as stipulated in the EU burden-sharing. The
Klimastrategie was released in early 2002 and co-ordinated by the Federal
Ministry of Agriculture, Forestry, Environment and Water Management which
has responsibility for overall energy policy with respect to climate change.
The plan was developed as part of a consultative process among the relevant
ministries at the federal level as well as with representatives of all nine Länder
and calls for a variety of measures at the federal, Länder, and municipal level.
Responsibility for the implementation of the Klimastrategie is shared amongst
various federal and Länder government institutions.
Austrian policies and measures designed to achieve the GHG emissions
reductions required by the Kyoto Protocol which are mainly related to energy
efficiency are broken down into seven different categories. These are clearly
laid out in the Klimastrategie (Climate Strategy) and the country’s third
communication to the UNFCCC. The categories of measures are listed below
along with the country’s expectation of how much emissions reduction each
set of policies will achieve. The sum of annual emissions reduction from the
combined measures listed below would be 13.85 Mt of CO2-equivalent, an
amount approximately 1.65 Mt more than Austria’s required reduction from
2000 levels in order to meet Kyoto.
Space Heating and Small Consumption
This category involves the following activity types:
Thermal improvement of existing building stock.
Enhanced technical standards for new buildings.
Increasing share of renewable energy sources and district heating.
Increasing boiler efficiency.
Switching to fuels with lower (fossil) carbon content.
Demand-side measures to reduce electricity demand.
2
Measures in this category are expected to reduce CO2 emissions by 4 million
2
tons per annum once fully implemented.
Energy Supply
This category deals with all measures related to energy supply with activities
falling under one of the following headings:
The role of renewable energy sources and efficient district heating
systems.
Electricity production and various means of supporting non-polluting
electricity generating systems that are not currently commercially
competitive in a liberalised market.
Heat production in the form of maximising benefits of indigenous biomass
resources.
Cross-cutting measures which would include energy-related taxes and
earmarking for climate change related measures, and intra-national GHG
emissions trading schemes.
Measures in this category are expected to reduce CO2–equivalent emissions
by 2.1 million tons per annum once fully implemented.
Transport
This category includes measures to curb emissions from all modes of Austrian
transport. Activities include:
Financial instruments for motor vehicles (i.e. fuel consumption based
registration taxes and road tolls).
Regional and urban rail transport investments.
Improvement of fuel quality and promotion of bio-diesel.
“Car free” tourism projects (e.g. building public transportation at heavily-
frequented tourism locations).
Technology innovation.
Traffic management, reducing speed limits, and improvement of spatial
planning.
Measures in this category are expected to reduce emissions by 3.7 million
tons of CO2 equivalent per annum once fully implemented.
Industry
Austria has experienced a degree of uncoupling of its production output and
its energy demand over the last 20 years. Overall GHG emissions from
industry accounted for 22 Mt in 1980 were flat throughout much of the early
1990s and have shown a slight increase since 1997. Policies and measures
for the manufacturing industry, therefore, aim at supporting a continuation of
efforts undertaken by companies. Such policies encourage the use of
renewable energies, greater energy efficiency, and the implementation of an
emission trading regime. They are expected to produce GHG emission
reductions of 1.25 million tons of CO2 equivalent per annum once fully
implemented.
For more information on the Climate Strategy, see: http://www.accc.at/pdf/klima-
english.pdf
2
The emissions reduction effects from demand-side measures have been included in the Energy Supply
category in order to avoid double counting.
3
In the 2002 in-depth review of the energy policies of Austria, the IEA stated:
The Government of Austria should:
• Conduct regular monitoring of the implementation and actual emission
reductions of the proposed Klimastrategie measures under close co-
ordination between relevant ministries and between the public and private
sectors.
• Revisit the cost-effectiveness of various Klimastrategie policies as cost
experience is gained through their implementation
Austrian Strategy The government has recently announced plans to accelerate the reduction in
For Sustainable its national energy intensity. In April 2002, the government published the
Development Austrian Strategy for Sustainable Development (Die Österreichische Strategie
zur Nachhaltigen Entwicklung) which establishes goals for the further
reduction of the country’s energy intensity (defined as national TPES per unit
of GDP). The country is aiming for an average improvement of energy
intensity of 1% per year beyond the normal improvements in this area that can
be expected without any explicit policy initiatives. The report defines this
normal energy intensity improvement to be the average EU decrease of
energy intensity in the time period 1990-1997, which it estimates as 0.6%
annually. Therefore the total energy intensity improvement target is 1.6%
annually. Such a target is identical to that put forward by the European
Council for all EU countries in their resolution on energy efficiency issued on
7 December 1998.
For more information on Sustainable Development:
http://www.nachhaltigwirtschaften.at/english/index.html
Policy of the new Federal Government
The new Federal government which was sworn in on 28 February 2003 stated
in its programme a variety of measures for sustainability and environment
protection, for example:
Increase of energy efficiency (energy consumption per GDP unit) by 1.6%
per annum.
Investment of an additional € 30 million per annum from 2004 to 2006 to
implement the Climate Strategy.
Going a further step in the direction of shaping an ecologically oriented tax
system including price signals for the consumption of non-renewable
resources and incentives for environmentally benign and sustainable
behaviour.
Further expansion of alternative forms of energy, e.g. an increase in the
share of green electricity, more solar energy and more biomass.
Contracting programmes for energy saving in public buildings.
Increase of the use of biomass by 75% in 2010.
For more information on the government policy statement:
http://www.austria.gv.at/e/
Institutional Austria is a federal country with nine Länder (provinces). The Länder as well
Framework as the municipalities are active players in the energy market. The Federal
Constitution allocates responsibilities either exclusively to the federal level, or
to both the federal level and the state level. Federal level responsibilities
cover issues that require co-ordination between Länder, such as energy
security, while the Länder responsibilities involve issues endemic to each
state, such as building code efficiency regulations and subsidies for renewable
energy, where diverse local conditions require different types of approaches.
Co-ordination of various initiatives between the federal and provincial
4
governments is a priority in Austrian energy efficiency policy. In this context,
according to Article 15a of the Federal Constitution, an agreement between
federal and provincial governments on the efficient use of energy came into
force in June 1995. This agreement obliged the parties to adopt a specific set
of measures with respect to energy efficiency by 15 June 1998.
The Federal Ministry of Economic Affairs and Labour (Bundesministerium für
Wirtschaft und Arbeit, or BMWA) is the main body responsible for energy
policy on the federal level. Other ministries involved in energy matters
include: (i) the Federal Ministry for Agriculture, Forestry, Environment and
Water Management, (ii) the Federal Ministry for Transport, Innovation and
Technology, and (iii) the Federal Ministry for Finance
The instruments for the financial support of energy efficiency measures (by
households, enterprises and municipalities) encompass a variety of
programmes. Most of them are at the Länder level and in many cases the
improvement of energy efficiency is only one of several programme goals.
Due to this variety and multi-functionality of the programmes, exact data on
financial support granted and investments triggered are not available.
In the 2002 in-depth review of the energy policies of Austria, the IEA stated:
The Government of Austria should:
• Further improve co-ordination among the many bodies and programmes
which address energy efficiency in the country.
Technology, Public funding of research, development and demonstration is another
Research, important pillar of Austria's energy conservation strategy. Compared with
Development and direct subsidies for the implementation of energy conservation technologies,
Demonstration Austria regards the funding of RD&D as highly conformable to the principle of
non-interference with the market-mechanism. Helping technology applications
to become competitive is a relatively ”soft” measure.
Regarding energy-related fields exclusively, Austria is at a medium level
among the EU countries with respect to public spending for research and
technology development. In 2000, the government sponsored approximately
€ 24 million of energy-related R&D funding, or about € 3 per inhabitant. This
R&D budget represents a decrease from the period between 1995 and 1999
when energy-related R&D budgets were consistently above € 25 million.
Experts within the Austrian government attribute this drop in funding to a
decrease in the number of research proposals received rather than to less
overall funding available. Many research institutions were assumed to have
deferred submitting proposals until 2001 when some of the features of the
biomass funding were scheduled to become slightly more attractive. Initial
indications from 2001 bear out this hypothesis with preliminary budget figures
showing that energy-related R&D public funding for 2001 rose 25% to € 29.9
million. This most recent figure continues the long-term trend in increasing
R&D funding in Austria. In 1990, the level of energy-related public R&D
funding was slightly less than € 10 million.
5
In the 2002 in-depth review of the energy policies of Austria, the IEA stated:
The Government of Austria should:
• Further clarify the objectives of the R&D programmes to meet particular
energy and environmental policy objectives and allocate resources
appropriately based on its national goal of expanded R&D expenditures.
• Enhance monitoring of progress in reaching the energy-related R&D goals
Austria has established.
• Review energy R&D priorities in order to maximise the cost-effectiveness
of limited government R&D expenditures needed to realise mid- to long-
term objectives in the energy sector.
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Space Heating The strategy to reduce GHG emissions from space heating is based on the
and Electricity following pillars: Thermal improvement of existing building stock, enhanced
Demand technical standards for new buildings, increasing share of renewable energy
sources and district heating, increasing boiler efficiency, switching to fuels with
lower (fossil) carbon content. The most important instruments with regard to
these targets are technical construction regulations, housing support schemes
(both under sole responsibility of the states) and federal funds to support
district heating and entrepreneurial use of renewable energy sources and
efficiency improving measures (trade, industry, agriculture). The federal level
is also responsible for civil law with respect to the residential matters.
Building Since legislation for building codes falls under the responsibility of the Länder,
Codes an agreement between the federal government and the Länder in accordance
with Article 15a of the Federal Constitutional Law was applied to formulate
common goals and to co-ordinate future action.
This agreement on energy efficiency entered into force on 15 June 1995.
According to the objectives stated in the 1993 Energy Report, the following
measures were adopted in the agreement:
• Harmonisation of federal provinces’ regulations for the realisation of the
agreement’s objectives.
• Basic regulations regarding the energy consumption of appliances.
• Specific regulations regarding heating systems and building structures.
• Increased consideration of objectives relating to environmental policies.
Reduction potential by 2010: A decline in heating requirements in new
buildings to 50 kWh per square metre a year and in old buildings to 75 kWh
per square metre a year has been assumed. In the case of new buildings,
energy savings of 3.6 TWh a year (corresponding to 0.5 million tonnes a year
reduction in CO2 emissions) and regarding old renovated buildings, energy
savings of 21.3 TWh a year (corresponding to an annual reduction of 3.2
million tonnes in CO2 emissions) can be expected by 2010.
Minimum thermal standards for buildings
Improving thermal quality of buildings is important for reducing energy
demand for space heating. Experiences show that construction technologies
6
and techniques undergo continuous improvements and can be influenced
positively by strict legal standards.
Therefore thermal standards for buildings are defined in the Technical
Construction Regulations of the states by way of U-values (=k-values) for
different construction components, although most states opened the possibility
for a more flexible approach by defining certain energy demand codes for the
whole building (per square metre). Almost all states have improved U-values
over the past years and in some cases have also gone well beyond minimum
standards within the existing “Agreement on Energy Saving” of 1995 on the
basis of Article 15a of the Federal Constitution Act between the federation and
the nine provinces.
In general, technical construction regulations apply only to newly constructed
buildings (except, for example, change of windows). As long as no obligatory
standards for renovation measures exist, thermal standards of the old building
stock therefore need to be influenced mainly by other instruments, especially
public support schemes for renovation.
Thermal insulation of dwellings
Austrian provinces administer subsidies of more than € 2 billion annually for
housing support programmes. Therefore, a majority of dwellings is
constructed or renovated with public support. Around 75% of financial
resources are actually spent for new construction, the rest for renovation of
existing buildings. With the largest building stock of the nine Austrian
provinces, the city of Vienna is different in this regard. In Austria’s capital,
more than 50% of available financial resources are spent for renovation of
buildings, in most cases for standard improvement measures (bathroom,
central heating systems, windows, consolidation of flats etc.).
In all Austrian provinces individual measures, like windows changes,
installation of thermal solar systems or replacement of old and inefficient
heating systems also benefit from subsidies. Several Länder give special
incentives for biomass heating systems (e.g. wood pellets) and/or phased out
support schemes for renovation or replacement of fossil fuel heating systems.
Heating The Heating Cost Accounting Act (Heizkostenabrechnungsgesetz, Federal
Costs Law Gazette 827/1992) regulates the accounting of heating costs based on
Accounting actual consumption instead of usable floor space. More precise and cheaper
heat measuring instruments (a relatively cheap measure) and rehabilitation in
terms of heating technology of buildings and heat supply installation (a
relatively expensive measure) are being developed to prevent the trend
towards accounting as a percentage of usable floor space and the 15-20%
higher energy consumption observed in this connection. A 15-20% reduction
of heating consumption is expected from this measure.
Electric The agreement on efficient energy use based on Article 15a of the Federal
Appliances Constitution between the Federation and the Länder contains the following
and Others elements:
Labelling and description of specific energy consumption of household
appliances.
Legal requirements to provide information for comparison of household
appliances.
Ceilings regarding maximum consumption of household appliances.
All EU directives regarding labelling of energy consumption of household
appliances have been implemented through national law within the
Elektrotechnikgesetz (ETG).
7
Energy Eight regional and local energy agencies have been created since 1994. They
Agencies are funded by the Federal Ministry for Economic Affairs and Labour, the
Länder and municipalities.
Subsidies for The Bürges Förderungsbank, a specialised bank in charge of the
Insulation administration of ERP funds provides financial support inter alia for energy
efficiency measures. Support granted in 1998 (for insulation of buildings and
other energy efficiency measures) was approximately Sch 1.3 million3, the
resulting investments amounted to about Sch 25 million.
Support In the past, public support programmes for construction of new dwellings have
Schemes had rather counterproductive total impacts on CO2 emissions, as they have
lacked quality standards. Over the past years most Austrian provinces started
to introduce specific incentive schemes for energy efficient construction
(improved insulation, zero energy houses, etc.) and the use of renewable
energy sources, such as heating systems based on biomass and solar
installations.
Generally, subsidies under the housing support schemes of the Länder in the
new construction sector are segmented into different components. All Länder
give basic subsidies for new houses built in conformity with existing technical
construction standards. Most Länder give supplementary subsidies, either on
social grounds or for specific measures to improve the quality of buildings well
beyond legally binding standards. Supplementary supports, differentiated
along energy-related specifications, led to significant decreases in CO2
emissions from new dwellings since 1995. The schemes also had positive
impacts on the construction industry in terms of technically improved building
standards at competitive costs.
Energy efficiency measures, i.e. insulation, other energy saving measures and
connection to district heating, are supported by all nine Länder in the context
of housing improvement in various ways: loans, subsidies, sureties.
In 1998, 41,803 dwellings benefited from such measures resulting in € 431.8
million of total expenditures leveraged by € 112.9 million of government
support. In 1999, 33,736 dwellings benefited from such measures resulting in
€ 228.8 million of total expenditures leveraged by € 81.4 million of government
support. In total for households there are 26 programmes for the support of
various energy efficiency measures and 21 programmes for financial support
in connection with district heating. No comprehensive monitoring is carried
out to show the amount of energy that was ultimately saved through these
programmes.
Building of The Austrian Federal Ministry of Transport, Innovation and Technology
Tomorrow (BMVIT) in co-operation with a network of experts and with the assistance of
the Austrian Industrial Research Promotion Fund has developed the Austrian
Programme on Technologies for Sustainable Development. This five-year
research and technology programme initiates and supports trend-setting
research and development projects and the implementation of exemplary pilot
projects. The sub-programme "Building of Tomorrow" makes use of the two
most important developments in solar and energy efficient building: the
passive house and the low energy solar building method.
"Buildings of Tomorrow" are residential and office buildings and differ from
current construction practice in Austria in that they fulfil the following criteria:
3
On average in 2001, Sch 1 = US$0.065. In 2002, Sch1 = € 0.07267.
8
Higher energy efficiency throughout the whole life-cycle of the building.
Greater use of sustainable raw materials and efficient use of materials in
general.
Greater use of renewable energy sources, especially solar energy.
Increased consideration of user needs and services.
However, the costs should be comparable with conventional building methods.
The "Building of Tomorrow" sub-programme includes the following elements:
Technology and component development.
Development of innovative building concepts for residential and office
buildings.
Setting up and evaluating demonstration projects.
Market diffusion of the "Buildings of Tomorrow".
Since 1999 projects have been supported with an amount of some € 7 million
of public funding. This released innovative projects with an overall budget of
some € 120 million. Web site: www.hausderzukunft.at
INDUSTRY
Measures already The Austrian government has not established regulatory constraints on
existing and/or industry which mandate minimum energy efficiency standards in the industrial
being improved sector. This is partly due to the diversity of production processes in the sector
itself and the consequent difficulty in establishing standards which can be
applied to different systems. It is also due to the government’s federal
structure and the corresponding authority held by the Länder government
which makes it difficult to sustain such standards nation-wide. While industry
is subject to environmental laws which can effect energy efficiency, the
government’s greatest influence in this area is through the financial support of
energy auditing and investment in efficient systems. These support systems
are described below.
Information/ In 1980 an audit consultancy service for industrial enterprises was created
Technical and financed by the Federal Ministry for Economic Affairs and Labour in
Assistance collaboration with the Austrian Energy Consumer Association (ÖEKV). The
underlying service contract (between ÖEKV and the ministry) for the year
2001 was the 13th of its kind. Since the programme's inception in 1980, more
than 550 companies were audited and impressive potentials for improving
energy efficiency in industrial companies were identified. As ÓEKV also
proposes concrete measures for improvement it is demonstrated to
companies that the payback periods are in many cases less than two years.
These audits are free of charge for the interested companies.
From 1998 through 2001, this programme has worked with 89 companies.
These audits have identified 171 GWh of annual energy savings potential, an
amount equal to 8.1% of the firms’ total energy use. For the period from 1998
4
to 2000 the audited firms consumed a total of 2 297 GWh, an amount equal
to 1% of the total energy consumed in the industrial sector over that time and
0.3% of the country’s total final consumption. The targeted potential savings
from this programme are equal to 0.8% of the country’s total final energy
consumption. No comprehensive monitoring system has tabulated data on
the actual realisation of these potential projects or the amount of energy that
was ultimately saved.
4
Statistics on total Austrian industrial energy use have not yet been prepared for 2001, so one can only look
through 2000. Nevertheless, there is no reason to believe that the three years of data from 1998 to 2000 are not
representative.
9
Austria disposes of a network of energy auditors covering all Länder. In order
to facilitate access to this useful service, the Energy Efficiency Agency (EVA)
has published a brochure listing all the energy auditors. To ensure minimum
qualification standards, the ARGE Energie-beraterausbildung has developed a
multi-level training programme including the possibility of a university degree
(post-graduate). In addition, in order to improve the communication skills of
auditors, EVA holds seminars entitled Energy Auditing —Train the Trainer.
Demand-Side The Association of Austrian Electricity Utilities carries out different demand-
Management side management activities to improve efficiency in energy supply. The major
(DSM) activities are as follows:
Consumer information and advice: to increase consumer awareness of the
rational use of energy by giving concrete advice. Examples include
advertising campaigns for the replacement of old electrical appliances by
new more efficient ones, establishment of a Club for the Conservation of
Energy, the promotion of heat pumps, an annual prize for companies that
succeed in improving their energy efficiency.
Load management to improve the utilisation of production capacity to
reduce peak demand. Price differentiation (different tariffs for different
seasons and times), special tariffs for interruptible electricity supplies and
load management as a service to major consumers are some examples of
these measures.
Partly as a result of the liberalisation of the electricity sector, these utilities
have cut back on these programmes drastically.
Combined District heating (DH) and combined heat and power (CHP) plants are
Heat and widespread throughout Austria, and are often instrumental in meeting the
Power heating and power needs of medium and large cities. District heating
(CHP) schemes produce approximately 12% of the country’s heating and hot water
and 27% of the country’s electricity. The city of Vienna has the most
extensive system which provides 50% of the city’s power and 40% of its heat
and hot water. In 2001, the four CHP plants that serve WienStrom, the
Viennese energy utility, had a combined electric capacity of 1 050 MW. They
operated at a 35% capacity factor over the year and produced 3 255 GWh of
output. In additional to such municipal facilities, industrial plants also make
use of CHP technology.
CHP has long been supported by the regulatory structure in Austria. In order
to survive financially, the majority of Austrian CHP plants require tariffs per
kilowatt-hour of electricity above pure market prices. The Austrian Energy
Liberalisation Act implemented on 1 December 2000 includes the Federal Act
providing new rules on the organisation of the electricity sector, "ELWOG
2000" (Electricity Act 2000). This Act stipulates that the executive laws of the
nine Länder can impose on grid companies the obligation to purchase
electricity from CHP plants, provided that they serve public district heating
supply. It also stipulates that a minimum payment per kWh can be granted to
CHP generated electricity, also provided that they serve public district heating
supply.
As a result, the Austrian Energy Liberalisation Act allows the Länder to pay
CHP plants for their power at rates higher than those of other generation
options. Industry experts estimate that the average cost of CHP-provided
power would be approximately 5 € cents / kWh while system marginal cost
throughout the year would average 3 € cents/kWh. The regulations allow the
utilities to recover these additional costs through tariff supplements imposed
on all electricity grid users. These payments are in a per kilowatt-hour form.
The Länder of Vienna makes the most extensive use of CHP plants. To
support this system, each Viennese customer pays an additional 0.7427 €
10
cents per kWh of electricity consumed, which goes into a fund used to pay for
power coming from CHP facilities. Based on the average retail residential
rates for electricity in Vienna of approximately 15 € cents/kWh, the CHP
surcharge represents a 5% increase in customers’ electricity bills.
While the original Liberalisation Act gave the Länder full discretion in setting
these rates as they chose, legislation making its way through the Austrian
parliament establishes one CHP tariff for the entire country. However, neither
the original law nor the 2002 update make provisions for the continuation of
this system after 2004. No alternative policy for the support of CHP facilities
has gathered sufficient political momentum to be considered as a possible
replacement of the current support scheme.
In July 2002, the new Green Electricity Act was passed by the National
Council and Federal Council (announced in mid-August 2002). Most of its
clauses came into effect on 1 January 2003. The Green Electricity Act
governs the aid for green energy and combined heat and power generation
throughout the country. This means that all end consumers and electricity
dealers in Austria contribute to an equal extent to the financing of the aid
required.
The Green Electricity Act lays down a budget limit on aid based on
calculations of the expenditure required for cost-effective implementation. The
expenditure is financed as two components: firstly the electricity dealers must
reduce their proportion of cost to an internal price of 4.5 cent/kWh (this is
greater than the sales proceeds for the electricity dealers). Secondly, the end
purchasers must pay a supplement to the network tariff (probably around 0.25
to 0.30 cent/kWh). As of 1 January 2003, this supplement replaces the former
federal state supplements which are between 0.05 cent/kWh and 0.8
cent/kWh and would have had to be increased anyway to finance the Green
Electricity Act.
In the 2002 in-depth review of the energy policies of Austria, the IEA stated:
The Government of Austria should:
• Review the support scheme for CHP plants, including its continuation after
2004. Maximise CHP’s cost-effective contribution to meeting
environmental goals through such measures as a gradual lowering of the
support levels in accordance with a benchmarking system which includes
minimum efficiency standards.
Benchmarking In a number of Austria's Länder (Upper Austria, Salzburg, Styria, Tyrol,
Vorarlberg, Vienna) energy efficiency benchmarking projects have already
been initiated. In a first step, industry branches are carefully analysed with a
view to assessing their energy efficiency standards and potential for
improvements. Based on this know-how, companies can compare their own
performance against industry leaders and can derive valuable information on
how to increase their energy efficiency.
Subsidies: Within the framework of the Umweltförderung in accordance with the
“Umwelt- Environmental Support Act (Umweltförderungsgesetz, UFG) which is
förderung” managed by Österreichische Kommunal-kredit (ÖKK) (a specialised bank) on
Programme behalf of the Federal Ministry of Agriculture, Forestry, the Environment and
Water Management, companies can obtain subsidies for thermal improvement
of buildings, for other energy efficiency measures, for connection to district
heating and for CHP. From 1998 through 2000, total subsidies issued through
the ÖKK were € 12.4 million. Total investments in energy efficiency resulting
from these supports amounted to € 55.0 million. No data exist on the energy
efficiency improvements realised from these investments.
11
In 2000, subsidies were:
Thermal improvements in buildings 1.8 million Euro
Other saving measures 0.4 " "
Connection to district heating 0.5 " "
CHP plants 0.3 " "
The investments resulting from this support amounted to € 6.8 million, € 1.4
million, € 1.7 million and € 1.1 million respectively.
In addition to the two schemes, Energy audits and the Environment Support
Act, there are about 30 programmes -- mainly run by the Länder -- for the
support of various energy efficiency measures in the manufacturing industry.
Co-operation The so-called Bund-Bundesländer-Kooperation auf dem Gebiet der Rohstoff-,
on Research, Energie- und Umweltforschung (co-operation of the Federal State and the
Energy Länder in the research on raw materials, energy and environment) was
and the founded in 1978 as an informal platform of co-operation between several
Environment federal ministries and Länder. Potential projects of common interest are
discussed and, if selected, funded and implemented in co-operation with
Austrian research institutions. Examples of recently funded projects are
electricity-powered taxis in the city of Graz and a study on the use of sterling-
motors in electricity generation using biomass.
Research In 1991 the Verbundgesellschaft (the Austrian electricity industry, the Länder
Co-operation electricity companies as well as the municipal and other electricity utilities)
in the Electricity established the Energieforschungsgemeinschaft (EFG) within the framework
Industry of the Verband der Elektrizitätswerke Österreichs, VEÖ (Association of
Austrian Electricity Utilities). EFG’s general aim is to improve the generation,
distribution and use of electricity in terms of cost-effectiveness, efficiency and
environmental compatibility. Its research activities focus on:
Environment.
Renewable sources of energy.
Innovative energy technologies.
Energy efficiency.
Social, economic and political framework.
As a member of the European Union, Austria also participated in the energy
programmes of the Fourth and Fifth EU Framework Programme for Research,
Technological Development and Demonstration (RTD). Austrian enterprises
and universities mainly participated in projects of renewable energies and
energy efficiency.
Sub-programme In the framework of the Austrian Programme on Technologies for Sustainable
"Factory of Development, the sub-programme "Factory of tomorrow" addresses trade and
Tomorrow" industry as well as service enterprises that produce and provide products of
tomorrow using materials of tomorrow to meet future needs.
The following aspects have to be taken into consideration:
Aiming at zero-waste and zero-emission technologies and methods of
production.
Increased use of renewable raw materials for materials and products.
Increased use of renewable sources of energy in the production process
and in the enterprise as a whole.
Development of new partnerships and co-operation as well as in-house
models for further training and participation of employees in order to
achieve these objectives.
12
Since 2001, additional energy-related projects, such as a survey for the
potential for the use of solar-thermal energy in industry, have been carried out
by this sub-programme.
Energy At the beginning of 1993, at the federal state level, a programme on energy-
Technology technology was created within the Innovations- und Technologiefonds, ITF
Programme (Innovation and Technology Fund) for a period of five years. After its
expiration at the end of 1997 the programme was extended to 1998 – in
particularly to synchronise with the Fourth EU framework programme on
RD&D. Follow-up activities were initialised within the ITF programme on
“technology transfer”.
The main emphasis was given to the stage of market introduction of
innovative technologies, processes and products (pilot plants, integration into
grid based systems, monitoring of these phases), taking account of the huge
investments necessary and the problems of co-operation with grid operators.
As a consequence of the restructuring of the federal state technology
programmes, the ITF was replaced by the so-called Kompetenzzentren,
Impulsprogramme, Regierungsinitativen, KIR. Special emphasis is given to
centres of excellence in the field of energetic use of biomass; both the thermal
use of biomass and conversion to electricity are seen as important options.
Measures under
Consideration
Long-term From June 2000 until the autumn of 2001, EVA, the Energy Efficiency Agency,
Agreements together with partners from Italy and Norway worked on a project concerning
the implementation of long-term agreements (LTA) on energy efficiency in
industry (energy intensive industry, except energy industry). Various forms of
LTA were examined with regard to their effects and the elements necessary
for success as well as the possibilities for implementation in Austria. The
purpose was to find out how LTAs have to be designed to enable their
integration into the mix of Austria's energy efficiency policy instruments. For
Austria, a country with no LTA tradition in the energy efficiency field, the
study's results are certainly a valuable input for discussion should LTA be
chosen as an option for energy efficiency measures.
PUBLIC SECTOR In March 2001, the Federal Ministry of Economic Affairs and Labour together
with the Federal Ministry of Agriculture and Forestry, the Environment and
Water Management, started an initiative on third-party financing (TPF) of
energy efficiency measures in (federal) public buildings, following a successful
pilot project in 64 federal schools with a usable floor-space of more than
500 000 square metres. A management group consisting of representatives
of Bundesimmobiliengesellschaft (the company which owns the federal public
buildings and leases them to the user Ministries), user Ministries, the Federal
Ministry of Economic Affairs and Labour and external consultants was set up
and has so far accomplished the following tasks:
Selection-based on relevant data and analyses-of those buildings which
are in principle suitable for TPF.
Grouping these buildings.
Definition of specific projects, of specific objectives, of tendering criteria
and of framework conditions for the future contractors.
The potential annual savings of energy costs after the implementation of the
projects is estimated at € 6.5 million. The potential for reduction of CO2
emissions is estimated to be between 70 000 and 100 000 tonnes.
13
TRANSPORT
Measures already
existing and/or
being improved
Vehicle Vehicles in Austria are subject to two different types of taxes: a fuel
Taxation consumption tax (Normverbrauchsabgabe/NoVA)) and a car registration tax
(Kraftfahrzeugsteuer).
The fuel consumption tax NoVa was introduced in 1992. This tax has to be
paid at the time of purchasing a new car and is based on the fuel consumption
specifications of the car. The Structural Adjustment Act in 1996 led to an
increase in this tax rate of about 1% by changing the way fuel consumption is
measured. At the same time, the maximum tax rate was raised from 14% to
16%. Since the fuel consumption tax increases the tax burden depending on
the vehicle’s relative fuel consumption, this measure offers incentives for the
purchase of energy-efficient vehicles. In recent years a strong trend towards
diesel powered vehicles reduced the average fuel consumption. In 1996
diesel powered vehicles accounted for 50% of all new registrations compared
to 22% before the introduction of the fuel consumption levy. Diesel vehicles
currently hold a share of 40% to 50% of the total passenger vehicle fleet
compared to 5% in the mid-1980s.
The car registration tax has to be paid for each month in which a vehicle is
registered and has a number-plate, the prerequisite to use public roads. The
level of the tax depends on engine specification and it is paid to the insurance
company together with the liability insurance premiums. The tax is then
forwarded by the insurance company to the tax authority.
Road Some provisions of the Road Traffic Regulations have been amended to
Traffic implement a general night-time driving ban for non-low noise trucks and a
Regulations 60 km/h speed limit at night (in force since 1 January 1995) and to implement
enhanced monitoring of adherence to existing speed limits (in force since
1 October 1994).
Annual In order to maintain vehicles in a satisfactory technical state, every car must
Check-up undergo an annual check-up. (EU legislation calls for a maximum of two
years between check-ups.)
Master The 1991 Master Transportation Concept adopted the goal of reducing CO2 by
Transportation 20% by the year 2005 (from 1988 levels) and formulated appropriate
Concept measures to bring about this reduction. These measures are based on the
following principles:
Avoid unnecessary traffic.
Shift traffic to more energy-efficient and environmentally compatible means
of transport.
Undertake technical innovations in motor vehicles to optimise energy.
Use real costs.
Combined transport is supported under a programme managed by the ERP
fund with an annual budget of about € 2.9 million.
Road To better utilise the available infrastructure of motorways and express ways
Pricing and to improve traffic distribution, a road pricing system has been set up. In
1997 an annual fee for motor vehicles to use motorways and express ways
was introduced. This fee is paid via the purchase of a sticker (vignette) which
has to be stuck onto the windscreen. The price of the vignette until the end of
14
2002 is € 73 (passenger vehicles) and € 727 (HGV up to 12 tonne) per year.
The introduction of a toll depending on mileage for motor vehicles exceeding
3.5 tonne is being discussed.
Transport To promote environmentally acceptable commuting and company-related
Demand mobility, the Austrian Federal Ministry of Agriculture, Forestry, Environment
Management for and Water Management, together with the Austrian Federal Economic
Companies Chamber in co-operation with three large enterprises, carried out a model
project for "Transport Demand Management for Companies" which have
shown encouraging results (e.g. -17% emissions). The following measures,
mainly related to energy efficiency improvement, have been implemented:
information events, information via internet, special travel offer, improved
booking possibilities for business trips by railways, presentation of car-sharing,
purchase of office bicycles, etc.
Public The following measures have been taken to promote municipal, local and
Transport regional public transport:
Limit individual traffic, especially in downtown areas — limit entry to city
centres by such measures as pedestrian zones.
Manage parking space.
Promote the creation and enlargement of municipal, local and regional
public transportation networks. In 1996, the Technical University of Vienna
published the study Creation and Financing of Public Transportation
Networks. Its main conclusions were the need for a network system
covering Austria as a whole; the creation of a planning authority; changes
in the system of concessions.
Bilateral In order to promote the use of buses and trucks with low emissions and low
Agreements consumption, Austria has concluded bilateral agreements with a number of
Central and Eastern European countries (Slovenia, Croatia, Bosnia, Lithuania,
Moldavia and Russia) on a quota system for vehicles which do not meet
certain emission and consumption standards.
RD&D In the framework of the Austrian Programme on Technologies for Sustainable
Programmes Development, developed by the Austrian Federal Ministry of Transport,
Innovation and Technology (BMVIT), there are some energy related activities
for transport. For example, some € 7 million will be spent in the new A3-
Technology Programme (Austrian Advanced Automotive Technology) for new
propulsion systems, energy efficient auxiliary devices and alternative fuels.
The programme "MOVE -- Mobility and Transport Technology" promotes
research and development projects in the field of transport and mobility by
funding demonstration projects capable to trigger innovation in the transport
system. For this programme, about € 2.9 million are budgeted annually.
Energy In 1999, the Tax Reform Commission proposed a number of measures for an
Taxation ecological tax reform including higher taxation on energy. In mid-2000 the
existing tax on electricity was increased from 0.1 Sch per kWh to 0.2 Sch per
kWh.
MONITORING/ For measures which are taken in the context of the EU, it can be assumed
ASSESSMENT that cost-effectiveness is seriously taken into account because – as a rule –
initiatives taken by the Commission and negotiated and adopted by the
Council are thoroughly analysed beforehand.
Decisions on measures at both the federal and Länder levels are based on
thorough preparatory work. At the project level, monitoring is done on a case-
by-case basis, where beneficiaries of subsidies have to report on the use of
the money. In many cases this micro monitoring is not exclusively focused on
15
energy efficiency because programmes often pursue objectives other than just
energy efficiency improvements.
So it can happen that a measure chosen may appear sub-optimal from a mere
energy efficiency perspective and differently from a global point of view.
Ex-post assessment of the results of implemented measures is probably an
area with room for improvement. But the cost of an assessment scheme has
to be in reasonable relation to the results which can be expected of it. Given
the complexity of Austria's landscape of instruments promoting energy
efficiency and given the fact that energy efficiency is often only one of several
goals (as is the case in many financial support schemes) an assessment
structure can be assumed to be extremely resource consuming.
The effects of implemented and planned GHG mitigation measures on
economy and emissions have been assessed in the energy scenario
calculation until 2020 carried out by the Austrian Institute for Economic
Research. The National Climate Strategy contains provisions for the
monitoring of the mitigation effect of measures with co-operation of the
Länder.
In the 2002 in-depth review of the energy policies of Austria, the IEA stated:
The Government of Austria should:
• Institute an effective monitoring scheme for government-sponsored
energy efficiency programmes to measure their efficacy in order to both
improve them and ascertain their cost-effectiveness.
Further For further information, please contact:
Information
Bundesministerium für Wirtschaft und Arbeit, Sektion IV
Schwarzenbergplatz 1
A - 1015 Wien
Tel: +43 (1) 711 00
Fax: +43 (1) 714 35 83
E-mail: post@ivsl.bmwa.gv.at
16
Energy
IEA Efficiency
Update
BELGIUM Updated August 2003
BACKGROUND
Constitutional The fundamental factor affecting the evolution of Belgium’s energy policy in
Framework the last decade has been the Special Law of Institutional Reform of 8 August
1988 which made Belgium a federal state. Under this law, responsibilities for
energy efficiency, including related R&D activities, were fully transferred from
1 January 1989 to the three regional governments of Flanders, Wallonia and
Brussels-Capital. The federal government remains responsible, for example,
for energy tariffs. The energy consultation group CONCERE/ ENOVER
(Concertation état-regions pour l’énergie/Energie-Overleg Staat-Gewesten
inzake Energie) is a co-operative structure created by the central and regional
governments and operational since 1992. One of the main tasks of the
Cellule CONCERE/ENOVER is to gather information and promote its
exchange among the regions and the federal government and internationally.
Policies (regional, national and international) relating to energy efficiency are
discussed in the monthly plenary meetings of the group and in the thematic
working groups.
In the 2000 in-depth review of the energy policies of Belgium, the IEA stated:
The Government of Belgium should:
• Promote improved co-ordination activities between the regions and with
the federal government in all areas of energy efficiency.
• Given the diverse circumstances within the different sectors, ensure that
those who have the best knowledge and the capacity on particular areas
should be chosen as implementing bodies to improve energy efficiencies
in these respective areas.
The following web sites address these areas:
Federal level
Federal Public Service – Economy – Division Energy:
www.energie.mineco.fgov.be
CREG (Commission for Electricity and Gas Regulation): http://www.creg.be
Federal Planning Bureau: http://www.plan.be
Brussels-Capital Region
Brussels Institute for Management of the Environment, IBGEBIM,
http://www.ibgebim.be
Flemish Region
Natural Resources and Energy Department: http://www.energiesparen.be
VREG (Flemish Electricity and Gas Regulatory Commission):
http://www.vreg.be
Sustainable Energy Agency, ODE-Vlaanderen: http://www.ode.be
Energy and Environment Information System: http://www.emis.vito.be
Walloon Region
Administration for Energy: http://energie.wallonie.be and
http://mrw.wallonie.be/dgtre
CWAPE (Walloon Electricity and Gas Regulatory Commission):
http://www.cwape.be
Information site on renewables: http://www.erel.org
Energy desks: http://energie.wallonie.be (click on "particulier")
Renewable Energy Agency: http://www.apere.org
Energy In June 1991 the Council of Ministers adopted a target to reduce CO2
and the emissions by 5% between 1990 and 2000. This target refers to total
Environment anthropogenic CO2 emissions; there is no specific target for the energy sector.
1
To achieve it, the regional governments in June 1994 and the Council of
Ministers on 1 July 1994 approved the Belgian National Programme for
Reducing CO2 Emissions (PNBRE94). This programme selected 14
categories of measures concerned essentially with energy conservation.
Review of the In March 1996, the different working groups that produced the PNBRE94
PNBRE94 carried out a detailed review to assess the results achieved by implementing
programme these 14 categories of measures. The review recommended that to overcome
the difficulties of implementation, it would be necessary, inter alia, to:
• Allocate more financial resources, in particular to the regions, to support
the implementation of the energy efficiency measures.
• Give high priority to the measures in the CO2 programme, particularly for
the rational use of energy.
• Take the political decision at the highest level of government on the
conclusion of voluntary agreements with industrial sectors, notably with
the electricity sector.
• Include the measures into a broader framework, particularly in the context
of European Union Directives.
Following the detailed review of PNBRE94, an Interministerial Conference on
the Environment, grouping the federal and regional ministers, confirmed the
national environment target to reduce CO2 emissions and decided to elaborate
a new programme before the end of 1999.
Belgium ratified the UN Framework Convention on Climate Change (UN
FCCC) in January 1996 and submitted its first national communication at the
beginning of 1997. The Second National Communication according to articles
4 and 12 of the Convention (updating of the first communication) (Deuxième
Communication Nationale conformèment aux articles 4 et 12 de la Convention
[mise à jour de la première communication]) was submitted in August 1997.
After the Kyoto commitment of December 1997, the European Union Council
1
of Ministers agreed on 17 June 1998 on the Burden-Sharing Agreement
towards achieving the 8% European Union commitment to reduce emissions.
In this context, Belgium is committed to reducing its emissions by 7.5% for the
2008-2012 period over the 1990 levels.
Following a decision at the Council of Ministers of 14 June 2001, the Federal
Planning Bureau will draft an annual report. This report will comprise a series
of economic and social indicators to monitor the impact of the National
Climate Plan on the Belgian economy (for example, on the different sectors,
on purchase power, on employment and on sustainable economic
development) and on the competitiveness of Belgian companies.
The first Federal Plan for Sustainable Development, submitted to the general
public and to organisations for consultation, was approved by the federal
government on 20 July 2000. The Plan is available (in French and English) at
http://www.icdo.fgov.be/pub/rapports.stm).
National Climate At the Belgian federal level, the "Plan National Climat 2002-2012" was
Plan 2002-2012 finalised on 6 March 2002.
The Plan available on the web site http://www.energie.mineco.fgov.be/ of the
Federal Public Service – Economy – Energy Division
(http://mineco.fgov.be/redir_new.asp?loc=/energy/home_fr.htm) considers
measures in the field of energy, mobility, fiscality and product standards such
as defined in the Federal Plan for Sustainable Development, especially with
1
The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6
2
respect to the “green” taxation reform. It will create a Climate Commission
consisting of representatives from the federal government and the three
regions, and supported by a permanent secretariat. It will make an annual
assessment of national co-operation and the implementation of the measures
taken in the framework of the National Climate Plan. It will advise on Belgian
positions in the international context of climate change and ensure information
exchange between the parties involved. Co-operation between the federal and
regional bodies will be achieved to implement flexibility mechanisms. It
integrates the measures foreseen in the plans in the Regions, in particular the
“Plan d’Action de la Région wallonne en matière de changements climatiques”
and the corresponding “Plan pour la maîtrise durable de l’énergie” (draft
available at http://daras.wallonie.be/).
The regional plans include energy efficiency measures (e.g. voluntary
agreements) and portfolio standards for renewables and CHP.
In 2003, an international consortium lead by the Fraunhofer Institute finalised
a study on DSM for the federal government (see
http://mineco.fgov.be/energy/home_fr.htm). In the “benchmarking scenario”,
where savings are derived from a comparison with other countries, CO2
reduction would be sufficient to meet Belgium’s Kyoto target by lowering
energy-related CO2 emissions to 100 Mt CO2. The “economic potential
scenario” assumes extensive use of demand reduction potentials, going
beyond the current international best practices, and implementing investments
with zero net costs (so-called “win-win” measures). Under this scenario CO2
emissions would be cut down considerably more, opening the potential for a
possible second commitment period in the Kyoto process, and partly
compensating the impact of nuclear phase-out after 2015. The study makes
concrete proposals for DSM that could be included through co-ordinated
federal and regional policies according to their administrative feasibility and
national or European constraints and priorities.
With respect to the deployment of energy technologies, the plan presents
some new elements. For the energy sector (according to the decision of the
Council of Ministers approved on 7 December 2001), a draft decree foresees
the introduction of a green certificate scheme (GCS) implying a quota for the
suppliers connected to the transport grid (>70kV- 6% in 2010). GCS will be
operational in the regions for the distribution grid (100%), causing structural congestion problems, mainly in
the larger cities (Antwerp, Brussels, Ghent) and on most motorways
surrounding or interconnecting those cities
A “business as usual” scenario forecasts a further strong rise of road traffic
during the next ten years. This would result, on already saturated roads, in
longer rush hour periods and in a substantial increase of fuel consumption
(35-40%) and emissions.
The measures and actions described hereafter, aim at a stabilisation (and in
the long term, even a reduction) of energy consumption and emissions by
road traffic.
They can be summarised as follows:
• Measures and actions to stimulate the replacement of old cars, vans or
trucks by more fuel-efficient models and with lower emissions. This implies
the use of new vehicles equipped with improved engines (diesel or Otto-
engine) or alternative propulsion systems, improved or alternative fuels, on
board multimedia road/traffic information systems, etc.
• Measures and actions to stimulate the application of fuel saving and safe
driving styles (which are in principle possible in all existing vehicles).
• To offer real alternatives for road transportation of individuals and freight,
such as public transport systems, freight transport by rail, or inland-
waterways, or combined/multi-mode transport systems.
