Draft Summary Minutes

European Network of Energy Authorities and Managing Authorities

of the Cohesion Policy 2014-2020

EMA NETWORK – 8th Meeting

Brussels, 3-4 December 2018

Participants

About 60 participants in total, with 16 Member States1 represented, including representatives

of managing authorities and energy authorities, regions, financial institutions, stakeholders

and representatives from the European institutions.

Welcome and Introductions by

Dominique Ristori, Director General for Energy

D. Ristori informed about the progress regarding the new policy targets for 2030: the new

regulatory framework includes an energy efficiency target for the EU for 2030 of 32.5% with

an upwards revision clause by 2023. This new objective shows the EU's high level of

ambition and demonstrates the remarkable pace of change of new technologies and reduced

costs through economies of scale. Together with the recently agreed 32% renewable energy

target for the EU for 2030, Europe will be equipped to complete the clean energy transition

and meet the goals set by the Paris Agreement. D. Ristori stressed that by supporting and

delivering the clean energy transition, the EU is helping to create growth, employment and

investment opportunities for the benefit of European energy consumers. He also recalled the

important role of new technologies as well as the role of regions and cities in this process. In

this context, Structural Funds are indispensable to put in place the right strategies and

measures for our clean energy priorities.

Session 1: Policy Developments in Energy and Cohesion Policies

Moderator: Tudor Constantinescu, DG ENER

1. Energy and Climate Governance and Long term decarbonisation strategy – Megan Richards, Director, DG ENER

M. Richards highlighted the main elements of the EU long Term Strategy (LTS) and

Governance recalling that NECPs represent the first ever tools ensuring the definition of

coherent long-term energy and climate policy – thus constituting important instruments both

in view of our Paris commitments and to foster investment certainty in the region. The

Commission Proposal for the next Multiannual Financial Framework (MFF) for 2021 -2027

is particular important also in the content of the preparation of the National Plans. The

Proposal for the Common Provisions Regulation (CPR) emphasises that Member States, for

their programmes and financial allocation for low-carbon investments, should take account of

the NECP and the corresponding Union recommendations. This is particularly relevant for

1 No representatives from CY, DE, DK, FR, LU, LV, MT, PT, RO, SE, SI, UK.

https://encrypted.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwiqsuvsjvvZAhUHsxQKHYB1C4EQFggrMAA&url=http%3A%2F%2Feusew.eu%2Fmechthild-w%25C3%25B6rsd%25C3%25B6rfer&usg=AOvVaw2meXeulZtnerZsqmhd2qFM

the European Regional Development Fund (ERDF) and the Cohesion Fund (CF) where a

thematic enabling condition specifically links the NECPs to investments in energy efficiency

and renewables.

M. Richards also stressed that the Long Term Strategy shows how Europe can lead the way

to climate neutrality by investing into realistic technological solutions, empowering citizens,

and aligning action in key areas such as industrial policy, finance, or research – while

ensuring social fairness for a just transition.

M. Richards finally recalled the importance not only in the dialogue between energy experts,

but at least as importantly, this dialogue needs to involve the representatives of Cohesion

Policy Managing Authorities. The energy transition will bring about a deep transformation of

our economic model. Cohesion Policy funding will have an important role to play in

promoting our common long term goals.

2. Cohesion policy: State of play with the preparations for post-2020 – Rudolf Niessler, Director, DG REGIO

R. Niessler informed about the progress with the legislative framework 2021-20272. On

energy issues, in particular, the aspects now discussed are on enabling conditions (including

the link to the forthcoming Integrated National Energy and Climate Plans), the definition of

corresponding specific objectives and the exclusion rules. No substantial changes are

expected and all this will continue under the Romanian presidency.

Having already some visibility on the future architecture governing EU Cohesion policy

support for energy, R. Niessler invited the Managing authorities to engage, together with the

competent authorities, in carrying out an analysis needed to underpin the future programmes

concerned. These would allow them to be ready when the Commission formally launches the

programming negotiations with the forthcoming publication of the European Semester

Country Reports.

Furthermore, R. Niessler stressed the intention of the Commission to ensure stronger and

more effective links between the European Semester and Union funding for the 2021-2027

period. The objective is to ensure greater synergies and complementarity between the

coordination of economic policies and the cohesion policy funds.

R. Niessler also informed about the Commission plan to organise a technical programming

seminar with Member State representatives in March 2019. The aim is to discuss a number of

points related to the programming process and the relevant elements of the regulation(s). In

particular, the seminar will be designed to cover aspects of the Partnership Agreement and

programmes pertinent for the informal dialogues with the Member States in order to set

ground for the initiation of these dialogues as soon as possible in 2019.

Finally, R. Niessler stressed the importance of good communication between the network

members and all relevant actors at national, regional and local level to identify where there

may be needs for support and good examples. To this end, he encouraged the participants to

disseminate the information and knowledge gained in the network from the network members

to all relevant actors in the member states.

