The Italian white certificates scheme (WhC) has been in place for nine years and a lot of experience has been gathered. More than this, it has become an effective mechanism, mostly based on measured energy savings, to promote and implement energy efficiency in industry. The scheme is based on an energy efficiency obligation, imposed on electricity and gas distributors, and on a tradable market for certificates, thus acting as an incentive for medium and large end-users and energy service companies (the voluntary parties). The proposed paper shows in detail the shift of the scheme from the civil sector to the industrial one and from deemed savings projects to monitoring plan projects. Also the transformation of some energy service providers in ESCO has worthy to be noticed. The paper is based on an extensive research carried on from FIRE on monitoring plans commissioned by ENEA, showing what kind of interventions have been implemented, how they performed compared to the expected savings, and what kind of advice can be given to other countries that are considering the introduction of an energy efficiency obligation (EEO) scheme according to the 2012/27/EU directive.

1. www.fire-italia.orgWhite certificates in Italy: the shift toward industry
Dario Di Santo, FIRE
ECEEE industrial summer study
June 4 2014, Arnhem
The

2. rules

3. and

4. the

5. market

6.
do

7. change...

8.
If

9. you

10. don’t

11. want

12. to

13.
grope

14. in

15. the

16. dark...
You

17. need

18.
FIRE!

19. www.fire-italia.org
2
The Italian Federation for the Rational use of Energy is a no-profit association founded in
1987 that promotes energy efficiency, supporting energy manager, ESCOs and other
companies dealing with energy.
!
Besides the activities directed to its nearly 450 members, FIRE operates under an
implementing agreement with the Ministry of Economic Development to manage the Italian
energy manager network since 1992.
!
In order to promote energy efficiency FIRE cooperates and deals with public authorities,
energy technology and service companies, consultants, medium and large consumers,
universities and associations to promote best practices and improve the legislation.
!
!
Some of FIRE members: ABB S.p.A. - Acea S.p.A. - API - AXPO S.p.A. - Banca d'Italia - Banca Popolare di Sondrio -
Beghelli S.p.A. - Bticino S.p.A. - Finlombarda S.p.A. - C.G.T. S.p.A. - Citroën Italia S.p.A. - Comune di Aosta - Comune di
Padova - Comune di Savona - Comune di Venezia - Cofely S.p.A. - CONI Servizi S.p.A. - CONSIP S.p.A. - Egidio Galbani
S.p.a. - ENEL Distribuzione S.p.A. - ENI S.p.A. - Ferrero S.p.A. - Fiat Group Automobiles - Fiera Milano S.p.A.- FINCO -
FIPER - GSE S.p.A. - Guerrato S.p.A. - Heinz Italia S.p.A. - Hera S.p.A. - Intesa Sanpaolo S.p.A. - ISPRA - Italgas S.p.A. -
Lidl Italia s.r.l. - Mediamarket S.p.A. - Nestlè Italiana S.p.A. - Newco Energia S.p.A. - Osram S.p.A. - Pirelli Industrie
Pneumatici S.p.A. - Politecnico di Torino - Provincia di Cremona - Provincia di Firenze- RAI S.p.A. - Raffineria di Ancona
S.p.A.- Regione Autonoma Friuli Venezia Giulia - SAGAT S.p.A. - Schneider Electric S.p.A. - Siemens S.p.A. - Siram
S.p.A. - Sorgenia S.p.A. - STMicroelectronics S.p.A. - Telecom Italia S.p.A. - Trenitalia S.p.A. - Turboden S.p.A. -
Università Cattolica del Sacro Cuore - Università Campus Bio-Medico di Roma - Università Cattolica Sacro Cuore-Sede
Roma - Università degli studi di Genova - Università degli studi di Roma Tor Vergata - Università di Pisa - Università degli
Studi di Salerno - Vodafone Omnitel N.V. - Wind Telecomunicazioni S.p.A.
FIRE