Vehicle The federal government, in consultation with the regional governments, is
Tax defining a new vehicle taxation system which should stimulate the purchase
Schemes and use of new cars and other vehicles with a relatively low energy
consumption and with emission values in accordance with the Euro 3 or
Euro 4 emission standards.
These new taxation schemes would partly replace the existing vehicle and fuel
taxes. The current major fiscal parameter for vehicles is the so-[called “fiscal
(horse) power” (FP), which is an almost linear function of the engine
displacement value (active cylinder volume).
As a result of this definition, a diesel car gets a higher FP-value than a car
equipped with an Otto-engine giving the same engine power (in kW).
The vehicle registration tax is based on the FP-value or on the maximum
power of the engine. This tax increases sharply above the FP-value = 10.
The annual circulation tax is based on a term which is (an almost quadratic)
function of the FP-value. An additional term (also function of the FP) is applied
to LPG cars and diesel cars.
Heavy duty vehicles (trucks, buses) pay a supplementary circulation tax (the
so called “Eurovignette”).
Taxes on fuels:
15
• Excises: depending on the fuel type: 0 for LPG and CNG, higher for
gasoline than for diesel.
• 21% VAT.
There is a tax (9.25%) on vehicle insurance payments and 21% VAT on all
invoices (purchase, maintenance, etc).
Consumer The transposition of the European Directive 1999/94/EC concerning the
Information on availability of consumer information on fuel consumption and CO2 emissions
Fuel of new passenger cars in a Royal Decree is the responsibility of the Federal
Consumption Administrations of Environment and Economic Affairs. This is also the case for
of cars monitoring the correct implementation of the different measures to inform the
public about fuel consumption and CO2 emissions of every new car model
available on the Belgian market, namely labelling, a general information guide,
printed publicity material, brochures and posters.
The Regions can take the initiative to implement large-scale information
actions, such as the editing and distribution of brochures and creation of an
Internet Web Site.
As a project financed by ANRE (Ministry of the Flemish Community), VITO
developed a database with wide information on all new car models available
on the Belgian market, which is accessible since December 1998 on Internet
www.emis.vito.be/mobiliteit/autoverbruik . Since then, it is regularly updated and
improved. It gives, by model, all official technical data, such as the fuel
consumption.
It also applies the concept of comparative fuel consumption labelling, whereby
every model is compared with other cars of the same “dimensional class”. It
also contains a module with information and advice on fuel saving driving and
car loading techniques. The Walloon Region intends to develop a similar
database for the French speaking part of Belgium.
7
Given the total volume of new cars sold in Belgium and the increased interest
of the public in fuel efficient cars because of rising fuel prices, it is almost
certain that large-scale and intensive information actions, such as those
described above, will have a beneficial effect on the purchase behaviour of
consumers.
The introduction of “green” car taxes will have an important leverage effect on
these information actions.
Fuel Efficient Extensive measurement campaigns carried out by VITO (and financed by
Driving ANRE) on different types of cars and in real traffic conditions, have shown
Styles clearly and objectively the important influence of traffic conditions and driving
styles (from anticipating, defensive driving, to a nervous, “sporty” style) on the
fuel consumption and emissions of the cars tested.
Based on this information and on the experience of European colleagues
(such as TNO, Netherlands, MOTIVA, Finland, EVA, Austria) VITO started in
1999 a series of pilot projects concerning fuel efficient and safe driving. About
130 people participated in these projects, on a voluntary basis, using their own
car or a car/van owned by their employer (a large telecom network operator).
The reported energy savings were somewhat lower than expected (in foreign
experiments, fuel savings of up to 15-20%, compared with “average, normal
driving” were reported). This can be explained by the fact that most
participants were probably experienced and motivated drivers.
7
490 000 in 1999, and 530 000 forecast for 2000.
16
The response to a questionnaire by most participants was positive. Their
remarks will help improve the course material. An effective technical
improvement would be the use of a display (on the dashboard) showing the
fuel consumption in real time (some cars have it already as a standard
feature).
As a participant in a European SAVE II-98-project, VITO organised a
symposium on this subject in January 2000 (during the National Car Show in
Brussels), which was mostly attended by high level professionals
(representing fleet owners, driving schools, federal and regional
administrations and institutions).
VITO and a Belgian driving school (run by the Belgian importer of the
Volkswagen group, whose clients are mainly drivers of company cars) will be
active participants in a new European SAVE II-2000 project (which started in
January 2001), called “Ecodriving Europe”. The aims of this project are: to
gain more experience with ecodriving-training courses and to improve their
effectiveness, to stimulate the organisation on a larger scale of such courses,
and to integrate the testing of these fuel saving driving techniques into the
official examinations for obtaining a driving licence (which up to now,
concentrates on traffic codes and road safety).
Public Some ten years ago, the Belgian National Railway Company (NMBS-SNCB)
Transport greatly increased its investment programme in railway infrastructures for
Systems national and international train lines and in rolling stock (new locomotives,
carriages).
The public company VVM-De Lijn, responsible for regional and local public
transport in Flanders, is also investing heavily in new buses, low-floor tram
cars (in the cities of Antwerp and Ghent), and in the associated infrastructure
(such as the extension of tramlines, bus stations, passenger information
systems). The total investment budget for 2000 was BEF 5.237 million while
the prevision for 2001 is BEF 5.811 million.
De Lijn also started in 1998 an experiment with free public transport (in the
city of Hasselt). From the beginning of last year, this free service was
extended to all Flanders for certain classes of users (seniors ≥65 years, the
personnel of the Ministry of the Flemish Community, who can also get free
train tickets, children ≤12 years). The federal government followed this
example by reducing train fares for certain users.
Since 1996 the Flemish Region concludes so-called “Mobility agreements”
with individual or groups of municipalities. Up to now, some 80% of the
municipalities in Flanders have signed the Framework (“Mother”) agreement,
by which they commit themselves to draw up a “Mobility Plan”. This has to
cover a broad range of mobility and road-safety measures, such as promoting
and giving priority to public transport, limiting (or freezing) the number of car
parking places, and the construction of bicycle-tracks.
These study and implementation projects are financially supported by the
Flemish Region (in the period 1997-1999: BEF 962 million).
Several Walloon pilot communities have signed mobility charters (chartes de
mobilité) which are similar to the agreements in Flanders The Walloon Region
is lowering public transport fares, and will equip the buses with particle filters.
It studies how to promote "mobility services" such as taxis (new version). The
Walloon Region has made the commitment to reopen trans-frontier railway
connections and to promote the railways in general.
17
Transport The Walloon regional authorities do carry out some activities to improve
Planning in energy efficiency and to reduce emissions, focusing on a sustainable
Businesses infrastructure and mobility policy. The "Plan d’environnement pour le
Développement durable en Région Wallonne” (PEDD) (Economic Plan for the
Sustainable Development of the Walloon Region) of 9 March 1995 identifies a
wide range of measures including land-use planning, carpooling, promotion of
public transport, use of alternative and cleaner fuels such as natural gas and
biofuels, traffic management, information and motivation campaigns for
drivers, promotion of railways and inland waterways, the development of
intermodal alternatives for road transport of goods and the development of
international transport for passengers and goods.
In particular, the Walloon Region invests in car sharing and participates in a
European project in this field.
In 1998, the Brussels-Capital government approved an ordinance concerning
the assessment and improvement of air quality. The ordinance contains the
following measures in the field of transport and mobility: each private or public
body with more than 200 employees per site has to introduce transport
planning; for events assembling over 3 000 participants an action plan to
promote the use of public transport and of energy efficient and
environmentally friendly means of transport must be instigated; regional public
bodies and institutes with a car fleet of over 50 vehicles: within five years after
the entry into force of the ordinance 20% of these vehicles have to use
environmentally friendly technologies. For public transport companies under
the authority of Brussels-Capital and with at least 50 vehicles, 5% of the fleet
must be environmentally friendly vehicles within a period of five years.
Other actions within Brussels-Capital are initiatives to limit access to the city
centres, instruments for and study on transport management.
In 1992 the Flemish Region started an action programme to promote
Company Transportation plans. These plans mainly consist of bus services
and carpooling, on the level of the individual company or several neighbouring
enterprises. Mainly large companies situated in urban areas participated in
this programme on a voluntary basis (about 20 companies during the period
1994-99) and received financial support from the Flemish Region.
In Wallonia the introduction of transport planning in industry and
administration is being prepared. Following a campaign led by IBGE, which
started in the spring of 1997, several Brussels administrations are currently
elaborating transport plans.
In the beginning of 1999, a proposal for a law which was intended to make
company transportation plans compulsory for medium-sized businesses (>50
employees) was introduced in the Federal Parliament, but it did not complete
the procedures (the proposal was accepted by the Chamber of
Representatives, but was blocked in the Senate, and because of the elections
in June 1999 it expired; it was also firmly opposed by the Belgian Federation
of Enterprises). The Federal Minister of Mobility announced that a new
proposal for a law would be introduced in the autumn of this year.
Carpooling has been promoted for many years in Flanders. The initiative was
in fact originally taken by a non-profit organisation called “Taxistop”.
Since 1998 the Flemish Region promotes carpooling in a more structured
way, namely through :
• An improved carpooling database (initiated and operated by Taxistop),
intended for individuals (for whom it is a free service) and companies.
18
• The construction of specific parking lots (in April 2000, 40 parking lots, with
a total capacity for 2 400 cars, were open); this number should increase to
47 by the end of the year.
But, as with the voluntary company transportation plans, the carpooling
initiatives in Flanders are considered so far to be a “limited success”.
The Brussels-Capital Region concluded in 1999, for the “Icaro” project, a two-
year-contract with Taxistop (with co-financing from the European Commission)
to operate a carpool-centre (database) in Brussels. This initiative is intended
for individuals and about 300 medium and large-sized enterprises.
Promoting The maritime ports (Antwerp, Ghent, Ostend and Zeebrugge) process vast
Energy amounts of all forms of freight to be transported to, or coming from, their
Efficient hinterlands.
Freight
Transport Antwerp is not only the second largest maritime port in Europe, but also the
Modes most important industrial area in Flanders. Antwerp and Ghent have long
been connected to a vast network of inland waterways, with access to other
industrial areas in Belgium and to the waterway networks in the Netherlands,
Germany, France, the south of Switzerland (Basel), Austria, Central and
Eastern Europe. Antwerp is also a modal point of several pipeline networks
(for petroleum products, natural gas, industrial gases).
The four ports are also well connected to the railway network of the NMBS.
While the total freight traffic volume of the four ports increased at a moderate
rate (in the period 1980-99, it has grown from 118 million tons to 178 million
tons), the growth rate of the container traffic and Ro-Ro-traffic (“Roll on – Roll
off” = cars, trucks, trailers) has been spectacular in the past 15-20 years.
But although these types of freight (and especially containers) are very well
suited to transport by rail or inland-vessels/barges, even over relatively short
distances, between well equipped terminals, in reality a large share of
container-traffic is carried by trucks (even to neighbouring countries, the
Netherlands, Germany, France).
The substantial growth in traffic between the region of Antwerp and its
hinterland, has over the past 10-15 years, created increasing problems of
traffic congestion, mainly on the roads but also on certain sections of the
railway network of the NMBS. The Flemish government and the NMBS
therefore jointly decided to invest massively in new or improved transport
infrastructures:
• New infrastructures for container-traffic: docks, quay-walls, container
terminals with direct access to the railway network.
• The reactivation of the “Iron Rhine” railway line, connecting Antwerp with
the German Ruhr area (to be operational in 2002).
• A new main railway access to the right bank of the port of Antwerp (a 25
billion BEF project, to be operational in 2007/2008).
• The construction of several “missing links” in the motorway network in the
Antwerp area.
The total investment of the Flemish Region in maritime infrastructure for the
four ports and in their maritime access ways, amounted to BEF 85.420 million
during the period 1989-99.
Enforced Unmanned cameras have been installed throughout Belgium to control speed
Speed Limit limits, the majority of them being in Flanders. The speeding fines were
harmonised and increased all over Belgium as of 1 January 1999.
19
Other Employees who cycle to their work place are rewarded BEF 6 per kilometre.
Measures
In the 2000 in-depth review of the energy policies of Belgium, the IEA stated:
The Government of Belgium should:
• Promote effective measures in reaching the energy efficiency targets in all
applicable sectors including industries, public and private sectors and
transport.
MONITORING/ In Flanders, the SENVIVV study was undertaken in the framework of the
ASSESSMENT VLIET programme in the building area. The subject of the study was the
testing of 200 recently built (1990-1997) individual dwellings and apartment
buildings for application of the insulation regulations, the heating system
installed and the glazing. Results are as follows:
When looking at buildings constructed since the introduction of the K55
standard, only one-eighth meet the standard. For apartment buildings, the
result is somewhat better: one out of three meets the requirements.
Given this result, the Flemish government is considering increasing the
number of control visits to buildings under construction and changing the
existing procedure.
At the moment, the building owner has to prove the K value of the building
when beginning the procedure to receive the building permit. The Flemish
government considers that it would be preferable to oblige the owner to prove
the K value of his property in the final stages of construction.
In the 2000 in-depth review of the energy policies of Belgium, the IEA stated:
The Government of Belgium should:
• Establish an effective monitoring system, with collaboration with the
regional governments, in light of meeting national energy policy
objectives, in particular, energy efficiency targets.
Further For further information, please contact:
information
ir. G. Michaux
Federal Public Service
Economy, S.M.E.s, Self-employed and Energy
Energy Policy Division
North Gate III, 16 Bld du Roi Albert II,
1000 BRUXELLES - BELGIUM
Tel: +32 (0)2 206 4261/4545
Fax: +32 (0)2 206 5732
e-mail: gabriel.michaux@mineco.fgov.be
Site : http://www.energie.mineco.fgov.be/
20
(QHUJ\
IEA (IILFLHQF\
8SGDWH
CANADA Updated September 2002
BACKGROUND Responsible and increasingly efficient energy use is given considerable policy
attention in Canada. In 1994-95 the federal government conducted a
comprehensive review of its programmes, including energy efficiency. The
review emphasised the importance of federal programmes that support
improvements in energy efficiency, particularly as they relate to fulfilling
Canada’s climate change goals.
Energy efficiency is a key component of Canada’s National Action Program on
Climate Change (NAPCC) approved in February 1995 by federal and
provincial ministers of energy and environment. In October 2000, Canada’s
National Implementation Strategy (NIS) and the First National Climate Change
Business Plan (FNBP) were released with the agreement of federal, provincial
and territorial Ministers of Energy and the Environment. The NIS is a
framework for a co-ordinated, comprehensive and phased approach across
jurisdictions to address the issue of climate change and to reduce the
uncertainties to the extent possible. The FNBP, which outlines climate
change, related policies and measures will be produced annually and updated
on a three-year basis.
Based on the Energy Efficiency Act of January 1993, the cornerstone of the
federal energy efficiency effort is the Efficiency and Alternative Energy
Program (EAE). It encourages investment in economic efficiency and
alternative energy opportunities by employing a mix of information,
persuasion, financial incentives, R&D and regulatory measures. Energy
efficiency activities are carried out in co-operation with provincial
governments, utilities, industry (suppliers of energy-using equipment) and
non-governmental organisations. Major programme expansions occurred in
1997 and 2000 (see below).
Energy In 1992, Canada signed the United Nations Framework Convention on
and the Climate Change (UN FCCC) and in February 1994 tabled its first national
Environment report to the Conference of the Parties of the UN FCCC entitled Canada’s
National Report on Climate Change: Actions to Meet Commitments under the
UN Framework Convention on Climate Change.
Its responses to climate change were outlined in the NAPCC, which
demonstrated the importance given to energy efficiency to address the climate
change challenge. Canada’s Second National Report on Climate Change:
Actions to Meet Commitments under the United Nations Framework
Convention on Climate Change, dated May 1997 and updated November
1997 updates Canada’s situation and responses to climate change.
In February 2002, Canada’s Third National Report on Climate Change:
Actions to Meet Commitments under the UN Framework Convention on
Climate Change was released. The report discusses Canada’s most recent
responses to climate change.
In the framework of the Kyoto Protocol, Canada is committed to reducing its
greenhouse gas emissions by 6% from 1990 levels by the 2008-2012 period.
National Action The National Action Program on Climate Change (NAPCC) launched in 1995
Program on governed Canada's national effort on climate change. It covered federal,
Climate Change provincial and municipal initiatives already announced, or likely to be
announced, with a focus on energy efficiency, alternative energy, and
reductions of GHG emissions. Some provinces also took action with
stakeholders in their own jurisdictions.
The NAPCC gave particular attention to voluntary undertakings (for example,
by industry) registered with Canada’s Voluntary Challenge & Registry Inc. --
www.vcr-mvr.ca -- established in 1994 and privatised in October 1997. The
organisation registers voluntary commitments to reduce GHG emissions. More
than 790 organisations, including federal and provincial government bodies,
have registered, accounting for over 75% of Canada’s GHG emissions from
business and industrial sources.
Government of On 6 October 2000, the Government of Canada Action Plan 2000 on Climate
Canada Action Change was announced and the major features of the initiative outlined. It
Plan 2000 on includes new and expanded measures to reduce GHG emissions by 65
Climate Change megatonnes per year during the commitment period 2008-2012. Funding for
the Action Plan was set at C$500 million over five years, which is in addition to
the C$ 600 million over five years announced in Budget 2000 to support the
Government of Canada’s climate change-related activities.
The Government of Canada outlined a series of measures in Action Plan 2000
on Climate Change that are projected to reduce Canada’s greenhouse gas
emissions by about 65 megatonnes annually during the Kyoto Protocol’s
2008-2012 commitment period. The projected 65 megatonnes reduction would
cover about one-third of the gap between Canada’s projected emissions in
that year and its Kyoto target. Since 1995, the federal government has spent
or committed a total of C$1.95 billion on climate change related initiatives.
More information can be found in the document Canada’s National
Implementation Strategy on Climate Change at the following website:
http://nccp.ca/NCCP/pdf/media/JMM-fed-en.pdf
The Office of Energy Efficiency (OEE) of Canada’s Federal Department of
Natural Resources took a lead role in the implementation process, including
implementation of all the measures in the buildings sector and most of the
measures in the industry and transport sectors.
In the 2000 in-depth review of the energy policies of Canada, the IEA stated:
The Government of Canada should:
x Consider establishing clear objectives possibly as quantified targets, for
the contribution of end-use policies and programmes to reducing
greenhouse gas emissions.
Institutional Canada is a federation of ten provinces and three territories. Federal and
Framework provincial governments share political authority and jurisdiction. The division
of powers in the Canadian Constitution means that federal, provincial/territorial
and municipal governments share jurisdiction over policy areas relevant to
climate change.
Many provincial and territorial governments and other stakeholders have
announced programmes and action plans to improve energy efficiency and
promote greater use of alternative energy and thus contribute to the response
to the issue of global warming.
In the 2000 in-depth review of the energy policies of Canada, the IEA stated:
The Government of Canada should:
x Develop closer relations between federal and provincial energy efficiency
programmes, and assist provinces wishing to develop energy efficiency
policies and programmes.
2
NRCan The Federal Department of Natural Resources (NRCan) has primary
responsibility for formulating and implementing energy policy in areas of
federal jurisdiction. Its energy efficiency activities are delivered by two groups:
the Office of Energy Efficiency (OEE), formerly the Energy Efficiency Branch,
and the CANMET Energy Technology Branch. The OEE has a mandate to
renew, strengthen and expand Canada’s commitment to energy efficiency in
order to help address the challenges to climate change with specific emphasis
on the Kyoto Protocol.
The CANMET Energy Technology Branch (CETB) works in partnership with
industry and all major stakeholders in the Canadian energy and R&D sectors.
Its mandate is to develop and deploy energy-efficient, alternative energy and
advanced hydrocarbon technologies. Some 77% of its total budget of C$44.5
1
million , goes to energy efficiency and alternative energy R&D. The CETB
staff of 400 conducts R&D in oil sands and heavy oils; R&D in energy
efficiency in buildings, industry, communities, renewable energy and
alternative transportation fuels; and R&D in heat management and
photovoltaic technologies.
Natural Resources Canada (NRCan) has 17 market-related energy efficiency
initiatives that target all types of consumers and emphasise partnerships and
economic investments. Their objective is to overcome the market barriers of
inadequate information and knowledge, institutional deterrents in the energy
market, and financial and economic constraints on energy users. NRCan’s
initiatives use the following policy instruments: leadership, information,
voluntary actions, fiscal incentives and regulations.
Community The Community Energy Systems Program works in partnership with Canadian
Energy communities and businesses to help them meet their energy needs with
Systems greater energy efficiency and increased use of renewable energy. The
Program programme identifies and develops opportunities to use district heating and
cooling, combined heat and power (cogeneration), waste-heat recovery,
thermal storage and local sources of renewable energy, particularly biomass.
The programme provides planning and implementing services for projects in
both urban centres and remote communities, development of software for
system design, and analysis of the improved performance of district cooling
systems. It also promotes and fosters the adoption of integrated energy
systems. The programme’s laboratory, which houses an ice-slurry-based
district cooling system, develops and tests district energy technologies.
RESIDENTIAL/
COMMERCIAL
Measures already
existing and or
being improved
National The Model National Energy Code for new residential and commercial
Energy buildings (MNECRCB) consists of two parts, namely the Model National
Code Energy Code for Houses (MNECH) and the Model National Energy Code for
Buildings (MNECB). The MNECRCB aims to increase energy efficiency by
specifying minimum performance standards for new Canadian houses and
buildings. It provides this customised energy standard by allowing for regional
climate and energy and construction cost variations. Published by the
Canadian Commission on Buildings and Fire Codes in 1997, its development
was supported by NRCan in collaboration with energy utilities, provincial and
1. On average in 2001 C$1 = US$ 0.65. Note – the C$44.5M is the federal budget which is leveraged through
in-house (cost recovery) and contracted-out (partnership) projects. The ability to recover costs and to
leverage external funds are obviously dependent upon the base funding identified. Cost recovery increases
the programme size by about C$7M/a. The contracting-out budget varies, ranging between C$17M/a and
C$18M/a. CETB: Partners contribution ratio target is 40:60.
3
territorial governments, and the National Research Council Canada (NRC).
NRCan provides software, training and implementation materials to support
the adoption and implementation of this model code by relevant
housing/building authorities (i.e. provinces, territories and municipalities). The
department also monitors and analyses the impact of this code. This
programme was very influential during consultations under the National
Climate Change Process in 1999-2000, when the provisions of the MNERCB
provided a strong basis for considering measures to improve the energy
efficiency of the Canadian housing and building stock.
R-2000 Home The voluntary R-2000 Home Program, first introduced by the Government of
Program Canada in January 1982, encourages Canadians to build houses that are
more energy efficient and environmentally responsible.
Certified R-2000 homes meet minimum standards for windows and doors,
insulation, HVAC (heating, ventilation and air conditioning), lighting systems,
air quality, recycled materials and water conservation.
Certified R-2000 new houses are up to 50% more efficient than homes built to
current building codes. R-2000 targets home building companies through
education and training schemes. The R-2000 Standard is available across
Canada and is delivered through agreements with Home Builders
Associations in the provinces of British Columbia, New Brunswick, Nova
Scotia and Newfoundland and Labrador, and by private companies in Ontario
and Alberta. Three provinces/territories (namely, Manitoba, the Yukon, and
Quebec) deliver the programme in their regions. When provinces or utilities
have given grants to home buyers or builders, there has been a much higher
adoption rate of the ambitious R-2000 Standard in new buildings than might
be expected on a purely voluntary basis. The R-2000 Standard has had a
strong influence on building practice in Canada; houses built today are about
30% more efficient than those built in 1980, before implementation of R-2000.
Building Given climate change concerns and the need to adopt sustainable
Energy development concepts, the goal of this programme is to establish an industry
Technology capacity which will allow a 50% improvement in energy performance in
buildings. The programme addresses both technology development and
deployment in both new and retrofit applications. Technology development
will focus on improved cost-effectiveness and life cycle performance, and on
the next generation of products. Market acceptance and adoption will be
addressed through the development of specific technologies (e.g. computer
design tools) and facilitating awareness (e.g. best practices).
Efficiency Canada’s Energy Efficiency Act authorises minimum energy efficiency
Standards standards to phase out less efficient energy-using equipment and household
appliances from the Canadian marketplace. The first regulations under the
Act came into force on 3 February 1995.
To date, regulations have been established for more than 30 products,
including residential energy-using products, electric motors and lighting
products. Regulations apply to products that account for over 75% of
residential energy demand.
Federal regulations on imported products and products traded between
provinces complement provincial regulations for intra-provincial markets, and
generally parallel regulations in the US. Possibilities for additional regulations
are electrical distribution transformers and the strengthening of the
performance levels of currently regulated products such as refrigerators,
freezers and washing machines.
Ontario (1988), British Columbia (1990), Quebec (1992), Nova Scotia (1991)
and New Brunswick (1995) have all implemented minimum energy efficiency
4
standards for specific equipment sold or leased within their respective
jurisdictions.
The Accelerated As one of the measures in the Government of Canada’s Action Plan 2000 on
Standards Climate Change, the Accelerated Standards Action Program (ASAP), will
Action Program improve the energy efficiency of appliances through the development of
& standards for residential, commercial and industrial equipment. It will
Energy Star accelerate the market penetration of high-efficiency products by providing
Promotion marketing and product certification assistance to encourage the purchase of
"best in class" products.
In line with ASAP, the Energy Star Promotion was started in July 2001. The
Energy Star£ symbol – an internationally recognised endorsement label –
allows the consumer to very simply identify the most energy efficient products
available based on a standard set of criteria.
Energy The EnerGuide for Equipment labelling programme supplements the minimum
Labelling performance requirements and seeks to stimulate consumer awareness and
to influence purchasing decisions. It covers household appliances and air
conditioners. This labelling scheme is mandatory for new products and gives a
comparative assessment of energy efficiency and energy consumption for a
range of appliances on the market. It is supported through directories for
consumers, information and education campaigns, and training for retail sales
staff. Marketplace audits revealed that over 80% of the regulated parties
complied with the labelling requirements.
A voluntary Window Labelling Program (rating and labelling) similar to
EnerGuide for Equipment is administered by an association of manufacturers.
It applies to windows and doors.
EnerGuide EnerGuide for Houses, established by the Minister of Natural Resources on
for Houses 1 April 1998, is a labelling and certification programme which seeks to
persuade and assist homeowners to make energy efficiency investments in
their houses, and to consider energy efficiency when purchasing a house.
During the 1999-2000 fiscal year, NRCan expanded the EnerGuide for
Houses programme to reach 80% of the Canadian population. The initiative
builds on the EnerGuide for Equipment labelling programme by using a similar
label to guide home energy improvement and purchasing decisions.
Participating homeowners receive an on-site inspection and energy analysis
of their houses, complete with recommendations for energy efficiency
improvements. After the improvements have been made, the EnerGuide for
Houses rating offers evidence of the investment, which enables prospective
buyers to compare the energy performance of similar houses.
Energy The Energy Innovators Initiative (EII) promotes energy efficiency upgrades
Innovators and building retrofits in the commercial and institutional sector. The initiative
Initiative recruits Canadian organisations to enrol as Energy Innovators and make a
corporate commitment to energy efficiency using an Energy Management
Plan. An Energy Innovator can ask to have its plan, which includes its
commitment to reduce greenhouse gas (GHG) emissions from its operations,
registered with Canada’s Climate Change Voluntary Challenge and Registry
Inc. (VCR Inc.).
The EII helps organisations plan, finance and implement comprehensive
energy efficiency improvements by providing a wide range of products and
services. Through an approach called “savings financing,” public and private
sector organisations can use energy savings to pay for the projects they
implement.
EII offers a pilot retrofit incentive, expanded partnerships and benchmarking.
The pilot retrofit incentive, which is provided in the form of a contribution, is
5
available to Energy Innovators implementing comprehensive energy efficiency
pilot retrofits. NRCan contributes up to 25% of project costs to a maximum of
C$250 000. Participants agree to replicate their pilot project in at least 25% of
similar facilities that they own or occupy.
NRCan works in partnership with key sectoral associations such as the Hotel
Association of Canada and the Association of Canadian Community Colleges.
These partnerships help to recruit Energy Innovators, stimulate energy
management plans and projects and develop sector-specific tools.
Benchmarking and best-practice guides allow organisations to measure their
efficiency against similar organisations and identify where to obtain better
performance.
The EII, as part of Action Plan 2000, will be offering two new incentives for
commercial and institutional members: one for retrofit planning services and
the other for energy-intensive retrofits in organisations with fewer than four
buildings.
Information Programmes designed to improve the availability of information on
opportunities for reducing energy use in existing buildings are common in
Canada. These initiatives include publications, seminars, workshops,
operating and maintenance training programmes and building audits. NRCan
supports public exhibits that focus on energy efficiency initiatives such as the
R-2000 Home Program, EnerGuide, EnerGuide Month (May), national energy
codes, Energy Innovators initiative, etc.
Commercial The Commercial Building Incentive Program (CBIP), established by the
Buildings Minister of Natural Resources in April 1998, provides financial incentives to
Incentive builders and developers to incorporate energy-efficient technologies and
Program practices into the design and construction of new commercial, institutional and
multi-unit residential buildings. CBIP seeks to encourage a permanent change
in the way such buildings are designed. It is intended to offset the extra cost of
designing energy-efficient buildings and thus encourages designers and
developers to consider efficiency options in their designs of commercial and
institutional buildings. To qualify for the incentive, buildings must be at least
25% more efficient than buildings that meet the requirements of the Model
National Energy Code for Buildings (MNECB). CBIP provides a one-time
grant based on the difference in estimated annual energy costs between an
approved CBIP design and an MNECB design. In addition to financial
incentives, CBIP provides design software and guidelines, case studies and
training for architects and engineers.
NRCan, in 1999-2000, provided incentive payments for 34 building designs
(up from 12 in the first year of the programme) at an average payment of
C$30 000. The average design was 30% more efficient than the Model
National Energy Code for Buildings.
Industrial Building The Industrial Building Incentive Program (IBIP) established by the Minister of
Incentive Program Natural Resources in July 2001 extends the precepts of CBIP into the
industrial sector. The programme aims to increase the energy efficiency of
newly constructed buildings used for manufacturing and other industrial
activities. IBIP will offer an incentive to companies building new industrial
facilities to offset additional design costs inherent in the initial attempts at
energy-efficient design, primarily focusing on affecting the market through
information programming.
6
PUBLIC SECTOR
Measures already
in place and/or
being improved
Federal The Federal Buildings Initiative (FBI), co-ordinated by NRCan, is designed to
Buildings facilitate comprehensive energy efficiency upgrades and building retrofits for
Initiative departments, agencies and Crown corporations of the Government of
Canada, through mechanisms such as public-private partnerships with energy
management firms.
The FBI provides a full range of products and services for implementing
comprehensive energy efficiency improvements within an organisation. FBI
account managers work with departments from project inception, through
contract development and award, celebration and recognition, to monitoring
and tracking.
The FBI supports partnerships with energy management firms that provide a
turnkey service which includes engineering, third-party private-sector
financing, comprehensive training packages and performance guarantees.
Project data are collected annually from departments and evaluations, and
programme results are published in the Government of Canada’s annual
report to Canada’s Climate Change Voluntary Challenge and Registry Inc.
(VCR Inc.).
The House The House in Order Initiative is designed to accomplish two main objectives of
in Order the Government of Canada. The first objective is to demonstrate
Initiative environmental leadership to the rest of Canada (i.e. all other levels
government and sectors of the economy). The second is to reduce total GHG
emissions resulting from Government of Canada activities by a factor that is
as stringent as that expected of the country as a whole under the Kyoto
agreement.
The initiative provides a set of tools which departments can use to reduce
emissions in their facilities. Several tools are explored and evaluated for their
potential impact on GHG reduction, as well as for cost-effectiveness and
feasibility of implementation. The tools are meant to assist in reducing
emissions from energy production, distribution and consumption activities,
employee behaviour, procurement activities and fleet management practices.
The House in Order Initiative has set an emissions-reduction target of 31%
below 1990 levels by 2010 for Government of Canada operations.
FleetWise Launched in October 1995, the FleetWise programme — the Federal Fleet
Initiative — is a government leadership initiative that targets federal vehicle
fleets to reduce energy use and promote the use of alternative transportation
fuels. The objectives of the programme are to: improve the operational
efficiency of fleets; reduce greenhouse gas emissions from fleets and
accelerate the use of alternative transportation fuels. The initiative provides
fleet managers with an assessment of fleets at little or no cost and technical
advice on using alternative transportation fuels (ATFs) and acquiring
alternative fuel vehicles. In addition, it campaigns to encourage vehicle
operators to select alternative fuels. Four departments — Treasury Board,
NRCan, Environment Canada, and Public Works and Government Services
Canada — manage planning, implementation and reporting under the
FleetWise initiative. NRCan is responsible for implementing FleetWise.
Leadership The Leadership Challenge will encourage all federal departments and
Challenge agencies to participate in emission reduction efforts. Best practice information
7
will be provided in the areas of employee awareness, staff training, solid
waste management, GHG-responsible procurement practices, and by
supporting public transit and green commuting.
INDUSTRY
Measures already
existing and/or
being improved
Industrial The Canadian Industry Program for Energy Conservation (CIPEC), a sector-
Energy level programme, and the Industrial Energy Innovators Initiative (IEII), a
Efficiency company-level programme, both address barriers to planning, implementing
Commitments and tracking energy efficiency projects in industry. Key elements of both
programmes are: the establishment of energy efficiency improvement targets;
the preparation of energy efficiency action plans; the tracking of energy
efficiency improvements on a per-unit-of-production basis; the reporting of
results; and the development and delivery of products and services which
overcome barriers to continued energy efficiency improvements.
CIPEC relies upon the collective support and action of more than 38 trade
associations representing over 90% of secondary industrial energy demand in
Canada. Overall direction is provided by an executive board made up of CEOs
and vice-presidents of some of the largest energy users in industry. CIPEC
task forces in 23 sectors use events, publications, training sessions and
networking to promote energy efficiency.
Through these two industrial initiatives, Natural Resources Canada (NRCan)
provides support services directly to individual organisations establishing
energy efficiency programmes. These services include assistance in energy
management planning, tracking and regular reporting; workshops dealing with
all aspects of energy management; and various technical, financial and
information services.
By March 2001, NRCan had 295 companies signed up as innovators. In the
2000-2001 fiscal year, NRCan employees participated in community and
employee awareness events at four Innovator facilities in the provinces of
Ontario and Quebec. At these events, which were attended by more than
25 000 people, NRCan provided information on its industrial and consumer
energy efficiency products and services.
New In part through funding provided by the Program on Energy R&D, the
Technologies CANMET Energy Technology Branch works in partnership with the private
for Industrial sector, academia and other levels of government to reduce the overall
Energy intensity of Canada’s industrial and utility sectors and, consequently, GHG
Efficiency and other emissions, while improving productivity and providing Canadian
companies with potential economic opportunities.
The objectives of the programme are to provide S&T to develop advanced
industrial energy efficiency products, processes and systems; to reduce fossil
energy intensity and emissions of selected Canadian resource and related
industries; to advance generic energy related technologies and processes; to
increase the proportion of Canada’s electricity supply from distributed systems
and renewables, and to reduce environmental impacts from centralised,
combustion-based electricity power generations systems.
8
In the 2000 in-depth review of the energy policies of Canada, the IEA stated:
The Government of Canada should:
x Strengthen commitments made under voluntary agreements in industry.
x Consider supplementing and integrating current sectoral programmes with
economic incentives in order to maximise the uptake of efficient practices.
TRANSPORT
Measures already
existing and/or
being improved
Fuel Efficiency The Motor Vehicle Fuel Efficiency Program, in effect since 1978, delivered by
Standards NRCan and Transport Canada, promotes improvements in new vehicle fuel
efficiency by encouraging motor vehicle manufacturers to meet voluntary
annual company average fuel consumption targets for new automobiles sold
in Canada. Average fuel consumption targets are patterned after the US
CAFE standards, although compliance is voluntary in Canada. NRCan works
with the vehicle manufacturers through a voluntary Memorandum of
Understanding (MOU) on fuel efficiency. The programme focuses on
opportunities to improve vehicle fuel technology by providing information to
consumers on the fuel efficiency on new vehicles. The annual Fuel
Consumption Guide, which lists fuel consumption ratings for new vehicles, is
produced through information obtained under this initiative.
The current actual average fuel consumption ratings are 8 litres/100 km for
cars and 11.4 litres/100 km for light trucks.
As part of Action Plan 2000, the Government of Canada is to launch
negotiations with the automobile industry and the United States to achieve
new voluntary fuel efficiency improvement targets for model year 2010 and
phase in a significant improvement – starting as early as 2004.
Energuide Since 1999, vehicle manufacturers have been attaching a fuel consumption
for label to their cars, vans and light duty trucks. The label is standardised across
Vehicles the industry and appears on its own or is combined with the vehicle options
and price label on the side window of each new vehicle.
FleetWise Launched in October 1995, the FleetWise programme — the Federal Fleet
Initiative — is a government leadership initiative that targets federal vehicle
fleets to reduce energy use and promote the use of alternative transportation
fuels. FleetWise is described in more detail under the Public Sector section.
FleetSmart FleetSmart — the Commercial Fleet Initiative — announced in March 1997,
encourages Canadian private fleet operators to reduce operating costs
through energy-efficient practices and the use of alternative fuels. FleetSmart
provides information materials, workshops, technical demonstrations and
training programmes to help fleet operators assess opportunities to increase
energy efficiency in their operations. FleetSmart is delivered in partnership
with associations, private industry and other levels of government. FleetSmart
tool kits have now been distributed to 1 643 registered clients, representing
more than 132 000 vehicles.
Auto$mart Auto$mart encourages and assists motorists to buy, drive and maintain their
vehicles in energy-efficient ways that save fuel and money, and emphasises
how such efforts also reduce vehicle emissions. Its main tool is the Auto$mart
Guide, which offers useful information and tips on purchasing, operating and
maintaining personal vehicles. The programme also provides resource
materials to driver educators for fuel-efficiency training to novice drivers and
9
provides Web-based communications tools that support and encourage the
development of new initiatives of local governments, industry and associations
to promote fuel efficiency. Auto$mart also offers information on opportunities
to use alternative fuels.
Freight The goal of the Freight Efficiencies and Technologies Initiative is to increase
Efficiencies and the freight transportation industry’s participation in voluntary climate change
Technology initiatives by: increasing the operating efficiency and environmental training
Initiative and awareness among freight operators and shippers; and demonstrating and
encouraging the take-up of innovative environmental technologies and best
practices within the freight transportation sector. This is a joint NRCan-
Transport Canada initiative.
Alternative The Transportation Energy Technologies Program works in partnership with
Transportation industry to develop and deploy leading-edge transportation technologies that
Fuels R&D minimise environmental impacts, increase the potential for job and economic
growth and extend the lifespan of Canada’s energy resource base.
Programme areas include: the development of alternative fuels and advanced
propulsion systems (gaseous fuels, alcohols, hydrogen, fuel cells, electric
vehicles and hybrids and related systems); advanced energy storage systems
(lightweight cylinders, adsorption technologies and flywheels); emissions
control technologies (for diesel and alternative fuel engines, lean-burn
catalysts and enhanced combustion chamber design); vehicle transportation
system efficiency (advanced materials and processes, auxiliaries and
regenerative breaking systems); and fuelling infrastructure (fuelling station
hardware, hydrogen systems and battery charging systems).
The programme works in co-operation with stakeholders in the domestic and
international transportation industries, including original equipment
manufacturers, industry associations, fleet managers, transit authorities,
utilities, provincial governments, research organisations, universities, other
federal departments, the US Department of Energy and the International
Energy Agency.
MONITORING/ Data gathering on energy consumption has been significantly improved
ASSESSMENT through the creation of a National Energy Use Database, launched in October
1991. The rationale is that by improving understanding of where and how
energy is used in Canada, resulting analyses will identify opportunities to
improve energy efficiency. As well, the data and analysis help Canada track
the effectiveness of efficiency programmes. This monitoring supports federal
data collection activities in each end-use sector.
The Demand Policy and Analysis Division of the Office of Energy Efficiency
(OEE) produces various policy and analysis reports to give a picture of the
current energy efficiency policies and the results achieved. These include:
Emissions Reductions from Federal Operations-Progress Report to the
Climate Change Voluntary Challenge and Registry; Energy Efficiency Trends
in Canada, 1990 to 1999; A Review of Secondary Energy Use, Energy
Efficiency and Greenhouse Gas Emissions; The State of Energy Efficiency in
Canada, Report 2001; and the Report to Parliament Under the Energy
Efficiency Act-1999-2000. These reports are updated annually.
In July 2001, the OEE published Energy Efficiency Trends in Canada: An
Update (see: http://oee.nrcan.gc.ca/general/trewnds/index_e.htm ), its sixth
annual review of energy efficiency in Canada. This report covers the period
1990 to 1999. The OEE Index shows a decline in value between 1990 and
1997, indicating that the various sectors of the economy have generated
energy efficiency improvements of about 1% per year during this period.
10
An evaluation of the OEE’s performance measures in 2000, conducted by the
Office of the Auditor General (OAG), concluded that NRCan has made
satisfactory progress in addressing the 1997 OAG recommendations on
NRCan’s energy efficiency initiatives. While progress continues, the OAG
follow-up noted improvements in the performance information (both
expectations and achievements) as well as an increased effort to link changes
in energy use to changes in greenhouse gas emissions.
Further For further information, please contact:
information
Kwaku Agyei
Office of Energy Efficiency
Natural Resources Canada
580 Booth Street
Ottawa, Ontario
Canada K1A OE4
Tel. +1 (613) 943 1785
Fax +1 (613) 947 4120
E-mail: KAgyei@NRCan.gc.ca
11
Energy
IEA Efficiency
Update
CZECH Updated December 2002
REPUBLIC
BACKGROUND
Energy The Czech Republic acceded to the UN Framework Convention on Climate Change
and the (UN FCCC) on 7 October 1993 on the basis of the Government of the Czech
Environment Republic Resolution No. 323 of 16 June 1993. On the basis of Resolution No. 530,
passed on 18 October 1995, the Minister of Foreign Affairs on 17 November 1995
requested the UN Secretary General and the FCCC depositor to take the following
measures:
· Delete Czechoslovakia from Annex 1 of the UN FCCC because Czechoslovakia
no longer exists and was never a Party to the Convention.
· Include the Czech Republic in the list of Annex 1 countries.
The Czech Republic presented on 17 October 1994 its First National Communication
to the Secretariat of the UN FCCC. In May 1995, the country received the in-depth
review mission of the Secretariat, which issued a report stressing that this
Communication outlines a set of measures to mitigate the impact of climate change.
On 23 November 1998, the Czech Republic signed the Kyoto Protocol (Czech
Republic Resolution No. 669/1998). During the 2008-2012 commitment period, the
country is committed to reducing total emissions by 8% compared to the 1990 level.
Today, total GHG (greenhouse gases) from fuel combustion are 20% below the
1990 baseline.
The Czech Republic's Second Communication on the process to comply with the
commitments under the UN Framework Convention on Climate Change was issued
by the Ministry of the Environment in May 1997. It outlines various measures ("no
regret measures") that have been applied to solve the country's economic and
environmental problems. These measures are defined in the document entitled The
State Environmental Policy of the Czech Republic approved by Government
Resolution No. 472/1995.
This communication included a projection of total GHG emissions of 192 Mt CO2
equivalent in 2010 compared to 188 Mt in 1990. Emission projections were updated
again in 2000 for three different economic growth scenarios. According to these
projections, under new macro-economic parameters the emission reduction from
1990 by 2008-2012 should be between 12 and 32%. In all cases, a potential reserve
may be available for possible emissions trading.
The Czech Republic's Third National Communication on the UN Framework
Convention on Climate Change was issued by the Ministry of the Environment on
28 December 2001. It analyses current circumstances in the area of climate change
in the country and documents the state of compliance with obligations following from
the UN FCCC and the Kyoto Protocol.
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
The Government of the Czech Republic should:
· Intensify efforts to develop a comprehensive multi-sectoral climate change
strategy, giving priority to enhancing energy efficiency.
State In May 1999, the government of the Czech Republic approved the document entitled
Environmental The Strategy of Protection of the Climate System of the Earth in the Czech Republic
Policy (Resolution No. 480/1999) which places protection of the climate amongst top-
1
priority environmental issues and sets out the main tasks for the individual sectors,
which should lead to fulfilling the quantitative tasks of the Kyoto Protocol. Key
emphasis is placed in the document on a wide range of measures related to energy
efficiency and on renewable energy.
