A new era - European Commission · A new era When it comes to climate change, targets usually grab the headlines. How ambitious should our carbon dioxide reduction targets be? Should

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I N T E L L I G E N TE N E R G Y

E U R O P E

Renewable energy

A new era

IN THEIR OWN WORDSEU Directive triggers industry investment in renewables

MANAGER & MANAGED PV Legal

COUNTRY PROFILEPlotting paths for renewables

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EDITORIALBY M A R I E D O N N E L LYDirector at DG Energy

M A G A Z I N E

O F T H E I N T E L L I G E N T E N E R G Y- E U R O P E P R O G R A M M E

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“We’re making good progress and the goal is likely to be met.”

Renewable energy is the focus for this issue of the Intelligent Energy – Europe magazine.

There are many renewable energy projects within the IEE programme, though the ones you can read about in this issue’s lead feature have been chosen because they have had a particularly high impact.

IEE project partners from across the European Union are together helping achieve the Union’s over-riding goal: to boost renewable energy’s share of the EU’s final gross energy consumption to at least 20% by 2020.

Happily we’re making good progress and the goal is likely to be met.

If it is, I’m sure the IEE’s contribution will have been substantial.

You’ll see in the lead feature how the foundation has been laid to enable renewable technologies to roll out across the EU. Offshore energy and biomass are examined in some detail.

Elsewhere, in the regular ‘manager and managed’ section, there are interviews with those responsible for the PV Legal project. Photovoltaic energy has enormous potential but is being held back in certain countries by unnecessary bureaucracy. The PV Legal team has compiled a comprehensive database on the remaining administrative obstacles. How much bureaucracy is required for a rooftop installation in your country?

The country profile section in this issue puts the spotlight on solar, biomass and hydropower in Germany and Poland.

There is also a special focus on energy services companies and related energy performance contracts – solutions for financing energy efficiency and renewable energy in both the public and private sectors.

Enjoy the issue!

Marie Donnelly, Director for new and renewable sources of energy, energy efficiency & innovation, European Commission’s Directorate-General for Energy

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e c . e u r o p a . e u / i n t e l l i g e n t e n e r g y

THE INTELLIGENT ENERGY-EUROPEMAGAZINE

I S S U E N U M B E R

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E U R O P E

Renewable energy

A new era

IN THEIR OWN WORDSEU Directive triggers industry investment in renewables

MANAGER & MANAGED PV Legal

COUNTRY PROFILEPlotting paths for renewables

9 10-11 14-15

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Table of contentsEditorial 2

Lead feature 4-7Renewable energy, a new era

On the ground 8Rethinking renewable energy

In their own words 9EU Directive triggers industry investment in renewables

Manager & Managed 10-11PV Legal

Focus on 12-13Get others to do the hard work

Country profile 14-15Plotting paths for renewables

On the ground 16Training makes the difference

On the ground 17European energy inspiration

On the ground 18The energy of the sun powers our world

Photos: P. 5: © iStockphoto/Teun van den Dries. P. 6: © iStockphoto/Roberto Gennaro. P. 8: © juwi Holding AG; © Fiona Ball; © juwi Holding AG. P. 10: © iStockphoto/Pedro Castellano. P. 11: © iStockphoto/Fabio Ficola. P. 12: © Berlin Energy Agency. P. 13: © iStockphoto/seewhatmitchsee. P. 14: © Piotr Kubiesa and Włodzimierz Łukasik. P. 14-15: © Energietag Baden-Württemberg, Ingo Bartussek, guukaa. P. 16: © Shell; © Shell; © Petras Ruzgus. P. 17: © Toyota Motor Europe; © Claudia Julius. P. 18: © SaaS; © Torresol Energy; © sostenible.cat.

The responsibility for the content of this publication lies with the authors; it does not necessarily reflect the opinion of the European Union. The EACI is not responsible for any use that may be made of the information contained herein. The information contained is given for information purposes only and does not legally bind any of the parties involved.Editors: Andrea Pascal and Cindy Carolle, EACI© European Union, 2011More details on the IEE programme can be found at ec.europa.eu/intelligentenergy

http://ec.europa.eu/intelligentenergy

http://ec.europa.eu/intelligentenergy


LEAD FEATURER E N E W A B L E E N E R G Y

Renewable energy A new era

When it comes to climate change, targets usually grab the headlines.

How ambitious should our carbon dioxide reduction targets be? Should targets be voluntary or mandatory?

What you seldom see in the mainstream press is coverage of exactly how these targets are met. How does the European Union turn these fine words into action?

The target set out in the Renewable Energy Directive of 2009 – that renewable energy should make up at least 20% of the EU’s final gross energy consumption by 2020 – is a case in point.

If Europe meets this target – an increasingly likely eventuality – it will be thanks to a flurry of activity in the EU institutions and in the Member States, almost all of which is out of the public eye.

The Intelligent Energy – Europe Programme helps bridge the gap between the target and the reality on the ground.

IEE projects are bringing together key market players like governments, local authorities, SMEs and industry with the grand aim of accelerating the growth of the RES market in Europe, an increasingly significant market in terms of investment and jobs created.

IEE projects are designed to give momentum to the Renewable Energy Directive: Member States had to come up with a National Renewable Energy Action Plan (NREAP) by the

end of June 2010: now they have to implement these action plans. IEE projects help them while at the same time improving the efficiency of markets and mobilising investments.