2 As regards the Council: In parallel, discussions on the European Territorial Cooperation and European Cross-Border Mechanism regulations have been engaged and will be continued under the Romanian presidency. As regards the European Parliament, the process is also well advanced and votes in the REGI Committee on the draft Common Provisions, ERDF / CF and Interreg regulations are expected in December.

http://ec.europa.eu/regional_policy/index.cfm/en/

3. Local and Regional Perspectives - Markku Markkula, First Vice-President, Committee of the Regions

M. Markkula stressed that if implemented effectively and in synergy with other public and

private funding, cohesion policy investment will contribute to achieving economic, social and

territorial cohesion. It will continue to spark innovation, create jobs and prosperity, support

social integration and tackle regional disparities. Local and regional authorities know how

cohesion funds can best serve their communities so their role must be strengthened to make

this cornerstone of EU policy fit for the future. He also added, in line with remarks from D.

Ristori, the growing importance of research and innovation for the clean energy transition;

and in this context the key role of cities and regions.

4. The new energy efficiency legislation: EPBD and EED – Karlis Goldstein, DG ENER

K. Goldstein replaced Paul Hodson (Head of the Energy Efficiency Unit in DG ENER) due to

urgent priorities related to inter-institutional negotiations on legislative proposals concerning

energy efficiency, and introduced the session by presenting the latest developments in the EU

policy on energy efficiency. The update included a summary of the current legislative

framework for energy efficiency (EED, EPDB, Ecodesign, Energy Labelling, plus financing

of energy efficiency investments), and the presentation of the new Clean Energy Package, of

which energy efficiency is a key pillar (energy efficiency first principle, key provisions and

the timelines for the reviews of the EPBD and EED).

5. 2014-2020 Cohesion Policy Programmes – Progress and results of the current period, examples from Member States:

Didier Boreux – Jan Breijne, Belgium

Belgium provided the state of play for projects under the low carbon economy thematic

objective (TO4). There are 3 regional, 5 cross border (Interreg), 2 transnational and 4

interregional programmes in Belgium. There are 151 projects in total under TO4 with a total

amount decided of 571, 63 millions €, of which 182,23 millions € represent the total ERDF.

For the Brussels Capital region, the focus under the TO4 for 2014-2020 period was support

for the sustainability of companies, energy renovations of public buildings and support for

urban mobility.

In addition to the same priorities as for Brussels, projects in the Walloon Region focused also

on energy production from RES, and cogeneration unit.

Flanders Region has the same scope of priorities as Brussels and Wallonia with an addition of

renovation of social housing.

Overall, the main challenges were in terms of difficulties for calculation of the funding gap

(exemption now with the Omnibus regulation); difficulties with launching Novallia financial

instrument; tender procedures and building and environemental permits. Project examples

are outlined in the slides.

Henrietta Enikő Csató , Hungary

Hungary presented the energy related measures in the operational programmes of Hungary.

H. Csato stressed that focusing on the building sector is crucial for reaching the energy policy

goals in Hungary, where the energy mix is representative of the EU average (66% fossil fuel

share). H. Csato also stressed that for Hungary the energy import rate is 55,6% and the share

of building sector in total energy consumption is 40%. In this context, she highlighted the

high share of heating and cooling needs as well as the energy poverty in Hungary (ca. 30% of

households affected).

In terms of the Cohesion Policy implementation, the 8 Operational Programmes are managed

by 3 ministries and energy developments are supported by 4 Operational programmes. The

overall budget for 2014-2020 is € 29.65 billion eur (national + EU funds), out of which about

€ 2.1 billion are allocated for energy. The energy priorities in Hungary focus on the

improvement of energy efficiency and application of renewable energy technologies in

buildings (ca. 95% of the energy budget). Hungary also dedicated a grant for small projects

on energy and climate change awareness rising which encountered a significant success in the

country.

Hungary also launched a loan programme for households since February 2017 (€ 340 million

– 10% own source). Due to the high demand the budget had to be doubled in 2018 and the

experience showed that more favourable rules had to be set (extended deadlines eg). Project

examples are outlined in the slides.

Francisco Tovar Rodríguez - Virginia Vivanco Cohn, Spain

Spain presented the evaluation for low carbon economy prepared by the Spanish Low Carbon

Economy Network REBECA. It was pointed out that the ERDF 2014-2020 allocation for

TO4 is about € 3.7 bn which represents 17,7% of the total ERDF. This was a significant

challenge for Spain given that for the 2007-2013 period, low carbon economy represented

only 1,5% of the total ERDF+CF. The analysis outlines the following aspects for renewables

and energy efficiency:

The aids for renewables will continue to be dependent on the feed-in tariff system. Practically all these incentives are applied to already existing installations.

