ENERGY EFFICIENCY: AN ECONOMIC AND SOCIAL

RESPONSIBILITY

Proceedings of the Rexel – CGEMP symposium

Université Paris DauphineJanuary 24th, 2012

I. Introduction :

Patrice Geoffron Director of the CGEMP, Université Paris Dauphine

Jean-Marie Chevalier Member of the CGEMP, Université Paris Dauphine

Jean-Charles Pauze Chairman of the Management Board, and Chief Executive Officer of

Rexel

Verifier les titres en anglais

Patrice GeoffronDirector of the CGEMP, Université Paris Dauphine

Background informationEnergy is at the heart of a great number of issues.At an international level, the Fukushima disaster calls into question the production of nuclear-generated electricity. It is thus important to quickly think about energy demand management.At the same time, the economic crisis and the rise of energy prices increase fuel poverty, hence the crucial importance of housing energy efficiency.

Fuel poverty means that some households have to spend over 10% of their income on energy. 13% of French households are in this situation, 36% if you include low-income homes.Philippe de la Doucette, head of the CRE (Committee for the Regulation of Energy, a French quasi-autonomous non-governmental organisation), announced a few days ago that in 2016 electricity prices will be 30% higher than today.As unemployment rates rise and purchasing power declines, this is a highly explosive combination of factors.

Energy efficiency is the solution to this problem.According to EU statistics, it could represent an extra 1,000€ of purchasing power per year per household.

2

Jean-Marie Chevalier – economistMember of the CGEMP, Université Paris Dauphine

We reached a particularly difficult moment in the history of energy, because we just started dealing with climate change, a phenomenon that had been loftily ignored for a very long time.We live in a world full of insecurity: the future of energy has never been so uncertain, as is evident from the events we have been witnessing for a year: the shale gas revolution in the United States and its ban in France, the Fukushima disaster, the Arab Spring whose consequences remain largely unknown, the German ban on nuclear power… It’s a fast-moving world. One may wonder what the next crisis will be.

With such a background, thinking about energy efficiency is a win-win game, provided that you can fund it. Eric Besson, the French minister for industry, energy and digital economy, describes energy efficiency as a strategic choice, under all scenarios.

Rexel published a very accurate international survey on energy efficiency that concretely compares the situation in different countries. Some may not agree, but to my knowledge no comparative study has been conducted.The European directive on energy efficiency is very important. It is an extremely clever piece of legislation, we will discuss it later.The recent roundtable organized by the government shows that the global initiative on energy efficiency is gaining momentum.Under most scenarios, the share of electricity in the global energy consumption is expected to rise further. It is a problem, especially during peak periods. Electricity has become a crucial utility for about fifteen years; we just can’t live without it. The 1999 blackout was kind of fun, because it was so uncanny to be powerless for a couple of hours. Today, not being able to charge our appliances is a big issue.

FundingWe are in a difficult period. Regional and local authorities have limited funds, utility companies are not as rich as they used to be fifteen years ago. The price of electricity does not necessarily reflect its full cost.Mr de la Doucette’s statement is both courageous and very cautious.He said that, all else being equal, given the current legislation, electricity prices are expected to rise by 30% between 2012 and 2016. Everyone says that electricity prices are cheaper in France than anywhere else: well, yes and no, because network maintenance costs are not taken into account, and these will inevitably increase. Put differently, French households are going to undergo an increase in prices of basic goods which will undermine their purchasing power. Fuel poverty is a major issue. We must be honest with users: rising prices mean they won’t be able to consume as much as they did in the past, and they are going to feel the difference.

The Court of Audit of FranceIn France, the Court of Accounts (Cour des Comptes) remarked that the measures of the Grenelle Environnement1 must be funded through credit reallocation. For lack of will, this has not been achieved, and for want of courage, nothing has been done yet to tax the gas consumption of big trucks. It’s like running away to fight another day. It seems that some dare not take bold decisions because they seek re-election.Tax revenue must be spent on projects which prioritize energy efficiency while helping the poorest households. It is not about giving checks, but creating incentives.

