COMMISSION STAFF WORKING DOCUMENT Good practice in energy efficiency Accompanying the document Proposal for a Directive of the European Parliament and of the Council amending Directive 2012/27/EU on Energy Efficiency - Hoofdinhoud

Council of the European Union

Brussels, 2 December 2016 (OR. en)

15091/16

Interinstitutional File: ADD 9

2016/0376 (COD) i

ENER 413 ENV 754 TRANS 473 ECOFIN 1149 RECH 340 IA 124 CODEC 1789

COVER NOTE

From: Secretary-General of the European Commission, signed by Mr Jordi AYET PUIGARNAU, Director

date of receipt: 1 December 2016

To: Mr Jeppe TRANHOLM-MIKKELSEN, Secretary-General of the Council of the European Union

No. Cion doc.: SWD(2016) 404 final - PART 4/4

Subject: COMMISSION STAFF WORKING DOCUMENT Good practice in energy efficiency Accompanying the document Proposal for a Directive of the

European Parliament and of the Council amending Directive 2012/27 i/EU on Energy Efficiency

Delegations will find attached document SWD(2016) 404 final - PART 4/4.

Encl.: SWD(2016) 404 final - PART 4/4

15091/16 ADD 9 GL/st

EUROPEAN COMMISSION

Brussels, 30.11.2016 SWD(2016) 404 final

PART 4/4

COMMISSION STAFF WORKING DOCUMENT

Good practice in energy efficiency

Accompanying the document

Proposal for a Directive of the European Parliament and of the Council amending Directive 2012/27 i/EU on Energy Efficiency

{COM(2016) 761 final i}

Contents

Glossary and abbreviations ..................................................................................................................... 4

• 1. 

  Energy efficiency policy works ........................................................................................................ 5

1.1. Executive summary ................................................................................................................. 5

1.2. Introduction ............................................................................................................................. 6

• Decoupling of energy consumption/GDP is achieved ............................................................. 6

• Decoupling: what happened and how it happened ................................................................ 7

• Energy efficiency opportunities: policies are working to a large extent and more could be done ............................................................................................................................................... 11

• 2. 

  Cross-cutting measures to support energy efficiency ................................................................... 13

2.1. Energy Efficiency obligations ................................................................................................. 13

• Policy context ........................................................................................................................ 13

• Project feedback on Energy Efficiency Obligations ............................................................... 14

• Key findings ........................................................................................................................... 18

2.2. Informing and empowering consumers through metering and billing ................................. 19

• 3. 

  Energy efficiency in buildings ........................................................................................................ 24

3.1. Renovations ........................................................................................................................... 27

• Long-term renovation plans and strategies .......................................................................... 27

• Promising stories of deep renovations initiatives ................................................................. 28

3.2. Minimum energy performance requirements create a market and trigger innovation ....... 31

• Introducing Nearly-Zero Energy Buildings (NZEB) into everyday life .................................... 35

• Checking and enforcing compliance with energy performance requirements ..................... 37

• Minimum energy performance requirements when selling or renting a property as strong market driver ................................................................................................................................. 37

3.3. Energy performance certificates- standardised information increases market visibility and

transparency ...................................................................................................................................... 38

• Best-practices improving the quality, transparency and/or reliability of EPCs and making EPC more user-friendly for different kinds of stakeholders .......................................................... 39

• Electronic databases for wider access and use of EPC data .................................................. 44

3.4. Cross cutting issues ............................................................................................................... 48

• Single energy performance calculation methodology for multiple users ............................. 48

• Making energy efficiency a win-win game (best practices in addressing split incentives) ... 49

• Tackling fuel/energy poverty e.g. in residential accommodation such as social housing .... 51

• Best practices on skills improvements of buildings professionals ........................................ 53

• Smart homes& buildings – not a distant future (IT solutions for better buildings energy performance, multiple benefits for occupants and better integration of the building in the energy system) .............................................................................................................................. 57

• 4. 

  Energy efficiency in industry, businesses, and services ................................................................ 61

4.1. Industry .................................................................................................................................. 61 • Energy audits ......................................................................................................................... 61

• Energy efficiency networks, benchmarking, and voluntary agreements .............................. 64

• Support to sustainable energy use and waste heat recovery in processing industries ........ 67

• Contribution of environmental legislation to energy efficiency in the industry sector ....... 71

4.2 Service sector ........................................................................................................................ 72

4.3 SMEs as a specific target group ............................................................................................. 75

4.4 Agriculture and rural areas .................................................................................................... 80

• 5. 

  Energy efficiency of products ........................................................................................................ 84

• 6. 