For example, REPAP2020 connects European Parliamentary policy-makers and industry with the aim to facilitate the implementation of the Renewable Energy Directive. Initially, the project supported the relevant authorities by offering good advice on the development of the NREAPs; more recently, an independent and detailed assessment of these action plans has been carried out by the project team: “Positive outlooks but more is needed on support schemes. It’s important that the plans are followed by actions from today onwards”, are the main conclusions of this study, says Jan Geiss, EUFORES Secretary General.

Intelligent Energy – Europe targets all lay-ers of government and society. Through Concerted Actions, like CA-RES, respon-sible authorities in Member States work together to find the most effective ways to implement EU Directives. “Together with the Commission, participants from 30 countries meet informally twice per year to exchange best practices and to find common solutions for implementing the Renewable Energy Directive,” says EACI project officer María Laguna.

On a local level, another IEE project, Polis, aims to boost solar energy in six cities (Paris, Lisbon, Munich, Vitoria, Lyon and Malmo) by bringing together architects, urban planners and energy policy-makers.

“Sometimes these professions have dif-ferent priorities,” says María (who is also the project officer for Polis). “They need to integrate solar criteria into city plans, and into tender procedures for city rehabilitation projects. Energy needs to be included at the beginning of the planning stage.”

“We are not just talking about active solar potential, but also about passive solar potential,” adds project coordinator Sigrid Linder. South-facing buildings generate less heating demand in winter, while heat gains can be reduced in summer with proper shading devices. While to decree that all buildings must have south-facing windows would be impractical, town planners are being urged to keep the concept in mind.

The Intelligent Energy –Europe programme aims to help the European Union meet its 2020 renewable energy target with projects that remove barriers, improve market transparency and mobilise investment.

The Intelligent Energy – Europe Programme helps bridge the gap between the target and the reality on the ground.



E U R O P E N°3 - OCTOBER 2011 / PAGE 5

R E N E W A B L E E N E R G Y

Building offshore Grids in the Northern Seas of Europe – what should the grid look like?

“The cable length between the wind farm and the shore has a huge impact on cost,” says Jan De Decker, project coordinator for the IEE project Offshore Grid.

The Offshore Grid project examined the various options for connecting offshore wind farms to the electricity grid. Project partners looked at the technical and economical challenges, the policy aspects and the required regulation.

The result is a set of recommendations considered so thoroughly researched that the European Commission has adopted them. “Governments should favour hubs [of wind farms], and hubs should be developed at the same time,” says Jan. Large zones of wind farms are preferable to numerous smaller zones.

The project examined the relative merits of connecting wind farms to interconnectors, the power lines that ensure security of supply between countries and allow them to trade. While this can lead to cable length savings, it restrains trading capacity between national markets when

there is wind. “Attaching wind farms to interconnectors can be beneficial, though this is not always the case,” says Jan. “It depends strongly on the capacities, the cable lengths, and the price differences between the countries. The trade-off between reduced cable costs and reduced trade needs to be examined on a case-by-case basis.”

EACI project officer Dana Dutianu is very complimentary. “Offshore Grid was a huge effort,” she says, that provided important input to the preparation of the Communication on Energy infrastructure priorities. This document includes several references to possible offshore grid concepts for the North Seas and the Baltic Sea, which were developed by the OffshoreGrid project.

FOR MORE INFO

Communication “Energy infrastructure priorities for 2020 and beyond - A Blueprint for an integrated European energy network” ec.europa.eu/energy/infrastructure/strategy/2020_en.htmwww.offshoregrid.eu/

http://ec.europa.eu/energy/infrastructure/strategy/2020_en.htm

http://ec.europa.eu/energy/infrastructure/strategy/2020_en.htm



E U R O P E



Biomass – particularly wood pellets for power production – has become a globally tradable commodity. Pellet consumption in Europe is around 9 million tons per annum, of which about 2 million tons is imported from outside Europe.

But developing a market for biomass fuels is not straightforward. Investors need to understand what drives supply and demand. They need re-assuring that the commodity is up to standard; differences in quality would stifle trade.

The EUBIONET III project is increasing pricing transparency and supporting the development of standards for solid biofuels.

“When you know how and why prices fluctuate, you understand better the market. People are then more likely to enter,” says EACI project officer Silvia Vivarelli.

Project partners are helping to define the characteristics of solid biofuels, the required physical and chemical

properties, especially moisture content, so that fuels can be properly transported, stored and used.

“The role of biomass has always been important but now there is more international trade,” says project coordinator Eija Alakangas, who has 28 years of experience in the sector. Pricing indexes for industrial wood pellets in the Baltic region are now published monthly, Eija points out. EUBIONET III project partners have worked with the International Organization for Standardization to ensure that biomass fuels can be traded on a reliable basis worldwide.

For the future, Eija is concentrating on new biomass fuels. “In Finland, we are using ethanol from bakery residues,” she says. Finland is however ahead of the game compared to the rest of the world.

FOR MORE INFOwww.eubionet.net



Sustainable public procurement

Implementing effective obligations concern-ing minimum levels of energy from renewa-bles in building regulations and codes for new or refurbished buildings or in the public procurement (for example, for social housing) is a highly technical exercise. Local au-thorities across the EU need to train staff to ensure this takes place with the mini-mum amount of procedures. An IEE project, Patres, has provided authorities with the necessary training.

“The situation varies from country to country,” explains project coordinator Fabio Tomasi. “Local authorities can have a higher or a lower level of freedom. We want to simplify procedures so that it doesn’t take months of bureaucracy to get permission to install a geothermal heat pump or a solar panel. We are working on the details, and as you know, the devil is in the detail.” Defining the optimum level of penalty to deter architects from deviating from their original design is just one example of this delicate process.