The issue of energy efficiency is multidimensional: it has economic, financial, political and social aspects. The latter is going to gain importance in the coming months.

1 A multi-party debate in France on environmental issues3

Jean-Charles PauzeChairman of the Management Board, REXEL group

Why does Rexel participate to this debate? The industry is faced on a daily basis with the issues which are being discussed here. The problem is global and multifaceted and should be dealt with as such.

Secondly, fFrom the entrepreneur’s point of view, adapting to our fast-moving world is essential. We are confronted to energy efficiency issues every day, that’s why we must find solutions and strike new partnerships. That’s the reason why we are here today.

Implementing solutions to spare energy is an important part of our business: how can we adapt them to the requirements of construction companies? This is a long-standing technical issue.The necessary shift in behaviours is a more recent question. How are users supposed to react? We are less prepared to tackle this aspect of the problem, since we are in contact with other professionals, and not with the other end of the supply chain. We have been striving to gain a better grasp of these issues since 2008, though. Launching our international survey on energy efficiency last year was a big symbol of this. One of the results is that our solutions must be both practical and sustainable. That’s what our business has to be about.

Technical aspectsParticipants will soon talk about the passive part. Things are already moving forward in this respect.

As for the active part, that is electric appliances, I couldn’t agree more with Jean-Marie; electricity conveys power, but also data. We depend on it more than ever, and we must be fully aware of the global systemic risks our society is exposed to, should a big energy crisis occur.

Funding and education are two of the issues we are facing. We must be able to implement workable solutions as soon as possible. For example, it still takes a couple of years to recoup the cost of energy saving lamps, which is too long.

40% of global energy consumption is used to power buildings, which is precisely our job. Low energy buildings use four to five times less energy! The stakes are very high! As has been said already, it represents an extra 1,000€ of purchasing power per household.As emerged from the answers to the first question of the international survey we conducted in France, the UK, the USA and Germany, 90% of the respondents consider that energy efficiency is a relevant issue! The 2008 crisis most certainly influenced people’s attitudes. But on the other hand, when asked if they feel familiar with energy efficiency, or if they have heard about zero-rate eco-loans, only 40% know what it’s about. There is a huge gap to be bridged.

It is clear that our interaction with a wide range of stakeholders within the energy sector and our outreach to thousands of clients give us a unique role and make us responsible for moving forward.

4

II. Conference

Philippe Pelletier Lawyer, President of the Strategic Committee of the Grenelle Building Plan

Armand Ajdari Deputy R&D Vice President, SAINT-GOBAIN

Silvia-Adriana Ţicău Member of the European Parliament, Energy Specialist, Rapporteur on the Directive on the energy performance of buildings in 2008-2010

Bernard Laponche Nuclear Physicist, Engineer, Expert in Energy Economy

Colette Lewiner Global Leader of Energy, Utilities & Chemicals, CAPGEMINI

Fabien Roques IHS CERA Director (Cambridge Energy Research Associates)

Verifier les titres

Philippe Pelletier – lawyer, President of the Strategic Committee of the Grenelle Building Plan

Today I would like to focus on the renovation of pre-existing buildings. I will omit the important issue of construction norms, for the greatest problem is renovation.

Opening statementWhat is the stake of energy efficiency in buildings? I will make three points afterwards to answer this question.Taking into account energy efficiency in buildings is going to change everything. We must bring about nothing short of a revolution: it’s not about doing things slightly better than before, but doing them differently. Constructing a low-energy building will require new methods. Adding up different skilled trades on the same construction site is not enough, they need to work together. Otherwise the building’s air-tightness may be insufficient, for instance. On the other hand, if we don’t change our behaviour as users (in the office or at home), obviously very little is going to happen. Besides, if homeowners don’t take into account renovation works, the value of their property will go down. Seeking energy efficiency in buildings in order to reduce energy costs will require deep changes.