  Setting the right public policy framework ..................................................................................... 88

6.1. Energy efficiency targets drive the transition ....................................................................... 88

6.2. Coordinating energy efficiency efforts – multi-level governance ......................................... 95

6.3. Capitalising on energy efficiency multiple benefits .............................................................. 98

6.4. Exemplary role of the public sector .................................................................................... 101

• 7. 

  Energy efficiency investment market: On the move! ................................................................. 107

7.1. Effective use of public funds to mobilise EE investments ................................................... 108

7.1.1 Loan schemes co-financed by public funds ........................................................................ 110

7.1.2 Risk-sharing instruments .................................................................................................... 115

7.1.3 Grant schemes .................................................................................................................... 120

7.2. Aggregation and assistance ................................................................................................. 122

7.2.1 Assistance to facilitate the use of Energy Performance Contracts .................................... 124

7.2.2 Key role of project development assistance for aggregation of small scale projects into investible packages. ..................................................................................................................... 126

7.2.3 Innovative financing schemes for energy efficiency .......................................................... 129

7.2.4 Capacity building and stakeholder dialogue ...................................................................... 134

7.3. De-risking energy efficiency – creating the market ............................................................ 135

7.3.1 Standardisation of energy efficiency increases investors' confidence .............................. 136

7.3.2 Making energy efficiency attractive for institutional investors ......................................... 137

7.3.4 Refinancing energy efficiency assets .................................................................................. 139

Annex I: National policies and measures identified as successful policies in the ODYSEE-MURE ..... project ............................................................................................................................. 143

Annex II: Overview of good practices per Member States as identified by the CA EED ................ 146

Annex I: National policies and measures identified as successful policies in the ODYSEE-MURE project

Selected Member States

Overall scoring (most successful energy efficiency measures with the two highest average scores per EU Member State)

Source: ODYSEE-MURE (2015): Synthesis: Energy Efficiency Trends and Policies in the EU

145

Annex II: Overview of good practices per Member States as identified by the CA EED

Country Title Theme Outcome

Austria Measuring Impacts - Energy Counselling - Public Sector At the moment, the calculation method is used for reporting for the Energy Services Austria (CT2) Directive (ESD) only.

Austria Consumer Information - Information Consumer Guidebook, distribution of guidebook via Austrian Ministry of Economy, Family and Youth, campaign on energy management Information (CT6) the Austrian Energy Institute for Business, Austrian Chamber of Commerce and the systems for SMEs - Austria Federation of Austrian Industries

Belgium Article 4 building renovation strategy -

Brussels Capital Region NEEAPs (CT1) n/a

Bulgaria Energy Efficiency for Competitive Industry Still the project is at an early phase of implementation and no results are available. It is

Financing Facility - Bulgaria Financing (CT4) expected that the programme will lead to high absorption rates of the SCF for energy efficiency in SMEs.

Croatia The interest in energy efficiency has significantly increased as well as implementation of EE measures by citizens. Public opinion surveys have revealed the following:

• number of citizens familiar with energy efficient products available on the market has

Consumer Information - Energy efficiency Consumer increased from 33,4% to 43,9%

information campaign - Croatia Information (CT6) • number of citizens using CFLs increased from 48% to 67,4% • number of citizens using A+ appliances increased from 22% to 30,8%

• number of citizens using low-e windows increased from 14,8% to 23,4%

In addition, the number of requests for subsidies from the Fund has increased significantly since the start of the campaign.

Croatia On-going

IPMVP obligation for public energy Energy Services It is expected that Measurement & Verification based on IPMVP in the public sector will performance contracts - Croatia (CT5) enable better evaluation of expected and achieved savings and eventually increase the trust in energy services, which could become the solution for large-scale refurbishment of the public buildings in stock

Czech Republic Energy audits - Czech Republic Energy Services There are more than 350 energy auditors and more than 1 500 energy audits are prepared

146

Country Title Theme Outcome

(CT5) annually.

Cyprus n/a n/a n/a

Denmark n/a n/a n/a

Estonia n/a n/a n/a

Finland EcoStart – Specialist Product Service for

SMEs - Finland Financing (CT4) The impact assessment on the outcomes and benefits will be carried out in 2013.

Finland The outcomes have been:

• ESCO seminars for ESCOs and potential clients (approximately every second year)

Energy Services - Finland Energy Services (CT5) • ESCO project register

• ESCO guidelines and brochures • Articles about ESCO service • Information dissemination by phone etc. •  Separate studies about ESCO service

Finland Public Sector - Towards smarter green Public Sector The key achievement will be the database, a sustainable public procurement excellence public procurement processes - Finland (CT2) network and a smoothly running Help Desk.