New electric renewables (wind and PV) in the Peninsule will not receive any ERDF aid, additional to the market Price, according to the result of the auctions celebrated in

2007

ERDF will only support wind and PV installations in the islands (Canary and Balearic); and electric biomass plus small installations for self-consumption in the

Peninsule.

ERDF will be very important for energy efficiency (priorities 4b and 4c), with a weight of 79% and 90% respectively of the total interventions.

By regions: Very relevant in Andalucía (100%), Aragón (99,95%), Murcia (99,51%) and Extremadura (91,23%). Less in: Navarra (10,40%), Cataluña (20,25%), País

Vasco (24,66%) y Galicia (40,36%).

The weight of ERDF in public interventions supporting the low carbon economy for the

period 2014-2020 will be quite relevant. 10,54% in total public contribution (taking into

account the renewables feed-in-tariff). This percentage is 88,05% if we do not take into

account the feed-in-tariff.

EE calls under expectations (notably in the private sector); difficult access to finance for

households owners communities; indicators quantification, low price of gasoil jeopardizing

biomass projects are aiming the main challenges outlined in the evaluation. Further potential

is however emphasized for efficiency in public sector (municipalities) and renewables

(Islands, thermal uses, self-consumption).

Project examples are outlined in the slides.

Session 2: Smart Specialisation

Moderator: Maud Skaringer, DG REGIO

1. Interregional pilot projects - Context and achievements – Jitka Vocaskova, DG REGIO

Since 2011, the European Commission provides advice to regional and national authorities on

how to develop, implement their smart specialisation strategies; via a mechanism called

‘Smart Specialisation Platform’. This Platform facilitates mutual learning, data gathering,

analysis, and networking opportunities for around 170 EU regions and 18 national

governments. Thematic Smart Specialisation platforms have also been created. Regions join

forces and pool resources on the basis of matching smart specialisation priorities in high

valued added sectors. For example, partnerships have been developed in the fields of 3D

printing, medical technology, smart grids, solar energy, sustainable buildings, high-tech

farming etc.

The EU-funded pilot action (€1 million from the ERDF) will develop interregional

partnerships involving public authorities, businesses and researchers from at least 4 different

EU countries. The aim is to commercialise and scale-up ‘bankable’ interregional projects that

can create or reshape European value chains in priority areas such as renewable energy, for

example. In September 2017 was launched the call for expression of interest. Regions from at

least 4 different countries who want to work together on a specific priority area and create a

pipeline of projects submitted joint applications. In the course of 2018, experts from several

Commission departments and external experts provide tailored support and help identify

opportunities for funding at EU, national and regional level for 5 to 10 selected partnerships.

End of 2018, each partnership has drawn up an action plan to undertake the

commercialisation and scale-up of its projects. This includes having identified obstacles to

overcome and other EU programmes to tap into (COSME, H2020…). In early 2019

conclusions drawn from this pilot will feed into the reflection on how to best support

interregional partnerships and projects, especially in the post 2020 framework. Two energy

related partnerships were selected: Marine renewable energy and sustainable buildings:

- Marine Renewable Energy – José Ignacio Hormaeche, Basque Energy Cluster

Built on technological and industrial expertise in the partner regions, the partnership aims to

facilitate European companies’ participation in pan-EU supply and value chains to solve

these challenges, with a view to reducing the relatively higher costs of energy generation

facing the MRE sector than other methods of green electricity generation.

Based on the previous experience on the Vanguard Initiative this partnership has identified

several co-investment areas. "Corrosion" seems to be the most promising one. Main

bottlenecks for this pilot case would be huge investments in infrastructures, need to focus on

standardisation and certification procedures, lack of capacities in coordinating actions.

More information here: http://s3platform.jrc.ec.europa.eu/marine-renewable-energy

- Sustainable Buildings – Joaquin Villar, Andalusian Energy Agency

The aim of this partnership will be to extend the scope of initial pilot on energy savings in

university campus in Friuli-Venezia-Giulia (IT) and Lappeenranta (FI) to the other partner

regions. A first methodology was already developed. Bottlenecks will consist in: patenting

http://s3platform.jrc.ec.europa.eu/marine-renewable-energy

and prototyping activities, IPR and juridical advice, development of clear business plans,

creating a homogenous regulation and common guidelines in this field at EU level.

More information http://s3platform.jrc.ec.europa.eu/sustainable-buildings

2. S3P Energy

- State of play of the Partnerships and ongoing activities. Fernando Merida, JRC Sevilla

Energy is a topic with high interest amongst the Member States and regions registered in the

S3 Platform (73 regions and Member States registered in the SP3Energy). These strategies

set priorities at national and regional levels to build competitive advantage by developing and

matching research and innovation (R&I) own strengths with business needs, to address

emerging opportunities and market developments in a coherent manner, while avoiding

duplication and fragmentation of efforts. F. Merida recalled the aim of the thematic platforms

which is to support interregional cooperation in new growth areas, aiming to build an

investment pipeline of tangible projects and also to provide tailored advice and help regions

establish links with the business and research communities. Furthermore, the platforms help

regions develop shared infrastructure such as testing facilities, pilot plants, etc.