20. www.fire-italia.org
FIRE activities and projects
3
www.hreii.eu/demo
www.esd-ca.eu
Among completed projects:
- www.soltec-project.eu
- www.enforce-een.eu
- www.ener-supply.eu
- www.e-quem.enea.it
- www.eu-greenlight.org
- Eurocontract
Whaves
Heat recovery in
industry
!
!
EEO and other
policy measures
SME energy
check-up
Energy audits in
SME
EGE certification
Energy Management Experts
UNI CEI 11339
www.secem.eu
FIRE implements information and dissemination campaigns,
surveys, market analysis and studies. It also organizes working
group and observatories and training activities.
FIRE also certificates EGE (Energy Management Experts)
through its body SECEM.

21. www.fire-italia.org
WhC and 20-20-20 Programme
In the notification about the application of art. 7 of directive EED white
certificates are designed as the main scheme, covering about 62% of 26 Mtoe
of cumulative savings target as final consumption.
4
!!!!!
!5!!
!10!!
!15!!
!20!!
!25!!
2005! 2006! 2007! 2008! 2009! 2010! 2011! 2012! 2013! 2014! 2015! 2016! 2017! 2018! 2019! 2020!
Na#onal'energy'efficiency'targets'and'WhC'targets''
(Mtoe'of'primary'energy)'
Na/onal!targets! WhC!targets!
Source:!FIRE.!
Na#onal'energy'strategy'target'
2006/32/EC'direc#ve'target'

22. www.fire-italia.org
The scheme basics
5
Demand
WhC is an EEO
DSOs have to
meet energy
saving targets
Certificates can be
traded on the market
Voluntary parties
(ESPs and companies
with energy manager
or EnMS) can also
obtain certificates
Supply
WhC is an incentive
1
WhC
=
1
addi*onal
toe
All
sectors
and
all
EE
projects
are
allowed

23. www.fire-italia.org
Tau coefficient
0
50
100
150
200
250
300
350
400
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
How$the$tau$coefficient$works$
Hipothesis:$annual$saving$100$toe,$tau=3,36$
WhCwithtau
WhCnotau
Fonte:FIRE
WhC lifespan
Technology lifespan
2% annual discount
6

24. www.fire-italia.org
Saving evaluation methods
7
Deemed savings projects (progetti standard): the saving is evaluated
with respect to the number of installed reference units (e.g. square
meter, kW, number of installed units). No measures are required. Only
standardized solutions can be included in a deemed saving file. The
proponent presents an RVC once.
Simplified monitoring projects (progetti analitici): the saving is
evaluated with respect to some measured quantities through a
dedicated algorithm defined in a dedicated file. Required meters are
also indicated in the dedicated file. The proponent presents an RVC at
least once a year.
Monitoring plan projects (progetti a consuntivo): the method is similar
to the previous one, but the algorithm, the baseline, the additional
saving coefficient, and the needed meters should be preliminarily
proposed by the applicant PPPM and approved from GSE (with
ENEA-RSE). After the PPPM is accepted the proponent will get WhC
by presenting an RVC at least once a year.
Saving evaluation method
Deemed savings
!
Engineering estimates
!
Monitoring plan
PPPM
D.S. file
E.E. file
RVC: Request to verify and certify the savings
PPPM: Project proposal and MV procedure
Monitoring
plans
2005-­‐2007:
≈10%
2013:
82%

25. www.fire-italia.org
Breakdown of WhC issued in 2013
48%$
22%$
8%$
5%$
5%$
5%$
2%$
5%$
Breakdown*of*WhC*issued*in*2013*
IND*T$Heat$genera3on$and$recovery$for$industrial$
processes$
IND*FF$Other$industrial$energy$efficiency$solu3ons$
CIV*T$Hea3ng$,$air$condi3oning$and$DHW$
produc3on$for$agricolture$and$civil$sector$
IND*E$Drive$systems$(engines,$inverters,$etc.),$
automa3on$and$power$factor$correc3on$
IND*GEN$Electricity$genera3on$and$recovery$for$
industrial$processes$
CIV*FC$Building$envelope$
IPRIV*RET$Ligh3ng$for$exis3ng$private$end*users$
buildings$
Other$
Source:$FIRE$on$GSE$data.$
Industrial
projects
in
2013:
80%
8