Helping the poorestAs President of the Strategic Committee of the Grenelle Building Plan, I did my best to target the poorest. Fuel poverty does exist in our country. Looking at the numbers, nowadays over 3,800,000 households spend 10% of their income on heating.In the past years, the government’s strategy consisted in helping them pay their bills (Housing Solidarity Fund, fuel oil premium). Now the paradigm has changed: public money must be used to control bills! A few simple steps: insulating the roof, changing the window panes, updating the heating system. We set up a 1.3 billion euro-programme in partnership with the National Housing Agency aiming at lifting 300,000 households out of fuel poverty in 6 years. A ratio of 300,000 out of over 3 million is certainly not enough, but it is already a huge achievement. Contrary to common beliefs, these people are senior citizens and homeowners, living in detached houses in rural areas. The issue of care-dependency thus adds up to fuel poverty!

5

Helping the average citizenEarlier you hinted at the fact that our tools are complicated and unfamiliar. Renovating our housing is a long-term goal; it won’t be done until 2050, that is, two generations. I am trying to overcome the misperception that everything should be done all at once. The reason is that not only do we have to take concrete steps, but we must also foster a progressive cultural shift of our entire society. Renovating your house is not a natural thing to do. Think about it; compare your house with your parents’: what has changed? Yes, you might have changed the carpet and the wallpaper, but usually that’s about it. Renovating is by no means a tradition.

We must design services that are relevant to the owners’ requirements and not disappoint them. But it takes time. Companies are progressively gaining competence in the field of energy efficiency and are increasingly able to provide adequate services. It took time for policy-makers to implement incentives, but now the system is ready.

Why not make renovation toward more energy efficiency a mandatory requirement instead of relying on incentives?The Grenelle II law provides that the office park nationwide had to undergo renovation works between 2012 and 2020. The government asked me to write the order in council which would define precisely what energy efficiency renovation works consist of.Here is my question: is it responsible today (letting aside the upcoming presidential election) to burden companies with such renovation works on their premises, especially at a time when regional and local authorities are not able to fund supporting measures? There is no other way, though. If we don’t act, we might weaken our imagewe will look pathetic (trop fort), but if we do, you must know that legislation is going to be loosely enforced. At this point I don’t know what to recommend to the government. The system is ready…

The only good news is that half of the 40% energy savings that must be achieved by 2020 depends on a shift in behaviours: fine tuning of thermostats, more cautious maintenance works… Why not take these first steps? There will still be 20% left to achieve, but the first part is easier to implement.

6

Armand AjdariDeputy R&D Vice President, SAINT-GOBAIN

I would like to give my viewpoint as an industrialist: Saint-Gobain is a 40 billion-euro business, an international group which spends 400 million euros on R&D.We are the most advanced construction company in terms of technology solutions. Our goal is to become the industry leader on sustainable housing. Our job is to offer comfortable homes. Most importantly, you may want to know that buildings represent 40% of the overall energy consumption!

Almost nothing has been done so far. Compared to what we can achieve, today’s buildings are a real “thermal sieve”! Right now we don’t need a technological change: solutions already exist, but are not implemented. We just don’t have an energy efficiency sector ready yet. We need a genuine revolution: the biggest energy source on the planet is to be found in energy efficient buildings. One more thing to bear in mind: China builds much more homes every year than we will renovate in twenty years.

The reason why our homes are “sieves” and our sector is little qualified is that we don’t think enough about what a smart building is like, a building adapted to all kinds of constraints: climatic, cultural, social, and local. You need an adequate high-performance material to wrap around buildings with. But such buildings won’t get the full extent of energy efficiency unless you are using low-energy appliances in them. Thinking of renewable energies and buildings as two separate things is missing the point of efficiency… We must learn to think of buildings as mini-power plants. Renewable sources of energy can be part of a building and supply it with power as a self-relying unit. Once again, let’s remember that educating people and changing behaviours is important: for instance, it is useless to have double-glazed windows if you leave them open.

