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Toothless tiger? : Is the EU action plan on energy efficiency sufficient to reach its target?
(2007)
Motivated by, inter alia, the increasing energy prices, the security of energy supply and climate change, the new EU "Action Plan for Energy Efficiency: Realising the Potential" (EEAP), sets out the policies and measures required to be implemented over the next six years to achieve the EU's goal of reducing annual primary energy consumption by about 20 % by 2020. By increasing energy efficiency, the security of energy supply and the reduction of carbon emissions are also improved.
The paper will analyse the 20 % target of the new EEAP for the energy demand side by comparison with different recent energy scenarios for the EU. It will therefore review the recommended policies and measures and examine, in which energy demand sectors energy efficiency may be increased and to which extend. The main focus is whether the recommended policies and actions will be sufficient and which additional measures may be useful, if additional measures are needed.
About 2 % of the overall electricity consumption of the EU is caused by circulators in single or double family homes and flats. A new technology of pumps with electronically commutated (EC) motor pumps is available now; it is one possible way to achieve a reduction in circulator annual electricity use by 60 % or more.
The project's objective is a market transformation towards this new very energy-efficient pump technologies - Energy+ pumps - for circulators in heating systems, both stand alone and integrated in boilers. Only few manufacturers have so far introduced the new pump technology to the market for single or double family homes and flats.
To bring more products to the market from all major manufacturers, the project will adapt and apply the technology procurement methodology as it was very successfully tested in the European Energy+ project on energy-efficient cold appliances.
Large buyers will be aggregated, to activate the pump and boiler manufacturers. Sales and training materials and a sizing spreadsheet software for installation contractors will be developed and applied. A competition both for energy-efficient products and marketing campaigns will be organised and the information on the Energy+ pumps will be disseminated widely through website, newsletter, media, and fairs.
This paper gives a short overview of this project and presents the results of the first project phases: a European wide market study on circulators and heating systems, and the first Energy+ lists for circulators, buyers and supporters.
Based on a comprehensive scenario analysis of the EU's GHG emissions by 2020, we show that the 20% energy savings target set in the Action Plan "Doing more with less" in 2006 is still the most significant and thus indispensable strategy element within an ambitious EU climate and energy strategy targeting at a 30% reduction of GHG emissions by 2020.
The scenario analysis provides a sector by sector projection of potential future energy use and GHG emissions, combined with a detailed policy analysis of the core policies on energy efficiency by the EU and its Member States taken from current research results by the authors and others.
Consequently the paper identifies and quantifies the current implementation deficit in the EU and shows that, despite of sufficient targets, implementation is still significantly lacking in almost all fields of energy efficiency. Some, e.g. transport sector and buildings, are still substantially far from receiving the necessary political impetus. The paper also demonstrates co-benefits of a strong energy efficiency strategy, e.g. the achievability of the targets of the RES directive, which crucially depends on a strong efficiency policy.
We conclude that the efforts of the energy efficiency policy of the EU and its Member States have to be significantly intensfied. As proposed by the EU in case that other developed and key developing countries take up comparable targets in order to fulfil its role in the climate and energy strategy. To achieve this, we offer an analysis of the current weaknesses of EU energy efficiency policy and derive recommendations on how the EU can still reach its targets for 2020.
The German climate change programme (2000) identified the residential sector as one of the main sectors in which to achieve additional GHG reductions. Our case study compiles results of existing evaluations of the key policies and measures that were planned and introduced and carries out some own estimates of achievements. We show, which emission reductions and which instruments where planned and what was delivered until 2004.
Legal instruments such as the revised building code were introduced later than planned and their effects will - at least partly - fall behind expectations. Other legal instruments such as minimum energy performance standards for domestic appliances etc. were - in spite of the programme - not implemented yet.
On the other hand, substantial financial incentives were introduced. Especially schemes granting low-interest loans for building renovation were introduced. However tax subsidies for low-energy buildings were phased out.
In general we can conclude from our case study that Germany was not able to compensate for the slower or restricted implementation of legal instruments through the introduction of financial incentives. Particularly the efficient use of electricity has been left aside as almost no further policy action was taken since 2001.
