Parallel session:'Consumer engagement (EE10) & New ICT solutions for energy efficiency (EE11)'

Horizon 2020 Energy Efficiency Information Day

12 December 2014

14:00-14:05 Welcome and introduction Sergio Ferreira

14:05-14:15 EE10 – Policy Background Kyriakos Gialoglou

14:15-14:25 EE10 – Topic briefing Nina Klemola & Silvia Vivarelli

14:25-14:35 EE11 – Policy Background Carmen Ifrim

14:35-14:45 EE11 – Topic briefing Francesca Harris & Pau Rey Garcia14:45-15:15 Q&A

Agenda

EE10 Policy background

DG JUSTConsumer Strategy Unit

Energy & Consumers Team

Kyriakos Gialoglou

Energy & consumers: Opportunities & costs

"Opportunities for better deals are available BUT

consumers show low involvement and trust in the market."

Protect consumers rights, especially of vulnerable ones

Promote sustainable consumption

Enable active market participation

Policy objectives:

Areas of improvement: provision of info, comparison of offers, switching procedures, complaint handling procedures

Legislative framework

• Third Energy Legislative Package

• Energy Efficiency Directive

• Renewables Directive

• Eco-design and Energy Labelling Directives

• Unfair Commercial Practices Directive

• Consumer Rights Directive

Energy Union & European Consumer Agenda

Energy

Improve consumer safety and

engagement

Improve implementation

step up enforcement and secure

redress

Enhance knowledge

Align rights and key

policies to economic

and societal changes

The Energy Union

Reform & reorganise EU energy policy: • Internal Energy

Market, • Security of supply, • Energy efficiency, • Network investment 20-20-20 & 2030

targets consumers to

contribute & benefit

Evidence for policy development

Market studies: in-depth analyses of problems for consumers + remedies:

Consumer Scoreboards: broad screening of overall consumer conditions

Second Retail Electricity Market Study (ongoing) Comparison Tools Market Study (completed)

Vulnerability Market Study (ongoing)

Behavioural study on energy labels for home appliances (ongoing)

Energy specific policies:

Implementation of EU legislation for better outcomes for consumers the Citizens' Energy Forum

Improving tools for consumers: labels, comparison, bills & e-bills

Evaluation of national best practices on collective & individual switching, self-generation, energy efficiency

Focus on innovation & new technologies access to info & framing

Special attention for those that need it most e.g. vulnerable consumers

Paper bill model

Correct, Clear, Concise & Comparable

E-Bill model

Make info fun & user-friendly

enhance capability of consumer representatives to engage with national authorities and business on an equal basis

policy to take account of actual information on market conditions and on real rather than assumed ‘rational’ behaviour (e.g. our market studies & A-G energy labels testing)

cooperation with national & EU energy regulators & consumer authorities tailor interventions for better consumer conditions

join national energy consumer rights awareness events; listen, learn & take stock

Go local:

Energy regulators & consumer authorities:

Capacity building:

Gather evidence on markets & consumer behaviour:

Our modus operandi

More information

• LATEST WG Report: E-billing & Personal Energy Data Management (6th London Forum) http://ec.europa.eu/energy/gas_electricity/doc/forum_citizen_energy/20131219-e-billing_energy_data.pdf

• Energy and Consumers web – information on Bills (e- bill and paper bill templates, green energy, energy policy http://ec.europa.eu/consumers/citizen/my_rights/energy_en.htm

• WG Report: Transparency in EU Retail Energy Market (5th London Forum)http://ec.europa.eu/energy/gas_electricity/doc/forum_citizen_energy/2012111314_citizen_forum_meeting_working_group_report.pdf

• WG Report Alternative Dispute Resolution in Energy (4th London Forum): http://ec.europa.eu/consumers/citizen/my_rights/docs/energy_adr_report_en.pdf

• Monitoring markets & the Consumer Markets Scoreboard (latest edition July 2013) http://ec.europa.eu/consumers/archive/consumer_research/editions/cms9_en.htm

• The SANCO in depth retail electricity study (3rd London Forum) http://ec.europa.eu/consumers/consumer_research/market_studies/retail_energy_market_study_en.htm

• Report by the Working Group on Billing (2nd London Forum) http://ec.europa.eu/energy/gas_electricity/forum_citizen_energy_en.htm (click on 2nd Citizens’ Energy Forum, Reports)

• Consumer Classroom: http://www.consumerclassroom.eu/

Specific Challenge:

EE10-2015 Consumer engagement for sustainable energy

Residential use of energy is responsible for 28% of EU energy consumption. The barriers to consumer energy saving have been known for more than 30 years but are still present (e.g. split incentives, lack of information, high initial investment, habits of energy users).

Type of Action:CSA (100%)

• Increasing energy efficiency/RES through changing behaviour of consumers using market segmentation and focusing on "action"

• E.g. through use of social innovations and innovative technologies (e.g. smart meters/apps), educational activities or tools (supporting "action"), or RES consumer cooperatives & community-owned projects

Scope:

EE10-2015 Consumer engagement for sustainable energy

A Awareness

IInterest

DDesire

AAction

• Significant impacts in terms of number of people changing their behaviour and taking informed investment decisions

• E.g. each million € of EU support expected to deliver annual energy savings of around 10% for at least 5,000 households (around 8 GWh/year of primary energy savings)

Impact:

EE10-2015 Consumer engagement for sustainable energy

Vulnerable consumers:AchieveEC-lincEnergy AmbassadorsReachSpiritEPEEECOLISHFinSH

RES consumers:ClearCitizenergyRescoop 20-20-20Co-PowerWise Power

EE10-2015 Consumer engagement for sustainable energy

Relevant IEE projects http://ec.europa.eu/energy/intelligent/projects

Households: Energy neighbourhoodsEco n' HomeSAVESEmpoweringEfficiency 2.1PROMISEECCCEnerCitiesEnergy BitsUSmartConsumerFIESTAECCCEECC (offices)

