February 2020 - Newsletter

Dear readers,

With the submission of the final National Energy and Climate Plans (NECPs) of most Member States (MS) end 2019, many discussions question the types of support MS need to reach the EU Green Deal targets. The reality is that the EU is far from reaching energy efficiency targets in 2020, with energy consumption rising by 4% as of 2016 (following its reduction during the economic crisis period) when the targets would require 1%, meaning the 2020 energy efficiency targets could be missed by 4-6%. The same holds for 2021 – 2030 (see EUROSTAT projections), where despite some ambitious plans from MS, the current trend in energy savings is not enough and important uncertainties remain about the means committed for the coming years.

Next to why targets are likely to be missed, the question is how to come to the point where MS can design, implement, evaluate and cheer with their results. First and immediate answers could be simple: more capacity, awareness, financing, political will, as well as time to get real market transformation and trainings of future professionals. The EU provides a significant contribution in this field through funding various programmes such as Horizon 2020 and LIFE.

We, as IEECP, are glad to be participating and leading a handful of such initiatives, together with other renowned institutes, national and regional governments and their agencies. We strongly believe that time is not to be wasted. Public authorities, agencies and private stakeholders must make use of the best practices already tested around Europe.

In the energy efficiency field, the implementation, monitoring and evaluation of respective policies to address the various Articles of the Energy Efficiency Directive is an integrated process and all Member States can share their useful experiences.

There is a large variety of innovative financing tools for all governance levels where public funding is bridged with private funding, overcoming the known financing barriers and generating new markets or business models not yet considered or not largely developed, with the aim of reducing the overall costs to citizens. Energy costs are problematic for 50 million energy poor households in the EU. The solutions can again come from well-designed policies (such as the provisions of the EED Article 7), which can trigger service providers and utilities to develop business models and programmes helping the energy poor, often in partnership with local authorities or NGOs.

Energy efficiency should be at the core of policymakers’ mindset, with the Efficiency First principle determining their choices in developing energy policies, assessing on a fair basis what investments on the supply-side or the demand-side are the most cost-effective from the society’s point of view. IEECP’s role in this field is defined by its commitment to assist Member States in developing knowledge, capacity and tools in achieving the targets.

Many things will change, for the best, in 2020: you will find more publications available directly on our website, a more regular newsletter, and many project results shaped in an attractive format. Most publications are co-authored by IEECP and our partners in EU-funded projects. Because we think that collective intelligence is a way to find and disseminate better solutions faster.

The IEECP team

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TO READ

Fast and easy – briefings, factsheets and articles

e1st

Did you say efficiency first?

Enefirst partners bring a comprehensive yet clear and practical definition of the efficiency first principle, to identify policy areas where it can be applied to achieve the highest impact in terms of energy system benefits. The Horizon2020-funded project Enefirst will make the efficiency first principle operational in order to better understand its relevance for energy-related investments  and its broader impacts across sectors and markets, focussing on the buildings’ sector. Enefirst builds on the principle of “Efficiency First” (E1st), a fundamental principle applied to policymaking, planning and investment in the energy sector, which is enshrined in EU's Clean Energy for All  legislation package. Read more.

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Policy brief: PARIS REINFORCE modelling features and capabilities

The fundamental aim of the Horizon2020-funded project PARIS REINFORCE is to enhance and improve climate policymaking. In order to do this, the consortium has access to a range of sophisticated climate-economic scientific models. A key novelty of the project is its devotion to ‘demand-driven’ research. That is, the questions these models will provide insights into and the assumptions they will do this based upon are to be stakeholder-determined through an extensive and exhaustive process. Read more.

Furthermore, the project partners have already written 3 scientific publications, available on the project website.

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Turning your Sustainable Energy and Climate Action Plan into a strategic investment plan

The EU-funded project PROSPECT and the Covenant of Mayors Office jointly organised a conference in October 2019, in the framework of the EU Week of Regions and Cities, and with the support of the French Caisse des Dépots et Consignations. The cities discussed the following challenges: how to translate a city action plan into a strategic investment plan? how to decide which financing sources to use and how to mobilise them? The proceedings and presentations are now available. Read more.

