Energy savings calculation (ESC) in France for energy savings certificates IEA-DSM Task XXI: Standardisation of Energy Savings Calculation 2 nd Experts Meeting March Paris, ADEME 1 AIE-DSM XXI Sub Task 1 France

Energy savings certificates o Overall presentation of the scheme o Process: stakeholders, role of different parties o Calculation rules 2 AIE-DSM XXI Sub Task 1 France

Energy savings obligation and certificates in France Introduced by the energy law of 2005 (Law”POPE” n° of July 2005) setting the main objectives of the energy policy; o In particular objective of reduction of the final energy intensity of the GDP by 2 % per year by 2015 and by 2.5 %/year by 2030 o Articles 14 and 15 of the said law introduced the energy saving obligation for energy utilities exceeding a certain volumes of sales and the possibility of trading the energy savings in excess of their obligation (energy saving certificates) Two periods o Period 1 (3 years) from July1st 2006 to June 30th o Second period : since June 30 th transitory period extending the previous approach by a government decree (n° of 26 June 2009 ); exact content and characteristics of this second period still under finalisation; work with provisional targets  First period specified through three government decrees : o Decree n° of May related to energy savings obligations within the energy certificate scheme; o Decree n° of May related to energy savings certificates; o “Arrêté” of September fixing the overall target and its allocation by type of energy

Energy savings certificates (ESC) in France: first period (1/3)  Obligation for energy suppliers with sales > 400 GWh/year for electricity, gas and heat and 100 GWh/year for LPG and all resellers of heating oil  Yearly obligation by supplier calculated from the overall target over the 3 years divided by 3 and according to their market share Energy savings defined as follows in the obligation: o In final energy o cumulated over the lifespan of the equipment or action; o discounted at 4% :both financial (economic value of ESC) and technical discount (gradual decrease in savings)  Savings express in kWh cumac (cumulated and discounted) Overall national target 54 TWhcumac over 3 years ( June 2006-July 2009) (electricity TWh, gas TWh, heating oil 6.84 TWh, LPG 1.53 TWh and heat 0.69 TWh) Example: savings with a freezer of A+ class, saving 50 kWh/year during 10 years are 420 kWh cumac and not 500 kWh (50*10).

Energy savings certificates (ESC) in France: first period: (2/3) Obliged" energy suppliers (“obliged parties”) can either implement actions to encourage energy savings investments or buy energy saving certificates. Obliged" parties are free to determine their own strategy for encouraging customer investments, such as technical advice or support, bonuses and financial services.; the energy savings can be obtained everywhere except from plants under CO2 quota Directive => whatever the sector, the energy source… To obtain ESCs corresponding to their activity, they file requests to the administration ( DRIRE), relating to the work performed or equipment purchased. To obtain an ESC, they need to open an account and register their savings in the national "Emmy" registry, delegated to a private company (International Locasystem).

White certificates in France: first period (3/3) Minimum value of certificate: 1 GWhcumac Companies and public authorities implementing programmes in their own facilities can also register savings and get certificates (minimal program size : 3 GWhcumac ) Exchange of certificates on the Emmy registry website, which facilitates contact between ESC buyers and sellers Energy savings must not be “business as usual” Penalty: max 20 €/MWhcumac

Energy savings certificates o Calculation principles and results 7 AIE-DSM XXI Sub Task 1 France

White certificates in France: standardisation of energy savings  Ex-ante evaluation of energy saving (no measurement) for standard operations and technologies or equipment  Existence of standard evaluations  Publicly available on Ministry web site  Each evaluation specifies: o the conditions of eligibility, o the conventional life time o and the amount of energy savings certificates  Energy savings defined as follows in the obligation: o In final energy o cumulated over the lifespan of the equipment or action; o discounted at 4% :both financial (economic value of ESC) and technical discount (gradual decrease in savings)  Savings express in kWh cumac (cumulated and discounted)

White certificates in France: example of information publicly available for standardised energy savings operations  Example : solar water heater:  Eligibility : need of a certification (CSTBat, Solarkeymark) and installation by certified companies ( Qualisol).  Conventional life time : 15 years.  Amount of certificates according to climatic zone H1(North): kWh cumac / m2 H2 (Centre): kWh cumac / m2 H3 (South): kWh cumac / m2

White certificates in France: processus of standardisation of energy savings by operation/equipment  Continuous process of standardisation  the number of standardised operation and equipment increased from 30 at the beginning to more than 180 now  Process of standardisation  Each file proposed and prepared by ATEE, Technical Association for Energy and Environment, organised for this purpose in various committees by sector;  Submitted to Ministry (DGEC, Directorate General for Energy and Climate) for comments; consultation of Ministry with ADEME  Validated by Ministry (DGEC) ;  Officially published through government decrees (6 decrees until now)  Published on Ministry web site: Fiches-d-operations.html

CCI BETHUNE – 08/10/09 11 Obliged parties The French scheme of energy saving certificates Administrative authority (Ministry in charge of Energy) Fixes the obligation Attributes certificates Attributes certificates Monitors the market Exchange market of certificates Obligation CEE Energy saving actions Final consumers Non obliged parties Energy saving actions

Standardisation of 182 operations and equipment SectorNumber Residential buildings Envelope Thermal equipment (eg boilers, water heaters, regulators) Equipment (e.g. refrigerator, lamps) Services Tertiary buildings* Envelope Thermal equipment Equipment (e.g. lighting) Industry Buildings Utilities Envelope Networks Heat & cold Public lighting Electricity distribution Transport 5 * Separate file for large buildings in many cases

Results by type of standardised measures 13 AIE-DSM XXI Sub Task 1 France Ten most frequent measures (in % of kWh) Results from July 2006 to January 2009 (Source: MEEDDAT / DGEC, 2009)