A new Clean Air Act came into force on 1 January 2002. The main reason for
restructuring the current air protection legislation in the Czech Republic lies in
harmonisation and transposition of the relevant legislation of the European Union in
relation to the preparation for accession of the country to the European Union. The
new Act is comprehensive and includes protection against pollutants, protection of
the ozone layer and of the climate system of the earth in the sense of the UN FCCC
and of the Kyoto Protocol.
The new Clean Air Act will also provide a legislative basis for the National
Programme to Mitigate Changes in the Climate of the Earth, approved by the
government to replace the above-mentioned Strategy of Protection of the Climate
System of the Earth in the Czech Republic. The Act will set up reduction targets for
substances affecting the climate system and deadlines for achieving them.
National The National Energy Policy was approved by government decision No. 50 of
Energy 12 January 2000.
Policy
This basic document indicates the targets in the area of energy management
according to the needs of economic and social development, including
environmental protection. The long-term strategic targets of energy policy include a
gradual reduction of the volumes of energy and raw materials needed by the Czech
economy to meet the level of advanced industrial countries. The new sub-objectives
up to 2020 on the demand side are to remove price subsidies and distortions, to
create competitive markets for electricity and gas, to achieve freedom of choice for
consumers, and to ensure energy efficiency enhancement.
Energy The Energy Management Act (Act on Energy Management of the Czech Republic
Management No. 406/2000) was adopted by the Parliament on 25 November 2000 and
Act implemented on 1 January 2001. Chapter III of this framework law, entitled National
Programme for Economical Energy Management and Use of Renewable and
Secondary Energy Resources, deals, inter alia, with the various types of subsidies
from the state budget for specific programmes. Chapter IV, entitled Measures to
Enhance Economical use of Energy, deals specifically with the ways to promote
energy efficiency, such as minimum energy efficiency requirements, conditions for
house occupiers to fulfil determined thermal and technical properties of buildings,
energy efficiency labelling, energy audits, energy auditors and co-generation of heat
and power (CHP).
State Programme The State Programme to Support Energy Savings and Use of Renewable Sources of
to Support Energy (the State Programme) is a one year programme set up by the Ministry of
Energy Savings Industry and Trade which has been announced each year since 1991. It includes
and Use of energy saving measures in the sphere of production, distribution and consumption of
Renewable energy, wider use of renewable and secondary sources of energy and development
Sources of of CHP, counselling, implementation of new low energy consuming technologies,
Energy education, public education and promotion leading to more economic use of energy.
To carry out the State Programme, the Ministry of Industry and Trade has
established the Czech Energy Agency (see below).
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
The Government of the Czech Republic should:
· Make energy efficiency in the various consuming sectors a policy priority.
· Ensure that energy efficiency be given priority among energy policy objectives.
2
National The Czech Republic became an independent country on 1 January 1993, as a result
Circumstances of the division of the former Czechoslovakia into the Czech and Slovak Republics.
Since 1990, the country's economy has been undergoing transition from a centrally
planned to a market economy; the country's economic development has also been
influenced by the division of Czechoslovakia. The first stage of economic
transformation was marked by a deep recession as GDP decreased by about 22%.
The economy revived in 1995 and its growth has been encouraged by industrial
restructuring and revitalised investments.
The environment was seriously damaged during the 40 years prior to 1989: during
this period of controlled and centrally directed economy, there was an attempt to
achieve maximum production with no regard for the environment or natural
resources. The situation was aggravated by an excessively high energy demand
and uneconomical use of raw materials; imperfect or non-existent environmental
legislation, etc. This distorted economy resulted in disproportionately high emissions
of principal pollutants and a considerable waste of energy.
Profound changes in environmental protection and thus in energy economy began
after the political changes of November 1989. The Ministry of the Environment, the
Federal Committee on the Environment and various other environmentally linked
institutions were established. The first objective report on the state of the
environment was published. At that time, the foundations were laid for legal
protection of the environment. Reports on the status of the environment have been
published annually since 1993 showing that the deterioration seen in the 1970s and
1980s has been stopped or stabilised; the quality of the environmental is now
improving. In 1995 and 1996, annual emission inventories for 1991 through 1995
were worked out according to IPCC methodology. These inventories show that in the
period 1990-1995, the aggregated emissions of the three basic GHG gases (carbon
dioxide, methane and nitrous oxide) were reduced by 23.3% from 193.2 million
tonnes of CO2 equivalent to 148.2 million tonnes of CO2 equivalent.
The Czech Republic became a Member of the OECD on 21 December 1995. At the
end of October 1999, the IEA Governing Board invited the Czech Republic to accede
to the 1974 Agreement on an International Energy Program (IEP). On 22 February
2001, the Czech Republic officially become a full member of the IEA.
Czech The Czech Energy Agency (CEA) was founded by the Minister of Industry and Trade
Energy on 1 September 1995, as a publicly funded organisation carrying out the work of the
Agency former Energy Agency which existed in Czechoslovakia and then in the Czech
Republic. The CEA's main mission is to encourage and carry out activities aimed at
energy savings and mitigate negative environmental impacts caused by the
consumption and conversion of all kinds of energy. The CEA is in charge of
implementing the above-mentioned State Programme. In 2000, there were 19 staff
members at the CEA' s headquarters.
CEA implements programmes which:
· Save energy in industry, agriculture and transport.
· Optimise energy supplies of residential areas.
· Implement co-generation in small and medium-sized heat production sources.
· Reduce energy consumption in public and residential buildings, as well as
education and healthcare sectors buildings.
· Increase the use of renewable and alternative energy sources.
Other programmes focus on consultation, advertising, creating educational materials
for experts and for the general public; they also support the formulation and
establishment of energy concepts for towns and regions.
A total budget of Kcs 1 523 million was allocated to the Ministry of Trade and
3
Industry programmes from 1991 to 1995 (before the creation of the CEA). From
1996 to 1999, when the CEA was operational, the state budget totalled Kcs 1 226.5
million. The state budget, which was Kcs 362.6 million in 1997, decreased to
Kcs 341.9 million in 1998 and again to Kcs 315 million in 1999; because of budget
constraints, the budget for 2000 was Kcs 209.0 million and decreased to only 102.2
million in 2001. Government support is provided as financial grants and the
resources provided must be used within the given year on the basis of a selection
process. The realisation of the projects supported must occur within 18 months.
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
The Government of the Czech Republic should:
· Provide adequate funding to the Czech Energy Agency for its energy efficiency
programmes and co-ordinate it with other initiatives, especially those of the State
Environmental Fund.
SEVEn SEVEn, the Centre for Energy Efficiency, is an independent organisation, which is
not affiliated through ownership or in any other way to any domestic or foreign
company. From its creation until 1998, SEVEn functioned as a foundation but in
1999, owing to a change in Czech law on foundations, it was registered as a public
benefit corporation. SEVEn covers the costs of its activities through its contract
work, proceeds from consulting, and grants (in exceptional cases and to a limited
extent).
SEVEn focuses on overcoming barriers to the use of the cost-effective potential of
practical energy savings in the residential, industrial and commercial sectors. When
advising clients on energy efficiency options, SEVEn combines its technical
expertise with economical analysis, an overall assessment including the projected
environmental impact, proposals for the optimal method of financing and the
preparation of business plans for actual projects.
SEVEn has developed relationships with similar energy efficiency centres in other
countries and participates in many international projects. It co-operates with
domestic and foreign governmental bodies and organisations, financial institutions,
private companies, cities and other municipal governments, schools and hospitals,
various energy suppliers, NGOs and individuals.
State The State Environment Fund of the Czech Republic (SEF), established in 1991, is a
Environment specifically focussed institution for financing the preservation and improvement of
Fund the environment. In 1999, in implementing its programme for air protection, which
was not primarily concerned with decreasing energy consumption, SEF did realise
energy savings. All cases concerned the replacement by gas units of old coal-
burning furnaces or co-generation units which did not comply with the emissions
standards set by Decree No. 117/1997b of the Ministry of the Environment. This not
only led to considerable benefits for environmental protection but also to important
energy savings. In 1999, energy savings were not a condition for implementation of
specific programmes by SEF, but a secondary effect. However, from 2000, the SEF
programmes for air protection contain a requirement for an energy-saving approach,
to make it clear that energy saving is essential in an environmental project.
Energy
Efficiency
Funding
PHARE Financing for energy savings projects is difficult to obtain because of the lack of
Energy commercial financial resources and the lack of interest by private investors in
Saving funding such projects. To obtain this support, the European Commission has
Fund established the Energy Savings Fund backed by the European Union PHARE
4
resources. The Ministry of Industry and Trade has contracted the Czechoslovak
Trade Bank (CSOB) to operate and manage this fund. SEVEn co-operated in 1997
in developing the methodology for the management and administration of the Energy
Savings Fund, the procedures for realising funds and the documents subsequently
used by the CSOB.
PHARE funds (ECU 4.5 million) will be granted after a standard evaluation of a
client's credit rating and a technical and economic evaluation of the project. The
CSOB has funds at its disposal for ten years to extend loans at preferential rates for
small and medium-sized energy saving investments, in accordance with specific
qualification criteria, using its own resources on a 50/50 co-financing basis with
PHARE. These projects include the introduction of monitoring and regulation of
heating systems, double-glazing of windows, reduction of heat losses through walls
and roofs, improvements of lighting, etc.
Global The Global Environment Facility (GEF) provides grants and concessional funds to
Environment developing countries and those with economies in transition for projects and
Facility activities that address some aspects of the global environment. In August 1998, the
World Bank approved a Global Environment Facility grant of $5.8 million for the
Kyjov Waste Heat Utilisation Project to improve the efficiency of the Czech
Republic's energy sector. The project will reduce emissions of greenhouse gases
from the district heating system by increasing the energy efficiency and reliability of
heat and power supply to the Vetropak Moravia Glass factory and heat supply to the
city of Kyjov.
RESIDENTIAL/
COMMERCIAL
Energy The Minister of the Environment launched in 1994 an Environmentally-Friendly
Labelling Product Labelling Programme. Almost 200 products are labelled; they include
thermal insulation made of recycled paper, water-based paints limiting VOC
emissions, and small gas boilers for heating apartments and houses. These
products with limited GHG emissions account for more than 80% of all labelled
products
The Energy Management Act implemented on 1 January 2001 plans the introduction
of energy labels. Energy labelling is in preparation for those appliances for which the
European Union has introduced labels: refrigerators, washing machines, tumble
dryers, combined washer-dryers, dishwashers and lamps.
Thermal Stricter insulation standards for buildings have been in effect since 1994. They are
Insulation not mandatory, except where state money is invested. Most standards are
harmonised with the EU standards, if they exist, within one year of their introduction.
The enforcement and monitoring of building codes is considered insufficient.
Assuming that these standards result in a 30% decrease in energy consumption and
that roughly 15 000 apartments are built and retrofitted yearly, this measure
decreases annual CO2 emissions by about 40 000 tonnes of CO2.
A similar estimate is not available for commercial and administrative buildings,
however it is thought to be in the range of a few tens of thousands tonnes of CO2.
There is at present no retrofitting programme for individually-owned houses.
However, a programme for energy savings in individual house (modernisation of
apartment buildings) is being designed by the MRE which has made use of CEA's
experience. The programme includes both the building insulation and heating
systems and it mainly based on a soft loan scheme. The currently low cost-
effectiveness of thermal insulation measures discourages investments in the
renovation of buildings.
5
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
The Government of the Czech Republic should:
· Strengthen current insulation standards for buildings, as well as labelling and
energy efficiency standards for appliances in line with European Union
legislation and progressively make them compulsory.
Energy A one-off programme subsidising the sale of compact fluorescent lamps was
Efficient financed by CEZ, the electric power company and SEVEn funds. Almost 155 000
Lighting lamps were sold in two waves, costing about Kcs 20 million, which resulted in a CO2
emission decrease by an estimated 9 000 tonnes per year. This programme has not
been repeated.
Measurement The Ministry of Economy Decree No. 186/1991 stated that landlords of houses using
of Energy heat from a central source must measure heat consumption at the building's entry.
consumption Energy/heat consumption (quantity of heat for all consumers in building) was then
divided pro rata, according to individual consumption.
This Decree was replaced by the Trade and Industry Ministry's Decree No. 245/
1995 accompanying Act No. 222/1994 "on the conditions of enterprises and
administrations in the energy sector". The first Decree was mandatory; the second
Decree which was originally only a recommendation has been mandatory since
2001.
According to the Energy Management Act, house owners/occupiers, under the threat
of sanctions, must not exceed the determined standards for consumption of energy
for heating. If house occupiers do overheat, they run the risk of financial sanctions by
the state through a state-controlled institution, the State Energy Inspection.
Energy One condition for receiving financial support from the Czech Energy Agency (CEA)
Audits is that an energy audit be made which documents the energy conservation potential
that could be achieved. The audit methodology for residential, public and industrial
buildings has been drawn up by the CEA. Presently, about 300 energy auditors are
operational. Energy savings achieved on the basis of the audit range between 20
and 40%.
The energy audit and observation of its recommendations are mandatory for all
buildings owned by the state which is one of the largest landowners (offices,
schools, hospitals) and for buildings in which energy supply is financed by the state.
An individual energy audit of a residential house, without any immediate
implementation of proposed measures, can benefit from subsidies up to a maximum
of 80% of the cost. Proposed no-cost measures must be implemented within three
months of the finalisation of the energy audit. According to Sub-programme I of the
Government Programme for Support of Energy savings in 2000, a total of 132
projects for energy audits has been selected, the allocated subsidy amounting to
Kcs 4. 56 million.
Heat The total capacity of heat pumps installed after 1990 is about 35 MW. They are
Pumps mostly used for heating apartments. However a number of projects have been
implemented in industry, mainly in drying plants and in the food and woodworking
industries. Annually, they account for 55 GWh of savings and a 20 000 tonnes
reduction of CO2 emissions.
District District heating is an important part of the energy system in the Czech Republic as
Heating 30% of the 10 million households are connected to a local district heating network,
providing 20% of the sector’s final energy consumption. Heat also accounts for 12%
of energy consumption in the service sector and 14% in the industry sector.
6
Household consumption is subject to large seasonal variations and minor daily
variations while that of industry is more constant. Space heating is the main energy
use of households for which the market share of district heating has been estimated
at 35% (1997 survey).
District heating systems are organised locally and operate in some 50 cities.
Individual heating companies are also power producers. The sector was fully
privatised in 1992-1994 through a voucher privatisation. A few units belonging to the
army, schools, state hospitals and other health care facilities remain under state
ownership. There have been significant foreign acquisitions of companies.
International Power (UK) gained control of EOP 748 MWt (363 MWe), the main
independent power producer (IPP) and holds a majority share in Prazska
Teplarenska, the Prague district heating company. Dalkia (France), a subsidiary of
Vivendi and EDF controls major companies in North Moravia with a capacity
exceeding 3 000 MWt. Cinergy, a US utility, controls over 1 440 MW of CHP power
generation facilities. Horizon/United Energy in the United States has three plants
totalling 1 200 MWt. Most important producers are members of Teplárenské
sdružení, the association based in Pardubice.
New The 1994 Energy Act, which previously regulated the sector, was replaced in
Energy January 2001 by the New Energy Act (No.458/2000). The construction of new
Act heating plants above 30 MWt capacity has to be approved by the Ministry of Industry
and Trade and units below this limit by regional authorities. Criteria for approval in
both cases include the use of domestic and local energy sources, energy efficiency
and conditions of solvability of the investing company.
According to current legislation, there is no compulsory buy-back tariff between heat
generators and heat distributors; prices are fixed by contract. As electricity sales
make up an important part of the district heating revenues (up to 80%), liberalisation
of the electricity market is likely to lower electricity prices and reduce the revenue of
CHP operators. To offset this, the new Energy Act includes an obligation of purchase
to transmission and distribution networks for the electricity generated by CHP.
However, the buy-back tariff is not set by the New Energy Act so co-generators and
buyers (distribution company or national grid) will have to negotiate the prices. Along
the same lines, the New Energy Act also contains an obligation of purchase for heat
generated from CHP, industrial process, renewable energy and environmentally
clean incineration. However, there are exemptions from the obligation where the
end-consumer will not accept a higher tariff or for non-compliance with technical
parameters.
The Ministry of Finance regulates the household tariff for each network on a cost-
plus-fees analysis method. Since 1994, regulation on prices for industrial heat users
has been lifted.
As 50% of households have individual meters and flow regulation, household tariffs
for the remaining consumers do not reflect actual consumption of heat but are based
on the size of the apartment and/or the number of persons per apartment. This tariff
structure appears complicated and inaccurate in evaluating effective heat
consumption and providing effective energy-saving incentives. Heat subsidies were
abolished in 1996 but the VAT rate remained at 5%. With the New Energy Act which
came in force in January 2001, the Regulatory Energy Office is in charge of pricing
and licensing.
Activities Implemented Jointly
In 1996-1999, five Activities Implemented Jointly (AIJ) projects were approved and
implemented by the Ministry of the Environment, two of which took place since 1998:
· A district heating plant burning biomass in the municipality of Hostetin in co-
operation with the Netherlands government.
7
· Modernisation of a CHP plant in the Skoda Mladá Boleslav automobile company
in co-operation with the German government.
The annual benefits of these projects led to a decrease in CO2 emissions of 49 kt
and 179 kt respectively.
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
The Government of the Czech Republic should:
· Promote cost-effective cogeneration and metering at building level.
· Reconsider the obligation for electricity distribution companies to purchase
electricity from CHP.
Financial The Czech Energy Agency (CEA) is preparing a draft for MIT of the allocation of
Incentives state subsidies to support various energy efficiency measures for apartment buildings
and houses. This concerns the use of active solar systems which could reduce
energy consumption for water heating by 30%. A subsidy of up to 30% of the total
investment cost can be granted for demonstration of the systems, up to a maximum
of Kcs 5 million per project. The subsidy is limited to Kcs 250 000 per apartment. For
residential buildings built by traditional brick technology with low energy efficiency, a
subsidy can be granted for energy-efficient measures including the installation of
insulation and the reconstruction of existing heating systems aiming at an energy
saving of at least 45%. For demonstration actions, the subsidy amounts to 15% of
the total investments, up to a maximum of Kcs 10 million. The subsidy is limited to a
maximum of Kcs 30 000 per apartment in a residential house and to Kcs 80 000 per
house.
Under Programme I of the State Programme for 1999, a total of Kcs 81.54 million
was allocated through the CEA for 87 energy efficiency projects in residential
buildings. This resulted in energy savings of about 107 000 GJ/year (762 Kcs/GJ). In
2000 76 projects were supported, the subsidy amounting to Kcs 61.6 million with
energy savings 84 000 GJ/year (ratio 734 Kcs/GJ or 770 $/toe.
The Ministry of Regional Development (MRE) provides support for the repair,
reconstruction and modernisation of apartment buildings constructed using the
concrete panel technology, of which there are more than 1.1 million apartments in
the Czech Republic. Financial subsidies are provided along with contributions to
cover interest and guarantees for activities related to repairs and reconstruction of
concrete panel apartment buildings. Preference is given to economically depressed
areas and areas with disturbed environment. Support is also provided for insulating
buildings, improving heating systems, distribution pipes and sources of heat and hot
tap water, and use of renewable energy sources in buildings which could have a
favourable effect on energy efficiency, and thus on GHG emissions. The budget of
the programme for reconstruction of concrete panel buildings for 2001 equals about
Kcs 300 million and support is expected for the repair of about 20 000 apartments,
and then for about 50 000 apartments annually. The duration of the programme is
limited by the volume of financial means available.
Education One of the main activities of the CEA is the organisation of seminars and training
and Public sessions and publication of materials for energy consumers. Private energy
Awareness consumers are targeted through the network of 60 Energy Advice and Information
Centres (EKIS) installed by the CEA. They cover the entire country, offering free
brochures, guidebooks and software (products of advisory service) and provide a
practical advisory service.
Most of the EKIS centres are operated by private consultants selected by the CEA to
give energy information to the public. These firms specialise in one specific area but
have general knowledge on other subjects. SEVEn also provides free basic
8
consulting on energy savings in households and issues a quarterly information letter
"News at SEVEn". A country-wide information campaign on energy conservation
has not been carried out since 1990.
In the framework of Programme VIII. B, Public awareness, Processing of Products
for Consulting, of the Government Programme for Support of Energy Savings for
1999, funds were used to finance the following activities:
· Energy consulting and Information Centres: 50 agreements signed on provision
for consulting, with overall costs of Kcs 21.6 million, support Kcs 13 million.
· Handbooks, studies and other documents for consulting activities on energy
savings: 55 activities supported at a total cost of Kcs 11.97 million.
· Support for workshops, exhibitions on energy savings: 52 projects financed for a
total expenditures of Kcs 4.15 million.
· Printing of proceedings, handbooks, and computers programmes: 26
agreements signed for a total support of Kcs 4.87 million.
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
The Government of the Czech Republic should:
· Strengthen the information, education and motivation campaign of the Czech
Energy Agency for energy savings by all end-users.
· Involve all economic players (municipalities, utilities, industries, building
developers) in energy efficiency information, dissemination and project
development.
Measures under
Consideration
Energy Both energy efficiency labelling and standards for household appliances in the
Efficiency Czech Republic are developed in the framework of the European Union SAVE II
Standards project, a task carried out by SEVEn. On the basis of knowledge of existing
legislation in co-operating EU countries (Austria, France, Greece) corresponding
laws, regulations and implementing documentation will be drawn up for the Czech
Republic. At the same time, the action plan for enforcing the legislation will be
prepared and measures and procedures for consumers and suppliers proposed.
PUBLIC SECTOR
Energy Audits in Based on Act No. 50/1976 as well as Act No. 22/1997, energy audits were not
the Public sector mandatory in all buildings of the public sector including the state, regions and
communes with the exception of some legally prescribed cases. The new Energy
Management Act includes mandatory audits for public and private facilities (with
respective consumption above 1500 GJ and 35 000 GJ) and the obligation to
implement low cost audit recommendations. However, funding for the audit as well as
the implementation of the recommended measures face the problem of limited
financial resources.
Model The Energy Management Act No. 406/2000 establishes the obligation for each of the
Energy 14 regions to prepare a regional energy concept within five years in order to create
Concepts conditions for efficient energy use.
The Ministry of the Environment supports the preparation of model energy concepts
for municipalities and regions through its Guidelines for Energy Concepts. A total of
80% of these concepts focus on the efficient use of energy and renewable energy
source potential.
SEVEn, which is involved in the preparation of feasibility studies and business plans
9
for towns and municipalities on supplying and using energy and in the preparation of
such energy concepts, offers guidance to the Czech Energy Agency (CEA) on model
energy concepts. These planning documents covering a 20-year period, which are
modified as necessary, include practical approaches for the economical use of
energy and of renewable energy sources, with an evaluation of the impact on the
environment.
Various energy concepts have been elaborated for several towns and regions, for
instance in 1999 for the Cities of Prague, Tábor, Bechyne, Nymburk.
According to the State Programme, in 2000, grants to design a model energy
concept for towns and municipalities amounted to 50% of the overall investment
expenses with a maximum of about Kcs 500 000 per project. In that year, 24 projects
were selected for a total subsidy of Kcs 4.92 million.
Energy In a 1998 contract with the Czech Association of Environmental Technology, SEVEn
Performance was in charge of proposing a model procedure for applying the Energy Performance
Contracting and Contracting (EPC) method to the public sector. The outcome of the work was to
ESCo support the installation of energy efficient equipment in public sector buildings
administered by the civil service, educational and health care institutions, defence,
and security organs, cultural bodies and the like.
The basis for implementing an EPC in the public sector was laid down in compliance
with Act No. 199/1994. ESCos have been developed for upgrading heating and hot
water systems in hospitals and schools and others.
For example, the Energy Performance Services Czech Republic (EPS CR), an
ESCo which is a subsidiary of a privately-owned energy services company based in
the United States, implemented two performance contracting projects in two large
hospitals, the Bulovka Teaching Hospital in Prague and the Jilemnice District
Hospital in north-east Bohemia. Both hospitals needed a significant upgrade of their
central heating systems but faced a lack of investment capabilities.
In the case of the Bulovka Teaching Hospital, EPS CR implemented in September
1995 four energy conservation measures: switching the existing central heating
system to district heating, implementing a new energy management system,
installing a new air handler recovery system and converting and upgrading to a new
high energy efficiency natural gas boiler. Total costs of these measures amounted to
about $2.7 million, producing annual energy savings of about $700 000,
corresponding to a four-year simple pay-back.
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
The Government of the Czech Republic should:
· Encourage third-party financing.
IFC/GEF The IFC/GEF Efficient Lighting Initiative (ELI) is a $1.25 million programme funded
1
Efficient by the Global Environment Facility (GEF) and designed by the International Finance
Lighting Corporation (IFC) and by local counterparts in each participating country. ELI's goal
Initiative is to reduce greenhouse gas emissions by accelerating the penetration of energy-
efficient lighting technologies in emerging markets. It will lower market barriers to
efficient lighting technologies in the Czech Republic and also in six other developing
or transitional countries. The ELI budget for the Czech Republic is $1.25 million.
1
. The International Finance Corporation is the private-sector body of the World Bank Group and is the largest
multilateral source of loan and equity financing for private sector projects in developing countries. The Global
Environment Facility is a multilateral entity, which provides grants and concessional funds to recipient countries for
projects to protect the global environment.
10
Implementation began in the spring of 2000, with SEVEn as the Czech project
manager; the administration of the project is carried out by the Danish company
Danish Power Consult A/S. Other Czech organisations participate in its
implementation. In the Czech Republic, ELI will catalyse the installation of energy-
efficient lighting, primarily in the public sector, with special emphasis on street
lighting. It will also strengthen the capabilities of lighting businesses, particularly in
the area of project financing. ELI may also promote compact fluorescent lamps
(CFLs) for the residential sector. The initiative will run for three years (2000-2003).
The expected benefits are estimated in a direct impact on savings at a total of 390 kt
of CO2 emissions in 2000-2003 and, in subsequent years, as indirect benefits at the
level of 425 kt of CO2 emissions saved annually.
Manuals for Through a contract with NOVEM, the Dutch Energy Agency, SEVEn prepared a
Municipalities financial manual for cities and smaller municipalities entitled How to Develop
Municipal Energy Projects. The manual contains information on the purpose and
method for preparing a feasibility study and business plan; it includes an overview of
selected domestic and foreign sources of financing and a description of energy
performance contracting along with domestic ESCos that already offer such
services.
Co-operation In 1998 SEVEn took part in the European Union's long-term Urban and Regional
with Energy Efficiency Programme as a consultant for major Czech cities carrying out
Municipalities demonstration energy-saving projects under the programme in co-operation with EU
cities. Demonstration projects were carried out in the areas of energy-efficient public
lighting, central heating reconstruction, building insulation, and waste management.
INDUSTRY
Energy Energy audits are mandatory in industrial companies which consume 35 000 GJ/year
Auditing (or 835 toe). Audits proposed by CEA with limited cost contribution remain technically
orientated (flow chart) rather than focusing on cost-effective measures; there are
some doubts that industrialists appreciate the usefulness of energy audits.
State Subsidy The State Subsidy Programme for Energy Savings in Industry has been developed
Programme by the Czech Energy Agency since 1996 to support the implementation of measures
with lower energy intensity, the efficient use of energy losses from technological
processes and the application of modern technologies and materials for energy
saving measures. The proposed measures must use environmentally friendly energy
savings ideas. A new technology project is accepted on the condition that it has
been successfully implemented as a pilot project and after undergoing a series of
verifications. The programme's evaluation should offer entrepreneurs reliable
information to help them implement further measures.
Ten energy savings measures in the manufacturing industry were selected in 1997
at a total investment of Kcs 74.8 million and a state subsidy of Kcs 13.5 million.
Annual savings are 181.8 TJ representing 0.05% of the total manufacturing
industry’s consumption. In 1998 14 projects were supported for a total investment of
Kcs 158.7 million and a state subsidy of Kcs 19.7 million. Annual savings are
203.2 TJ. In 1999 24 projects were supported for Kcs 31.5 million, a total investment
of Kcs 420.6 million, energy savings 417.1 TJ/year. For the period 1997-1999, the
average unit investment cost was 817 Kcs/GJ, 412 Kcs/GJ in 1997 increasing to
1 010 Kcs/GJ in 1999.
PHARE To be eligible for loans from the PHARE Energy Saving Fund (see above), projects
Energy have to generate savings by reducing energy consumption of any type (electrical,
Saving gas use, space heating, coal technology), but also by saving the costs of energy
Fund (cheaper fuel), operation and maintenance or for labour costs. At least 40% of the
energy savings must be achieved through reduced energy consumption. The project
size must be at least Kcs 2 million and at the most Kcs 50 million. The duration of
loans and repayment terms are four years or longer (to a maximum of ten years).
11
The applicant companies are required to pay at least 40% of the total project cost.
The PHARE Energy Saving Fund awarded 13 loans for energy efficiency projects in
industry during 1998 amounting to Kcs 200 million (two-thirds of the available funds).
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
The Government of the Czech Republic should:
· Strengthen fiscal and financial incentives for energy efficiency projects.
Information
News at Since 1993, SEVEn has published News at SEVEn, a quarterly newsletter devoted
SEVEn to energy efficiency with a press run of about 4 400. It is distributed free of charge to
specialised manufacturers, project, service and consulting firms, public institutions,
local governments and other expert circles interested in the energy sector and
energy efficiency.
EEBW Since 1992, SEVEn has organised an annual international conference and exhibition
called Energy Efficiency Business Week (EEBW) which is an opportunity for
specialists from the Czech Republic, Central and Eastern European countries and
other countries to discuss current events and issues in the energy efficiency area.
EEBW 2000 took place on 17-18 October 2000 in Prague and focused on a range of
topics, the most important being:
· The role of energy saving during the liberalisation of the energy market.
· Energy saving in relation to the requirements for harmonisation of the economies
of associated countries with the European Union standards.
TRANSPORT In the context of the programme to stabilise and reduce CO2 emissions, the following
measures have been implemented and/or supported by the government in the
transport sector:
· Support for public transport provided by the Transport Policy of the Czech
Republic approved by government resolution in 1998 to enterprises which carry
out municipal public transport and to Ceske Drahy (Czech Railways) as an
alternative to individual car transport.
· Continued development of integrated public transport systems in cities through
state, municipality and district subsidies and tax breaks.
· Implementation of the Highway Development Programme, including the
development of ring roads and city bypasses as well as access roads to
highways.
· Support for the development of combined transport, through a wide range of
measures such as favourable taxation, adequate infrastructure, special railways,
etc.
· Speed limits of 90 and 130 km/h for cars and 80 km/h for lorries.
· Taxation only on lorries.
· Progressive charges on engine capacity.
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
The Government of the Czech Republic should:
· Adapt the current energy efficiency strategy to market liberalisation and to
growing demand in the energy-consuming sectors, especially transport.
12
MONITORING Currently, the energy efficiency programme of the Czech Energy Agency is
AND independently evaluated each year by SEVEn. This has resulted in several
EVALUATION improvements in the state support programme regarding both project results and
administration.
The Energy Management Act stipulates that the Ministry of Industry and Trade, in
agreement with the Ministry of the Environment, has to prepare and assess the four-
year state programmes of energy efficiency and renewable energy sources at least
once every two years and that the government be informed of the results. If
necessary, the Ministry of Industry and Trade, in agreement with the Ministry of the
Environment, prepares proposals for changes in the State Programme and submits
them to the government.
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
The Government of the Czech Republic should:
· Carefully monitor the development of energy efficiency programmes and their
cost-effectiveness.
Further For further information, please contact:
Information
Dr. Jirí Barton
Chief Executive
Czech Energy Agency
Vinohradská 8
12 00 Praha 2
Tel: +420 2 2421 7714, 2421 7774
Fax +420 2 2421 7701
email: cea@ceacr.cz
13
(QHUJ\
IEA (IILFLHQF\
8SGDWH
DENMARK Updated April 2003
BACKGROUND
Energy and The first National Energy Plan of 1976, together with further development of
Environment policies during the 1980s, resulted in major restructuring of the energy system
Plans in Denmark. The policies implemented included, inter alia:
x Massive change of heat supply from individual oil furnaces to district
heating and natural gas.
x Elimination of oil used for district heating in favour of local resources
(straw, wood, waste) and natural gas.
x Expansion of combined heat and power systems in order to increase total
system efficiency.
x Comprehensive energy saving programmes in the industrial and
residential sectors.
x Strengthening of standards for new buildings.
In 1988, the Danish government presented its Plan of Action on Environment
and Development as a follow-up to the recommendations set out in the report
from the World Commission on Environment and Development, the
Brundtland Report and in the United Nations’ Environmental Perspective to
the Year 2000. This action plan set out the targets to be reached and the
initiatives to be implemented in all sectors in order to obtain sustainable
development.
The Energy 2000 Plan (Energi 2000) followed in 1990 based on a political
agreement of 20 March 1990. It introduced the goal of sustainable
development in the energy sector and formulated the national objective of a
20% reduction in CO2 emissions by 2005 compared to 1988. This is still one
of Denmark's main objectives in energy and environmental policy. Energy
2000 focused on savings in energy consumption, increased efficiency of the
supply system, expansion of the use of renewables, especially wind, and on
research and development. Action in these areas has been followed up by
political agreements and legislation.
The Energy 2000 — Follow-up from 1993 contained a review of trends and
policies together with a number of other initiatives.
The energy plan, Energy 21 (Energi 2001), approved by the Danish
Parliament in April 1996, deals with international market conditions and long-
term environmental aspects as the overall challenges to the energy sector.
The major environmental challenge is to achieve convergence of emissions of
industrialised countries at a level that would be globally sustainable. The plan
sets out the framework for a number of initiatives focusing especially on
reducing the requirements for resources and the impact on the environment
from the energy sector. One of the targets of Energy 21 was the improvement
of energy intensity (defined as final energy consumption in the end-use sector
per unit of GNP) by 20% by 2005 in relation to 1994 figures. The June 1999
follow-up of Energy 21 projected that energy intensity would improve by 25%
in 2005 and by 34% by 2012, more than fulfilling the established targets.
Denmark is examining ways to reduce final consumption by an average of
0.5% per year. Sectoral targets were proposed in a September 2000 report of
the Danish Energy Agency (DEA) entitled Promotion of Energy Savings. The
savings target of 2.1 million tonnes of CO2 is 3.5% of the total Danish national
objective to reduce CO2 emissions by 20% by 2005 from 1988 levels.
In March 2000, the government presented Klima 2012 (Climate 2012), Status
and Perspectives for Denmark’s Climate Policy which offers a complete
overview of Danish climate policy and paves the way for a process whereby
the required groundwork is laid for Parliament to decide on Denmark’s
ratification of the Kyoto Protocol. To fulfil its national and international
obligations, the government will:
x Update the 1996 energy action plan, Energy 21.
x Submit an action plan for the transport sector.
x Establish a programme for analysis, developing and testing of the Kyoto
mechanisms.
x Determine future regulation of the industrial greenhouse gases.
x Submit analysis and assessments of greenhouse gas reduction potentials
in the agricultural sector.
Energy As the first step in strengthening energy-saving initiatives, necessary to reach
Saving long-term energy and environment policy targets, Act No. 450 of 31 May 2000
Act No.450 is a general act on the promotion of energy savings in energy consumption.
The Act is the overall framework for the work of realising energy savings
which are necessary to fulfil the Danish environmental commitments. The Act
determines the overall framework for co-ordination and priority given to both
centralised and decentralised savings initiatives for all sectors, actors and
measures. It enables the appointment of local energy conservation
committees to co-ordinate local efforts to save energy, and establishes new
initiatives for energy conservation in the public sector.
Natural Gas On 29 May 2001 a political Agreement was reached on natural gas and
Supply and energy savings. In this Agreement it was stated that further energy initiatives
Energy Savings were necessary to reach the environmental targets. The headlines in the
Agreement Agreement are the following:
x The establishment of energy savings targets in 2005 for individual sectors,
including the public sector, private trade and service, households and
manufacturing.
x The introduction of behaviour-regulating product taxes that promote the
sale of more energy-efficient products
x The translation of state energy-saving initiatives, including subsidy
schemes into framework programmes for which tenders are invited in
order to ensure the greatest possible efficiency in the activities.
x An expansion of the activities of the Electricity Saving Trust so that
purchase agreements and other schemes to promote energy-efficient
electric appliances are developed
x Energy saving efforts in the public sector to be strengthened by state
institutions; in municipal areas, enhancement is to take place through
agreements with the counties and primary municipalities.
x Energy saving activities within private trade and service within the
framework of a product-aimed strategy.
x Activities of the electric network undertakings in relation to large-scale
customers to be boosted so that at least 10% of their commercial
customers are offered energy advisory services every year.
This political agreement also stipulates that other economic incentives for
energy savings will be discussed with a view for adoption prior to the Energy
Saving Review in September 2002.
Institutional Following the general election in late November 2001, a new large Ministry for
Framework Economic Affairs, Trade and Industry was created in January 2002 led by the
Deputy Prime Minister; it is responsible for economic affairs, industry, trade,
the internal market of the European Union, shipping, financial institutions,
competition, housing consumers, tourism and energy. It manages ten
2
different, major government agencies, including the Danish Energy Agency.
The former Ministry for Environment and Energy is now only responsible for
environment issues. There is no Directorate General for Energy in the new
Ministry for Economic Affairs, Trade and Industry. The view is that energy
should be seen as an integral part of all the other responsibilities of the
Department. Nevertheless, energy and international co-operation on energy
are still high on the agenda for the Ministry.
CO2 The combined effects of Energy 2000 and the Transport Action Plan were
Reduction expected to be a more than 20% reduction in emissions from energy use in
Targets 2005 compared to 1988. This target was subsequently approved by
Parliament.
Internationally, Denmark made the commitment to stabilise emissions at the
1990 level by 2000 within the framework of the United Nations Climate
Convention, and as a contribution to the overall stabilisation by 2000 for the
countries of the EU to achieve a 5% reduction in 2000 compared with 1990.
Denmark signed the United Nations Framework Convention on Climate
Change in Rio de Janeiro in June 1992, ratified it in December 1993 and
submitted its first national communication entitled Climate Protection in
Denmark — National Report of the Danish Government in accordance with
Article 12 of the United Nations Framework Convention on Climate Change in
September 1994.
Denmark’s Second National Communication on Climate Change, submitted
under the UN Framework Convention on Climate Change was issued in 1997
prior to the third meeting of the Conference of the Parties at Kyoto.
Following the Kyoto agreement, Denmark has agreed under the Burden-
1
Sharing Agreement of 17 June 1998 to reduce its emissions by 21% of the
1990 levels for the period 2008-2012. Specifically, the Danish commitment is
compared to the adjusted 1990 emissions level of approximately 80 Mt CO2
equivalent.
On 30 May 2001, Denmark's Parliament agreed, by a sizeable majority, for the
government to ratify the 1997 Kyoto Protocol on global warming. Denmark's
actual ratification of the Treaty will take place along with that of other
European Union member states, anticipated in advance of the World Summit
on Sustainable Development in Johannesburg in September 2002.
Preliminary figures on future greenhouse gas emissions for 2000 showed that
overall CO2 emissions in Denmark have been reduced by 11% since 1988,
and that the country is on track to meeting its 2005 commitments for a 20%
2
CO2 reduction with initiatives already launched.
In Climate 2012 published in 2000, Denmark estimated that it will achieve a
reduction of 16.6% of CO2 (to 63.6 million tonnes of CO2) by 2008-2012 with
existing policies and measures. A further reduction of 3.2 million tonnes of
CO2 would need to be achieved to meet the Danish target of 21% (adjusted)
for the period.
Based on updated and consolidated projections prepared in connection with
the ratification legislation for the Kyoto Protocol, total Danish emissions of
1. The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
2
This total is only for CO2 and is calculated somewhat differently than for the Kyoto Protocol target which
includes six greenhouse gases. The Danish national target also includes emissions from international transport
(aviation and marine bunkers are excluded from Kyoto numbers). It excludes emissions from cement, lime and
yellow brick production and from flaring, and plastics in incinerated waste as well as removal by sinks: all these
are included in the Kyoto calculations.
3
greenhouse gases are now projected to be reduced 18.6% below 1990 levels
during 2008-12 (to 62.2 million tonnes of CO2). The projection is based on the
adjusted 1990 baseline, and on policies and measures already implemented
and adopted.
Denmark’s expected gap has thus been reduced since the estimate in Climate
2012, and now stands at 1.8 million tonnes of CO2 (adjusted).
Baltic The Baltic countries' energy ministers (BCSS) and the European Commission
Energy agreed on 1 December 1998 in Stavanger (Norway) on a joint working
Efficiency programme to enhance co-operation in the Baltic energy sector.
Group
This programme includes formation of a working group on energy efficiency
(including CHP and DH) – the Baltic Energy Efficiency Group (BEEG). The
BEEG assesses energy efficiency options and potentials with a focus on
combined heat and power and district heating (including technologies,
financing and legislation). This preparatory work included a seminar in
September 1999. BEEG will be co-chaired by Denmark and Poland and
consists of governmental representatives and experts from the eleven Baltic
countries plus the European Union.
The working group on energy efficiency continued its work in 2000 on the
following issues: New financial instruments, co-ordination and follow-up on
activities taken by other international institutions and organisations and
development of combined heat and power production (CHP).
In the May 2001 report, the working group pointed out that the results of the
Baltic Chain project, with the design of a new financing mechanism with the
establishment of a clearinghouse to ensure quality and facilitate the link
between projects and financing, is the essential keypoint. Furthermore it was
pointed out that the potential for CHP is huge and that the development of a
common regulatory framework and even market conditions for district heating
in the region would support the preferred development offering environmental
benefits and security of supplies.
In addition, the group recommends development of reference standards for
CHP technologies -- target values, check lists for improvement projects and
for efficient district heating systems and target values for improvement
projects.
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Building The code for new buildings was tightened in several stages in 1977 and 1985.
Codes As decided in the previous energy action plan, Energy 2000, a new code has
been introduced which will cut an additional 25% off net heating demand,
reducing it to about 70 kWh per square metre per year. The code also sets
limits on electricity consumption for ventilation and will enforce low
temperature heating systems to increase the efficiency of various heat supply
systems, such as district heating systems, condensing boilers, solar energy
and heat pumps. The new code entered into force in 1996 (large buildings)
and 1998 (small buildings).
A further reduction to 45 kWh per square metre is scheduled to enter into
force around 2005. Buildings respecting this limit through combined
exploitation of passive solar techniques, insulation and coated glazing are
4
already being built.
Energy Every house-owner may have an audit of his building, describing the present
Labelling energy conditions with recommendations for possible energy saving measures
of Smaller in the building shell and heating equipment. When dealing in real estate, an
2
Buildings audit is required if the building has an area of 1 500 m or less.
The result of the audit is an Energy Label describing the energy condition on a
scale from A1 to C5 (A1 is best). Heating, electricity and water consumption
are rated on the basis of a standard calculation – not actual consumption
because it is linked to the particular seller’s household (number of persons
and behaviour). Another part of the audit is an Energy Plan informing the
buyer which measures could be worthwhile carrying out in the short or long
run to save energy.
This mandatory scheme was implemented in 1 January 1997 and replaces the
heat inspection scheme that had been in operation since 1981.
The scheme was evaluated in 2000 and the conclusions were that there is a
large energy saving potential in existing buildings. Forty-five per cent of the
owners of labelled houses actually invested in heat saving measures. Even
though the scheme is mandatory, only around 50% of the traded houses were
covered by an energy certification. The largest group of labelled buildings is
single family homes. From 40 000 to 50 000 buildings are labelled every year.
On the basis of other conclusions about the set-up of the scheme, changes
were made in mid-2001 to empower the steering committee of the scheme to
take over more responsibilities for the success of the scheme.
Energy The annual supervision of larger buildings (more than 1 500 square metres) is
Labelling carried out by between 500 and 700 specially trained consultants. About
of Larger 25 000 buildings are concerned.
Buildings
(Eco-scheme) Every month all buildings, except industrial buildings, and those with very low
energy consumption, with a surface of more than 1 500 square metres must
register their consumption of heat, electricity and water. Once a year, a
consultant makes an audit comprising an Energy Label and an Energy Plan.
The Energy Label evaluates the consumption of heat, electricity and water on
scales from A to M (A is best) in comparison with average figures for
comparable buildings. The Energy Plan informs the building owner about
relevant measures for energy saving in the short and long run.
This new scheme runs parallel to the above-mentioned scheme concerning
smaller buildings. It replaces the VKO scheme (statutory heat inspection of
larger heat furnaces), in operation since 1981.
