Promotion of Renewable Energy use, Energy Efficiency and Energy Services Directives

1. REReP regional meeting on “Energy and climate” in South Eastern Europe May 22-23rd, 2008 Brussels, Belgium Promotion of Renewable Energy use, Energy Efficiency and Energy Services Directives Judit Bálint Regional Environmental Center REEEP RS for CEE& Turkey

2. Outline • REEEP • Directive 2001/77/EC • Implementation in MS&SEE countries • Directive 2003/30/EC • Implementation in MS&SEE countries • Directive 2006/32/EC • Directive for promotion of the use of RES

3. Renewable Energy and Energy Efficiency Partnership • Global Type II partnership launched by the UK government at the WSSD in 2002 • 200+ partners, representing 36 governments, businesses and NGO’s, committed to accelerating the uptake of RE and EE • Partner CEE governments: Hungary and Romania • Funded by EU and 11 governments: Austria, Australia, Canada, Germany, Ireland, Italy, Netherlands, New Zealand, Norway, Spain, US and UK (major donor) • reduce market barriers and financial obstacles for RE and EE, and to improve access to energy for the poor.

4. REEEP reduces market barriers • Developing and promoting policies, regulations and standards, which support efficient use of energy and renewables • Establishing innovative finance mechanisms for energy efficiency and renewable projects • Organizing conferences, workshops, trainings for different groups of stakeholders • Providing a platform for/with all stakeholders

5. RS activities -2007/08 • Training for regulators (2), in cooperation with ERRA and SERN, on distribution networks, RE-connection to the grid • RE promotion in SEE through international cooperation, in collaboration with OU, EIHP on energy security, energy diversification in Energy Community Treaty countries • EE financing for block buildings (2) in cooperation with DVD and Hu Embassy, London, on introducing the new fin. mech. to representatives of Hu. Housing Associations and international energy experts • Media Award giving ceremony, following the REEEP Media Award contest • Hu signing ceremony • Preparatory Programme Board meeting • Meetings with possible partners

6. Benefits of RE & EE • Reduces the energy import dependency of the EU • Diversifies the national energy resources (RE) • Increases the security of energy supply • Decreases national and international GHG emission=> compliance with KP targets • Provide opportunities for new employments and rural development=> economic development • Contributes to environmental protection and sustainable development • RE is expected to become economically competitive with fossil fuel energy sources on a mid to long term

7. Directive 2001/77/EC

8. Directive 2001/77/EC Purpose=> to increase the RES-E production and create a basis for future Community framework by: • Increase the share of RES-E in the final electricity consumption from 14% to 21% by 2010 • Double the share of RES in the final energy consumption from 6% to 12% by 2010 • To achieve compliance with EU commitments under the Kyoto Protocol GHG emission reduction targets Achieving this MS are encouraged to: • Set national indicative targets, develop supporting schemes, issue guarantees of origin, develop the administrative institutional framework, grid connection

9. Share of RE in primary energy consumption, 2005

10. Share of RES-E in 2005 and indicative targets for 2010

11. MS compliance – supporting schemes

12. MS compliance – GO 1.

13. MS compliance - GO 2.

14. MS compliance- administrative barriers

15. SEE countries compliance - 1

16. SEE countries compliance - 2

17. Implementation status of Directive 2001/77/EC • Croatia is the only Contracting Party that has been taken concrete measures to implement the Directive 2001/77/EC • The FYR of Macedonia adopted by the end of 2007 the feed-in-tariff support schemes for wind, biomass and small hydro • National targets to be set – firstReport on 1st of July 2008 • Support schemes to be developed – by 1st of July 2009 • Guarantee of origin schemes to be introduced – by 1st of July 2009 • Administrative procedures and grid system issues – by 1st of July 2009 • Consultancy firms provide support to develop the legislative and regulatory framework during 2008

18. Directive 2003/30/EC

19. Directive 2003/30/EC Purpose=> decrease the growing oil dependence and CO2 emission of the transport sector • MS should set indicative targets, with a reference value of 2% by end 2005, and 5.75% by end 2010 • MS should report yearly on measures taken, national resources allocated, sold share of biofuels blended or pure • MS shall implement laws, regulations and develop the administrative background by end 2004 • MS can choose their own fuel mix and measures to achieve targets • Commission to prepare a report by 2006 and every second year after covering=>cost effectiveness of measures, economic aspects and environmental impact of biofuels further increase, life-cycle analysis, sustainability of crops, assessment of use of biofuels and review of more long term option

