1. 1 Frederic Hug President Euroheat & Power 5 November 2012 District Heating and Cooling in European policies

2. DHC in European policies EU policies strongly affect DHC The case of the Energy Efficiency Directive The case of the Energy Roadmap 2050 How to respond ?

3. 3 550 TWh heat sales / turnover of ~ €20 B More than 5,000 DH schemes, supplying ~ 9% of total heat demand, with an uneven distribution across Europe (from ~ 0% to ~ 70%) A flexible infrastructure enabling to integrate a wide range of renewable / recovered energy sources (local heat / fuel sources that would have been lost or remained unused) o on a large scale o where most needed o where most difficult to make use of RES More than 80% of heat in DH schemes come from recovered heat, renewable energy and waste resources  Avoided CO2 emissions amount to ~ 110 Mt/yr District Heating in Europe today

4. EU policies strongly affect DHC DHC RES Directive Emissions Trading Ind. Em. Directive Buildings Directive Energy Taxation Funding rules Energy Efficiency Directive

5. Heating & cooling are responsible for half of the energy consumption in the EU o The EU buildings sector accounts for 40% of EU final energy and 36% of CO2 emissions. o The majority of energy use for heating & cooling takes place in urban areas The 3x20 for 2020 are a the flagship of EU policy; there’s no way they can be reached w/o a strong focus on heat o Improve energy efficiency by 20% (translating into ~ 40% in buildings) o Reduce CO2 emissions by 20% by 2020 o Increase renewables to 20% of the energy mix (heat & cool: half of the increase, mainly from biomass) There are good reasons why

6. Getting the policies right Sensitivity to provisions depend upon national circumstances Often lengthy and cumbersome process (e.g. continuous involvement in the ETS drafting from 2002 to 2011… or more !) Powerful / high profile players (energy & others) Heat is the “invisible giant”  Let’s take two concrete examples of what is at stake

7. DHC in EU policies EU policies strongly affect DHC The case of the Energy Efficiency Directive The case of the Energy Roadmap 2050 How to respond ?

8. Obligated parties (energy distributors and/or retail energy sales companies) to achieve new yearly savings of 1.5% of the annual energy sales to final customers from 2014 to 2020 Possibility for Member States to get 25% of the overall targeted savings achieved through flexibility measures: allow energy savings achieved in the energy transformation, distribution and transmission sectors, including efficient district heating and cooling infrastructure 8 EED – Savings obligation DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on energy efficiency and repealing Directives 2004/8/EC and 2006/32/EC DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on energy efficiency and repealing Directives 2004/8/EC and 2006/32/EC

9. Member State to prepare a comprehensive assessment of the potential for cogeneration and District Heating and Cooling, Member States to prepare a Cost-benefit Analysis (CBA) at territorial level. The CBA ‘shall be capable of facilitating the identification of the most resource and cost-efficient solutions to meeting heating and cooling requirements.’ Member States to take adequate measures for efficient District Heating and Cooling and high-efficiency cogeneration to be developed and/or to accommodate the development of high-efficiency CHP 9 EED – Heating

10. DHC in EU policies EU policies strongly affect DHC The case of the Energy Efficiency Directive The case of the Energy Roadmap 2050 How to respond ?

11. The 2050 Energy Roadmap

12. 12 Residential and tertiary The built environment …shifting energy consumption towards low carbon electricity (including heat pumps and storage heaters) and renewable energy (e.g. solar heating, biogas, biomass), also provided through district heating systems, would help to protect consumers against rising fossil fuel prices and bring significant health benefits. COM(2011) 112 final : A Roadmap for moving to a competitive low carbon economy in 2050 COM(2011) 112 final : A Roadmap for moving to a competitive low carbon economy in 2050 Sharp decrease in final energy consumption (Nearly Zero Energy Buildings from 2021 onwards + refurbishment) Decarbonisation of remaining consumption through electrification  90% overall emissions abatement

13. 13 Impact : what’s next? Such prospects already influence current EU policy making. They are likely to have very strong impacts on forthcoming legislation What’s next ? From scenarios to targets for 2030? Renewables, round 2: Towards harmonisation for RES-E? What about RES-H ? Emissions trading, cont.: Higher prices? Energy efficiency: Bridging the gap? Energy performance in buildings: Which kind of Zero Energy Buildings ? CO2 taxation: Ever or never?

14. DHC in EU policies EU policies strongly affect DHC The case of the Energy Efficiency Directive The case of the Energy Roadmap 2050 How to respond ?

15. 15 The main energy savings occur upstream of energy delivery to buildings. Local solutions allow to utilise vast resources of waste heat to substitute fossil fuels Primary energy consumption and cost-effectiveness should be key for comparing solutions, e.g. between : o waiting for a generalisation of “zero energy” buildings (what about grey energy?) ? o or supplying zero emissions energy to moderately refurbished buildings ? Integrated solutions must be privileged o insulation + heating + cooling o building envelope + technical installations + infrastructures o energy efficiency + renewables o mutualisation of needs and resources at district level DHC: effective today & future-proof

16. 16 Our recommendations European heating and cooling strategyFocus on savings of primary energyNot competition but equality between energy efficiency and renewablesEco-districts rather than individual bonfiresCO2-taxation outside emission tradingEqual focus on DHC in infrastructure policy

17. 17 Euroheat.org - Let’s keep in touch!

18. 18 The ecoheat4cities project aims at enabling you to demonstrate the merits of the green heat that you deliver to the community. Join the campaign and get a green label which informs citizens of the superior energy performance and proven environmental achievements. Get started now, get yourself a green profile! Contact: sabine.froning@euroheat.orgsabine.froning@euroheat.org Web site: www.ecoheat4cities.euwww.ecoheat4cities.eu

19. 19 Smart and Competitive: DHC for Cities of the Future Join us on 27-28 May 2013 for our 36th Congress in Vienna, Austria www.ehpcongress.org Thank you for your attention!