1. REMODECE Project: WP6 Summary findings from market review questionnaires Markogiannakis George Centre for Renewable Energy Sources Department for Energy Policy Analysis CRES ΚΑΠΕ 5 th REMODECE project meeting Milan, March 6-7, 2008

2. REMODECE – WP6 Legislation CRES ΚΑΠΕ Directives 1.Energy Labeling of Domestic Appliances 92/75/EEC General framework for energy labelling of domestic appliances many directives for every type of appliance (refrigerators, washing machines, air-conditioners, ovens etc) 2. Minimum efficiency requirements 200/55/EC, 96/57/EC, 92/42/EC 3. Eco Design 2005/32/EC 4. Energy Star Programme - Office equipment 5. Energy services 2006/32/EC on energy end-use efficiency and energy services

3. REMODECE – WP6 General review of the markets of 12 European Countries : All the European Union countries have transposed the energy labeling directive into national legislation High degree of regulatory measures as regards energy efficiency satisfied However not all of them report to be satisfied on its reaching the target. Depending on their level of awareness, other countries (FR, PO, BG) seem still concerned with the customers focusing on the retail prices rather than energy classes while others (DE, CZ) report an increase in total sales of energy efficient appliances. Legislation CRES ΚΑΠΕ

4. REMODECE – WP6 CRES ΚΑΠΕ Fiscal Instruments (1/4) The use of fiscal instruments is limited across Europe. no In some countries there is no application of any fiscal measures whatsoever (RO, FR, BG, NO) directly aiming households. tax incentives However, there are countries where tax incentives are in place for specific energy efficient appliances. These comprise: the Eco tax on lamps (incandescent bulbs): Its an environmental disposal tax applied to several appliances and incandescent lamps., applied in Portugal and Belgium. Italian Finance Act of 2007 Allows for Replacement of refrigerators, freezers and combinations thereof by similar appliances of energy class not inferior to A+ Gross tax deduction equal to 20% of the amounts remaining payable by the taxpayer, up to a maximum deduction of 200 per appliance, in a single installment.

5. REMODECE – WP6 CRES ΚΑΠΕ Fiscal Instruments (2/4) Tax incentives Tax incentives that dont directly aim to energy efficient appliances. German eco-tax reform: increasing the electricity price. Greek Ministerial Decision 2006, concerning among other incentives and escalation of electricity prices, the lower electricity prices for the consumers in the residential sector, who will manage to reduce their electricity consumption. Denmark has a taxation on lighting sources added to the sales price, which is however not benefiting the energy efficient fluorescent tubes and metalhalide lamps

6. REMODECE – WP6 CRES ΚΑΠΕ Fiscal Instruments (3/4) Rebates/ subsidies In the Brussels Region there is a rebate (not fiscal but direct subsidy paid after the sale) for energy-efficient appliances : A+ and A++ class efficiency freezers and refrigerators (100 and 150 resp.), A/A/A washing machines (100 ), A tumble dryers (100 ) and gas tumble dryers (400 ). (CZ) E.ON, Pražská energetika Group) in the country presently offers to its residential customers price reductions for energy efficient appliances (e.g. electric water heaters, white goods), if purchased at associated dealers. In Flanders the utilities give a rebate (subsidy) of 250 for gas tumble dryers and for domotica (100 ). In Portugal, a discount of 35 is given to those buying Energy Efficient Refrigerators (A+ and A++ ). In Germany, there have only been a few smaller subsidy programs for the purchase of efficient white appliances and household lamps initiated by some electricity utilities.

7. Fiscal Instruments (4/4) REMODECE – WP6 CRES ΚΑΠΕ Rebates and subsidies seem to have a low effectiveness. In fact, in Belgium appropriate financial incentives such as rebates seem to be justified only for low-income families. In countries though where the price factor is very important for the purchase of energy efficient appliances, it can have a positive impact on the market.

8. Supportive Instruments REMODECE – WP6 CRES ΚΑΠΕ Information campaigns have long gone hand in hand with the regulatory measures in all the consortium countries. All of the countries have implemented campaigns in order to inform consumers of the benefits of energy efficient white appliances, but there is a limited number of campaigns (DE. DK), concerning stand-by mode of equipment. Training schemes of retailers have been also used in some countries (FR, GR) as it has been noticed that the mandatory energy labeling of appliances often is not well promoted as a result of inadequate information provided to the salespeople. It is, however, very difficult to assess the single impact of information campaigns on electricity savings and to separate it from legislative measures as the mandatory labelling and minimum efficiency standards. Nevertheless, there is no doubt that especially information programs are important accompanying measures which cannot be fully substituted by legislative measures. With regard to measures aiming at the using behaviour of consumers, the highest degree of uncertainty lies in the durability of this kind of measures.