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You have more time?  – reports and longer papers

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EPATEE

EPATEE provides policymakers and implementers policy evaluation tools and practical knowledge

This support is based on the analysis of existing evaluation experiences regarding a range of policy instruments, such as energy efficiency obligation schemes, regulations, financial incentives and voluntary agreements. Lessons learnt from these examples provided the basis for the development of guidelines and good practice evaluation tools. The Horizon 2020-funded project ended, leaving us with many interesting results & tools to look at. Read more.

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Efficiency First is not just another name for energy efficiency: enefirst defines and contextualizes the principle

Efficiency First (E1st) gives priority to demand-side resources whenever they are more cost-effective from a societal perspective than investments in energy infrastructure in meeting policy objectives. It is a decision principle that is applied systematically at any level to energy-related investment planning and enabled by an ‘equal opportunity’ policy design.

This definition that can serve as a basis for the project and its specific objectives, -that is, making E1st operational for the building sector and related energy systems -, was adopted by Enefirst partners following a background analysis, existing definitions and similar concepts such as ‘Integrated Resource Planning’(IRP) and ‘Energy Efficiency as a Resource’. The report discusses the application of the principle in six policy areas (renewable policy, energy efficiency policy, climate policy, power market rules, building policy and energy security) with reference to the main EU legislations in these areas. Read more.

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Monitoring guidelines for successful knowledge exchanges in the H2020 ENSMOV project

Establishing a successful knowledge exchange amongst Member States on issues related to Article 7 of the Energy Efficiency Directive (EED) is the main objective of ENSMOV. To ensure quality and timely reaction in constantly improving the programme, ENSMOV has set measurable targets, both tangible and intangible, for all the project strategic and operational objectives, which focus on the learning programme. Then, the specific objectives and appropriate targets were shaped into a performance framework and appropriate key performance indicators (KPIs) were developed for each. This document describes how KPIs were created, as well as all the activities that will be performed to obtain the monitoring results. https://ensmov.eu/monitoring-guidelines-for-successful-knowledge-exchanges/

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Article 7, Energy Efficiency Directive – Knowledge exchange and guidance needed to accelerate implementation

The implementation of Article 7 from the Energy Efficiency Directive (EED) by EU Member States (MS) has shown so far that public authorities have limited time and resources to coordinate experience sharing at the EU level. Article 7 requires MS to set up an energy efficiency obligation scheme, with energy companies achieving yearly energy savings of 1.5% of annual sales to final consumers. The H2020 project ENSMOV organised stakeholder consultations to find the most relevant issues faced for policy implementation as well as monitoring and verification, when implementing article 7. The results will allow refining the set of tools the project will provide to support policy implementation at national level (in 14 Member States) as well as the areas for which knowledge exchange among countries is required. 125 stakeholders participated to the consultation in 2019, from various sectors. Read more.

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A wealth of resources from PARIS REINFORCE

• Map of models, tools and stakeholder knowledge, documenting all model characteristics available in the PARIS REINFORCE team, assumptions behind models, their geographical and socioeconomic coverage, and detailed insights regarding methodologies, coverage of emissions, as well as mitigation and adaptation parameters.

• Mapping and description of national and regional models for Europe, presenting the five modelling tools used in PARIS REINFORCE.

• Mapping and description of national and regional models for countries outside Europe, describing in details the key attributes of the models that will be used in PARIS REINFORCE to develop and examine sustainable development and decarbonisation pathways for major and less emitting countries and regions outside of Europe (US, Canada, Mexico, China, India, Japan, Brazil, and the Central Asian Caspian region).

• 8 Global Integrated Assessment Modelling approaches (IAMs) are presented to provide a good overview of each of the documented models for a large variety of stakeholders of climate policymaking at the global level.

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socialwatt library

Status quo of energy poverty and its mitigation in the EU: report and interactive map

H2020 SocialWatt aims to enable obligated parties under Article 7 of the Energy Efficiency Directive across Europe to develop, adopt, test and spread innovative schemes to alleviate energy poverty. The purpose of this report is to establish the essential background setting in which the SocialWatt activities will be carried out. It therefore contains definitions and indicators available to measure energy poverty at European and Member State levels, studies on the national contexts for each of the 11 SocialWatt countries and a range of good practice examples that illustrate different approaches taken to alleviate energy poverty. It is completed by an interactive map. Read more.

