Energy Efficiency in Europe
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1 Energy Efficiency in Europe Assessment of Energy Efficiency Action Plans and Policies in EU Member States 2013 Country Report ESTONIA SURVEY REPORT Progress in energy efficiency policies in the EU Member States the experts perspective Findings from the Energy Efficiency Watch Project 2012 * Christiane Egger (O.Ö. Energiesparverband)
2 Summary Assessment Introduction Sectoral Assessment Conclusions This report is one of 27 country reports published within the Energy- Efficiency- Watch project and assesses both ambition and quality of EU Member States energy efficiency action plans and policy implementation (see more at efficiency- watch.org). Compared to other plans of new Member States, the Estonian NEEAP is very elaborated and well balanced. Estonia sees the buildings sector as priority for energy efficiency (EE) which is underlined by many good measures in that sector. Several incentive schemes exist: subsidies for energy efficient renovations of apartment buildings, for audits, and tax incentives to foster refurbishments. The appliances sector, however, is rather weak and lacks information about education & training. A good process status is recognised by domestic experts interviewed to assess the state of implementation of the NEEAP. The assessment of the sectoral policies is as follows: In the public sector, efforts aim on sustainable public procurement and on increasing the EE of buildings. Therefore, several measures have been implemented and planned, including information and advice, legislative acts and economic incentives. Energy saving in buildings is the main priority of the Estonian EE policy, since most of the country s building stock was constructed before any energy performance requirements were introduced. Both minimum energy performance standards and energy performance certificates are mandatory and should push energetic refurbishments. These instruments are supported by large soft loans and financial support programmes. On the other hand, there is a lack of general information and awareness raising initiatives. Education & training are only planned. The national action plan estimates that there is an energy saving potential of 20% with regard to appliances. Plans for additional measures exist, but mainly EU Directives and a few other measures have been implemented yet. Therefore, the policy could strongly be improved. Nevertheless, Estonia has some plans to increase the EE of appliances. The industrial and tertiary sector is rather well balanced. It considers several aspects and provides a range of incentives and legislative acts to support EE in production processes. There are support measures for energy conservation by manufacturers and a financial instrument that includes energy audits and financing opportunities. On the other hand, 40 % of the experts interviewed diagnose a lack of programmes to promote EE in this sector. Most measures in the transport sector are only planned. Currently, the activities mainly focus on improving the EE of vehicles by acquiring new public transportation rolling stock and by implementing an E- mobility programme. All types of measures have been addressed (planning instruments, regulatory instruments, economic incentives, information and advice, R&D) and different actors have been considered, but most measures are not implemented nor described in detail. Estonia has established a well structured and profound policy framework taking into account its lessons learned. To further strengthen its framework, Estonia should improve the following aspects: Public sector should have a long- term strategy Buildings sector must address education & training for professionals to enable up- to- date renovations and expertise. More information campaigns should provide information for the general public to raise awareness Appliances sector should go beyond minimal EU requirements. Economic incentives to improve/renew appliances should be introduced. Education & training is also missing in the NEEAP which must be addressed Transport sector must improve R&D support and there is a need to actually implement planned measures 2
