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06 ENERGY EFFICIENCY integration of renewable energy in the long term, while emphasising the important role of energy savings and energy efficiency. 100 Tanzania issued a draft plan to promote energy efficiency in various sectors and increase the contribution of renewable energy to the electricity generation mix. 101 Additionally, a Demand Side Management Campaigns Unit was created within TANESCO (Tanzania Electric Supply Company Limited) to build awareness of peak load management among large power consumers and to install power factor correctors. 102 Rwanda’s grid system lossreduction plan proposes an investment of USD 60 million to reduce losses from 23% to 15% (which would produce capacity savings equivalent to constructing a 15 MW power plant). The country’s Energy Sector Strategic Plan (ESSP) also calls for the development of solar water heater regulations and a dedicated demand-side management unit within its power utility. 103 A few countries also developed national roadmaps and plans focusing specifically on energy efficiency. For example, the Philippines’ Energy Efficiency Roadmap 2014–2030 aims for a 40% reduction in energy intensity over that period, calling for a 1.6% annual reduction in energy consumption against baseline forecasts and energy savings of approximately 10.7 million tonnes of oil equivalent per year by 2030 (all relative to a 2010 baseline). This was followed by the Philippines’ National Energy Efficiency and Conservation Action Plan 2016–2020, which outlines initiatives to expand on those in the Roadmap. 104 of energy service companies. 109 In Kenya, Energy Management Regulations (2012) mandate that consumers of more than 180,000 kWh annually conduct energy audits every three years. 110 In 2014, Austria adopted the Federal Energy Efficiency Act, setting the national target for the country’s final energy consumption not to exceed 1.05 PJ in 2020. 111 As of January 2015, energy suppliers in Austria are required to implement demonstrable measures to increase energy efficiency to achieve the targeted annual increase in efficiency of 0.6% through an energy-savings obligation system; large-scale consumers must implement an energy management system or otherwise face an energy audit every four years, while small and medium consumers can participate voluntarily. 112 A number of new policies in the United States focused on the buildings sector. The national-level Energy Efficiency Improvement Act was enacted into law in 2015, promoting energy efficiency in commercial buildings; establishing new regulations for smart grid-enabled water heaters; ensuring public disclosure of building energy performance and usage; and establishing efficiency requirements for building space leased by any federal agency. 113 Atlanta (Georgia) and Portland (Oregon) became the 12th and 13th US cities to adopt energy efficiency benchmarking through policies to improve building energy performance. 114 To achieve their energy efficiency targets, governments are introducing new regulations or updating existing ones to drive efficiency improvements. In order to comply with the EU target for energy efficiency improvement, a number of EU Member States are implementing various regulatory measures. For example, Luxembourg modified existing regulations on building energy performance to comply with directive 2010/31/EU. 105 Hungary adopted a National Building Energy Performance Strategy 2015–2020 that established primary energy-saving targets to be achieved through buildings refurbishment and introduced stricter requirements for the cumulative primary energy performance for buildings – while also promoting the use of renewable energy sources for heating and cooling in buildings (e.g., solar collectors, biomass and heat pumps). 106 In late 2015, the Energy Community Ministerial Council adopted EU Directive 2012/27/EU, setting a 20% energy efficiency target for 2020 within the Energy Community i and paving the way for additional improvements in the future, while also including consideration of increasing renewables. As in the EU, the Energy Community Directive requires Contracting Parties to adopt energy savings obligation schemes for energy distribution and retail companies; to enact policies to improve efficiency in heating and cooling and to advance co-generation; and to establish annual targets for the renovation of central government buildings. Notably, efficient heating and cooling in the Directive includes the use of renewable energy sources and the reduction of non-renewable primary energy. 107 Also in 2015, Belarus updated its energy efficiency legislation to improve data, monitoring, education, training and international collaboration. 108 Kazakhstan amended its Law on Energy Efficiency (2012) to provide more legal details on the functioning Standards and labelling programmes are the primary tools used to improve the efficiency of a variety of appliances and other energy-consuming products. As of end-2015, such programmes were operational in at least 80 countries and covered more than 50 types of commercial, industrial and residential appliances and equipment. 115 Developments in 2015 include an update to the EU Minimum Energy Performance Standards (MEPS) for low-voltage motors and transformers, with the enactment of more-stringent energy efficiency requirements. 116 Kenya adopted its Energy Bill to (among other things) establish a designated agency that is responsible for energy efficiency improvements, including the adoption or development of standards (notably, the Energy Bill is also designed to clarify issues related to the ownership of renewable energy sources and licensing and to establish a feed-in-tariff system). 117 Kenya’s standards and labelling programme proposes MEPS for a range of i Members of the Energy Community include the EU and eight Contracting Parties: Albania, Bosnia and Herzegovina, Kosovo, the former Yugoslav Republic of Macedonia, Moldova, Montenegro, Serbia and Ukraine. As of April 2016, Armenia, Georgia, Norway and Turkey participated as Observers. 132