“We were taught that, when making local regulations to promote renewable energy and energy efficiency, we should not specify the type of technology we prefer,” says Francesca Ravaioli, energy manager with the Forlì town council in Italy. “We should instead focus on the performance.” Francesca, who has attended three Patres training sessions this year, has incorporated her newly acquired knowledge into a renewable energy tender for a local school.

Municipalities have been actively engaged in another IEE project, PVs in Bloom, which aims to bring together public administrations and

the private sector to support investment in small and medium-scale photovoltaic plants. Project partners are targeting so-called ‘marginal’ land: landfill sites, brown-field sites, former quarries, buffer zones (near airports for example) and former military complexes, all areas with low or no economic value.

“Municipalities own various marginal areas and they are at the same time having dif-ficulties finding financial resources at the moment,” says project coordinator Erica Holland.

PVs in Bloom mobilized investment of ap-proximately Euro 37 million with just Euro 1 million of public support.

Funding is available

Amid all the talk of cash-strapped govern-ments, it should be noted that funding for re-newable energy is still available. In fact, the energy budgets of the EU’s regional and co-hesion funds have not been fully used so far.

“Regional funds can invest in energy efficiency and renewables but there is still a gap between the theory and the practice,” says Damien Cocard, EACI project officer for SF Energy Invest. “Managing authorities and project developers should take advantage of the extended opportunities within the Structural funds to finance and develop energy projects.”

SF Energy Invest targets both managing authorities and fund managers. Matchmak-ing events are held to help bridge the gap between the applicant and the authority.

“It’s about networking, about bringing together the people involved with the

structural and cohesion funds on the one hand and people from the energy sector on the other,” says project coordinator Carmen Heinze. The project team is organising a series of study tours that provide experts from one Member State with the chance to visit another, picking up valuable tips on renewable energy project applications as they go. “In some Member States, the procedures can be lengthy and bureaucratic, which puts some applicants off,” says Carmen. “We want to make the funds easier to access.”

Installers need to be certified

Consumers of renewable energy are a natural target for the IEE programme. The Qualicert project covers the certification of installers of small scale photovoltaic, solar thermal, geothermal, heat pump and biomass systems.

“End users need to be able to choose qualified installers, who will deliver high quality installations,” says EACI project officer Gianluca Tondi. ‘This is important because the quality of installation affects the efficiency of the system. Negative publicity generated by a poor installation can take years to overcome.”

“EU legislation states that by the end of 2012 installers of small scale renewable systems should be certified by national authorities or have equivalent qualifications,” says project coordinator Marjolaine Pont. “This will make the market more transparent, and will increase the overall quality of installations.”

FOR MORE INFO

REPAP2020 www.repap2020.euCA-RES www.ca-res.euPolis www.polis-solar.euPatres www.patres.netPVs in Bloom www.pvsinbloom.euSF Energy Investwww.sf-energyinvest.euQualicert www.qualicert-project.eu

“We are working on the details, and as you know, the devil is in the detail.”

“We are not just talking about active solar potential, but also about passive solar potential.”



ON THE GROUND

“The repowering of just one of the five wind turbines in November 2010 is resulting in an annual yield which is much higher than before.”

Rethinking renewable energyTwo Sustainable Energy Europe Campaign projects make efficient energy approaches even more efficient.

Innovative design for energy performance

In Isleworth, just outside of London, a broadcasting centre like no other is being born. A few exterior details, such as the giant natural ventilation chimneys, hint at the building’s unique energy efficient approach. Sky Broadcast’s design choices and architecture have made the building Europe’s most sustainable broadcasting studio and data-centre.

Sky will use the multi-storey building called ‘Harlequin 1’ as its centre of operations, housing the television company’s recording, post-production and transmission facilities. Harlequin 1 will be fully complete in late 2011, but a large part of the building is already in use.

Every detail, from ventilation options to water consumption in toilets was considered when construction plans were developed. “Renewable energy is at the heart of the building,” says Fiona Ball, Sky’s head of environment.

“To reduce carbon emissions, we will use biomass to fuel a combined cooling, heating and power plant. In addition, the energy from a wind turbine will deliver 55-60% of the annual office lighting requirements of Harlequin 1. And we have even built flexibility into the infrastructure to one

day incorporate other sustainable energy solutions, such as hydrogen fuel cells.”

F O R M O R E I N F OFiona Ballwww.sky.com/environment

Capturing the wind

“Repowering means placing more powerful wind turbines in the best wind locations,” explains Christian Hinsch, juwi’s Director of Corporate Communications. “With our approach we are producing significantly more clean energy using fewer systems than before.”

“With a sensible programme, we can reduce the number of wind turbines and still generate much more power than is currently produced.” Some of the best sites are already occupied by smaller machines nearing the end of their life. These can be replaced by a smaller number of bigger machines.

A project in Schneebergerhof in the Rhineland-Palatinate region of Germany proves Christian’s point. “The repowering

of just one of the five wind turbines in November 2010 is resulting in an annual yield which is much higher than before,” says Christian

Repowering is especially beneficial for countries that have invested in wind energy early on and are now seeking to expand their wind energy production.

F O R M O R E I N F OChristian Hinschwww.juwi.com/wind_energy/references/schneebergerhof.html

http://www.juwi.com/wind_energy/references/schneebergerhof.html

http://www.juwi.com/wind_energy/references/schneebergerhof.html

IN THEIR OWN WORDS


“The PPC group is planning to invest € 2 bn in RES projects within the next four years.”

What impact has the EU Renewable Energy Directive had on industry?

