the flanders (be) regional utility obligations

Bottom-up measurement and verification of energy efficiency improvements: national & regional examples

The Flanders (BE) regional utility obligations

Ann Collys

Ministry of Flanders

Department of Natural Resources and Energy

3 March 2005 - European Parliament


History

• RUE-fund as a recommendation of CCEG

• groups of municipalities paid 0,25 Euro per MWh sold

• voluntary agreements with the Government of Flanders

• problems: – limited control by the Government– no energy saving target– limited evaluation


Legal framework

• Flemish Parliament Act of 17 July 2000 (implementation of the directive)

• Decree of 29 March 2002 (amended by the decision of 26 September 2003) imposes RUE public service obligations on the electricity grid operators


Legal framework

• Primary energy saving target for end users every year

• Low Voltage clients (<= 1000V)– 1% of the electricity supplied for the year 2003– 2% and 2,1% for the years 2004 and 2005– 2,2% for the calendars years 2006 en 2007– 1% as of 2008

• High Voltage clients (> 1000V)– target of 1% each year


Legal Framework

• Target in the years 2004 up to 2007 includes the implementation of the resolution of the Flemish Parliament:– in 2004-2005: every head of the family must

receive a free voucher which can be exchanged for an energy saving light bulb, energy saving shower head or an energy meter

– in 2006-2007: every other member of the family receives a voucher for an energy saving light bulb


Other commitments

• Distribution grid operators must have special attention for: – “protected” clients– municipalities– external organisations


Plan with RUE actions• Each grid operator submits a plan with RUE

actions for the next year each year before 1 June

• Actions must contain: – financial support (e.g. premium)– awareness-raising and information campaigns– proposal for the calculation of the energy

savings


Plan with RUE actions

• department evaluates and (dis)approves the method for the calculation of the energy savings

• Not only actions for electricity savings, but for all kind of fuels

• Primary energy saving= electricity saving *2,5


Examples

Action Premium Saving/year

Energy saving bulb free 168 kWh

Energy saving shower free 1311 kWh

Condensing boiler 125 Euro 7800 kWh

Solar boiler 625 Euro 2410 kWh

Roof insulation 1,25 Euro/m2 158 kWh/m2


Control and evaluation

• grid operator must draw up an evaluation report every year before 1 May on the execution of the actions during the previous year

• administration must present a report to the Flemish regulator (VREG)

• Flemish regulator starts the legal procedure for the collecting of the fines if the targets are not achieved


Financing the RUE actions

• Public Service Obligation: costs are incorporated in de electricity tariffs

• if the target is not achieved: fine amounts tot 10 Euro cent for every kWh of primary energy that is not saved up to the target

• fines are not incorporated in the tariffs


Results 2003

Primary energy savings

381,34

227,78153,57

762,99

426,08

336,92

low voltage high voltage total

GWhp

target savings


Results 2003

Primary Energy Savings

762,99

457,72

305,26

Domestic clients Non-household clients Total

GWhp


Results 2003

costs

11,77

4,94

6,83

low voltage high voltage total

MIO €


Domestic clients

Premiums: 13.629

Amount: 2,86 million Euro

Primary energy

savings: 76,72 GWhp

cost effectiveness: av. 3,7 €cent/kWhp

between 0,5 and 113 €cent/kWhp

excl. actions for protected clients


Protected clients

0,25 €cent/kWhp1,7 €cent/kWhpCost effectiveness

190,368 GWhp38,166 GWhpPrimary Energy Saving

0,5 M€0,7 M€Costs

145.210225.822Premiums

Energy saving showerhead

Light energy saving bulb


Domestic Actions

TOP +6 premiums

TOP +6

energy savingTOP +6 cost effectiveness

Energy saving light bulbs



Energy saving light bulbs

Tube insulation

Condensing boilers Condensing boilers

High eff. boilers High eff. boilers Roof insulation

Super insulating glazing

Roof insulationEnergy saving light

bulbs

Roof insulationSuper insulating

glazingHigh eff. boilers

Energ saving showerhead

Radiator foil


Non-household clients

Premiums: 2.828

Amount: 4,73 million Euro

Primary energy

saving: 457,718 GWhp

Cost effectiveness: av. 1,03 €cent/kWhp between 0,25 en 152 €cent/kWhp


Non-household clients

TOP +5premiums

TOP +5 energysaving

TOP +5 costeffectiveness

Freq. Convertors Freq. Convertors Thorough Audit

Energybookkeeping

Thorough Audit Quick Scan

CondensingTechnology

Relighting Freq. Convertors

Heat Pumps CondensingTechnology

Roof Insulation

Relighting Roof Insulation High eff. motors


RUE plans 2004

• Target: – LV: 316 GWh HV: 235 GWh

• Budget: 30,2 million Euro

• new domestic actions: – ventilation– advice on plan

• new non-domestic actions: – new lighting– insulation measures


RUE plans 2005

• Target: – LS: 351 GWh HS: 228 GWh

• Budget: 25,8 million Euro

• New actions: – home automation– loans free of interest for condensing boilers in

municipalities


Advantages

• Energy saving target is quantitative

• Grid operators are stimulated to take cost effective actions

• Financing of the actions is arranged

• Thorough control and evaluation is possible


Disadvantages

• No uniform actions in Flanders

• Conditions to get the premium differ for the same measure

• Protected clients are hard to reach

• Their is an overlap with other instruments such as benchmarking covenant, tax deduction, ...


Conclusions

• All network managers reached their target in 2003, except one for high voltage

• the target was reached with less budget than planned


Conclusions

• Target for high voltage is harder to achieve, especially for small network managers

• The targets for 2004 will also be achieved

• An evaluation of the RUE public service obligations is planned in 2005

the flanders (be) regional utility obligations

Documents

governmentno energy

energy savingsnot

energy meterin

national regional examplesplan

kind of fuelsprimary

bulb free

electricity grid operators

rue actionseach grid