Monitoring plans within white certificate scheme

www.fire-italia.org White certificates: Evaluation of the monitoring plan projects in Italy Dario Di Santo, FIRE

EC-JRC Workshop on experiences and policies on energy saving obligations and WhC

Gazzada Schianno (VA) 9-10 April 2013

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The Italian Federation for the Rational use of Energy is a no-profit association that promotes energy efficiency, supporting energy manager, ESCOs and other companies dealing with energy.

Besides the activities directed to its nearly 500 members, FIRE operates under an implementing agreement with the Ministry of Economic Development to manage the Italian energy manager network since 1992.

In order to promote energy efficiency FIRE cooperates and deals with public authorities, energy technology and service companies, consultants, medium and large consumers, universities and associations to promote best practices and improve the legislation.

FIRE

www.fire-italia.org

EGE certification Energy Management Experts

UNI CEI 11339

www.secem.eu Gestione Energia magazine

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3

FIRE activities and projects

www.hreii.eu/demo www.enforce-een.eu

www.ener-supply.eu

www.soltec-project.eu

www.esd-ca.eu

Among closed projects: - www.hreii.eu - www.e-quem.enea.it - www.eu-greenlight.org - www.enerbuilding.eu - Eurocontract

Besides to dedicated meetings, FIRE organises the Enermanagement conference, workshops, and training courses. It implements dissemination campaigns, surveys, market analysis and studies. Among the subjects with which FIRE has cooperated there are ENEA, GSE, RSE, large companies, universities, associations, agencies and trade fairs organizers.

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Saving evaluation methods

Deemed savings (progetti standard): the saving is evaluated with respect to the number of installed reference units (e.g. square meter, kW, number of installed units). No measures are required. Only standardized solutions can be included in a deemed saving file.

Engineering estimates (progetti analitici): the saving is evaluated with respect to some measured quantities through a dedicated algorithm defined in the considered file. Required meters are also indicated in the considered file.

Monitoring plans (progetti a consuntivo): the method is similar to the previous one, but the algorithm, the baseline, the additional saving coefficient, and the needed meters should be preliminarily proposed by the applicant PPPM and approved from GSE (with ENEA-RSE). After the PPPM is accepted the proponent will get WhC by presenting RVC (at least once a year).

Saving evaluation method

Deemed savings Engineering estimates Monitoring plan

PPPM

D.S. file

E.E. file

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Introduction

Monitoring plans

Sectors and tech

Conclusions

Market trends and monitoring plans

0"

10"

20"

30"

40"

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60"

70"

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100"

110"

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07/03/2006"

16/05/2006"

25/07/2006"

24/10/2006"

16/01/2007"

27/03/2007"

05/06/2007"

28/08/2007"

06/11/2007"

29/01/2008"

08/04/2008"

17/06/2008"

09/09/2008"

18/11/2008"

17/02/2009"

28/04/2009"

01/07/2009"

22/09/2009"

01/12/2009"

02/03/2010"

11/05/2010"

20/07/2010"

19/10/2010"

11/01/2011"

22/03/2011"

31/05/2011"

30/08/2011"

15/11/2011"

07/02/2012"

17/04/2012"

31/05/2012"

07/08/2012"

06/11/2012"

05/02/2013"

WhC

's&price&(Euro)&

Market&session&data&

WhC&price&trend&

"May"31st"session"" "DSO's"reimbursement"" "Type"III"" "Type"II"" "Type"I""

Source:"FIRE"evaluaIon"based"on"AEEG"and"GME"data"

!60%%

!40%%

!20%%

0%%

20%%

40%%

60%%

80%%

!6.000%%

!4.000%%

!2.000%%

%!%%%%

%2.000%%

%4.000%%

%6.000%%

%8.000%%

2005% 2006% 2007% 2008% 2009% 2010% 2011% 2012%

%"

ktoe

"

Italian"WhC"targets"and"results"(data"updated"to"February"28"2013)"

Primary%energy%saving%targets%(ktoe)% Issued%WhC%from%June%1st%to%May%31st%(ktoe)%

Eccess%%or%missing%WhC%(ktoe)% (issuedWhC!targetWhC)/targetWhC%(%)%

Source:%FIRE%based%on%AEEG%and%GME%data%2012: 31%

monitoring plans

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Introduction

Monitoring plans

Sectors and tech

Conclusions

The analysis about monitoring plans

Background Considering new projects, monitoring plans are overcoming standard and engineering estimates projects with respect to the amount of generated savings. No deep investigation was carried out and a few data were available on them. The aim of the analysis ENEA commissioned a study to FIRE to:

  investigate monitoring plans and extract information on the results of seven years of presented projects;

  identify trend lines for the energy efficiency technologies used and assess the market penetration;

  verify if the real savings (RVC) matched the forecasts (PPPM);   identify the role of the proponents, the difficulties they encountered and

the most common errors in the presentation of proposals.

