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The Flanders (BE) regional utility obligations. Ann Collys Ministry of Flanders Department of Natural Resources and Energy. 3 March 2005 - European Parliament. History. RUE-fund as a recommendation of CCEG groups of municipalities paid 0,25 Euro per MWh sold - PowerPoint PPT Presentation
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Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
The Flanders (BE) regional utility obligations
Ann Collys
Ministry of Flanders
Department of Natural Resources and Energy
3 March 2005 - European Parliament
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
History
• RUE-fund as a recommendation of CCEG
• groups of municipalities paid 0,25 Euro per MWh sold
• voluntary agreements with the Government of Flanders
• problems: – limited control by the Government– no energy saving target– limited evaluation
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Legal framework
• Flemish Parliament Act of 17 July 2000 (implementation of the directive)
• Decree of 29 March 2002 (amended by the decision of 26 September 2003) imposes RUE public service obligations on the electricity grid operators
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Legal framework
• Primary energy saving target for end users every year
• Low Voltage clients (<= 1000V)– 1% of the electricity supplied for the year 2003– 2% and 2,1% for the years 2004 and 2005– 2,2% for the calendars years 2006 en 2007– 1% as of 2008
• High Voltage clients (> 1000V)– target of 1% each year
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Legal Framework
• Target in the years 2004 up to 2007 includes the implementation of the resolution of the Flemish Parliament:– in 2004-2005: every head of the family must
receive a free voucher which can be exchanged for an energy saving light bulb, energy saving shower head or an energy meter
– in 2006-2007: every other member of the family receives a voucher for an energy saving light bulb
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Other commitments
• Distribution grid operators must have special attention for: – “protected” clients– municipalities– external organisations
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Plan with RUE actions• Each grid operator submits a plan with RUE
actions for the next year each year before 1 June
• Actions must contain: – financial support (e.g. premium)– awareness-raising and information campaigns– proposal for the calculation of the energy
savings
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Plan with RUE actions
• department evaluates and (dis)approves the method for the calculation of the energy savings
• Not only actions for electricity savings, but for all kind of fuels
• Primary energy saving= electricity saving *2,5
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Examples
Action Premium Saving/year
Energy saving bulb free 168 kWh
Energy saving shower free 1311 kWh
Condensing boiler 125 Euro 7800 kWh
Solar boiler 625 Euro 2410 kWh
Roof insulation 1,25 Euro/m2 158 kWh/m2
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Control and evaluation
• grid operator must draw up an evaluation report every year before 1 May on the execution of the actions during the previous year
• administration must present a report to the Flemish regulator (VREG)
• Flemish regulator starts the legal procedure for the collecting of the fines if the targets are not achieved
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Financing the RUE actions
• Public Service Obligation: costs are incorporated in de electricity tariffs
• if the target is not achieved: fine amounts tot 10 Euro cent for every kWh of primary energy that is not saved up to the target
• fines are not incorporated in the tariffs
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Results 2003
Primary energy savings
381,34
227,78153,57
762,99
426,08
336,92
low voltage high voltage total
GWhp
target savings
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Results 2003
Primary Energy Savings
762,99
457,72
305,26
Domestic clients Non-household clients Total
GWhp
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Results 2003
costs
11,77
4,94
6,83
low voltage high voltage total
MIO €
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Domestic clients
Premiums: 13.629
Amount: 2,86 million Euro
Primary energy
savings: 76,72 GWhp
cost effectiveness: av. 3,7 €cent/kWhp
between 0,5 and 113 €cent/kWhp
excl. actions for protected clients
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Protected clients
0,25 €cent/kWhp1,7 €cent/kWhpCost effectiveness
190,368 GWhp38,166 GWhpPrimary Energy Saving
0,5 M€0,7 M€Costs
145.210225.822Premiums
Energy saving showerhead
Light energy saving bulb
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Domestic Actions
TOP +6 premiums
TOP +6
energy savingTOP +6 cost effectiveness
Energy saving light bulbs
Energy saving showerhead
Energy saving showerhead
Energy saving light bulbs
Tube insulation
Condensing boilers Condensing boilers
High eff. boilers High eff. boilers Roof insulation
Super insulating glazing
Roof insulationEnergy saving light
bulbs
Roof insulationSuper insulating
glazingHigh eff. boilers
Energ saving showerhead
Radiator foil
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Non-household clients
Premiums: 2.828
Amount: 4,73 million Euro
Primary energy
saving: 457,718 GWhp
Cost effectiveness: av. 1,03 €cent/kWhp between 0,25 en 152 €cent/kWhp
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Non-household clients
TOP +5premiums
TOP +5 energysaving
TOP +5 costeffectiveness
Freq. Convertors Freq. Convertors Thorough Audit
Energybookkeeping
Thorough Audit Quick Scan
CondensingTechnology
Relighting Freq. Convertors
Heat Pumps CondensingTechnology
Roof Insulation
Relighting Roof Insulation High eff. motors
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
RUE plans 2004
• Target: – LV: 316 GWh HV: 235 GWh
• Budget: 30,2 million Euro
• new domestic actions: – ventilation– advice on plan
• new non-domestic actions: – new lighting– insulation measures
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
RUE plans 2005
• Target: – LS: 351 GWh HS: 228 GWh
• Budget: 25,8 million Euro
• New actions: – home automation– loans free of interest for condensing boilers in
municipalities
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Advantages
• Energy saving target is quantitative
• Grid operators are stimulated to take cost effective actions
• Financing of the actions is arranged
• Thorough control and evaluation is possible
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Disadvantages
• No uniform actions in Flanders
• Conditions to get the premium differ for the same measure
• Protected clients are hard to reach
• Their is an overlap with other instruments such as benchmarking covenant, tax deduction, ...
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Conclusions
• All network managers reached their target in 2003, except one for high voltage
• the target was reached with less budget than planned
Bottom-up measurement and verification of energy efficiency improvements: national & regional examples
Conclusions
• Target for high voltage is harder to achieve, especially for small network managers
• The targets for 2004 will also be achieved
• An evaluation of the RUE public service obligations is planned in 2005