An aspect of the problem has been largely neglected so far: improving our commercial relationship and promoting public knowledge of the latest evolutions. The construction sector needs people able to conduct product demos; unfortunately, it is immeasurably more difficult and complex to present a demo on efficient buildings than to present a smart phone’s new apps. Let me take an example: the multi-comfort house. It uses less than 40 kW/h per m2 per year and produces over 60 kW/h thanks to solar panels. It produces more energy than it uses, and most of all it doesn’t use much. Highly-insulating windows allow coolness in the summer, warmth in the winter.

Philippe Pelletier“The house of the future is beautiful! It is wrong to imagine that energy efficient houses are going to look like thermos flasks or blockhouses. We must combat such misconceptions, buildings can be both energy efficient and beautiful. Besides, it is hardly more expensive than a regular building.”

Armand AjdariAnother special feature of new houses is that now a building’s energy efficiency is decided off-plan. But then there’s not actual verification! That’s why buyers often wonder if promises will be kept. It’s quite a shame, whereas a car is always checked after being built.

Our sector must make its expertise known by developing certificates of quality, taking energy consumption after a year as a criterion. Homeowners too often notice that energy consumption is superior to what they were promised.

About renovation70% of the buildings which will be used in 2050 already exist, that’s why renovation is a priority. People usually don’t have their house renovated for economic reasons, but when it

7

gets too dirty or severely damaged. Given that the savings that energy-efficient buildings can achieve represent the biggest source of energy on the planet, renovating a home regardless of energy would be almost criminal. A house should be retrofitted permanently, not only every 20 years. Energy has to be taken in to account when it comes to renovating a building. Public incentives are necessary, because renovating takes more than re-building. The government should lead the way by renovating public buildings and offering demos.

8

Silvia-Adriana Ţicău – Member of the European ParliamentEnergy specialist. Rapporteur on the Directive on the energy performance of buildings in 2008-2010

Here are the main goals of the directive on energy efficiency of the European Parliament:

Cutting energy consumption by 20% by 2020 while ensuring that basic needs are met (promoting renovation, fostering a shift in behaviours, etc.). Each Member State is free to decide on its reduction rate, provided that it is no lower than 20%.

Promoting and installing smart metres. Implementing measuring and certification systems for energy efficiency, in particular for

buildings.

This directive establishes a common framework for energy efficiency, and the top priority goal is to lower energy consumption by 20%. Each Member State must see to it that from January 1st 2014 on, public authorities renovate annually 3% of their floor space.

Besides, Member States must design an energy efficiency obligation scheme aimed at ensuring that all energy distributors achieve annual energy savings equal to 1.3% of their energy sales, by volume, in the previous year. Member States must also ensure that customers are equipped with smart metres, accurately measuring their actual consumption.By January 1st 2014, Member States shall establish and notify to the Commission a national heating and cooling plan for developing the potential for the application of high-efficiency cogeneration and efficient district heating and cooling. Besides, they shall assess the efficiency of their national energy system.By 30 April 30 each year, Member States shall report on the progress achieved towards national energy efficiency targets.

Amendments currently being discussed at the European ParliamentThis directive raises an intense debate among MEPs. They present amendments on mandatory and optional targets, also aiming at tackling fuel poverty. We are currently discussing the quantification of objectives and time-related issues (number of square metres to be renovated annually, deadlines, etc.)

Funding is obviously a crucial issue. You cannot require people to renovate their homes if you don’t support them financially. That’s why we are trying to increase the percentage of structural funds allocated to Member States for energy efficiency, knowing that many funds devoted to side tasks could be better distributed.

Council’s proposalsThe Council already started to work on this topic. It hasn’t reached a final agreement yet, but the Danish Presidency set energy efficiency as one of its top goals. We are striving to reach an agreement at the European Parliament in first reading so as to take advantage of this political opportunity.