appliances, and the country also has set a standard for improved biomass cook stoves. 118 Additionally, Uganda developed MEPS for several appliances, and its National Bureau of Standards has a testing laboratory to support appliance quality monitoring. 119 Many of the new standards set in 2015 were in the transport sector. For example, a new EU mandate requires that all new passenger cars registered from 2015 onwards consume no more than 5.6 litres per 100 km (l/km) of petrol or 4.9 l/100 km of diesel. By 2021, this requirement will be further tightened to 4.1 l/100 km of petrol or 3.6 l/100 km of diesel. 120 Japan also increased its performance requirements under existing fuel-efficiency regulations for lightand heavy-duty vehicles. 121 Saudi Arabia set new regulations for light-duty vehicles to improve vehicle performance by 4% annually, increasing from an average fuel economy of 8.3 l/100 km in 2015 to 5.3 l/100 km by 2025. 122 Uganda’s Fuel Efficiency Initiative Programme supports the development of policies and regulations that promote the use of fuel-efficiency vehicles. 123 Fiscal incentives – including rebates, tax reductions and lowinterest loans – also have been employed to stimulate improvements in energy efficiency. Italy is offering USD 382 million (EUR 350 million) of soft financing for energy efficiency improvements in public school and university buildings. 124 Lithuania is using structural funds from the EU to provide investment incentives for industry to implement efficiency measures between 2014 and 2020. 125 In 2015, Germany began encouraging municipalities, municipal companies, religious communities and small and medium-sized enterprises (SMEs) to implement energy performance contracting through the provision of grants for consulting on related matters. 126 Spain introduced several programmes and allocated funds to support fiscal incentives in 2015. Through its National Energy Efficiency Fund (established in 2014), Spain allocated USD 184 million (EUR 168 million) for energy renovation of buildings, efficiency improvements in the transport and industrial sectors, and more-efficient street lighting. 127 In addition, Spain initiated the Efficient Vehicle Incentives Program, with a budget of USD 191 million (EUR 175 million), to encourage the purchase of new energy-efficient vehicles. 128 The country also launched a subsidy scheme, allocating USD 219 million (EUR 200 million) for energy efficiency improvements, including improving the thermal insulation of buildings and advancing the efficiency of heating and lighting systems. 129 Beyond Europe, Canada started to offer a number of rebates for energy-efficient equipment in 2015, such as ductless heat pumps, cold-climate ductless heat pumps, Energy Star-certified refrigerators and efficient clothes washers. 130 In terms of financing, energy efficiency and renewable energy actions often are considered within a broader area of clean or sustainable energy, and, therefore, both types of projects can be eligible under the same financing scheme. For example, in 2015, the US Environmental Protection Agency introduced the Clean Energy Incentive Program (CEIP) to reward early investments in renewable energy generation and demand-side energy efficiency measures that generate carbon-free energy or reduce end-use energy demand by 2020 and/or 2021. 131 In terms of financial incentive programmes that explicitly target both renewables and efficiency, Nigeria’s National Renewable Energy and Energy Efficiency Policy, adopted in April 2015, provides incentives for selling, manufacturing and importing energy-efficient products, while also promoting policies for renewable energy sources. 132 06 RENEWABLES 2016 · GLOBAL STATUS REPORT 133