This scheme was also evaluated in 2000 and the major conclusions were that
the scheme works very well for those who participate in it, but around half of
the buildings still do not fulfil the requirements. Lack of awareness of the
existence of the schemes contributed to non-participation. The energy savings
in the buildings following the scheme are larger than in those outside the
scheme. Furthermore, the investments in energy savings are more focused in
buildings participating in the scheme and those responsible for energy are
more aware of the results of investments.
The DEA has developed an action plan to improve the implementation of both
schemes as well as further measures.
Inspection In the statutory annual inspection of oil burners, the owner has to show the
of Oil Burners chimney-sweep a contract with an authorised service provider or pay the
5
chimney-sweep for the inspection.
The inspection includes measurement of temperature, CO and CO2 content of
the smoke and an evaluation report for the owner. Based on fixed maximum
values for these figures, the chimney-sweep can oblige the owner to have the
oil burner adjusted within four weeks. The 700 000 small oil burning furnaces
in Denmark are inspected by 2 500 trained consultants.
Supervision has resulted in improved energy efficiency. For example,
average chimney heat loss has been reduced from 19% to 12-13%.
Energy In 1994, Parliament approved an act empowering the Minister of Energy to set
Efficiency efficiency standards for electrical appliances and other equipment. Efficiency
Standards standards for refrigerators/freezers were adopted in 1996 as EU-wide
standards and became effective late 1999, bringing efficiency improvements
of 15% compared to the 1992 market. The Directive does not include a
second phase.
Energy An extensive scheme for energy labelling of appliances was notified to the
Labelling European Union by the Danish government in April 1990. The EU Directive
for labelling of the first category of appliances (freezers and refrigerators)
came into force in January 1995. EU Directives for washing machines and
dryers were implemented in October 1996. Directives for other major
household appliances and light sources will follow.
A Danish system for informing consumers of the electricity consumption of
various appliances, and for facilitating comparisons between different
competing products (so-called "energy arrows"), has been devised by the
utilities with support from the government, as a complement to EU-wide
labelling Directives. These complete market lists of various consumer
appliances.
Individual Individual metering of the use of electricity, district heating, gas and water in
Metering buildings has been mandatory in new buildings since 1996 and in existing
buildings since 1997.
Informative This initiative aims at introducing informative electricity bills for households
Electricity and for customers in the public and private service sectors. The initiative will
Bills include more frequent meter readings, regular billing of actual consumption
and graphic presentation of the customers’ electricity consumption. The
Danish Association of Power Companies has appointed a working group to
prepare the practical implementation of informative electricity bills. The group
reported in February 1994. The informative electricity bills are currently used
by the utilities.
As a part of the new regulations for the electricity market, the distribution
companies have to introduce informative electricity bills. Minimum
requirements for such bills are developed in co-operation with the sector.
Ban on The government has amended the Heat Supply Act to extend the ban on
Conversion to electric heating to the conversion to electric heating of existing buildings
Electric Heating located within a district heating or natural gas supply network. The
in Existing amendment to the Heat Supply Act came into force on 1 March 1994. By
Buildings 2005, this amendment is expected to reduce the number of electrically heated
homes by about 7 000.
"Project In 1998 the government introduced a specific programme to promote energy
Window" efficient windows in households and the public sector. A result of the
programme was the introduction of an energy label system for windows. The
programme has also supported the development of more energy-efficient
6
windows, and information campaigns carried out in 2001 in co-operation with
branch organisations and companies. From 1998 to 2000 the Danish Energy
3
Agency initiated projects amounting to DKK 25-30 million in co-operation with
the manufacturer and branch organisations, etc. The market share for energy-
efficient windows has increased to around 60% in recent years. The
government anticipates that the annual energy saving will reduce CO2
emissions by about 150 000 tonnes by 2005.
District District heat is supplied by some 400 district heating companies, and today
Heating accounts for approximately 50% of Denmark’s heat demand, compared to
and CHP 30% in 1980. Most of the companies produce and supply the heat, but some
purchase heat from one of the “central” power plants. The average connection
rate in district heating areas is 82% and is still increasing. The district heating
network supplies heat not only to large consumers, apartment blocks and
institutions but also to a large extent to modern single-family houses. Danish
district heating companies are owned either by the municipalities, particularly
in the major cities, or by local consumer co-operatives or foundations. In 1996
average distribution losses were 20%.
In 1999, almost 80% of all district heat was produced from CHP plants, up
from just under 40% in 1980. In 1999, almost 50% of electricity generation
was from CHP, compared to just under 20% in 1980. Twelve of the 14 largest
power stations in Denmark deliver all or part of their surplus heat to a district
heating network. Nearly all large-scale power plants are located close to major
cities. This and the fact that 80% of the population lives in urban areas
allowed the combined development of district heating and CHP. The
conditions for industrial CHP were less favourable as Danish industry is
dominated by small and medium-sized companies with relatively low energy
demand.
The first steps in the development of CHP were taken in Copenhagen at the
beginning of the 20th century. In 1904 the first CHP plant was commissioned,
supplying heat and electricity to a hospital. By the mid-1930s the Copenhagen
district heating network was well established, even though heating was to a
large extent still provided by coal-fired boilers or small individual coal-fired
burners.
Today, ten major cities have city-wide district heating systems where almost
all of the heat (95 to 98%) is produced in large coal-fired or gas-fired CHP
plants and waste incineration plants, with a number of small oil-fired or gas-
fired heat-only units for peak-load and emergency. Since the early 1980s, no
new power plants have been commissioned unless provided with the ability to
perform CHP and to supply heat to the district heating networks. This was
motivated by environmental concerns and the wish to encourage energy
efficiency. Construction of new electricity generating capacity must be justified
by the need for new heat production capacity.
Small-Scale In addition to the large-scale CHP and district heating units, a large number of
CHP small-scale CHP plants exist. In Denmark, “small-scale” CHP designates CHP
plants outside the centrally supplied areas, i.e. the larger agglomerations. The
largest small-scale CHP plant has an installed electric capacity of 99 MW.
However, most of the plants range between capacities of 0.5 to 10 MW and
supply heat to small communities and institutional buildings. Often the plants
consist of more than one CHP unit. Small-scale CHP plants not connected to
a district heating network rarely exceed an electrical capacity of 1 MW. Small-
scale CHP plants are laid out to cover at least 90% of the local heat demand.
The electricity generated is sold to the public grid. Power utilities are obliged
to purchase the electricity from these plants. The main fuels used in small-
3
On average in 1999 DKK 1 = US$ 0.145 and in 2000, DKK 1 = US$ 0.123.
7
scale CHP are natural gas and waste and, to a lesser extent, biogas and other
biomass.
Small-scale CHP received government support through a 1986 Parliamentary
decision, adopted by the power utilities, to establish 450 MW e of small-scale
CHP using indigenous fuels (natural gas, waste, biogas or biomass). In
connection with the presentation of the Energy 2000 plan in 1990, a more
ambitious programme for small-scale CHP was put forward. To accelerate the
establishment of small-scale CHP, a state subsidy was introduced in 1992 for
power production from waste incineration, natural gas and renewables used in
small CHP plants. The subsidy originally amounted to 10 øre per kWh but has
been reduced to 7 øre per kWh, except for plants smaller than 3 MW.
The development of small-scale CHP peaked in 1994/95. About 80% of the
installed capacity (20ºC) are:
New code Walls Roof Floor Windows Doors
Old code 0.22 0.15 0.15 1.6 1.6
0.3 0.2 0.2 2.4 2.0
These values can only be used if the total window, glass-roof and glass-wall
areas do not exceed 20% of the building’s net floor space. However, it is
possible to compensate large window areas with more insulation in the other
building elements.
Standards and Energy labelling for refrigerators, freezers and their combinations, washing
Labelling for machines and tumble dryers has been introduced following the European
Household Union Directives on this matter. Standards and labelling of lamps came into
Appliances force in January 2001.
Energy The Energy Efficiency Network for Buildings (EENB) was established in 1996.
Efficiency Through formalised co-operation, participants such as private owners of
Network commercial buildings, house building co-operatives, local authorities and
for Buildings building administrators exchanged information and experience on energy
efficiency projects completed in various buildings. The networks are also
used as a forum for developing strategies for energy administration in
buildings. Participants are obliged to submit information on their use of
energy in buildings. This information is fed into a national statistics database
on energy use in buildings. Yearly reports have been available since 1998.
4
In the 2001 in-depth review of the energy policies of Norway, the IEA stated:
The Government of Norway should:
• Undertake public awareness programmes to complement energy taxation.
Electricity In 1995 a pilot project with four energy utilities participating in three regions
Billing was completed which aimed at developing a more simplified and informative
electricity bill for household consumers. The goal was to give customers a
better understanding of both energy efficiency and a liberalised electricity
market. Customers participating in the pilot project receive frequent electricity
bills based on actual electricity consumption. The bills included a graphical,
temperature related figure which enabled the customers to compare their use
of energy over time. Information regarding energy efficiency measures, the
possibility of changing suppliers and information on tariffs was included in the
bill. A similar project carried out by the Nordic Council showed an energy
saving potential of 5-10%.
From 1 June 1999 all utilities are required to send their customers a simplified
electricity bill. Electricity bills are now sent to every customer quarterly, or
even more frequently, and are based on actual consumption instead of an
estimated consumption for each period. The aim of this measure is to increase
customers' awareness of their electricity consumption.
Financial The Norwegian Government Environmental Fund is a loan scheme
Measures administered by the Norwegian Industrial and Regional Development Fund.
through other The scheme was established to provide funding for projects that help to
Institutions reduce emissions of greenhouse gases and other environmentally harmful
gases, and provide funding for energy efficiency investments.
“Øko-bygg” is a development programme that was started in 1998. It provides
information, advice and grants to promote the use of eco-efficient technology,
including more efficient and flexible energy use in the construction industry.
The programme will end in 2002.
The Norwegian State Housing Bank offers various loan and grant schemes for
residential energy efficiency measures. From 2002 the housing bank also
offers NKr 140 000 in extra loans and NKr 10 000 in grants to homebuilders
who invest in water heating systems based on bioenergy, solar or that use
heat pumps.
INDUSTRY
Measures already
existing and/or
being improved
Industrial In 1999, the government tested a new concept to increase energy efficiency in
Energy industry. The main focus has been efficiency in core industrial processes. The
Efficiency programme is designed to detect the energy influence of using different raw
Analysis materials singly or in combination. The philosophy behind the programme is to
Model increase energy efficiency, reduce the cost of raw materials (feedstock),
increase output in production and increase competitiveness in the industry.
Pilot projects have been carried out in companies that produce:
• Non-ECSC ferro-alloys and pulp.
• Paper and paperboard.
These projects have shown that certain materials have a significant impact on
specific energy consumption, stability and output of the process. Average
5
energy reduction of electricity was between 5 and 10%, sometimes with little
or no capital investment. One of the pilot companies could save 50 GWh/year
and thereby save NKr 30 million annually with no investments made. The
programme will be continued, with the power intensive industry as the main
target.
Industrial Energy In 1989 an Industrial Energy Efficiency Network was established. The network
Efficiency currently has a membership of 650 companies from 13 industries. Through
Network their membership in the network, the companies are offered various forms of
assistance. There are two phases: in the first, the company has to establish
an energy monitoring system. In this phase the government supports the
company with training for key personnel and covers part of the consultant
fees. In the second phase, the company undergoes an energy audit.
Benchmarking is also a central network activity.
Company To assist companies that manufacture and deliver energy-efficient products, a
Specific grant is available from the authorities. The programme is focused on market
Introduction activities, with an emphasis on energy efficiency in the building industry.
Dissemination of information on energy-efficient solutions that become
available via various national and international networks is also important.
Voluntary As a component of its climate change action plan, the government hopes to
Agreements develop voluntary agreements with industry for improved energy efficiency
and emissions reductions.
To date, only one agreement has been concluded, with the aluminium industry
in 1997. The industry has agreed to reduce its greenhouse gas emissions by
55% by 2005, compared to its 1990 emissions. In 2000, a reduction in
emissions of 52% per tonne was achieved, exceeding the target in that year of
50%. Voluntary agreements with industry have proven to be difficult to
negotiate, possibly due to the discussion on quotas for domestic emissions
trading system.
In the 2001 in-depth review of the energy policies of Norway, the IEA stated:
The Government of Norway should:
• Consider the continuation of existing programmes directed at improving
energy efficiency in the industry and domestic sectors.
TRANSPORT
Measures already
existing and/or
being improved
Purchase The purchase tax on cars was initially fixed according to the value and weight
Tax of different models. Although no precise estimates of its effects are available,
the weight component may be an incentive to purchase lighter, more energy-
efficient cars. In addition, since 1996 the tax has been differentiated to
replace its value-base element with an energy performance component.
In the 2001 in-depth review of the energy policies of Norway, the IEA stated:
The Government of Norway should:
• Undertake an assessment of the effectiveness of the vehicle taxation
regime to determine if it is contributing to improvement in the vehicle fleet
as a whole; develop ways of improving overall fleet efficiency.
6
Taxation on The government considers cost-efficiency to be essential in regulating the
Fuels and environmental impact of transport. This also applies to energy efficiency.
Registration Economic matters, therefore, have an important role as an instrument in
Tax environmental policies in Norway. The duties on petrol and diesel, as well as
the registration tax on vehicles, are high. External effects at a national level
are an important basis for the setting of vehicle taxes.
Consumer GRIP, a foundation under the Ministry of Environment, gives consumer
Information information on fuel economy and emission from cars, buses and lorries. Work
has started on implementing the EU Directive (1999/94/EC) relating to
availability of consumer information on fuel economy and CO2 emissions in
respect of the marketing of new passenger cars. Norway has also
implemented EURO I and II, which are European Union norms on emissions
from vehicles. EURO III came into force 1 October 2000.
Measures under
Consideration
Road Norway has many toll rings in order to finance road infrastructure. The Ministry
Pricing of Transport and Communications is for the time being undertaking the
necessary steps to ensure a legal basis for the introduction of road pricing.
The purpose of a road pricing system will be to internalise external costs
created by road traffic in order to reduce congestion and improve local
environment. The Ministry also considers parking policy to be an essential
measure for reducing congestion and thereby environmental problems.
CO2 TAX
Measures already The CO2 taxes introduced in 1991 are at present the main instruments aimed
existing and/or at limiting CO2 emissions in Norway. The tax rates are high compared to
being improved similar tax rates that have been introduced or proposed in other countries.
The carbon dioxide tax covers approximately 64% of Norway's carbon dioxide
emissions and 48% of total greenhouse gas emissions. The tax rates vary
according to the different emission sources. In 2002 the tax rates are as
follows: The highest tax rate (NKr 315/tonne CO2) is levied on petrol; the tax
rate on oil and gas production in the North Sea is respectively NKr 277 and
NKr 308/tonne CO2. Reduced taxation ratios on mineral oil are applied to the
pulp and paper industry, the fishmeal industry, domestic shipping of goods
and continental shelf supply fleet. The main emissions that are exempted from
the CO2 tax are those from industrial processes. Taxation on coal and coke for
energy purposes amounts to NKr 0.49 per kg.
To encourage energy recovery and reduce methane emissions from landfills,
a tax on final disposal was introduced in 1999. The tax rate is reduced when
waste is used as a source of energy. The tax rates are: landfills NKr 320 per
tonne, incinerators NKr 80 per tonne plus an additional charge of up to
NKr 240 per tonne depending on the degree of energy recovery.
The Storting has recommended that the government adopt the 1996 Green
Tax Commission's proposal to exempt the buildings of heat pumps, district
heating systems, micro and mini hydropower plants, wind turbines and bio-fuel
plants from the 7% investment tax.
The carbon dioxide tax and other "green" taxes are treated as general
revenue and earmarked for any specific purpose. Revenue from the carbon
dioxide tax was expected to reach NKr 7 000 million in 2001.
7
Statistics Norway has evaluated the effect of the carbon dioxide tax. The
evaluation suggests that a carbon dioxide tax on private transport increasing
fuel price by 6% to 7% will reduce the use of fuel by 2% to 3% each year.
Most of the effect is achieved by reducing the transport volume by 1.5% to
1.9%. Although the analyses indicate that the tax has had an effect, the
calculations are uncertain. The long-run effects on fuel efficiency have not
been studied.
In the 2001 in-depth review of the energy policies of Norway, the IEA stated:
The Government of Norway should:
• Evaluate the efficiency and effectiveness of existing policies and
measures, in particular the carbon dioxide tax.
MONITORING/ Different types of energy efficiency activities are being evaluated
ASSESSMENT consecutively. Different evaluations carried out in 1998 and 1999 have shown
a need for a restructuring of work on energy efficiency and also of that on new
renewables. This need for restructuring is connected to the new quantitative
objectives set by the government and the Parliament.
From January 2002 the new government body Enova is able to choose the
most cost-effective measures to reach different government objectives.
However Enova will not deal with transport issues. The Ministry of Petroleum
and Energy will receive reports indicating the results Enova is achieving
annually.
Further For further information, please contact:
information
Anita Eide
Senior Advisor, Energy and Policy Analysis
Enova SF
Abelsgate 5
N-7030 Trondheim
Tel +47 73 19 04 39
Fax: +47 73 19 04 31
email: anita.eide@enova.no
8
(QHUJ\
IEA (IILFLHQF\
8SGDWH
PORTUGAL Updated January 2003
BACKGROUND The Portuguese Energy Programme adopted by Parliament in July 1994 had
the following goals: improve energy efficiency, diversify energy sources
(mainly the introduction of natural gas) and promote indigenous renewables.
The measures to reach these objectives have been financed mainly through
the SIURE programme (Incentive System for the Rational Use of Energy –
see below).
1
Between 1994 and 1999, total public funding was about Esc 140 billion (ECU
704 million), of which 44% came from EU FEDER funding. Public funding for
the introduction of natural gas accounted for 69% of the total, promotion of
renewable sources accounted for 22.6%, energy savings 7.5% and technical
2
assistance less than 1%. The Portuguese government decided to continue
the programmes, giving more emphasis to energy savings and progressively
reducing funding for the introduction of natural gas which is done within the
scope of the PLANO OPERACIONAL da ECONOMIA (POE) in the SIME and
MAPE schemes that are briefly described below.
The Directorate General for Energy (DGE) within the Ministry of Economy is in
charge of energy issues. Its main responsibilities include:
• Proposing legislation to regulate the energy sector and supervising its
implementation.
• Granting licences and authorisations to energy-based plants and
infrastructure and establishing their technical standards.
• Developing and implementing energy-related programmes (e.g. energy
efficiency programmes).
• Encouraging the dissemination of information on energy policy and energy
statistics.
• Carrying out studies on energy issues for the government.
On 15 January 2001, the Ministry of Economy published a new policy
programme, the Energy Efficiency and Endogenous Energies Programme
called E4 aimed at promoting energy efficiency and the use of endogenous
energy resources. The financing for the implementation of new projects,
10 609 million, is covered by the POE and the Global Incentive Programme
of the Ministry of Economy, aimed at modernising the Portuguese economy.
This programme is set for the period January 2000 to December 2006. It is co-
financed by the European Union to an amount of 290 million.
The Centro para a Conservação de Energia (CCE), a private institute owned
by Portuguese energy companies and public bodies with a staff of about 40,
was restructured in 2000 giving place to the Agência Nacional para a Energia
(ADENE) (Decree-Law 223/2000) that will also integrate the Portuguese
Center for Biomass (CBE). The main tasks of this new body are to prepare
studies on energy efficiency and renewables and on standards for electrical
appliances and to disseminate information. The Agency deals with all
economic agents and energy consumers, acting as the instrument for better
energy consumption management and use of endogenous energy resources.
1
On average in 2000 Portuguese escudos (Esc) 1 000 = US$4.577. and in 2001 US$ 4.466.
2
The technical assistance programme aims mainly at funding administrative costs, e.g. management of the
programmes, preliminary studies, information to the administration, advertising campaigns and assessment.
In the 2000 in-depth review of the energy policies of Portugal, the IEA stated:
The Government of Portugal should:
• Set up new programmes for energy efficiency in the different sectors,
taking into account the results of the assessments of the previous
programmes to focus on the most cost-effective measures. Ensure that
these programmes are effectively funded.
(QHUJ\ Portugal ratified the UN Framework Convention on Climate Change on
DQG WKH 21 December 1993 and submitted its first national report to the UN FCCC
(QYLURQPHQW entitled Portuguese report in accordance with Article 12th of the United
Nations Framework Convention on Climate Change on 25 January 1995.
Portugal’s second national communication entitled Segundo relatório de
Portugal was released in November 1997. In this second report to the FCCC,
CO2 emissions were forecast to increase 69% between 1990 and 2010,
reaching 74.9 Mt in 2010. Energy-related CO2 emissions would increase 68%
to 62.5 Mt.
Portugal undertook a study to improve the estimates of GHG emissions. The
report was published in mid-2000.
At COP-3 (Kyoto, December 1997) the European Union accepted the target of
an 8% reduction in greenhouse gas emissions by 2008-2012. In the
European Environment Council of 17 June 1998, which adopted the EU
3
Burden Sharing Agreement , Portugal was allowed to increase its emissions
by 27% for the 2008-2012 period over the 1990 levels.
On 26 December 2001, Portugal decided to ratify the Kyoto Protocol; this
ratification should be official only when all the European Union Member States
decide to send their instruments of ratification to the Secretary of the United
Nations, taking account of the EU Burden Sharing Agreement.
The government is preparing a National Plan for Climate Change (PNAC). A
working version of the plan was published in March 2002 and the government
expects it to have been finalised during 2002. The working version quantifies
the emissions reduction required to achieve the Kyoto target under the most
probable socio-economic development and aims at opening public discussion
on the measures and their implementation. It also defines some immediate
measures and their potential for reducing emissions and their cost. One of the
conclusions presented in this version is that Portugal will rely heavily on
domestic measures to meet the emissions reduction target. The Plan is
currently under public consultation and it has been criticised for not providing
a detailed analysis of the emissions reduction potential, and the cost, of many
prospective measures. The government plans to introduce sectoral emissions
reduction targets, new measures and monitoring programmes in the final
version of the Plan.
To reduce GHG emissions, Portugal has been relying on energy efficiency
regulations in the industrial and household sectors, voluntary agreements with
some industrial sectors, development of public transport and tax credits on
photo-voltaic equipment.
3
The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
2
In the 2000 in-depth review of the energy policies of Portugal, the IEA stated:
The Government of Portugal should:
• Release, as soon as practicable, its report evaluating GHG emission
trends so that a comprehensive assessment can be made of how much
Portugal must reduce its emissions to meet its climate change
commitments under the Kyoto Protocol..
• Revive its efforts to develop and implement a comprehensive climate
change mitigation plan in order to start getting current GHG levels on track
to meeting Kyoto commitments.
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
7KHUPDO Regulations on the Characteristics of the Thermal Behaviour of Buildings
%HKDYLRXU (RCCTE) were published in Decree-Law number 40/90 of 6 February 1990
and came into force on 1 January 1991. These regulations are not strict in
terms of energy conservation, both because Portugal’s climate gives little
scope for energy savings that are economic in this sector and because the
focus is still on improving comfort in new buildings, with energy efficiency a
secondary rather than primary objective.
This regulation was the first step to improve thermal comfort in buildings,
quantifying the needs of the building in terms of energy and consumption and
taking into account the rational use energy. A revision of this regulation is in
preparation to strengthen the energy parameters.
In the 2000 in-depth review of the energy policies of Portugal, the IEA stated:
The Government of Portugal should:
• Ensure that building codes are periodically revised to take into account
technical improvements. Ensure that these codes are effectively
implemented and that their implementation is effectively monitored at local
level.
$FFOLPDWLVDWLRQ The Regulation on the Energy Systems for Air Conditioning of Buildings
(RSECE) was published in Decree-Law No. 118/98 of 1998. This regulation
establishes the rules to be complied with in calculating the size of energy
systems for air conditioning to achieve higher energy efficiency ratios.
(IILFLHQF\ Efficiency labelling has been in force since 1994, by the Decree-Law No.
6WDQGDUGV DQG 41/94 of 11 February 1994. This Framework Decree-Law encourages
/DEHOOLQJ producers to manufacture and consumers to purchase more energy-efficient
appliances.
Order Nos. 1139/94 of 22 December 1994, 116/96 of 13 April 1996, 279/97 of
28 April 1997 and 117/96 of 15 April 1996 applied to refrigerators, washing
machines, dryers and washer-dryers, respectively. Manufacturers support the
costs of the test procedures and labelling systems.
The EU Directive on energy efficiency standards for refrigerators and freezers
was adopted in 1994.
3
A “Minimum Efficiency for Heating Boilers” has been in force since 1996 and
sets minimum efficiency requirements for hot water boilers.
In the 2000 in-depth review of the energy policies of Portugal, the IEA stated:
The Government of Portugal should:
• Ensure maximum compliance with EU directives on labelling. Ensure that
the Regulation on the Energy Systems for Air Conditioning of Buildings is
periodically revised to adapt to new technologies. Contribute to the
elaboration of EU regulations on labelling and efficiency standards for
cooling appliances.
%RLOHU The 1963 Decree-Law No. 45115 requires all steam boiler plants with a total
2
6XUYH\ heating surface greater than 100 m to have periodic energy efficiency tests to
adjust air and fuel to give optimum combustion performance and to have
energy-efficient boiler plants. The Decree-Law was revised in 1990 to improve
the measurement of stack gases of the boiler plants according to the
parameters of temperature, pressure, humidity, flow as well as their
composition (CO, CO2, O2, N2) and the control of the pollution parameters. At
this stage of implementation, the results of these tests are not available.
,QIRUPDWLRQ In 1998 DGE promoted several energy efficiency activities; the Centro para a
Conservao de Energia was in charge of some rational use of energy projects,
for example: Energy Auditing in the Hotel Sector, Energy Auditing in Textiles,
Ceramics, Dairies and Wood and Cork Sector and two training courses on the
rational use of energy in industry.
Based on these audits, new values for the target specific consumption for
ceramics and textiles were published. Work is going on to reach new values
for the glass sector.
0HDVXUHV XQGHU
FRQVLGHUDWLRQ
(QHUJ\ Portugal is preparing specific legislation for a voluntary classification of new
&HUWLILFDWLRQ buildings according to their energy performance. A study began in 1999 to
define the type of certification to be attributed to buildings and to establish
standards for tests and methodologies to assess energy efficiency in
buildings.
PUBLIC SECTOR In designing energy efficiency policies in 1994, the government decided to put
greater emphasis on municipalities. Through the Directorate General for
Energy, it designed an Action Plan (Plano de Acção nos Municipios (PAM)) to
foster the creation of local energy entities and the implementation of energy
policy measures at the local level, using financial support available under the
Energy Programme.
This action is going on under the new incentive programme. Projects aimed at
reducing reduce the consumption by public lighting and water supply systems
are being developed.
INDUSTRY
Measures already
existing and/or
being improved
5*&( Management Regulations for Energy Consumption (RGCE) were established
under Decree-Law No. 58/82 of 26 February 1982 and regulated under the
4
Ministerial Order No. 359/82 of 7 April 1982. The primary objective of these
regulations is to instil in energy-intensive companies the concept of energy as
a cost factor. The regulations establish goals for companies to reduce
progressively their specific energy consumption. In addition, the regulations
require companies to audit their energy use twice a decade, to prepare and
carry out annual plans for rationalising their energy consumption and to
achieve the energy savings. All energy consuming facilities meeting one or
more of the following conditions are covered:
• Energy consumption of more than 1 000 toe in the last 12 months.
• Equipment with total nominal power rating of more than 0.3 toe per hour.
• Any one item of equipment with nominal energy consumption of more than
0.3 toe per hour.
The regulation obliges companies to control the results of the energy savings
measures and assures the successful execution of the rationalisation plans.
The objective was to reduce the specific consumption of energy by at least 5%
over the five-year period.
By the end of 2000, 549 installations (whose annual consumption represented
about 4 million tep) had performed energy audits and drawn up plans for
energy efficiency which were then submitted to DGE. The consumption of
these installations represents more than 50% of the total energy consumption
in the industrial sector.
The main industrial sub-sectors covered by the RGCE regulation are Food
and Drinks, Textiles, Wood and Cork, Pulp and Paper, Chemistry and
Cement, Ceramics and Glass.
The rational use of energy measures carried out were mainly energy
management systems, co-generation projects, thermal insulation, heat
recovery systems and installation of more efficient equipment.
Information for small and medium-sized enterprises is mainly provided through
seminars, conferences and a Web site.
The Directorate General for Energy has been monitoring the implementation
of RGCE in industrial installations where energy consumption is higher than
1 000 toe per year; the monitoring in done on the basis of a five-year plan.
As the transport sector experienced strong growth in energy consumption, it
was decided in 1988 that RGCE should be extended to transport. Although
the response of the sector to this type of measure has been reported as very
weak.
In the 2000 in-depth review of the energy policies of Portugal, the IEA stated:
The Government of Portugal should:
• Carefully assess the results of the energy audits in industry to improve the
effectiveness of energy efficiency measures in this sector.
• Increase information to energy consumers on energy efficiency measures.
Focus on measures to improve energy efficiency in small industries, such
as providing information and expertise.
6,85( SIURE (Incentive System for the Rational Use of Energy) was the national
assistance system for energy projects. Its basic objective was to encourage
energy efficiency and promote the development of new sources or forms of
energy in all economic sectors (except the domestic sector), by providing
grants to companies carrying out related projects.
5
Decree-Law No. 188/88 of 27 May 1988 updated by Decree-Law No. 35/95
established the incentive system.
SIURE provided grants for energy auditing in the tertiary and transportation
sectors, energy research and feasibility studies, investments in energy
efficiency, co-generation projects, diversification of primary energy sources
and energy demonstration projects. SIURE helped to reduce high energy
dependence on oil products and improve energy efficiency. It made possible
6
245 ktoe energy savings per Esc 54x10 investment over the period 1994/98.
For this period the amount of incentives awarded to the projects was around
6
Esc 10x10 and includes grants and loans at zero interest rate.
The grants and loans for the energy efficiency projects in the industrial and
tertiary sectors represented about 82% of the total, with an energy savings
potential of 227 ktoe per year, for about Esc 49 million of investment.
The energy diversification projects and energy efficiency in transport
represented about Esc 5.2 million, with 18.3 ktoe of energy savings and
Esc 1.8 million granted. The financial support comes from the European
Union and the Portuguese State Budget.
SIURE was evaluated every year by the Energy Programme Manager. The
system ended in 2000 and has been replaced by MAPE.
3(',3 ,, PEDIP II (Strategic Programme for the Development of Portuguese Industry)
ran from 1994 to the end of 1999 and succeeded the previous PEDIP (1988 to
1992). The latter was initiated in the context of Portugal’s accession to the
European Union and received EU funding to modernise Portugal’s industry
and improve its environmental performance.
PEDIP was complemented by activities addressed to the targeted sectors:
• Energy audits and studies on more efficient use of energy and advertising
campaigns.
• Measures to demonstrate the technical viability of the implementation of
the monitoring and targeting system of PEDIP.
• Energy managers training to improve the skills in energy management of
human resources.
The PEDIP II programme ended in 2000 and has been replaced by SIME.
6,1'(3(',3 SINDEPEDIP support schemes consisted of grants or interest-free loans in
amounts and percentages depending on the type of operation and the volume
of investments. These schemes were:
• Support to studies and audits to help the management strategy of
industrial companies in the implementation of actions particularly in the
areas of environmental protection and energy management.
• Support to integrated investment projects in the various functional
company areas which may include environmental investments,
encouraging the use of cleaner production technologies as well as
investments in the area of energy rationalisation.
• Support for the promotion of dynamic competitiveness factors on the basis
of investment projects including actions for the protection of the
environment and improved working conditions, by providing help for the
purchase of equipment and the implementation of suitable technologies.
• Support for business demonstration activities through involvement in
areas having an effect on the competitiveness of companies, such as the
rational use of energy and protection of the environment.
6
To be eligible for SINDEPEDIP loans and grants, enterprises needed to
4
comply with Decree Law 58/82 . Enterprises that received the funds had to
report every six months on progress made, particularly on the evolution of
specific energy consumption.
SINDEPEDIP ended in 2000 and has been replaced by SIME.
0$3( MAPE, which is the successor to SIURE, is the national assistance system for
energy projects. Its basic objective is to encourage energy efficiency and
promote the development of new sources or forms of energy in all economic
sectors (except the domestic sector), by providing grants to companies
carrying out related projects.
MAPE provides grants for investments in energy efficiency, co-generation
projects, diversification of primary energy sources including the conversion to
natural gas and renewable energy. MAPE helps to reduce high energy
dependence on oil products and improve energy efficiency. The support
includes grants and loans at zero interest rate.
6,0( SIME support schemes, which replace PEDIP II and SINDEPEDIP, consist of
grants or interest-free loans in amounts and percentages depending on the
types of operation and the volume of investments.
The operations that can be funded are integrated operations aiming to
improve the competitivity of the companies. Those operations can include
investments in support to integrated investment projects in the various
functional company areas, which may include environmental investments,
encouraging the use of cleaner production technologies as well as
investments in the area of energy rationalisation.
&RPELQHG Decree Law 189/88 of 1988 has provided for must-take obligations by the grid
+HDW DQG company REN (Rede Electrica Nacional) and favourable buy back tariffs set
3RZHU according to the price paid by end-use customers. Decree 186/95 of 1995 set
minimum efficiency values and the minimum heat utilisation necessary for co-
generators to qualify. The buy-back tariff for co-generators is as follows:
• The buy-back tariff for co-generators below 10 MW is calculated according
to the price paid by end-use customers in the medium and high voltage
tariff range. A minimum of 55% efficiency is required to qualify.
• For co-generators above 10 MW, the buy-back tariff is based on avoided
costs calculated as the cost of building a new CCGT plant. Payments
increase when the heat rate value and the availability of the plant
increase.
• Co-generators pay for connection to the grid.
• Decree 538 of 1999 allows sales to affiliate companies as well as to
companies buying heat. This regulation will be valid for ten years.
As a result of these measures and in particular of the buy-back tariff, co-
generation capacity increased from about 600 MWe in 1990 to about
900 MWe in 1998. Generation amounted to about 5 TWh in 1998, including
3.1 TWh in auto-consumption.
The standards defining the conditions for the exploitation of the co-generation
plants and respective tariffs have recently been revised.
4
Some other PEDIP programmes had environmental aspects. In these cases compliance with these regulations
was also required.
7
TRANSPORT
Measures already
existing and/or
being improved
RGCT The RGCT is being implemented in the public and private transport
enterprises where energy consumption is higher than 500 toe per year. The
RGCT requires these companies to carry out energy auditing and to publish a
plan for the rationalisation of their energy use every three years. The
Directorate General for Energy (DGE) monitors the audit results and the
plans when the companies apply for financial support.
9HKLFOH Control of vehicle energy efficiency using new technologies and mandatory
&RQWURO periodic inspections aimed at reducing the environmental impact of the
transport sector have been implemented.
5DLOZD\V The government announced in 1998 a three-year investment plan costing
Esc 600 million aimed at the electrification of all international railway lines and
the development of a new high-speed link between Lisbon and Porto.
The Directorate for Energy monitors the auditing and this triennial
rationalisation plan.
3XEOLF 7UDQVSRUW The use of natural gas in vehicles began in the public transport systems of
Braga and Porto in 2000 and in Lisbon in 2001. The extra cost involved in
purchasing buses that use natural gas is partially financed through the OPE
Programme.
In the 2000 in-depth review of the energy policies of Portugal, the IEA stated:
The Government of Portugal should:
• Continue to increase investment in railways and to develop modern public
transport in the major towns.
8QGHUJURXQG In the Lisbon metropolitan area, which accounts for roughly 20% of the
7UDQVSRUW Portuguese population, there has been a surge in public investment in mass
transport. The underground system doubled its length in 1999, with improved
links to the railway and bus network. In Porto, a metropolitan railway system
is scheduled to start operating by 2001.
7UDIILF Until 1998, SIURE funds allocated for energy diversification and energy
0DQDJHPHQW savings in transport amounted to Esc 5.2 million. Funds were mostly granted
for information systems to improve the mobility of captive fleets.
The use of automation, the creation of lanes and corridors for public transport,
reversible direction zones, etc., aim to facilitate traffic flows particularly in
urban areas.
MONITORING/ When funds are granted by the Directorate General for Energy (DGE), energy
ASSESSMENT efficiency programmes are evaluated during the programme and afterwards
by DGE and the National Institute for Engineering and Industrial Technology
(INETI) on the basis of energy and CO2 emissions saved.
8
For information For further information, please contact:
Mr. José Antonio Penaforte Costa
Direccao-Geral de Energia
Direction of Services for Rational Utilisation of Energy
Av. 5 de Outubro, 87, P – 1000 Lisboa
tel. +351 (21) 792 2700
fax +351 (21) 793 95 40
email Penaforte.Costa@dge.pt
9
Energy
IEA Efficiency
Update
SPAIN Updated July 2003
BACKGROUND
According to Royal Decree 557/2000, 28 April 2000, energy policy is the
responsibility of the Ministry for the Economy, and implemented through the
office of the Secretary of State for the Economy, Energy and Small
Businesses, which, based on RD 689/2000, 12 May 2000, in turn acts through
the Directorate General for Energy Policy and Mines.
From 26 July 2002 and by Royal Decree 777/2002, the Institute for
Diversification and Saving of Energy (Instituto para la Diversificación y Ahorro
de la Energía, IDAE) reports to the Ministry for the Economy through the State
Secretary of Energy, Industry Development and of Small and Medium
Enterprises.
IDAE and the Directorate General for Energy Policy and Mines work in co-
ordination on the implementation of policies and actions to promote the
rational use of energy and diversification of energy sources.
As a national agency, IDAE seeks to strengthen links with the other agencies
with competencies in industry and energy in order to integrate and co-ordinate
actions at regional and local level. In Spain there are currently 20 regional and
local agencies whose aim is to promote actions in the fields of energy
efficiency and diversification of sources.
Energy After the Kyoto commitment of December 1997, the European Union Council
1
and the of Ministers agreed on 17 June 1998 on the Burden-Sharing Agreement
Environment towards achieving the 8% European Union commitment to reduce emissions.
In this context, Spain is obliged to ensure that its CHG emissions do not
exceed the 1990 level (306 Mt of CO2 equivalent) by more than 15% for the
2008-2012 period.
National Royal Decree 177/1998 of 16 February 1998 founded the National Climate
Climate Council (CNC) an associated body of the Government Department, belonging
Council to the Ministry of the Environment. It would establish a set of national plans
and programmes to adopt the necessary measures at a sector level to
confront climate change and at the same time fulfil the international
commitments signed by the government, basically the Kyoto Protocol and the
United Nations Framework Convention on Climate Change.
The different functions of the National Climate Council include:
• The elaboration and presentation for approval by Parliament of the Kyoto
Protocol National Strategy and subsequent modifications.
• Follow-up of plans and programmes included in the Strategy.
• Technical and scientific advice for Spanish delegations in inter-
government organisms.
• Co-ordination of the writing of national reports on climate change.
• Proposal of necessary measures to the government to fulfil undertakings
made in international agreements and protocols.
Spanish Climate Royal Decree 376/2001 of April 2001 established the Spanish Climate
Change Change Prevention Office (Oficina Española del Cambio Climático, CCPO). It
Prevention Office will be under the Ministry of the Environment, the General Directorate for
Environment Quality and Assessment. The composition and structure of the
new organisation were defined by Ministerial Order of July 2001.
The tasks of CCPO are, inter alia, to act as secretariat for the National Climate
1. The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
1
Council, to follow-up of UNCC and promote Spanish policies and measures to
accomplish the commitment under the UNCCC and the Kyoto Protocol; and to
collaborate with the autonomous regions in giving advice.
The central government formulates the policies for mitigating climate change.
However, the regional governments (see below) are allowed to adapt policies
to their specific geographic area as long as they do not distort the intent of the
national policies. The regional governments also play an important role in the
implementation of policies in their region, such as licensing installations for
producing energy from renewables and CHP, and promoting energy efficiency
and transport planning.
In the 2000/2001 in-depth review of the energy policies of Spain, the IEA
stated:
The Government of Spain should:
• Encourage autonomous regions to formulate their policies towards CO2
emission reduction at local and regional levels in line with the national
policies.
Spain's GHG emissions have grown with its economy. According to IEA
statistics, Spain's energy related CO2 emissions have grown by 28.6% from
1990 to 1999. Meeting the Kyoto target requires the total GHG emissions to
be reduced by 17 Mt from the 1998 level.
The National Climate Council is currently preparing the Kyoto Protocol National
Strategy. However, no clear timeframe for completion of the plan has been set.
The question of target-setting, by sector, by region or a possible combination, is
still under consideration. However, the reports Policies and measures for the
Fight Against Climate Change: A first Advance and the Plan for the Promotion of
Renewable Energy in Spain have been developed.
Plan for the The Plan for the Promotion of Renewable Energy in Spain (Plan de Fomento
Promotion of de las Energías Renovables en Espana, PFER), which was prepared by IDAE
Renewable (see below) on the basis of Law 54/1997 on the Electricity Sector (Ley
Energy 54/1997, del Sector Eléctrico) sets a target of 12% of Spain’s energy demand
being met from renewable sources by 2010, in line with the EU target defined
in the European Community's White Paper for Renewable Energy Sources,
The Plan was approved by the Council of Ministers on 28 December 1999.
In terms of primary energy, the Plan sets an output target of an additional
9 525 ktoe over its lifetime, of which 1 709 are to be from the utilisation of
renewable sources of energy for thermal uses. The estimated CO2 emissions
avoided by the Plan due to this increase in renewable sources is between
8.6% and 18.3% -- compared with CCNG or coal for electricity generation -- of
the total CO2 emissions in 1990.
Energy The Delegated Commission of the Spanish Government for Economical
Efficiency Affairs has approved the elaboration of the Energy Efficiency Strategy 2003-
Strategy 2012, whose basic objective will be to improve the energy intensity ratio.
2003-2012
To carry out the Energy Efficiency Strategy, six inter-ministerial working
groups were created, corresponding to the areas of energy transformation,
transport, building, tertiary and residential, industry and public services. In
addition to these sectoral groups, another group on institutional co-ordination
was created that will describe the horizontal objectives, the relations with the
autonomous communities (Spanish regions) and the local institutions, as well
as the development of the objectives with institutional character. IDAE
guarantees the co-ordination of all these groups.
2
In the State of the Nation Debate in July 2002 a Resolution specifying the
opportunity of elaborating a proposal about the same subject, with a
temporary horizon of a decade, was approved. The appropriate answer to
these requests recognises the necessity of having an effective strategy of
action programmes with the objective of promoting efficiency and saving
energy; it must include in its elaboration and performance the different
administrations (central, regional and local) and the sector actors. A
programme on monitoring and control will be designed to analyse the
weaknesses of the programmes and correct them accordingly.
In the 2000/2001 in-depth review of the energy policies of Spain, the IEA
stated:
The Government of Spain should:
• Speed up the development of the national Kyoto implementation plan; the
plan should identify priority measures based on their potential contribution
towards meeting the target in cost-effective ways
• Monitor emission reduction policies closely.
• Encourage autonomous regions to formulate their policies for CO2
emissions reductions in line with national policies.
Institutional The Spanish State comprises 17 autonomous regions, each with a local
Framework parliament. The State has general jurisdiction over energy, while the regions
have jurisdiction over issues exclusively within their territories.
The task of promoting energy efficiency and the rational use of energy in
Spain, together with the diversification of energy sources and promotion of
renewable energy, is the responsibility of IDAE, in compliance with the
functions enumerated in its articles of association (RD 802/86; RD 252/97 and
RD 2100/98).
In accordance with RD 696/2000, 12 May 2000, IDAE reports to the Ministry
for Science and Technology through the office of the Secretary of State for
Scientific and Technological Policy.
Three bodies are in charge of four different public financing sources for the
energy saving programmes:
• The central government gives direct subsidies for innovative and
demonstration projects through the energy branch of the Profit
Programme.
• Most of the autonomous regions also provide direct subsidies for projects
through specific programmes.
• IDAE provides loans for projects and recovers its funding. IDAE is also in
charge of managing the European Commission’s programmes in Spain
such as SAVE (for energy efficiency) and ENERGY–FP (to promote
innovative energy technologies).
In the 2000/2001 in-depth review of the energy policies of Spain, the IEA
stated:
The Government of Spain should:
• Enhance co-ordination of energy-related policies among different
ministries and regional authorities in order to improve the coherence of
energy policies. Consistency should be sought in the measures taken by
the autonomous regions.
