1. The Clean Energy Package: what’s in it for solar thermal
BSW Solar Thermal Workshop
18 January 2017
Stefano Lambertucci
Policy Officer
European Solar Thermal Industry Federation
Place du Champ de Mars 2 • B-1050 Brussels • Belgium • • Web:

2. The EU Energy sector: overview
872 TWh
5738 TWh
3175 TWh
204 TWh
According to the European Commission assessment of the implementation of the National Renewable Energy Action Plans (NREAPs), the projected development of the solar thermal market until 2020, considering the measures proposed by the Member States, would be 41.8 to 45.6% below the indicative target. This underachievement is evident even for countries such as Italy, Spain and France, which have a great potential for the deployment of solar thermal, if the right measures are in place. The discussion around energy and renewable energy sources (RES) has been mainly focused on renewable electricity (RES-E). Pushed by strong support policies, RES-E has risen to 27.4% of all power generation in EU28, while RES-HC represents only 17.7% of all Heating & Cooling. Nevertheless, renewable heating and cooling (RES-HC) represents 49% (1017 TWh) of all RES generation in EU28, while RES-E represents only 42% (872 TWh). With four years left to achieve the 2020 targets, RES-HC still offer a huge untapped potential, that can be quickly deployed. Solar thermal applications, such as solar water heaters or solar heat for industrial processes, have demonstrated their competitiveness. At the same time, investment in solar thermal solutions helps to promote energy security, reducing energy imports and CO2 emissions while promoting local job creation.
3432 TWh
1017 TWh

3. Solar Thermal markets: overview
In 2015, the European market faced again a contraction of the newly installed capacity, which totalled 1.9 GWth (approximately 2.7 million m²). This represents a decrease of 6.6% in comparison with The total installed capacity augmented by 1.4 GWth, attaining 33.3 GWth (47.5 mio m²). It represents an increase of 4.4% on the total installed capacity by the end of the previous year.
Solar thermal accounted for roughly 8% of modern renewable energy heat output.
The year 2015 saw increasing interest in and deployment of large-scale solar systems in district heating networks
Markets also expanded for solar process heat in industry. (However, most residential-scale solar thermal markets stagnated or declined due to low oil prices, a comparative dip in building construction in some regions and the low price of solar PV systems; exceptions included Denmark, Israel, Mexico, Poland and Turkey)
The use of solar thermal for space heating also continued to gain ground, particularly in Europe, where an increasing number of large-scale solar thermal systems feeds into district heating grids.
Global capacity of collectors continued to rise in 2015, following the increasing trend of the past few years
Total global solar thermal capacity to an estimated 435 GWth (622 million m2) at the end of 2015, up from 409 GWth one year earlier. There was enough capacity by year’s end to provide approximately 357 TWh (1,285 PJ) of heat annually
The main European market, Germany, representing approximately 30% of the entire European market, as led this decrease with a reduction of 10.4% compared to 2014, totalling MWth (0.8 mio m²) of newly installed area.

4. Secure, Sustainable, Affordable Energy
The EU Energy & Climate Policy: overview
Secure, Sustainable, Affordable Energy
2050
+/- 55%
CO2
-40%
-20%
+27%
-85% / 90%
+20%
RES
Mandatory on Member States
Mandatory on common EU level

5. The Clean Energy Package: what is it?
Legislative framework for the implementation of the EU Energy & Climate policy from 2021 to 2030
TARGETS:
CO2: -40% with binding national targets
RES: ‘at least’ +27% EU binding target with States contributions set in NECPs with EC baseline
EE: +30% EU binding target with indicative national energy efficiency contributions

6. The Clean Energy Package: objectives
Decarbonise the European economy in line with the 2030 Climate Target and the Paris Agreement on Climate Change (COP21).
Generate the investment needed for a sustainable and competitive energy transition.
Deepen cross-border integration to create a fully-integrated EU internal energy market and reduce EU’s energy imports.
Modernise the European energy system and foster the deployment and market uptake of new solutions and technologies.
Empower consumers and increase citizens’ confidence in the EU

7. The Clean Energy Package: impact
Carbon intensity of the economy 43% lower in 2030 than in 2015
72% share of non-fossil fuels in electricity generation in 2030