Thus energy efficiency in the residential sector will not deliver the GHG reductions planned for in the German climate change programme until 2005. From our findings we draw conclusions and recommendations towards policy makers: Which lessons are to be learnt and what has to be done in order to fully harness EE potentials in residential sector as planned for 2010?
As many other countries, Germany misses to exploit most of its large potential for cost-effective energy efficiency improvements. An organisation collecting funds and allocating them to the most (cost-)effective programmes could be a solution.
Therefore, political parties and trade unions as well as environmental NGOs have called for the creation of such an Energy Efficiency Fund. A recent study by the Wuppertal Institute together with a number of partners, commissioned by the Hans Böckler Foundation, analysed the feasibility of such an institution.
It has been the objective of the project, completed in March 2005, to
identify the added value of an Energy Efficiency Fund,
develop concrete proposals for the institutional setting and the financing of an Energy Efficiency Fund in Germany,
prepare and assess the benefits and costs of a portfolio of innovative but realistic energy efficiency programmes and campaigns, which the Energy Efficiency Fund would implement,
identify the effects of the fundraising and the programmes on different industries, particularly on the suppliers of energy-efficient technologies and services, and on their growth and employment perspectives,
estimate the net employment effects of such an Energy Efficiency Fund and its activities.
This paper presents the results and assesses the usefulness of the project and the participatory elements for increasing the acceptance of such a policy instrument.
What are the best policies and measures to stimulate energy efficiency in buildings? The debate around this is at least as diverse as the markets and concepts for energy efficiency in buildings, and often quite controversial. However, no magic formula seems to have been found so far. It is, therefore, time to address the question in a new way - by combining both theoretical evidence on what policy support markets need, and empirical evidence on which combinations or packages of policies have worked.
In the context of its new four-year project bigEE - "Bridging the Information Gap on Energy Efficiency in Buildings", the Wuppertal Institute is implementing this new approach. The bigEE project aims at developing an international internet-based knowledge platform for energy efficiency in buildings. Hence, it must provide evidence-based information. On the theoretical side, the analysis starts with value chains in the building sector and the barriers but also actor-inherent incentives that the different types of market participants face. This enables to identify, which policies and measures need to be combined to jointly overcome the barriers and strengthen the incentives. On the empirical side, model examples of good practice are collected and compared. The search for these is guided by the results of the theoretical analysis, international expert opinion, and existing databases and platforms. In order to identify what is "good practice", the project uses a newly developed multi-criteria assessment scheme. Finally, the impacts achieved with the model examples, lessons learned, and their transferability will be used to validate the model policy package identified in the theoretical analysis.
The public launch of the bigEE platform is planned for autumn of 2011; eceee Summer Study participants will get a first glance at its content through this paper. The paper presents the methods and tools used and showcases their application for the case of new buildings
Conventional new buildings in OECD countries with a history of building codes save about 50 % of energy compared to average buildings in the building stock. This improvement, however, is not enough to create a building standard with low lifetime costs nor to reach long-term climate protection targets. Much higher energy savings can already be achieved through proven high-efficiency building concepts bringing net economic benefits among other advantages.
A strategic approach to integrated building design is the key to achieving these high-energy savings at low or no extra cost in residential buildings. In our paper we describe the "Easy Efficiency Approach", which can reduce primary energy consumption by 40 to 60 % compared to conventional new building standards, or by 70% to 80% when compared to the primary energy consumption of the existing building stock, and should be regarded as the minimum. This strategy focuses on low-cost options, mainly passive options. Although it can already significantly reduce energy consumption, this first step will not be sufficient to reach long-term climate protection goals. It is thus necessary to implement and support what we call an "Advanced Efficiency Approach", with savings up to 90% , as compared to new building standards, as soon as possible to avoid lock-in effects. Further improvements, especially through the active use of renewable energies, reduce the net primary energy demand to 0 % and beyond.
According to the chosen strategy clearly defined energy performance ranges, with reference to possible savings, for different climate zones worldwide are given. In verifying this approach simulations with BAT (Best Available Technologies) buildings of different types (single family, multi family, high rise) were carried out in close cooperation with project partners. This data has also been verified through an empirical database of built examples both for energy consumption as well their economic soundness.