The 2010-2020 decade started out with a groundbreaking proposal for the industry: legally binding targets to reach at least 20% renewable energy by 2020 in the EU. The Directive provides a strong and stable regulatory framework, which is absolutely key to the development of the renewable energy industry in Europe.

Member States’ National Renewable Energy Action Plans show that the approach continues to pay off and that total renewable energy consumption will more than double in 2020.

As far as Greece is concerned, the Directive will boost Greek investments, and there are a number of investors who realise that renewable energy sources (RES) will play a key role in the country’s attempt to return to growth. Public Power Corporation (PPC) is investing to increase RES in the group’s electricity production mix. The PPC group is planning to invest € 2 bn in RES projects within the next four years and is currently developing some large scale projects like the 200 MW photovoltaic plant in Western Macedonia, and the 1,339 MW wind farms in Crete, Karpathos, Kassos and Rhodes.

Progress towards greater use of renewable energy varies from country to country within the EU. Why is this? How in your opinion could countries be encouraged to catch up?

Progress on the use of RES varies from country to country for many reasons. The maturity of each technology could be one reason, as well as the different economic situations and most important RES availability. The Greek RES market faced three main obstacles: the complicated legal framework, public acceptance and grid inadequacy. The new legal framework along with the creation of a one-stop shop for investors has significantly accelerated the licensing procedures. However, much more needs to be done regarding public acceptance and upgrading the grid, for instance explaining to local communities that boosting investments in green energy is one of the best ways to reshape our economy.

Which type of renewable energy do you regard as potentially the most profitable for the electricity industry? And why is that?

A mix of renewable energy technologies is interesting: some provide a back-up to the electricity grid where others provide

for peak-load. Synergies can therefore be achieved while integrating a mix of technologies on the electricity grid.

When assessing RES you must first understand the conditions under which investment is taking place. An investor could be happy with a wind farm with a high load factor or a photovoltaic park with high irradiation or geothermal power in a region with high enthalpy.

Is there anything that programmes such as IEE could do to make your life as a chief executive of a major utility easier?

IEE already plays a crucial role in dismantling institutional, financial, behavioural and informational barriers which slow down RES uptake. In my personal view, the IEE programme directly contributes to the achievement of the RES 2020 target by enabling the sharing of best practices (e.g. through the Qualicert Project on certification of RES installers), by addressing non-technological barriers or facilitating policy implementation (e.g. through the Concerted Action on the RES Directive), and by raising awareness. It is of key importance that the IEE grows with the renewable energy industry, in order to pursue its very useful mission.

The IEE magazine talks to Prof. Arthouros Zervos, chief executive of Greece’s Public Power Corpora-tion.

EU Directive triggers industry investment in renewables

PROF. ARTHOUROS ZERVOSChief executive of Greece’s

Public Power Corporation



MANAGER & MANAGED

“They have involved the right people; industry is doing it for industry.”

Eliminating photovoltaic energy bureaucracyThe PV Legal project has built up comprehensive data on the administrative barriers that hold back market growth.

Zoé Wildiers, EACI project officer, PV Legal.

PV Legal is a key project within the Intelligent Energy - Europe programme, its final ob-jective being the removal of administrative barriers to the installations of RES systems (in this case PV), one central topic of the Renewable Energy Directive. Its contribution to removing the administrative barriers that hold back greater use of photovoltaic energy is already evident, and the project’s impact is expected to outlive the 32 months of EU funding that has supported it until now.

“According to Article 13 of the Renewable Energy Directive, Member States have to remove administrative barriers,” says Zoé Wildiers, the EACI project officer in charge of PV Legal. “This is also just what PV Legal is aiming to do.”

Project partners have not only identified exist-ing hurdles, they are also drawing up concrete policy recommendations that will facilitate

the growth of the entire PV market, from small rooftop installations to ground-mount-ed large-scale plants. In a number of coun-tries, bureaucracy has already been cut back.

The database identified the problems

To achieve this, the time and cost of the various legal requirements (such as permits) for different PV installations in 12 European countries have been fed into the PV Legal database. “With the data we can see why development is faster in some countries than in others. Thanks to the database, we know where the problems are,” says Zoé.

The fact that the PV Legal partners are indus-try associations has also contributed to the project’s success. “They have involved the right people; industry is doing it for industry,” Zoé continues. “If you are a developer you can use the database to decide where to invest. If you don’t like the barriers that exist in one country you can push for change or go elsewhere.”

The project has highlighted the divergent situation in different Member States. “In some countries it can take over 3 years to get a PV permit,” Zoé says.

Cooperation between the project partners, the coordinator and EACI is reported to have been strong.

“The consortium of PV Legal - through the coordinator - kept the EACI continuously informed on project findings and success stories. On the other hand, when one of the partners encountered problems during the course of the project we worked together with the consortium to find a solution so the project could ensure the foreseen impact,” remarks Gianluca Tondi, who was formerly in charge of PV Legal at the EACI.

It will be important to keep up the momentum after the project ends in 2012, says Gianluca. “The PV Legal database will continue in some form. It doesn’t make sense to collect all this data and not keep it updated.”

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Legal-administrative costs as a share of overall project development costs (excluding PV equipment)



MANAGER & MANAGED

“Germany already has 15 years of experience of connections, support programmes and administrative procedures.”

Is it a coincidence that the size of the pho-tovoltaic (PV) market in individual Member States seems to be inversely proportional to the bureaucracy required for installations?

PV Legal project coordinator Thomas Chrometzka does not want to jump to conclusions before the project has run its course, but he admits the evidence points in this direction.

