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Sweden's Fourth National Energy Efficiency Action Plan

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Sweden's Fourth National Energy Efficiency Action Plan M2014/01235/R M2014/02786/R Sweden's Fourth National Energy Efficiency Action Plan Summary This Fourth National Energy Efficiency Action Plan is a follow-up to the third action plan from 2014. The calculations in accordance with the reporting requirements set out in the Energy Services Directive (2006/32/EC) show that Sweden meets the target of an increase in energy efficiency corresponding to 9 per cent by 2016 by a very comfortable margin. This action plan shows that the target has been met by 157 per cent, which is slightly more than in the previous action plan. Data and calculation methods for these calculations are presented both in the body of the text and in separate annexes. However, the results of this and previous action plans are not fully comparable because, inter alia, some statistical methods have been changed over the years. From the detailed description of measures in the context of the individual Articles of the Energy Efficiency Directive (2012/27/EU), it is clear that the requirements of the Directive have been met in all essential respects. This action plan also describes a number of other Swedish energy efficiency instruments that did not come about as a result of the Energy Efficiency Directive or any other Directive at EU level. This action plan thus helps create a comprehensive view of the energy efficiency work being carried out in Sweden. Particular attention has been paid to compliance with Article 7 of the Energy Efficiency Directive. Instead of introducing so-called "white certificates", Sweden instead chose to calculate the total effect of all instruments by estimating the impact of the difference between the EU's minimum level of tax in respect of energy and value added tax and the higher Swedish taxes on energy and carbon dioxide, as well as the differences between the EU's minimum levels of value added tax and the higher Swedish value added tax on energy. In the detailed calculations presented in this action plan, the model that Sweden reported to the European Commission in December 2013 has been simplified somewhat for the sake of transparency and has undergone certain other changes. The procedure for this is described in the body of the text as well as in Annex 3. The calculations show that Sweden will achieve energy efficiency improvements of 111 TWh (cumulative) as opposed to the target of 106 TWh (cumulative) by 2020. Contents 1 Introduction 5 1.1 Background 5 1.2 Method 6 2 Energy efficiency targets 7 2.1 National energy efficiency targets 7 2.2 Other energy efficiency targets 10 3 Results of calculations 11 3.1 Savings in end-use energy according to the Energy Statistics 11 3.2 Savings in primary energy 18 3.3 Comparison with previous National Energy Efficiency Action Plans 18 4 Instruments for implementing the Energy Efficiency Directive 21 4.1 Horizontal instruments 21 4.2 Instruments for improving energy efficiency in buildings and non-residential 37 premises 4.3 Instruments in the public sector 43 4.4 Other instruments for improving energy efficiency, including in industry and 47 transport 4.5 Instruments for efficient heating and cooling 55 4.6 Instruments in transformation, transmission and distribution of energy 58 5 List of sources 60 Appendix 1 Supporting data for calculations 63 Housing and services 63 The service sector 67 Industry 70 Transport 71 Appendix 2 Calculation methods 77 Housing and services 77 Industry 78 Transport 78 Appendix 3 Methodology for calculating the effects of the energy and carbon taxes 80 within the framework of Article 7 Annex 4 Annex XIV of the Energy Efficiency Directive 83 Annex 5 The second national strategy for renovations to increase energy-efficiency 85 1 Introduction 1.1 Background Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency (henceforth referred to as the "Energy Efficiency Directive" and abbreviated to "EED") was implemented in Sweden in 2014. This Directive largely replaces Directive 2006/32/EC of the European Parliament and of the Council of 5 April 2006 on energy end-use efficiency and energy services (hereinafter referred to as the "Energy Services Directive" and abbreviated to "ESD"). In accordance with Article 24(2), each Member State must submit a National Energy Efficiency Action Plan1 in April 2014 and every three years thereafter. This action plan will include substantial measures to improve energy efficiency and expected and/or achieved energy savings, including the transformation, transmission and distribution sectors, as well as end-use in order to meet the national energy efficiency targets established under Article 3(1) EED. The action plan will also include estimated total use of primary energy by 2020 as well as the level of use of primary energy in the industrial, transport, household