Directive 2012/27/EU of the European Parliament and of the CouncilDangos y teitl llawn

ANNEX I U.K. GENERAL PRINCIPLES FOR THE CALCULATION OF ELECTRICITY FROM COGENERATION

Part I U.K. General principles

Values used for calculation of electricity from cogeneration shall be determined on the basis of the expected or actual operation of the unit under normal conditions of use. For micro- cogeneration units the calculation may be based on certified values.

(a)

Electricity production from cogeneration shall be considered equal to total annual electricity production of the unit measured at the outlet of the main generators;

(i)

in cogeneration units of types (b), (d), (e), (f), (g) and (h) referred to in Part II with an annual overall efficiency set by Member States at a level of at least 75 %, and

(ii)

in cogeneration units of types (a) and (c) referred to in Part II with an annual overall efficiency set by Member States at a level of at least 80 %.

(b)

In cogeneration units with an annual overall efficiency below the value referred to in point (i) of point (a) (cogeneration units of types (b), (d), (e), (f), (g), and (h) referred to in Part II) or with an annual overall efficiency below the value referred to in point (ii) of point (a) (cogeneration units of types (a) and (c) referred to in Part II) cogeneration is calculated according to the following formula:

E_CHP=H_CHP*C

where:

• E_CHP is the amount of electricity from cogeneration;

• C is the power-to-heat ratio;

• H_CHP is the amount of useful heat from cogeneration (calculated for this purpose as total heat production minus any heat produced in separate boilers or by live steam extraction from the steam generator before the turbine).

The calculation of electricity from cogeneration must be based on the actual power-to-heat ratio. If the actual power-to-heat ratio of a cogeneration unit is not known, the following default values may be used, in particular for statistical purposes, for units of types (a), (b), (c), (d) and (e) referred to in Part II provided that the calculated cogeneration electricity is less or equal to total electricity production of the unit:

Type of the unit	Default power to heat ratio, C
Combined cycle gas turbine with heat recovery	0,95
Steam back pressure turbine	0,45
Steam condensing extraction turbine	0,45
Gas turbine with heat recovery	0,55
Internal combustion engine	0,75

If Member States introduce default values for power-to-heat ratios for units of types (f), (g), (h), (i), (j) and (k) referred to in Part II, such default values shall be published and shall be notified to the Commission.

(c)

If a share of the energy content of the fuel input to the cogeneration process is recovered in chemicals and recycled this share can be subtracted from the fuel input before calculating the overall efficiency used in points (a) and (b).

(d)

Member States may determine the power-to-heat ratio as the ratio of electricity to useful heat when operating in cogeneration mode at a lower capacity using operational data of the specific unit.

(e)

Member States may use other reporting periods than one year for the purpose of the calculations according to points (a) and (b).

Part II U.K. Cogeneration technologies covered by this Directive

(a) Combined cycle gas turbine with heat recovery U.K.

(b) Steam back pressure turbine U.K.

(c) Steam condensing extraction turbine U.K.

(d) Gas turbine with heat recovery U.K.

(e) Internal combustion engine U.K.

(f) Microturbines U.K.

(g) Stirling engines U.K.

(h) Fuel cells U.K.

(i) Steam engines U.K.

(j) Organic Rankine cycles U.K.

(k) Any other type of technology or combination thereof falling under the definition laid down in Article 2(30). U.K.

When implementing and applying the general principles for the calculation of electricity from cogeneration, Member States shall use the detailed Guidelines established by Commission Decision 2008/952/EC of 19 November 2008 establishing detailed guidelines for the implementation and application of Annex II to Directive 2004/8/EC of the European Parliament and of the Council(1).

ANNEX II U.K. METHODOLOGY FOR DETERMINING THE EFFICIENCY OF THE COGENERATION PROCESS

Values used for calculation of efficiency of cogeneration and primary energy savings shall be determined on the basis of the expected or actual operation of the unit under normal conditions of use.

(a) High-efficiency cogeneration U.K.