F. Merida is coordinating the S3 Energy Platform3, which promotes cooperation not only

within regions, but also between regions. Proactive 'match-making' is provided to MS and

regions that have planned investments in energy innovation.

In this context, the S3PEnergy is currently supporting the regions that share

similar/complementary energy priorities in their S3 strategies to mobilize concrete investment

projects by facilitating the creation of "S3 Energy Partnerships" 4that offer interactive and

participatory arenas for interregional cooperation. The S3PEnergy collaboration helps regions

to combine complementary strengths, exploit their competences in R&I, build-up necessary

research capacities, overcome the lack of critical mass and fragmentation, gain better access

to the global value chains, and as foster partnerships and/or co-investment.

- Progress on Heating & Cooling, Juan Pablo Jimenez Navarro, JRC Petten

Heating and cooling in our buildings and industry accounts for half of the EU's energy

consumption. Moreover, 84% of heating and cooling is still generated from fossil fuels, while

only 16% is generated from renewable energy. In order to fulfil the EU's climate and energy

goals, the heating and cooling sector must sharply reduce its energy consumption and cut its

use of fossil fuels. In this context, J.P. Jimenez Navarro stressed that heating and cooling is of

interest to all European regions. Indeed, regions have the role to improve the heating and

cooling system in their regions, being the residential sector a major target. The heating and

cooling initiative can contribute to existing S3P partnerships in the energy area. He added

that the alignment between administrations (national, regional and local) is key to succeed in

the decarbonation of the heating sector.

3 Two other Thematic Platforms are Agri-Food and Industrial Modernisation 4 Bioenergy – Marine Renewable Energy – Smart Grids - Sustainable Buildings – Solar Energy

http://s3platform.jrc.ec.europa.eu/sustainable-buildingshttp://s3platform.jrc.ec.europa.eu/s3-energy-partnershipshttp://ec.europa.eu/energy/en/topics/energy-efficiency/heating-and-coolinghttp://ec.europa.eu/energy/en/topics/energy-strategyhttp://ec.europa.eu/energy/en/topics/energy-strategy

Session 3: Policy updates and new drivers in EU Energy policies

Moderator: Tudor Constantinescu, DG ENER

T.Constantinescu recalled the progress on the Clean Energy Package negotiations (also

mentioned on Day1). He stressed that the new EE and Renewables directives will also have

an impact on the investments under the TO4 (low carbon economy) in the current period but

also, and most importantly in the next period under PO2.

Furthermore, the PO1 in the 2021-2027 period (industrialisation, smart specialisation,

innovation) will play a significant role in the energy transition. For the 2021-2027 period, 30

% of the funds will have to be allocated for PO1 and 85% in more developed regions for PO1

and PO2. Therefore the link with Horizon Europe will need to be even stronger.

1. Horizon Europe proposal & SET Plan ongoing actions and achievements –Haitze Siemers, Head of Unit, DG ENER

The Commission has published its proposal for Horizon Europe, an ambitious €100 billion5

research and innovation programme that will succeed Horizon 2020. Horizon Europe is the

research and innovation funding programme for seven years (2021-2027) to strengthen the

EU's scientific and technological bases to boost Europe's innovation capacity,

competitiveness and jobs to deliver on citizens' priorities and sustain our socioeconomic

model and values. The proposal was made as part of the EU's proposal for the next EU long-

term budget, the multiannual financial framework (MFF).

H. Siemers stressed the important role of technologies and innovation in the energy

transition, which is also reflected in the new ERDF+CP proposed regulation and the policy

objective 1 as well as the LIFE and Invest EU programmes, both with specific innovation

components.

Furthermore, he added that the national energy and climate plans will include national

targets, contributions, policies and measures for each of the five dimensions6 of the energy

union including research, innovation and competitiveness.

He also recalled the important role of the he SET Plan in promoting research and innovation

efforts across Europe by supporting the most impactful technologies in the EU's

transformation to a low-carbon energy system.

H. Siemers also pointed out the strong link between the energy transition investments and

competitiveness and growth. The framework and the funding being at the disposal of the

member states, the challenge will be to define priorities and later on implement quality and

sustainable projects.