As for the annual renovation of 3% of the floor space, the Council would like to exempt local authorities, religious buildings or constructions with historic or cultural significance.

The Council suggests that smart metres should be given to households for free (80% of citizens must be equipped with electricity smart metres by 2020). As far as heating and cooling are concerned, the Commission is thinking about a cost-benefit analysis of each kind of renovation works.

9

Future goals of the ParliamentThe Parliament is very ambitious; MEPs want to take one step further. We are hoping for an agreement in first reading so as to take advantage of the Danish Presidency and not lose another six months.

10

Bernard Laponche – Nuclear physicist, engineerExpert in energy economy

My first reaction is: “At last!” Energy efficiency is not a by-product of the 2009 crisis. It only becomes a political issue now, but many have been issuing warnings for almost half a century… Actually the real starting point was the 1974 oil crisis.

If you take a close look at what has been done so far, you must recognize that significant efforts were made at European level. If the consumption pattern in 1974 had been confirmed, we would have used twice more energy in 2010 than we actually did. European directives and other policies have thus had a real impact, although we should be far more ambitious.

This issue is complicated and must be taken seriously. Energy efficiency comprises legislative as well as fiscal aspects, but also sector-specific topics. Today our debate is mostly on buildings, but industry and transportation are also affected by energy efficiency norms. Too often only the supply side of the problem is considered, but demand is also a varied, complex and interesting issue which requires the same amount of attention and effort! We must not only consume less energy, but also change our consumption patterns. Half of the power used in homes and offices goes to specific consumption, that is audio-visual appliances, computers, etc.

What matters is cutting primary energy consumption. This commitment also involves cutting electricity consumption: so much can be done in this field. Half of it is specific consumption, i.e. domestic appliances, etc. Here a different kind of companies is involved: domestic appliances manufacturers.

Current political goals are ambitious given the state of our economy.Engines, for instance, make up 70% of the global industrial electricity consumption. It is thus necessary to dramatically improve the efficiency of industrial machinery. Other fact: whereas transportation only accounts for 3% of the global electricity consumption, heating represents 60%! However I wouldn’t mind if the transportation sector consumed three times more electricity up to 10%, it would represent a significant effort to move away from fossil fuels.

Organizing our systemWe know about best practice. We have gained a significant experience in many sectors. Now it’s all about political will. The difficult part is that energy efficiency is a quite horizontal field comprising many sectors; besides, consumers cannot be made responsible for all the problems. What we need is middle-men with an expertise working on the ground: a French mayor willing to take action often doesn’t know who to speak to.

First need: creating a competence network. Besides, I would like to mention pilot schemes: not only are they rarely discussed, but they also often remain experiments and are never implemented on a broader scale, especially when they depend on public funds.

Second need: financial incentive schemes.For example, a semi-public company could work as a middle-man between consumers and the industry. The ultimate goal is to enable consumers to write off their investment thanks to energy savings, but initial funds are needed to get started.

11

Colette LewinerGlobal Leader of Energy, Utilities & Chemicals, CAPGEMINI

I am going to leave the macro level and present to you a series of experiments on energy efficiency in order to give you an insight into how equipment and price can affect the users’ behaviour:

Installation of smart metres in ItalyRelying on the automated meter reading (AMR) technology, this experiment is the first of its kind in Europe and took place between 2002 and 2009. The level of energy losses on domestic networks was very high due to electricity theft. Smart metres solved the problem. Service quality definitely improved, but bills showed that very little power was spared. However, the return on investment was pretty good since security and supply improved.

Time-of-use rates in CanadaThe government in Ontario set up time-of-use rates for electricity: summer rates, winter rates, holiday rates… with maximum rates at peak periods. This experiment, requiring smart metres, yielded very convincing results since peak consumption was smoothed down, with users consuming more outside the peak period. The overall result is a 6% cut on global consumption for 75% of the users affected by the programme.