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Rewarding energy efficiency for energy system services through markets: opportunities and challenges in Europe

Energy efficiency provides a diverse set of values to the energy system, some of which can be rewarded through mechanisms such as capacity markets and network procurement programmes and others which require dedicated energy efficiency programmes. To turn this set of values into bankable energy efficiency projects a number of steps need to be taken. This report, written by RAP, looks at different aspects of the energy sector and identifies the opportunities for rewarding energy efficiency for the value it provides to the energy system. It sets out the mechanisms by which that value can be rewarded and the changes, at the policy, regulatory and industry levels, that are needed to enable those rewards to be realised in a set of policy recommendations. The Horizon2020-funded project SENSEI will design, test and disseminate an innovative transaction model in Europe, to value buildings energy efficiency upgrades: pay-for-performance (P4P). Read more.

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BLOGS, INTERVIEWS & more

• IEECP’s Heleen Groenenberg writes a blogpost on how to unlock lasting value and the link to H2020 project TripleA, supporting financial institutions to increase their deployment of capital in energy efficiency, making investments more transparent, predictable and attractive for investors and financiers as well as project developers. In particular, the project is seeking to identify which investments can be considered as Triple-A investments, fostering sustainable growth, with the capacity to meet their commitments, already from the first stages of investments generation and preselection/ pre-evaluation. https://www.linkedin.com/pulse/how-unlock-lasting-value-heleen-groenenberg/

• Challenges and opportunities for implementation of article 7 of the EED: Dominique Osso, senior researcher at EDF-R&D and member of ENSMOV’s Policy Advisory Board answers three questions, reminding the importance of the project which will provide Member States with tools and experience sharing to implement the Energy Efficiency Obligation scheme. https://ensmov.eu/challenges-and-opportunities-for-implementation-of-art-7-of-the-eed-an-interview-with-dominique-osso/

• The 5th WCC Meeting was jointly organised by ENSMOV and the White Certificates Club. With around 70 participants from 12 countries, it provided an overview of the policies implemented by EU Member States for article 7 of the Energy Efficiency Directive. National level set ups and forecasts as well as snapshots of Energy Efficiency Obligation Schemes (EEOS) and alternative measures were presented. The first ENSMOV results were highlighted. All presentations are available: https://ensmov.eu/ensmov-and-white-certificates-club-seminar-about-eed-article-7/

• How to identify the best financing schemes by sector, define where and how to invest, with which partners and according to which priorities? Energy Cities PROSPECT partner provides arguments to make you enter the matrix: https://energy-cities.eu/will-you-enter-the-matrix/

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MEET US

• The Covenant of Mayors Investment Forum – Energy Efficiency Finance Market Place gathers in Brussels. Meet February 19: H2020 SocialWatt,14:45 to 15:30, in the strand: Energy companies designing and implementing schemes to alleviate energy poverty; H2020 PROSPECT will be presented by Vlasios Oikonomou from IEECP, 11.00 to 12.00, in the strand: Exchanging knowledge on innovative financing schemes with peers: some national and local experiences. H2020 TripleA partners NTUA and adelphi will join to explore previous experiences TripleA could exploit in developing its tools & benchmarks supporting the effective assessment of sustainable energy investments. http://www.ieecp.org/?event=covenant-of-mayors-investment-forum-energy-efficiency-finance-market-place

• IEECP’s Mia Dragović Matosović will participate in the EASME Contractors' meeting, on February 20, in Brussels, Belgium. The event gathers H2020 projects and allows sharing experiences, exchanging lessons learnt and best practices, as well as expand the network of experts working on financing and implementing sustainable energy measures.

• Are you interested in learning about smart financing instruments to unlock green investments in your city or region? Then join us in Wels, Austria on March 5 during the World Sustainable Energy Days for the H2020 PROSPECT workshop! Register now: http://bit.ly/PROSPECTWS

• The Energy Evaluation Europe 2020 conference will be held in London from 29 June to 1 July. Beyond its usual scope related to evaluation of energy efficiency policies, this year’s conference is broadening the discussions to energy transition’s policies and initiatives. Early bird fees are available until 30 March. For more details, see: https://energy-evaluation.org/2020-europe-conference/

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