For the purpose of this Directive high-efficiency cogeneration shall fulfil the following criteria:

• cogeneration production from cogeneration units shall provide primary energy savings calculated according to point (b) of at least 10 % compared with the references for separate production of heat and electricity,

• production from small-scale and micro-cogeneration units providing primary energy savings may qualify as high-efficiency cogeneration.

(b) Calculation of primary energy savings U.K.

The amount of primary energy savings provided by cogeneration production defined in accordance with Annex I shall be calculated on the basis of the following formula:

Where:

• PES is primary energy savings.

• CHP Hη is the heat efficiency of the cogeneration production defined as annual useful heat output divided by the fuel input used to produce the sum of useful heat output and electricity from cogeneration.

• Ref Hη is the efficiency reference value for separate heat production.

• CHP Eη is the electrical efficiency of the cogeneration production defined as annual electricity from cogeneration divided by the fuel input used to produce the sum of useful heat output and electricity from cogeneration. Where a cogeneration unit generates mechanical energy, the annual electricity from cogeneration may be increased by an additional element representing the amount of electricity which is equivalent to that of mechanical energy. This additional element does not create a right to issue guarantees of origin in accordance with Article 14(10).

• Ref Eη is the efficiency reference value for separate electricity production.

(c) Calculations of energy savings using alternative calculation U.K.

Member States may calculate primary energy savings from a production of heat and electricity and mechanical energy as indicated below without applying Annex I to exclude the non-cogenerated heat and electricity parts of the same process. Such a production can be regarded as high-efficiency cogeneration provided it fulfils the efficiency criteria in point (a) of this Annex and, for cogeneration units with an electrical capacity larger than 25 MW, the overall efficiency is above 70 %. However, specification of the quantity of electricity from cogeneration produced in such a production, for issuing a guarantee of origin and for statistical purposes, shall be determined in accordance with Annex I.

If primary energy savings for a process are calculated using alternative calculation as indicated above the primary energy savings shall be calculated using the formula in point (b) of this Annex replacing: ‘CHP Hη’ with ‘Hη’ and ‘CHP Eη’ with ‘Eη’, where:

Hη shall mean the heat efficiency of the process, defined as the annual heat output divided by the fuel input used to produce the sum of heat output and electricity output.

Eη shall mean the electricity efficiency of the process, defined as the annual electricity output divided by the fuel input used to produce the sum of heat output and electricity output. Where a cogeneration unit generates mechanical energy, the annual electricity from cogeneration may be increased by an additional element representing the amount of electricity which is equivalent to that of mechanical energy. This additional element will not create a right to issue guarantees of origin in accordance with Article 14(10).

(d) Member States may use other reporting periods than one year for the purpose of the calculations according to points (b) and (c) of this Annex. U.K.

(e) For micro-cogeneration units the calculation of primary energy savings may be based on certified data. U.K.

(f) Efficiency reference values for separate production of heat and electricity U.K.

The harmonised efficiency reference values shall consist of a matrix of values differentiated by relevant factors, including year of construction and types of fuel, and must be based on a well-documented analysis taking, inter alia, into account data from operational use under realistic conditions, fuel mix and climate conditions as well as applied cogeneration technologies.

The efficiency reference values for separate production of heat and electricity in accordance with the formula set out in point (b) shall establish the operating efficiency of the separate heat and electricity production that cogeneration is intended to substitute.

The efficiency reference values shall be calculated according to the following principles:

1.

For cogeneration units the comparison with separate electricity production shall be based on the principle that the same fuel categories are compared.

2.

Each cogeneration unit shall be compared with the best available and economically justifiable technology for separate production of heat and electricity on the market in the year of construction of the cogeneration unit.

3.

The efficiency reference values for cogeneration units older than 10 years of age shall be fixed on the reference values of units of 10 years of age.

4.

The efficiency reference values for separate electricity production and heat production shall reflect the climatic differences between Member States.