LED balls in CaliforniaThis is an example of a much simpler technology. Californian energy suppliers decided to offer their customers, who so wish, a LED ball whose colour changes according to the consumption period. This very easy technique, which does not impact the energy supply, surprisingly increases efficiency. It shows that cheaper electricity bills do not necessarily imply more complex equipment. Customers adjust their consumption according to the colour-changing LED ball, using less power during peak periods. This experiment had a significant impact on users’ behaviours.

Smart metres are a popular topic in Europe, but the user must interact with the metre if you want to see results: the first generation of Linky metres didn’t allow such an interaction since you couldn’t tell how much power you had used up. In Europe, however, this raises the question of personal data, whereas in the US users turn over energy management to specialized private companies, or directly to the energy distributors themselves.

One last essential aspect: informing users.We must get an insight into the users’ behaviours: using segmentation, marketing and communication methods is crucial to reach out directly to users and inform them. As the LED ball experiment suggests, a shift in behaviours is the first way to improve energy efficiency. The simplest operations are the most successful.

Smart metres alone are not enough. You need to set up digital displays in the living room or in the kitchen and to connect metres onto smart phones so that the user can take a glance at his real-time consumption. Most importantly, they are useless unless you get them out of the basement.

12

Fabien RoquesIHS CERA Director (Cambridge Energy Research Associates)

The declared target of the European Union is to cut energy consumption by 20%, but if we follow the current trend I’m afraid we won’t do more than 10-11%. These numbers are similar to those found in some of the Commission’s studies.

A range of technologies could help us curb our consumption, be it at home or in the office. The “green scenario” drawn up in the Ecodesign directive lists some of them.

In the household sector, putting appliances on standby mode is a solution. As you may have noticed if you bought a new TV set, modern domestic appliances switch off automatically after being put on standby: it’s a quite simple way of saving energy. This significant change is a good example of a successful policy.

In the commercial and industrial sector, things are not as easy. Lighting and heating are the two main targets. So far we have identified targets and the technical solutions that must be implemented.

When it comes to housing renovation, an interesting limitation deserves to be mentioned: the principal-agent theory.When you buy a home you often lack information about energy efficiency. Besides, it’s not in the landlord’s interest to renovate if only the tenant is going to benefit from it. In return, it’s not in the tenant’s interest to renovate his home if the works become profitable only after ten years when he’s not likely to live there anymore.

Another financial problem is return rates.The initial funding is not always possible, and return rates are often unknown!This kind of double jeopardy is the reason why energy efficiency investments are still difficult.

The British Green Deal, a very promising example:This initiative includes an array of innovations in the field of housing renovation: lower if not zero initial investment cost, less paperwork and administrative procedure…The government created an investment bank offering low interest rate loans. Households and bankers struck a deal: the loan repayment is attached to the house itself. If you sell your home, you also sell the loan that helped make the house more energy efficient. This technique is being expended on a broad scale.So far the UK is the most advanced country in Europe in this field.

Energy efficiency is also a network management issue. A distinction must be made between two aspects: sustained energy demand management on the one hand, and rolling blackouts on the other. Rolling blackouts, also referred to as load shedding, is a last resort way of avoiding a complete blackout during peak periods. Rolling blackouts have spread very quickly in the US since 2005. In France, on the contrary, rolling blackouts have decreased steadily since 2000. We consume more and more. In 2000 you could make up for a four-degree drop in temperature merely by resorting to rolling blackouts. Today, rolling blackouts can only make up for 1°C, all things being equal. In ten years we have become much more vulnerable to temperature drops, because we consume more electricity.

13

III. Questions and answers

Who benefits from the promotion of energy efficiency?

Colette LewinerUsers certainly do, but it is less certain that utility companies do, since they aren’t interested in lower sales. They are more interested in rolling blackouts. That’s why we need a paradigm shift through regulatory certifications.Reducing peak periods is in the interest of the economy!For the rest, Californian regulators obliged utility companies to raise their rates only when they were cutting power consumption… they basically get paid for selling less!This paradigm shift affects all energy companies, not only those selling kWh.

