Database DEEP with more than 2.700 industrial projects demonstrates the economic value of energy efficiency measures in EU industry.
Brussels, 30 November 2016 – The European Commission released its ‘Clean Energy For All Europeans’ Package. This includes legislative proposals to review the Union’s energy efficiency legislation.
The EU Commission proposes a binding 2030 energy efficiency target of 30% (before 27%) and sets Energy Efficiency first. Furthermore an extension of the EED’s main provisions, Article 7 including the obligation for member states to reduce their energy sales by 1,5% every year until 2050.
The Energy Efficiency First Principle builds on the simple truth that the cheapest energy is the one that we do not consume. The package therefore recommends that Energy efficiency should be considered as a source of energy in itself:
The value of Energy Efficiency for European citizens and the European Union is striking:
- It is endless
- It is available everywhere
And it is the most cost-effective way of achieving Energy Union objectives of:
- Security of Energy Supply
- Global Leadership in Renewables
- Decarbonisation (Paris Climate Agreement)
…while promoting growth, jobs and investment.
Also today, the Energy Efficiency Financial Institutions Group (EEFIG), co-convened by the European Commission and UNEP Finance Initiative (UNEP FI), launched the De-risking Energy Efficiency Platform (DEEP): the largest pan-EU open-source database containing detailed information and analysis of over 7,800 industrial and buildings related energy efficiency projects (7.300 from Europe and 500 mainly from the US).
EiiF has contributed to DEEP with 64 waste heat recovery projects with rapid and attractive payback times, supporting very much the main message of DEEP for industrial Energy Efficiency projects:
Attractive returns with payback times of 2 years or even less can be expected making energy efficiency the most cost-effective fuel for industry.
In EiiF’s TIPCHECK Report “Harnessing the Potential of Industrial Insulation” released in May this year and already out in its second edition the average payback of all 180 Thermal Energy Audits was with 1,5 years even below the DEEP average results of only 2 years.
To learn more about TIPCHECK (Technical Insulation Performance Check) please click here.
DEEP is a direct response to the EEFIG recommendation from its report “Energy Efficiency – the first fuel for the EU Economy: How to drive new finance for energy efficiency investments” of the need to better understand the real risks and benefits of energy efficiency investments based on market evidence and track record. By disclosing thousands of data points showing the real technical and financial data from a large number of implemented energy efficiency projects across the economy, the DEEP platform is a new source of operational risk management information, which will help project developers, financiers, and investors better assess the risks and benefits of energy efficiency investments across Europe.
Dominique Ristori, Director General for Energy at the European Commission, welcomes the launch of DEEP: "DEEP is an important element of our Clean Energy for all Europeans package, which aims to speed both the clean energy transition and growth and job creation. By disclosing the real benefits of energy efficiency projects, the DEEP platform will facilitate the mobilisation of private financing and help putting energy efficiency first. I encourage all project promoters and investors to support this initiative by sharing their data and performance track records."
DEEP Highlights the Strong Economic Rationale for Energy Efficiency in Europe
DEEP’s evidence from over 7,300 projects in Europe, and about 500 others, with an aggregate investment total of Euro 1.5 billion shows that the median avoidance cost of saving energy is very attractive (below EU energy prices and also delivering CO2 emissions reductions):
Euro 0.012 /kWh in industry!
Time to tap this potential and for industry to reduce energy cost by including Energy Efficiency measures not only into their financing strategies but first of all in their productions. Low hanging fruits like industrial insulation are offering a highly attractive first step.
For more questions regarding TIPCHECK and how Industrial Insulation could contribute to your business case, please click here.