and services sectors. This action plan also presents in detail the development of the effects of energy and carbon taxes on energy efficiency. This is because Sweden complies with the requirements of Article 7 EED through calculations of the effects of the taxes. Sweden's first preliminary national action plan2 was submitted to the European Commission in March 2008. In that plan, the energy savings targets were calculated as 23.3 TWh for 2010 and 32.2 TWh for 2016. It was considered that completed or ongoing efficiency initiatives would contribute to an increase in efficiency of 21.5 TWh by 2010 and 27.0 TWh by 2016. In the Energy Efficiency Study, 3 the results were also calculated in terms of primary energy consumption and the conclusion (using that calculation method) showed that Sweden met the targets set out in the Energy Services Directive.4 However, 1 This action plan is referred to in the Energy Efficiency Directive as the first action plan, since it is the first action plan to be produced pursuant to the said Directive. However, in the investigation/report, this action plan will be referred to as the fourth plan in order to avoid confusion with the very first Energy Efficiency Action Plan that was submitted to the European Commission in 2008. 2 The first action plan corresponds to Chapter 11 of Government Bill 2008/09: 163En sammanhållen energi- och klimatpolitik: Energi [A Coherent Energy and Climate Policy]: Energy with supporting data from the Energy Efficiency Study. 3 On 14 June 2006, the Government appointed a special investigator with the task of proposing how the Energy Services Directive should be implemented in Sweden. The task also included developing weighting factors and a proposal for Sweden's first action plan. The Energy Efficiency Study consisted of a special investigator and experts to assist the special investigator. 4 2006/32/EC it was pointed out in the study that there was reason to continue the work to increase efficiency and be more ambitious. In the second national action plan (2011), the targets were recalculated and then amounted to 24 TWh by 2010 and 33.2 TWh by 2016. The values differ because more initiatives were included, other calculation methods were used, and the calculations included other time periods and lifespans for measures. It is therefore inappropriate to directly compare the results of the two action plans. The second action plan showed that Sweden meets the targets for savings by a comfortable margin. Mainly by applying the calculation methods recommended by the European Commission at that time, the savings were calculated at 33.1 TWh end-use energy by 2010 and 53.8 TWh by 2016. In the third action plan from April 2014, the savings were calculated at 34.3 by 2011 and 48.7 TWh by 2016 as opposed to the target of 33.2 TWh by 2016. The reason for the difference in the final result for 2016 between the second and third action plans is essentially a question of changes in the calculation methods that followed the European Commission template from 2013. The template in question has also been applied to the calculations in this report. 1.2 Method The EU Commission produced a template5 and accompanying guidance for the national energy efficiency action plans, whose structure the report follows, in 2013. The requirements of the template are set out at the beginning of each section in a text box. In addition, the text also corresponds to points contained in the guidance. The methods applied in the third action plan, which the EU Commission recommended at the time of the reports for the second Energy Efficiency Action Plan (2011) are mainly used for monitoring the ESD target (see section 2.1). However, the bottom-up methods the Commission recommended for housing and services and which are used in the second action plan are designed so as to be based on statistics at building level. Because there are no statistics at that level, existing statistics are supplemented with estimates and assumptions. For that reason, the third action plan and, consequently, this fourth action plan contain deviations from this method. When calculations are carried out top-down it means that the effect of all actions on the market are included, even those that do not derive from any instrument. Structural effects and cyclical effects, for example, are also included. That is one of the reasons why the results of the calculations will only be used for the purpose of monitoring the ESD target and not, for example, for monitoring individual instruments. 5 Commission Staff Working Document, Guidance for National Energy Efficiency Action Plans, SWD (2013) 180, final 2 Energy efficiency targets 2.1 National energy efficiency targets (1) State the national energy efficiency guide target for 2020 as required by Article 3(1) in the Energy Efficiency Directive (Directive 2012/27/EU Article 3(1) and Annex XIV, part 2, section 1).
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