1. German Electricity Association (VDEW) 3-3-2005 ·Za1 · Alexander Zafiriou German Electricity Association (VDEW), Berlin Proposal for an alternative approach Workshop – Bottom-up measurement and verification of energy efficiency improvements: national & regional examples Brussels, 3 March 2005

2. German Electricity Association (VDEW) 3-3-2005 ·Za2 · Criteria for measuring and verifiying energy efficiency improvements  Significant amount of energy consumption need to be within the scope of the methodology  Compatibility with existing or future energy efficiency measures on EU-level is desirable (e.g. Commission WP 2005)  Survey of measurement/data should be cost-effective and transparent (as far as possible based on existing measurement/data)  Definition of measurement/data should be standardised within EU  Contribution to the harmonisation of the internal market ... Discussion: Which methodology meets the criteria for measuring and verifying energy efficiency improvements best?

3. German Electricity Association (VDEW) 3-3-2005 ·Za3 · Energy Services Directive: Questions on evaluation  Can the proposed methodology evaluate a top-down target?  Are the required measurement/data already available?  How much effort is necessary for the measuring and how will transparency be guaranteed?  Can experience and approaches be transferred from Member State to Member State?  Can the proposed method contribute to harmonise the calculation- methods within EU? Proposal for Energy Services Directive raised several questions: Questions were drivers for the development of alternative ideas

4. German Electricity Association (VDEW) 3-3-2005 ·Za4 · The Idea: Approach on the basis of indicators  Energy-efficiency-indicators for substantial energy conversion markets do already exist or are being implemented (e.g. domestic appliances: labels, household heat: energy pass 2006)  Simplified and cost-effective statistical calculation with relatively high transparency can be achieved  Implicit harmonisation within the internal market A methodology on the basis of energy-efficiency-indicators can be an appropriate way to meet the criteria for measuring and verifying energy efficiency improvements

5. German Electricity Association (VDEW) 3-3-2005 ·Za5 · Alternative proposal – Overview Not one energy efficiency market but many markets of energy conversion  requirement of customised targets and measures Initial point More than 70 % of the energy end-use consumption in Germany is available Step 1: Defining sub-segments Step 2: Determining indicators Indicators as a degree for the energy efficiency in a sub-segment Step 3: Setting benchmarks Benchmarks on the basis of indicators as a criteria for the requirement of the execution of end-use efficiency measures

6. German Electricity Association (VDEW) 3-3-2005 ·Za6 · Alternative proposal – Markets of energy conversion 1.Market for domestic appliances 1.1 White goods 1.2 Entertainment- / information technology 1.3 Lighting 2. Market for household heat technology 2.1 Heating 2.2 Hot water production 2.3 Air conditioning 2.4 Ventilation 3.Market for industrial furnaces 4. Market for motor and drives in the industry 5. Market for public institutions 5.1 Schools / public administration 5.2 Hospitals 5.3 Swimming baths 5.4 Street lighting 6.Market for transport services More than 70 % of the energy end-use consumption in Germany

7. German Electricity Association (VDEW) 3-3-2005 ·Za7 · Alternative proposal – Indicators  Indicators reflect energy efficiency for individual applications in the respective market of energy conversion  Indicators allow for consideration of the complex market structure and the various customer requirements  Choice of indicators influence evaluation-effort  Sensible choice of indicators has to orientate on transaction costs  High transaction costs – labels, standards, codes of conduct, e.g.  Low transaction costs – audits, services (e.g. contracting) Determining of indicators for 25 Member States is complex Establishing of an European brain trust (e.g. Comitology in line with CHP-Directive)

8. German Electricity Association (VDEW) 3-3-2005 ·Za8 · Alternative proposal – Indicators (example) Indicators reflect energy efficiency for individual applications in the respective market of energy conversion. Market of energy conversion: Domestic appliances Sub-segment: White goods Use: Cooling and freezing Indicator: %age market share of sold A, A +, A ++ -appliances Example:

9. German Electricity Association (VDEW) 3-3-2005 ·Za9 · Alternative proposal – Benchmarks Benchmarks on the basis of indicators serve as a criteria for the requirement of the execution of energy end-use efficiency measures. fulfilment No measures for increasing energy efficiency in this application market required Non- fulfilment Measures for increasing energy efficiency in this application market required Benchmark: arithmetic average of the upper third of the Member States for the indicator „%age market share of sold A, A +, A ++ cooling units“ Example: Dynamic sampling of the benchmark by catching-up processes of the MS

10. German Electricity Association (VDEW) 3-3-2005 ·Za10 · Alternative proposal – Market specific efficiency requirements MS 1 X X  1 = Requirement for MS 1 MS n X  n = Requirement for MS n =  1 X Benchmark 20122006 Energy Efficiency Level (e.g. Market Cooling/ Freezing) Year X MS n+1  n+1 = Requirement for MS n+1 <  1

11. German Electricity Association (VDEW) 3-3-2005 ·Za11 · Alternative proposal – Pros and Cons  Consideration of the complex market structure and the various customer requirements, allow for implementation of goal-orientated measures, where call for action is identified (market specific approach)  Relatively limited evaluation effort (indicators of significant markets existing)  Harmonisation of energy-efficiency-levels within EU  Implicit consideration of „early actions“ is possible  „Technical“ questions have to be addressed on the European level Advantages: Disadvantages:

12. German Electricity Association (VDEW) 3-3-2005 ·Za12 · Alternative proposal – Supporting Associations

13. German Electricity Association (VDEW) 3-3-2005 ·Za13 · Thank you for your attention! contact:  alexander_zafiriou@vdew.net  +49 30 726 147 268