9. Problems Identified (1/3) REMODECE – WP6 CRES ΚΑΠΕ Pricing of electricity differentiation The markets overview has highlighted a wide differentiation between the countries of the consortium, as regards as electricity tariffs for households. The price of electricity is low enough (BG, NO) it has a very solid impact on consumption. In other countries pricing of electricity is already high due to monopoly conditions of the electricity sector that does not allow any raise to the environmental tax.

10. REMODECE – WP6 CRES ΚΑΠΕ Problems Identified (2/3) Taxation Many countries rely on taxation on electricity that however has adverse effects on electricity consumption. A good example comes from Denmark where for domestic customers taxes on electricity consumption are very high (all taxes plus VAT together constitute more than half of the domestic electricity price). Anyhow, only a small part of the taxes are used to promote and support electricity savings. As a result, those, who use electricity just for basic purposes, may have as much as two times higher unit price of energy supplied/consumed than those who use it also for production of heat for the same amount of electricity consumed. !! Such a practice motivates households to use electricity in higher volumes than would be otherwise necessary.

11. REMODECE – WP6 CRES ΚΑΠΕ Problems Identified (3/3) Taxation - Lack of information / environmental awareness (IT, FR, BG) In Bulgaria more significantly, there is no effective procedure for verification of the compliance with the ordinance of labelling moreover they assume that there is practice of false labels. This includes misrepresentation of information, false and misleading information, etc - Lack of high efficiency appliances in the market. A++ refrigerators, washing machines and dishwashers are not easily available in the market (PO, GR).

12. Initial Recommendations (1/2) Need for tax reduction in energy efficient equipment –Tax reduction : VAT on installing energy efficient measures reduced (PO, GR) Amending electricity prices (CZ, NO, PO) with a view to reward energy savings –Introduction of smart metering technology REMODECE – WP6 CRES ΚΑΠΕ

13. Initial Recommendations (2/2) Need for training/ awareness raising –Training programs for retailers giving them also sales arguments (BG, IT, RO) –Awareness raising (BG) –Use of ESD to help residential customers realize energy savings and their monitoring and verification via the system of white certificates (CZ) Need for Financial incentives –possible financial and/or non financial incentives for end users or development of a programme for early replacement of more than 10 years old appliances (BG) –planned in DE for new, highly efficient electrical household appliances REMODECE – WP6 CRES ΚΑΠΕ

14. Highlights (1/2) REMODECE – WP6 CRES ΚΑΠΕ Personalised advisory services (DK, CZ, DE) Combined introduction of the mandatory EU energy label and a rebate + information campaign by the utilities in the Flanders region for class A appliances in the period 1997-1999(BE) Specified national action plans for an appliance and equipment energy labelling program, by informing and involving market parties, especially manufacturers / importers, retailers and consumers (BG) State Investment programme that subsidised 20% in heat pumps (NO)

15. REMODECE – WP6 CRES ΚΑΠΕ Highlights (2/2) Exemplar case study: raising awareness Energy efficiency initiative (Initiative EnergieEffizienz) of the German Energy Agency with a target on All electrical household appliances with a special focus on brown goods and office equipment (on-mode and standby mode), lighting and white appliances. Exemplar case study: providing financial incentives Italian case Replacing refrigerators, freezers and combinations thereof by similar appliances of energy class not inferior to A+, 1210 GWh of savings until 2010.

16. Next Steps REMODECE – WP6 CRES ΚΑΠΕ Key stakeholders such as manufacturers/wholesalers, utility companies, will be contacted and involved in order to analyse all relevant issues and to examine their willingness and motives to have a more active involvement towards energy efficiency (technology procurement, voluntary agreements, etc). Furthermore, their opinion on key issues, barriers, opportunities, etc, will be recorded and utilised. Public administration will be called in round tables or will be interviewed in order to express their priorities and opinions.

17. REMODECE – WP6 CRES ΚΑΠΕ Suggested report structure Project context: Energy Trends in the household sector EU relevant policies and legislation Findings from monitoring consumption Market review of partner countries (National legislation) Summary of instruments used in partner countries Highlights from partner countries Specific policy recommendations per type of equipment Annexes: Templates 6.1& 6.2

18. Thank you for your attention Centre for Renewable Energy Sources 19th km Marathonos Ave, Athens HELLAS CRES ΚΑΠΕ 5 th REMODECE project meeting Milan, March 6-7, 2008