Just look at one of the European Union’s most developed markets – Germany – where the legal and administrative costs of PV installations of all sizes are below 10%. “In the more mature markets, grid operators and authorities are more aware. Germany already has 15 years of experience of connections, support programmes and administrative procedures,” says Thomas. German regulation and permit procedures are so advanced that in most cases grid

operators are legally obliged to accept any PV connection request.

Administrative costs can exceed 70%

Then compare this situation with Poland, where the PV market is not as developed and where the administrative costs of setting up a medium-size demonstration PV installation are in excess of 70% of the planning costs (i.e. excluding hardware).

While growth can sometimes be achieved despite bureaucracy, bureaucratic headaches are always a brake on any market potential. “In Italy and Spain there has been quite significant market growth but legal and administrative barriers are preventing cheaper PV systems from coming online,” says Thomas.

The database the PV Legal team has compiled will itself help reduce these barriers. The data has also been used to compile recommendations that have in some cases already led to changes in the law.

As an example, Thomas points to Spain, where the obligation to obtain a permit for a rooftop PV installation of up to 100 kW for connection to a low-voltage grid was removed by royal decree in April 2010. Spain still has more work to do – the legal and administrative costs of a rooftop PV

installation in Spain are around 39% of the total – but progress is nevertheless concrete.

Diversity between national markets remains: in Germany, most PV installations are rooftop, whereas in Italy and the Czech Republic ground-mounted large-scale PVs have taken off to a greater extent. PV Legal policy recommendations have been tailor-made to reflect this diversity and to boost market segments in all countries.

Among the only administrative hurdles project partners had to overcome among themselves was establishing a common position on the methodology for their analysis. “It’s not that easy when you have a large project consortium,” says Thomas. “It ended up taking much more time than we thought. We realised we had to go into a lot of detail. Eventually, however, the effort was worth it and now we are able to provide good data for the participating countries.”

Despite these challenges and the remaining barriers, the overall picture across Europe remains positive: growth in installed capacity doubled in 2010.

F O R M O R E I N F O w w w. p v l e g a l . e u

Evidence suggests there is a direct link between administrative hurdles and market growth.

When barriers go down, installations go up

Thomas Chrometzka, project coordinator PV Legal.

http://www.pvlegal.eu

FOCUS ON


Sometimes high upfront investment costs and insufficiently short payback periods deter potential investors.

Get others to do the hard workMarket barriers to energy services companies and energy performance contracts must be removed if these useful tools are to reach their full potential.

Sustainable energy has long been a European goal, but sometimes high upfront investment costs and insufficiently short payback periods deter potential investors. One solution is to use energy services companies (ESCOs) or energy performance contracts (EPCs), market-based solutions that can be harnessed to promote energy efficiency and renewable energy sources in both the public and private sectors.

Energy services are broadly defined as any type of project or measure that leads to a verifiable and measurable or estimable energy efficiency improvement and/or primary energy savings. But they must be delivered on the basis of a contract, ensuring that suppliers and customers have confidence these services will deliver what they propose.

The EU has an estimated 700 to 1 000 active ESCOs, turning over as much as €8.5 billion annually. They deliver energy services and/or other energy efficiency measures to their clients, and get paid on the basis of the savings they achieve. Being complementary to EU regulations, these for-profit businesses are seen as key to further stimulating energy efficiency in Europe. Yet the energy services market still faces numerous barriers, including a lack of awareness and information, distrust in suppliers, accounting rules, different procedures in each country, and problems accessing finance.

Both ESCOs and EPCs are highlighted in the EU’s Energy Efficiency Plan 2011 as important means for the promotion of sustainable energy. The European Commission is also looking at ways to boost Europe’s energy services market.

Driving energy services

The Intelligent Energy – Europe (IEE) programme has supported the energy services market via about 20 projects.

The IEE project EESI is raising awareness of energy performance contracting through the annual European Energy Services Award and 24 pilot projects across Europe. It shows that such contracts are a cost-efficient way of using the building sector’s existing potential for energy saving. In the Czech Republic, SEVen, an EESI partner in Prague, is working with the Regional Authority of the Pardubice region to cut energy and heat use in schools, hospitals, social and healthcare centres in 30 different locations. Measures include installation of new enhanced heat-ing systems, reconstructing distribution systems and improved localised control.

The work is financed under a 13-year energy service contract between the ESCO and the building owners, with one year for equipment installation and 12 years to repay the company’s investment of €1.32 m. The ESCO has taken over the full responsibility

for financing, thus the public authority does not need to indebt itself. The project is already delivering natural gas and heat energy savings of €100 000 annually.

“We want to introduce advanced EPC in countries where the concept is established and standard EPC in countries where the market has yet to get going,” says coor-dinator Susanne Berger. But she acknowl-edges difficulties for EU-wide harmonisa-tion: “We learned it makes no sense today to create a European standard for energy performance contracts, so are focusing on national EPC standards which will benefit future projects.”

Confidence is key

There is some scepticism in central and eastern European countries with undeveloped energy services markets that EPCs will deliver the promised energy savings and pay back the investments made by ESCOs or others. So the Permanent project seeks to build confidence among financiers there, by promoting two international protocols that can be used to measure and verify either energy performance or energy efficiency. Several hundred people in each partner country have been trained to use these protocols in energy audits, so as to provide the all-important guarantee of energy savings from an EPC for buildings.

Winners of the European Energy Service Award 2009.

FOCUS ON


“Our project’s 49 field tests already indicate there is huge European potential for profitable energy efficiency services.”