3
IDAE IDAE is a state agency appointed by and reporting to the Ministry of Science
and Technology. It carries out the functions entrusted to it through diffusion
actions, technical advice, and the implementation of innovative projects:
• It puts forward planning proposals and presents studies which serve as
the basis for policies promoting energy efficiency and renewable energy.
• It manages and monitors subsidies and incentives for energy
conservation, saving, diversification and development, such as
encouraging the use of renewable energy, with funds both from the
general state budgets and European Community sources (global ERDF-
IDAE subsidy, cohesion funds, etc.). IDAE also supports the autonomous
regions in the management of territorial subsidies.
• In order to co-ordinate IDAE policies, the government and the regions
have set common objectives; to this end, IDAE has created the
Consultative Committee for Efficiency and Energy Saving.
• IDAE advises enterprises, informs consumers and organises professional
training and conferences.
• It provides financial and technical assistance for the installation of efficient
energy equipment and recovers its expenditure through a commission
collected on the energy savings realised (third-party financing). IDAE also
provides capital as a shareholder in companies and enters into
collaboration agreements to promote the development of new
technologies.
In the 2000/2001 in-depth review of the energy policies of Spain, the IEA
stated:
The Government of Spain should:
• Establish a new, coherent and comprehensive energy efficiency
programme to help slow growth in energy demand in all sectors; ensure
that the measures are cost-effective and consistent with their objectives,
and that the programme sets priorities, on both the supply and demand
sides.
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Thermal Today's standards for energy savings in buildings were established by Royal
Insulation Decree 2429 of 1979, which sets mandatory minimum requirements (NBE-CT-
of Buildings 79) for thermal insulation. New more strict mandatory standards, in
compliance with the “SAVE Directive” will be introduced in 2002. The
autonomous regions will be responsible for the enforcement of these
standards. They will be based on an evaluation of the building project at the
planning phase and on random check-ups of new buildings.
Currently, IDAE is working on the development of instruments permitting
Spain’s adaptation to the so-called "Save Directive" of the EU (93/76/EEC)
regarding the Certification and Labelling of Buildings. Once the details of the
certificate are set by IDAE and a new law to make the certificate mandatory is
passed, the Directive will be enforced by the autonomous regions. The
certificate will be issued for the use of passive solar energy, the correct use of
thermal insulation materials, the use of low consumption electric lamps, the
evaluation of CO2 emissions and the assessment of building materials
according to regions. IDAE has developed two computer tools to support the
energy certification process, namely Energy Rating of Homes (Calificación
4
Energética de Viviendas, CEV) and Energy Rating of Buildings (Calificación
Energética de Edificios, CALENER).
In the 2000/2001 review of the energy policies of Spain, the IEA stated:
The Government of Spain should:
• Regularly verify compliance with building codes, in both new and
retrofitted buildings.
Energy The transfer to Spanish legislation of the different European Union Directives
Efficiency referring to energy efficiency labelling began with Royal Decree 124/1994 of
Labelling 28 January 1994, transferring European Union Directive 92/75/EC of
22 September 1992 (and the latter amendments) on energy efficiency
labelling on domestic electrical appliances.
Subsequently, a series of European Union Directives for specific domestic
electrical appliances has been transferred, in particular:
• Royal Decree 1326/1995 of 28 July, transferred from European Union
Directive 94/2/EC on the energy labelling of refrigerators and freezers.
• Royal Decree 607/1996 of 12 April, transferred from European Union
Directive 95/12/EC on the energy labelling of washing machines.
• Royal Decree 574/1996 of 28 March, transferred from European Union
Directive 96/60/EC on the energy labelling of tumble dryers.
• Royal Decree 864/1998 of 8 May transferred from European Union
Directive 97/17/EC on the energy labelling of dishwashers.
• Royal Decree 700/1998 of 24 April, transferred from European Union
Directive 93/32/EC on the energy labelling of washing machine/tumble
dryers.
• Royal Decree 284/1999 of 22 February, transferred from European Union
Directive 98/11/EC on the energy labelling of domestic lamps.
Public Under the Plan for Public Housing (Plan Vivienda de Protección Oficial 1998-
Housing 2001) potential beneficiaries of “qualified” finance include pilot schemes to
promote sustainable housing (i.e. housing compatible with both economic
requirements and the need to preserve the environment) by applying building
techniques that reduce the use of materials (primarily those whose use or
manufacture causes pollution), give greater energy savings, and reduce water
usage, including the design of homes that are suited to the bio-climatic
conditions of the area in which they are located.
Qualified financing is also available for refurbishment work meeting certain
minimum requirements regarding installations for water, electricity and, where
applicable, gas, HVAC, natural illumination and ventilation, thermal insulation,
soundproofing, bathroom and kitchen installations and other general facilities.
Additionally, the execution of work to enable energy savings to be realised in
the home is also eligible for finance under the Plan for Public Housing.
Other Based on Royal Decree 1751/1998 of 31 July 1998 referring to the Regulation
Measures of Thermal Installations in Buildings (RITE), the guidelines of the SAVE
Directive referring to the Valuing of Energy Consumption for Heating, Air
Conditioning and Hot Water and of Periodic Boiler Inspections, have been
incorporated into Spanish legislation.
The approval in September 2000 of RD 1663/2000 -- implementing the Law
on the Electricity Sector -- enabled the development of solar photovoltaic
energy in the residential sector. This Royal Decree laid down the
administrative and technical conditions for connecting solar-photovoltaic
5
installations with a nominal power of less than 100 kVA to the low-tension grid.
The regulations applicable to the procedure whereby owners of installations
apply for the connection point, and the technical conditions for connection,
avoid possible discrimination by electricity distribution companies against
access by small producers of electricity from renewable sources.
Information/
Motivation
Travel Under the name of “Travel throughout the Energies” this educational exhibition
throughout with a wide-ranging interactive content, graphic support, stage setting, as well
the Energies as a virtual host who answers to all the questions put by visitors in real time,
has been presented by the Institute for the Diversification and Saving of
Energy (IDAE).
The objective of this exhibition is to present the multiple aspects relating to
energy as the main element of development in the world and as an essential
element in our daily life, analysing its uses and consequences, reflecting on its
value and the necessity of adopting responsible consumption habits. In short,
the idea to be conveyed is that every citizen can contribute to the rational use
of energy and with lesser effect on the environment.
This show started in October 2002 in Santander and will be presented in 13
Spanish regions.
In Salamanca the inauguration of the exhibition was celebrated at the same
time as the 2002 Award Ceremony of the European Commission’s Renewable
Campaign in December 2002. In Madrid it was inaugurated on 5 February
2003.
PUBLIC SECTOR
Measures already
Existing and/or
being improved
Voluntary The main agreements signed by IDAE during 2001 and up to February 2002
Agreements are as follows:
• Framework co-operation agreement with RENFE (Spanish Railways), to
implement energy optimisation measures and also to use renewable
sources of energy in buildings, installations and on land belonging to
RENFE.
• Framework co-operation agreement with the Ministry of Education and
Sports for technical assistance in the call for tender for the supply of
electricity to various units of the Ministry considered as qualified
consumers.
• Framework co-operation agreement with the Aerospace Technology
Institute (Instituto de Técnica Aeroespacial) for the joint publication and
distribution of a publication on solar-thermal collectors in Spain (Guía de
Colectores Solares Térmicos en España) and to promote low-temperature
solar-thermal energy.
• Co-operation agreement with the Ministry of the Presidency for the use of
an electric vehicle, charging station and photovoltaic installation located
on the roof of a car park, generating electricity with which to recharge the
vehicle’s batteries.
• Framework co-operation agreement with Barcelona Council for the
implementation of the Programa Barcelona 2004 and the implementation
of the Barcelona Council Municipal Energy Plan.
• Framework co-operation agreement with Palma de Mallorca Council for
6
the joint development of a Municipal Energy Action Plan.
• Framework co-operation agreement with Majadahonda (Madrid) Council
for the development of a Municipal Energy Action Plan.
• Framework co-operation agreement with the Spanish Federation of
Municipalities and Provinces (Federación Española de Municipios y
Provincias, FEMP) for the promotion and dissemination of energy-efficient
technologies and renewable energy sources (RES) among Spanish
municipalities.
• Specific agreement with Saragossa (Zaragoza) Council and Saragossa
University for conducting feasibility studies regarding the application of
renewable energy sources (RES) and energy saving criteria in the
Valdespartera housing development.
• Co-operation agreement for the promotion of energy efficiency and
renewable sources of energy (RES) in Soto del Real.
• Territorial agreement with the Solar Energy Studies Centre (Centro de
Estudios de la Energía Solar, CENSOLAR) for the publication, distribution
and publicising of the IDAE’s technical specifications for solar thermal
systems and both stand-alone and grid-connected photovoltaic systems.
INDUSTRY
Measures already
existing and/or
being improved
Voluntary From 1994 to date, IDAE has signed voluntary agreements to improve energy
Agreements efficiency in nine industrial sectors, which form part of ten industrial
associations. These represent 56% of the total consumption in Spain's
industrial sector. Sectors that have signed voluntary agreements are pulp and
paper, structural ceramics, hollow glass, tanning, cement, food, chemicals,
automobile accessories and textiles.
The duration of these agreements varies from one to several years,
depending on the sector concerned.
These voluntary agreements result in activities and projects aimed at energy
saving, installation of cogeneration systems and replacement of other fuels for
natural gas and biomass. In energy terms, actions undertaken to date
following such agreements represent a total energy saving of 641 ktep
(equivalent to 4.5% of industrial consumption), replacement by natural gas of
341 ktep, installed power in cogeneration systems of 285 MW and biomass
replacement of 38 ktep.
Information/ Since 1998, dissemination of information and technical assistance to facilitate
Motivation access to the different support programmes in the industrial sector have been
supported by a new IDAE-FEDER Programme For Small and Medium-Sized
Businesses. It is a strategic move to promote the realisation of energy saving
and renewable energy projects in small and medium-sized businesses
through management and financing of turnkey projects in Objective 1 zones.
Total resources for the programme up to 2001 were € 67.9 millions.
To complement this programme, IDAE organises courses and seminars for
specific sectors. In the past two years, these have included the following
courses:
• Day congress on cogeneration with gas.
• Technological meeting on liquid ice.
• Energy efficiency seminar in the beer and malt sector.
• Technological meeting on heat pumps.
• Day congress on the use of industrial waste as alternative fuel in the
7
cement industry.
• Energy efficiency day congress for the agro-food industry.
During the implementation of the IDAE-ERDF programme a total of 121
applications for potential projects were received and processed, leading to the
definitive implementation of 50 installations, with a total value of € 37.7 million.
IDAE provided 49.2% of the finance for these projects and 50.8% was
provided by the European Union’s ERDF funds, in accordance with the co-
financing conditions laid down in the ERDF-IDAE global subsidy. In terms of
the energy technologies involved in the facilities installed, the investments
were distributed as follows:
• Final energy saving and substitution by natural gas: 39%.
• CHP: 25%.
• Mini-hydropower: 1.5%.
• Wind power: 24.2%.
• Biomass: 7.4%.
• Solar power: 2.9%.
Third-Party To support energy conservation in industry, and in addition to the IDAE-
Financing FEDER Programme, IDAE operates mainly as a third-party financier providing
finance and technical assistance for the installation of energy efficient
equipment and recovering its expenditure over three to seven years through
the energy savings realised.
The financing activity of IDAE during the year 2001 was associated with the
development of 33 different projects, representing a total investment of € 25.4
million, with the following share among the main technology areas:
• Final energy saving and substitution by natural gas: 20%.
• Cogeneration: 6%.
• Renewable: 74%.
Cogeneration Although the total installed cogeneration capacity was only 369 MWe at the
end of 1990, it was 5 520 MWe at the end of 2001 generating about 11% of
electricity. About 4 540 MW of new capacity was installed in 1991-2000,
which is two to three times the initial target. Co-generation capacity financed
through IDAE's third-party financing was 300 MWe, or 6.7% of the total
installed in 1991-2000. In addition, support from IDAE, the so-called “special
system”, has provided premiums to co-generators. However, high natural gas
prices in 2000 and 2001 discouraged installation of new co-generation plants.
According to the Plan for the Promotion of Renewable Energy in Spain
mentioned above, co-generation has a potential to reach 17% of the electricity
demand in 2011: that means a total installed capacity of 7 100 MW in 2011.
Almost all co-generation facilities are run by auto-producers, typically
industries. Therefore, the size of the installations is generally small; 16% of
the plants have capacity under 1 MWe, 53% 1-5 MWe and 17% 5-10 MWe.
The typical industries to invest in CHP production are ceramics and tiles, food
processing, textile, chemical and pulp and paper industries. No large-scale
public co-generation plants have been built yet.
The co-generation plants are eligible for premiums if they qualify under the
special generation system. Conditions are put on the electric efficiency but not
on the fuel efficiency of the CHP plants. The requirements on electric
efficiency depend on the size of the installation, the ratio of own energy
consumption to the electricity output to the network, fuel and technology used.
The premium also depends on the installed capacity. In 2001, the premium
paid to small co-generators (<10 MWe) was 24 euro cents per MWh for a
maximum of 70% of their total annual production. To larger co-generators
8
(between 10 and 25 MWe) it was on average 18 euro cents per MWh for
maximum of 50% of their total annual production. The premium system will be
revised in 2002. The co-generators have two possibilities to sell the surplus
electricity, either through the pool or in direct contracts with the retailing or
distribution companies.
IDAE has closely monitored the progress of the CHP market and identified
some constraints to the competitiveness of co-generation. First, it considers
the fuel prices for co-generators, essentially the price on natural gas, to be too
high compared to the price of fuels used in conventional power plants.
Second, the efficiency requirements for co-generation should be stricter than
they are today. Third, the buy-back tariff should take into account the
environmental externalities and transmission network costs that are avoided in
co-generation: electricity generated by co-generators is usually consumed
close to the production site and so does not burden the transmission system.
In the 2000/2001 in-depth review of the energy policies of Spain, the IEA
stated:
The Government of Spain should:
• Review subsidies for co-generation with a view to phasing them out fully.
TRANSPORT
Measures already
existing and/or
being improved
Replacement For some years the government has maintained its PREVER Programme
of old cars (formerly RENOVE) through the Ministry of Science and Technology. The
programme's aim is to encourage the replacement of old cars to achieve
environmental improvements and better road safety. In accordance with
Royal Decree Law 6/97 of 9 April 1997, the programme applies to automobiles
over ten years of age and light industrial vehicles over seven years. It
reduces the car registration tax by up to € 721 when scrapping of the old
vehicle (priority is given to leaded gasoline vehicles) is guaranteed.
Public Some examples of urban traffic management measures have been included in
Transport the traffic movement city plans of Granada, Vitoria, San Sebastian, Oviedo
and Barcelona. Madrid, Salamanca and Bilbao, for example, already have
buses fuelled by natural gas in their city transport fleets. In other cities such
as Valladolid and Bilbao, similar plans are being studied.
In 2001 IDAE promoted the following projects in this sector:
• La Ciudad, sin mi coche (The City, without my car): the organisers of this
event in Spain were IDAE and the Ministry of the Environment. The most
significant results, extrapolating from those of the 16 cities that took part,
were an 18% reduction in traffic; an 18.7% increase in passengers using
public transport; and a 4..3 million litres reduction in fuel consumption.
• Mejor sin coche (Better without a car): rational use of private cars and
improvement in urban mobility in the city of Gijón (Asturias). Awareness
raising project in which members of the public who took part obtained a
series of personal advantages, such as discounts for public transport,
sports centres and theatres, as well as taxis and shops taking part in the
scheme.
• Smile project: its aim was to gather information on best practice in urban
mobility so as to offer it to the public in the form of publications,
presentations and international conferences.
9
• Intatme project: IDAE participated in this project led by the Madrid
Transport Consortium (Consorcio de Transporte de Madrid) with the
principal objective of studying new forms of mobility using collective
means of transport.
In the 2000/2001 in-depth review of the energy policies of Spain, the IEA
stated:
The Government of Spain should:
• Promote the use of alternative transport fuels for energy efficiency and
environmental benefits.
Fiscal Reduced VAT on tickets for public transport can promote its use. Some public
Incentives transport, namely all rail and bus transport and travel between the mainland
and the Balearic Islands by air and sea, is subject to a reduced VAT rate of
7%. The full 16% VAT rate applies to all other domestic passenger transport
by air and sea. The annual vehicle taxes, levied by the municipalities, were
originally introduced solely for fiscal reasons but because they are
progressive, based on weight and engine size, they can also be considered to
enhance energy efficiency. Due to the level of the annual vehicle taxes, about
Ptas 12 000 per year at the most, the impact on energy efficiency
improvement may be modest.
Information/ Training programmes currently operating for efficient driving have received
Training support from the Spanish Confederation of Goods Transport, the Driving
Schools’ Association and the Government Traffic Department.
IDAE also edits several brochures on problems regarding fuel consumption in
transport, and city travel.
MONITORING/ IDAE carries out extensive monitoring of the actions developed nation-wide in
ASSESSMENT the fields of energy efficiency and diversification of energy sources.
In addition to the work that IDAE has historically carried out regarding the
monitoring of energy efficiency indicators and producing inventories of
combined heat and power (CHP) and renewable energy facilities, the
implementation of the Plan for the Promotion of Renewable Energy in Spain
2000-2010 (Plan de Fomento de las Energías Renovables en España 2000-
2010) has meant adapting the monitoring of renewable energy activities in
Spain to the requirements stated in the Promotion Plan.
In this new framework, since the autumn of 2000, IDAE has published a
newsletter on energy efficiency and renewable sources of energy entitled
Boletín de Eficiencia Energética y Energías Renovables, in which it
summarises the progress made, main milestones passed, and overall trends
regarding energy efficiency, CHP and RES at national level.
In the 200/2001 in-depth review of the energy policies of Spain, the IEA
stated:
The Government of Spain should:
• Monitor systematically the performance of measures taken.
10
Further For further information, please contact:
information
Carlos García Barquero
IDAE
Paseo de la Castellana, 95
E – 28071 Madrid
Tel: +34 (91) 456 49 00
Fax: +34 (91) 555 13 89
E-mail: cgbarquero@idae.es
11
Energy
IEA Efficiency
Update
SWEDEN Updated July 2003
BACKGROUND
1991 Energy policy was formulated by the Riksdag (Parliament) in the 1991 Energy
Energy Policy Bill with the purpose of creating the conditions for long-term sustainable
Policy political decisions on energy policy, whose goal was defined to be to secure
Bill the availability of electricity and other energy in the long and short term at
prices that are competitive on the world market.
It was observed in the decision that the time for the start of the nuclear power
phase-out, and the pace at which the phase-out would proceed, were to be
determined by the results of electricity conservation efforts, the availability of
electricity from environmentally acceptable power production, and the ability to
maintain internationally competitive prices.
From a climate viewpoint, it was considered urgent to avoid burning fossil
fuels whenever possible. According to the government Bill, this was to be
achieved through active energy conservation and using renewable energy
sources.
Government The guidelines established in the 1991 Energy Policy Bill were re-evaluated.
Bill on a A parliamentary Energy Commission was appointed in the spring of 1994 to
Sustainable examine the ongoing programmes for transformation of the energy system
Energy Supply, and analyse the need for changes and additional measures.
March 1997
On the basis of the work of this Energy Commission, in the spring of 1996 the
government invited the parliamentary parties to participate in deliberations
aimed at setting the foundations for sustainable long-term energy policy
decisions. In February 1997 these deliberations resulted in an agreement in
the Riksdag on guidelines for energy policy.
The 1997 Bill on A Sustainable Energy Supply strongly emphasises energy
efficiency.
State-administered work was carried out to increase knowledge about and
stimulate interest in economically and environmentally sound energy
1
efficiency. A total of SKr 450 million has been assigned over a five-year
period for the procurement of energy-efficient technology as well as for
information, training, municipal energy advisory services and the testing,
marking and certifying of energy-using equipment.
Guidelines The 1997 Guidelines for Energy Policy focus, inter alia, on the following
for Energy developments:
Policy
• The guidelines set down in the 1991 Energy Policy Bill remained
unchanged.
• The energy policy decision required the closure of the two nuclear
reactors, the first before 1 July 1998 and the second before 1 July 2001.
However, closure of the second reactor was conditional upon the loss of
its electricity production being compensated by new electricity production
from renewable sources and reduced use of electricity. On 16 June 1999
the Swedish Supreme Administrative Court pronounced its judgement
concerning the first reactor at Barsebäck. Barsebäck 1 reactor was shut
down in November 1999. In October 2000, the government issued a
written communication (2000/01:15) announcing its opinion that the
conditions for closing the second reactor had not yet been fulfilled.
According to the government, decommissioning should, however, be
1. On average in 2000 SKr 1 = US$ 0.109 and in 2001 US$ 0.097.
1
possible by no latter than the end of 2003. In October 2001, the
government again presented a written communication (2001/02:22) on the
renewed assessment of the conditions for the closure of Barsebäck II.
Again, the government found that the conditions for closure had yet to be
fulfilled. A further assessment of the conditions will be made during 2003.
• The launching in January 1998 of a seven-year programme for an
ecologically sustainable energy system. The programme includes work
intended to reduce electricity use and also to provide new electricity
production. The programme consists of two parts:
− The first part is a seven-year research, development and
demonstration programme aimed at promoting renewable energy
sources and new energy technology. The programme provides for
substantial investments in research, development and demonstration
of new energy technology relating both to the supply of renewable
energy and to greater profitability for improved energy efficiency.
− The second part of the energy policy programme is a five-year
subsidiary programme to promote energy efficiency and electricity
production from renewable energy sources such as bio-fuels, wind
and small hydropower plants. The support to energy efficiency
includes conversion of electrical heating to district heating, technology
procurement, information, labelling and municipal energy advisory
services. The use of electric boilers in district heating is to be
reduced.
The total cost of the programme was SKr 9.2 billion, of which SKr 5 billion
was for long-term research, development and demonstration programmes.
• The creation on 1 January 1998 of a new central energy authority, the
Swedish National Energy Administration (STEM) (www.stem.se)
responsible for implementing the greater part of the country’s energy
policy programmes, and with responsibility for co-ordinating the various
energy policy changeover and introductory measures. The responsibilities
of NUTEK in the energy area have thus been transferred to STEM. The
new English name of STEM is "Swedish Energy Agency".
• A committee was set up in January 2001 to develop future policies and
actions (after 2003) for the rational use of energy in buildings and industry.
A report was issued in October 2001.
2002 Energy Bill On 21 March 2002, the Swedish government presented its Energy Policy Bill
Co-operation for a Secure, Efficient and Environment-Friendly Energy Supply
(2001/02:143). This report, approved by Parliament on 11 June 2002, re-
affirmed the country's established energy policy objectives:
• Create the conditions for efficient energy use and cost-efficient Swedish
energy supply with low adverse impact on health, the environment and the
climate.
• Facilitate the transformation into an ecologically sustainable society,
promoting sound economic and social development in Sweden.
• Contribute to the creation of stable conditions for a competitive business
sector, and to the renewal and development of Swedish industry.
• Contribute to broadening co-operation within the Baltic region with regard
to energy, the environment and the climate.
The Energy Policy Bill also contains three main proposals:
• A new method to promote environmentally-friendly and renewable
electricity production through a quota-based trading programme for green
electricity certificates.
• Measures designed to encourage more efficient energy consumption
2
though the rationalisation of existing policy measures and the
dissemination of knowledge both nationally and regionally.
• Strengthening the competitiveness of combined heat and power (CHP) by
exempting such plants from certain taxes on energy products. The issue is
to be decided in connection with the budget decision for 2003.
Inter-ministerial On 1 March 2001, the government appointed an Interministerial Working
Working Group Group for Rational Energy Consumption to propose measures for the
promotion of energy-efficient use of energy. The Group presented the report
(Ds 2001:60) More Efficient Energy Consumption: Proposals for Market-
Based Measures in October 2001. Among the government initiatives proposed
in the report was the establishment of long-term voluntary agreements
between government and energy-intensive companies (see below).
Government The lead responsibility for developing energy policy rests with the Minister of
Energy Industry, Employment and Communications. STEM is the central government
Administration body responsible for most functions within the energy area. A number of
administrations have a role in implementing the energy policy programmes.
The Swedish Board of Housing, Building and Planning is responsible for
building codes and related issues. The regional authorities are responsible on
behalf of the Swedish Board of Housing, Building and Planning for the
implementation of those parts of the sub-programmes which concern private
households. The Swedish Consumer Agency is responsible for testing,
labelling and certification of energy use in household equipment, etc. The
transport authorities (Vägverket, Sjöfartsverket, Luftfartsverket, Banverket)
have responsibility within their sectors to promote energy efficient use. A
merger process, in effect since 1 January 2001, resulted in some restructuring
related to energy efficiency and energy-related research:
• The new Swedish Research Council for Environment, Agricultural
Sciences and Spatial Planning (FORMAS) (www.formas.se) has taken
over the activities previously pursued by the Swedish Council for Building
Research (BFR) responsible for energy-related building research and
parts of the Swedish Environmental Protection Agency responsible for the
supervision of environmental issues under the energy policy programme.
• The new Swedish Agency for Innovation Systems (VINNOVA)
(www.vinnova.se) has taken over the activities previously pursued by the
Swedish Transport and Communications Research Board (KFB) and by
parts of the Swedish Business Development Agency (NUTEK).
• The new Swedish Research Council (www.vetenskapsradet.se) has taken
over the activities previously pursued by the Swedish Natural Science
Research Council (NFR) and the Swedish Research Council for
Engineering Sciences (TFR) responsible for energy-relevant basic
research.
• The Swedish Energy Agency (STEM) monitors implementation of the
energy policy programme.
Given the emphasis put on co-operation in the Baltic region, the programme of
co-operation with the Baltic region and Eastern Europe in the energy field
administered by STEM includes, inter alia, a programme for more efficient use
of energy, conversion from fossil fuels to other forms of energy and
environmental improvements in plants producing electricity and heat. A
budget of SKr 350 million has been allocated to this programme.
3
In the 2000 in-depth review of the energy policies of Sweden, the IEA stated:
The Government of Sweden should:
• Clarify existing qualitative goals for efficiency improvement programmes to
ensure an objective assessment can be made on their cost-effectiveness
and, in particular, the contribution energy efficiency programmes may
make to offsetting any further reductions in nuclear capacity.
Energy Sweden has applied policies and measures for climate change since 1988,
and the when the issue was discussed in the Riksdag for the first time. A more
Environment comprehensive programme was adopted by the Riksdag in May 1993 when
the Bill regarding Strategies against Climate Change was adopted. The goal
established by the Riksdag was that by 2000 emissions of carbon dioxide from
fossil fuels should be stabilised at the 1990 level and decline thereafter,
pursuant to the UN Framework Convention on Climate Change (UN FCCC).
Furthermore, emissions of methane from disposal of wastes were to be
reduced by 30% between 1990 and 2000.
The main strategy to achieve the carbon dioxide goal is to limit the need for
fossil fuels and replace them with renewable energy sources, along with better
management and more efficient use of energy.
After ratification of the UN FCCC, Sweden issued its national communication
entitled Sweden’s National Report under the UN Framework Convention on
Climate Change, which was adopted by the Swedish government on
15 September 1994. The second national communication entitled Sweden’s
Second National Report under the UN Framework Convention on Climate
Change was adopted by the Swedish government on 17 April 1997. This
report was drawn up before the final adoption of the Bill on A Sustainable
Energy Supply. The third National Communication (NC3) to the UN FCCC
was adopted by the Swedish government in November 2001.
(http://unfccc.int/Resource/Docs/natc/swenc3.pdf )
In December 1997, under the Kyoto Protocol, the European Union agreed to
reduce greenhouse gas emissions by 8%. Under the EU Burden-Sharing
2
Agreement of 17 June 1998, Sweden is allowed to increase its emissions of a
basket of greenhouse gases to 4% above 1990 levels. The commitment
period for the target is 2008-2012.
Government Bill On 30 November 2001 the government issued a Bill on a Climate Change
on a Swedish Strategy (2001/02:55) formulating a climate strategy for the future. The
Climate Change government proposed that Swedish GHG emissions should be at least 4%
Strategy lower in 2008-2012 than in 1990. This national target should be reached
without using carbon sinks or flexible mechanisms. The strategy includes a
diverse array of measures to achieve the reduction goals. The primary tool will
be climate investment programmes undertaken by municipalities, which can
apply for funds for investments to reduce emissions. Funding is projected to
be SKr 200 million in 2002, SKr 300 million in 2003 and SKr 400 million in
2004. Additional measures include a system of green electricity certificates
for production from renewable sources, a strategy for alternative fuels and
greater dissemination to the public of information on climate change.
Furthermore, a commission will be established to analyse the areas in which
the efficiency of fossil fuels can be improved or where they can be replaced by
other fuels. The national target should be monitored and milestones for this
monitoring process should be the years 2004 and 2008. If the emissions
development is worse than expected, additional measures may be introduced
2. The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
4
or the target revised. Industry's competitiveness should also be taken into
account.
Environmental In May 2001, the government presented its Bill Environmental Quality
Quality Objectives (2000/01:130) and in November 2001 the Parliament agreed to the
Objectives Bill proposals. The decision enhances the structure of the 15 Environmental
Quality Objectives voted by the Parliament in April 1999. Between three and
eight sub-targets have been established for each objective. Concrete
measures and strategies to reach the targets by 2010 have also been set out.
Resources allocated to environmental protection will be increased by 70%
between 2001 and 2004. The Swedish Energy Agency will be responsible for
the energy related aspects of three of the 15 Environmental Quality
Objectives, i.e. Reduced Climate Impact, Clean Air and Natural Acidification.
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Building Thermal insulation requirements in building codes were introduced in 1960
Code and revised in 1975, 1980, 1988 and 1998. In some of these revisions the
changes were related to energy requirements. The revised building
regulations of 1988 introduced a building performance standard instead of
requiring insulation for certain building components. This performance
standard only includes requirements for overall energy performance. The code
only states what, in principle, should be achieved, and not how it should be
done. The aim is to promote cost-effective solutions. This means that the
building code does not include specific requirements for thermal insulation or
windows.
Appliance SKr 40 million has been assigned for information on, and trials, testing and
Labelling marketing of energy-using products and systems over a five-year period
starting in July 1997. The National Consumer Board is responsible for the
programme.
A national labelling programme for household appliances was introduced in
1993. Thereafter, Sweden introduced the EU labelling directive and applied it
to refrigerators/freezers, washing machines, dryers and dishwashers.
Voluntary energy efficiency labelling has been implemented for computer
screens.
Sales statistics on white goods show a large increase in sales of efficient
refrigerators/freezers (EU label categories A and B had achieved a 70%
market share by 1998). Probable causes are a combination of the impact of
the EU label, national information campaigns and price changes. Sales of
energy-efficient washing machines are also increasing, but more slowly.
Regarding labelling, recent Swedish efforts have focussed on a Nordic
labelling scheme for windows and a labelling scheme for ventilation and fan
systems. Work on high quality indoor environment and energy-efficient
ventilation has also taken place.
District It was in the 1940s that local authorities began to look at district heating (DH).
Heating Its use spread during the 1950s and 1960s as a result of the excellent
opportunities presented by the extensive investments in new housing and
other buildings being made during that period. The biggest growth in district
heating occurred in the period 1975 to 1985.
5
Until the beginning of the 1980s, most DH systems were operated as local
authority services. However, during the 1980s and 1990s, most were
restructured as limited companies owned by local authorities. In 2001, there
were about 220 companies supplying heat in Sweden, 68% of them owned by
local authorities, 13% privately owned, 10% owned directly or indirectly by the
State and 9% operated as local authority services.
The nominal connected load in 1997 amounted to about 22 GW, supplied
through about 9 600 km of mains. During the year, 42.2 TWh of heat was
supplied, equivalent to 43.1 TWh after correction for statistically average
climatic conditions. Fifty six per cent of the heat was supplied to residential
users, almost 36% to the service sector and over 8% to industry.
The Swedish National Energy Administration is responsible for the
administration of financial support for conversions from electric heating to
district heating that was approved by Parliament in the 1997 energy policy
decision. In 1998 and 1999, total support of about SKr 300 million was
granted, leading to the connection to district heating grids of 9 504 houses,
12 436 apartments, and another 174 premises. This is estimated to result in a
reduction in electricity use of 230 GWh.
The Bill Energy Markets in Transition-Better Regulations and Supervision
(2001/02:56) emphasises the need to stimulate competition in the DH sector
so as to increase productivity and encourage lower prices. The appointment of
a Commission of Inquiry to study the issue is in a planning stage.
Total installed CHP capacity today is about 3 484 MW where 57% is CHP
production based on biofuel. There is still a considerable potential to use more
biofuel for CHP in municipal district heating systems. CHP in industry is
normally 10% co-generation from annually 40 TWh of heat (100% biofuel)
from burning black liquor in the cellulose industry.
A programme for investment grants for CHP based on biofuel in the period
1998 to 2002 resulted in an increased electricity production capacity in
municipal DH plants of nearly 290 MW during 2001. The investment grants
were basically € 325 per installed MW electricity production capacity based on
biofuel, but not more than 25% of total investment cost.
According to the government Energy Policy Bill, Collaboration for a Secure,
Efficient and Environmentally Friendly Energy Supply (2001/02 143)
presented by the government on 21 March 2001, these grants will be replaced
by market based Green Certificate incentives: it proposed the adoption of a
quota-based Green Certificate system to promote production of electricity from
renewables to be implemented by January 2003.
In the 2000 in-depth review of the energy policies of Sweden, the IEA stated:
The Government of Sweden should:
• Consider increasing taxes on household electricity consumption as an
alternative to promoting the expansion of district heating as a means of
reducing electricity consumption.
• Harmonise taxation of heat and electricity production from combined heat
and power plants.
Information An important element of STEM's programme is the dissemination of
Education information, both nationally and locally, concerning the opportunities for using
Motivation energy-efficient technology, coupled with training and the provision of advisory
services. A budget of SKr 60 million has been allocated for information
6
activities carried out by STEM and support for organisations, such as regional
energy centres, for dissemination of information.
A budget of SKr 250 million has been allocated for local authority energy
advisory services. Municipalities can thus apply for funding for local energy
advisory services from the central national government.
The implementation of energy-efficiency measures and purchase of high
performance products are promoted by two purchaser group networks. In
addition to the already existing network representing a majority of real-estate
owners in the residential sector, a new network consisting of the majority of
real-estate owners of commercial buildings in Sweden has been established.
These networks serve as excellent platforms for the development of new
energy-efficient technologies, the dissemination of information and
demonstration projects. Another excellent network is the dialogue project
Building Living and Real Estate Administration for the Future (in short the
Bygga-Bo dialogue) where major real-estate owners and real-estate
administrative organisations and building contractors, together with the
government, have agreed to join efforts towards sustainable development
within the building sector. Furthermore, on the issue of Swedish experiences
with sustainability, a book Building Sustainable Energy Systems, edited by
Semida Silveira, has been published.
Research and The programme for research, development and demonstration of new
Development technologies includes grants for all those stages. An important goal of the
programme is to reduce the cost of new efficient technology and to achieve a
market introduction. Energy efficient products and systems in the residential,
commercial and industrial sectors are one of the priority areas.
PUBLIC SECTOR
Eco Energy The Eco energy municipality programme started in March 2001. Seventy
Programme municipalities applied for participation and ten were selected for the first year
of the programme. The responsibility of the municipalities is to decide on an
energy policy, carry out measures to improve energy efficiency and introduce
renewable energy sources. The municipalities will be offered seven different
educational packages.
INDUSTRY
Measures already
existing and/or
being improved
Standards and Voluntary standards have been established for lighting, fans, pumps,
Regulatory ventilation systems and other products used in production. Production
Instruments standards have been established in the engineering, plastics, metals, saw-
mill, rubber, and pulp and paper industries. Mandatory standards and
regulatory measures, which have been widely used in industry for emission
control, are now part of the programme for efficient energy use in industry.
Research and Research and development efforts are concentrated in three R&D
Development programmes – Climate 21, ELAN efficient use of electricity and Process
integration. The Climate 21 programme for more efficient refrigerating
machinery and heat pumps started in 1997. A central element of the
programme is the dissemination of information on costs and energy efficiency,
and the environmental impact of applications and systems to participating
companies. The results of the various development projects should be
directly applicable to the development of hardware, technologies and systems
design at the very cutting edge of what is possible to achieve. Process
7
integration is an umbrella name for methods for the design and conversion of
industrial processes in respect of capital and running costs, energy yields,
production capacity and environmental emissions.
Voluntary EKO Energy is a voluntary agreement programme within STEM directed at
Agreement larger energy-intensive industrial companies. It started in 1994 and aims at:
EKO Energy
• Decreasing carbon dioxide emissions to the 1990 level according to the
1997 Kyoto agreement. The industry sector in Sweden has a
considerable potential to contribute to this decrease.
• Contributing to the decision by the Swedish government to replace the
Barsebäck nuclear electricity production by increased energy efficiency.
• Following the EC Council Directive 93/76/EEC to limit carbon dioxide
emissions by improving energy efficiency.
• Pointing at energy use as one of the company’s most significant
environmental impacts, to work within their environmental management
programmes as EMAS (Eco Management and Audit Scheme) and/or ISO
14001, the international environment management scheme.
The voluntary agreement concluded between STEM and an energy-intensive
company consists of the following elements:
• STEM provides a comprehensive inventory and analysis of energy use in
the company production and premises, including a list of suggested
measures to be taken. The suggested measures mainly concern the
building (ventilation, heating, lighting) and surrounding equipment
(compressed air).
• The company sets energy and environmental targets and establishes an
action plan based on reasonably economically viable measures that the
inventory and analysis suggest. The action plan has to be revised every
year and submitted to STEM.
• STEM provides a comprehensive material flow analysis as well as
introductory comparison of the company environmental awareness and
environmental management compared to guidelines based on EMAS or
ISO 14001 standards.
• The company establishes long-term energy and environmental policy in
accordance with EMAS or ISO 14001.
• STEM provides an educational package on the process of energy-efficient
industrial purchasing, ENEU 94.
• The company establishes ENEU 94 as a company standard method to
purchase energy-efficient machines and tools. Energy-efficient purchasing
is a long-term activity that initiates energy issues into everyday life within
the company. ENEU 94 introduces investment calculations using life-
cycle analysis and not pay-off analysis. This is a very important part of
EKO Energy and also the most difficult part for the company to fulfil.
• STEM arranges goodwill activities such as spreading success stories to
the press and/or appointing the most successful EKO energy company of
the year in a ceremony covered by the media.
Should no action be taken, no sanctions exist against the company other than
lost goodwill.
More than 30 Swedish companies are involved in EKO energy activities. No
company has yet found that it could afford not to follow the expert advice on
energy efficiency measures. Energy efficiency has mainly been achieved in
areas such as ventilation (27%), motors and drives (22%), lighting (2%),
compressed air (7%), heating (8%) and process measurement areas (32%).
In 1998 energy saving in the ten companies reporting energy savings were
0.098 TWh (12% of their total consumption) of which 0.036 TWh was
8
electricity. The savings per energy efficiency measure range from 4% to 28%.
On 31 August 2000, the government appointed a special negotiator in the
Ministry of Industry with the task of preparing background material and
proposals for long-term agreements with energy-intensive industry. The aim is
to promote energy efficiency in industry.
A report was submitted to the government in October 2001 (Ds 2001:65),
proposing guidelines for a programme of long-term agreements. According to
the proposal, companies within the energy-intensive sector will be invited to
reach an agreement of some form with the government for a period of five to
ten years. The companies are to undertake to introduce energy management
systems, with the help of which they identify and seek rationalisation
measures and draw up plans of action, as well as follow up and revise these
efforts. The extent to which economic incentives can be offered to companies
that enter into such agreements is to be further examined. Further
Commissions of Inquiry in certain areas, and continued contacts and
discussions with representatives of industry, will be necessary to develop the
proposal on principles into a full-scale proposal.
Technology Technology procurement of energy-efficient products is a means of
Procurement encouraging the development and marketing of energy-efficient products and
systems. The methodology was developed by NUTEK, the National Board for
Industrial and Technical Development.
Technology procurement activities aim to improve the energy efficiency of
products by using companies’ competitive abilities to make better products
and thus to move the market toward more efficient products. The process
brings together customers to make functional demands, e.g. a better
refrigerator or energy-efficient high-frequency (HF) electronic ballasts. These
potential purchasers indicate that they are prepared to place an order if
specified conditions are fulfilled, and the suppliers then compete on the basis
of design and price.
NUTEK has initiated about 30 technology procurement projects and over
1 500 other projects. About 100 incentive agreements have been signed.
During 1998-2002 the Technology Procurement Programme resulted in the
introduction of more than 25 new technologies during the last 12 years
targeting the residential and commercial sectors. New technology
procurements are for resource efficient tap-water mixers, building automation
systems, integrated systems for solar screening and linking of daylight,
ventilation filters, and energy-efficient stoves. Additionally, guidelines on
procurement have been developed in several areas, such as heating systems,
cooling systems, ventilation, windows, lighting, appliances, standby losses,
etc. aiming at enhancing the purchase of efficient equipment
The technology procurement projects have resulted in a clear technology leap
for refrigerators/freezers and have accelerated the mass production of low-
energy appliances. The market for improved HF lighting systems has grown
rapidly. The success of technology procurements for visual display units
(VDUs) and heat pumps has also achieved savings and stimulated the
market. However, the technology procurement for high-performance windows
was a failure: the market introduction of high-performance windows coincided
with a recession in the building industry and the additional cost of these
windows meant they were not competitive with ordinary, cheaper windows.
The Swedish National Energy Administration’s budget allocated SKr 100
million over a five-year period for the development and introduction of energy-
efficient technology through technology procurement.
9
Corporate Corporate commitments have been launched by large chain stores with their
Commitment own manufacturing facilities. They have agreed with their suppliers, customers
and Recognition and NUTEK and STEM that energy-efficient products are to be used or
produced in virtually all stages of production and distribution. Under voluntary
agreements signed by several large enterprises, energy-efficient methods are
required for all semi-manufactured goods bought by the companies, as well as
for all production processes used in the companies. Products used in the
distribution and marketing of goods, such as lighting and ventilation, must also
be energy-efficient. Finally, for products sold by the companies, an adequate
and representative selection of energy-efficient technology is offered to their
customers. Participating companies receive a small subsidy to defray some of
the cost of adjusting their inventories and production methods to include
energy-efficient products and processes.
TRANSPORT
Measures already
existing and/or
being improved
1998 In 1998, the Riksdag adopted a new transport policy based on Transport
Transport Policy for Sustainable Development, a revised strategy for the long-term
Policy infrastructure plans which entails a continuation of the previously decided
investment in the expansion of the railway network. Electrically powered rail
transport is energy-efficient and has a very small impact on the environment.
This was one of the reasons why the government adopted a ten-year
investment plan for railway infrastructure amounting to SKr 36 billion in 1998.
This will enable Banverket to complete the work of adapting the railway for
high-speed trains. Since freight traffic is currently struggling with capacity
problems on several lines, SKr 10 billion is directly targeted at freight traffic
programmes. In addition, there are many projects involving improvements for
both passenger and freight traffic.
For the road network, the strategy entails a reorientation from big investments
in the national trunk roads to increased efforts to improve the existing road
network as regards accessibility, environment and traffic safety. A plan for the
period 1998-2007 has been prepared by regional and central authorities.
A new authority, Rikstrafiken, has been created to promote the long-distance
public transport system. It will encourage the use of public transport and
support unprofitable public transport considered socially desirable.
Information The Consumer Agency and the Swedish National Road Administration provide
consumers with information about the energy consumption of vehicles. The
Swedish National Road Administration and STEM co-operate with driving
teacher associations to accelerate knowledge about more energy-efficient
driving behaviour. Information campaigns are also carried out to encourage
companies to improve efficiency in their logistics and transport planning.
Fuel consumption figures for new cars must be given by the producers
according to Guidelines for Information about Fuel Consumption, Carbon
Dioxide Emissions and Environmental Class for New Cars published by the
Consumer Agency. Since 1977 the Consumer Agency has gathered and
published these figures annually in a brochure which has to be available in
every outlet selling new cars in Sweden. Car suppliers also have to provide
information about fuel consumption in all advertisements for specific models of
new cars. The brochure also contains advice on how to save money and fuel
and on how to protect the environment. It is distributed free of charge by
central and local consumer authorities and the information is also available on
Internet.
