1. 1 EEA Energy Work Dr. Anca-Diana Barbu EIONET energy meeting, 5-6 March 2015, Copenhagen

2. Energy support measures and their impact on innovation in renewables sector 2

3. The study provides: An overview, at European level, of the type of measures in place in 2012 to support energy consumption and production in 32 EEA countries; A quantitative analysis of support measures for all energy sources in four countries: Czech Republic, The Netherlands, Spain, Switzerland; An evaluation of renewable policies in the four countries In addition, 32 country-fiches were prepared 3

4. The process

5. 5 Despite growing interest in renewables, in 2012 many support measures were targeting the fossil fuels sectors Source: EEA

6. Support for fossil fuels affects market conditions for renewable energy, but there is little evidence that the impact is significant, given the support allocated to the renewable sector 6 Source: EEA

7. Countries with a higher effective tax rate on carbon dioxide (CO 2 ) generally have a higher rate of patent applications in renewable technologies. 7 Source:EEA

8. A strong focus on deployment (demand-pull) does not necessarily lead to accelerated innovation in the renewable. The case of Germany and the solar PV industry. 8 Source: Zheng and Kammen, 2014

9. Improved policy effectiveness is required, in particular for those technologies that are supposed to grow strongly by 2020, according to the NREAPs. Revisiting NREAPs seems also important. 9 Source: EEA

10. Further improvements are needed in the heating and cooling sectors, particularly for geothermal 10 Source: EEA

11. Costs were highest for those schemes funding a relatively high share of more expensive technologies, in particular solar PV. Also differences in the technology- specific costs can be explained by the design of the support scheme. 11

12. 12 Share of renewable energy technology patent applications in total patent applications in the EU

13. 13 The large variation of employment in solar PV sector in line with changes in support schemes suggest that most of the employment was created in installing solar panels then elsewhere in the value chain.

14. Questions for the EIONET Is similar work available in the EIONET countries? If yes, what is the approach taken? How can we improve the methodology employed in this report? Of particular interest is the type of correlations that we could choose to strengthen the link between energy support measures and innovation. Are there any other indicators to measure innovation in the renewable sector besides applications to the European Patent Office? How do the member countries use such information? 14

15. EEA Energy and environment indicators 15

16. Streamlining EEA energy and environment indicators (I) Old list of indicators New list of indicators ENER16 Final energy production by sector ENER17 Total primary energy intensity ENER19 Efficiency of conventional thermal electricity and heat production ENER21 Final energy consumption intensity ENER26 Primary energy consumption by fuel (changed definition according to the Energy efficiency directive) ENER28 Share of renewables in gross final energy consumption ENER29 Renewable primary energy consumption ENER30 Renewable electricity consumption ENER36 Overview of the European energy system ENER37 Progress on energy efficiency in Europe ENER38 Overview of electricity production and consumption 16 ENER11 Energy efficiency in transformation ENER12 Security of energy supply ENER13 Nuclear waste production ENER16 Final energy production by sector ENER17 Total primary energy intensity ENER18 Final electricity consumption ENER19 Efficiency of conventional thermal electricity and heat production ENER20 Combined heat and power ENER21 Final energy consumption intensity ENER22 End-use energy efficiency –household sector ENER23 End-use energy efficiency –transport sector ENER24 End-use energy efficiency –services sector ENER25 End-use energy efficiency –industry sector ENER26 Gross inland energy consumption by fuel ENER27 Electricity production by fuel ENER28 Renewable final energy consumption ENER29 Renewable primary energy consumption ENER30 Renewable gross electricity consumption ENER31 Energy prices ENER32 Energy taxes ENER34 energy subsidies (not regularly updated) ENER35 External costs of electricity production

17. Streamlining EEA energy and environment indicators (II) 2011 Pilot project 4 countries Austria, Croatia, Poland, Switzerland Objectives: What are the key policy questions addressed in national reporting mechanisms on energy and environment? What types of indicators are being used to answer those questions? What are the differences and commonalities with the indicators developed within the EEA energy and environment reporting mechanism? Do countries compare themselves with other countries in their national reporting? How are the EEA indicators used in the countries reviewed? 17

18. National reporting on energy and environment is mainly targeted to meet international obligations. However, common policy questions and processes mean that national indicators are often similar to EEA indicators. 18

19. 19 ENER036 based on Eurostat data

20. 20 Energy efficiency gain from building standards of new dwellings in the EU28 (1990-2012) Drivers for change in the energy consumption per dwelling in households in the EU28 between 1990 and 2012 ENER037 based on ODYSSEE data

21. Questions for the EIONET Are these indicators still relevant? Are there new indicators that have become relevant and are extensively used in the EIONET countries to monitor environmental impacts of energy production and consumption for which data is available at European level? 21

22. EEA Energy efficiency tool 22

23. The energy efficiency 2020 targets 23 The energy efficiency directive 20% headline target Each MS shall set indicative targets Mandatory measures Other contributing policies Energy performance of buildings (EPBD) Eco-design and Labelling Directives CO2 from cars and vans Financial instruments (ESI, Horizon 2020, ELENA, etc) Smart meters EU ETS/non-ETS

24. Mandatory measures 24

25. Monitoring progress towards the EE targets Commission: tailored Primes scenarios and decomposition analysis European project: CA Energy efficiency directive ODYSSEE-MURE The Coalition for energy savings EEA: Trends and projections report ECEEE Other information platforms No tool that provides a clear view on progress towards the target disaggregated by relevant components 25