8. The Clean Energy Package: content
Electricity Markets & consumers
Revised electricity Directive/Regulation
Regulation on EU Agency for Cooperation of Energy Regulators
Regulation on risk preparedness in electricity sector
Evaluation of Electricity Market Design & security of supply
Sector inquiry on Capacity Mechanisms
Impact Assessments, Annexes
Energy Efficiency
Revised Energy Efficiency Directive,
Evaluation of EU framework for metering & billing
Good practices in energy efficiency, Impact Assessment
Energy Performance of Buildings
Revised Energy Performance of Buildings Directive
Evaluation of previous EPBD, Impact Assessment
Eco-design
Communication on Eco-design working plan
Regulation on tolerances in verification procedures
Regulation on eco-design requirements for air H&C products
Guidelines on self regulation
Renewables & bioenergy sustainability
Revised Renewable Energy Directive
Evaluation of previous RED, Impact Assessment
Governance
Regulation on Governance of the Energy Union
Fitness check of existing legislation, Impact Assessment
Energy Prices & Costs Report
Energy funding Report
Innovation: Communication on clean energy innovation
Transports: Communication on EU strategy on smart transport systems

9. Key legislation for Solar Thermal
EED
Aims at reducing energy consumption in EU, with a energy efficiency target
Sets an energy efficiency obligation scheme
Promotes efficiency in DH/CHP
Promotes heat potential mapping
EPBD
Aims at reducing energy consumption in buildings
Introduces NZEBs
Sets minimum requirements for technical building systems
Sets inspection of heating systems
RES-D
Aims at increasing RES deployment in EU, with a target
Sets minimum level of RES in new buildings, promotes RHC in building codes
Sets measures on training, planning, authorisations

10. Energy Efficiency Directive – main changes
EU binding energy savings target of 30% by 2030.
Energy Efficiency Obligations extended up to 2050, RES in buildings clearly eligible (cap=25%).
Heat meters, transparency in individual consumption and costs of H&C promoted.
Default Primary Energy Factor (PEF) lowered from 2.5 to 2.0.
Raising the level of ambition agreed upon by the Council in October 2014, the Commission proposes a binding energy savings target of 30% by 2030.
The Commission considers that it is too early to revise the entire Directive and proposes to amend only those articles that are related to the 2030 targets (i.e. articles 1, 3 and 7) and those on metering (article 9) and billing (article 10) to take into account technological and market developments.
Heat meters mandatory for DH/centralized DHW customers. transparency in individual consumption and costs of H&C promoted. Billing and consumption information to be accurate, freely accessible, and based on actual consumption.
The Commission proposes to adapt the default Primary Energy Factor (PEF) for electricity to take into account technological progress and the growing share of renewable energy sources in the electricity generation sector. The PEF value would be lowered from 2.5 to 2.0 and impact a wide range of legislation such as the Energy Performances of Buildings Directive (EPBD) and the product-specific Ecodesign and Energy Labelling Regulations.

11. Energy Performance of Buildings Directive – main changes
Long term building renovation strategy reinforced with 2030 milestone
Feasibility study of efficient alternative solutions deleted (outdated with NZEBs)
Energy Performance Certificates (EPC) reinforced: database, links to financing, renovation of technical building systems included.
Inspections and reports on the efficiency of H&C systems reduced from 20kw to 100kw systems, smart controls as alternative.
“smartness indicator”
recharging electric vehicles infrastructure promoted
The Commission proposes streamlining the provisions on inspections and reports on the energy efficiency of heating and cooling systems (Articles 14 & 15).
In a move to foster the digitalisation of the energy system, the Commission will try to promote smart systems and digital solutions in buildings. It proposes introducing Building Automation and Control Systems (BACS) as an alternative to inspections.
In the same vein, the Commission suggests creating a “smartness indicator” that would be used to measure buildings’ capacity to use ICT systems to optimise their operation and interact with the grid. It would also provide consumers with information about the actual savings of these new functionalities.
The Commission integrates into its proposal provisions to trigger the development of infrastructure for recharging electric vehicles in parking spaces.