26. www.fire-italia.org
Some infographics
72%
WhC
coming
from
ESP
25%
WhC
coming
from
companies
with
energy
manager
Target
2013-­‐2016:
from
5.5
to
9.5
Mln
WhC
82%
WhC
from
monitoring
plans
in
2013
6.7
Mln
of
WhC
issued
in
2013
50%
natural
gas
savings
25%
electricity
25%
other
fuels
Weighted
average
price
on
market
30
45
60
75
90
105
120
2005 2007 2009 2011 2013
26.7
Mln
WhC
issued
from
the
start
to
April
2014
tau
from
1
to
4.58
Industrial
projects
were
80%
in
2013
Source: FIRE.
63
obliged
DSOs
508
companies
presented
projects
in
2013
9
Industrial
projects
in
2013:
80%

27. www.fire-italia.org
without the involvement of an ESCO or a DSO. There are nevertheless EMs that presented directly
the project, but asked for the support of an ESCO or consultant to prepare it. This confirms the
complexity of the PPPM procedure and the need of information and training activities aimed at
facilitating the preparation of a proposal.
Figure 9. Sector and technology breakdown in terms of presented PPPMs.
The sector breakdown shows a wide application, with all the energy intensive sectors
represented. Petrochemical, building materials and agro-food are characterised by larger project
sizes. The technology breakdown shows an homogeneous situation, with most of the available
solutions presented. Energy efficiency involving heat consumption tends to have a larger project
size, as it can be expected.
STEEL%
METALLURGICAL%
PETROCHEMICAL%
PHARMACEUTICAL%
CHEMISTRY%
BUILDING%MATERIALS%
AGRO4FOOD%
ENERGY%/%SERVICES%/%
WASTE%TREATMENT%
RESIDENTIAL%
COMMERCIAL%
GLASS%
PAPER%AND%PRINTING% ICT%
AUTOMOTIVE%
MECHANICS%WOOD%
TEXTILE%AND%
TANNING%
Sector'breakdown'for'number'of'PPPMs'
Source:%FIRE.%
Energy%efficiency%
heat%
19%%
Energy%efficiency%
electricity%
28%%
%
Heat%recovery%
15%%
%
CogeneraRon%
17%%
Use%of%biomass%
6%%
Solvent%treatment%
1%%
Civil%sector%
technologies%
14%%
PPPM'technology'breakdown''
Source:%FIRE.%
Monitoring plans: the main results from 2005 to 2013
FIRE conducted on behalf of ENEA a deep analysis of the PPPMs presented from the
beginning of the WhC scheme till July 2012 (Tomassetti et al. 2013). The reasons behind the study
were the lack of information about PPPMs, mainly due to the structure of the proposals database
(DB). The DB in fact was not structured in order to make an automatic analysis of PPPMs feasible.
To help evaluating PPPMs GSE is presently working on a improvement of the DB, but the process
will require some time. Thus, in order to obtain more information about the PPPMs projects ENEA
commissioned a first survey to cover PPPMs presented between 2005 and July 2012.
Due to the poor structure of the PPPM database, FIRE had to create a new excel database in
order to breakdown the information included in the DB and be able to confront and analyse the
content. The results, which are not easy to summarise, are available in (Tomassetti et al. 2013). Here
a synthesis is provided.
Proponents Number of
presented PPPMs
Total expected
savings (ktoe)
Average project
size (toe)
ESCOs and consultants 524 924 1,700
EMs 47 396 8,000
DSOs 36 30 800
Total 607 1,350 2,225
Table 1. Breakdown of presented PPPMs (2005-2012) by proponent.
Table 1 shows that ESCOs play the main role in presenting PPPMs, with an 86% quota.10
FIRE analysis on 2005-2012 PPPMs commissioned by ENEA