10
Taxation In Sweden, taxation of road traffic is an important element of transport policy,
providing an instrument to influence the composition and turnover of the motor
vehicle fleet, thus improving its average fuel efficiency. Since 1991, the tax on
petrol includes a carbon dioxide tax estimated to have generated about 11%
of the state’s revenues from road traffic-related taxes in 1996. VAT of 23.46%
was imposed on petrol in 1990, and has since been raised to 25%.
Up until October 1993, a tax was paid on diesel-powered trucks, cars and
buses, based on distance driven (kilometre tax). This tax required border
controls and was replaced by a diesel oil tax after Sweden joined the
European Union. Sweden also levies sales tax, annual vehicle tax and user
charges. Sales taxes are levied on light vehicles only. The annual vehicle tax
is differentiated according to vehicle weight and fuel. Only heavy goods
vehicles are charged so-called user charges (Eurovignette).
Changes have been made to the taxation of company cars so that drivers pay
for petrol either directly or indirectly. Further changes have been proposed by
the government in a white paper.
In April 2001, the government appointed a Commission of Inquiry with the
mandate to revise the taxation of road traffic. The investigation focussed
especially on issues related to environment, safety and competition while
taking into consideration the influence of the tax system on transport
efficiency. A special consideration was to investigate the possibility of
introducing financial incentives to promote low emission vehicles.
Rail transport is excluded from energy taxes, but there is a user fee system.
Parliament reduced this fee in 1998 in order to increase the relative
competitiveness of rail transport.
Energy taxes do not apply to maritime and air transport. Shipping pays
environmentally differentiated seaway charges, and aviation pays route
charges according to the Eurocontrol procedure.
MONITORING/ The various energy efficiency programmes are systematically evaluated each
ASSESSMENT year and the results submitted to the government. One of the main tasks
assigned to STEM is to monitor the implementation of the various measures
and to report on the effects of the closing down of the reactors in Barsebäck.
The short term energy programme (1998-2002) resulted in 2 TWh of new
electricity production and electricity savings by January 2001. The estimated
result -- calculated from sales statistics -- for the energy efficiency programme
is approximately 0.48 TWh. The new technologies developed during 2000,
financed by the technology procurement programme, include ventilation units
with heat exchanger for single family buildings (20% efficiency improvement),
cookers (30-40% efficiency improvement), refrigerator/freezers (33%
improvement) and new copiers (60% improvement).
As it is often difficult to quantify the gains in energy efficiency from the
programmes, a need has been identified to develop new methods for their
evaluation and assessment.
An evaluation plan was set by the Ministry of Industry, Employment and
Communications in 1999. This plan includes a range of performance
indicators for the various activities within the programme. Evaluation by
external evaluators is planned every second year, continuous monitoring is to
be carried out by the Energy Administration and reported to the Ministry in its
annual report. The Ministry sets the reporting requirements annually. It is also
the task of the Energy Administration to monitor developments on the energy
11
markets and energy systems, and to analyse relationships between energy
technology, the environment, climate and economic growth.
The Swedish Energy Agency has recently elaborated a report on its energy
efficiency activities over the four year period, 1998-2001. However, due to
difficulties in baselines (which could have happened anyway) it has not been
possible to assess the overall results except in very rough figures.
Further For further information, please contact:
information
Egil Ofverholm
Swedish Energy Agency
Box 310
S - 631 04 Eskilstuna
Tel: +46165442040
Fax +46165442099
E-mail: egil.ofverholm@stem.se
12
SWITZERLAND Updated November 2001
BACKGROUND The Decree on Energy Use (Energienutzungsbeschluss, ENB) of 14 December
1990, the corresponding Decree on Efficient Energy Use of 1 May 1991 and the
Federal Energy Law of January 1999, which replaces the Decree on Energy
Use, compose the essential legal basis for the current established measures of
energy policy at the federal level.
Energy The Energy 2000 Action Plan (Federal Council Decree of 6 November 1990)
2000 was in force from 1991 to 2000. Its goal was to stabilise the use of fossil fuels
(and hence CO2 emissions) by 2000 and to reduce them thereafter. Its strategy
was based mainly on energy efficiency but also on increasing the contribution of
non-hydro renewables to electricity generation, raising hydroelectric generation
and upgrading the capacity of existing nuclear power plants.
Energy 2000 was based on the following three principles:
• Voluntary measures for the efficient use of energy and for the use of
renewable forms of energy. The implementation of these measures rests
with seven “marketing departments”: Public Sector, Residential Buildings,
Industry, Small Industries and Services, Hospitals, Motor Fuels and
Renewables.
• State framework conditions for a supply of energy that is sufficient, safe and
acceptable economically and environmentally, and also for a non-wasteful,
efficient use of energy.
• Discussion of controversial themes (e.g. nuclear energy, measures for
saving energy) with interest groups and those affected.
Total federal government financing for the Energy 2000 Action Plan amounted
1
to SF 558 million for the period 1991-2000, less than what was planned when
the plan was launched (SF 170 million per year). Funding aimed mostly at
promoting voluntary actions. Around one-third of the funding was dedicated to
the promotion of renewables through information, advice, multi-level training,
quality guarantees and subsidised installations.
In the 1999 in-depth review of the energy policies of Switzerland, the IEA
stated:
The Swiss government should:
• Review the process of setting voluntary measures to identify whether and
how it could be improved and consider setting more binding measures
where possible.
SwissEnergy The Energy 2000 Action Plan which was limited to ten years ended in 2000. It
was replaced by the Swiss Energy Action Plan ("SwissEnergy") which was
launched by the federal government on 30 January 2001 (Federal Council
Decree of 16.01.2001). The annual budget for SwissEnergy amounts to SF 55
million.
Since the cantons and municipalities still have major responsibility for energy
policy, they have to implement Energy 2000 programmes, the SwissEnergy
plan and the Federal Energy Law (see below) for them to become effective and
applicable. This, and the country’s broad, consensus-based approach, requires
consultation among all those active in energy markets and policy. SwissEnergy
thus brings together representatives from all levels of government, federal,
cantonal and local, as well as from utilities, supply companies, industry,
consumer groups and environmental organisations.
1. On average in 2000 SF 1 = US$ 0.590.
In the 1999 in-depth review of the energy policies of Switzerland, the IEA
stated:
The Swiss government should:
• Establish a new Energy Action Plan Beyond 2000, based on a
comprehensive assessment of the Energy 2000 Action Plan. The new plan
should be adapted to the development of competition in the energy market.
• Strengthen public information on the cost effectiveness of policy measures
in the Plan. Cost effectiveness should be assessed, taking into
consideration economic trends.
SwissEnergy summarises both energy policy objectives and the measures to be
taken in co-operation with the cantons and the private sector. The key areas of
the Plan are energy use in buildings and transport, the economics of energy
production and use, and promotion of renewables and energy efficiency. Many
activities initiated under Energy 2000 will be continued.
In SwissEnergy, the government sets a target to reduce consumption of fossil
fuels by 10% and to limit the increase of electricity consumption to 5% between
2000 and 2010. Heat production from renewables is planned to increase by
3 TWh and electricity generation by 0.5 TWh during the same period.
Federal To replace the Decree on Energy Use of 1991, which expired at the end of
Energy 1998, a new Federal Energy Law was adopted by the Parliament in July 1998
Law and entered into force on 1 January 1999. The Energy Law envisages
measures to reduce energy consumption in the following areas:
• Regulations about stating the energy consumption of installations, vehicles
and equipment, and about reducing their consumption.
• Cantonal legislation in the building sector (heat insulation, individual
metering and billing of heating and hot water).
• Financial incentives for the efficient use of energy, renewable sources of
energy and waste heat and promotion measures (information, advice,
education, training, research, pilot installations, demonstration installations).
• Guidelines and regulations to ensure the economic and environmentally
friendly supply of energy (responsibility of the energy industry for the supply
of energy, the use of waste heat in power stations which run on fossil fuels,
regulations for independent power producers).
The new Energy Law made the following changes to the 1991 Decree:
• It calls for more extensive co-operation with the private sector, reaffirms the
principle of subsidiarity (cantons are free to act as long as there is no
federal regulation) and gives priority to voluntary actions rather than
regulations.
• It gives more responsibilities to the cantons in the field of regulations, in
particular for buildings.
• It allows the Confederation to fund measures in favour of the efficient use of
energy. The Energy Law requires an annual funding to the cantons on the
condition that they have set a programme in favour of energy efficiency and
renewables and when at least 50% of the cantonal funding is dedicated to
households. Direct Confederal funding to projects should be an exception.
Funding from the Confederation and the cantons cannot exceed 40% of the
investment cost (exceptionally 60%).
Energy Agencies The Energy Law and the Law on CO2 envisage the possibility of giving various
in the Framework tasks to private organisations to implement the SwissEnergy programme. In this
of SwissEnergy context, four Agencies have been created:
• The Agence de l'énergie pour l'économie (AenEc), Energy Agency for
Economy.
• The Agence suisse des énergies renouvelables et de l'efficacité
énergétique (AEE), Swiss Agency for Renewable energy and Energy
efficiency.
• The Agence de l'énergie pour les appareils électriques (EAE), Energy
Agency for electric appliances.
• The Agence suisse pour l'éfficacité énergétique (S.A.F.E.), Swiss Agency
for Energy Efficiency: information site: www.topten.ch
The AenEC, established in 1999, is supported by the Union suisse des arts et
métiers, energy associations for large energy consuming branches, machinery
industry and the Swiss company of manufacturers. Its main activity is the
preparation and conclusion of Agreements. It implements a monitoring system
for the benefit of the AenEC members involved in SwissEnergy or for
independent partners. The target is that, by the end of 2003, half of the
companies must be informed about AenEc activities and about the Agreement
process, and at least 40% of the industry and service consumption must be
covered by Agreements. For the period 2001-2003, the total budget financed by
the economy amounts to SF 13 million.
The AEE established in 1998 is supported by the major Swiss associations in
the field of renewable energy and the building industry. Its main task is to
promote the rational use of energy and to encourage renewable energy. It
receives the mandate by SwissEnergy to organise and support the marketing of
renewable energy, and the basic and updated training on renewables. The rate
of self-financing of AEE must reach at least 50%.
Energy Switzerland signed the United Nations Framework Convention on Climate
and the Change (UNFCCC) on 9 May 1992. In order to meet the commitment
Environment (Article 12 of the Convention), a first national communication (Confédération
Suisse, 1994) was submitted on 21 September 1994.
The Second National Communication of Switzerland 1997 — Greenhouse Gas
Inventory 1995, dated April 1997, documents activities undertaken with a view
to meeting commitments under the Convention.
Law on CO2 The federal law on CO2 emissions (Law on CO2) came into force on 1 May
2000. Under this law, total CO2 emissions should be reduced 10% by 2010
compared to 1990. CO2 emissions from petrol and diesel must be cut by 8%
and from other combustible fuels by 15%.
According to the Law, reduction of CO2 emissions must be reached through
measures related to energy , transport, environment and financial measures, as
well as through measures adopted by companies and private individuals on a
voluntary basis.
The law stipulates two phases of implementation:
Phase I: Voluntary measures:
The target of this phase is to avoid the implementation of a tax on CO2,
following the measures already implemented and the adoption of voluntary
measures. Indeed, SwissEnergy is being implemented as well as the Energy
Law.
The most important component of Phase I is the official commitment by
individual companies and associations of companies to comply with the
measures, the framework of which is set up in a new Directive (see below)
relating to industry, handicrafts and services. A further Directive in course of
preparation will concern the building sector. Compliance with the Directive
should exempt the companies from a CO2 tax (as set out in Article 9 of the law
on CO2). This tax is a subsidiary tool only to be implemented when the
measures adopted are insufficient and if the reduction target could not
otherwise be reached.
Phase II: Tax on CO2:
This CO2 tax, which could be introduced in 2004, would be levied on solid and
liquid fuels. According to the Law, its maximum amount will be SF 210 per
tonne of CO2. The Federal Council decides on the introduction and the level of
the tax on the basis of the CO2 reduction effectively achieved. The product of
the tax is reimbursed to the economy and the population.
Directive The target of the new Directive is to provide the economic actors with a stable
framework to implement measures adopted on a voluntary basis. It sets up two
types of framework:
1. The Convention concerns all enterprises willing to contribute on a voluntary
basis to the reduction of their energy consumption and as such to reduce
their CO2 emissions. This corresponds to Phase I of the Law on CO2.
2. The Engagement Formel (Formal Agreement) concerns all the
commitments voluntarily adopted which must be fulfilled by companies in
order for them to be exempt from the tax on CO2. The Engagement sets
out the calculation of the CO2 reduction target, and the monitoring and
reporting of the measures implemented. Under the Law, only large
companies or associations of at least five companies which together emit
more than 10 000 tonnes of CO2 per year are allowed to conclude
Engagements Formels. These associations could be organised under the
umbrella of the AenEc (see above). Small and medium-sized companies
wishing to conclude Formal Agreements must set up an association of at
least 30 companies and formulate a common target.
Institutional The Swiss political system is a Confederation with a federal government,
Framework parliament and court. The territory consists of 26 cantons (states), each of
which has its own government, parliament and cantonal courts. Responsibilities
are shared between the federal level and the cantons.
Responsibility for energy matters has traditionally been with the cantons and
municipalities. In a referendum held on 23 September 1990 the Swiss adopted
a Constitutional Energy Article, in force since May 1991, authorising the federal
government to carry out a national energy policy in pursuit of specific goals,
such as energy efficiency and an economic and environmentally benign energy
supply.
Subsidiarity plays an important role: the Constitution states that unless the
legislative power is explicitly attributed to the federal level, the cantons are
sovereign, i.e. entitled to legislate in an area of policy. Co-operation (between
the different political levels and between the government and the economy) is of
considerable importance in Switzerland.
In the 1999 in-depth review of the energy policies of Switzerland, the IEA
stated:
The Swiss government should:
• Further enhance co-operation with the cantons on energy policy, especially
on the Energy 2000 Action Plan and on the introduction of competition in
the energy markets to ensure successful implementation of energy policy
measures.
Switzerland is a member of several international organisations (e.g. OECD, IEA,
World Bank Group, and all United Nations specialised agencies). However, it is
not a member of the United Nations or of the European Union.
Although Switzerland is not a member of the EU, most new Swiss laws or
changes in existing laws have voluntarily been made compatible with EU law.
This is to facilitate possible future adhesion to the European Union and may
also be explained by the strong economic ties with many European Union
countries, despite the formal political absence of Switzerland in the European
Union.
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Energy Household appliances
Efficiency For household appliances the implementation of the European Union energy
Labelling labelling scheme with efficiency-indicators A – G will be made mandatory in
2002. The categories involved are washing machines and tumbler dryers,
dishwashers, refrigeration and household lamps. Energy labelling for other
appliances will be extended.
Consumer electronics
The energy label was introduced at the beginning of 1994. Up to the end of
2000, the label was part of the Energy 2000 programme. The same label is now
used in the framework of the new programme SwissEnergy. The definition of
the criteria is co-ordinated in the Group for Energy Efficient Appliances (GEEA)
which includes eight European countries.
Office equipment
There is a trend to use more and more the Energy Star label, a joint US
Department of Energy/US Environmental Protection Agency programme,
instead of the energy label. The industry prefers the Energy Star label because
the criteria are easier to fulfil.
Energy Household appliances
Efficiency The European Union energy efficiency standards are implemented for
standards refrigeration appliances. Higher efficiency standards for refrigeration and also
for other categories of household appliances are planned for the next years.
In the 1999 in-depth review of the energy policies of Switzerland, the IEA
stated:
The Swiss government should:
• Expand labelling for energy efficiency of domestic appliances and office
equipment.
Model Decree on The model decree on efficient energy use in buildings contains certain
Efficient Energy requirements concerning building shells and installation technologies used in
Use in Buildings the construction sector. With respect to the shell, there are two options to
2
choose from: observing either a specific heating energy requirement (MJ/m
2
per year) or individual U-values (W/m K).
With respect to household technology, the decree contains certain requirements
such as condensation gas boilers, maximum distribution temperatures,
adjustment controls in each room, requirements for air-conditioning systems,
etc. These sections are supplemented by the Clean Air Act, which calls for
homologation for heating boilers. Here, certain strict requirements have to be
observed with respect to exhaust and standby losses, and the Clean Air Act
also stipulates that periodic inspections must be carried out, in which exhaust
losses and air pollution levels have to be measured (carbon monoxide, soot,
non-burned oil particles, nitrogen dioxide).
Most of the cantons have already adopted and introduced this model decree
based on the standards of SIA 380/1, and the aim now is to work together with
the cantons to adapt it to the latest status of technology. The focus here is to
be on lowering the U-values and tightening up threshold parameters for heating
energy requirements, as well as on the promotion of renewable energies. For
example, one proposal that has been put forward is to demand that 20% of
heating energy requirements should be covered by the use of renewables. If a
developer does not want this, then he should be required to save this amount
by using more effective insulation. Another proposal involves drawing up
electricity consumption specifications for buildings in the services sector.
With the Programme of the Cantons for the 2nd Half of Energy 2000, adopted in
April 1996 by the Conference of Cantonal Energy Directors, cantons agreed on
strengthening their efforts in eight areas, including retrofitting in existing
buildings (already implemented in four cantons) and introduction of the
Recommendation SIA 380/4 related to the efficient use of electricity in public
buildings (already implemented in 14 cantons).
Consumption- At present, around 450 000 dwellings in Switzerland (out of a total of 1.2 million
Based that could be converted) use consumption-based heating cost allocation. It is
Heating and possible to achieve savings in heating energy of around 14% on average, even
Hot Water in times of low energy prices.
Cost Allocation
In its Energy Law, the federal government has only stipulated an obligation of
consumption-based heating cost allocation for new buildings. Cantons are
required to draw up corresponding provisions. However, they are at liberty to
introduce an obligation of consumption-based heating cost allocation for
existing buildings, and some of them have in fact done so, or are in the process
of doing so, even though house owners are against this.
Heating The project Operation of Building Infrastructure Systems of Energy 2000
Systems promotes the practical optimisation of the operation of heating systems by
encouraging all involved parties, from manufacturers to service engineers and
on to janitors, to use the existing energy saving potential of 10 to 15% through
correct operation and maintenance. More than 2 500 janitors have received
instructions. Energy 2000 check-ups for heating systems are available for
private house owners.
Technical The so-called impulse programmes RAVEL (Efficiency Use of Electricity),
Information PACER (Promotion of Renewable Energies) and IP-Bau (Maintenance and
Retrofitting of Buildings) came to an end in 1996.
The greater part of the educational material and documentation is being taken
over by professional organisations and, to some extent, by Energy 2000. It is
intended to improve continuously the training of specialists in the field of energy
in order to meet the constantly increasing practical demands. A new course
launched in 1995/96 in the field of household technology addresses
practitioners for the first time.
Management In the field of residential buildings, Energy 2000 has signed 120 partnerships
Partnership with property management organisations. Workshops provide target groups, for
example building caretakers and managers, with case studies in planning and
management of building renovation, thus emphasising their economic
advantages.
Low-Energy The project on ecological building methods is preparing the new standards of
Home tomorrow. Fifty pilot homes demonstrate that up-to-date technologies allow
buildings at competitive prices with a maximum consumption of energy for
2
space and water heating of 220 MJ per m per year, i.e. less than one-quarter
of the average consumption of a conventional modern house. Several banks
have offered to co-operate, making available “eco-credits” at reduced interest
rates. The cantons launched an initiative for the promotion of MINERGIE
standards and labels. According to this concept, heat consumption would not
2
be higher than 160 MJ/m per year without jeopardising comfort and
competitiveness.
The European Passive-house-Standards is entering the Swiss market.
Financial/ Since 1 January 1995, regulations on tax allowances for the costs of
Fiscal investments in existing private buildings for the efficient use of energy and the
Measures use of renewable sources have been revised, based on a Federal Ordinance.
Federal On 30 April 1997, the Federal Parliament launched an Investment Programme
Investment Energy 2000 aimed at creating employment, stimulating the economy and
Programme promoting sustainable development. The programme included SF 64 million to
be spent between 1997 and 1999 on subsidising private investments in energy
savings and renewable energies in the building sector. Owners must invest
more than SF 50 000 and subsidies amount to an average of 10% of the total
investment.
The Investment Programme Energy 2000 has been replaced by 23 cantonal
programme with the same focus and priorities (retrofit of dwellings). The
Federal Office of Energy supports the cantons with SF 9 million (2001).
PUBLIC SECTOR
Measures already
existing and/or
being improved
Energho Energho is an association of large energy-consuming public institutions. It
includes hospitals, cantonal and federal buildings. Its aim is to save 10% of
energy in ten years and to increase energy efficiency in public buildings through
Energy Performance Management, a voluntary commitment to save energy with
an action programme and targets, training and exchange of experience.
Energy In most cantons, municipalities are in charge of implementing the cantonal rules
Cities on buildings. In the framework of Energy 2000, the 47 municipalities labelled as
Energy Cities aim to serve as examples to reach the targets of SwissEnergy.
One of the purpose of SwissEnergy is to increase the number of Energy Cities
from 47 to 110 by 2005 (corresponding to an increase from 1.2 to 2 million of
inhabitants. The Energy City label will be improved to cover the regions and
expanded to the European level. The possibility to conclude agreements on
CO2 reduction at the municipal level will be considered.
Other Recommendations for the purchase and operation of electrical equipment have
Measures been addressed to employees of the federal administration to promote the
efficient use of electricity in federal offices.
Current measures to retrofit public buildings aim to save 50% of heating energy.
Evaluation of the results of these measures is being carried out over a two-year
period.
Energy concepts exist for the federal railways, the postal services (PTT) and the
Federal Office of Construction.
INDUSTRY
Measures already
existing and/or
being improved
Energy Since 1988 limited energy audits (only rough analyses) have been in place for
Audits industry. There are no financial or fiscal incentives to promote energy audits.
Voluntary The industry section of Energy 2000 focused its efforts on the “energy model”
Measures and the energy management course, which are more or less self-supporting.
The industrial partners of this section are: cement, pulp and paper, plastic
injection moulding and various chambers of trade and industry.
Around 120 large companies, for which the annual energy costs are over
US$ 100 000, representing 18% of the energy consumption of this sector, are
involved in voluntary actions which include sharing information about energy
savings. This section achieved between 15 and 30% of its objectives for 2000.
One of the measures introduced by SwissEnergy is the development of
voluntary agreements signed between the Federal Office of Energy and energy
producers and users which are applicable to the use of energy in vehicles,
buildings and electric appliances (see above: Law on CO2).
To strengthen the voluntary measures, SwissEnergy set up several Agences de
l'Energie (Energy Agencies) to intensify information dissemination on energy
efficiency among the public and those working in the energy sector.(see above:
Energy Agencies in the Framework of SwissEnergy).
TRANSPORT
Measures already
existing and/or
being improved
Fuel In December 1995, the federal government issued an Ordinance on the
Consumption Reduction of Specific Fuel Consumption for Passenger Cars. This Ordinance
Target sets an objective for car importers of a 15% reduction in specific fuel
consumption of new cars between 1996 and 2001. The Ordinance also
establishes the technical and organisational procedures for monitoring progress
in reaching the target. If car importers do not reach this target within the
prescribed time, the government is entitled to adopt other measures such as a
regulation on the fuel consumption of new cars.
Energy Within the national Energy 2000 Action Plan, several projects and programmes
Saving to increase energy efficiency in passenger and freight transport have been
Programmes sponsored by the government, with an annual budget of around SF 6 million,
co-financed by the private sector. These actions were started in the early
1990s and continued through 2000.
Examples of such programmes are:
• Eco-Driving. Several actions and simulation techniques promote an eco-
efficient driving style, mainly for captive fleets. Individual measurements
showed an energy saving potential of 10-15%.
• Car-Sharing Initiative. Drivers rent cars and pay the company according to
hours of use and distance travelled. About 30 000 members of the Swiss
co-operative Mobility CarSharing have some 1 200 cars at their disposition
located throughout 700 sites. Thanks to modern reservation systems,
members can conveniently reserve the car of their choice from home
(telephone, Internet) 24 hours a day. Cars are shared by individuals and by
business users. A survey for the Swiss Department of Energy showed that
an average co-operative member drives less than 1 000 kilometres a year,
which is about a quarter of the average distance covered by a family-owned
car. The federal government considers that many people are interested
and that there is a large savings potential.
It is planned in the SwissEnergy programme to develop the combined transport
system through a combination of improved individual transport and public
transport, as well as in daily transport and in leisure transport.
SwissEnergy has decided to increase the possibilities of combined traffic, such
as the development in railways stations of greater interaction between individual
and public transport for daily or holiday transport.
Transport New transalpine railway axes
of Goods
In September 1992, the Swiss electorate accepted a Federal Decree to build
two new Alpine tunnels through the mountains of Gottard (57 km) and
Lötschberg (36 km via the Simplon axis). The new tunnels aim at doubling rail
transit capacity to 70 billion tonnes a year and to speed up transit between
northern and southern Europe. Total cost is expected to amount to more than
SF 15 billion. This would allow implementation of the measures requested in the
April 1994 referendum, which requests a shift of total transalpine truck traffic
(from border to border) from road to rail within ten years.
New taxation on heavy goods vehicles
In February 1994 the Swiss electorate accepted a new article at the
constitutional level enabling the national government to introduce a new
distance and weight dependent charge on heavy goods vehicles (above
3.5 tonnes total weight) to replace the existing flat rate tax. Based on this
article, a law was adopted introducing a new tax on such trucks. This tax is
related to distance and weight and aims at internalising the full cost of freight
transport (infrastructure costs, noise accidents, damages to buildings and
health). This was accepted by a referendum in September 1998. A maximum
charge will be set which will increase from SF 0.016 km-tonne in 2001 to
SF 0.03 in 2005. In the second vote of 29 November 1998, the financing
scheme for the four large railway investment programmes (new transalpine
axes, Railway 2000, connections to the European high-speed network, noise
protection) was also adopted by the Swiss electorate. One-third of the tax
revenue will be given to the cantons; the remaining will be used by the
Confederation for investments in rail infrastructure.
In the 1999 in-depth review of the energy policies of Switzerland, the IEA
stated:
The Swiss government should:
• Develop public transportation systems and increase their use. Strengthen
co-operation between administrations involved in energy policy and those
involved in transport policy.
MONITORING/ The federal government, as well as the cantons, places particular importance
ASSESSMENT on the need to monitor carefully and regularly and evaluate all the energy
efficiency programmes and measure under their responsibility. The measures
that have been taken are periodically evaluated to increase their effect and to
encourage the learning process for all participants. The reports entitled
Programme Energie 2000, 9ème rapport annuel 1999, année sous revue, juillet
1998--juin 1999, and Programme Energie 2000, Rapport final et 10ème rapport
annuel, Juillet 1999-Décembre 2000 were published by the Federal Department
of Environment, Transport, Energy and Communication. They provide a
detailed examination of the progress made in implementing Energy 2000,
assesses the degree of realisation of its different objectives and analyses the
expected results for each energy consuming sector both from the energy
efficiency and environmental points of view.
In the 1999 in-depth review of the energy policies of Switzerland, the IEA
stated:
The Swiss government should:
• Improve the review of the cantons’ energy policies. Promote co-operation
among cantons.
Further For further information, please contact:
information
Nicole Zimmermann
Office fédéral de l'énergie OFEN
CH – 3003 Bern
Tel: +41 (31) 322 56 04
Fax: +41 (31) 323 25 00
E-mail: nicole.zimmermann@bfe.admin.ch
TURKEY Updated August 2002
BACKGROUND Every five years the State Planning Organisation (SPO), with the assistance of
expert organisations from all sectors, including the energy sector, prepares a
Development Plan. The most recent Development Plan is the Eighth Five-
Year Development Plan for the period 2001-2005. After approval by the Board
of Ministers the Plan was published in the Turkish Official Gazette in 2000.
Energy policy objectives, largely unchanged from previous plans, are as
follows:
· To ensure sufficient, reliable and economic energy supplies in order to
support economic and social development.
· To maintain security of energy supply.
· To encourage sufficient investments to meet growing energy demand.
Within the Eighth Five Year Development Plan, the specific measure
(No. 1823) on energy efficiency reads as “with a view to control and reduce
the greenhouse gas emissions originating from transport, energy, industry and
settlements, arrangements shall be made towards increasing energy
efficiency and ensuring energy saving”.
Energy efficiency is considered to be the cheapest energy source. According
to estimates of the National Energy Conservation Centre (NECC), established
in 1992 as part of the Electric Power Resources Survey and Development
Administration (EÝE) within the Ministry of Energy and Natural Resources
(MENR), potential gains through increased energy efficiency are substantial.
Several government entities are directly or indirectly involved in energy
conservation issues and activities. Besides the EÝE/NECC, these include the
State Planning Organisation, the Ministry of Industry and Commerce, the
Ministry of Reconstruction and Resettlements, the Scientific and Technical
Research Council, the Ministry of Public Education and the Turkish Standards
Institute. The EÝE/NECC’s energy conservation activities concentrate on end-
use sectors .
Energy and The overall objectives of energy-related environmental policies in Turkey are
Environment to ensure sufficient, reliable and economic energy supplies to support
sustainable economical and social development while protecting and
improving the environment.
Energy and environment issues are addressed both in the National
Environmental Action Plan (1998) and in the National Agenda 21 (2001),
which are the most recent environmental policy documents. Policies regarding
energy efficiency and clean energy technologies are articulated among others.
The country’s environmental policy considers that energy policy should take
into account environmental problems and that a balance should be found
between increases in energy demand necessitated by economic development
and environmental concerns.
Although Turkey was a Member of the OECD in 1992 when the UNFCCC was
adopted (and as such was included among the countries of the Convention’s
Annexes I and II), it is still not fully industrialised. On the basis of this
argument, Turkey refrained until recently from being a party to the UNFCCC,
and requested to be deleted from the Annexes of the Convention. It was been
decided in COP7 in Marrakech in 2001 to remove Turkey from the Annex II list
and recognise its special circumstances as an Annex I Party. UNFCCC is
expected to be ratified soon in the Turkish Grand Assembly.
1
This fairly new position of Turkey will bring her some advantages, including
the introduction of foreign investments for energy efficiency and clean
technology projects through joint implementation, as well as emission trading.
Although Turkey has agreed in principle for a long time that it will attempt to
limit emissions, it has so far not developed a mandatory greenhouse gas
abatement strategy. For this reason, there are no specific greenhouse policies
such as carbon taxation or emissions trading schemes. Nevertheless, there
are policies, actions and other measures known to be already under way,
even if most of them are undertaken for local and economic reasons.
In the 2000/2001 in-depth review of the energy policies of Turkey, the IEA
stated:
· To reflect its respect for the spirit of the United Nations Framework
Convention on Climate Change (UNFCCC), Turkey should continue
striving to limit the growth of greenhouse gas emissions, and where
possible take additional measures. In particular, the government should
develop an implementation strategy that allows it to assume a greenhouse
gas emissions target no later than the second commitment period of the
Kyoto Protocol.
General energy and electricity planning studies are being carried out using the
Model for Analysis on Energy Demand (MAED) and the Wienn Automatic
System Planning Package (WASP) Models. To determine the environmental
impacts of these studies, a joint project supported by the World Bank with
Argonne National Laboratory/US Department of Energy aims at designing a
new energy and environment model for Turkey. Studies on this project are still
on-going and are expected to be finalised soon. Within this framework,
different kind of scenarios will be set up to mitigate the emissions arising from
energy.
In the 2000/2001 in-depth review of the energy policies of Turkey, the IEA
stated:
The Government of Turkey should:
· Increase the resources for the Ministry of the Environment and strengthen
collaboration with the Ministry of Health on air quality issues.
· Continue harmonising standards and regulations for environmental quality
with those of the EU and other international bodies.
Institutional The Ministry of Energy and Natural Resources (MENR) is the main
Framework organisation which is responsible for formulation and implementation of
general energy policies. The State Planning Organisation (DPT) also takes
energy efficiency policies into account in drafting the national plans.
The General Directorate of Electrical Power Resources Survey and
Development Administration (EÝE), one of the major organisations under the
auspices of MENR, has been involved in implementing energy conservation
programmes and in assisting MENR to develop the related policy. A new
department, Energy Resources Survey Department (DERS), within EÝE was
established by the approval of the Ministry of Energy and Natural Resources
(MENR) on March 31, 1981, to conduct studies on energy efficiency and new
and renewable energy resources. DERS was entrusted by MENR in
December 1992 with the responsibility to act as National Energy Conservation
Center (NECC) to enhance the activities on improving energy efficiency in all
end-use sectors and promoting the use of solar and wind energies.
2
On the other hand, the Energy Conservation Co-ordination Board (ECCB)
consisting of representatives of related ministries, governmental organisation,
private sectors, universities and associations, which was established by the
Prime Minister's Office on 9 April 1981, commenced its activities to promote
public awareness of energy conservation following the second oil crisis. The
Energy Conservation Co-ordination Board (ECCB) carries out activities such
as organising the annual Energy Conservation Week and contests for
students to increase public awareness. The Board has functioned under the
supervision of the General Directorate of Energy Affairs of MENR since the
beginning of the 1980s. Last year supervision of ECCB was transferred to
EÝE/NECC by MENR.
The public sector budget for improving end-use efficiency is small and deals
mainly with NECC’s expenditures on studies, energy audits, publications and
professional training. NECC also benefits from international loans and
expertise. ECCB is in charge of public campaigns on energy savings.
In the 2000/2001 in-depth review of the energy policies of Turkey, the IEA
stated:
The Government of Turkey should:
· Consider enacting appropriate energy conservation laws and establish or
tighten efficiency standards for industrial boilers and electric motors.
Increase the resources of energy efficiency organisations.
RESIDENTIAL/
COMMERCIAL
Measures already
in place and/or
being improved
Heat In the residential/commercial sector, more than 80% of the energy consumed
Insulation is for heating. According to an EÝE study carried out in 1997 based on
Standards questionnaires, energy use per unit of building area could be reduced by
nearly half by applying to all buildings the new Heat Insulation Standards on
building envelopes, issued in 1999 and effective in June 2000. (See below.)
In 1985, Turkey adopted mandatory standards for heat insulation in new
buildings. However, heat losses in new buildings have been estimated at over
2
200 kWh/m , a high level compared to average losses in Europe.
Revision of the Standard for Heat Insulation in Buildings was finalised in April
1998 and issued by the Turkish Standards Institute. This new insulation
standard and supporting regulation introduced in June 2000 makes it
2
mandatory to reduce heating requirements by 100-150 kWh/m a year,
according to the four degree-day regions of the country. The existing building
stock is increasing at an average rate of 5% annually. It is expected that a
50% improvement in energy efficiency in new buildings will be achieved.
For existing buildings, a code was developed by EÝE/NECC with the
participation of various governmental organisations and private sector
companies and submitted to MENR in July 2001. It is now under
consideration in the Ministry.
Boilers Boilers and stoves using wood, coal or fuel oil need a certificate based on a
and Stoves test of heat efficiency. The heat efficiency certificates are issued jointly by the
Ministry of Industry and Trade and the Turkish Standards Institute. Products
not having this certificate cannot be marketed.
3
Information EÝE/NECC has been conducting various kinds of promotional studies. In this
context, approximately 60 publications were published (Industrial Energy
Management Course Book (four parts), Series of Technical Tips, Technical
Manuals are a few that can be mentioned). The technical manual is the most
popular publication; it was also used in the universities as a source book for
energy management lectures. These publications have been distributed to
individuals and industrial establishments at their request at a reasonable cost.,
Videos and posters were also prepared and distributed nation-wide by
EÝE/NECC free of charge. Moreover, various national and international
seminars, conferences, and workshops have been organised, mainly co-
ordinated by EÝE/NECC. One of the recent main energy conservation
awareness activities of EÝE/NECC is energy conservation project contests in
industry run over the last two years. Successful Energy Conservation Project
Awards have been presented to the winners by the President and the Minister.
Last year the theme of the Project Award was “The successful case in
Cogeneration”. Awards were presented by Ministers on 23 May 2002.
Every year for the past 20 years, energy conservation week activities have
been organised by ECCB, MENR and EÝE/NECC. These activities cover
various contests among schools, and seminars and conferences related to
energy conservation in different sectors. At the 2002 Energy Saving Week, in
January, the Board organised television programmes on energy efficiency.
ECCB meets every month and prepares plans for activities with the aim of
increasing public awareness of energy conservation. In 2002, the Turkish
radio and television organisation will prepare six TV spots on energy efficiency
subjects with the financial support of some private sector associations,
members of the Board. Contests on painting, essay and projects on energy
conservation for primary and high schools have also been organised over the
last ten years with the co-operation of the Ministry of National Education. The
awards for the winners were distributed at the Energy Conservation Week by
the Ministers of National Education and Energy and Natural Resources.
In 2001 a seminar programme was initiated by EÝE/NECC for primary and
high schools. Every year, seminars on energy conservation and efficiency in
heat and electricity consumption have been organised in several schools
Seminars are also run at public institutions at their requests.
The publications and posters on energy conservation in the buildings sector
prepared by EÝE/NECC are distributed at the conferences, meetings and
seminars.
In addition, an Internet link has been established to facilitate the flow of
information between the energy managers of the plants and EÝE/NECC.
Measures under
Consideration
Energy Survey During 1998 and 2000, in Cupertino, a study was carried out by the State
Statistical Institute (SSI) on the analysis of energy consumption in residential
buildings in all geographical regions of Turkey. In this project, a representative
sampling method was used and energy consumption analysed in terms of fuel
and electricity, the insulation status, heating systems and the structural
properties of the residential buildings. SSI evaluated the statistical data
collected and the report was submitted to EÝE in 2001.
On the basis of a survey of 11.5 million residential buildings in Turkey, 10% of
the buildings are provided with roof insulation while 9% with double-glazing.
Therefore, for the purpose of improving energy efficiency in buildings utmost
priority has been assigned to legislative measures.
4
Energy Under the co-ordination and supervision of EÝE/NECC, and with the
Labelling/ participation of representatives of the related manufacturers and public
Standards organisations, working groups have been set up on energy efficiency of
household appliances, air conditioners and lightning. The related analytic
work reveals that new regulations are needed to increase energy efficiency for
the afore-mentioned equipment. In this context, studies to prepare energy
efficiency labelling standards and regulations for electrical appliances have
already been initiated by the Turkish Standards Institute and the Ministry of
Industry and Trade within the framework of the Harmonisation Programme for
EU legislation. Regulation on energy efficiency labelling for refrigerators was
issued on 24 March 2002. The other labelling regulations related to washing
machines, dryers, dish washers and lamps have been prepared and should
soon be published by the Ministry of Trade and Industry.
The energy efficiency regulation for outdoor (street) lighting is under review.
In the 2000/2001 in-depth review of the energy policies of Turkey, the IEA
stated:
The Government of Turkey should:
· Enhance Turkey's participation in international co-operation programmes
on energy efficiency, in particular on efficiency standards and labels for
household appliances and motor vehicles.
Subsidies In the 2000/2001 in-depth review of the energy policies of Turkey, the IEA
stated:
The Government of Turkey should:
- Consider establishing fiscal and economic incentives for conservation
measures in all sectors.
INDUSTRY
Measures already In a 1996 study, EÝE/NECC assessed the potential for energy conservation in
in place and/or industry at 4.2 million toe (nearly 24% of industrial energy use that year) and
being improved an approximate cash value of $1 billion/year. The total investment required to
achieve this conservation potential would be close to $2.3 billion. The payback
period for these investments would range from a minimum of one year to a
maximum of three years. The measures required to bring these savings about
would include the adoption of various forms of waste heat recovery, increased
use of co-generation of electricity and heat/steam, and the use of more
efficient boilers.
Energy Since 1990, EÝE/NECC’s Energy Audit Teams have been conducting energy
Bus audits (the Energy Bus Programme) in various plants of the Turkish industrial
Programme sector with vehicles equipped with the appropriate measuring equipment. The
surveys, of approximately one week duration, have usually been carried out
by teams of three engineers in the factories. The main objectives of the
energy audits focused on creating energy conservation awareness in industry
-- assisting the establishment of energy management units and identifying
energy efficiency projects in their plants, making surveys and compiling data
to identify the energy saving potentials of sectors and industry as a whole.
The Energy Bus Programme, carried out at the pre-audit level, consists of
following stages:
· Receiving application from the factory.
5
· Pre-visit to the plant.
· Confirmation of the study.
· Data collection and measurement.
· Data analysis and energy conservation projects identification.
· Pre-audit report submission
Up to date energy audits were conducted at approximately 70 plants both by
NECC team and foreign consultant firms. Fifteen plants were visited in the
food, textile and iron-steel sectors in the 2001-2002 period.
Moreover, TUBİTAK (the Scientific and Technical Research Council of
Turkey) has conducted detail energy audits in different sectors. In recent
years, TUBİTAK carried out approximately ten energy audits in energy
intensive industry such as the cement and iron and steel sectors with the co-
operation of Istanbul Technical University.
Training Under the NECC Training Bus Programme initiated in 1993, approximately
Bus 700 engineers had already been trained by the end of 2000 in energy
Programme efficiency subjects such as insulation, boiler house combustion, electrical and
steam systems. Seminar notes and technical manuals were prepared.
Energy To increase energy efficiency in industry, MENR issued a Decree in
Management November 1995, providing for non-mandatory measures concerning industrial
plants, i.e. private and public enterprises, including mining which consumes
more than 2 ktoe of energy per year, with the aim of establishing an energy
management organisation within the plant:
· The largest consuming plants should nominate an Energy Control
Committee; smaller plants should nominate an Energy Manager.
· The managers of these plants should complete energy audits within three
years. The results of the audits should be submitted to NECC.
· These plants should take the measures, adapted in co-operation with
NECC, to improve energy efficiency during operations and to take into
account this objective when the plants are expanded or modernised.
· The plants should monitor the results of the measures and report annually
to NECC on the evolution of energy savings for the plant’s three main
products.
· NECC will either organise professional training or give authorisation to
organisations for training at these plants.
Thus, NECC organised Energy Management courses in 1997 and authorised
three organisations in İzmir, Istanbul and Eskişehir to extend these courses
nation-wide. To date, nearly 457 engineers from different industrial sectors
have been trained as energy managers in the courses organised by EÝE
and/or other authorised organisations. Furthermore, Energy Management has
been included in the curricula of the engineering faculties of some universities.
According to the regulation, approximately 500 out of a total of 600 plants
have appointed energy managers. To date, energy management courses
have been organised in the iron and steel, arc furnaces, paper, cement,
textile, fertilizer, food, ceramic and non-ferrous metal sectors by both NECC
and the three authorised organisations. A total of 457 energy managers have
completed these courses. Energy managers have started to monitor specific
energy consumption in their plants.
A project was started in August 2000 in co-operation with NECC and JICA to
establish a new training centre with a model plant for energy conservation.
The construction and installation of the training centre and model plant has
been completed and NECC’s personnel trained to operate the model plant.
The training centre started its activities in October 2001. It is planned that
6
most energy managers will be trained over a five-year period through this
project. It is expected that the programme will increase energy efficiency by
10% throughout Turkish industry by 2010.
The Energy Conservation Training Center was established as an integral part
of EÝE/NECC within the scope of the Energy Conservation Project, carried
out jointly by JICA and EÝE/NECC since August 2000. It provides training
programmes, not only Turkish industry but also to neighbouring countries. The
first international energy managers course was held in Cupertino with UN-
ESCAP on 4-14 June 2002 for participants from central and west Asian
countries.
In the 2000/2001 in-depth review of the energy policies of Turkey, the IEA
stated:
The Government of Turkey should:
· Expand energy auditing programmes for industry, commercial enterprises
and homes, information campaigns and training of energy managers.
· Promote the formation of energy service companies to invest in such
opportunities.
DSM Some publications on electrical energy savings have been prepared and a
regulation on day and night electric tariffs in residential sector issued.
Combined At present, 113 auto-producers, mostly co-generation plants in industry,
Heat and generate an annual power output of 18 billion kWh which constitutes 14% of
Power total electricity production with an installed capacity of 3 350 MW. Applications
for auto-producer plants with a total installed capacity of 8 750 MW have been
received by MENR.
The “Electricity Market Law” (Law No. 4628) came into effect on 3 March 2001
for the purpose of unbundling, generation, transmission and distribution
activities and to ensure progress towards a liberalised electricity market within
the framework of fair, transparent and non-discriminatory market conditions.
Through the latest reforms, the power sector will soon undergo much more
profound reform than ever before, leading to the introduction of competition
and increasing private involvement. Within the framework of the Law, auto-
producers are being considered and encouraged.