More information:

Horizon Europe https://ec.europa.eu/info/sites/info/files/horizon-europe-presentation_2018_en.pdf

InvestEU https://ec.europa.eu/commission/publications/investeu-programme_en

LIFE https://ec.europa.eu/easme/en/life

SetPlan https://ec.europa.eu/energy/en/topics/technology-and-innovation/strategic-energy-technology-plan

5 Additional € 4.1 billion are proposed to be allocated for defence research, in a separate proposal for a European Defence Fund. 6 In addition to decarbonisation, energy efficiency, energy security, internal energy market.

https://ec.europa.eu/commission/future-europe/eu-budget-future_enhttps://ec.europa.eu/commission/future-europe/eu-budget-future_enhttps://ec.europa.eu/info/sites/info/files/horizon-europe-presentation_2018_en.pdfhttps://ec.europa.eu/info/sites/info/files/horizon-europe-presentation_2018_en.pdfhttps://ec.europa.eu/commission/publications/investeu-programme_enhttps://ec.europa.eu/easme/en/lifehttps://ec.europa.eu/energy/en/topics/technology-and-innovation/strategic-energy-technology-planhttps://ec.europa.eu/energy/en/topics/technology-and-innovation/strategic-energy-technology-plan

2. Revised Energy Efficiency, Renewable Energy and Energy Performance of Buildings Directives Panel discussion:

Hans Van Steen, Acting Director, DG ENER H. Van Steen recalled that the EU clean energy package is directed to place consumers at the

forefront of the transition to clean energy, with benefits for consumers. Indeed, the

Commission wants the EU to lead the clean energy transition. For this reason the EU has

committed to cut CO2 emissions by at least 40% by 2030 while modernising the EU's

economy and delivering on jobs and growth for all European citizens. In doing so, the

Commission is guided by three main goals: putting energy efficiency first, achieving global

leadership in renewable energies and providing a fair deal for consumers.

He also recalled the Governance Regulation mechanism (fixed for the first time in EU

legislation) which will provide greater investor confidence, predictability in EU Member

States through long-term clean energy investment plans.

Adrian Joyce, Secretary General, EuroACE Joyce introduced EuroACE (the European Alliance of Companies for Energy Efficiency in

Buildings) which was formed in 1998 by Europe’s leading companies (15 member

companies) involved with the manufacture, distribution and installation of a variety of energy

saving goods and services. A.Joyce recalled that the Renovate Europe Campaign is running

since 2011 and is showing the building renovation and energy efficiency in buildings is a

cross-party topic that everyone should support.

The Renovate Europe Campaign includes all EuroACE member companies, as well as 11

other organisations at European level and national partners from 15 Member States7

(currently in negotiation with two more MS). It counts on the support of more than 100

Members of the European Parliament, who have signed the Manifesto since 2014.

A.Joyce stressed the importance of a holistic approach in achieving the highest performance

in buildings, which is also the key message in the Guide to the buildings directive,

distributed at the meeting. This guide contains 12 High-Level Recommendations:

https://euroace.org/wp-content/uploads/2018/11/EuroACE-Guide-to-EPBD-Implementation-

web-version.pdf)

Aurelie Beauvais, Policy Director, SolarPower Europe A.Beauvais recalled the Clean Energy Package is intended to maximise EU leadership in the

energy transition, by placing the consumers at the heart of the EU’s energy strategy. The

Package is a key piece of legislation for the solar sector, with huge ramifications for the

technology’s growth in the coming few years. She also stressed that small-scale renewable

energy producers are not typical energy market players and a specific framework for the

integration of small-scale renewable installations is therefore crucial to maintain a level-

playing field on the energy market. The 32% renewable energy target will significantly boost

solar deployment and add thousands of new local solar jobs in Europe. The recast Renewable

Energy Directive also ensures a strong framework for self-consumption and prosumers;

securing the rights of EU households and businesses to self-generate, consume and store the

energy they produce. This is a major achievement and is paving the way toward EU

leadership in solar and renewables. A. Beauvais also emphasized the importance of the

electricity market design to fit for solar, by enabling small-scale solar, active consumers and

securing appropriate rules for storage, demand response and aggregation to provide new

services.

7 BE, CZ, DE, ES, EL, FR, HR, HU, IE, IT, NL, PL, SI, RO, UK

http://renovate-europe.eu/wp-content/uploads/2015/10/REC-2014-Manifesto_English-Version.pdfhttps://euroace.org/wp-content/uploads/2018/11/EuroACE-Guide-to-EPBD-Implementation-web-version.pdfhttps://euroace.org/wp-content/uploads/2018/11/EuroACE-Guide-to-EPBD-Implementation-web-version.pdf

Member States’ views – Discussion

- BG recalled the Artcile 7 under the Energy Efficiency Directive, by which EU countries should set up an energy efficiency obligation scheme. This scheme requires

energy companies to achieve yearly energy savings of 1.5% of annual sales to final

consumers. In order to reach this target, companies have to carry out measures which

help final consumers improve energy efficiency. This may include improving the

heating system in consumers' homes, installing double glazed windows, or better

insulating roofs to reduce energy consumption. This entails that modern energy

providers are no longer providing energy only but providing services. It was also

stressed that the new integrated and holistic approach to energy efficiency and

renewable energy is crucial.