Fabien RoquesIt’s hard to say who benefits from energy efficiency today. We don’t have a system of economic incentives, and we need to design it now!Today people buy energy, tomorrow they will pay for the service that energy represents. Once this system is implemented, users will obviously benefit from it, as well all those playing some other part in this important innovative sector.Soon all actors will be involved, from equipment to energy suppliers.

Philippe PelletierWe must think about the issue of the value of real estate.For example, at the business district of la Défense, big companies take energy efficiency grades into account when they buy office space. Project developers must adapt, offer more energy efficient buildings, and suppliers will adapt, too.The same logic prevails for households: real estate agencies display small posters showing the energy efficiency of the homes they sell.

Is there a genuine energy efficiency industry in France?

Jean-Charles Pauze

An energy efficiency sector has yet to be created, and it will include several components.

Manufacturers are able to improve their products, but what matters most is their ability to cooperate. It doesn’t make sense to separate things. So yes, the industry itself exists, but now we must ensure coherence between its members.

The industry isn’t informed enough; it cannot find its way around, that’s why a lot needs to be done to inform and above all train the various stakeholders. We’ve done a lot in this direction, but the system won’t succeed unless we ensure it is coherent.

14

Does energy efficiency entail high additional costs when it comes to renovation?

Silvia-Adriana Ţicău The European directive requires that if renovation costs exceed a certain threshold, public authorities are liable for the cost. Every possible step should be taken to ensure that the energetic benefits of renovation are taken into account.

Philippe PelletierAccessibility of buildings should serve as a pretext to deal with renovation and its costs. According to French building trade associations, energy efficiency accounts for nearly half of the global renovation budget. Additional costs are high, but on the other hand this evolution makes sense for real estate. Landlords have a vested interest in the rise of a building’s price. Energy performance contracts setting concrete goals are an interesting novelty in this respect.

Philippe Pelletier explained that renovation was a revolution in the building sector. Since energy efficiency is a cross-cutting problem, different trades must cooperate to make something new together. Building a smart neighbourhood is an even more horizontal undertaking. Unfortunately, although energy efficiency is becoming familiar, it is too often thought about sector by sector.The big question is to know whether it is possible to achieve energy efficiency nationwide through a long-term cross-cutting initiative.

Philippe PelletierI couldn’t agree more with what has just been said. I would like to illustrate your point and mention another aspect.

A process of certification of construction companies is taking place. Building trade associations agreed that from 2014 on only qualified companies will be able to benefit from public funding, such as zero-rate eco-loans.

Secondly, energy efficiency also affects regulation. Demand for higher quality products is growing and customers have an increasingly accurate knowledge of energy efficiency measures.

Bernard LaponcheI am convinced that energy efficiency should be a collective cross-cutting undertaking, just like public transportation in suburban areas.

However, although I am not against it, I don’t believe in the rise of electric cars. I am afraid that promoting electric cars isn’t the proper way to foster a shift in behaviours.

15

Member of the audienceI work for the electric automobile industry and I believe that a whole range of solutions exist, and electric cars are one of them.

As far as buildings are concerned, in my opinion government and society as a whole have a long-term interest in sparing energy, since it will become profitable on the long run. We are slowly getting started.

Should energy efficiency become a mandatory requirement for private companies? Sparing energy will enable them to write off future investments. The state of the economy matters: when it is good, no one talks about sparing energy, but when it goes wrong then people start thinking. Government funds are necessary to help and to ensure that everyone is on an equal footing, by supporting training programmes and by controlling loans.

Are there ways to know ift energy efficiency policies are successful or not?

Armand AjdariCompanies committed to sparing energy by implementing energy efficiency improve their image because they allegedly protect the environment by emitting less CO2.

Hiring more qualified employees makes a company more efficient, they are its driving force. Some of the final users are aware of the issue of energy efficiency and have an increased access to information.