Database In 1995, EÝE gave technical assistance to the State Statistical Institute (SSI)
Survey during the establishment of the Institute's energy statistics division. With the
purpose of monitoring energy consumption in the industrial sector, a project
was initiated in Cupertino with SSI and SPO to compile a new data base
system for information on plants consuming annually 500 toe or more energy.
Evaluation of the information for the period 1995-1998 has been finalised and
the results published by SSI. The evaluations for the years of 1999 and 2000
are under way.
A comprehensive industrial data base survey has been launched by NECC in
co-operation with SSI to define energy consumption, energy saving potential,
the energy management approach and systems and technical infrastructure in
the industrial sector such as boilers, motors and furnaces. Within the scope of
this study, questionnaires were sent to 1 300 manufacturers who consume
more than 500 toe of energy. The first data collection for 1995 was published
at the end of 1997. The survey will provide the data necessary for the
elaboration of energy efficiency indicators for the industrial sector.
7
PUBLIC SECTOR
Government In accordance with the circular entitled Measures to be taken by
Buildings Governmental Organisations and Institutions in order to reduce their energy
consumption issued by the Prime Minister, all governmental organisations
have prepared annual reports on energy consumption in their buildings.
These reports were sent to EÝE/NECC by the Ministry and evaluated by
NECC. These studies will also continue for the next few years. In 1999,
information concerning 2 037 governmental buildings was evaluated.
According to the evaluation results, the energy consumption of these buildings
was very high (more than 250 kWh per square metre); 48% of them have
double-glazing and 40% have roof insulation. For the next heating season, a
training seminar was organised in Ankara in September 2001, co-ordinated by
MENR and EÝE/NECC, for governmental buildings. Similar seminars are
planned for the other regions of Turkey in the coming years.
Another project will soon be started in co-operation with the German Technical
Organisation (GTZ), the Erzurum Municipality and EÝE/NECC. The duration
of this project will be three years. Its aim is to enable municipal authorities as
well as users of public and private buildings to take measures designed to
reduce the use of energy in buildings. Implementation of the project will be
realised in Erzurum and studies related to standards, regulations and training
will be carried out in Ankara.
TRANSPORT
Measures already
existing and/or
being improved
Vehicle In 1992, the Ministry of Environment issued a regulation providing for
Testing emissions testing for cars, trucks and vans. The regulation imposes penalties
for non-compliance with the maximum emissions allowed. Emissions testing
is mandatory for the sale of used vehicles. However, this testing does not
include any energy efficiency control.
Road The first stage of Ankara’s subway was inaugurated in September 1996 and is
Transport now being expanded. Another subway is also in use and additional lines are
being built in Istanbul.
Railway The government plans to increase the number of modern locomotives and the
length of electrified rails. It also plans to increase the operating efficiency of
the public railway company and to reduce its losses.
Measures under
Consideration
Energy A statistical survey of energy consumption patterns in the transport sector for
Survey 1998 was carried out by the State Statistical Institute in Cupertino together
with EÝE/NECC. The final report was submitted to EÝE in 2001.
MONITORING/ In the 2000/2001 in-depth review of the energy policies of Turkey, the IEA
ASSESSMENT stated:
The Government of Turkey should:
· Closely monitor energy supply and demand and revise the forecasts to
take account of the progress of liberalisation, energy efficiency
improvements, structural changes in industry and other major factors in
order to better inform all players' investment.
8
Although, there is not yet a regular or systematic nation-wide energy efficiency
monitoring system in Turkey, certain statistical studies have been carried out
by EÝE/NECC and SIS to analyse energy consumption patterns in sub-
sectors.
Industrial energy consumption surveys covering about 1 200 industrial
establishments were conducted by SIS in Cupertino, together with
EÝE/NECC, in the years 1995, 1996, 1997 and 1998. The results of the
survey reveal that the total amount of energy consumed by the establishments
with an annual energy consumption of 500 TEP and over, constitutes nearly
75% of the total energy consumption in the industrial sector. Results of the
studies are also used to assess industrial energy efficiency potential.
For several reasons it is very difficult to estimate accurately the amount of
energy savings achieved. The main reason is the very large fluctuations
occurring in the number of industrial establishments and capacity utilisation
rate observed in recent years.
However, EÝE/NECC has developed an Energy Managers Database based
on the regulation issued in November 1995 (Measures to be taken to Increase
Energy Efficiency in Industrial Establishments). The database has been used
to follow up energy management activities in industrial establishments.
Compared to the situation in 1997, it has been observed that almost all
industrial establishment have taken measures for energy conservation and
realised the projects; in addition, energy efficiency targets have been defined
for particularly large industrial establishments for the coming years.
At the end of 1997, a nation-wide statistical study for the analysis of energy
consumption in residential buildings was implemented by SIS. It is envisaged
that the consolidated data from the survey would be used to assess the
energy efficiency status in the building sector.
In pursuance of the circular issued by the Prime Minister's Office in November
1997, all government organisations are obliged to prepare annual reports
regarding energy consumption of their premises and to transmit these reports
to the Ministry of Energy and Natural Resources. These reports are then
forwarded to EÝE Administration by the MENR for evaluation. The review and
evaluation studies, performed by EÝE/NECC, will continue in the future.
Further For further information, please contact:
information
Ms. Tulin Keskin
Industrial Energy Conservation Division Manager
EÝE/National Energy Conservation Center
EÝE Gen.Müd.Eskisehir Yolu
06520 Ankara
Tel.: +90 (312) 28 784 51
Fax: +90 (312) 28 692 84
E-mail: tkeskin@eie.gov.tr
9
Energy
IEA Efficiency
Update
Updated March 2003
UNITED
KINGDOM
BACKGROUND The United Kingdom met its commitment under the UN Framework
Convention on Climate Change (FCCC) of returning emissions of CO2 and
other greenhouse gases (GHG) to 1990 levels by the year 2000.
Energy At the Third Conference of the Parties (Kyoto, December 1997) the European
and the Union as a whole agreed to reduce the emissions of a basket of six gases by
Environment 8% from 1990 levels by the period 2008-2012. In June 1998, the European
Union Council of Environment Ministers reached a Burden-Sharing Agreement
on emission reduction commitments to re-allocate internally the 8% reduction
agreed at Kyoto. The reduction commitments are expressed as a percentage
of 1990 levels for the 2008-2012 period. Under the Burden-Sharing
Agreement, the UK is committed to reducing its emissions by 12.5%. The
government has also set itself a challenging domestic target to reduce CO2
emissions to 20% below 1990 levels by 2010.
The UK signed the FCCC at Rio de Janeiro in 1992 and submitted its first
national communication in February 1994. In compliance with the FCCC
obligations, the UK’s second and third national communications were
published in February 1997 and October 2001 respectively. Following a period
of consultation with a wide range of stakeholders, the UK government,
together with the devolved administrations, published the UK Climate Change
Programme in November 2000. Further details on the final version can be
found at http://www.defra.gov.uk/environment/climatechange/cm4913/index.htm
The third national communication reports on the progress made to implement
policies to reduce emissions, and with policies to adapt to the impacts of
climate change. It provides additional information about the financial
assistance that the UK provides to developing countries, and the leading role
that the UK has been taking on research and systematic observation.
UK Climate The UK Climate Change Programme aims to:
Change
Programme • Deliver the UK’s legally binding target under the Kyoto Protocol. The
policies and measures that it sets out could cut greenhouse gas emissions
by an estimated 23% below 1990 levels by 2010. This means that carbon
dioxide emissions alone could be reduced by an estimated 19% below
1990 levels by 2010. Together with policies whose impact has not been
quantified, the measures could also achieve the domestic goal.
• Set out a package of cost-effective, flexible policies and measures in which
all sectors of the UK’s economy play their part. The package aims to
safeguard and enhance the UK’s competitiveness and deliver wider
benefits through lower energy costs for businesses and people, as well as
through less fuel poverty, improved air quality, reduced risk to health, and
new business and export opportunities.
• Respond to the need for action to cut emissions in the longer term (beyond
2010) by putting in place policies that give clear signals about the changes
that will be required.
Planned measures relating to energy efficiency are summarised below and
described in detail in the text on specific sectors.
Key elements of
the UK Climate
Change Strategy
Industry The following actions have been taken; for more information, see below under
Issues Industry.
1
• The Carbon Trust was established in April 2001 as a non-profit organisation
to lead on business and public sector energy efficiency and support the
creation of a low carbon economy in the UK. The Carbon Trust now
manage the non-domestic part of the old Energy Efficiency Best Practice
programme re-launched as Action Energy. Action Energy provides energy
efficiency advice and support to business and the public sector.
• The Climate Change Levy (CCL) effective from 1 April 2001 aims to
encourage energy efficiency and help meet the United Kingdom's targets to
reduce GHG emissions.
• The Climate Change Agreements between energy-intensive sectors of
industry and the Secretary of State are a new policy mechanism for
achieving environmental objectives.
• The Enhanced Capital Allowances Scheme introduced on 1 April 2001
gives 100% capital allowance in the first year for investments in any of the
technologies in the published list.
Buildings The UK Climate Change Programme related to the residential/commercial
Issues sectors includes the following issues:
• A review and tightening of the energy efficiency requirements in the
Building Regulations (Part L).
• Enhancements to the Standard Assessment Procedure (SAP) as a rating
tool for housing.
• Input to the development of the proposed EU Directive on the Energy
Performance of Buildings.
• New Home Energy Efficiency Scheme (Warm Front).
• Public Sector Targets.
• Energy Efficiency Commitments.
All these policies and measures will be dealt with below under the sections
Residential/Commercial and Industry.
Transport The UK Climate Change Programme aims at cutting emissions from the
Issues transport sector through:
• The UK Powering Future Vehicles Strategy, which sets the framework for
promoting the development, introduction and take-up of low carbon
vehicles and fuels.
• European-level agreements with car manufacturers to improve the average
fuel efficiency of new cars by at least 25% by 2008-2009, backed up by
changes to vehicle excise duty and the reform of company car taxation and
better information for consumers to encourage the purchase of more fuel-
efficient vehicles.
1
• Transport 2010, the 10 Year Plan: £180 billion of investment and public
spending on transport over the next ten years to cut congestion and reduce
pollution (see below under Transport)
Performance and On 25 June 2001, the government announced that the Performance and
Innovation Innovation Unit (PIU), attached to the Cabinet Office, was to carry out a review
Unit (PIU) of the strategic energy policy issues for Great Britain. The review was set
Review within the context of meeting the challenge of global warming, while ensuring
secure, diverse and reliable energy supplies at competitive prices. The main
aim of the review was to set out the objectives of future energy policy and to
develop a strategy that ensures current policy commitments are consistent
with longer-term economic, environmental and social goals. The review
considered the role of coal, gas, oil and renewable sources of energy in the
UK’s future energy balance as well as combined heat and power and the
enhancement of energy efficiency. The review also considered what role, if
any, the nuclear industry should play in meeting the objectives of the
1
On average in 2001, £1 = US$ 1.441.
2
environment and security of supply.
The project’s findings are expected to greatly influence the government’s
future policy on security and diversity of energy supply and on climate change.
The PIU Review Team reported to the Prime Minister at the end of 2001, and
the PIU review was published in February 2002.
The PIU project stated three main energy policy challenges and attempts to
develop ways of addressing these. The government also underlined that
competitive markets will continue to be central to energy policy. The three
challenges are:
• Managing potential conflict between energy and environmental objectives.
Meeting the long-term targets for emissions reductions, whilst ensuring
future projections for energy demand are met, is thought to require
fundamental changes in energy and fuel markets, the management of
energy demand, the development of new technologies, infrastructure and
policy.
• Ensuring continued security and diversity of energy supplies over the long-
term including ensuring appropriate investment incentives to maintain
sufficient spare capacity to be able to cope with supply shocks, especially
within the regulatory regimes for the energy utilities.
• Managing potentially conflicting policy goals for energy prices. Whereas
higher energy prices could be a potent instrument for advancing
environmental objectives, they are in potential conflict with fuel poverty and
industrial competitiveness objectives (see below).
The review put forward a programme to accelerate the UK’s energy efficiency
improvements. At its centre was the suggestion of a challenging new target to
improve domestic consumers' energy efficiency by 20% between 2002 and
2010, and by a further 20% between 2010 and 2020. This would approximately
double the existing rate of improvement. The gains in terms of energy savings
in a year could reach about 0.25% of GDP by 2020, over and above the cost of
the investment needed to unlock these savings.
See http://www.cabinet-office.gov.uk/innovation/2002/energy/report/index.htm
for further details on the PIU report.
Energy White In response to the PIU report, a public consultation was launched to consider
Paper - Our the issues raised and help inform the development of a new energy strategy
Energy Future – for the UK, the Energy White Paper. This consultation, which closed on
Creating a Low 13 September 2002, received submissions from over 6 500 individuals and
Carbon Economy organisations The White Paper was published on 24 February 2003 and is the
first comprehensive, forward-looking statement of energy policy in the UK for
over 20 years.
A major underlying theme of the White Paper is the need for the country to
move towards a low carbon economy. To this end, the government has
accepted a recommendation made in the Royal Commission on Environmental
nd
Pollution’s (RCEP) 22 report in 2000 that the UK should put itself on a path to
a reduction in carbon dioxide emissions of some 60% from current levels by
about 2050, with real progress by 2020. (A formal response to the RCEP
report was published alongside the White Paper.) Other key messages
relating to energy efficiency in the White Paper include:
• Energy Efficiency will have a key role to play in achieving the UK’s carbon
reduction goals. The government expects more than half the emissions
reductions in the existing Climate Change Programme – around 10 MtC per
annum by 2010 – to come from energy efficiency. Further ahead, the
government believes that energy efficiency can contribute around half of
the additional 15-25 MtC savings likely to be needed by 2020.
3
• The current Energy Efficiency Commitment (EEC) runs until 2005. The
government will consult on an expansion of the EEC to run from 2005 to at
least 2008, possibly at twice its current level of activity. A possible
extension of the EEC beyond the domestic sector will also be considered.
• The government will continue to work with the English Fuel Poverty
Advisory Group to find the most effective ways to deliver the Fuel Poverty
Strategy objectives, including the target that no household in Britain should
be living in fuel poverty by 2016-2018.
• The government remains committed to a target of 10 GWe of good quality
combined heat and power being installed by 2010. Further measures will
also be introduced to help address the current market difficulties and
support the achievement of our target.
• The government will strengthen its analytical and strategic capabilities in
the field of energy policy to ensure that the aims it has set out in the White
Paper are delivered. This will be achieved through the establishment of a
Sustainable Energy Policy Network (SEPN) of departmental policy units.
The Department of Trade and Industry (DTI), the Department of
Environment, Food and Rural Affairs (Defra), the Foreign and
Commonwealth Office (FCO), Treasury, Office of the Deputy Prime
Minister (ODPM), the Department of Transport (DfT) and the Devolved
Administrations are all likely to be involved in this network.
See http://www.dti.gov.uk/energy/whitepaper/.
RESIDENTIAL/
COMMERCIAL
Measures already
Existing and/or
Being improved
Building Minimum legal requirements for the energy performance of new buildings have
Regulations been in force since 1965, with the standards tightened regularly every few
years. The current building regulations, which came into force in July 1995,
raised the minimum standard so that new buildings must be 25-35% more
energy-efficient than before.
In January 1998 the government commissioned a further comprehensive
review to explore the practical possibilities of regulating the existing stock of
buildings, as well as further improving standards for new construction. Special
consultation procedures were set up in order to involve all parts of the industry
and energy activists throughout the review process.
Proposals for revisions to the regulations were published in June 2000 for
further consultation. As a result, the government laid down the Building
(Amendment) Regulations before Parliament on 11 October 2001 (SI 2001 No
3335); the accompanying Approved Documents L1 and L2 that give guidance
on ways of meeting the requirements were published on 31 October 2001.
These changes came into effect on 1 April 2002. The new Regulations form
an important part of the Climate Change Programme and include a number of
enhanced features. New dwellings will be required to meet improved
standards of insulation and heating and a new standard for lighting. Different
routes to compliance are available, including the use, for housing, of the
Carbon Index Method, calculated following the SAP procedure (see below).
For buildings other than dwellings, similar improvements are required for
insulation and there are new requirements for heating, lighting and air-
conditioning, including the provision of energy meters, and testing and
commissioning. A Carbon Performance Rating Method is included in the
documents as a way of showing compliance for office buildings and there are
other ways of carbon accounting for other types of buildings.
4
Standard The Standard Assessment Procedure (SAP), introduced in July 1995, is the
Assessment government standard for home energy rating. Under the Building Regulations,
Procedure new dwellings and conversions in England and Wales have since 1995 been
(SAP) required to have a SAP Energy Rating. The government is also working with
mortgage lenders to encourage them to incorporate SAP energy ratings and
energy efficiency advice into their survey reports and to offer "green loans" or
other financial services to improve energy efficiency. The government is also
working with house-builders to encourage them to use high SAP ratings as a
means of promoting the achievements of those in construction already building
to high standards of energy efficiency and to encourage others to follow their
example. A new version of SAP was published in 2001, updating the
calculation tables and incorporating additional features such as an extended
scale (to encourage even higher standards) and a carbon index to be used for
the new Building Regulations (see above).
Energy To comply with EU directives on mandatory energy labelling for domestic
Efficiency appliances, the UK has instigated regulations for refrigeration appliances,
Labelling washing machines, washer-dryers and tumble dryers. Regulations requiring
labels for light bulbs have been in force since 1 July 1999 and for dishwashers
since 8 July 1999. An EC directive was adopted on 27 January 1998.
Energy Minimum energy efficiency standards for refrigerators and freezers have been
Efficiency in place since 3 September 1997 to comply with EU directives. Similar
Standards standards came into force for fluorescent lighting ballasts on 21 May 2002.
For new central heating boilers, a transitional period operated from 1 January
1994 to 31 December 1997 when manufacturers could supply compliant or
non-compliant boilers. From 1 January 1998, all boilers have to comply with
the requirements of the directive.
The new Climate Change Programme plans the development of energy labels,
standards and other product-related measures designed to deliver "market
transformation" in the energy efficiency of lighting, appliances and other key
traded goods.
Energy The Energy Saving Trust (EST) is an independent non-profit-making
Saving Trust organisation set up in 1992 by the UK government, British Gas and the British
public electricity suppliers to develop and manage new programmes to
promote the efficient use of energy in the domestic and small business
sectors. The Trust works to promote, through partnership, the sustainable and
efficient use of energy, spreading the message of energy efficiency through
advertising programmes, advice centres and the endorsement of energy
efficient products. The Trust is also active in promoting energy services, and
encouraging local authorities to develop energy efficiency strategies.
In April 2000, the Energy Efficiency Partnership for Homes was launched by
the Trust. The Partnership, which is facilitated by the Trust, brings together all
those with an interest in promoting domestic energy efficiency and aims to
create a long-term framework for implementing energy efficiency in homes.
Government funding for the Trust in 2002-03 was made up of over £24 million
for work with the domestic and small business sectors and over £29 million on
transport-related programmes. The Trust also levers in considerable sums of
investment from outside bodies – an estimated £75 million in 2000-01.
By March 2001, the Trust’s programmes had levered in a minimum of £350
million in investment from non-Departmental sources; stimulated some
300 000 installations of energy saving devices and provided advice and energy
services to over one million individuals and organisations. Between 1996 and
2001, government-funded EST programmes achieved energy savings of over
4 000 GWh.
5
In 2000, a review of the Trust's government funded programme concluded that
the Trust has a valuable contribution to make to the government's objectives in
promoting energy efficiency and that there was a continuing case for
government funding in pursuit of those objectives which cannot be made
through other funding sources. No major weaknesses were identified by the
review, which was carried out by Defra's in-house consultancy unit.
“Warm Front” -- Warm Front is a radical reshaping of the former HEES (Home Energy
New Home Efficiency Scheme) which it replaced on 1 June 2000. It offers complete
Energy Efficiency packages of home insulation and heating improvements to those households
Scheme most vulnerable to cold-related ill health. The package offered to a household
is tailored to the property type.
Warm Front has two levels of assistance, acknowledging that the poorer over-
60s are unlikely to see significant increases in income as in other groups. The
two levels are:
• Warm Front – for households with children under 16 and in receipt of an
income-related benefit or a disablement benefit. Some 4 million
households are eligible. The maximum grant is £700 for households using
mains gas, solid fuel, oil or off-peak electricity for heating. For households
using more expensive on-peak electric, bottled gas or paraffin for heating,
the maximum grant is £1 500.
• Warm Front Plus – for the over-60s in receipt of certain income-related
benefits. Some 3.7 million households are thought to be eligible. The
measures now include central heating systems for the main living areas.
The maximum grant is £2 500. Gas central heating systems are provided
to owner-occupiers and private rented tenants. Warm Front will meet all
installation and maintenance costs through the period of the lease.
The focus of the scheme reflects that the private sector has the greatest need,
with nearly 70% of the fuel poor. In the early part of the scheme assistance
was also made available to the social sector up to a maximum value of £45
million or support over two years whichever came sooner. No new
applications for support in the social sector were accepted after October 2001.
This is a devolved area and Warm Front operates in England only. Wales,
Scotland and Northern Ireland have their own programmes.
UK Fuel Among the most important policy initiatives in UK energy policy is the UK Fuel
2
Poverty Poverty Strategy launched by the government on 21 November 2001 . The
Strategy phenomenon of fuel poverty in the UK is the result of a combination of multiple
factors. The UK housing stock is the oldest in Europe, and especially older
residential buildings and houses are poorly insulated as well as difficult to
insulate. Low-income households spend a comparatively large part of their
budget on space heating in any case, but in addition they are drawn to the low-
rent, poorly insulated end of the housing market, which is more expensive to
heat than the average housing stock.
Hence, fuel poverty stems from many factors, including the state of the
housing stock, available income (including social security benefits) and its
distribution, as well as energy prices. The government has defined a fuel-poor
household as “one that cannot afford to keep adequately warm at reasonable
cost”, i.e. one that needs to spend more than 10% of its income on all fuel use
and to heat its home to an adequate standard of warmth. Adequate standards
of warmth are defined as 21 C in the living room and 18 C in the other
occupied rooms, in accordance with the temperatures recommended by the
World Health Organisation. Taking into account the above definition, the
number of fuel-poor households in England in 2000 was 3.9 million if housing
2
Department of Environment, Food and Rural Affairs (Defra), Department of Trade and Industry (DTI): The UK
Fuel Poverty Strategy. London, November 2001.
6
benefits were not included as part of income and 2.8 million if they were. In
1998, the same numbers were 4.5 million and 3.3 million, respectively on the
same basis. In 1996, the number of fuel poor households in the UK was
estimated to have been around 5½ million on the first basis.
Households inhabited by the elderly, by children and by the chronically sick or
disabled are particularly vulnerable to fuel poverty. In 2000, this vulnerable
group was estimated at 2.2 million to 2.4 million households if housing benefits
were included as part of income, and 3.1 million to 3.3 million if they were not.
The government has set out in its 2001 Fuel Poverty Strategy document how
it, and, in particular, DTI, Defra and the devolved administrations, intend to
reduce fuel poverty in the UK. The document sets a target to seek an end to
fuel poverty for vulnerable households by 2010. Fuel poverty in other, less
vulnerable households will be tackled once progress is made on the priority
group. The specific interim targets are:
• England: by 2004, the government aims to have assisted 800 000
vulnerable households through Warm Front to reduce the number of non-
decent social sector homes by one-third.
• Scotland: by 2006, the government aims to ensure that all pensioner
households and tenants in the social rented sector live in centrally heated
and well-insulated homes.
• Wales: by March 2004, the government aims to have assisted 38 000 likely
fuel-poor households through Warm Front in Wales.
• Northern Ireland: by 2006, the government aims to have assisted at least
40 000 households in fuel poverty through the new Warm Homes Scheme
and partnership programmes.
In the 2002 in-depth review of the energy policies of the United Kingdom, the
IEA stated:
The Government of the United Kingdom should:
• Avoid, where possible, using energy policy measures to pursue social and
other policy objectives. If this is unavoidable, clearly delineate the trade-
offs and costs of such measures.
The Market Transformation Programme is a policy research, development and
support programme funded by Defra to improve the availability, adoption and
use of domestic appliances and traded goods in the commercial sector that
use less energy and do less harm to the environment. To date, the programme
has established sector reviews in ten major sectors, covering 27 product
types, representing 75% of UK electricity consumption. It is also seeking to
develop and implement practical policy measures, such as mandatory energy
labels, minimum energy efficiency standards and voluntary agreements
negotiated with manufacturers within the framework of the European
Commission. Defra monitors the product sales changes resulting from this
programme.
Affordable Transco’s Affordable Warmth Programme aims to tackle fuel poverty by
Warmth helping registered housing associations and local authorities to install gas
Programme energy efficient heating systems in up to 1 million homes through the use of
lease finance.
This new approach, developed by Transco plc, the national gas pipeline
operator, required a change in the tax rules relating to the leasing of heating
equipment. The new rules mean that Affordable Warmth leases, which are
targeted at local authorities and Registered Social Landlords (RSLs), are a fuel
poverty/energy efficiency programme attractive to both landlord and tenant,
because the installation is cheaper (owing to the lease basis and capital
7
allowances) and can be financed more flexibly. Transco is redesigning the
financial framework which will allow a further reduction in cost. More
information can be found at www.affordablewarmth.co.uk .
Design The Design Advice Service offers professional, independent and objective
Advice advice on the energy-efficient and environmentally conscious design of
Service buildings. The service covers both new-build and refurbishment projects and
is part of the Action Energy programme managed by the Carbon Trust.
Are you doing The Are you doing your bit? multi-million pound publicity campaign was
your bit? launched in 1998 with the aim of motivating people to make small but
important behavioural changes in their everyday lives to benefit their local and
global environment. Simple campaign messages encourage individuals to
“Fight global change by saving energy” and to:
• Reduce local pollution by changing the way we travel.
• Reduce waste.
• Conserve water
In addition to encouraging individual action, the campaign, through its national
media presence and promotional activity, supports partners' initiatives by
raising the profile of environmental issues and providing a cohesive "umbrella"
branding. More information can be found at: www.doingyourbit.org.uk
In the 2002 in-depth review of the energy policies of the United Kingdom, the
IEA stated:
The Government of the United Kingdom should:
• Pursue its involvement in the residential/commercial sector to promote
energy efficiency while avoiding duplication. Reinforce the energy
efficiency measures targeted at the commercial sector, in particular
offices.
PUBLIC SECTOR
Measures already The public sector – including central and local government, schools, hospitals
Existing and/or and universities – accounts for a relatively small percentage of the UK’s total
Being improved greenhouse gas emissions, less than 5%. It has a responsibility to lead by
example in reducing emissions of greenhouse gases and is subject to the
climate change levy. This gives an added impetus for managers to ensure
that energy is used efficiently.
A number of energy consumption targets have been set for the public sector.
Central The government set a target for reducing energy consumption in its own
Government buildings by 20% on 1990/91 levels. By March 2000, savings of 17% had been
made, equivalent to just over 0.3 million tonnes of carbon. The government
has now set a new target of reducing CO2 emissions from its estate by 1% a
year against 1999-2000 levels and expects to introduce a new energy savings
target in due course, based on the results of the current exercise to
benchmark its estate.
Education UK Climate Change Programme gave a commitment to benchmark schools
and improve their energy management over a five-year period. It is expected
this will lead to 10% energy savings, equivalent to a reduction of 0.16 million
tonnes of carbon over the next nine years.
Health The government has set a mandatory target for National Health Service (NHS)
Sector bodies in England to reduce primary energy consumption by 15% of 2000
levels by 2010 (equivalent to 0.15 million tonnes of carbon).
8
Local Authorities
Home Energy The Home Energy Conservation Act (HECA) 1995 requires all UK local
Conservation authorities with housing responsibilities to prepare, publish and submit to the
Act 1995 Secretary of State, an energy conservation report identifying energy
conservation measures which they consider practicable, cost-effective and
likely to result in significant improvement in the energy efficiency of all
residential accommodation in its area. Significant improvement was defined in
guidance as 30% (34% in Northern Ireland) over ten years from an agreed
baseline of either April 1996 or April 1997. Authorities have developed their
strategies and set targets for improving energy efficiency. Using the help and
guidance available through central government programmes, and by building
on their existing activities and developing partnerships, authorities are now
implementing the measures identified in their strategies and reporting on
progress being made. In the first four years to March 2000, authorities
reported an overall energy efficiency improvement in the domestic sector of
just over 6%.
Energy The Energy Saving Trust is establishing effective methods for generating
Saving interest, capacity and action within local authorities to enable them to take
Trust forward the challenges raised by HECA and the climate change programme.
The Trust’s programme is designed to identify and pilot a range of support
activities for local authorities, including infrastructure support and grant
funding, and to enable and encourage local government to work with the
private sector to generate local consumer activity.
INDUSTRY
Measures already
Existing and/or
Being improved
The Carbon The industry-related elements of the UK Climate Change Programme focus on
Trust the Carbon Trust to deliver carbon savings from business.
The aim of the Carbon Trust is to help the UK move towards a sustainable, low
carbon economy whilst maintaining business competitiveness. In the short-
term, the organisation will concentrate on helping business save energy and
money. In the longer term, it will develop the UK’s capacity to meet the
problems of climate change, considering not only commercial and
technological factors but also wider socio-economic factors that hinder the
move towards a low carbon economy.
The Trust’s first year’s funding is up to £50 million, from Climate Change Levy
receipts and from the government’s Energy Efficiency Best Practice
Programme (EEBPP). The Trust has taken over the non-domestic part of the
EEBPP, and is now the UK’s main energy efficiency information, advice and
research programme for organisations in the public and private sectors. The
Carbon Trust also administers and promotes the government’s Enhanced
Capital Allowance (ECA) scheme for energy saving technologies that has been
operational since April 2001.
Climate The Climate Change Levy (CCL), effective from 1 April 2001, was introduced
Change on energy use in the non-domestic sector (industry, commerce, agriculture and
Levy (CCL) the public sector). Its aim is to encourage energy efficiency and help meet the
United Kingdom's targets to reduce GHG emissions. It applies to gas,
electricity, liquefied petroleum gas (LPG) and coal. The rates of the levy are
based on the energy content of the different energy products. They are
equivalent to 0.43 p/kWh for electricity, 0.15 p/kWh for gas, 1.17 p/kilogram for
coal and 0.96 p/kilogram for LPG. Fuel oils do not attract the levy as they are
9
already subject to hydrocarbon oil duty. The levy is added to energy bills
before VAT is applied.
Residential energy users, charities and very small businesses (using domestic
amounts of energy) are exempt from paying the levy. There are also further
exemptions for transport, for the production of taxable commodities and
hydrocarbon oils, use in "good quality" combined heat and power plants, and in
non-fuel uses. Energy-intensive businesses can reduce their levy payments by
participating in voluntary Climate Change Agreements. Companies can obtain
an 80% discount if they enter into Climate Change Agreements that extend for
a period of 12 years. There is a separate 50% discount for a period of up to
five years for horticultural producers. The levy package, including the Climate
Change Agreements, is expected to save at least 5 million tonnes of carbon
per year by 2010.
The revenues generated from the levy are recycled back to businesses via a
0.3 percentage point cut in the main rate of employers’ National Insurance
Contributions and additional support for energy efficiency measures. The
government calculates that there will be no net gain to the public finances from
this reform. The levy package as a whole will be broadly neutral for the
manufacturing and service sectors of the economy. The revenues also provide
money for improving business energy efficiency. The sum of £50 million was
available under the levy package in 2001-02 to support the provision of energy
efficiency advice, promoting the take-up of low carbon technologies and the
promotion of renewable energy projects. A further £70 million in 2001-02 was
allocated to finance a system of 100% first-year enhanced capital allowances
(ECAs) against tax for firms making energy saving investments. This was
increased by £20 million in the 2002-03 budget, although this includes support
for both energy-saving technologies and low-emission vehicles and fuel
infrastructure. The scheme is worth around £200 million in the period 2001-
2003, depending on take-up.
In the 2002 in-depth review of the energy policies of the United Kingdom, the
IEA stated:
The Government of the United Kingdom should:
• Consider again modifying the Climate Change Levy to reflect the carbon
content of fuels.
Climate The Climate Change Agreements between energy-intensive sectors of industry
Change and the Secretary of State are a recent policy mechanism to achieve
Agreements environmental objectives. In return for agreeing and meeting stringent targets
to reduce energy consumption or emissions, these sectors are entitled to an
80% reduction in the Climate Change Levy. Eligible for entry to agreements
are all users that operate processes subject to regulation under the Integrated
Pollution Prevention and Control (IPPC) directive, as implemented by the
Pollution Prevention and Control (England and Wales) Regulations 2000 (or
sites operating processes that would be subject to such regulation but for the
fact that they fall beneath the relevant threshold, except for combustion plants)
The rationale for this eligibility criterion is that the processes in question are
subject to a regulatory requirement to use energy efficiently. This requirement
does not apply to other non-domestic energy users. The levy discount is
designed to maintain the competitiveness of the energy-intensive sectors while
providing an incentive at the margin to improve efficiency further. The eligible
sectors cover all the main energy-intensive sectors of industry that are subject
to international competition.
Currently there are 44 sector level (“umbrella”) agreements with 40 industry
sectors. Some of these sector associations have a number of agreements to
10
cover specific industry sub-sectors. Around 5 500 “underlying agreements”
have been concluded with participating companies. The agreements cover
around 13 000 individual facilities, and more sites are joining.
Facilities that are covered by a Climate Change Agreement are entitled to pay
the reduced rate of Climate Change Levy until the end of March 2003. At the
time of writing (February 2003) sectors are being assessed on target
performance for the first “milestone” period of each agreement. Company
energy efficiency data have been supplied via sector organisations and will
permit actual energy savings to be compared against milestone targets. In this
process companies are required to report the performance of their facilities to
the relevant sector association. The sector associations will in turn report
performance to the Department of the Environment, Food and Rural Affairs
(Defra). Also, throughout the course of the agreements, the data are subject to
independent audit by auditors acting on behalf of the Secretary of State. Defra
undertook an informal progress review in January and February 2002 to
ensure that robust sector data processing systems were in place. This has
been repeated in January/February 2003.
The sector performance will be tested against the sector target adjusted for
exits and entrants, carbon trading under the UK Emissions Trading Scheme,
where applicable, product mix and/or throughput. If the sector (or sub-sector)
has failed to meet this adjusted target, the individual facilities will be assessed.
If the target has not been met, the relevant facilities will not be required to
leave the agreement. They can remain within the agreement, but they will not
be eligible for the levy discount for the next two-year certification period. If the
facilities catch up with projected energy savings targets at the next review
stage, then they can be re-certified and will, once again, pay the levy at the
reduced rate. In specific and isolated cases where regulatory or planning
requirements imposed by the government have prevented the facilities from
meeting their targets participants may be allowed to retain Levy discount.
However, the facilities will still need to demonstrate that they have made
satisfactory progress and that they have met qualitative requirements such as
the development of an energy management plan.
Companies that have entered into Climate Change Agreements will be able to
use the Emissions Trading Scheme to help them meet their emission targets.
Emissions trading is expected to be the principal mechanism for dealing with
fluctuations in performance within each target period. The agreements will
therefore have an important role to play in establishing emissions trading in the
UK as the agreements cover around 60% of the energy used by manufacturing
industry.
Facilities are also subject to audit requirements by other environmental, tax
and trading regimes e.g. by Defra for Combined Heat and Power Quality
Assurance, by the Environment Agency for Integrated Pollution Prevention and
Control (IPPC), by HM Customs and Excise for payment of the levy, and by
independent verifiers for trading. It is the government’s intention to co-ordinate
these regimes to avoid duplication of effort by both operators and auditors and
to minimise the need for data collection, recording and inspection.
In the 2002 in-depth review of the energy policies of the United Kingdom, the
IEA stated:
The Government of the United Kingdom should:
• Consider again eliminating restrictive definitions limiting the eligibility of
industries for voluntary climate change agreements, as well as incentives
and possibilities for free-riding.
11
Enhanced Using experience gained in other European countries, the UK introduced on
Capital 1 April 2001, a system of Enhanced Capital Allowances. While most capital
Allowances expenditure in the UK can be written off against capital allowance on a
Scheme reducing balance basis, energy-saving investments eligible under ECA allow
100% first year allowances against taxable profits in the first year of
expenditure. Initially, the scheme covers eight technologies: CHP, boilers and
add-ons, pipe insulation, motors, variable speed drives, lighting, refrigeration
and thermal screens. The technologies and criteria will be reviewed annually
and the Energy Technology Product list updated monthly. Administered jointly
by the Carbon Trust and the Inland Revenue, the scheme will be worth around
£70 million in 2001-2002 and £130 million in 2002-03, depending on take-up.
For more information see: www.eca.gov.uk
Energy The Energy Efficiency Best Practice Programme (EEBPP) launched in 1989
Efficiency was the UK's main energy efficiency information, advice and research
Best Practice programme. In July 2002 the programme was split into domestic and non-
Programme domestic sectors that are now managed by the Energy Saving Trust and the
(EEBPP) Carbon Trust respectively.
The EEBPP had a target, set in 1989 and subsequently upgraded, to stimulate
annual energy efficiency savings worth £800 million at 1990 prices, equivalent
to 5 million tonnes of carbon (MtC) a year by 2000, 4.5 MtC of which is in
industry and 0.5 MtC. In the residential sector; EEBPP supports the Negotiated
Agreements and its targets are thus linked with achievement of the sector
targets; it also assists those organisations subject to the full Climate Change
Levy in mitigating its effects.
The Programme web site http://www.energy-efficiency.gov.uk/ is continuously
updated and receives an increasing number of visits, about 50 000 per month
to the database. Five thousand users have registered.
European The success of the Best Practice approach to preparing and delivering
Best independent, high quality information and advice has been recognised
Practice throughout the world. Australia, Brazil, Canada, China, and New Zealand have
Initiative all adopted elements of the idea and adapted them to local conditions. More
recently, the European Community has taken up the idea. Building on a
feasibility study led by the UK and with major contributions from seven EU
countries to test the best approach on a European scale, a pilot phase,
supported by the EC SAVE Programme, and by national contributions will
focus on Europe-wide benchmarking of processes and on an international
Extranet linking energy agencies. Fourteen countries are participating,
including some EU Accession States.
Making a The voluntary Making a Corporate Commitment Campaign (MACC) was
Corporate launched in 1991 with the aim of obtaining top management commitment to
Commitment responsible energy management. MACC2 was launched by Michael Meacher,
Campaign Minister for the Environment in June 2000. MACC2 is a way of helping
(MACC) organisations improve their resource efficiency and environmental
performance in a managed, targeted and transparent way. It is designed to
work equally well in industrial, commercial and public sector organisations. By
signing up to MACC2, organisations are making a commitment to improve
their performance on:
• Greenhouse gas emissions.
• Production of waste.
• Consumption of water.
Organisations signing up to MACC2 commit themselves to:
• Publicly declare their commitment to achieve specific improvement targets.
• Register their commitment.
• Agree to make their commitment and targets public.
12
• Agree to report annually on their progress towards meeting their targets.
Eco- The EC Eco-Management and Audit Scheme (EMAS) is a Europe-wide
Management voluntary registration scheme launched in April 1995. It provides businesses
and Audit engaged in manufacturing, waste management, power generation and mining
Scheme and quarrying, with the opportunity of obtaining public recognition for a
(EMAS) commitment to improve their environmental performance. Participating
companies are required to implement an environmental management system
and produce an independently validated public statement about their progress.
Guidelines for These guidelines were designed to help and encourage companies to
Company measure and report publicly on their greenhouse gas emissions from energy
Reporting on consumption, transport and industrial processes. They provide guidance on
greenhouse gas sources of emissions, how to gather the data, and also how to convert the data
emissions (for example, from electricity bills) into CO2 equivalents. The guidelines
encourage companies to set public targets for emissions reductions, and since
their launch in 1999, have become widely used amongst the growing number
of companies that produce environmental reports.
See http://www.defra.gov.uk/environment/envrp/index.htm for a copy of these
and other guidelines on environmental reporting.
Action Action Energy is the main source of energy efficiency advice and support for
Energy business and the public sector in the UK. When the Carbon Trust took over
management of the non-domestic part of the EEBPP they relaunched it as
Action Energy. As well as providing all of the services available under the
EEBPP, including site visits and access to the extensive library of energy
efficiency literature, they have since added an interest-free loan scheme for
Small to Medium sized Enterprises to help towards energy efficiency projects.
Loans of between £5 000 and £50 000 (repayable over five years) are
available to help SMEs overcome the initial costs of energy efficiency projects.
See http://www.actionenergy.org.uk/ for further information.
Environmental Envirowise, formerly the Environmental Technology Best Practice Programme
Technology (ETBBP), was launched in 1994. It promotes the use of better environmental
Best Practice practices that reduce business costs for industry and commerce, and provides
Programme all sectors with information and advice on environmental technologies and
techniques by means of publications, events and a free Environmental
Helpline. The programme's projected budget, shared between Defra and DTI,
is £54 million over the 13 years to 2006/7. The overall target for the
programme is that it should stimulate annual cost savings for industry of £580
million by 2015.
Energy Both gas and electricity suppliers have a statutory responsibility to provide
Efficiency energy advice to consumers. The Energy Efficiency Commitment (EEC)
Commitments implemented from April 2002 replaced the previous programme known as the
Energy Efficiency Standards of Performance, EESOP; according to these
programmes, gas and electricity suppliers are required to encourage or assist
domestic customers to take up energy efficiency measures. The Utilities Act
2000 transferred responsibility for the EEC from the Regulator to the
government. The Energy Efficiency Commitment should provide a challenge
to energy suppliers while stimulating, in a sustainable way, the development of
the energy efficiency industry. By directing 50% of the energy benefits to a
priority group of low-income consumers, it will help reduce fuel poverty.
The overall target for the Commitment is 62 TWh, with 50% of the energy
savings being targeted at customers receiving benefits or tax credit. The EEC
will cut greenhouse gas emissions by around 0.4 MTC a year by 2005. The
Regulator's role is to administer the Commitment, apportion the overall target
to each supplier, determine which energy efficiency measures qualify and the
savings attributable, and monitor suppliers' performance against their targets.
13
The government has indicated in its Energy White Paper a desire to consult on
extending the Commitment to 2008, at possibly twice its current level of
activity, and beyond the bounds of the domestic sector.
See http://www.defra.gov.uk/environment/energy/eec/ for further details.
Combined In 1993 the government set a target of 5 000 MW installed capacity as part of
Heat and the Climate Change Programme. In 2000, CHP qualifying power capacity
Power (CHP) exceeded 4 600 MW on over 1 500 sites, and was expected to be 5 000 MW
by the end of 2001. While just under 50% of the CHP installations in the UK
are small plants, with an electrical qualifying power capacity of less than
100 kW, schemes larger than 10 MW account for over 80% of the total CHP
installed electrical capacity. In 2000, 6% of the total electricity generated in the
country came from CHP schemes. The government has set a target of
10 000 MW of CHP capacity by 2010 as an important part of the Climate
Change Programme. It has introduced a number of measures to promote CHP
power plants:
• The CHP Quality Assurance (CHPQA) programme certifies the energy
efficiency and environmental performance of CHP schemes; it exempts
"good quality" CHP. Over 1 200 CHP schemes have registered for CHPQA,
900 of which have been certified. Good Quality CHP is exempt from the
Climate Change Levy (subject to State Aid clearance), eligible for
Enhanced Capital Allowances on investment in energy saving technologies,
and exempt from business rates of the electricity generating plant and
machinery in CHP schemes.
• Recent high gas prices and low electricity prices (which have fallen partially
as a result of the implementation of the New Electricity Trading
Arrangements) have created commercial difficulties for CHP. A draft
government CHP Strategy addressing the market conditions affecting CHP
and outlining the contribution of existing and possible new measures was
consulted on in 2002.
Other new developments to encourage greater use of CHP include:
• The new £50 million UK-wide Community Energy Programme which aims
to promote community heating through grants to install new schemes and
refurbish obsolete infrastructure and equipment. This aims to benefit up to
100 000 people, mostly on low incomes, while contributing to reductions in
greenhouse gas emissions.
• The Revision of Planning Policy Guidance Note 3: Housing, June 2000,
which provides some leverage for local planning authorities to encourage
developers to explore the feasibility of energy efficient options, including
newly built CHP/district heating.
• That power station developers who are seeking consent under the
Electricity Act 1989 and the Energy Act must now demonstrate that they
have explored the opportunity for CHP and sought to identify heat loads for
the waste heat.