- HU raised the issue of the EE CPR new indicators – how can the industry participate

- IE raised the question of financing EE and how to make it more accessible for EU citizens. A. Joyce recalled in this context the Energy Efficient mortgages initiative,

funded under H2020. The pilot scheme aims at trialling new criteria for energy

efficiency mortgages for homebuyers. An Energy Efficient Mortgage (EEM) aims at

incentivising borrowers to improve the energy efficiency of their buildings and/or

acquire highly energy efficient properties. The incentives for borrowers could be

favourable mortgage financing conditions and/or an increased loan amount at

origination to finance the energy efficiency improvement of the property and enhance

its Energy Performance Certificate (EPC) level. More information

http://eemap.energyefficientmortgages.eu/

- IE also stressed the issue mis-selling solar panels. Indeed, many companies misled customers about the benefits or costs of their solar panels. Consequently, many people

used finance or credit to purchase solar panel systems and have been left with

expensive monthly payments on top of still having to pay for their electricity. IE

recalled the important role the industry has to play in this matter.

- In this context, SK informed that the Slovak Energy agency established in 2015 a programme providing grants (with ESIF) renewable installations. About 10.000 PV

installations have been subsidised through these grants. He stressed that in terms of

quality and avoiding mis-selling, in addition to the grants, the agency is providing

practical advising and furthermore allowing only selected equipment that can be used

(based on on a list of quality).

- EIB informed the participants about the Guide to the Statistical Treatment of Energy Performance Contracts http://www.eib.org/en/infocentre/publications/all/guide-to-

statistical-treatment-of-epc.htm. He also informed about EIB’s ongoing work in

establishing investment platforms for buildings renovation (notably in CZ).

http://eemap.energyefficientmortgages.eu/http://www.eib.org/en/infocentre/publications/all/guide-to-statistical-treatment-of-epc.htmhttp://www.eib.org/en/infocentre/publications/all/guide-to-statistical-treatment-of-epc.htm

State of play & new priorities in the Member States. Tour de table

3. State of Play in the Member States: Tour de table

BE: presented in Session 1

BG: Bulgaria has for 2014-2020 project selection rates already above 60% at the end

of 2017. Even though there is still a need for the available funding especially in the

area of deployment of new technologies. In this regard, the research and innovation

and information and communication technologies thematic objectives are one of the

most important areas of the ESIF. The key to successful acquire of funding for the

upcoming years is in mobilization of private finance and the development of financial

instruments. The grant support of the ESIF is still highly needed instrument for

development and implementation of energy efficiency projects in all sectors in

Bulgaria. For the effective and more accurate evaluation of the full effect of the ESIF

resources acquiring the managing authorities of the Operational programs need to

develop adequate indicators for tracking out the energy savings achieved with the

grant funding.

CZ: The interconnection capacity for electricity is well above the 2020 and 2030 EU

targets. The Czech Republic has already met its 2020 targets for renewable energy

(target 13 %; 15.1 % in 2015). However, due to changes to support schemes for

renewables, the development of renewable energy sources levelled off in 2015. The

use of bio fuels in transport decreased in 2015 to 6.5 %, staying below the specific 10

% target. Progress in selection and payments to beneficiaries needs to be made.

Currently, project selection represents 57% of total funding ERDF/CF/ESF. The total

amount of spending represents 25% of total funding ERDF/CF/ESF, which is below

EU average of 27%. Absorption capacity is low regarding next generation broadband

networks and energy efficiency. Reallocation of EUR 232 million (from broadband

and energy efficiency) to the three CZ coal regions (IROP 57.2% out of EUR 201

million, i.e. EUR 115 million for clean mobility, education and health, OP ENV EUR

39 million for rehabilitation of mining sites, OPEIC EUR 77 million for financial

instruments for revitalization of brownfields) should be cleared by Commission

decisions until the beginning of April.

EL: Payments: For the 2014-2020 period, up to mid-September 2018 an amount of

EUR 4.7 billion has been paid to Greece in terms of pre-financings and interim

payments (ERDF-CF-ESF-YEI). This amount also includes EUR 994 million paid to

Greece for ERDF, ESF and CF as additional pre-financing amounts (7%) following

the CPR amendment in 2015.

OP Amendments: All OPs were amended in 2017 to encompass the additional

allocation following the technical adjustment of the MFF review. Modifications were

also submitted in the first half of July 2018, aiming to modify among others the

performance framework and are currently under assessment.

Policy Initiatives: Greece participates in three key policy initiatives launched by the

Commission services: For the DG REGIO initiative 'Interregional cooperation in

Innovation', the regions of Central Macedonia and Western Macedonia were selected

in the context of a scheme for 'high tech farming', in line with their respective RIS3.

For the DG ENER-led 'Coal/carbon transition regions' initiative the Region of

Western Macedonia has been selected. The also DG ENER-led 'Clean energy for

islands' initiative has started with a study covering predominantly smaller,

unconnected islands in 14 Member States. Greece has proposed as 'frontrunners' the

islands of Tilos and Kythnos. Greece also highlighted the energy priorities, which will

be reflected in its draft NECP: heating and cooling, interconnections with the islands

and reducing energy poverty.