Finland The most important outcome about the project was to get reliable facts and results about the cost effectiveness of heat meters or heat cost allocators in apartments in Finland.

The topic i.e. heat metering in apartments, is not new in Finland but it has been under Study of Cost Effectiveness of Individual discussion and judgment for decades. The heat meters or cost allocators have faced

Heat Meters and Heat Cost Allocators in Metering and mistrust and critics for many reasons (listed e.g. in the statement of Technical Board of Apartment Buildings - Finland Billing (CT3) Helsinki City 1.4.2008) though cost effectiveness have not been lately studied in deep

details like in this study.

Now the study, that was focusing clearly to the direct costs, shows the heat meters and cost allocators in apartments not to be cost effective in the Finnish circumstances (taking into account the state of energy efficiency, typical HVAC solutions in apartment buildings and

147

Country Title Theme Outcome

the climate in Finland). So the result of the study confirms the previous views and positions of the issue.

The study will give a clear indication to the authorities when formulating the energy efficiency law for implementing EED.

France • The key achievement is the NEEAP itself, and the comprehensive overview it gives about our energy efficiency policies. The evaluations in the NEEAP (especially TD calculations using EC recommended methods) are also very helpful to identify

Writing the French 2014 NEEAP - France NEEAPs (CT1) sectors generating most energy savings, and sectors where more efforts are needed.

• The NEEAP is a very useful communication tool for us. After its publication in spring 2014, we will update a synthesis brochure, with the communication team of the ministry, like we did after our 2nd NEEAP.

France At the national level, by the end of 2011:

• 67 000 households with low incomes benefitting from energy savings (~2 200 dwellings refurbished per month) • 15 000 local jobs created or maintained • ERDF Average funding: EUR 2 886 per dwelling, representing 14% of the investment • Global investment: EUR 1.1 billion • Estimation of energy savings per year per households: - A 40% reduction in energy consumption

The use of ERDF funds in France for EE in - EUR 360-1000 saved per year

social housing - France Financing (CT4) Energy consumption of dwellings before and after refurbishment:

148

Country Title Theme Outcome

(source USH)

For the first call for proposals, projects have been completed recently: the follow up is going on.

France Main outcomes :

• Connection of 69 buildings to a centralized management system ; • Installation of condensation boilers in 17 buildings ; • Connection of 2 buildings to a heat network

Financing - Energy Performance • Installation of wood-fired boilers in 2 schools

Contracting for Public Buildings - France Financing (CT4) • Installation of 38sqm of solar thermal panel for hot water production at the central kitchen

• Installation of heat pumps in 13 buildings • Replacement of all 284 doorframe of the Frédéric Mistral school

Expected benefits : 17% reduction in primary energy consumption and EUR 177 000 savings for the city

France Some results of the project:

‐ the building of 6 biomass boiler rooms,

Financing - Energy Performance ‐ the installation of PV panels on 12 schools.

Contracting for Schools- France Financing (CT4) ‐ the connecting of one school to a low carbon heat network,

‐ the improvement /optimization of lighting and heating management in all schools.

The Koeberlé de Sélestat school benefited from a 4,3 M€ investment to build a wood-fired boiler room and isolate the

France Project is on-going

Financing - Technical Assistance - France Financing (CT4) The expected benefits of the project are delivery of important energy savings and emissions reductions for 1/6 of Paris’ schools and creation of a new culture for energy efficiency for all the pupils, teachers and parents involved in these schools

Germany Approach for the chapter on the market NEEAPs (CT1) Information basis for the assessment of the market for energy services and therefore also a for energy services in the next NEEAP - basis for the detection of challenges and a further development of the market for energy Germany services.

149

Country Title Theme Outcome

Germany Energy-Atlas Bavaria (Energie-Atlas Energy Services

Bayern) - Germany (CT5) Project is on-going

Germany Financing - KfW Energy Efficient Financing (CT4) Positive Promotional Effects in 2012:

Construction and Refurbishment - • 360 000 housing units reached with promotion

Germany • 370 000 jobs created or secured (estimation) • energy savings of 2 200 GW

• CO 2 savings of 770 000 t/a • positive effect for public budget due to tax income and social security contributions: investment activities and job creation result in a high degree of self-financing of the promotional programs due to backflow of funds to the public budget

Greece • Contribution to the country's energy security supply

• Increase employment • 1700 employers • 500 engineers (4 000 engineers are involved as energy inspectors, consultants, sub-contractors, etc)

Saving Energy at Home - Greece NEEAPs (CT1) • 300 bank employers • Until now: more than EUR 600 million have been distributed