ANNEX III U.K. ENERGY EFFICIENCY REQUIREMENTS FOR PURCHASING PRODUCTS, SERVICES AND BUILDINGS BY CENTRAL GOVERNMENT

Central governments that purchase products, services or buildings, insofar as this is consistent with cost-effectiveness, economical feasibility, wider sustainability, technical suitability, as well as sufficient competition, shall:

(a)

where a product is covered by a delegated act adopted under Directive 2010/30/EU or by a related Commission implementing directive, purchase only the products that comply with the criterion of belonging to the highest energy efficiency class possible in the light of the need to ensure sufficient competition;

(b)

where a product not covered under point (a) is covered by an implementing measure under Directive 2009/125/EC adopted after the entry into force of this Directive, purchase only products that comply with energy efficiency benchmarks specified in that implementing measure;

(c)

purchase office equipment products covered by Council Decision 2006/1005/EC of 18 December 2006 concerning conclusion of the Agreement between the Government of the United States of America and the European Community on the coordination of energy-efficiency labelling programmes for office equipment(2) that comply with energy efficiency requirements not less demanding than those listed in Annex C to the Agreement attached to that Decision;

(d)

purchase only tyres that comply with the criterion of having the highest fuel energy efficiency class, as defined by Regulation (EC) No 1222/2009 of the European Parliament and of the Council of 25 November 2009 on the labelling of tyres with respect to fuel efficiency and other essential parameters(3). This requirement shall not prevent public bodies from purchasing tyres with the highest wet grip class or external rolling noise class where justified by safety or public health reasons;

(e)

require in their tenders for service contracts that service providers use, for the purposes of providing the services in question, only products that comply with the requirements referred to in points (a) to (d), when providing the services in question. This requirement shall apply only to new products purchased by service providers partially or wholly for the purpose of providing the service in question;

(f)

purchase, or make new rental agreements for, only buildings that comply at least with the minimum energy performance requirements referred to in Article 5(1) unless the purpose of the purchase is:

(i)

to undertake deep renovation or demolition;

(ii)

in the case of public bodies, to re-sell the building without using it for public body’s own purposes; or

(iii)

to preserve it as a building officially protected as part of a designated environment, or because of its special architectural or historical merit.

Compliance with these requirements shall be verified by means of the energy performance certificates referred to in Article 11 of Directive 2010/31/EU.

ANNEX IV U.K.

ENERGY CONTENT OF SELECTED FUELS FOR END USE – CONVERSION TABLE (4) U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a 93 % methane.
b Member States may apply other values depending on the type of wood most used in the respective Member State.
c Applicable when energy savings are calculated in primary energy terms using a bottom-up approach based on final energy consumption. For savings in kWh electricity Member States may apply a default coefficient of 2,5. Member States may apply a different coefficient provided they can justify it.
Source: Eurostat.
Energy commodity	kJ (NCV)	kgoe (NCV)	kWh (NCV)
1 kg coke	28 500	0,676	7,917
1 kg hard coal	17 200 — 30 700	0,411 — 0,733	4,778 — 8,528
1 kg brown coal briquettes	20 000	0,478	5,556
1 kg black lignite	10 500 — 21 000	0,251 — 0,502	2,917 — 5,833
1 kg brown coal	5 600 — 10 500	0,134 — 0,251	1,556 — 2,917
1 kg oil shale	8 000 — 9 000	0,191 — 0,215	2,222 — 2,500
1 kg peat	7 800 — 13 800	0,186 — 0,330	2,167 — 3,833
1 kg peat briquettes	16 000 — 16 800	0,382 — 0,401	4,444 — 4,667
1 kg residual fuel oil (heavy oil)	40 000	0,955	11,111
1 kg light fuel oil	42 300	1,01	11,75
1 kg motor spirit (petrol)	44 000	1,051	12,222
1 kg paraffin	40 000	0,955	11,111
1 kg liquefied petroleum gas	46 000	1,099	12,778
1 kg natural gasa	47 200	1,126	13,1
1 kg liquefied natural gas	45 190	1,079	12,553
1 kg wood (25 % humidity)b	13 800	0,33	3,833
1 kg pellets/wood bricks	16 800	0,401	4,667
1 kg waste	7 400 — 10 700	0,177 — 0,256	2,056 — 2,972
1 MJ derived heat	1 000	0,024	0,278
1 kWh electrical energy	3 600	0,086	1c

