|Policy status:||In Force|
|Policy Type:||Economic Instruments>Market-based instruments>GHG emissions trading, Regulatory Instruments>Other mandatory requirements, Economic Instruments>Market-based instruments>White certificates, Regulatory Instruments>Obligation schemes|
|Policy Target:||Energy Utilities|
|Agency:||Energy Market Administrator|
|Legal References:||Decree 28th December 2012|
Decrees voted 20 July 2004 require Italian electricity and gas suppliers to help their customers save energy engendered the 2005 White Certificates trading scheme. The two decrees of 20th July 2004 repealed the two decrees of 24th April 2001 about the identification of quantitative national targets for energy savings and development of renewable sources. The targeted energy saving per year is 5 815 GWh.
In compliance with specific energy conservation targets, all Italian electricity and gas distributors with at least 100,000 end customers at the close of 2001 can- as of May 2006 - trade white certificates of certified energy savings. Energy service providers, subsidiaries of electricity and gas distributors and distributors themselves will all sell energy efficiency certificates (white certificates) each representing primary energy savings of one tonne of oil equivalent (toe). Distribution companies must meet specified energy savings targets, either by implementing energy conservation projects that benefit their customers, which will earn them white certificates, or through the purchase of white certificates produced by energy conservation projects undertaken by others.
The White Certificates represent marketable documents issued by the Energy Market Administrator testifying the energy saved by the energy distribution companies - as well as by their controlled partnerships - and by the Energy Service Companies (ESCO). A simplified methodology, by technical cards, is used to determine the quantification of primary energy savings. Savings achieved under the scheme must be additional to measures that would be normally implemented, including those implemented to meet new legal requirements. Reference conditions are thus continuously updated to account for regulatory and market changes. The White Certificates can be exchanged by means of bilateral contracts, or in the frame of a specific market ruled by GME.
Three types of white certificates can be produced and traded. Type I certificates are for savings achieved in the electricity sector, Type II certificates for those achieved in the gas sector, and Type III for those in neither sector (from other fuels).
In December 2007, new legislative and regulatory changes were introduced. Targets for 2008 and 2009 were made more stringent and new targets introduced for 2010-2012; the implementation period was extended from 2009 to 2012; the scheme was extended to distributors with 50 000 customers or more, and a wider range of companies allowed to participate in the scheme (companies with appointed energy managers). In addition, a previous rule obliging electricity distributors to achieve 50% of their savings in the electricity sector, and vice versa for gas distributors, was abolished. Distribution operators can pass the costs incurred by the scheme on to customers, within limits imposed by the Regulatory Authority. For 2009 the tariff limit imposed is EUR 88.92 per toe. In 2009 a new decree (DL 02/2009) was issued confirming the schemes extension till 2012. In addition, it allows the programme to automatically renew for three additional years in 2012 unless steps are taken by parliament. The Ministry of Environment said in January 2009 that the programme had prevented approximately 2 million tonnes of carbon dioxide emissions. The Decree 28th December 2012 set new targets for the period 2013-2016. The cumulative amount of primary energy savings are: 4.6 Mtoe at 2013; 6.2 Mtoe at 2014; 6.6 Mtoe at 2015; 7.6 Mtoe at 2016. A relevant change introduced by the aforementioned Decree is represented by the so-called "large projects ", that is to say energy efficiency projects concerning relevant infrastructures, industrial processes, or linked to interventions in the transport sector, which generate, in a year, savings of no less than 35,000 toe and which have a technical life exceeding 20 years.
|This record supersedes:||Energy Utilities (Gas and Electricity) Obligation to Increase End Use Efficiency|
Last modified: Fri, 03 Nov 2017 18:09:11 CET