The ChangeBest project is promoting the development of energy efficiency services (EES), while encouraging companies to enter this sector based on good business models. According to coordinator Wolfgang Irrek, “Our project’s 49 field tests in 16 Member States already indicate there is huge European potential for profitable energy efficiency services.” The tests look at ways to roll out services that are either ‘new’ or ‘optimised’ for a company, community or country; results are being turned into guidelines for companies to develop marketable and successful services. One test, in Denmark, targets the refurbishment of private households, a new market niche for energy efficiency services.

FOR MORE INFO

EESIwww.european-energy-service-initiative.netPermanent www.permanent-project.euChangeBest www.changebest.euFRESH www.fresh-project.eu MINUS 3% www.minus3.org

W H AT I S A N E N E R G Y P E R F O R M A N C E C O N T R A C T ?

Energy Performance Contracts (EPCs) are increasingly popular across Europe, especially in Germany, Austria, the Czech Republic and Scandinavian countries. They are not a new concept, but they are only now making inroads into the market, in particular in the public building sector – where they offer owners a guaranteed, quantifiable and long-term reduction in energy consumption and energy costs. They appeal to local authorities seeking easy access to finance in this sector, one traditionally ignored by risk-averse banks.

EPCs come in various forms, depending for example on the agreed payback times or penalties. In a typical one, which may cover heating and the envelope of a building, an ESCO (energy service company) will design and implement an energy retrofit with a guaranteed level of savings. These savings are used to reimburse part or all of the ESCO’s initial investments. The building’s owner or tenants may benefit from some of the energy savings. When all investments have been reimbursed, the contract ends and henceforth the owner and/or tenant benefits from all energy savings.

Current energy performance contracts deliver between 5% and 30% energy savings. The Fresh project is looking at ways of using them in social housing, which accounts for 35 million homes across Europe, and achieving greater savings. According to the coordinator, Christophe Milin, “The energy retrofitting of social housing is hampered by a lack of adapted funding. One solution is to use EPCs, in which an energy service company invests in comprehensive refurbishment and repays itself through the generated savings.” But he notes that laws covering this field must be clarified, to address complete refurbishment and problems of recouping capital from the energy savings enjoyed by tenants after such refurbishment.

700 to 1 000 active ESCOs, turning over

€8.5 billion annually

COUNTRY PROFILE


Plotting paths for renewablesSnapshots of solar power, biomass and hydropower allow German and Polish partners in four IEE projects to roll out new plans.

EU Member States are ramping up their use of renewable energies to ensure they make up at least 20% of their final energy consumption by 2020, in line with national commitments under the Renewable Energy Directive. The Re-Shaping project gives them a helping hand and will contribute to the formulation of European renewables policy beyond 2020.

The project has published RES Policy Country Profiles, which assess Member States’ renewables policy effectiveness and efficiency. The profiles are snapshots of national successes and failures, now widely used by energy-sector investors and local authorities to improve best practice for renewables policy. A web-based ‘scenarios viewer’ also shows how EU policy choices on everything from biomass imports to subsidies would affect

future deployment of renewables. According to the Re-Shaping project’s coordinator Dr Mario Ragwitz, “German government ministries and energy regulators are benefiting from our project recommendations on optimising RES policy measures. This includes the economic efficiency of renewables support schemes and the effectiveness of renewables policies nationwide.”

Germany’s 2020 target is 18%, but it intends to beat this and achieve 19.6% under the new national renewable energy action plan. “Because of this planned overachievement, Germany is in a strong position to discuss the EU Renewables Directive ‘cooperation mechanisms’ with other EU countries,” adds Mario, referring to the possibility for Member States to exchange their renewables target surpluses and deficits.

Switching on solar

About half of the energy consumed in Europe goes on heating and cooling of buildings and for industrial applications. Satisfying this demand is tough. But solar thermal is one proven and cost-effective technology solution. By calling on solar energy, Europe could cover the equivalent of the total space and water heating consumption of almost 10 million households today.

ProSTO aims to boost the use of solar thermal systems by promoting solar ther-mal obligations (STOs), local regulations that oblige owners of new and renovated buildings to install solar thermal systems. The project developed a database on exist-ing STOs, plus a Developers Toolbox to guide communities in setting up their own STO.

The German partners in ProSTO were the City of Stuttgart and the Steinbeis Research Institute (Solites). For new public buildings and renovations, Stuttgart recently set energy requirements that were 30% stricter than the equivalent national legal regulation. This municipal initiative in Stuttgart has been followed by new regional and federal laws using the same approach. The two project partners have capitalised on their STO experience, for example organising a campaign to promote solar thermal in Stuttgart’s multi-family homes.

By calling on solar energy, Europe could cover the equivalent of the total space and water heating consumption of almost 10 million households today.

Stuttgart homes and residences which are ideally designed for the use of solar energy.

Polish farmer’s straw-fueled boiler.

COUNTRY PROFILE


“Hydropower generates a relatively small share of energy in Poland, but plays a significant role in energy grids.”

Newly installed solar thermal plants in Stuttgart increased by 10% between 2008 and 2009, compared with a drop of about 20% across the rest of Germany, mainly due to the financial crisis. Thomas Pauschinger of Solites attributes this to the Baden-Wuerttemberg region’s renewable heat law and Stuttgart’s sustainable energy initiatives. “We learned that solar thermal laws are not enough: local authorities in Germany and the rest of Europe also need support and tools to implement them,” he says, referring mainly to awareness-raising campaigns and guidelines on setting up a STO.

Using local biomass

Many European regions sit on a biomass ‘goldmine’, without knowing it. One project focused on renewables energy planning is now highlighting this huge potential in the UK, Germany, Poland and Italy. BEn, the Biomass energy register for sustainable site development for European Regions, shows local authorities what kind of biomass is available and storable in their area, to prompt them to play an active role in regional energy planning.