Clients tell us about what they’ve found on the internet on energy efficiency and we must be able to meet their new expectations and requirements. Clients and craftsmen ask us for information, especially about regulation and incentive policies, our services and the products we use. They know what they want and make us want to work for them.

Philippe PelletierThe Court of Audit of FranceIn France, the Court of Accounts has just published a report that criticizes harshly the way public money is spent on the Grenelle, although the Building Plan is spared by these criticisms.

The costliest and least efficient measure is the sustainable development tax credit. The government uses it to make equipment more efficient, but it’s difficult to see exactly what good this measure does.

Lending money to owners and joint owners through a collective eco-loan would actually be simpler and more efficient.

16

How efficient are public policies, particularly tax credits?

Colette LewinerRegulatory solutions are possible, provided that they are enforced, but it’s rarely the case.Can you check the way public subsidies are actually used by beneficiaries? It is very complicated, and I don’t trust too complex and unenforceable measures.

Bernard LaponcheOne way to achieve results is simply to create legal standards.For instance, California put a ban on appliances that consume too much energy!

Armand AjdariSystems promoting solar panels have been implemented by several countries. Implementing energy efficiency in buildings is a difficult task, because landlords and tenants alike have no short-term interest in doing it, hence the inertia of the building sector.Cooperation on energy efficiency should help design a technical certification system, a smarter labelling scheme, the long-run target being state-of-the-art energy efficiency norms for buildings.

Fabien RoquesTax credits have a distorting impact on the market, but they are a good incentive. Most of the equipment selected by public authorities is twice more expensive. It’s a fact, state aids necessarily make prices go up.

Colette LewinerBeware of labyrinthine legislation.

Is there a way to organize the sector towards sales to private homeowners? How can services be formatted and simplified towards more accessibility?

Silvia-Adriana Ţicău The Energy Performance Contract is an important first step as it provides necessary information.

Philippe PelletierRaising awareness is essential; every opportunity should be seized to reach out to the public!People should be made aware of energy audits when they buy or sell a house. Joint owners should be made to cooperate and have their property audited. As for poor households, it is necessary to assist them until they are granted a state aid. We implemented “work bundles” combining different operations. It is arguable that zero-rate eco-loans should target renovation works.Helping households is a good way to improve electric efficiency.

17

IV. Conclusion

Jean-Charles Pauze 

Energy efficiency must be seen as a global societal issue.What matters is that promises on energy efficiency be actually kept!We need to work together in this sector and raise the awareness of endfinal users. One cannot work on his own. The sector’s key actors should cooperate and complement each other if they want to move forward.Educating and raising public awareness is essential..To change their behaviours, people must be taught what energy efficiency really is. People must be taught what energy efficiency actually is so they can change their behaviours structure à revoir.

Let me take two examples: in the UK, it took us around a year to make parking lot owners understand that it was efficient to install remote-controlled low-energy lamps (return on investment after less than a year). In gas stations on the side of the highway, 98% of the air-conditioning engines motors are very old, worn out and consume a lot of energy… Only by educating people can we foster change.

Two points made during the conference seem crucial to me: The end user: He undergoes most of the change, and therefore needs to be educated to accept policies. Collective work and assessment: It is clear that the most advanced countries are those where the government, industry and other actors cooperate.

Jean-Marie Chevalier

In France, tThe national loan scheme (“Grand emprunt”) has been little discussed. Part of it will be spent on universities, another part on innovative energy projects in the framework of the Grenelle Plan.I am struck to see how innovative these projects are: if I were a student here at Dauphine attending this meeting, I would say to myself: ‘This is fantastic, there are so many future opportunities out there!’ On the one hand, energy is getting more and more expensive, and on the other hand citizens and consumers are getting aware of the advantages of energy efficiency.

I realize that everything that has been said here calls for new business models: this formidable undertaking will bring about new jobs, along with innovative and smart solutions for the future.

18