28. www.fire-italia.org
FIRE analysis on 2005-2012 PPPMs commissioned by ENEA
Figure 11. The ten larger projects presented from 2005 to 2012.
87#
28#
25#
24#
23#
22#
22#
20#
18#
0# 5# 10# 15# 20# 25# 30# 35# 40# 45# 50# 55# 60# 65# 70# 75# 80# 85# 90# 95# 100#
blast#furnace#(steel)#
hot#rolling#(steel)#
annealing#furnace#(steel)#
regenera=ve#burners#(steel)##
oxygen#produc=on#onCsite#(steel)##
gas#cogenera=on#for#district#hea=ng#(energy#
produc=on)#
CCCG#(petrolchemical)#
CCCG#(rubber#and#plas=c)#
heat#recovery#for#electricity#produc=on#(chemical)#
heat#recovery#(petrolchemical)#
Savings([ktoe/year](
Larger(projects([ktoe/year](
Source:#FIRE.#
C#200#
11

29. www.fire-italia.org
Case 1: e.g. building
materials,
manufacturing industry
Case 2: e.g. furnace
glass, membranes,
RDF
Case 3: e.g.
lighting, heating,
cooling
Expected
Effective
Expected
Effective
Effective
Expected
FIRE analysis on 2005-2012 PPPMs commissioned by ENEA
Savings correlated with the market
Savings correlated with the solution learning curve
Constant saving (weather related)
12
Difference
between
PPPM
and
RVC
savings:
1.4%
electricity,
-­‐8.3%
gas,
16.6%
fuels

30. www.fire-italia.org
FIRE analysis on 2005-2012 PPPMs commissioned by ENEA
13
Figure 7. EIWhC for the 47 PPPMs that report the investment costs.
Figure 8. EIWhC for the most indicative sectors, with at least 20% of PPPMs with the CAPEX indicated.
9
Companies with energy manager were admitted only at the end of 2007.
10
Were it easy to present a PPPM, the role of EMs would have been the prominent one, whereas ESPs represent around
70% of the market even nowadays.
00%
1 2 3 4 5 6 7 8 91011121314151617181920212223242526272829303132333435363738394041424344454647
WhCearnings/capex Average toe
0%#
5%#
10%#
15%#
20%#
25%#
30%#
Cement#
Steel#
Electronics#
Glass#
Average'WhC'earnings'/'CAPEX'ra2o'
(sectors'for'which'CAPEX'is'reported'at'least'in'20%'of'PPPMs)'
the Italian scheme, a result that was expected when the scheme was designed, but that
not as a consequence of having initially limited the presentation of WhC project to e
providers9
, but of having an interesting economic return coupled with the comp
PPPMs10
.
Figure 7. EIWhC for the 47 PPPMs that report the investment costs.
0
50.000
100.000
150.000
200.000
250.000
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
1 2 3 4 5 6 7 8 91011121314151617181920212223242526272829303132333435363738394041424344454647
WhC$earnings$/$capex$
WhC$cash$flow$are$discounted$at$5%$on$the$5$year$incen9ve$lifespan$
WhCearnings/capex Average toe
Data,
being
faculta*ve,
are
not
reliable
and
currently
an
inves*ga*on
is
being
done
on
this
issue.

31. www.fire-italia.org
Market: price trends
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
07/03/2006
16/05/2006
25/07/2006
24/10/2006
16/01/2007
27/03/2007
05/06/2007
28/08/2007
06/11/2007
29/01/2008
08/04/2008
17/06/2008
09/09/2008
18/11/2008
17/02/2009
28/04/2009
01/07/2009
22/09/2009
01/12/2009
02/03/2010
11/05/2010
20/07/2010
19/10/2010
11/01/2011
22/03/2011
31/05/2011
30/08/2011
15/11/2011
07/02/2012
17/04/2012
31/05/2012
07/08/2012
06/11/2012
05/02/2013
16/04/2013
25/06/2013
17/09/2013
03/12/2013
04/03/2014
13/05/2014
WhC'sprice(Euro)
Marketsessiondata
WhCpricetrend
May31stsession DSO'sreimbursement TypeIII TypeII TypeI
Source:FIREevaluaIonbasedonAEEGandGMEdata
WhC oversupply
WhC shortage
The final value of the tariff reimbursement for DSOs in 2013 should be around 106
euro/toe. It will be communicated shortly by the Electricity and Gas Authority.
14