06 ENERGY EFFICIENCY<br />

integration of renewable energy in the long term, while emphasising<br />

the important role of energy savings and energy efficiency. 100<br />

Tanzania issued a draft plan to promote energy efficiency in<br />

various sectors and increase the contribution of renewable energy<br />

to the electricity generation mix. 101 Additionally, a Demand Side<br />

Management Campaigns Unit was created within TANESCO<br />

(Tanzania Electric Supply Company Limited) to build awareness<br />

of peak load management among large power consumers and<br />

to install power factor correctors. 102 Rwanda’s grid system lossreduction<br />

plan proposes an investment of USD 60 million to<br />

reduce losses from 23% to 15% (which would produce capacity<br />

savings equivalent to constructing a 15 MW power plant). The<br />

country’s Energy Sector Strategic Plan (ESSP) also calls for the<br />

development of solar water heater regulations and a dedicated<br />

demand-side management unit within its power utility. 103<br />

A few countries also developed national roadmaps and plans<br />

focusing specifically on energy efficiency. For example, the<br />

Philippines’ Energy Efficiency Roadmap 2014–2030 aims for a<br />

40% reduction in energy intensity over that period, calling for a<br />

1.6% annual reduction in energy consumption against baseline<br />

forecasts and energy savings of approximately 10.7 million tonnes<br />

of oil equivalent per year by 2030 (all relative to a 2010 baseline).<br />

This was followed by the Philippines’ National Energy Efficiency<br />

and Conservation Action Plan 2016–2020, which outlines<br />

initiatives to expand on those in the Roadmap. 104<br />

of energy service companies. 109 In Kenya, Energy Management<br />

Regulations (2012) mandate that consumers of more than<br />

180,000 kWh annually conduct energy audits every three years. 110<br />

In 2014, Austria adopted the Federal Energy Efficiency Act, setting<br />

the national target for the country’s final energy consumption not<br />

to exceed 1.05 PJ in 2020. 111 As of January 2015, energy suppliers<br />

in Austria are required to implement demonstrable measures to<br />

increase energy efficiency to achieve the targeted annual increase<br />

in efficiency of 0.6% through an energy-savings obligation system;<br />

large-scale consumers must implement an energy management<br />

system or otherwise face an energy audit every four years, while<br />

small and medium consumers can participate voluntarily. 112<br />

A number of new policies in the United States focused on<br />

the buildings sector. The national-level Energy Efficiency<br />

Improvement Act was enacted into law in 2015, promoting energy<br />

efficiency in commercial buildings; establishing new regulations<br />

for smart grid-enabled water heaters; ensuring public disclosure<br />

of building energy performance and usage; and establishing<br />

efficiency requirements for building space leased by any federal<br />

agency. 113 Atlanta (Georgia) and Portland (Oregon) became the<br />

12th and 13th US cities to adopt energy efficiency benchmarking<br />

through policies to improve building energy performance. 114<br />

To achieve their energy efficiency targets, governments are<br />

introducing new regulations or updating existing ones to drive<br />

efficiency improvements. In order to comply with the EU target for<br />

energy efficiency improvement, a number of EU Member States<br />

are implementing various regulatory measures. For example,<br />

Luxembourg modified existing regulations on building energy<br />

performance to comply with directive 2010/31/EU. 105 Hungary<br />

adopted a National Building Energy Performance Strategy<br />

2015–2020 that established primary energy-saving targets to be<br />

achieved through buildings refurbishment and introduced stricter<br />

requirements for the cumulative primary energy performance for<br />

buildings – while also promoting the use of renewable energy<br />

sources for heating and cooling in buildings (e.g., solar collectors,<br />

biomass and heat pumps). 106<br />

In late 2015, the Energy Community Ministerial Council adopted<br />

EU Directive 2012/27/EU, setting a 20% energy efficiency target<br />

for 2020 within the Energy Community i and paving the way<br />

for additional improvements in the future, while also including<br />

consideration of increasing renewables. As in the EU, the<br />

Energy Community Directive requires Contracting Parties to<br />

adopt energy savings obligation schemes for energy distribution<br />

and retail companies; to enact policies to improve efficiency<br />

in heating and cooling and to advance co-generation; and to<br />

establish annual targets for the renovation of central government<br />

buildings. Notably, efficient heating and cooling in the Directive<br />

includes the use of renewable energy sources and the reduction<br />

of non-renewable primary energy. 107<br />

Also in 2015, Belarus updated its energy efficiency legislation to<br />

improve data, monitoring, education, training and international<br />

collaboration. 108 Kazakhstan amended its Law on Energy<br />

Efficiency (2012) to provide more legal details on the functioning<br />

Standards and labelling programmes are the primary tools used<br />

to improve the efficiency of a variety of appliances and other<br />

energy-consuming products. As of end-2015, such programmes<br />

were operational in at least 80 countries and covered more than<br />

50 types of commercial, industrial and residential appliances and<br />

equipment. 115 Developments in 2015 include an update to the EU<br />

Minimum Energy Performance Standards (MEPS) for low-voltage<br />

motors and transformers, with the enactment of more-stringent<br />

energy efficiency requirements. 116<br />

Kenya adopted its Energy Bill to (among other things) establish<br />

a designated agency that is responsible for energy efficiency<br />

improvements, including the adoption or development of<br />

standards (notably, the Energy Bill is also designed to clarify<br />

issues related to the ownership of renewable energy sources<br />

and licensing and to establish a feed-in-tariff system). 117 Kenya’s<br />

standards and labelling programme proposes MEPS for a range of<br />

i Members of the Energy Community include the EU and eight Contracting Parties: Albania, Bosnia and Herzegovina, Kosovo, the former Yugoslav Republic<br />

of Macedonia, Moldova, Montenegro, Serbia and Ukraine. As of April 2016, Armenia, Georgia, Norway and Turkey participated as Observers.<br />

132

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