1. Solar Thermal Certificates Energy Service Companies Supporting the Solar Thermal Market Jan Erik Nielsen, PlanEnergi Project: Solar Thermal Certificates Funded by: Dansk Energi–Nets Energisparepulje Participants: Dansk Solvarme Forening (solar thermal association) TEKNIQ, DS-H&I (installers associations) DONG, NG Midt-Nord, HNG, SydEnergi (ESCOs) PlanEnergi (consultant) Objective: Establish a trading scheme for solar thermal certificates ESCO: E nergy S ervice CO mpany

2. Solar Thermal Certificates Energy Service Companies Supporting the Solar Thermal Market Jan Erik Nielsen, PlanEnergi Original idea: Make certificates for the life time energy savings of solar thermal systems Connect trading of these certificates to the new obligations for ESCOs to save energy Original example: Annual savings of a small solar hot water system: 2 MWh/y Life time: 20 years Life time energy savings: 40 MWh Value*: 50 kr/MWh 2000 kr/system (270 /system) Principle already used for years in Australia: RECs *) Corresponding to prices in the CO 2 emission trading scheme – last year!

3. Solar Thermal Certificates Energy Service Companies Supporting the Solar Thermal Market Jan Erik Nielsen, PlanEnergi Obligations for ESCOs to save energy: Electricity: 1.4 PJ Natural gas: 0.5 PJ Oil: 0.15 PJ All together: 2.05 PJ per year 0.2 % of total national consumption (Installing 40,000 m² - like in 96 - will do half the Oil Obligation)

4. Solar Thermal Certificates Energy Service Companies Supporting the Solar Thermal Market Jan Erik Nielsen, PlanEnergi Approximate values of savings to the ESCOs: Electricity: 350 kr/MWh (47 ) Natural gas (oil) : 150 kr/MWh (20 )* NB: Only first years savings counts: Electricity: 700 kr/system (93 ) Natural gas (oil) : 300 kr/system (40 ) Value too small for creating certificate trading scheme ! *) By the way: Quite cheap energy price – the price of oil/gas is around 440 kr/MWh without any taxes

5. Solar Thermal Certificates Energy Service Companies Supporting the Solar Thermal Market Jan Erik Nielsen, PlanEnergi Value per individual system is rather small … … but still e.g. 40,000 m² corresponding to 6,000 systems represent a significant value: Electricity: 4.2 mill kr (0.56 mill ) Natural gas (oil) : 1.8 mill kr (0.24 mill ) Revise idea/concept

6. Solar Thermal Certificates Energy Service Companies Supporting the Solar Thermal Market Jan Erik Nielsen, PlanEnergi Present idea: Make an agreement between ESCOs and installers that: ESCOs promote solar thermal systems, - promotion to be integrated in their campaigns for renewing old gas/oil boilers and electrical water heaters Solar systems installed by certified* installers will be recorded – and will count in the obliged energy savings *) I will come back to that

7. Solar Thermal Certificates Energy Service Companies Supporting the Solar Thermal Market Jan Erik Nielsen, PlanEnergi Requirements on quality products/systems: Only systems installed by certified installers will count Only systems with certifies products (collectors, tanks, controllers) will count Existing quality assurance schemes can be used

8. Solar Thermal Certificates Energy Service Companies Supporting the Solar Thermal Market Jan Erik Nielsen, PlanEnergi Certified installers: www.kso-ordning.dk

9. Solar Thermal Certificates Energy Service Companies Supporting the Solar Thermal Market Jan Erik Nielsen, PlanEnergi Certified products: www.god-solvarme.dk

10. Solar Thermal Certificates Energy Service Companies Supporting the Solar Thermal Market Jan Erik Nielsen, PlanEnergi Now how to count the savings ? For the start up: Make use of general standard values Later on: Consider use of values depending on the actual performance of the system/component ? (in order to motivate the development and use of high performance products)

11. Solar Thermal Certificates Energy Service Companies Supporting the Solar Thermal Market Jan Erik Nielsen, PlanEnergi Basic heat supply Application Saved thermal energy kWh Saved electricity kWh Thermal / Electrical savings - 4m² system kWh Thermal / Electrical savings – 7 m² system kWh High efficiency o A-marked boiler o District heating o Electrical heating Hot water520*A-30*A2080/-120 Hot water and space heating 390*A-23*A2730/-160 Lower efficiency o Non A-marked boiler Hot water790*A-30*A3160/-120 Hot water and space heating 593*A-23*A4150/-160 Annual performance / savings Standard Values (Danish Energy Authotity)

12. Solar Thermal Certificates Energy Service Companies Supporting the Solar Thermal Market Jan Erik Nielsen, PlanEnergi Specific values Standard values are actually based on the specific values - they are generated as an average of the values for the certified products

13. Solar Thermal Certificates Energy Service Companies Supporting the Solar Thermal Market Jan Erik Nielsen, PlanEnergi Results so far: Certificate trading scheme for individual solar thermal systems is not relevant as long as only first years savings counts Consensus amongst ESCOs, installers associations and solar thermal association on how to calculate energy savings and economy for solar thermal systems – and agreement that the economy looks very good with the present energy prices Campaign concept decided – agreement drafted Use of certified installers and products decided

14. Solar Thermal Certificates Energy Service Companies Supporting the Solar Thermal Market Jan Erik Nielsen, PlanEnergi Perspectives: Project runs another year - we expect soon to see again 40,000 m²/year In 1996 several gas service companies ran campaigns for solar thermal Next year?

15. Solar Thermal Certificates Energy Service Companies Supporting the Solar Thermal Market Jan Erik Nielsen, PlanEnergi Thank you for your attention Contact: jen@planenergi.dk Recommended webs www.planenergi.dk – Consulting engineers – Renewable energy, energy planning, … www.solvarmecenter.dk – Virtual solar thermal know how centre www.altomsolvarme.dk – Solar thermal portal www.dansksolvarmeforening.dk – Danish solar thermal association www.sologbio.dk – Installers section for solar thermal and biomass www.god-solvarme.dk – Certified products www.kso-ordning.dk – Certified installers http://www.sustainability.vic.gov.au - Search: Solar hot water rebate