ES: presented in session 1. Spain also informed the participants about the Royal

Decree-Law 15/2018, approved by the Council of Ministers (on 5/10/2018), on urgent

measures for energy transition and consumer protection. The Plenary of the Congress

of the Deputies of October 18th validated the RD-law by an absolute majority, also

approving its processing as a draft law by way of urgency. (document in annex)

HR: The 2014-2020 is the first "full-fledged" programming period of the Cohesion

policy for the country, with the single OP "Competitiveness and Cohesion"

(OPCC).There was a significant progress made in 2017, especially in selection rate,

however this has subdued during 2018 reaching 62%. The level of payments is still

very low and amounted to 13% of total allocation (ERDF and CF for 2014-2020). In

terms of EE in public buildings, the complete allocation of €300 million has been

spent and contracted 1500 contacts. For EE and RES in industries and enterprises, the

complete allocation €140 million have been spent for public lighting and smart grids.

HU: presented in session 1. In addition, HU emphasised the importance of

networking and sharing experiences among the MS. They welcomed the enhanced

exchange among the MS even outside EMA meetings

IE: EUR 124.5 m of the Ireland ERDF allocation are allocated to Low-carbon

economy, Environment protection and resource efficiency. Progress in this field is

particularly good in both regions with total eligible cost of projects selected to end

December 2017 reported as EUR 75 million in S&E and EUR 36m in BMW. The

reduction of greenhouse gas emissions in Southern and Eastern region has already

overachieved its target. The end of 2017 rates of projects selected are good: S&E OP:

T04 - Low Carbon economy 61%; and T05 - Sustainable Integrated Urban

Development 100% of selected projects. BMW OP: TO 4 - Low Carbon 113%; TO 5

- Integrated Urban Development 100% of selected projects. By end of 2017, 133 Low

carbon economy projects were selected and 16 Integrated Urban Development ones.

Ireland also informed about the The Renewable Electricity Support Scheme (RESS) is

designed to help the State meet its renewable pledges up to 2030. It’s first priority is

to boost renewable energy production quickly to help turn 16 per cent of the State’s

energy needs “green” by 2020.

IT: Italy has an ESIF allocation for 2014-2020 of €44.7 billion, of which €21.7 billion

is ERDF. Project selection for the ERDF OPs 2014-2020 reached 50.8%, compared

to the overall EU figure of 53.4%. However the OPs are at very different stages of

implementation: for the most advanced, calls have been launched and many projects

selected, while there are still some programmes with a very low rate of project

selection. Beneficiaries have declared an expenditure of 4.57% of Italy's ERDF

allocation to the Member State, compared to the EU Average of 9.74%, and

expenditure certified to the Commission amounts to 3.5%.

LT: Lithuania performs relatively well in implementing the ESI Funds, with 60% of

funds already committed to projects and 26% paid by the end of 2018 (ranking 16th

and 10th among the EU MS). In relation to energy objectives, the ESIF will provide a

significant contribution to reducing energy consumption in buildings and enterprises.

Energy from renewable energy sources is expected to increase from 20.3% (2011) to

23.0% (2020).

NL: Implementation of 2014-2020 - The financial and thematic implementation is on

track for the four programmes. Support for Cohesion Policy is still high in the regions,

but the audit burden is still putting much strain on an otherwise efficient programme

management structure. The funds are invested within the strategic framework of four

regional smart specialisation strategies developed for the 2014-2020 period, and

mobilise substantial amounts of national public and in particular private co-financing

(ERDF co-financing rate stands at 35% for innovation).

PL: ESIF implementation is progressing well: 58 % of total allocation (ERDF and CF

2014-2020) committed to operations selected for support by end of 2017. More efforts

should be made in terms of payments which at the end of 2017 amounted to 9,9% of

total allocation (ERDF and CF for 2014-2020). Payment forecast for 2017 (ERDF

/CF) amounted to EUR 4,8 bn - 97.5% of July payment claim forecast met by the end

of 2017. PL stressed the burden of the complicated State Aid Rules and therefore the

area with the biggest progress in PL is the renovation of public buildings (where State

Aid rules don’t apply). The total budget for TO4 is € 9 841 M with the expected

results/impacts to have the share of energy from renewable sources in final gross

energy consumption: 16% (additional capacity of 962 MW of RE production)

