Italian white certificates scheme R. Romani & M. Liberatori ENEA Environment Department romani@casaccia.enea.it maura.liberatori@casaccia.enea.it

Italian white certificates scheme Summary: Energy efficiency decrees Eligible projects White certificates Sanctions Measurements and verification of energy savings Main results

Italian economy’s energy intensity Casaccia 09.01.2007

Energy efficiency decrees (1/6) Issued in April 2001 Innovative strategy that combines a command and control approach with a market based instrument Casaccia 09.01.2007

Energy efficiency decrees (3/6) On July 2004 was issued an amended version of the two decrees with the following main changes: Modifications in the distribution of annual quantitative targets; Postponement of the implementation period (from 2005 to 2009) Introduction of flexible mechanism in the deadline for achieving the annual savings Casaccia 09.01.2007

Energy efficiency decrees (2/6) Distribution System Operators* (DSO) are required to achieve quantitative targets of energy efficiency improvements in end-uses The way for achieving these objectives is left to the market forces (energy efficiency titles or white certificates) * < 100.000 customers at Dec. 2001 Casaccia 09.01.2007

Energy efficiency decrees (4/6) Annual Targets (Mtoe) electricity gas year annual comulative 2005 0,1 2006 0,2 2007 0,4 2008 0,8 0,3 0,7 2009 1,6 0,6 1,3 Casaccia 09.01.2007

Time persistence of energy savings Casaccia 09.01.2007

Energy efficiency decrees (5/6) The annual target (*) for each DSO at (t) year is proportional at the share of energy distributed in the year (t-2) by each distributors (*) at least 50% of savings must be achieved in the field where DSO works Casaccia 09.01.2007

Energy efficiency decrees (6/6) Energy saving targets can be achieved through projects implemented by: DSO, directly or via controlled companies Energy Service Companies (ESCOs) Casaccia 09.01.2007

All energy saving projects Eligible projects All energy saving projects Casaccia 09.01.2007

Eligible projects (examples) improvements of energy efficiency in lighting; combined heat and power systems; district heating/cooling system; high efficient boilers; photovoltaic plants; household appliances; Casaccia 09.01.2007

Eligible projects (examples) heat pumps; air conditioning; thermal insulation system in buildings; solar plants for hot water; high efficiency motors; variable speed drive; etc.. Casaccia 09.01.2007

Energy Efficiency Titles (TEE) or White Certificates (WhC) 1 WhC for 1 toe of saved primary energy Casaccia 09.01.2007

White Certificates (WhC) WhC are issued by Electricity Market Operator (GME) once it has been certified that a defined amount of energy saving will be attained by project implementation Casaccia 09.01.2007

Typology of WhC Type 1: certificates savings of electricity Type 2: certificates savings of gas Type 3: certificates savings of other fuels Casaccia 09.01.2007

Sanctions proportional and in any case greater than the investment needed to compensate the non-compliance established and applied by the Authority for Electric Energy and Gas (AEEG) Casaccia 09.01.2007

Process to recognize energy saving Implementation of the project Request of verification Assessment and certification Issue of WhC Exchange of WhC Transfer of WhC to AEEG Economic contribution DSO and ESCO Entitled project AEEG GME DSO AEEG to DSO Phases and Actors Casaccia 09.01.2007

Measurements and Verification of energy savings (M&V) The definition of technical rules, the implementation, monitoring and enforcement of the whole mechanism are under the responsibility of the Authority for Electric Energy and Gas (AEEG) Casaccia 09.01.2007

Measurements and Verification of energy savings (M&V) The AEEG developed three evaluation methods: Default method (no measurement; installed units are considered according to their average energy saving) Engineering method (some measurement of technical features) Energy monitoring plan (direct measurement of consumption before and after the project) Casaccia 09.01.2007

Measurements and Verification of energy savings (M&V) Project threshold (Mtoe/year) Method Default Engineering Energy monitoring DSO/ESCOs 25 ESCOs 50 100 DSO 200 Casaccia 09.01.2007

Projects evaluated by Default Method (examples of 22 developed formats) Replacement of incandescent lamps by CFL; Replacement of electric boilers by gas boilers for heating sanitary water; Installation of high efficient boilers; Thermal insulation systems in buildings; Photovoltaic plants (<20 kW power); Variable speed drivers High efficiency electric motors; Etc… Casaccia 09.01.2007

Measurements and Verification of energy savings (M&V) On January 2006, in implementation of the Ministerial Decrees, the Authority has decided to draw on the services of ENEA (Italian National Agency for New Technologies, Energy and the Environment). Casaccia 09.01.2007

Measurements and Verification of energy savings (M&V) The main activities carried out by Enea will be: technical verification and evaluation of the projects; monitoring to ensure that the energy saving projects under evaluation are being implemented correctly; 3) the adoption and up-dating of detailed, standardised technical worksheets for use in evaluating projects and quantifying results. Casaccia 09.01.2007