20. MS compliance

22. SEE countries compliance

23. Implementation status of Directive 2003/30/EC • Obligations under the Treaty are fulfilled – Plans are developed and approved by the Ministerial Council • The further obligations are under the approved Plans • 1st of July 2008 is the deadline, according the Plans, for: • Setting of indicative targets • Monitoring of effects • Ensuring public information • Reporting requirements

24. Directive 2006/32/EC

25. Directive 2006/32/EC - 1 Purpose=> to improve energy security and EE of end users and reduce GHG emissions in a cost effective way by: • Provide indicative targets, mechanisms, incentives, institutional, legal, financial framework to remove market barriers for efficient use of energy • Create the conditions and market for energy services and other EE improvement measures to final consumers MS shall: • Set national indicative energy savings target of 9 % for the ninth year of application of the Directive, set intermediary targets • Measure the energy savings as of 1 January 2008 • Establish the administrative framework • Develop financial instruments for energy savings, establish funds to subsidize EE improvements by grants, loans, financial guarantees

26. Directive 2006/32/EC - 2 MS shall ensure: • Competitively priced energy services and audits • Market instruments (white cert.), voluntary agreements are set up • Equal competition for all stakeholders and the availability for qualification, accreditation, certification schemes • Provide information and advice to final consumers • Individual metering for final customers if financially and technically possible • Billing based on actual consumption Public sector: • Fulfill an exemplary role • Exchange best practices (ex. public procurement) Energy distributors/system operators: • Provide statistical data once a year on their final customers

27. Directive 2006/32/EC - 3 Energy Efficiency Action Plan • MS=> 1st EEAP till June 2007, • 2nd EEAP till June 2011, • 3rd EEAP till June 2014 • Commission after reviewing the EEAPs publish reports: • On 1st EEAP till January 2008 • On 2nd EEAP till January 2012 • On 3rd EEAP till January 2015

28. Promotion of energy from renewable sources

29. Energy Policy for Europe Targets for 2020: • 20% increase in energy efficiency • 20% reduction in GHG emission • 20% share of RE in overall EU energy consumption • 10% biofuel component in vehicle fuel • Current share of RE in energy consumption is 8.5%. • The 20% is an ambitious targets, which requires major efforts from all MS. • To achieve the energy policy goals, EC proposed a new Directive • Provision of 2001/77/EC and 2003/30/EC Dir. that overlap the new Dir. will be deleted at the moment of transposition. • Targets and reporting till 2010 will remain in force until 31 Dec. 2011

30. Directive for promoting the use of RE -1 Scope=> common framework for promoting energy from RES • Mandatory targets for 20% RES share in energy consumption till 2020 • Mandatory targets for RES in transport – 10%, 2020 MS shall: • Adopt National Action Plan on targets for RE in transport, heating and cooling, electricity, measures and national policies to achieve the target • Notify to the Commission by March 2010 • If MS fails to achieve its target, has to adopt a new action plan by June, following year • Ensure that guarantees of origin are issued, with a standardizes size of 1 MWh

31. Directive for promoting the use of RE -2 MS shall: • Designate competent body and national register for GO • Regulate submission, cancellation, transfer according to the Directive • Have administrative procedures, regulations, standards, codes should be clearly defined and in place • Information, guidance training should be available for all stakeholders • Develop grid infrastructure • TSO, DSO provide priority access for RES-E, publish standard rules of bearing and sharing technical adaptation costs, inform new producers, secure non discrimination against RES-E

32. Directive for promoting the use of RE - 3 MS shall: • Ensure and verify env. sustainability criteria for biofuels and other liquid fuels production (compliance with Dir., RE obligations, fin. support) • Ensure proper calculation of GHG saving from use of biofuels and liquid fuels and report to the Commission • Inform the public on the availability and use of biofuels • Set pumps at the fillings stations as specified in the Dir. • Submit a report by 30 June 2011 on promotion and use of RE, and every two years thereafter Commission shall monitor the origin and impacts of biofuels • Report in 2012 and every two years after

33. Conclusion Currently we face an increasing challenge and pressure from global warming, fossil fuel energy scarcity, high and growing energy prices, import dependency, and constantly increasing energy demand. RE & EE is a key element of a sustainable energy future, which largely contributes to the decrease of GHG emissions and to secure our energy supply RE is an indigenous source of energy, does not rely on fossil fuel energy sources, which makes economies less vulnerable

34. Thank you for your attention! JBalint@rec.org judit.balint@reeep.org