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GSR 2015 - Policies to Advance Renewable Energy– Energy Efficiency Link

121 06 RENEWABLES 2015 GLOBAL STATUS REPORT POLICIES TO ADVANCE THE RENEWABLE ENERGY– ENERGY EFFICIENCY LINK Although a large and increasing number of countries has established policies to support energy efficiency and renewable energy separately, to date there has been relatively little systematic linking of the two in the policy arena. In some cases, energy efficiency and renewables are even put in competition with each other.71 However, a small but growing number of policies has begun to address efficiency and renewable energy in concert, particularly through building-related incentives and economy-wide targets and regulations. Three main approaches have been taken thus far: encouraging renewables and energy efficiency in parallel on an economy- wide basis (e.g., parallel targets for both); integrating renewables and energy efficiency under the same economy-wide basis (e.g., Renewable Portfolio Standards, RPS, that can be met with either/ both); and requiring the joint implementation of renewables and energy efficiency (e.g., energy efficiency upgrades required before renewables can be implemented). Recent targets that combine efficiency and renewables have been adopted by several individual countries as well as at the EU level. For example, alongside its energy efficiency targets for 2020 and 2030, the European Union has committed to increasing the renewable share in the overall energy mix (to 27% by 2030).72 In 2013, India introduced its 12th Five-Year Plan (2012–17), which focuses on actions required to achieve its targets to reduce energy intensity 20–25% by 2020, and to add 30 GW of renewable energy capacity during 2012–17.73 Also in 2013, Japan adopted a Low Carbon Technology Plan to develop and diffuse energy efficiency and renewable energy technologies through innovation and government support policies.74 To achieve an EU Directive requiring all Member States to ensure that public buildings and all new construction are nZE by the end of 2018 and 2020, respectively, several EU states—including Belgium, Denmark, France, Germany, Italy, and the United Kingdom—have established intermediate targets for public buildings.75 These targets vary by country according to factors such as building size and the target year.76 Targets have been used to promote efficiency and renewables in the transport sector as well. The Czech Republic, for example, adopted a target in 2014 to increase the share of renewables in total transport energy consumption to 10% by 2020, while also reducing energy consumption and emissions.77 Some policymakers are using regulations to advance efficiency and renewables in combination. In early 2015, Switzerland established rules for building energy codes that include nZEB standards from 2020 onwards (similar to EU requirements under the EU Energy Performance of Buildings Directive) and a 10% renewable requirement for heating system retrofits.78 In 2014, the US state of California began implementing its revised building code, which requires that all new residential and commercial buildings be NZE by 2020 and 2030, respectively.79 Although building regulations are set at the federal level in Australia, Sydney provides an example of an integrated approach to energy efficiency and renewable energy planning in buildings at the local level. As of early 2015, the city was in the process of consulting on its draft Energy Efficiency Master Plan, which is intended to reduce energy use in buildings (and associated greenhouse gas emissions) and will be implemented alongside the city’s Renewable Energy Master Plan and its Trigeneration Master Plan.80 In addition to targets and regulations, several countries have used fiscal incentives to advance renewables and efficiency in parallel. In early 2014, California took steps to address mortgage lenders’ concerns in order to revive its successful PACE financing programme that has supported energy efficiency improvements in buildings and rooftop solar PV installations.81 In early 2015, 38 California cities and three counties launched a new PACE programme.82 Also in early 2015, Germany revised subsidy guidelines to boost the renewable share of heat in buildings in order to meet its climate targets; the incentive programme supports solar heat as well as energy efficiency.83 Colombia enacted Law 1715 in 2014 to promote the development of renewable energy sources and their integration into the power market, while also establishing the legal framework and financial instruments to promote energy efficiency, including the creation of a Non-Conventional Energy and Efficient Energy Management Fund to help finance these initiatives.84 In 2013, Luxembourg adopted a scheme that provides grants for projects that improve energy savings and increase the use of renewable energy sources in existing and new high-performance structures.85 That same year, Italy introduced an incentive that covers up to 40% of investments in energy efficiency improvements in existing buildings, small- scale high-efficiency systems, and/or renewable thermal energy technologies.86 In other sectors, examples of fiscal incentives for renewables and efficiency combined exist but appear to be more limited. Poland, for example, introduced a five-year programme in 2013 to provide investment grants (up to 45%) for projects that reduce emissions from urban transport, including the use of energy efficiency and renewable energy.87 Despite the actions taken towards improving energy efficiency and combining these efforts with renewable energy applications, there is still the risk of the rebound effect. Rebound occurs when cost savings from greater efficiency stimulate greater utilisation (e.g., running an individual appliance or vehicle for more hours, or operating more units, such as larger numbers of light bulbs or appliances). However, the still-limited number of studies makes it impossible to draw conclusions regarding rebound impacts in a typical energy efficiency project.88

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