• Increase population awareness regarding energy saving issues • Reduce energy poverty, Improve thermal comfort and quality of life • The average energy consumption decrease is about 43% (164 kWh/m2) • Energy savings accounts approximately to 1.200 euro / year • Total annual energy saving is estimated at 712 GWh based on the 42 780 applications completed so far

Hungary n/a n/a n/a

Ireland Kilbarrack Fire Station: Worlds first Carbon Neutral Fire Station

• 92% Water reduction The Green Plan - Ireland NEEAPs (CT1) • 97% Gas reduction

• 80% Electrical reduction • 100% Organic waste reduction • 60% Domestic waste reduction

150

Country Title Theme Outcome

• 5 working Bee Hives and an allotment • Sick Building Syndrome eradicated • Better place to work – Fire Crews as Stakeholders • Link with Retired members restored

Dublin Fire Brigade • 44% Energy reduction across estate • €11M tax payer money saved • €3.6M investment from ring fenced fund • Sustainability Report signed into Dublin Law • First Commemorative Garden for Deceased Members created

Ireland • Over 270 large Central Government buildings actively participating in the

Optimising Power at Work - Ireland NEEAPs (CT1) campaign. • Average annual energy savings of 20.4% currently being achieved (Sept 2015).

• Approximate annual cost savings of EUR 4.9 million • Programme now being expanded into the wider public sector.

151

Country Title Theme Outcome

Ireland

Organisation Projects Energy Reduction Savings kWh CO 2 T/YR

PwC HVAC and BEMS 35% 35% upgrade

Citi Bank Energy Management, 4 GWh 35% CHP and DH – EPC

Charlotte Quay Apartments CHP and district 120 000 30 heating

Westcourt Management BEMS & Lighting 40 000 20 Services Retrofit Royal Victoria Eye & Ear CHP and energy 120 000 71 Hospital efficient upgrade – ESCO

Good Practice Energy Case Studies in Dublin Port Company Boiler House N/A 134

Dublin City - Ireland Refurbishment & Ventilation Controls

Retrofit An Post, Delivery Service Unity Lighting – High Bay 442 250 237 Cardiff Lane

The Mansion House Solar PV Thermal 108 000 28

Brasserie 7 Energy efficient 100 000 50 lighting (LED), Building

Management System upgrade, Energy bureau

Dublin Bus Staff awareness and 110 000 50 Energy Efficient

Lighting

152

Country Title Theme Outcome

Ireland On average, businesses make an 11% energy savings through this programme and the benefit is straight to the bottom line. To date businesses participating in the programme have shared savings in excess of EUR 50 million

The key opportunities for energy savings among many participants are in the following areas. Many of these can be implemented at relatively low cost:

• Energy management practices – becoming more organised about understanding & monitoring energy performance and taking action to exploit opportunities for savings.

Energy Services - Small Medium • Lighting – switching off, changing to more efficient fittings, daylight & occupancy

Enterprise (SME) Business Programme - Energy Services sensors, e.g. 16% electricity saving (EUR 4,700 saving per annum) in a school by Ireland (CT5) replacing light fittings;

• Refrigeration, heating, ventilation & air conditioning – designing, procuring, operating, maintaining & controlling these systems more efficiently, e.g. refrigeration can account for up to 65% of consumption in the retail sector.

Range of Savings

Although the average annual energy saving attributable to participation in the programme is over 11%, the range of savings enjoyed by specific participants varies significantly:

• 82% of participants save at least 5%; • Over half make at least 10% savings; • Nearly a third saves more than 15%.

Italy Renewable Technology for Improving

Energy Efficiency in Greenhouses - Italy NEEAPs (CT1) n/a

Italy TREND (Technology and Innovation for Almost 90 works for improving energy efficiency of SMEs.

energy saving and efficiency in SMEs) - Energy Services Italy (CT5)

4 000 toe saved

Successful promotion of a new professional skill (expert in energy management)

Latvia n/a n/a n/a

Lithuania n/a n/a n/a

153

Country Title Theme Outcome

Luxembourg Smart Metering Project - Luxembourg Metering and

Billing (CT3) n/a

Malta n/a n/a n/a

Netherlands Customer-friendly Individual Heat Metering and

Metering - Netherlands Billing (CT3) n/a

Netherlands Financing - Green Fund Scheme -

Netherlands Financing (CT4) n/a

Netherlands Friendly energy audit in the framework of Energy Services

Voluntary Agreement - Netherlands (CT5) n/a

Poland n/a n/a n/a

Portugal Energy Audits - Portugal Energy Services • By the end of February 2013, DGEG (Directorate General of Energy and Geology) (CT5) had approved 649 PREn (Energy Consumption Realisation Plan) which became ARCEs (Realisation Agreement for Energy Consumption).