26. EEA – Trends and projections report 26

27. Tools investigated The American Council for an energy efficient economy- The international energy efficiency scorecard (IEESC) Yale Center for Environmental Law and Policy – Environmental Sustainability Index (ESI) and the Environmental Performance Index (EPI) Germanwatch - The climate performance index (CPI) 27

28. IEESC Matrix (I) 28

29. IEESC Matrix (2) 29

30. IEESC development From internationally recognised sources complemented with country research 31 indicators equally split between policies and quantifiable measures of performance Policy measures assessed based on best practices (e.g. targets); local policies not included Equal weighting for each sector; points for each indicator within each sector allocated based on expert opinion For quantifiable indicators thresholds have been determined based on expert opinion Example: efficiency of thermal power plants thresholds 3 points awarded for overall efficiency of at least 39% 2 points for 31% 1 point for equal to or above 27% no points for countries with less than 27%. 30

31. EE tool: why? 31 Allows for: A more nuanced assessment of progress towards the energy efficiency targets; Comparable information across countries; Identification of key drivers and policy gaps Easy communication of difficult messages

32. EE tool: how? Build on the work we are already doing: GHG emissions, renewable energy, energy efficiency (e.g. obligation schemes, smart meters, etc), transport (e.g. CO2 from cars and vans) Keep costs in check through methodological choices, more extensive use of the EIONET for country specific data, work in-house, etc. Increase policy relevance involving relevant stakeholders early in the process, influence work in relevant EU projects (e.g. CA for energy efficiency directive), simple and attractive ways to communicate results tailored to the needs of specific audiences 32

33. EE tool: what? Policy developments (e.g. good practices) Performance (e.g. energy consumption indicators, energy efficiency obligation schemes, CO2 from cars and vans, etc) Innovation 33

36. The process

37. Timetable DeadlineDeliverable 8 May 2015Inception report on methodology 1 June 2015AG meeting 4 September 2015First draft methodology 30 November 2015Final draft methodology 31 March 2016European energy efficiency tool 2 May 2016 EEA report on progress towards energy efficiency 31 May 2016Database handbook

38. Questions for the EIONET How do member countries monitor progress towards the 2020 energy efficiency targets? What components do member countries believe are essential for the EEA energy efficiency tool (e.g. which sectors, which horizontal measures)? What elements do the member countries find useful to focus on when communicating results? How would the member countries use such a tool? 38

39. Energy efficiency proxy 39

40. Why do we need a t-1 proxy for energy efficiency ? In the GHG Trends and projections report, we assess progress towards 2020 targets in an integrated way T-1 proxies already available for GHG emissions and Renewables 40

41. How do we measure energy efficiency? 41 According to the energy efficiency directive PEC = Gross Inland Energy Consumption – Non energy use FEC = FEC transport + FEC industry + FEC other sectors

42. one size does not fit all… 42 Real and proxy values for German PEC using the different methodologies Source: EEA

43. Main methodologies considered Direct use of relevant data sources: although not all variables are available on time some can be taken directly from Eurostat or other sources. Trend change: if a relevant driver for a certain variable is available on time the trend change of this driver can be used to estimate the change of the variable. Linear trend extrapolation: if a variable shows a clear linear trend this can be used to extrapolate the value for the year t ‑ 1. Previous year’s value: the value for the year t-2 or average of past years is used for t ‑ 1 43

44. VariableMethod and used data Electricity sector HydroTrend change on ENTSO-E. Additional normalisation over 8 years () WindTrend change on wind energy generation from Wind Energy Barometer PhotovoltaicTrend change on photovoltaic generation from Photovoltaic Barometer Concentrated solar powerTrend change on Installed CSP capacity from Solar Thermal and Concentrated Solar Barometer Solid biofuels Other renewables Gross electricity consumption Transportation sector Electricity in road transport Electricity in other transport BiogasolineTrend change on bioethanol consumption from Biofuels Barometer BiodieselTrend change on biodiesel consumption from Biofuels Barometer Other liquid biofuelsTrend change on other biofuels consumption from Biofuels Barometer Share of compliant biofuelsDirect use of shares of certified biofuels from Biofuels Barometer Biofuels from wasteTrend change on total biofuels consumption from Biofuels Barometer Heating and cooling sector Charcoal Geothermal Energy Municipal waste (renewable) Solid biofuels excluding charcoal Biogas Solar thermalTrend change on solar collectors equivalent power from Solar Thermal and Concentrated Solar Barometer Derived heat Heat pumps Total Gross final consumption of energy Previous year value +/- change of gross electricity consumption

45. Annual change FEC industry, different methods, selected countries 45

46. Annual change FEC transport, different methodologies, selected countries 46

47. Annual change FEC other sectors, different methodologies, selected countries 47

48. Data sources considered Eurostat Energy statistics - quantities, annual and monthly data (nrg_10, nrg_10m) Approximated EU GHG inventory Approximated EU RES share BP Statistical Review of World Energy European Network of Transmission System Operators for Electricity (ENTSO-E) Production data US Energy Information Administration (EIA) ENERDATA (ODYSSEE database) 48

49. Questions for EIONET Proposed methodologies to calculate t-1 proxy values for different variables. Are there any other methodologies we can consider? Proposed data sources. Are there any other relevant data sources that could be used? 49