Energy savings certificates o Calculation rules 14 AIE-DSM XXI Sub Task 1 France

Calculation rules for energy savings certificates The methodology followed to define the energy savings associated to energy savings operations and account only additional savings, i.e. saving beyond the market trends relies on the following four components : – selection of eligible operations/appliances – selection of eligible actors – definition of baselines; – correction for free riders effects (market trends); 15 AIE-DSM XXI Sub Task 1 France

Calculation rules for energy savings certificates: selection of eligible operations and eligible actors Eligible actions: o Actions that are required by regulations are not eligible o The list of eligible actions and equipment is restricted and defined by government decree o If an equipment is eligible but does not correspond to the best available on the market the energy savings are reduced by 50% (for instance, low temperature boiler get 50% of the energy savings of a condensing boiler; or CFL class B gets 50% of the savings of CFL class A) Eligible actors o Actors are only eligible if the action is not part of its main activity: for instance, a distributor of refrigerator cannot claim saving for refrigerators A+ 16 AIE-DSM XXI Sub Task 1 France

Calculation rules for energy savings certificates: baselines  The baseline to calculate the energy savings corresponding to an energy saving operation depend on the operation: 17 AIE-DSM XXI Sub Task 1 France Operation typeBaseline 1: improvement of building envelops or heating appliances Average of the stock 2: All other actions Market average (i.e. average of new appliances sold on the market) 3: Renewables (thermal uses, e.g. solar heaters, wood boilers) Energy savings = net contribution of renewables  The calculation are made by type of energy (electricity or fuel) to avoid the effect of energy substitution; for instance, savings for a gas condensation boiler are calculated in comparison to a gas boiler and not to all heating appliances

Calculation rules for energy savings certificates : corrections for free riders effect  To account for the existence of actions that would be carried out without the measure, the energy savings are corrected with a coefficient that accounts for the market share of the efficient appliance; for instance, if gas condensing boiler represent 20% of the market the savings are multiplied by (1-20%), i.e. by AIE-DSM XXI Sub Task 1 France

Calculation rules for energy savings certificates: case of refrigerators and CFL 19 AIE-DSM XXI Sub Task 1 France Efficient appliance (kWh) Baseline (market average) (kWh Gross annual saving (kWh) Market share of efficient appliance Net annual saving (kWh) Life time saving (kWh cumac) Refrigerator (A+) %60506 kWh CFL (A) % kWh Net savings= gross savings multiplied by a coefficient reflecting the market share of the efficient appliance (MSEFF) = gross savings *(1-MSEFF) Saving in kWh cumac: life time discounted savings with a discount rate of 4%= annual savings multiplied by discount factor, function of life time and discount rate Refrigerator: life time of 10 years  discount factor of CFL: life time of 7.5 years  discount factor of 6.626

Detailed energy saving calculated sheets available in English 20 AIE-DSM XXI Sub Task 1 France Household sector Insulation building envelope Internal wall insulation (BAR EN-02) Windows with insulating glazing (BAR EN-04) Heating appliances Water-water heat pump (BAR TH-03) Air -water heat pump ( BAR TH-04) Individual condensing boiler (BAR TH-06) Collective condensing boiler (BAR TH-07) Individual low temperature heating boiler (BAR TH-08) Collective low temperature boiler (BAR TH-09) Air -air heat pump (BAR TH-29) Lighting Compact fluorescent lamps (class A) (BAR EQ-01) Appliances Refrigeration appliances (Class A+) (BAR EQ-03) Buildings in tertiary sector Insulation building envelope Loft and roof insulation BAT EN-01) Internal wall insulation (BAT EN-02) Windows / glazing (BAT EN-04) Heating Low temperature boiler (BAT TH-01) Condensing boiler (BAT TH-02) Lighting Light fitting for T5 electronic fluorescent tube with or without control device (BAT EQ-01) Light fitting with electronic ballast and dimming system on lighting device (BAT EQ-04)

Detailed energy saving calculated sheets available in English 21 AIE-DSM XXI Sub Task 1 France Industry Sector Energy efficient industrial equipment Energy Efficient Motor Category EFF1 (IND-UT-01) Electronic regulation system on a motor (IND-UT-02) Steam Economiser on the gaseous effluent from a steam boiler (IND-UT-04) Agriculture Tractor engine inspection (IND-UT-06) Public sector Public lighting Outside light fitting (RES-EC-04) Power sector Energy-efficient transformer for industrial low voltage supply (IND-UT-10)

List of energy efficiency improvement measure or programmes proposed by France (1/2) Household sector (technical measures or programmes) Commercial, industrial and public buildings (technical measures or programmes) 1. Insulation building envelope:8. Insulation building envelope: 1.1 wall insulation8.1 wall insulation 1.2 roof insulation8.2 roof insulation 1.3 windows / glazing8.3 windows / glazing 3. Heating:11. Heating: 3.1 heating supply equipment11.1 heating supply equipment boiler boiler heat pump boiler 5.1 cold appliances14. Lighting: refrigerators 14.1 high efficiency lighting systems freezers 6. Lighting: 6.1 energy efficient compact fluorescent light bulbs 6.2 LED’s

List of energy efficiency improvement measure or programmes proposed by France (2/2) Industry Sector (technical measures or programmes) Public sector (organisational measures or programmes 18. Energy efficient industrial equipment:20. Public lighting: 18.1 electric motors 20.1 energy efficient lighting systems for public spaces (e.g. roads 18.2 variable speed drive 19. Steam: 19.1 boiler boiler monitoring system boiler load management boiler condensate return Suggestions 21.1 engine's tractor control 21.2 efficient transformers for indutry or the public greed