Strategic policy packages to deliver energy efficiency in buildings : their international evidence
(2013)
The project "bigEE - Bridging the Information Gap on Energy Efficiency in Buildings" presents comprehensive information for energy efficiency in buildings and the related policy on the international internet-based knowledge platform bigee.net.
To develop the evidence-based information required for bigee.net, we addressed in a different and more systematic way than usual the question of how policy can support improved building energy efficiency most effectively: We combined (1) a theoretical, actor-centred analysis of market-inherent barriers and incentives for all actors in the supply and use chain of (energy-efficient) buildings to derive a recommended package combining the types of policies and measures the actors need to overcome all these barriers, with (2) empirical evidence on model examples of good practice policy packages to check if advanced countries have indeed used the combination of policies we derived from the actor-centred analysis.
In this way, we found that the recommendable policy package for new buildings is similar to the well-known one for appliances, but with the objective to mainstream nearly zero energy buildings. By contrast, the task for existing buildings is two-dimensional - increasing the depth of renovation first, to savings of 50 to 80%, and then the rate of energy-efficient renovation to 2% or more p.a. - and so the policy package needs more emphasis on individual advice, incentives, and financing. The paper presents the recommended packages as well as a comparison of existing national policy packages from California (USA), China, Denmark, Germany, and Tunisia and what we learned from it for effective packages and implementation.
What makes a good policy? : Guidance for assessing and implementing energy efficiency policies
(2013)
Which factors are crucial to successfully design and implement a "good practice" policy to increase the energy efficiency of buildings and appliances? This is one of the main challenges for the new web platform bigee.net that provides guidance on good practice policies.
In this paper we examine the question what "good practice" is by presenting a multi-criteria assessment scheme to analyse different policies worldwide.
The assessment scheme contains a set of criteria addressing key factors leading to the success of a policy as well as its outcomes: a good policy addresses all market players and barriers, avoids lost opportunities and lock-in effects, has ambitious and regularly updated energy efficiency levels, and spill-over effects. Other criteria are high energy savings and the calculated cost-effectiveness.
The assessment scheme provides a standardised data collection approach, which paves the way for both qualitative and quantitative evaluation. Furthermore, it can help policy-makers to transfer a successful policy.
The development of the scheme is based on a literature review of worldwide implemented policies and measures that promote energy-efficiency of buildings and appliances. Criteria were operationalized, including a ranking between 0 and 10. The ranking is a decisive factor whether the policy qualifies as good practice. To demonstrate the practicability of this scheme, the paper analyses a good practice example according to the assessment scheme: Energy-Efficient Refurbishment and Energy Efficient Construction programmes of the German public bank KfW.
Energy efficiency activities are high on the current EU energy policy agenda. Key policy instruments like the Energy Efficiency Directive (EED), the Energy Performance of Buildings Directive (EPBD) and the Energy Labelling Directive are under revision.
In a project for the German government, we therefore analysed the effectiveness and consistency of existing sectoral policy packages anew, to open the discussion on which policy changes to the EU's energy efficiency policy packages are crucial to reach the targets.
This comprehensive review addressed the industrial, buildings, and transport sectors plus the overarching governance framework (targets and roadmaps, EED, energy taxation and EU ETS). For each of these, the first step was a gap analysis of the main deficits in the sectoral policy packages, against effective model packages.
At first glance, the combination of energy efficiency policies at EU level seems already quite comprehensive. However, their design and implementation often lack a consistent and ambitious approach to leverage their full potential.
To give some examples of the many shortcomings identified, the governance framework suffers from exceptions and the transport sector being only marginally considered in the EED; an outdated Energy Tax Directive has very low minimum rates and several exception clauses; there is a lack of commitment to implement energy management systems and investment projects in large companies; a clear EU-wide definition of nearly zero energy buildings (nZEB) is missing; and the labelling of energy-using products is still confusing for consumers. Subsequently, we elaborated comprehensive policy recommendations to increase the effectiveness of all these policies, and to bridge some gaps with new policies. A list of priorities was established to sort them by their relevance.