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Introduction

Monitoring plans

Sectors and tech

Conclusions

The methodology All the presented PPPM were evaluated and catalogued independently from their acceptance. A database was built with ad hoc categories to confront and evaluate the proposals. Many diagrams and tables have been drawn, an intermediate report has been finalised last year and the final one is to be presented after May 2013. The analysis covered the PPPM for the period from 2005 to 2012. Information within the database:

  date of completion of work and sending of the proposal;   proponent and end user;   result of evaluation from ENEA / Authority;   geographic area of the project;   industrial or civil sector;   technologies employed;   source of energy supply;   type of savings (i.e. electricity, gas, other fuels);   the algorithms use to calculate the savings;   the measurement systems used in the project.

The analysis about monitoring plans

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Introduction

Monitoring plans

Sectors and tech

Conclusions

PPPM presentation trend

Both the effect of the tau coefficient and of the learning curve about PPPM presenting linked to FIRE-ENEA training courses can be seen.

14#

33#

47#

0#

5#

10#

15#

20#

25#

30#

35#

40#

45#

50#

2005)2010# 2011# 2012#(incomplete)#

Monthly#average#PPPM#proposals#

Source: FIRE on AEEG data.

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Introduction

Monitoring plans

Sectors and tech

Conclusions

PPPM are not that easy to present

Detailed analysis focused on the 600 PPPM that have been approved. About half of the approved proposals has required at least a request for integration. Especially in the first years some proposals required 3 or 4 revisions (recently ENEA decided to allow no more than one request of integration.

Less than 10% of the proposals were rejected.

51%$

43%$6%$

0,1%$0,5%$

Accepted$PPPM$

Passed$at$the$first$a7empt$

a9er$1$revision$

a9er$2$revisions$

a9er$3$revisions$

a9er$4$revisions$

Source: FIRE commissioned by ENEA.

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Introduction

Monitoring plans

Sectors and tech

Conclusions

1%#5%# 7%#

87%#

Presented#PPPM#

Electric#DSO#(DE)#

Gas#DSO#(DG)#

Energy#manager#(EM)#

Energy#service#provider#(ESP)#

2%#

30%#68%#

Requested#WhC##

Electric(DSO((DE)(

Gas(DSO((DG)(

Energy(manager((EM)(

Energy(service(provider((ESP)(

PPPM and monitoring plans’ WhC divided by proponent



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Introduction

Monitoring plans

Sectors and tech

Conclusions

WhC breakdown

A strong role of thermal energy consumption emerges in the industrial sector, in opposition to the saving electricity leadership for standard projects.

Toe$from$PPPM WhC$electricity$ WhC$natural$gas WhC$other$fuels WhC$total1.320.000 420.000 580.000 400.000 1.400.000

Yearly$Toe$forecast$in$PPPM$VS$toe$requested$in$RVC

30%$

41%$

29%$

WhC$energy$saving$breakdown$

WhC$electricity$$

WhC$natural$gas$

WhC$other$fuels$


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Introduction

Monitoring plans

Sectors and tech

Conclusions

WhC breakdown: PPPM (above) and WhC (below)

STEEL%METALLURGICAL%

38%%

PETROCHEMICAL%PHARMACEUTICAL%

CHEMISTRY%16%%

BUILDING%MATERIALS%

12%%

AGRO:FOOD%7%%

ENERGY%/%SERVICES%/%WASTE%TREATMENT%

7%%

RESIDENTIAL%COMMERCIAL%

6%%

GLASS%4%%

PAPER%AND%PRINTING%

3%%ICT%2%%

AUTOMOTIVE%MECHANICS%

2%%

WOOD%2%%

TEXTILE%AND%TANNING%1%%

STEEL%METALLURGICAL%9%%

PETROCHEMICAL%PHARMACEUTICAL%

CHEMISTRY%17%%

BUILDING%MATERIALS%14%%

AGRO9FOOD%13%%

ENERGY%/%SERVICES%/%WASTE%TREATMENT%

7%%

RESIDENTIAL%COMMERCIAL%

17%%

GLASS%4%%

PAPER%AND%PRINTING%4%%

ICT%3%%

AUTOMOTIVE%MECHANICS%

6%%

WOOD%2%%

TEXTILE%AND%TANNING%4%%


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Introduction

Monitoring plans

Sectors and tech

Conclusions

Technology breakdown

Source: FIRE commissioned by ENEA. EE"heat"48%"