SK: The project Green for Households is reaching its half term in providing subsidies

for the installation of several RES (solar thermal, solar PV, heat pumps, wind). Since

the project's start in January 2015, just over 6,460 applications for solar thermal have

been accepted, and the overall installed capacity has reached 23.4 MW(thermal). On

the PV (photovoltaic) side, 3,667 installations were supported, and the installed

capacity has reached nearly 10 MW (electric). Two positive outcomes of this project

could be outlined: an increase in the public's awareness of RES (mainly solar thermal

and solar PV) in Slovakia and the project serving as the basis for establishing

Slovakia's "prosumers.“. For more information see www.siea.sk and

http://zelenadomacnostiam.sk/sk/; Update of the Act on Support of RES and COGEN,

No. 309/2009 Coll. From Oct. 17, 2018 – more precise definitions of biomass,

auctioning etc. ; Decison of the Government of the Slovak republic to end subsidies

on brown coal mining in 2023 that has been announced during the XIII Central

Europe Energy Conference on Nov. 19, 2018.

http://www.siea.sk/http://zelenadomacnostiam.sk/sk/

Session 4: Boosting investment in the building sector

Moderator: Gergana Miladinova

1. Smart Finance for Smart Buildings: State of Play & Presentation of the pilot countries – Szymon Polak, DG ENER

S. Polak recalled the Efficiency First principle, which means assessing the potential value of

investing in energy efficiency – be that end-use savings or demand response – in all decisions

about developing the EU energy system, and prioritizing such investments whenever they

would cost less or deliver more than building new supply or networks. Energy efficiency first

means getting the best out of the energy system at every level. In this context, the Smart

Finance for Smart Buildings facility will improve use of public EU funding and will multiply

the effect of the EU money invested. It will help to de-risk investments in the buildings

sector, giving investors and financiers a better understanding of the risks and benefits of

energy efficiency investments. Moreover, it will offer assistance with project development, as

many households lack the skills and capacity to set up, implement and finance ambitious

energy efficiency projects.

The SFSB Pilot Phase is being tested in 5 main EU markets: Malta, France, Spain,

Netherlands and Portugal, in addition preliminary discussion are starting in Poland and

Ireland. The market feedback from banks and Managing Authorities is positive. The first

guarantee products should be in the first quarter 2019.

2. Perspectives from the financial sector:

Adrian Zambrano, EIF

A.Zambrano stressed the crucial role financial instrument have to play in energy investments.

SFSB, together with other EU policy initiatives for smart buildings, aims to unlock a total of

€10 billion in public and private funds between now and 2020 for energy efficiency projects.

It is estimated that this could support up to 220,000 jobs, and help establish a renovation

market for small businesses worth up to €120 billion. In addition, up to 3.2 million European

families could be taken out of energy poverty.

Complementing Szymon’s presentation, Adrian emphasise that SFSB guarantee will allow:

- Effective use of public money (financial intermediaries undertake to increase their portfolio of EE loans; high leverage level: trigger additional financing from

private sources)

- Co-financing rate of up to 100% in case of combination of ESFI and EFSI, i.e. no national match funding is required

- no need for a new or revised ex ante assessments by the national authorities - if ESIF contributes to existing instrument (e.g. EFSI): no need to select new fund

managers and with the application for payments in accordance with the agreed

schedule

- access to technical assistance from ELENA.

Alexander Hadzhhiivanov, EBRD

A.Hadzhhiivanov presented the EBRD’s Green Economy Transition (GET) approach which’s

objective is to increase the financing of projects that advance the transition to an

environmentally sustainable, low-carbon economy, and help prevent economies from being

locked into a carbon-intensive, polluting pathway that depletes natural assets. The GET

approach aims to increase green financing to approximately 40 per cent of total EBRD

financing by 2020. This is expected to correspond to GET financing of up to €18 billion over

the 2016-20 period, with annual GET financing reaching over €4 billion by 2020. The GET

approach also emphasises innovation. As part of its policy dialogue activities, the EBRD

works with governments to support the development of strong institutional and regulatory

frameworks, a prerequisite for sustainable investments.

Conclusions and AOB

T. Constantinescu thanked all participants for the fruitful discussion, and especially for highlighting the main achievements and challenges faced. He recalled the opportunity for EMA to contribute to the preparation of the future ERDF and Cohesion Fund programming and to the link with the integrated National Energy and Climate Plans. T. Constantinescu stressed that agreed targets and policies under the clean energy package provide the necessary vision for governments and predictability for investors in order to make the energy transition a success. The structural funds are and will continue to be a major source of financing for a fair and clean energy system, with more efficient buildings, with lower energy poverty levels, with support for vulnerable regions like islands and coal regions, and steering the modernisation of the energy industry. To achieve the required scale, more leveraging is needed and the EU Invest will support this process. The future cohesion policy will allocate between 60 to 85% of the resources for innovation, smart specialisation and industrialisation one hand, and for energy, environment and climate on another hand. T. Constantinescu stressed this will be a great opportunity, but also a challenge for the energy investments as for both policy objectives (1 and 2), energy will compete with climate, environment and other topics. For this reason, an even stronger cooperation and exchange between the Energy and Managing authorities but also with the Commission will be crucial for the next period. In terms of input on the State of Play from the MS, Slovakia suggested to send out before the next meeting a template that the MS can use in order to all focus on the same points during the tour de table.