The project delivered an online biomass energy register for the four selected regions, using biomass data in a web-based Geographical Information System. The tool’s users can visualise on a regional

basis where biomass energy is concentrated and its energy potential, including where this biomass can be potentially used (energy sinks) especially for heat and electricity production. Armed with this knowledge, regional authorities will develop regional masterplans for sustainable use of renewables. Local communities and farmers are included in every step, ensuring the plan is workable and will succeed.

The project’s two Polish partners are the Institute for Ecology of Industrial Areas (IETU) and the Gostynin Lake District Tourist Communes Association (StowGmin). “In our Central Poland region, the GIS tool convinced local communities that it is feasible to build biomass plants that run sustainably on locally sourced straw or wood,” says Janusz Krupanek of IETU. Potential biomass investments identified there include individual heating boilers for local farms between 20 and 200 ha, medium-sized biogas plants for husbandry farms and food producers, and briquette production for regional use in individual boilers.

Hydropower database

Small hydropower (SHP) covers installed capacity up to 10 MW. Europe still leads the world in this sector, generating enough electricity to power over 12 million households. But while experts see huge

potential to upgrade old schemes or build new ones, SHP production and capacity have stagnated – due to growing environmental concerns and time-consuming administration.

The SHP Stream Map project is looking at opportunities and challenges in the sector. One result is HYDI, a unique database on hydropower installed capacity and production in the EU27, updated annually. “A methodology for reliable data collection for HYDI has been developed, despite severe problems in acquiring data from some major energy actors,” says Dr Janusz Steller, from the Polish Hydropower Association, one of the eleven project partners.

Janusz notes there has been no major hydropower scheme in Poland since 1971, but that more than 80% of its technical hydropower potential remains untapped. “Hydropower generates a relatively small share of energy in Poland, but plays a significant role in energy grids – so vital in a country developing its wind power sector.” The next project goal is to create a roadmap for the small hydropower sector, which can be used to influence the country’s decision-makers.

FOR MORE INFO Ben www.ben-project.euSHP Stream Map www.streammap.esha.beRe-Shaping www.reshaping-res-policy.euProSTO www.solarordinances.eu

“We learned that solar thermal laws are not enough: local authorities in Germany and the rest of Europe also need support and tools to implement them.”

ON THE GROUND


“How a vehicle is driven makes a significant impact on how much fuel is used.”

Education and training projects that are part of the Sustainable Energy Europe Campaign are resulting in real energy savings.

Training makes the difference

Vehicle performance is linked to driver behaviour, load, and fuel purchases.

Helping drivers save energy

As part of the Sustainable Energy Europe Campaign, Shell and its Netherlands-based partner The Emons Group put an innovative new fuel management system to the test using a fleet of 17 Emons Recycling Logistics vehicles. Called Shell FuelSave Partner, the technique is designed for commercial road transport operators and uses in-vehicle monitoring and real time analysis of where fuel is being consumed, lost or used inappropriately. It tracks a range of parameters, including individual measures of driver performance, such as acceleration.

“We have found that driver-related factors are key to improving fuel consumption,” says Dr Joseph Machado, responsible for Shell’s Global Commercial Environmental Solutions. “How a vehicle is driven makes a significant impact on how much fuel is used.”

Using tailored training sessions based on the information provided by Shell FuelSave Partner, Emons worked with drivers one-on-one. Shell FuelSave Partner links vehicle performance with driver behaviour, load management and fuel purchases. Detailed analyses allow fleet managers to engage drivers to take immediate action.

“For some drivers at Emons, we saw up to 10% savings in fuel consumption in the first six months,” Joseph explains. “When

we think about extending the programme across a partner’s fleet of, say, more than 100 trucks, the savings will really begin to add up. That’s good news for the environment.”

F O R M O R E I N F OJoseph Machado www.shellfuelsavepartner.nl or www.shellfuelsavepartner.com (click on “More about” and “Visit web site”)

Never too old to learn

Many Lithuanians grapple with high energy bills because their previously state-owned apartment buildings were built when energy efficiency was not a priority. Renovating is a challenge, because homeowners associa-tions do not typically exist.

The Union of Lithuanian Pensioners (Bociai) has created a popular training programme that addresses this as well as another problem: age discrimination.

“Our training is expressly designed for senior citizens - a valuable sector of the workforce,” says Petras Ruzgus, chairman of Bociai.

Thanks to Bociai, older people are being equipped with marketable skills and im-provements are taking place in apartments across Lithuania. During the seven-day course, participants aged over 50 learn about energy and the environment, as well as the law, and ways to communicate with residents. Many graduates have been hired by building management companies, or have become the renovation representative for their own building.

Of course employment is not the pro-gramme’s only positive outcome. The reno-vations are increasing energy efficiency and savings for individuals, while decreasing CO2 emissions.

F O R M O R E I N F OPetras Ruzgus www.lietuvosbociai.lt

ON THE GROUND


“Customers walk into the dealership at La Rochelle, and say ‘Wow’.”

Two projects, both part of the Sustainable Energy Europe Campaign, demonstrate energy efficient solutions and hold great potential for pan-European replication.

European energy inspiration

Instant information, instant gratification

Individual. Dialogue. Free. These words describe the Energy Savings Club (Energiesparclub) and its interactive Energy Savings Account (iESA), where members input their heating fuel, electricity and water meter readings or usage estimates into an online system. Thanks to 20 integrated online advisory tools, the iESA provides users with instant feedback on how, based on lifecycle-costs, they can increase their energy savings.