3 Screening of the NEEAP Overarching Energy Efficiency Governance Framework long- term strategy other actors involved energy- agencies coordina\on/financing energy services horizontal measures MRV Long- term EE target(s) and strategy Involvement of non- governmental and market actors, and sub- national authorities Energy agencies and climate protection agencies EE mechanisms for overall coordination and financing Favourable framework conditions for energy services Horizontal measures Monitoring, reporting and verification Focus on seven important courses of action. Sustainable energy supply and consumption targets until 2020 are in line with EU targets. To increase the competitiveness of industry and small enterprises a co- operation with Enterprise Estonia is mentioned. A national EA no longer exists. Regional EA Turku is established. Funds are in place. Further funds and investment programmes will be issued in the future. Only general information in the NEEAP. More measures are planned. The Estonian Energy Technology Programme sets out the priorities and provides systematic information to decision- makers. Support for R&D. Quality improvement as challenge. Monitoring only top- down. Public Sector public sector strategy role model public procurement public buildings adequacy of Public sector strategy Role model, transparency, and demonstration Public procurement Public buildings The public sector includes cost- effective energy conservation and efficiency measures. However, enegy plans for the public sector are only established on local level. The public sector constantly informs the public of its role and activities with respect to energy conservation and efficiency. Requirements to purchase equipment and vehicles based on lists of energy- efficient product specifications. Investment programmes for energy efficiency, energy audits and energy management for public buildings are in place or planned. However, the description of measures is rather vague. The policy is rather well balanced It addresses the demand and supply side of energy efficiency markets and considers different actors. 3
4 Residential Sector - Buildings standards other regula\ons economic incen\ves Minimum Energy Performance Standards (MEPS) Other regulations MEPS in place since 2008, and it is planned to tighten them gradually. No concrete roadmap defined yet. No enforcement mechanism is mentioned. Several other regulations in place. Further regulations (HVAC inspections, individual metering) are planned. financing instruments cer\ficates Economic incentives Several incentive schemes exist. Financing instruments Large soft loan programmes for energy- efficient renovation established. A tax policy is planned. advice and audits informa\on Energy performance certificates (EPCs) Energy advice and audits EPCs are required at sale or lease since Publication of the certificates is mandatory. Subsidies for energy audits and assistance available. Audits are required for public buildings. demonstra\on educa\on and training Information tools One awareness raising programme mentioned. More are planned. Demonstration projects Funding for low- energy demonstration buildings exsist. adequacy of Education and training for stakeholders No measures implemented so far but the need for education and training is recognised in the NEEAP. Well- balanced policy, addressing different actors and large potentials due to bad condition of building stock are considered. Residential Sector - Appliances standards economic incen\ves energy labels informa\on tools educa\on and training adequacy of Minimum Energy Performance Standards (MEPS) Economic incentives Energy labels Information tools Education and training for retail staff and other supply chain actors The Ecodesign Directive 2010/125/EC was implemented on national level. No additional efforts. There are no concrete economic incentives mentioned in the NEEAP but a survey carries out potentials. Partly included with the implementation of the EU Labelling Directive 2010/30/EC. No voluntary label. There are only some planned measures mentioned in the NEEAP. The MURE database mentions information centres for energy efficiency. No education and training programmes are mentioned in the NEEAP. Some topics are addressed. Estonia has some programmes for the supply and demand side but most of these measures are EU requirements. 4
5 Industry and Tertiary Sector standards saving targets obliga\ons economic incen\ves tradable permits energy taxa\on energy labelling other measures adequacy of Standards for equipment, production process, products Energy savings and action targets for individual companies Obligations / commitments Economic incentives Tradable permits Energy or CO 2 taxation Energy labelling Other measures No further MEPS mentioned in the NEEAP. Targets for different sectors are mentioned, also energy conservation obligations are planned for energy companies. There is a lack of clear responsibilities and only limited information about the targets. Commitments for energy auditing, cogeneration and district heating are implemented. An obligation for energy companies is planned. Support for CHP plants and for renovation of district heating networks is implemented. Financing opportunities for energy conservation measures are planned. Support for installations that receive free quota under the EU ETS is considered. The tax rates partly exceeds the EU