In the 2002 in-depth review of the energy policies of the United Kingdom, the
IEA stated:
The Government of the United Kingdom should:
• Consider again extending voluntary agreements to cover all larger
industries, and consider including small and medium-sized industries.
The exemption under the Climate Change Levy and inclusion in the Enhanced
Capital Allowances Scheme conform to this recommendation
In the Performance and Innovation Unit (PIU Review), combined heat and
14
power (CHP) was seen as a low-cost option for carbon abatement, but not
zero carbon. In the long term, it would benefit from policies that put a price on
carbon. The report suggested that current market and institutional barriers to
CHP should be removed.
Further measures were introduced in the Energy White Paper, which will be
taken into account in the final CHP Strategy. The government proposes to
issue this later this year.
TRANSPORT
Measures already
Existing and/or
Being improved
White The government’s White Paper on the future of transport: A New Deal for
Paper 1998 Transport: Better for Everyone, July 1998, recognised that the environmental
impacts of the growth in road traffic may be a threat to sustainable
development and emphasises the need to reduce those impacts.
Three key themes to emerge from the White Paper relevant to climate change
were:
• Improving fuel efficiency of road transport, for example through increases in
road fuel duties.
• Reducing car dependence, especially in urban areas, through better
planning and promotion of public transport, cycling and walking.
• Recognising that measures may be needed to manage or restrain road
traffic, especially in urban areas.
The government is also concerned about the environmental impacts of the
rapid growth of air transport.
Transport 2010, Transport 2010, the 10-Year Plan designed by the Department for
the 10 Year Plan Environment, Transport and the Regions and published in 2000 is an
investment plan for delivering the White Paper commitment to an integrated
transport system. The Plan focuses on surface transport, and improvements
in surface access to ports and airports.
The 10-Year Plan is a key part of the government's Climate Change
Programme. It is expected to deliver savings of 1.5 MTC per annum by 2010.
The Plan aims to tackle congestion and pollution by improving all types of
transport – rail and road, public and private – in ways that increase choice. The
Plan sets the strategic framework. Individual projects and programmes will
flow from decisions taken by a variety of agencies, the private sector, and
through Regional Transport Strategies and Local Transport Plans.
The 10-Year Plan envisages the necessary level of investments, total private
and public expenditure, to be £180 billion over the next ten years. The
breakdown is as follows: public investment: £64.7 billion, private investment:
£56.3 billion, public resource/revenue: £58.6 billion. The Plan sets the strategic
framework, and individual projects and programmes are to flow from decisions
taken by a variety of agencies, the private sector, and through Regional
Transport Strategies and Local Transport Plans, as well as public and private
partnerships.
All modes of transport will benefit from this massive new investment. Spending
on railways will total £60 billion, spending on roads, local and national, will total
£59 billion and local transport spending will also be increased substantially to a
ten-year total of £59 billion.
15
The Plan includes a wide range of measures that will help to reduce
greenhouse gas emissions, including:
• Sustainable distribution strategy involving both central and local
government and the haulage/logistics industry. The strategy is designed to
promote improvements in operational and fuel efficiency of the vehicle
fleet, in particular payload (tonnes per loaded vehicle kilometre) and empty
running (ratio of total vehicle kilometres to loaded vehicle kilometres).
• Eighty per cent growth in rail freight volumes as a result of improvements
in rail freight’s relative competitiveness through reductions in rail costs and
improvements in service quality. Electricity used for traction by rail freight
operators is also exempt from the climate change levy.
• Substantial improvements in local public transport, including up to 25 new
rapid transit lines in major cities and extensive bus priority schemes. The
Plan assumes that congestion charging schemes are introduced in central
London and eight other cities, and that workplace parking levy schemes
are introduced in 12 cities. We have also assumed that all net revenues
are recycled into transport improvements in the urban areas concerned.
• The delivery of a 50% increase in rail patronage, measured by passenger
kilometres – just under a quarter of which is forecast to come from car
users switching to rail because of reductions in fares and service quality
improvements; and the development of reliable, convenient and affordable
public transport services and better integration between modes.
Vehicle The increase in carbon dioxide emissions from traffic growth has been
Fuel compounded by the limited improvements in vehicle fuel efficiency, especially
Efficiency for passenger cars, since the mid-1980s.
Although there have been substantial improvements in engine efficiency during
the past decade, these have partly been offset by the effects of greater vehicle
weight, due to increased size, better safety standards and the provision of
additional features, such as air conditioning, some of which also require power
to operate them as well as meeting increasingly stringent European emissions
standards.
A significant improvement in vehicle fuel efficiency is essential for delivery of
the UK’s climate change targets. A sustainable market transformation is
therefore needed to stimulate the development, manufacture and purchase of
more fuel-efficient cars. This transformation must involve action to introduce
more fuel saving technologies into vehicle design and to encourage
consumers to buy more fuel-efficient cars.
The government is committed to encouraging a market transformation for
passenger cars through a combination of fiscal measures, the European
Voluntary Agreement with automotive manufacturers and through ensuring
that consumers have the information they need to choose more fuel-efficient
vehicles.. The future trend in the fuel efficiency of new cars is also one of the
government’s sustainable development indicators
European The European Voluntary Agreements with European, Japanese and Korean
Voluntary vehicle manufacturers will reduce new car CO2 emissions by 25% to 140g
Agreement to CO2/km by 2008 (2009 for KAMA, the Korean manufacturers association). The
reduce CO2 voluntary agreements have proved a highly effective mechanism for improving
emissions from the fuel efficiency and CO2 performance of new cars. They have provided
new cars manufacturers with a stable long-term framework within which to plan,
research and introduce fuel saving innovations. This approach, which focuses
on the levels of carbon emitted rather than on dictating particular technologies,
gives manufacturers the flexibility to develop the best and most cost-effective
solutions.
The government is supporting the aims of the agreements through the UK’s
taxation system and through other schemes to encourage people to buy more
16
fuel-efficient cars. It is estimated that the voluntary agreements, along with the
changes to vehicle excise duty and company car taxation outlined below, will
result in savings of around 4 MtC by 2010.
Powering The UK Powering Future Vehicles strategy was launched in July 2002. The
Future strategy – which was produced jointly by DfT, Treasury, Defra and DTI – is
Vehicles aimed at promoting the UK’s shift to low-carbon vehicle technologies and
fuels, to reduce transport’s impact on the global and local environment.
It sets out government targets that by 10% of new cars sold in the UK by 2012
will be low-carbon vehicles, defined as 100 or less grams of CO2 per km at the
tailpipe (compared with the current new car average of 178gm). It also sets the
target that by 2012, 600 new buses joining the fleet yearly (around 20%) will
also be low-carbon.
The government is supporting the shift to low-carbon by linking our
mainstream vehicle taxation, i.e. the graduated vehicle excise duty introduced
in 2001 and graduated company car taxation, introduced in 2002, CO2
emissions.
Delivering these objectives involves more than one part of government, and
the Prime Minister has set up a Ministerial Low Carbon Group to oversee the
delivery of the low-carbon agenda. The Ministerial Group will report annually to
Parliament.
The strategy looks further forward to the long-term shift to ultra-low carbon
vehicles and ultimately to zero emission transport. The government will put in
place further targets beyond the decade, accelerating the shift towards
technologies such as hydrogen fuel cells.
Economic The government is using the taxation system to support the aims and
Instruments objectives of the EU CO2 from cars strategy and to encourage consumers to
buy smaller or more fuel-efficient vehicles.
One measure, which has already delivered reductions in emissions from road
transport, is the fuel duty escalator – annual fuel duty increases above the rate
of inflation. The escalator was introduced in 1993, first at an annual rate of 3%
above inflation and then at 5%. It was increased to 6% in July 1997 and has
been very successful. It sent a clear signal to manufacturers to design more
fuel-efficient vehicles, and to motorists to avoid unnecessary journeys and to
consider alternatives to the car. Taken in isolation, increases in duties between
1996 and 1999 are estimated to have produced annual carbon savings of
between 1 and 2.5 MtC by 2010.
The Chancellor announced in his 1999 Pre-Budget Report that the appropriate
level of fuel duties would be set on a Budget by Budget basis, taking account
of the government’s economic, environmental and social objectives. Revenues
from any real increases in fuel duty will go into a fund to be ring-fenced for
improving public transport and modernising the road network.
Cars registered on or after 1 March 2001, are subject to graduated vehicle
excise duty (VED, an annual tax on road vehicles) based upon CO2 emissions.
Vehicles powered solely by electricity are exempt from VED and new gas
powered vehicles benefit from a small discount of £5 to £10. Diesel cars with
lower carbon dioxide emission rates than similar petrol cars pay a small
supplement to compensate for the fact that diesel cars may emit higher levels
of particulates and other local air pollutants such as NOx. It is these pollutants
that pose the greatest challenge in terms of meeting the UK’s air quality
standards. Budget 2002 announced the introduction of a new low carbon VED
rate for cars that emit less than 120 g/km of CO2. This increases the VED
differential between the least and most polluting cars to up to £100 per year.
17
Under Budget 2002 the new low rate of VED for cars producing less than 120
g/km CO2 is £60/year for cars using alternative fuel, £70/year for cars using
petrol and £80/year for cars using diesel.
The government also developed proposals for a comprehensive reform of lorry
VED, to reflect better the environmental and track costs of different lorries. The
proposals were welcomed by the road haulage industry. As a consequence,
the government’s 2001 budget introduced a new system of lorry VED that
came into effect on 1 December 2001. These rates reduce the total burden
that lorry VED imposes on the haulage industry, while at the same time
improving the environmental signals that hauliers face by encouraging the use
of lorries that cause less road damage and pollution. As a result of these
reforms, UK lorry VED rates are amongst the lowest in Europe for the cleanest
and least-damaging lorries.
Additionally, heavy goods vehicles fitted with certain emission reduction
technologies, e.g. particulate traps, or converted to natural gas, have for some
time benefited from lower VED rates under the Reduced Pollution Certificate
scheme. However, the government wants to go further in improving the
environmental signals from the VED system and therefore plans to offer
reduced VED rates for lorries meeting the new Euro IV standard from around
2004. The government also issued new motorcycle VED rates, reformed the
company car tax and fuel scale charges for fuel provided for private use, and
developed proposals for lorry road user charging.
From April 2002, the existing system of company car tax, based on 35% of the
car's price, subject to business mileage and age-related discounts, will be
abolished. The new system will apply to all company cars, including second
company cars. Company cars first registered after January 1998 are to be
taxed on a percentage of their list price according to one of 21 carbon dioxide
emission bands, measured in grams per kilometre (g/km). The reform will
remove the perverse incentive in the current system to reduce the tax due by
driving unnecessary, extra business miles and it will provide a significant
incentive to company cars drivers to choose more fuel-efficient vehicles.
It is estimated that the CO2-based reforms to VED and company car taxation,
along with the European-level voluntary agreements with car manufacturers,
will result in savings of around 4 million tonnes of carbon a year by 2010.
Awareness The impact of the economic instruments is reinforced by a range of initiatives
Raising and to raise public awareness and to change the behaviour of individuals and
Information businesses. These include the TransportEnergy Best Practice programme
(TEBPp) Motorvate (see below) and the "Are your doing your bit?" campaign.
The TEBPp provides a range of information and services to help organisations
develop and implement green fleet management practices and travel plans.
These include free guides and videos, case studies containing practical
information on how to implement measures and the availability of free, on-site
advice from expert advisors to help with establishing travel plans and green
fleet management strategies.
The strategy for action in the transport sector is being underpinned by the
government’s "Are you doing your bit?" campaign. This major publicity
campaign aims to help raise people’s awareness of the issues by encouraging
people to use their cars less and by conveying wider messages relating to the
impact on fuel consumption of driving more smoothly and better car
maintenance. The government is spreading these messages through a variety
of different media, including TV and radio advertisements, high profile
promotions in the national press, poster sites and bus side ads, and in
literature sent out by the Driver and Vehicle Licensing Agency and the Driving
Standards Agency.
18
Motorvate In 2000 the UK government launched a green fleet certification scheme known
as Motorvate designed to help UK business cut CO2 emissions and make
considerable savings on their fleet costs. Company cars make up nearly half
of all new car sales in the country and therefore have a knock-on effect on the
second-hand market. Improving the fuel efficiency of the business vehicle fleet
could therefore have significant impacts on the environment while helping UK
business to improve profitability; an average fleet of 200 vehicles can save
£34 000 a year by meeting Motorvate targets.
Companies can sign up for Motorvate for a modest fee to reduce their fleet
CO2 emissions by at least 12% over three years. For their membership fee
they receive fleet management guidance, a telephone advice service, on-site
assistance and public recognition for achieving an environmental reward.
Further details can be found at www.greenerfleet.org.uk
Developing and The Energy Saving Trust supports the development of markets for cleaner fuel
promoting new vehicles through its TransportEnergy PowerShift initiative. PowerShift
technologies and provides grants towards the additional cost of purchasing gas, hybrid and
alternative fuels battery electric vehicles. The initiative has been running since 1996 and by the
end of the 2002 FY had part-funded the purchase of over 12 000 vehicles.
In addition TransportEnergy also manage the New Vehicle Technology Fund
(NVTF), which has a budget of £3 million for 2002-2003. The NVTF provides
grants to demonstrate innovative low carbon vehicle technologies, as set out in
the Powering Future Vehicles Strategy
The NVTF is not limited to specific technologies and it supports any vehicle-
based technology with the potential to deliver significant lifecycle carbon
savings and to become a commercially viable product within a maximum of
five years.
Transport Land use planning will be vital in changing the way people travel, both now and
Planning in the future. In line with national guidance, locating development where it can
be easily accessible on foot, by bicycle and public transport will allow people to
make sustainable transport choices. It will also help to increase the
effectiveness of other transport policies that are designed to reduce the
amount of trips made by car. Town centres and retail development include a
sequential approach to choosing sites for retail, leisure and other town centre
uses. The first preference should be for town centre locations, followed by
edge-of-centre sites, district and local centres and, only then, out-of-centre
sites in locations that are accessible by all forms of transport. The revised
PPG13 on transport aims to integrate land use planning and transport at a
national, regional and local level to promote sustainable transport choices and
to reduce the need to travel, especially by car. This note advises that major
travel generating development should be located where it offers a choice of
transport modes.
In the 2002 in-depth review of the energy policies of the United Kingdom, the
IEA stated:
The Government of the United Kingdom should:
• Enhance the efforts to curb the energy consumption and CO2 emissions
from the transport sector. To achieve this, the government should
implement its 10-year Transport Plan swiftly and according to schedule,
with an emphasis on reducing greenhouse gas emissions and improving
energy efficiency.
MONITORING/ The UK sets targets for its government programmes and undertakes regular
ASSESSMENT monitoring to ensure that value for taxpayers’ money is maintained. Impact
Assessments are undertaken each year to measure the effectiveness of the
19
Programmes in stimulating energy savings. For example, the Impact
Assessment of the Energy Efficiency Best Practice Programme has shown
that the programme has helped stimulate savings in UK business and the
public sector worth about £750 million p.a. – equivalent to around 4 million
tonnes carbon a year. These savings have been achieved at a cost to the
taxpayer of a few tens of pounds per tonne.
The PIU report based on assessments of most of the energy efficiency
programmes and measures is a striking example of this government concern.
To get money from the Treasury, the government authorities in charge of
implementing the various energy efficiency programmes have to report to it on
the progress achieved.
Under the Climate Change Programme, the new programmes dealing mainly
with energy efficiency will generally have to report progress regularly against
interim targets towards the UK's Kyoto target (and the UK government's own
20% carbon reduction target for 2010). Some of the programmes involve tax
discounts (e.g. the Climate Change Levy) so will be subject to close scrutiny by
the tax authorities.
Energy efficiency policies are also assessed by some independent non-profit
organisations, such as the Green Alliance or the Association for the
Conservation of Energy, which formulate recommendations to improve their
effectiveness.
In addition, follow-up studies are regularly commissioned to monitor the
success of specific initiatives and to guide future activities.
In the 2002 in-depth review of the energy policies of the United Kingdom, the
IEA stated:
The Government of the United Kingdom should:
• Continue the systematic monitoring and evaluation of energy efficiency
programmes and use the results to enhance the quality of new and
existing measures and programmes.
• Review carefully the practical potential of energy efficiency policies to curb
energy consumption. Clarify the costs of specific policy measures.
Further For further information, please contact:
information
Pete Gorman
SEP8 – International, Sustainable Energy Policy
DEFRA
Ashdown House
123 Victoria St
London SW1E 6DE
Tel: +44 (0)207 944 6682
Fax: +44 (0)207 944 6559
E-mail: pete.gorman@defra.gsi.gov.uk
20
(QHUJ\
IEA (IILFLHQF\
8SGDWH
UNITED Updated November 2002
STATES
NATIONAL Responsibilities for energy efficiency policies are divided among the federal
ENERGY POLICY government, the state and municipal governments. The United States Federal
government has issued a series of national energy strategy papers. The most
recent strategy document -- the new National Energy Policy referred to as
the "NEP" -- was issued in May 2001. The NEP is a plan designed to help
bring together business, government, local communities and citizens to
promote dependable, affordable, and environmentally-sound energy for the
future. The NEP contains 105 policy recommendations addressing energy
supply, energy efficiency and conservation, infrastructure, and also initiatives
to strengthen global alliances. Fifty-four of the recommendations are related to
energy efficiency and renewable energy. More than 23 recommendations are
specifically targeted at improving energy efficiency. The entire report is
available at: www.whitehouse.gov/energy.
In the 2002 in-depth review of the energy policies of the United States the IEA
stated:
The Government of the United States should:
x Persevere with the development and implementation of the National
Energy Policy to ensure that the eventual outcome is a new and coherent
expression of US energy policies, instruments and programmes.
x Establish a stronger foundation for energy efficiency programmes by
continuing to:
- Improve the statistical basis for developing policies and programmes.
- Assess improvements in energy efficiency that are being achieved
without government intervention to set benchmarks for evaluating the
cost-effectiveness of existing and proposed policies.
- Improve transparency of information on energy consumption, energy
costs, and efficiency-enhancing products for consumers.
- Give attention to the potential energy security benefits of energy
efficiency measures.
CLIMATE
CHANGE POLICY
National The first national communication entitled Climate Action Report — Submission
Communications of the United States of America under the UN Framework Convention on
Climate Change was published in October 1994.
The second national communication entitled Climate Change Action Report –
1997 Submission of the United States of America under the United Nations
Framework Convention on Climate Change was published in July 1997.
The third national communications entitled U.S. Climate Action Report -- 2002
was released in June 2002. The US third national communications reports
that US climate change programmes reduced the growth of greenhouse gas
(GHG) emissions by an estimated 240 teragrams (million metric tons) of CO2
equivalent in 2000 alone. The report can be electronically downloaded from:
http://www.epa.gov/globalwarming/publications/car/index.html
Interim Report of In June 2001, the President issued the Interim Report on a Review of U.S.
the Cabinet Level Climate Change Policy, conducted at the Cabinet level. In the Interim Report,
Review of US the President has directed the Secretaries of Energy and Commerce and the
Climate Change Administrator of the Environmental Protection Agency (EPA) to improve
Policy climate change technology research and development, enhance basic
1
research, strengthen applied research through public-private partnerships,
develop improved technologies for measuring and monitoring gross and net
greenhouse gas emissions, and support demonstration projects for cutting-
edge technologies. The Interim Report is accessible at
http://usinfo.state.gov/topical/global/climate.
Global Climate In February 2002, the Global Climate Change Initiative was announced. The
Change Initiative new US approach to the challenge of global climate change contains
proposed policies that will harness the power of markets and technology to
reduce greenhouse gas emissions. As part of this initiative, the United States
commits to cutting greenhouse gas intensity of the economy by 18% over the
next ten years. Greenhouse gas intensity is the ratio of greenhouse gas
emissions to economic output. This reduction exceeds the 14% projected
reduction in greenhouse gas intensity in the absence of the additional
proposed policies and measures. The GHG intensity goal seeks to lower the
rate of emissions from an estimated 183 metric tons per million dollars of GDP
in 2002, to 151 metric tons per million dollars of GDP in 2012. The 18% GHG
intensity target would put the United States on a path to slow the growth of
greenhouse gas emissions. By significantly slowing the growth of greenhouse
gases, this policy will put America on a path toward stabilising GHG
concentration in the atmosphere in the long run, while sustaining the
economic growth needed to finance investments in a new, cleaner energy
technology and systems. This goal is comparable to the average progress that
nations participating in the Kyoto Protocol are required to achieve.
Information on the Global Climate Change Initiative can be found at:
http://www.whitehouse.gov/news/releases/2002/02/climatechange.html
Committee on In October 2002, a cabinet-level Committee on Climate Change Science and
Climate Change Technology Integration was established that will take direct responsibility for
Science and operational oversight of the federal interagency programmes in climate
Technology change science and technology development. The Committee substructure
Integration includes the Climate Change Science Program and the Climate Change
Technology Program.
The National The Interim Report of the Cabinet Level Review of the US Climate Change
Climate Change Policy included a Presidential Directive to the Secretaries of Energy and
Technology Commerce to develop a National Climate Change Technology Initiative
Initiative (NCCTI) (NCCTI). As of October 2002, NCCTI is continuing its in-depth review of
federal research and development activities, and is developing approaches to
pursue advanced technologies that can yield cost-effective means to mitigate
the risks associated with climate change. NCCTI will find creative ways to
motivate the development of innovative technologies, a process of open
solicitations for technologies to compete against each other using the criteria
of emissions reduction, avoidance, or sequestration potential is being
pursued. High priority technologies that are now being pursued include:
hydrogen-based energy systems, biofuels, low-speed wind turbines, fuel cells
for transportation, zero net energy buildings, CO, capture and geologic
sequestration, terrestrial sequestration research in forest management, and
agricultural land management.
2
In the 2002 in-depth review of the energy policies of the United States the IEA
stated:
The Government of the United States should:
x Acknowledge the influence of US emissions on global greenhouse gas
emission levels and climate:
x Quantify the impact of current energy-environment policies on projected
greenhouse gas emissions at the national and global levels.
x Develop specific targets for the control of US greenhouse gas emissions.
x -Complement current research and development efforts on climate-
friendly technologies with a policy framework, including economic
instruments, designed to achieve significant reductions in greenhouse gas
emissions over a specified period.
RESIDENTIAL/ Residential and commercial buildings consumed 36% of the nation’s energy in
COMMERCIAL 1999 and utilise almost two-thirds of all the electricity generated. The
production of energy consumed in buildings, primarily electricity, represents a
major source of acid rain, smog, and greenhouse gas emissions, and includes
47% of US sulphur dioxide emissions, 22% of nitrogen oxide emissions, and
35% of carbon dioxide emissions. The growth in the economy, as well as the
nation’s rising population is leading to more, larger, and better equipped
homes and commercial buildings, resulting in increasing energy consumption
in this sector. Introduction of new energy efficiency technology can have
significant economic and environmental benefits. In terms of economic
impact, Americans spend approximately one-quarter trillion dollars per year to
heat, cool, light and operate appliances and other equipment in buildings.
Sample of
Measures already
existing and/or
being improved
Buildings DOE develops, implements and co-ordinates the R&D to improve the energy
Research and efficiency of building components and integrated systems. Its R&D addresses
Development both the building envelope (walls, windows, roofs) and equipment (heating
and cooling equipment, lighting, etc.) and their integration into optimal "whole
building" designs. This "whole buildings" approach allows builders to
simultaneously reduce construction and energy costs and helps build energy
systems that deliver the proper amount of service (e.g. heating, cooling,
lighting, etc.) where needed. The approach also identifies ways that systems
can work harmoniously to provide increased energy and construction savings
as well as improve the quality and comfort of the buildings.
Weatherization The Weatherization Assistance Program provides cost-effective services to
Assistance low-income families who otherwise could not afford the investment in energy
Program efficiency, giving priority to households with elderly members, persons with
disabilities, and children. The programme has reduced the heating and cooling
costs of low-income households by weatherising more than 5 million homes
since its inception in 1976. A companion programme, called Weatherization
Plus, aims to expand the Weatherization Assistance Program from its current
focus on heating and cooling energy conservation in low-income homes to a
broader focus on whole-house energy usage and whole-community efforts.
The Weatherization Assistance Program is administered by the US
Department of Energy
http://www.Eren.doe.gov/buildings/weatherization_assistance/
Low Income Home The Low Income Home Energy Assistance Program (LIHEAP) is a federal
Energy Assistance block grant programme that helps low-income consumers pay the costs of
Program (LIHEAP) heating and insulating their homes in the winter, and cooling their homes in
3
the summer. Approximately 4 million low-income households receive
assistance through the LIHEAP each year. LIHEAP is administered by the US
Department of Health and Human Services. http://www.ncat.org/liheap/
Building During the 1970s almost all states and local governments established energy
Codes efficiency standards for new residential buildings. The 1992 Energy Policy Act
makes it mandatory for states to certify that their energy codes have been
updated to meet or exceed minimum levels of efficiency. To help states
update their codes law and ensure that codes are enforced, DOE is working
with state and local governments, home builders, and material suppliers to
improve energy code compliance. This is important since residential and
commercial buildings account for about 17% of US primary energy use. Two-
thirds of new US residential construction, amounting to some 900 000 homes
annually, falls under federal, state and local residential energy codes. Some
122 million square feet of additional commercial construction each year falls
under commercial energy codes. More information on buildings codes is
available at http://www.energycodes.gov/
In the 2002 in-depth review of the energy policies of the United States, the IEA
stated:
The Government of the United States should:
x Give priority to enhancing energy efficiency in the transport and building
sectors, notably by:
x Continuing to work with the states to strengthen building codes.
x Continuing to provide federal leadership through standards and guidelines
on products, buildings and systems designed to improve efficiency in
buildings.
Appliance Federal legislation mandates many appliance energy-efficiency standards.
Standards The 1987 National Appliance Energy Conservation Act (NAECA) sets
efficiency standards and establishes schedules for mandatory review of
standards for each product covered. By law the US must set standards at the
maximum improvement in energy efficiency that is technically feasible and
economically justified. Very detailed engineering-economic analyses keep the
requirements cost-effective for consumers. Since 1978, efficiency standards
have been established for a wide range of appliances. Residential products
covered under NAECA include refrigerators and freezers, room air-
conditioners, central air conditioners, furnaces, water heaters, washing
machines and dryers, and several other appliances. Some of these standards
set minimum energy efficiency levels, while others were prescriptive (for
example, washing machines were required to have a cold rinse option).
The 1992 Energy Policy Act amended NAECA to establish minimum
standards for commercial and industrial equipment, including commercial
heating and air-conditioning equipment, water heaters, and electric motors.
The standards revision process was modified in 1997. DOE improved, and
made more transparent, the standard-setting process, and developed a
comprehensive framework for standards analyses.
Since the process was revised, DOE has issued final rules for refrigerators,
refrigerator-freezers and freezers, room air-conditioners and electric ranges,
electric ovens and microwave ovens. For refrigerators, refrigerator-freezers
and freezers and room air-conditioners, DOE found that more stringent
standards were justified. The new standards for refrigerators, refrigerator-
freezers and freezers have been effective since 1 July 2001. The new room
air-conditioner standards became effective on 1 October 2000. DOE decided
4
not to institute energy efficiency standards for electric ranges, electric ovens
and microwave ovens. DOE determined potential estimated savings were not
sufficient to merit the added burden of costs to be placed on industry and
consumers.
In 2000, DOE published amended standards for commercial and industrial
fluorescent lamp ballasts that essentially require the use of electronic ballasts.
These standards will begin to go into effect in 2005. In 2001, DOE published
amended standards for washing machines, residential water heaters and
commercial heating, air conditioning and water heating equipment. The
washing machine standards will require a 22% reduction in energy use by
2004 and a 35% reduction in energy use by 2007. The residential water
heater standards will go into effect in 2004 requiring a 4% improvement in the
energy efficiency of electric water heaters and an 8% improvement in gas
water heaters. The standards for the commercial products cover 18 product
categories of commercial air conditioners, heat pumps, furnaces, water
heaters and hot water storage tanks. These standards will become effective in
2003.
Voluntary The US federal government is implementing a number of voluntary
Programs programmes in the residential/commercial buildings sector to accelerate the
adoption of highly-efficient building products, appliances and systems that can
significantly reduce energy use and GHG emissions.
These include, among others:
x Rebuild America
x Energy Star for Residential Market
x Energy Star for the Commercial Market
x Energy Star Labelled Products
Rebuild In Rebuild America, DOE is working with states and community partnerships
America to promote cost-effective energy efficiency investments in public housing,
commercial buildings, and multifamily residences. More than 465 partnerships
have been formed. Partnerships have completed nearly 420 million square
feet of building renovations and are committed to another 420 million square
feet of renovations. For more information about Rebuild America, visit
www.energystar.gov
Energy Star Energy Star for the Residential Markets programme provides guidance for
for Residential homeowners on designing efficiency into kitchen, additions, and whole-home
Markets improvement projects and works with major retailers and other organisations
to help educate the public. It also offers a web-based audit tool and a home
energy benchmark tool to help the homeowner implement a project and
monitor progress. Builders have constructed more than 55 000 ENERGY
STAR®-labelled new homes in the United States. For more information about
Energy Star, visit www.energystar.gov
Energy Star for The Energy Star for the Commercial Market leads building owners through a
Commercial comprehensive, five-stage strategy to capitalise on building system
Market interactions so as to maximise energy savings from a given amount of
efficiency investment. The programme works with more than 5 500
organisations across the country, and in 1999 introduced a system that allows
the benchmarking of building energy performance against the national stock.
For more information about Energy Star, visit www.energystar.gov
Energy Star The Energy Star® label is being used by EPA and DOE to promote products
Labelled and services that save energy and money and help the environment. The
Products Energy Star Labelled Products programme has been expanded in recent
years to more than 30 product categories. Examples of covered products
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include appliances, heating and cooling equipment, consumer electronics,
home office equipment, windows, lighting, water coolers, dehumidifiers,
ventilation fans, ceiling fans, business office equipment, roof products, etc.
More than 630 million products with the government-backed Energy Star have
been purchased to date and thousands of companies are to adopt more
energy efficient practices. For more information about Energy Star, visit
www.energystar.gov
Partnership for The Partnership for Advanced Technology in Housing (PATH) is an
Advanced industry/government partnership, led jointly by DOE and HUD (Department of
Technology in Housing and Urban Development), to speed the creation and widespread use
Housing, and of advanced technologies, and radically improve the quality, durability, energy
Building America efficiency, environmental performance and affordability of housing, both
existing and new.
Run by the DOE, the Building America is a R&D programme implemented
through a private-public partnership that provides systems integration R&D
solutions for product housing to develop the best efficiency design strategies
for new and existing buildings. The programme promotes active investigation
and use of systems integration R&D solutions by homebuilders. It unites
segments of the building industry that traditionally work independently of one
another. It forms teams of architects, engineers, builders, equipment
manufacturers, material suppliers, community planners, mortgage lenders,
and contractor trades. Currently, there are five teams comprised of a total of
more than 150 different companies.
Measures under The National Energy Policy contains several recommendations aimed
Consideration specifically at improving energy efficiency in the residential sector. They are
listed below.
Additional Funding The National Energy Policy recommends an increase in funding for the
for Weatherization Weatherization Assistance Program and the Low Income Home Energy
Assistance Assistance Program (LIHEAP).
Program and
LIHEAP
Expand Scope Regarding standards, the National Energy Policy recommends that the
of Appliance President direct the Secretary of Energy to:
Standards
x Take steps to improve the energy efficiency of appliances.
x Support appliance standards programme for covered products, setting
higher standards where technologically and economically justified.
x Expand the scope of the appliance standards programme, setting
standards for additional appliances where technologically feasible and
economically justified.
In the 2002 in-depth review of the energy policies of the United States, the IEA
stated:
The Government of the United States should:
x Develop a comprehensive package of measures to achieve quantified
targets for efficiency of energy end-use, including.
x The use of economic instruments wherever possible.
x Mandatory standards.
x Information programmes to raise public awareness of the benefits of
energy efficiency and conservation strategies.
x Deployment programmes to ensure appropriate advanced technology
enters the market in a timely manner.
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INDUSTRY Industry is one of the largest energy-consuming sectors, accounting for about
35% of all US energy use.
Sample of
Measures already
existing and/or
being improved
Industries DOE’s Office of Industrial Technologies has created partnerships among
of the Future industry, government and supporting national laboratories and institutions to
accelerate technology R&D and deployment. Through the Industries of the
Future Program, DOE works with the nation’s most energy-intensive industries
to develop and apply advanced, energy-efficient technologies, processes, and
practices. Eight energy- and waste-intensive industries (agriculture,
aluminium, chemicals, forest products, glass, metal casting, mining, and steel)
are currently involved in the programme. Two key elements of the Industries
of the Future strategy are an industry-driven document outlining each
industry's vision for the future, and a technology roadmap to identify the
technologies that will be needed to reach that industry's goals. Further
information on the IOF programme can be found at:
http://www.oit.doe.gov/industries.shtml
Best Practices The BestPractices Program works with industry to identify plant-wide
Program opportunities for energy savings and process efficiency. Through the
implementation of new technologies and systems improvements, companies
across the United States are achieving immediate savings results.
The programme provides:
x Informational resources and tools
x Technical assistance
x Demonstrated emerging technologies
Coverage includes industrial systems (such as compressed air, motors,
process heating, and steam systems) as well as plant-wide assessments
where plants are selected through a competitive solicitation process,
and these plants agree to a minimum 50% cost-share for implementing the
assessment. A BestPractices team conducts an on-site analysis of total
energy use. More information can be found at:
http://www.oit.doe.gov/bestpractices/
Industrial In the Industrial Assessment Center Program (IAC), teams of engineering
Assessment faculty and students from over 26 universities around the country conduct free
Center comprehensive energy audits or industrial assessments. They provide
Program (IAC) recommendations to eligible small and medium-sized manufacturers to help
them identify opportunities to improve productivity, reduce waste, and save
energy. This programme expands on, and supersedes the earlier Energy
Analysis and Diagnostic Centers. One-to-two day on-site energy,
environmental, and productivity audits are performed for participating
companies and factories. The federal programme provides funding for the
university teams; however all recommended plant improvements that are
adopted are financed by the participating private sector companies, usually a
plant employing between 20 and 499 workers. More than 8 000 audits and
assessments have been performed since 1978 and over $200 million in plant
investments have been made based on IAC recommendations. Information
about the IAC programme can be found at: http://www.oit.doe.gov/iac/
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NICE The National Industrial Competitiveness through Energy, Environment, and
3
Economics (NICE ) programme is a cost-sharing partnership between state
offices, industry, and the federal government. The grant programme provides
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funding to states and their industries for projects that develop and
demonstrate advances in energy efficiency and clean production technologies.
The programme selects projects through an annual solicitation and
competition ensuring the selection of highest benefit projects. State and
industry partnerships are eligible to receive a one-time grant of up to
$525 000. The industrial partner may receive a maximum of $500 000 in
federal funding. Non-federal cost share must be at least 50% of the total cost
of the project. In total, NICE³ has sponsored over 100 projects, with more
than half going to small businesses. Since 1991, NICE³ has leveraged $26.3
million in federal funds, with $81.8 million in state and industry funds.
http://www.oit.doe.gov/nice3/
Energy Star Energy Star for Industry is an EPA voluntary partnership programme that
for Industry enables industrial companies to evaluate and cost-effectively reduce their
energy use. It helps establish energy performance benchmarks, strategies for
improving energy performance, and provides technical assistance and
recognition for companies' reductions in energy. Energy Star for Industry is a
new initiative that integrates and builds upon the former Climate Wise
programme and offers a more comprehensive partnership for industrial
companies.
Measures under
Consideration
CHP Incentives The National Energy Policy contains a recommendation to direct the Secretary
of Treasury to work with Congress to encourage legislation that promotes
increased energy efficiency through combined heat and power (CHP) projects,
by shortening the depreciation life for CHP projects or providing an investment
tax credit.
PUBLIC SECTOR
Sample of
Measures already
existing and/or
being improved
Energy Efficiency In March 1994, a Presidential Executive Order 12902 called for reduced
and Water energy use in federal buildings. Under the order 12902, each federal agency
Conservation at shall develop and implement a programme with the intent of reducing energy
Federal Facilities consumption by 30% by the year 2005 compared to 1985 levels, based on
energy consumption per-gross-square-foot of its buildings in use, to the extent
that these measures are cost-effective. Various measures have been
implemented by individual federal agencies to reach this goal. The federal
government is well on its way to meeting this goal because, since 1985,
federal energy consumption has declined by almost 17%.
http://www.eren.doe.gov/femp/resources/exec12902.html
Energy-Efficient In August 2001, the President signed Executive Order 13221 regarding
Standby Power energy-efficient standby power devices. The Order directs federal agencies to
Devices purchase products that use no more than one watt in their standby power
consuming mode. If such products are not available, agencies shall purchase
products with the lowest standby power wattage. Agencies shall adhere to
these requirements where cost-effective and practicable.
http://www.eren.doe.gov/femp/resources/exec13221.html
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Measures under
Consideration
Information Several National Energy Policy recommendations are aimed at raising public
to the Public awareness on energy efficiency include:
x That EPA develops and implements a strategy to increase public
awareness of the sizeable savings that energy efficiency offers to
homeowners.
x That DOE explore potential opportunities to develop educational
programmes related to energy development and use. This should include
possible legislation to create public education awareness programmes
about energy.
x That DOE strengthen its public education programmes relating to energy
efficiency.
x Develop an education campaign that communicates the benefits of
alternative forms of energy, including hydrogen and fusion.
TRANSPORT In 2001, the transportation sector consumed 27% of the nation’s energy and
accounted for two-thirds of our petroleum consumption. Over 95% of
transportation energy is derived from petroleum, transportation, and this
contributes significantly to the US need for imported oil.
Sample of
Measures already
existing and/or
being improved
FreedomCar The FreedomCAR and Vehicle Technologies (FCVT) Program partners with
Research industry, research entities, state governments, and other federal agencies to
Partnership support the development and use of advanced vehicle technologies and fuels
which could reduce, and eventually eliminate, the demand for petroleum,
decrease emissions of criteria air pollutants and greenhouse gases. In
FreedomCAR, the DOE works with the US Council for Automotive Research
(USCAR). The new partnership supersedes and builds upon the successes of
the Partnership for a New Generation of Vehicles (PNGV) that began in 1993.
It is, however, different in scope and breadth. FreedomCAR shifts
government research to more fundamental, higher risk activities, with
applicability to multiple passenger vehicle models and special emphasis on
development of fuel cells and hydrogen fuel infrastructure.
http://www.ott.doe.gov/freedom_car.shtml
Automobile Corporate Average Fuel Economy (CAFE) standards for cars and light trucks
Fuel remain in force. Vehicle fuel economy labelling is also an important
Efficiency component of the fuel economy programme. The current automobile standard
Standards is 27.5 miles per gallon (8.6 litres per 100 km), and the light truck standard is
20.6 mpg (11.4 litres per 100 km). Neither of these standards has changed
significantly since the mid-1980s. These standards played a significant part in
increasing automobile and light truck fuel efficiencies beyond spontaneous
industry trends, mostly between 1979 and 1982 but continuing through the
first half of the 1980s when some manufacturers exceeded CAFÉ standards.
Later, as real fuel prices started to fall, CAFÉ caused manufacturers to
accelerate use of more advanced technologies and manage their sales
(through marketing and pricing) so that their average fleet fuel economy
continued to meet the standards. Recent trends suggest little or no
improvement in overall fuel economy levels because of the increased market
share of light trucks and sport utility vehicles. CAFÉ standards have been
frozen by Congress during the three fiscal years (FY) 1996 to 1998. These
fiscal years correspond to model years 1998-2000 since the standards are
issued 18 months in advance of their implementation.
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Clean Cities DOE’s Clean Cities Program supports public–private partnerships that deploy
Program alternative-fuel vehicles (AFVs) and build supporting infrastructure, including
community networks. Clean Cities works directly with local businesses and
governments, guiding them through each step in the process of building the
foundation for a vibrant local organisation, including goal setting, coalition-
building, and securing commitments. Current and potential members of the
Clean Cities network also help each other by sharing local innovations,
addressing and relaying obstacles they encounter in pursuing alternative-fuel
programmes, and exchanging “do’s” and “don’ts,” based on experiences in
these programmes. Clean Cities continually pioneers innovations and aspires
to make strides nationally as well as locally.
Public The Commuter Choice Leadership Initiative is a voluntary employer-adopted
Transport and programme that increases commuter flexibility by expanding mode options,
Commuter using flexible scheduling, and increasing work location choices. Parking Cash-
Options Out offers employees the option to receive taxable income in lieu of free or
subsidised parking, and Transit Check offers non-taxable transit benefits,
currently up to $100 monthly.
Measures under
Consideration
Review CAFÉ The National Energy Policy recommends the President direct the Secretary of
Transportation to review and provide recommendations on establishing
Corporate Average Fuel Efficiency standards and look at other, market-based
approaches to increasing the national average fuel economy of new motor
vehicles.
Tax The National Energy Policy recommends the adoption of a tax credit for fuel-
Credits efficient vehicles as well as a temporary, efficiency-based income tax credit for
purchase of new hybrid fuel cell vehicles between 2002 and 2007.
In the 2002 in-depth review of the energy policies of the United States the IEA
stated:
The Government of the United States should:
x Give priority to enhancing energy efficiency in the transport and building
sectors, notably by:
- Strengthening CAFE standards.
- Reviewing the range of options available to improve the fuel economy of
personal and light-duty vehicles, including the possibility of increased
reliance on diesel engines following the introduction in 2006 of low-sulphur
diesel.
MONITORING/
EVALUATING
AND ADJUSTING
Emissions There are several mechanisms for monitoring emissions and sequestration
trends. In addition to various official bodies which continuously gather and
analyse data on energy production and consumption and greenhouse gas
emissions, electricity utilities and companies participating in voluntary
programs to undertake continuous monitoring and report on their efforts to
reduce greenhouse gas emissions http://www.epa.gov/
Energy The Energy Information Administration (EIA), created by the US Congress in
Statistics 1977, is a statistical agency of the Department of Energy. EIA provides
Reporting policy-independent data, forecasts, and analysis for use by the public, and
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policymakers. EIA produces a wide range of energy and energy-efficiency
publications, based on sound statistical surveys and data analysis.
http://www.EIA.doe.gov/
Voluntary The Energy Information Administration (EIA) in the Department of Energy
Reporting of GHG manages a voluntary registry programme for GHG emission reporting
Emissions (referred to as the 1605b programme). Under this programme, provided by
Section 1605b of the Energy Policy Act of 1992, more than 200 companies
have voluntarily reported their GHG emissions to EIA. The most recent report
published by the EIA in February 2002, reports that through voluntary actions
participating companies had reduced emissions by 73 million metric tonnes of
carbon equivalent in 2000, approximately 3.8% of total US greenhouse gas
emissions. Information of the 1605b programme can be found at:
http://www.eia.doe.gov/oiaf/1605/frntvrgg.html
Enhancing DOE’s Improvements are being investigated for creating a comprehensive and
Registry of GHG transparent programme to register and credit real greenhouse gas reductions.
Emissions and The new registry programme will achieve the objective of "measurement
Emission accuracy, reliability, and verifiability". Proposed improvements also include
Reductions developing fair, objective and practical methods for reporting baselines,
calculating real results, and awarding transferable credits for actions that lead
to real greenhouse gas reductions. After completion of this process that will
fully engage the many stakeholders who are concerned about climate change,
DOE plans to adopt new guidelines by January 2004, for reporting 2003
annual data. Information on efforts underway to enhance DOE GHG
emissions registry is found at:
http://www.pi.energy.gov/enhancingGHGregistry/index.html
Energy As part of the implementation of the National Energy Policy, DOE is
Intensity developing a new web-based system for information on trends in energy
Indicators intensity. This energy intensity information is being developed for the public,
System policy analysts, and policy makers. Energy intensity indicators are
constructed at the economy-level, as well as at lower sector levels (buildings,
industrial, transportation, electric power), sub-sectors, and for selected
categories of end-use. One example is “space-heat use and efficiency
indicator” (space heat energy per unit of home floor space). The new energy
intensity indicators system will be available in early 2003.
Further For further information, please contact:
information
Jeff Dowd
Office of Energy Efficiency and Renewable Energy
US Department of Energy/EE3B
1000 Independence Ave, SW
Washington, D.C. 20585
Tel: +1 (202) 586-7258
fax: +1 (202) 586-2176
email: Jeff.Dowd@ee.doe.gov
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