“In Germany alone, 32 000 members are registered,” says Claudia Julius of co2online. “These households benefit from free feedback and advice on how to cut costs and CO2 emissions. We found that members are reducing natural gas consumption by an average of 4% each year, and saving even more on costs, especially if prices rise.”

The Energiesparclub was founded in Germany by co2online gGmbH. “As far as we know, no other single system covers so many aspects of energy savings advice and consumption monitoring with a single log-in,” Claudia adds. By next year, membership of the Energiesparclub is expected to reach 100 000.

Replicating this German success, thanks to support from the Intelligent Energy – Europe Programme, co2online and consumer groups

from nine other countries recently launched the “European Citizens Climate Cup,” a competition between private households. Winners are recognised for the largest energy savings and the lowest CO2 emissions, with all tracking done using the iESA.

F O R M O R E I N F OClaudia Julius www.theclimatecup.eu

The future of retail, French style

Close to La Rochelle on the west coast of France, an exemplary car dealership combines innovation and design. Toyota has built a carbon-neutral building that will serve as a benchmark for future projects.

“Toyota takes a 360 degree approach to sustainability,” says Christopher Barrow, Manager of Sustainable Development for Toyota France. This means an environmental strategy for each step in an automobile’s lifetime, from design and manufacturing, to logistics, distribution, and end of life recycling.

“Customers walk into the Toyota & Lexus dealership at La Rochelle, and say ‘Wow,’”

explains Christopher. “It is obvious that together with our dealer Ronan Chabot, we have created something different.”

Energy use is significantly less, thanks to the structure’s energy efficient design. For heating, ventilation and cooling Toyota installed a series of underground pipes that use the temperature of the earth to regulate the inside air. Other features include a green roof to provide insulation and shading, and building insulation made of recycled materials. All showroom lighting uses energy efficient lamps. Furthermore, around 2 000 square metres of photovoltaic panels have been installed on the roof; these produce on average three times the amount of energy consumed on site.

F O R M O R E I N F OChristopher Barrow www.toys-motors.fr/eco-concession-la-rochelle.php

Toyota’s enviro-wise car dealership in La Rochelle is carbon neutral.



ON THE GROUND

“Gemasolar is the first commercial plant in the world to use this technology.”

Spain is host to two forward-thinking Sustainable Energy Europe Campaign projects which use the Mediterranean sun to produce energy for our needs.

The energy of the sun powers our world

Capturing the sun’s rays – with salt!

Further south in Spain, energy experts are putting renewables to the test with an innovative tower plant that uses a combination of solar energy and molten salts to capture and store energy. When commercial production begins at the Gemasolar plant in Seville later this year, it has been estimated that the tower will supply clean and secure energy to 25 000 households, thereby reducing CO2 emissions by more than 30 000 tonnes annually.

Launched by Torresol Energy Investments, S.A., a private energy company based in Bizkaia, Gemasolar is a massive plant that uses central tower receiver technology with a heat storage system. This means that thousands of mirrors (or heliostats) surrounding a tower focus solar rays, and an innovative molten salts system within the tower transfers heat to a boiler. The heat collected by the salts, capable of reaching temperatures above 500 degrees Celsius, generates steam and produces electrical power. Excess energy captured from the sun can be transferred and stored in the molten salt tank.

“Gemasolar is the first commercial plant in the world to use this technology,” says Juan Ignacio Burgaleta, Director of Technology for Torresol Energy. “Storage of the solar energy

is the critical advantage of this system. We have achieved a method that enables to turn a renewable source like solar energy into a ‘dispatchable’ energy, meaning we are capable of supplying electricity on demand. Other renewable energies like wind power generation have no easy storage option.”

The technology has been developed by the engineering and technology group SENER, the majority shareholder of Torresol Energy.

F O R M O R E I N F OJuan Ignacio Burgaleta www.torresolenergy.com

Innovation around every corner

“Considering the Catalan heat, durability is key,” said Joan Sabaté of SaAS Sabaté Associates Architecture and Sustainability. He was describing the facilities of the Blood and Tissue Bank of Catalonia (BST), designed to be sustainable and energy-smart.

Innovation is everywhere. For starters, the walls are extra-thick. The density of the

façade, along with thermal insulation, act as a shield to keep the daytime heat at bay. Air conditioning relies on a free cooling system, which means that when possible cooler air from outside the building is used to ventilate the interior. Solar thermal and photovoltaic systems have been installed on the roof of the BST. Interior blinds with mirrored components transport daylight into the building, which decreases the need for electrical lighting.

“The demand for electricity for lighting has been reduced by about 30% because of the window blinds,” Joan explains. The blinds automatically rotate in relation to the position of the sun.

“The BST is considered to be one of the most energy efficient buildings in the Mediterranean region because of the vast savings in thermal demand,” Joan adds.

F O R M O R E I N F OJoan Sabaté www.saas.es/banco-de-sangre-de-cataluna/

Thoughtful design ensures that the building decreases the need for electrical lighting.

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Dates for your diary

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e x e c u t i v e a g e n c y

f o r c o m p e t i t i v e n e s s & i n n o v a t i o n EUROPEAN COMMISSION

> November 2011: The results of the evaluation of the 2011 call for proposals are revealed.

> November 2011 – February 2012: Negotiations on the proposals recommended for funding.

> February 2012 onwards: Grant agreements will be signed. You can start work!

> Early 2012: Next IEE call for proposals.

Documents

A new era - European Commission · A new era When it comes to climate change, targets usually grab the headlines. How ambitious should our carbon dioxide reduction targets be? Should