EE"electricity"17%"

Heat"recovery"9%"

Cogenera8on"16%"

Biomass"6%"

Solvent"treatment"0%"

Civil"sector"4%"

WhC"technology"breakdown"

EE"heat"19%"

EE"electricity"28%"

Heat"recovery"15%"

Cogenera8on"17%"

Biomass"6%"

Solvent"treatment"

1%"Civil"sector"

14%"

PPPM"technology"breakdown""

n°#PPPM requested#WhCEE#heat 128 645.293EE#electricity 186 226.946Heat#recovery 98 112.973Cogeneration 111 210.377Biomass 41 81.487Solvent#treatment 9 5.236Civil#sector 90 48.820

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Introduction

Monitoring plans

Sectors and tech

Conclusions

Heat recovery

With heat recovery for the process we mean heat reused within the same process that generated it. More often the heat recovered at low temperature is used in other processes within the enterprise. The same applies for the two flue recovery categories.

9%#53%#

10%#

28%#

Heat#recovery#breakdown#

HEAT#RECOVERY#FOR#THE#PROCESS#

HEAT#RECOVERY#FOR#OTHER#USES#

FLUE#RECOVERY#FOR#THE#PROCESS#

FLUE#RECOVERY#FOR#OTHER#USES#Source: FIRE commissioned by ENEA.

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Introduction

Monitoring plans

Sectors and tech

Conclusions

Gas cogeneration

The new cogeneration plants are distributed homogeneously among all activities with use of low-temperature heat. A peak of interventions in the food and chemical / pharmaceutical sectors can be nevertheless noticed.

82%$

17%$

1%$

Cogenera.on$proposals$

Gas$CHP$

Gas$trigenera.on$

Gas$quadrigenera.on$

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Introduction

Monitoring plans

Sectors and tech

Conclusions

Biomass

The use of biomass shows a concentration in the agri-food sector where the availability of residues leads to a natural application. Other interesting aspects are the direct use of wood biomass as fuel in the lime factories and biogas in the food industry.

44%#

22%#

10%#14%#

10%#

Biomass#proposals#

BIOMASS#BOILER#

BIOMASS#COGENERATION#

BIOMASS#FOR#PROCESS#

BIOGAS#

BIOOIL#

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Introduction

Monitoring plans

Sectors and tech

Conclusions

Civil sector

59%$

36%$

5%$

Civil$sector$proposals$

BOILERS$AND$HEAT$ACCOUNTING$LIGHTING$

DISTRICT$HEATING$

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Introduction

Monitoring plans

Sectors and tech

Conclusions

PPPM forecast VS requested WhC over years

Caso 1: e.g. building materials, manufacturing industry

Caso 2: e.g. furnace glass, membranes, RDF

Caso 3: e.g. lighting, heating, cooling

Preventivo

Consuntivo

Preventivo

Consuntivo

Consuntivo

Preventivo

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Introduction

Monitoring plans

Sectors and tech

Conclusions

The complete report will give us a lot of interesting information (that would be difficult to summarize in a presentation).

It is better to think about a procedure to collecting and categorising data from complex projects since the start up of the WhC scheme.

Monitoring plans don’t tell us just how many pieces of a technology has been installed, they give us information about industrial processes and trends in technology substitution (a fact that can stimulate many support activities), and they help ESP to grown up and become ESCO or anyway skilled operators.

To make savings in the order of Mtoe monitoring plans are a necessity (unless we pour a lot of money in terms of WhC/”cost of investment” on deemed savings, like we have done for CFL), so it is important to monitor their trends.

A lot of information and training activities is needed in order to get some interesting achievement.

Conclusions

Energy efficiency is complex and to be successful it needs a lot of commitment (in primis by policy makers), the recognition of co-benefits, M&V (not only for WhC to work, but for EPC and banks), information and training. This is true for EEO as well as for any kind of support policy.

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