minimum rates (e.g. for electricity). Furthermore, companies gain tax exemptions for reinvested profits. Partly included due to EU energy labelling regulation which does not cover all appliances though. Improvement of energy auditors qualification. Development and provision of training events on energy conservation to increase energy management competences of enterprises. Database and methods for benchmarking of companies. The policy mix is rather well balanced. Both, supply and demand side are addressed. Transport Sector planning instruments regulatory instruments economic incen\ves informa\on R&D support adequacy of Planning instruments Regulatory instruments Economic incentives Information and advice R&D support Integrated transport development plan, but almost only planned measures. There is only one MURE measure implemented. Estonia plans to implement a range of measures. Still only few measures are already implemented. Single measures are controversial. A number of ambitious measures was implemented, e.g. highly increased fuel taxation and green investment scheme. Good single measures but partly only planned. An overarching concept is missing. Single measures which are mostly only planned. All types of measures (planning, economic, regulatory, information instruments and R&D) are addressed but most of the measures are only planned. 5
6 Findings from the Expert Survey In 2011 and 2012, Energy- Efficiency- Watch conducted a quantitative and qualitative survey with national experts on implementation of energy efficiency policies in EU Member States. 11 Estonian experts were interviewed to assess the level of ambition and quality of the NEEAP: In the opinion of these experts, Estonia is among the EU countries that has made good progress in energy efficiency policies since the NEEAP 1 (third highest progress in all EU member states). 54 % believe that the national ESD target is likely to be achieved (highest indicator of all countries). Critical issues include the lack of a coherent framework for energy efficiency, binding targets and funding programmes. Experts see a lack of capacity in the public sector. Also municipalities suffer from the lack of staff and financial resources.!"#$%&'()$*+,'--)'./&#&$%)$0)#1+) +%+,23)+00&4&+%43)5$-&4&+" Positive developments reported include the &'(')*++,-.)*/0').05&0 increased availability of funds (especially from emission trading) and more businesses active in energy efficiency sector. But Estonia suffers from a major financing problem. According to the experts, the general economic conditions are not conducive, the government has little funding for energy efficiency investments. Due to the availability of funds (emission trading), experts see significant progress in financial instruments. Also, compared to previous eras, the availability of energy efficiency information has very much improved. In the service sector, a lack of programmes to promote energy efficiency was reported. 40 % of the experts see this sector as the one with the most important energy efficiency policy gap. Many office buildings owners have, nevertheless, started to look into possibilities to act. Across sectors (residential, industry & service), experts observed a still insufficient understanding of cost- effective solutions for energy efficiency potential for improvements. Present car taxation is considered an important problem by the experts as only fuel is taxed (and not the purchase of vehicles) which induces consumers to purchase large, inefficient vehicles. Among specific policy instruments, the Estonian experts rate the effectiveness of energy audits, energy efficiency funds and qualification, accreditation and certification schemes as rather high.!"# %# &'(')*++,-.)*/0').+12 $$#!"# *345/5167.5(.*.8'2.7'9/1)7-.+' (.317/.1/0')7 *345/5167.5(.*.)*(&'.18.7'9/1)7-.+' (.*.8'2.1/0')7!"#$%&'()'*+&,-,.,%#)$/)%'#&$%'0),%,123)"'-&%2")#'12,# %&"!" '()*+',-.//,01',2+,( #$" '()*+',-.//,2+,( ,27',-.//,01',/+(6,'1,(,/1',18 (66.'.10(/,9(5.0*9 '()*+',-.//,:)12(2/;,2+,( #$" '()*+',-.//,3+)'(.0/;,2+,(
7 !"#$%&'().$"#)&.4$1#'%#)2'4")&%),%,123),//&*&,%*3)4$0&*&," 1'4+)9A,31BB+0' <" +0+)*;,9+3'1) %<" ')(09:1)',9+3'1) =<" :72/.3,9+3'1) <" )+9.6+0'.