Hot Topics | Energy Efficiency Directive Article 7 | Energy Efficiency Directive | ENSPOL | Energy Saving Policies and Energy Efficiency Obligation Schemes |

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Additionality & Materiality

The general understanding is that: 1) Materiality means involvement in the action 2) Additionality is actions that are seen as the capability of the system to promote a change. Both terms are crucial for the determination of the baseline when calculating savings from energy efficiency measures, however for both, the understanding of them and the concrete implementation is quite different among Member States (MS)

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Double Counting

In order for Member States (MS) to meet the requirements of the Energy Efficiency Directive (EED), energy companies need to achieve yearly energy savings of 1.5% of annual sales to final consumers. This can be done by obligated parties carrying out measures to help final consumers improve energy efficiency. As an alternative, or in addition, MS have the option to take other policy measures to achieve energy savings among final consumers.

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Free-rider phenomenon

Definition - “parties that would implement efficiency measures even in the absence of the scheme and take direct advantage of it”. Any EEO shall be equipped with a reliable system of measuring energy savings, and only savings of good quality shall be eligible. This ensures the environmental integrity of the EEO scheme. Ideally an EEO should take into consideration factors such as free riders and spill-over effects.

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Methods for calculating energy savings

It is important that the methodology for Article 7 takes into account: 1) The quantity of energy saving that can be attributed to each action 2) How the lifetime of energy efficiency improvements are accounted for. There are four methods for calculating the savings for different types of actions, these are: a) Deemed savings, b) Metering savings , c) Scaled savings, d) Surveyed savings

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Lifetime of savings

In accounting for the lifetime of energy efficiency improvements, MS are able to attribute the real saving that each action will achieve between the year of its implementation and 2020. This ‘straightforward’ method calculates the savings for each year the action is carried out, until 2020. If the action is only carried out for one year then the saving calculation is only of that one year.

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Measurement and verification

Policy measures need to be designed to achieve end-use energy savings which are among final customers. The definition in EED excludes policy measures that are primarily intended to support policy objectives other than energy efficiency or energy services as well as policies that trigger endues savings that are not achieved among final consumers.

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Cost effectiveness of measures

Cost-effectiveness analysis of measures compares the relative costs and outcomes of an action, it is used as a tool for MS deciding which measures to implement. The costs for achieving the energy saving measures include.

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Social Issues

Member States (MS) are encouraged to include requirements in their national scheme that pursue a social aim, in particular to ensure that vulnerable customers have access to the benefits of higher energy efficiency. MS are encouraged to include requirements with a social aim in the saving obligations they impose fostering a share of energy efficiency measures to be implemented as a priority in households affected by energy poverty.

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Trading with certificates

In principle certificates can then be traded between obligated and voluntary parties through bilateral contracts or on a dedicated platform for the spot market. By including trading, the EEO can become an incentive for the voluntary parties to implement and report energy efficiency measures.

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