Design of Energy Effficiency Obligation scheme (EEO)
Germany has not implemented an Energy Efficiency Obligation scheme but intends to meet the energy savings requirement under Article 7 (1) EED via alternative measures in line with Article 7 (9) EED.
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Proposed alternative measures
Germany makes use of the option set out in Article 7 (9) EED and enhances the measures already in place enlarged by a comprehensive strategy, the National Action Plan on Energy Efficiency, introducing several new measures. Accordingly, the entire notified energy savings are expected to come from alternative measures.
Type of measures: The policy measures towards fulfilment of the savings target pursuant to Article 7 (1) EED are a mixture of
- regulatory measures such as the Energy Savings Regulation,
- investment support such as the KfW support programmes for energy-efficient construction and renovation,
- measures affecting prices such as the Energy and electricity tax, and
- measures to improve energy efficiency through information and advice such as the Federal Advisory Programmes.
Scope/Target sectors: Depending on the measure the following sectors are in the focus: private households; commerce, trade and services; industry; public authorities; cross-cutting technologies; transport.
Body responsible for the measures: Depending on the measure the Federal Ministry for Economic Affairs and Energy, the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety , and/or the Federal Ministry for Finance are responsible. Administration is dedicated to specific units within the ministries, especially the Federal Office for Economic Affairs and Export Control, federal states, or promotional banks (the German government-owned development bank: KfW – Kreditanstalt fur Wiederaufbau; and Germany’s development agency for agribusiness: Landwirtschaftliche Rentenbank).
Target setting: Yearly volumes per measure sum up to cumulative savings of 1,758 PJ until 2020, meeting the 1.5% additional yearly savings target proposed in the EED.
Calculation method for savings: For each measure the methodology of calculations can be looked up in a study commissioned and published by the German Federal Ministry for Economic Affairs and Energy (“Endbericht: Endenergieeinsparziel gem. Art. 7 EED und Abschatzung der durch politische Ma?nahmen erreichbaren Energieeinsparungen”).
Additionality: Investment support programs are designed to encourage investment going beyond the legal requirements/standards. Moreover, Germany provides a combination of different measurers implying a relatively high level of additionality.
Monitoring & Verification: Regular evaluation of the measures in place is integrated in the process of monitoring the implementation of the energy transition. Thus, the “Monitoring Report” (yearly) and the “Progress Report on the energy transition” (every three years) provide updated information.
Flexibility: In terms of regulatory measures and measures affecting prices, relevant stakeholders have no flexibility. But when it comes to investment support and measures to improve energy efficiency through information and advice the level of flexibility is high because of the large offer for different support and information programs even within one sector, i.e. building sector.
For the full Report on the German alternative measures planned click here. [interlink with German part of D2.1.1.]
Country-Context profile
Germany is a founding member of the European Economic Community and the largest econ-omy within the European Union in terms of population size and gross domestic product. Consequently, its notified energy savings target accounts for the largest share of the EU 28 total cumulative savings for 2020.
This coincides with the perception that Germany has a role model function for a successful climate friendly energy policy, especially in the field of energy efficiency and renewable energies. The latter has been verified by “The 2016 International Energy Efficiency Scorecard” conducted by The American Council for an Energy-Efficient Economy. Within the group of the 23 world’s top energy-consuming countries (representing 75% of all the energy consumed and accounting for over 80% of the world’s gross domestic product), Germany ranks first with respect to energy efficiency policies. This result is ascribed to the strategies belonging to the transformation of the energy system, the so-called “German Energiewende” (energy transition).
Hence, the German Federal Government has decided to make use of the possibility set out in Article 7 (9) EED. Instead of implementing an Energy Efficiency Obligation Scheme, Germany has chosen to enhance established measures and launched a comprehensive strategy. In 2014 the National Action Plan on Energy Efficiency (NAPE) was introduced in order to pro-mote energy efficiency and meet the requirements under Article 7 (1) EED. Overall, Germany aims at energy savings (cumulative savings of 1 758 PJ, i.e. 42 Mtoe, until 2020) with a mixture of regulatory measures, investment support, measures affecting prices, and measures to improve energy efficiency through information and advice. Measures affecting prices, provide the largest shares of savings, especially the energy and electricity tax (accounts for almost 30% of total savings until 2020).
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