Main results 2005 1000 projects implemented; Many ESCOs authorised (700 till now) 1000 projects implemented; 0.28 Mtoe of energy saving achieved (with respect to a target of 0.15 Mtoe); 0,75 Mton of CO2 reduced (equivalent to a CO2 emitted from a central power of 160 MW) Casaccia 09.01.2007

Distribution of national target among obliged electricity DSO Target 2005 (tep) Acegas-Aps S.p.a, Trieste 297 0,3% AEM Distribuzione Energia Elettrica S.p.a, Milano 2.827 2,9% AEM Torino Distribuzione S.p.a., Torino 1.263 1,3% ASM Brescia S.p.a., Brescia 461 0,5% ACEA Distribuzione S.p.a, Roma 3.897 4,0% Azienda Energetica S.p.a., Bolzano 340 0,3% Deval S.p.a., Aosta 225 0,2% Enel Distribuzione S.p.a., Roma 87.849 89,8% Enìa S.p.a., Parma 336 0,3% Hera S.p.a, Modena 359 0,4% Total 97.854 100% Casaccia 09.01.2007

Distribution of national target among obliged gas DSO Target 2005 (tep) Acegas-Aps S.p.a, Trieste 1.358 2,3% AEM Distribuzione Gas e Calore S.p.a, Milano 3.391 5,8% AGSM Rete Gas S.r.l., Verona 659 1,1% A.M.Gas S.p.a., Bari 273 0,5% AMG Energia S.p.a., Palermo 210 0,4% AMGA, S.p.a., Genova 1.181 2,0% ASCO Piave S.p.a., Pieve di Soligo (Treviso) 2.266 3,9% ASM Brescia S.p.a., Brescia 1.022 1,8% Azienda Energia e Servizi S.p.a, Torino 2.018 3,5% Compagnia Napoletana S.p.a., Napoli 1.445 2,5% Consiag Reti S.r.l., Prato 1.005 1,7% ENEL Rete Gas S.p.a., Milano 8.325 14,3% Enìa S.p.a., Parma 2.737 4,7% FiorentinaGas S.p.a., Firenze 1.717 3,0% HERA S.p.a. Bologna 5.986 10,3% Italcogim Reti S.p.a., Milano 1.960 3,4% Italgas S.p.a., Torino 20.215 34,8% SGR Reti S.p.a., Rimini 904 1,6% Siciliana Gas S.p.a, Palermo 538 0,9% Toscana Gas S.p.a., Pisa 847 1,5% Totale 58.057 100% Casaccia 09.01.2007

Demand side of the White Certificates Market 20 Gas Distributors 58,057 toe 10 Electricity Distributors 97,854 toe Casaccia 09.01.2007

Supply side of the White certificates Market 573 electricity and/or gas distributors not target-bound and about 700 ESCOs could partecipate to the WhCs market Actually only 118 have applied to be enrolled in the Register Casaccia 09.01.2007

First year results over 350 requests to check and certify the savings achieved through …. about 1,000 conservation projects Casaccia 09.01.2007

First year period (2005) 50% of projects have been implemented by distribution system operators, while the other 50% by ESCOs; Casaccia 09.01.2007

Tipology of WhCs issued Between Juanuary 2005 and May 2006, the Authority certified energy saving for 286.837 toe, and GME issued consequently energy efficiency titles or Whc: 214.244 Type I (electricity saving) 75% of the total, four times the minimum quantity required from bounded electricity DSO 62.826 Type II (natural gas saving); 22% of the total, two times the quantity required from bounded gas DSO 9.767 Type III (solid, liquid and other gas fuels saving) 3% (for which no target bound was established). Casaccia 09.01.2007

Issued WhCs for subject tipology Obliged electricity DSO 9,1% Obliged gas DSO 23,8% Not target bound distributors 2,5% ESCOs 64,6% Casaccia 09.01.2007

Total energy saving The number of WhCs of which has been asked the emission resulted higher than the sum of assigned targets (184%). Casaccia 09.01.2007

The main measures adopted improvements of energy efficiency in public lighting (59% of total certified savings); distributed energy generation (ie. Combined Heat and Power system, district heating/cooling system: about 17% of total certified savings); improvements of energy efficiency in residential sector (ie.: lighting, high efficient boilers, photovoltaic (8%), household appliances, heat pumps, air conditioning; about 15%); miscellaneous measures for heating in residential and commercial buildings (ie.: high efficient boilers, thermic isolation systems in buildings, solar plants for hot water: 7% circa); miscellaneous measures on industrial sector (ie.: high efficiency motors, variable speed drive: about 2% of total saving). Casaccia 09.01.2007

Second year period to be verified on may 2007 Target: about 311.000 toe of energy saving of which: 191.949 in the electricity sector 119.809 in the gas secor Casaccia 09.01.2007

Italian white certificates system Thanks for your attention Casaccia 09.01.2007