12. Renewable Energy Directive – main changes 1
EU-level binding 2030 target of at least 27%, MS contributions in NCEP
Solar Thermal included in definition of RES
Conditions for renewable electricity support schemes, joint schemes promoted, stability and predictability of schemes promoted
One-stop-shops for permission procedures promoted
Self- consumers rights to be granted, RES energy communities to be promoted
Member States to carry assessment of RES potential in H&C
1, Binding 2020 national targets are replaced by an EU-level binding 2030 target of at least 27% of final energy consumption in the EU. It sets Member States’ 2020 national targets as a starting point so that countries cannot go below their existing targets from 2021 onwards.
2. The Commission tries to clarify the regulatory framework applicable to biofuels. It proposes a gradual decline of the share of food- and feed-based biofuels and bio-liquids to address Indirect Land Use Change (ILUC) emissions (maximum 3.8% in 2030). It also sets a specific sub-mandate for advanced biofuels (at least 3.6% in 2030) and increases the GHG savings performance requirements for biofuels produced in new installations.
3. Heating & Cooling is identified as a key priority for the renewable energy potential of this sector. Member States are therefore asked to achieve an annual increase of 1% in the share of renewables in the heating and cooling supply but can decide themselves how to reach this target. The Commission proposes a few options for their consideration (e.g. requirements for fuel suppliers).
4, The Commission clarifies some of the principles that support schemes have to comply with so as to avoid market distortion and fragmentation of the internal energy market.

13. Renewable Energy Directive – main changes 2
Member States to ‘endeavor’ to achieve an annual increase of 1% in the share of renewables in H&C, but huge flexibility on how.
Minimum RES requirements in new/renovated buildings (complementing NZEB definition) maintained, with no loopholes.
Measures on information and training maintained up to 2030 and reinforced
Access rights to DH systems opened for RES producers, under certain conditions. More transparency on DH fuels, costs. Right to disconnect from DH. Cooperation DH – power grids operators promoted.
Clarifications in framework applicable to biofuels.
1, Binding 2020 national targets are replaced by an EU-level binding 2030 target of at least 27% of final energy consumption in the EU. It sets Member States’ 2020 national targets as a starting point so that countries cannot go below their existing targets from 2021 onwards.
2. The Commission tries to clarify the regulatory framework applicable to biofuels. It proposes a gradual decline of the share of food- and feed-based biofuels and bio-liquids to address Indirect Land Use Change (ILUC) emissions (maximum 3.8% in 2030). It also sets a specific sub-mandate for advanced biofuels (at least 3.6% in 2030) and increases the GHG savings performance requirements for biofuels produced in new installations.
3. Heating & Cooling is identified as a key priority for the renewable energy potential of this sector. Member States are therefore asked to achieve an annual increase of 1% in the share of renewables in the heating and cooling supply but can decide themselves how to reach this target. The Commission proposes a few options for their consideration (e.g. requirements for fuel suppliers).
4, The Commission clarifies some of the principles that support schemes have to comply with so as to avoid market distortion and fragmentation of the internal energy market.

14. Smart Financing for Smart Buildings Initiative
Pillar I: More effective use of public funding
Develop sustainable energy financing models
Promote Energy Performance Contracting
Deliver assistance to public fund managers with the structuring and deployment of financial instruments
Pillar II: Aggregation and assistance for project development
Reinforce existing Project Development Assistance facilities
Encourage Member States to develop dedicated local or regional one-stopshops for project developers
Pillar III: De-risking
Launch the De-risking Energy Efficiency Platform
Consensual framework for the underwriting of sustainable energy building investments
NON LEGISLATIVE INITIATIVE

15. Summing up: Key new measures impacting ST
EED
Primary Energy Factor: 2.0
Art. 7 Energy Efficiency Obligation: RES eligibility
Heat meters promoted
EPBD
Heating systems inspections – from 20 Kw to 100 Kw
‘Smart homes’
Building renovation strategies
Smart Financing for Smart Building Initiative
EPC reinforced
RES-D
RHC obligation
Minimum level of RES in new/renovated buildings
Measures for DH
Renewable heat so far the Cinderella of EU energy policies.. but a U-turn has just begun!
Focus on renewable heat growing at EU and national level, several countries are increasing support!
Key priority: meet 2020 targets. RHC becoming essential, solar thermal is a quick win!
New building renovation strategies and NZEBs cost optimal methodology will benefit solar thermal
Solar thermal is most affordable solution for utilities to meet 2030 obligation targets!
Decarbonization scenarios for 2050 need solar thermal!

16. Contact us !!! European Solar Thermal Industry Federation (ESTIF)
Place du Champ de Mars, 2 B-1050 Brussels
Tel: Website:
Twitter: ESTIF_Solar