(/,9+3'1) #<" <"?" %<" %?" ><" >?" #<" #?" =<" =?" Good Practice Examples Estonia s focus on the buildings sector is reflected in many good measures. Especially measures concerning economic incentives are very strong. Several incentive schemes exist: subsidies for EE renovations of apartment buildings (up to 35% of project costs, depending on the level of savings), incentives for audits, and tax incentives to foster EE renovation. Such incentives are very helpful due to great saving opportunities in the Estonian housing sector. Great parts of the housing stock of Estonia was constructed before good insulation methods were used. As well most of the heating systems are old and need to be renovated. Huge energy loss, especially during cold periods, is avoidable with professional renovations which are supported (between 15 and 35% of the total amount) by investment grants since The industry and services sector shows a balanced policy framework. Problematic is that Minimum Energy Performance Standards are not mentioned in the NEEAP which should be done. Concerning obligations/commitment or energy labelling there is still room for improvement. Here other NEEAPs can be used for good practice examples. Additionally to mandatory EU directives (e.g. the Ecodesign Directive) France agreed with involved actors on removing the least- efficient light bulbs earlier than scheduled from the market. Setting energy saving targets to companies is a further good practice detected in Bulgaria. They set e.g. individual energy saving targets for industrial systems with an annual consumption over MWh. These entities must furthermore conduct energy audits every three years. White Certificates Schemes are implemented in some countries and are seen by experts as rather effective. Good practice examples for White Certificates Schemes are described in the NEEAPs of UK and France. The weakest Estonian policy framework lies in the appliances sector. Our results show balanced Minimum Energy Performance Standards, energy labels and information tools which can be improved by going beyond EU regulations. Good practice examples can be found in other NEEAPs. For instance information is provided through labels that uses standards and therefore give orientation which can be found in the Netherlands. As well information centres, websites and web based tools e.g. for calculating energy savings provide help and orientation. Those can be found in the Netherlands and especially in France. Economic incentives and education & training are not mentioned which must be done. Financial incentives that target businesses are available in the Netherlands. A tax incentive is also provided by Ireland. The corresponding list of efficient equipment is also used as a best practice list by public bodies for public procurement. This instrument thus links public and private sector purchases and creates a greater market for the eligible energy efficient products. 7
8 Disclaimer The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Union. Neither the EACI nor the European Commission are responsible for any use that may be made of the information contained therein. The analysis performed here is based almost exclusively on the information provided in the NEEAPs. Consequently, a low score for any of the criteria analysed could also be the result of a NEEAP lacking detailed information. The purpose of this assessment is not an absolute ranking among Member States but is focusing on each Member State s individual conditions. The Project In 2006, the European Union adopted the Directive on energy end- use efficiency and energy services ("ESD"). The Directive sets an indicative energy saving target of 9 % by 2016 as well as obligations on national authorities regarding energy savings, energy efficient procurement and the promotion of energy efficiency and energy services. It requires Member States to submit three National Energy Efficiency Action Plans (NEEAPs), scheduled for 2007, 2011 and The Energy- Efficiency- Watch Project aims to facilitate the implementation of the Energy Service Directive and the Energy Efficiency Directive. This Intelligent Energy Europe project tried to portray the progress made in implementation of energy efficiency policies since the Energy Service Directive via NEEAPs screening and an extensive EU wide expert survey. efficiency- watch.org The Authors Ralf Schüle, Thomas Madry, Vera Aydin, Jonas Fischer, Jan Kaselofsky, Thorsten Koska, Carolin Schäfer- Sparenberg, Lena Tholen (Wuppertal Institute) Daniel Becker, Nikolas Bader (Ecofys) Christiane Egger (O.Ö. Energiesparverband) with contributions by Reinhold Priewasser, Michaela Kloiber (University of Linz) Nils Borg (eceee), Dominique Bourges (Fedarene), Peter Schilken (Energy Cities) List of Abbreviations EE Energy Efficiency, EED Energy Efficiency Directive, EPC Energy Performance Certificates, EPDB Energy Performance of Buildings Directive, ES&A Targets - Energy Savings and Action Targets, ESCO Energy Service Company, ESD Energy Service Directive, EU European Union, EEW Energy- Efficiency- Watch, MEPS Minimum Energy Performance Standards, MRV Monitoring, Reporting and Verification, MURE Mesures d Utilisation Rationelle de l Energie, NEEAP National Energy Efficiency Action Plan, R&D Research and Development Photography Credits: PhotoDisc, istock, Photography Credits:
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