Potentials and benefits of electricity savings in German Trade, Commerce,Services: Study of Wuppertal Institute on behalf of E.

Transcription

1 Potentials and benefits of electricity savings in German Trade, Commerce,Services: Study of Wuppertal Institute on behalf of E.ON 2006 Technology or end-use area CO 2 reduction potential [t/a] TRADE, COMMERCE, AND SERVICES Final energy savings [TWh/ year] Net benefit for society [Mio. Euro/year] Net benefit for custome rs [Mio. Euro/ year] Payback time for custome r [years] IRR for customer [%] Air conditioning of mobile phone base stations 880, % Reduced standby electricity consumption in ICT s 2,403, % Pumps 3,638, % Indoor lighting 6,115, % Ventilation and air conditioning 1,504, % Cooling / freezing 2,528, % Process heat (substitution, fuel savings) 5,461, % Cooking (substituting electricity by gas) 411, % Street lighting and traffic signal lighting 584, % Hot water (substituting electricity by gas) 305, % Heat recovery 1,155, % Thermal insulation + exchange of gas/oil boilers 3,616, % Total 28,604, ,204 2,099

2 High efficiency heating pump: Unspectacular, but powerful - can save 1% of European electricity consumption!

3 Identify and reduce market barriers and market failures! Information deficits missing information tools e.g. for life cycle analysis; false incentives by subsidized energy prices Split markets no functioning competition between energy efficiency and energy supply marginal costs of NEGAwatts are lower than MEGAWatts, but hidden Asymmetrical market power for power generation ( David-Goliath positions ) no fair level playing field : Using grids as natural monopolies dumping prices of great utilities against newcomers/independent producers Different requirements for return on investment ( pay back gap ) Electricity suppliers: 15 years, industry: 2 3 years, households: 1 year Perverse public budgeting: Separation of running costs and investments Investor/user dilemma/split incentives e.g. rented building sector EN/ph-21e/00

4 A Paradigm Shift is Needed: A Policy Mix to Overcome Target Group Specific Barriers and to Foster Climate Mitigation and Efficiency Technologies! Energy tax, subsidy reform Price structure, costs oriented prices Emission trading, JI, CDM Incentives and support (financial, organisational) :for investments, R&D, demonstration, pilots Campaigning: Motivation, information, energy audits, training Efficiency standards/labelling: for products and production (mandatory/ voluntary; Top Runner ) Foster public procurement, bundling of demands etc. Stimulate ESCOs, Contracting/ Third Party Financing (about 600 in Germany) Establish Energy Efficiency Funds: on the national, regional and local level (e.g.proklima/hanover) EU-directive on energy efficiency (target: 1 % additional increase of energy efficiency p.a.) I n t e g r a t e d m a r k e t t r a n s f o r m a t i o n p r o g r a m m e Manufacturers Planers, Installers, Retailers Building, Equip-ment owners, Final users Energy- (Service) Companies

5 The goal: Least cost energy services instead of cheap and risky kilowatthours! Market reforms should include the supply and demand side!

6 Impact of utility implemented energy effciency programs? Detailed analysis shows profitable options!!! Source: Literature List of Wuppertal Institute

7 EU/US incentives and regulation to encourage energy saving programs of utilities Scenario Dedicated Funds Targets and funding for energy companies Main mechanism for creating a quantitative target Size of Dedicated Funds to finance energy efficiency activities Obligations or Negotiated Agreements to implement energy efficiency activities Main mechanism for raising funding Dedicated Funds to finance energy efficiency activities, from special levy or from taxes, administration by independent body or by energy companies Price Regulation, limited to monopoly segments*, or regulated special levy system to enable energy efficiency programme cost recovery; Direct revenues from energy efficiency services Common components of each combination: Price regulation, limited to monopoly segments*, to avoid artificial incentives for increased sales Other legal and technical support for energy efficiency services and programmes Requirement to report on energy efficiency activity results, using common evaluation methods * Distribution and transmission networks and supply to non-eligible customers

8 Savings and incentives from European EE frameworks (common feature: no net lost revenues on networks) Nature of framework Energy saving target (customers) Energy savings achieved Funding of programme costs Benefit-cost ratio for consumers UK Obligation to elec. + gas suppliers 1 % / y (res.), now 1.7 % /y 1.4 % / y Electricity + gas prices 4 : 1 Denmark Obligation on elec. + gas + DH networks 0.5 % / y (all customers) 0.5 % / y Network prices 2.5 : 1 Denmark Electricity Saving Fund 0.5 % /y (res. + public) 0.6 % / y Non-bypassable levy 4 : 1 Flanders Obligation on electricity networks 0.6 % / y 1.2 % / y Network prices Not available Italy Obligation on elec. + gas networks + white certificates 1 % / y? (started ) Network prices Not yet available

9 Bright North Rhine -Westfalia : Cost-effective Market Introduction of Effcient Lighting (CFLs) in 1996 Results: 6 month`s social marketing campaign for the deployment of CFLs; 79 utilities participated 500,000 CFL distributed additional 900,000 CFL bought by "free drivers" total electric energy saved: 550 GWh installed electric power saved: 68 MW total reduction of CO 2 -emissions: 320,000 t program-induced investment volume for CFLs: 6 mil customers' energy costs savings: 70 mil efficiency costs: 1.6 cts/kwh saved avoided costs for electricity supply: 5-8 cst/kwh /03 Source: Wuppertal Institute EN/ph-15e/00

10 Overview on selected innovative regional P&M on climate mitigation policies in Germany Regional Efficiency Funds (e.g. Pro Klima Hannover; planned: Frankfurt) Joint planning and establishment of Energy Efficiency Power Plants by municipal utilities and their associations (VKU/ASEW); DSM+distributed power Electricity efficiency campaigns for SMEs (e.g. cobizz/ Hannover: free impulse audits Euro subsidy for detailled audits) Targeted audits and cofinancing of distributed power systems with customer groups ( e.g. Hannover, Bremen; target groups: SMEs, public buildings companies/ multi family houses, hospitals, hotels, department stores) Regional networks to disseminate information and support the retrofitting of the building stock (e.g. Münster, Düsseldorf) Innovative financing: Contracting, Intracting (within public budget), Citizens Contracting (e.g. Spar+Solar in schools/north Rhine Westfalia; Solarcomplex/Singen) Retrofiting the public building stock by invited tenders for ESCOs (City of Berlin)