• The implementation of these ARCEs will lead to a reduction of 80 769 toe in energy consumption and 291 903 t CO 2 of GHG.

• Excise duties exemption (ISP) amounts to around 5,9 M Euro/year. • Facilities that are in compliance of SGCIE are equivalent to 1,389 Mtoe and represent 24% of final energy consumption in the sectors of Agriculture and Fisheries, Mining, Manufacturing and Construction and Public Works.

Portugal Qualification System of Energy Services Energy Services The Program aims to achieve a 30% improvement in energy efficiency in public services and Companies - Portugal (CT5) bodies of Public Administration by 2020.

Romania n/a n/a n/a

Slovakia Measuring Impacts - Energy Saving We know how much energy is used in highways and that, even though energy savings are Public Sector

Caluation from Highways - Slovakia (CT2) not the top priority for highway planning, there are some measurable savings which can be achieved.

154

Country Title Theme Outcome

Slovenia n/a n/a n/a

Spain • Detailed and comprehensive overview of national building stock. Segmentation of the housing stock in building clusters according to building characteristics, which allows the definition of targeted renovation measures. Consideration of climatic zones. Clear identification of the different set of upgrading measures for the different building clusters (insulation, window replacement, heating/cooling system, etc.).

Article 4 renovtion strategy - Spain NEEAPs (CT1) • Ambitious concept of “deep renovation”: expected saving from 70-90%. • Clear description of current (2014) policies and programmes to support building

renovation. Nearly parallel definition of policy measures (8/2013 Law, 2013 State Plan) and the process of drafting the Renovation Strategy.

• Identification of bottlenecks and precise definition of required measures for the future, in order to achieve the Strategy Objectives.

• Clear picture of the different scenarios for renovation, including total funding (private and public) required and the evaluation of impact in employment, CO 2

emissions, energy savings, etc.

Spain Energy Services - Spain Energy Services

(CT5) Project currently under development, so far no outcome yet.

Sweden The municipal energy and climate advisors are increasingly known and used by the target groups. Citizens are more active in making contact with them than SME’s. The local advisors are, together with the regional agencies and supported with national training programmes, developing strategies and schemes to actively reach SME’s.

Recently, a survey has been conducted, where individuals who were given energy advice via

Consumer Information - Local energy Consumer telephone during 2008 and 2009 were interviewed twice, one and two years respectively advice - Sweden Information (CT6) after the advice was given.

The survey showed that 78% of the interviewees had taken action to save energy (behaviour change and investment). 39% of these had made a change of their heating

system, among other actions.

The single most important source of information for these people in influencing their decisions was the municipal energy and climate advisor (26%).

155

Country Title Theme Outcome

Sweden Technology procurement for the building

sector - Sweden NEEAPs (CT1) n/a

UK Article 4 renovation strategy - UK NEEAPs (CT1) Building regulations have achieved ongoing replacement of inefficient boilers that have contributed to a significant reduction in domestic energy use.

All of the supplier obligation targets met and exceeded as part of phases 1,2 and 3 of the Energy Company Obligation

Implementation of the Minimum Energy Efficiency Standard Regulations for the Private Rented Sector (April 2016)

Provision of the Energy Saving Advice Service – a telephone advice line providing

independent advice on energy efficiency refurbishment – receives on average more than 20

000 calls a month.

Step by step energy efficiency scheme “Warmer Homes Scotland” launched covering advice to installation

Funding for household energy efficiency targeted at the worst performing homes through the Nest scheme in Wales.

UK Energy Services - Green Deal - UK Energy Services Project is on-going

(CT5)

UK Financing - EU Structural Funds and Financing (CT4)

Technical Assistance - UK Project is on-going

UK Use of ERDF funds in England for energy Financing (CT4) Delivery of project outputs, including efficiency in social housing and supply • 410 business assists,

chain development - UK • installation of 787 measures on social housing, • reduction of 1114 tonnes of CO 2 ,

• creating or safeguarding 360 jobs and GBP 20m GVA. Source: CA EED (2015) and country good practice factsheets. Available at: http://www.ca-eed.eu/country-information

156

Met de EU Monitor volgt u alle Europese dossiers die voor u van belang zijn en bent u op de hoogte van alles wat er speelt in die dossiers. Helaas kunnen wij geen nieuwe gebruikers aansluiten, deze dienst zal over enige tijd de werkzaamheden staken.

De EU Monitor is ook beschikbaar in het Engels.