ENSPOL PLATFORM

Description of Planned Schemes

The ‘Description of Planned Schemes’ deals with the planned, new Energy Efficiency Obligation Schemes (EEOs) within the European Union Member States (MS), as requested for the implementation of the Article 7 of the Energy Efficiency Directive. The MS explored in this report, that have declared their plans to adopt an EEO scheme (often linked to alternative measures) are Austria, Bulgaria, Estonia, Hungary, Lithuania, Luxembourg, Malta, Ireland, Spain and Slovenia. This report is the sequence of the detailed analysis of the already, existing schemes in the United Kingdom, Belgium, France, Denmark, Italy and Poland.

The European Commission DG Energy study evaluating the national policy measures and methodologies to implement Article 7 of the Energy Efficiency Directive (Ricardo AEA, CE Delft and REKK; February 2015) indicates clearly that “Energy Efficiency Obligation Schemes (EEOs) are the most important type of policy measure adopted by MS in terms of energy savings – 40% of the expected cumulative energy savings across all MS are expected to be generated from the implementation of EEOS, far more than any other type of policy measure”. The table below summarizes the key characteristics of this important policy instrument in the explored MS. This table points out immediately that in contrast to the EEOs popularity as a policy instrument, the actual design of the EEO scheme is yet limited described in the MS notifications. In addition, the stakeholder consultation within MS indicated that the actual implementation of EEOs can still change compared to the original concept for the reason they were initially designed. We therefore want to emphasize that this report describes the situation in the MS as it was known by December 2014, while few updates are envisaged by the end of 2015.

From the summary table, it is clearly that improving energy efficiency is the main driver of the new EEO schemes, in contrast to existing schemes like the UK where CO2 savings and limiting fuel poverty are also important. The main obligated parties are energy suppliers, followed by energy distributors who will realize efficiency improvement in different end-use sectors. Most MS allow obligated parties to generate savings in all end-use sectors, but the residential sector is often indicated as a preferred sector. Concerning the flexibility mechanism, trading of certificates/credits is often allowed, at least as an option,although the trading conditionsare not yet described in detail.

The EEO schemes are described more into detail for each MS individually in the full report.

Country		Spain	Malta	Lithuania	Estonia	Slovenia
*Policy objectives of EEO*		Improve energy efficiency in frame of EED	Improve energy efficiency by reducing primary energy consumed.	Final concept of EEO is still unclear. Improve energy efficiency, reduce the negative impact on the environment	EEO is a considered option to maintain final energy consumption at 2010 level	Reduce final energy savings
*Design of EEO*
	Target (savings) per year	ktoe final energy savings per year.	2014-2020: GWh annual primary energy savings	No targets so far. General compliance with EED targets.	No targets set so far	2014-2020: GWh yearly final energy savings
	Scope - sector related	All sectors	Electricity consumers (households)	Mainly buildings and the industry, but focus unclear	All end-users sectors, besides transformation, distribution and transformation sectors	Households and commercial sector, incl. transport
	Type of measures	1st period: financial equivalent to savings will be paid by obligated parties to the National Energy Efficiency Fund. At a later stage: white certificates	Smart metering system & behavioral change from 2016; Progressive rising block tariff system from 2014 discouraging overuse; Free audits	Not proposed at this stage	Investment support; Contributions to the Energy Efficiency National Fund; information activities;…	Linked to financial mechanism "Eco-Fund" financing investments in energy efficiency
	Obligated parties	All traders of electricity, gas, liquefied petroleum gases and wholesalers operators of oil products, inclusive transport	Enemalta Corporation (monopoly electricity distributor)	Electric DSOs; Gas company; District heating companies	Energy distributors or retail energy sales companies in gas, electricity and district heating	Suppliers of electricity, heat, gas and liquid and solid fuels to final customers.
	Administrator	Managing authority: IDAE (Institute for Diversification and Saving of Energy)	Ministry for Energy and the Conservation of Water	Lithuanian Ministry of Energy – Coordinator of EEO Scheme, The Lithuanian Energy Agency – Administrator of EEO Scheme	Competition Authority	Responsible for the administration, report and verification of energy savinsg under the Scheme is the Slovenian Energy Agency.
	Penalty regime	Yes, exact level to be specified	Not proposed at this stage	Not proposed at this stage	Not proposed so far	Penalty foreseen but not specified, weighed based on infringement degree.
	Allocation of costs	Not specified at this stage	No cost recovery allowed. Enemalta will finance the smart meter roll-out.	Full cost recovery will be allowed	Not specified at this stage	Passed through the costumers via energy price. These funds will be transferred to the Eco-Fund.
	Flexibility	Certificates will be tradable if/when they will be implemented.	None proposed so far (trading is not relevant since one obligated party)	Not proposed at this stage	Not proposed at this stage	Flexiblity of financing: carry out measures or making payment to EcoFund
	Energy poverty	None proposed so far	None proposed so far	None proposed so far	Not proposed at thisstage	None proposed at this stage.

Country		Austria	Ireland	Bulgaria	Hungary	Luxembourg
*Policy objectives of EEO*		Achieve final energy savings targets in frame of EED	To stimulate an active and cost-effective market for energy savings.	2014-2020: 647,50 ktoe final energy savings	Final concept of EEO is not available; Final energy savings in frame of EED	Improve energy efficiency in frame of EED
*Design of EEO*
	Target (savings) per year	PJ total final energy savings over lifetime	GWh yearly primary energy savings ; three-year cycles	Not proposed at this stage. General compliance with EED.	Not available so far. General compliance with EED.	GWh final energy savings over lifetime
	Scope - sector related	All end-use sectors, but focus on households	Non- residential (75%), residential (20%) and energy poverty households (5%)	All end-use sectors, besides transformation, distribution and transmission sector	Not available so far	All end-user sectors, incl. transport
	Type of measures	Different types of incentives	Energy Credits for realised Primary Energy Savings. Grants mainly at the residential sector. Energy Efficiency National Fund for non-residential sectors and energy performance contracting.	Not described so far	Not available so far	Financial assistance and advice/audits to consumers
	Obligated parties	Retail energy sales companies of all energy carriers	Energy suppliers and retail energy sales	Energy traders, excl. transport	Not available so far	All electricity and gas suppliers
	Administrator	A monitoring and control body "Monitoringstelle" will be installed	Sustainable Energy Authority of Ireland (SEAI)	National Sustainable Energy Development Agency	Hungarian Energy and Public Utility Regulatory Authority	Ministry of Economy
	Penalty regime	0,20 €c per missisng kWh	Penalty set at multiple of 1.25 of the buyout price across all sub- sectors	None proposed so far	Not available so far	Yes, lower then 2€/MWh
	Allocation of costs	Cost recovery is not regulated in the Energy Efficiency Act	Not specified at this point, although expected that costs will be passed through to consumers via energy price.	Not available so far	Not available so far	Cost recovery is allowed
	Flexibility	Tendering and bilateral trading are possible	Exchange of Energy Credits between obligated parties. Buyout option up to a maximum of 30% of total cumulative target. Banking of savings.	Not available so far	Not available so far	Fungibility; Transfer between parties and years; Third parties
	Energy Poverty	Uplift by factor of 1.5 for savings achieved in energy poor households	5% of the target to be realised in households in fuel poverty	None proposed so far	Not available so far	None proposed so far