32. www.fire-italia.org
Market: issued certificates VS targets
!40%%
!20%%
0%%
20%%
40%%
60%%
80%%
100%%
!4.000%%
!2.000%%
%!%%%%
%2.000%%
%4.000%%
%6.000%%
%8.000%%
%10.000%%
2005% 2006% 2007% 2008% 2009% 2010% 2011% 2012% 2013*% 2014% 2015% 2016%
%
ktoe
ItalianWhCtargetsandresults
(dataupdatedto30April2014)
Primary%energy%saving%targets%(ktoe)% EsAmated%available%WhC%based%on%projects%presented%in%the%previous%years%
Issued%WhC%from%June%1st%to%May%31st%(ktoe)% Eccess%%or%missing%WhC%(ktoe)%
(issuedWhC!targetWhC)/targetWhC%(%)%
Source:%FIRE%based%on%AEEG%and%GME%data%
*%Provisional%data.%
Challenges:
Since 2014 only new projects can be presented (the PPPM shall be presented before the
the energy efficiency action comes into operation).
In 2016 the sum of the increasing target and of the end of the previous WhC lifecycle will
sum up to almost 4 Mtoe.
≈1
Mln
WhC
s*ll
“missing”
from
2010
15

33. www.fire-italia.org
The start up has been difficult, but by continuously improving it…
It works!
The most important lesson learnt is that such a scheme can not born
perfect, but it needs continuos care and also some imperfections
should be accepted during transitions.
16
Conclusions:
by
dealing
with
complex
proposals
ESPs
learn
much
about
industrial
processes
and
they
can
replicate
best
prac*ces;
knowledge
and
money
allow
some
ESP
to
become
a
real
ESCO
with
EPC
and
TPF
for
industrial
process
projects;
effec*ve
promo*on
of
EE
projects
in
industry;
limited
mechanism
cost
(433
euro/5x2.5
toe=35
euro/toe).

34. www.fire-italia.org
The IEE Enspol project
The IEE ENSPOL project’s main aim is to support member states who
intend to set up new EEO schemes or implement alternative measures, as
well as inform about the on-going development of existing schemes, and
support member states with an existing EEO scheme to improve it, learning
from and building on existing experiences.
The specific objectives of ENSPOL are to:
Assess the relative strengths and weaknesses of EEOs and alternative
measures based on the existing experiences and plans of member states
and make recommendations for the most appropriate approaches against
different criteria and under different conditions.
Improve the knowledge and capabilities of member states (both within
and outside of the project) with regards to the different options available
for implementation of Article 7 (EEOs and alternative measures).
Ensure the effective engagement of the broad range of stakeholders with
an interest in the implementation of Article 7 and promote a wide
consultation at European level.
4.Complement and enhance the work of existing EU and member states
initiatives concerned with the implementation of Article 7 EED.
The Enspol project has just started up and will go on till 2016.
17
Partners:
JIN
(NL)
ABEA
(BG)
ADEME
(FR)
AEA
(AT)
CRES
(GR)
DEA
(DK)
EST
(UK)
FIRE
(IT)
KAPE
(PL)
OUCE
(UK)
SEI
(UK)
UPRC
(GR)
VITO
(BE)
Informal session at 15.15 about cost-effectiveness indicators for EEOs and other
policies.
Contract
N°:
IEE/13/824/SI2.675067

35. www.fire-italia.org
Contacts and social
18
www.linkedin.com/company/fire-federazione-italiana-per-l'uso-razionale-dell'energia
www.facebook.com/FIREenergy.manager
www.dariodisanto.com
Blog Social
For

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