Product labelling and consumers: Euro-TopTen-MaxPromotion 3E

Projects under Grant Agreement preparation (H2020 call 2014):• Transforming markets through informed consumer

purchases, pushing manufacturers and retailers towards more EE products

• Increasing energy efficiency through an effective use of smart meters and in-house displays by vulnerable consumers

• Increasing energy savings in public office buildings through a competition

• Achieving energy savings/increase use of RES through behavioural changes in households

EE10-2015 Consumer engagement for sustainable energy

Lessons learnt:• Do not replicate previous action - build on them!• Consumer action should be at the core of the proposed activities• Capacity building and awareness-raising activities may support

consumer action, but would not be considered consistent with the scope of the topic on their own

• Market segmentation: divide bigger target group into subgroups of consumers and implement specific actions to target them

• Relevant stakeholders necessary for the successful implementation of the action should be involved (in particular consumer associations)

• Impact is crucial: to be supported by clear calculations, robust assumptions and baselines (taking into account relevant data) – clear link to the proposed activities!

EE10-2015 Consumer engagement for sustainable energy

Energy efficiency - Policy at EU level

1. March 2010: Europe 2020: A strategy for smart, sustainable and inclusive growth – COM(2010) 2020• Confirmation of three 20% targets for 2020

2. March 2011: A Roadmap for moving to a competitive, low carbon economy in 2050 – COM(2011) 885• Reduce GHG emissions by 80-95% by 2050 compared to 1990

• A fully decarbonised Power Sector

3. January 2014: A policy framework for climate and energy in the period from 2020 to 2030 – COM(2014) 15• Reduce GHG emissions by 40% below the 1990 level by 2030

20

Political Guidelines for the European Commission

Extract from the Opening Statement of Jean-Claude Juncker, Strasbourg, 15 July 2014

1. A new Boost for Jobs, Growth and Investment• Additional public and private investment in the real economy

• Focus on infrastructure, notably broadband, energy networks, transport infrastructure in industrial centres; education, research and innovation; renewable energy

2. A Connected Digital Single Market• Generate up to 250 billion EUR of additional growth in Europe -> vibrant

knowledge-based economy

• Ambitious legislative steps towards a connected digital single market

3. A Resilient Energy Union with a Forward-Looking Climate Change Policy • A new European Energy Union

• Significantly enhance energy efficiency beyond the 2020 objective, notably when it comes to buildings -> ambitious, binding target

21

EU GHG emissions towards an 80% reduction (100% = 1990) by 2050

0%

20%

40%

60%

80%

100%

1990 2000 2010 2020 2030 2040 2050

0%

20%

40%

60%

80%

100%

Current policy

Power Sector

Residential & Tertiary

Non CO2 Other Sectors

Industry

Transport

Non CO2 Agriculture

22

Policy: How can ICT contribute?

ICT can:

● bring about direct efficiency gains

● help drive behavioural change

By:

measuring, monitoring, allowing intelligent management and control

providing reliable data to governments, industries, citizens about energy consumption / carbon emissions

substituting physical products by virtual services

23

Responsible Research and Innovation (RRI) & Socio-Economic Sciences and Humanities (SSH):

An Organic Approach

RRI actions & SSH expertise are called for as a baseline in Excellent Science, Industrial Leadership, and Societal Challenges

RRI & SSH - explicitly called for in numerous topics, including energy efficiency

EE 11 – Mainstreaming, embedded

Motivate & support change of consumers' behaviour, increase consumer understanding & engagement in energy efficiency

Consumers' involvement & empowerment

Socio-economic analysis/evidence for ICT investment, plans for sustainability, uptake

Main-Streaming

Intensive

Hub

Baseline

• To motivate and support citizens' behavioural change to achieve greater energy efficiency taking advantage of ICT

• while ensuring that energy savings from this new ICT-enabled solutions are greater than the cost of the services.

EE11-2015 New ICT solutions for energy efficiency

Specific Challenge:

• Service and Applications making use of information generated by energy consumers (e.g. through social networks) or captured by sensors (smart meters, smart plugs)

• From Apps for smart phones and tablets to serious games to stimulate consumer's participation into the energy market

The Scope (1/2)

EE11-2015 New ICT solutions for energy efficiency

• The proposed solutions should be deployed and validated in real life conditions in publicly owned buildings (including administrative offices, social housing) and buildings in public use or of public interest.

• Validation should provide socio-economic evidence for ICT investment in the field and include detailed plans for sustainability and large-scale uptake beyond the project's life time

EE11-2015 New ICT solutions for energy efficiency

The Scope (2/2)

• Systemic energy consumption and production and emissions reduction between 15% and 30%.

• Accelerate wide deployment of innovative ICT solutions for energy efficiency.

• Greater consumer understanding and engagement in energy efficiency.

EE11-2015 New ICT solutions for energy efficiency

The Impact

Lessons learned

- Focus on energy savings

- Thoroughly describe pilot building energy consumption

- Validation essential

Check our Frequently Asked Questions available online soon

EE11-2015 New ICT solutions for energy efficiency

!!

• Research & Innovation Action (RIA)

• Indicative budget distribution:

• 8,5 M€ in 2015

• Date of publication: 10 December 2014

• Call deadline: 04 June 2015

EE11-2015 New ICT solutions for energy efficiency

Questions?

Thank you very much for your attention

For more information:• H2020 Participant Portal: http://

ec.europa.eu/research/participants/portal/desktop/en/home.html• EASME ENERGY EASME-Energy@ec.europa.eu