ANNEX V U.K. Common methods and principles for calculating the impact of energy efficiency obligations schemes or other policy measures under Article 7(1), (2) and (9) and Article 20(6)

1. Methods for calculating energy savings for the purposes of Article 7(1) and (2), and points (b), (c), (d), (e) and (f) of the second subparagraph of Article 7(9), and Article 20(6). U.K.

Obligated, participating or entrusted parties, or implementing public authorities may use one or more of the following methods for calculating energy savings:

(a)

deemed savings, by reference to the results of previous independently monitored energy improvements in similar installations. The generic approach is termed ‘ex-ante’;

(b)

metered savings, whereby the savings from the installation of a measure, or package of measures, is determined by recording the actual reduction in energy use, taking due account of factors such as additionality, occupancy, production levels and the weather which may affect consumption. The generic approach is termed ‘ex-post’;

(c)

scaled savings, whereby engineering estimates of savings are used. This approach may only be used where establishing robust measured data for a specific installation is difficult or disproportionately expensive, e.g. replacing a compressor or electric motor with a different kWh rating than that for which independent information on savings has been measured, or where they are carried out on the basis of nationally established methodologies and benchmarks by qualified or accredited experts that are independent of the obligated, participating or entrusted parties involved;

(d)

surveyed savings, where consumers’ response to advice, information campaigns, labelling or certification schemes, or smart metering is determined. This approach may only be used for savings resulting from changes in consumer behaviour. It may not be used for savings resulting from the installation of physical measures.

2. In determining the energy saving for an energy efficiency measure for the purposes of Article 7(1) and (2), and points (b), (c), (d), (e) and (f) of the second subparagraph of Article 7(9), and Article 20(6) the following principles shall apply: U.K.

(a)

credit may only be given for savings exceeding the following levels:

(i)

Union emission performance standards for new passenger cars and new light commercial vehicles following the implementation of Regulation (EC) No 443/2009 of the European Parliament and of the Council of 23 April 2009 setting emission performance standards for new passenger cars as part of the Community’s integrated approach to reduce CO₂ emissions from light-duty vehicles(5) and Regulation (EU) No 510/2011 of the European Parliament and of the Council of 11 May 2011 setting emission performance standards for new light commercial vehicles as part of the Union’s integrated approach to reduce CO₂ emissions from light-duty vehicles(6), respectively;

(ii)

Union requirements relating to the removal from the market of certain energy related products following the implementation of implementing measures under Directive 2009/125/EC; and

(b)

to account for climatic variations between regions, Member States may choose to adjust the savings to a standard value or to accord different energy savings in accordance with the temperature variations between regions;

(c)

the activities of the obligated, participating or entrusted party must be demonstrably material to the achievement of the claimed savings;

(d)

savings from an individual action may not be claimed by more than one party;

(e)

calculation of energy savings shall take into account the lifetime of savings. This may be done by counting the savings each individual action will achieve between its implementation date and 31 December 2020. Alternatively, Member States may adopt another method that is estimated to achieve at least the same total quantity of savings. When using other methods, Member States shall ensure that the total amount of energy savings calculated with these other methods does not exceed the amount of energy savings that would have been the result of their calculation when counting the savings each individual action will achieve between its implementation date and 31 December 2020. Member States shall describe in detail in their first National Energy Efficiency Action Plan according to Annex XIV to this Directive, which other methods they have used and which provisions have been made to ensure this binding calculation requirement; and

(f)

actions by obligated, participating or entrusted parties, either individually or together, which aim to result in lasting transformation of products, equipment, or markets to a higher level of energy efficiency are permitted; and

(g)

in promoting the uptake of energy efficiency measures, Member States shall ensure that quality standards for products, services and installation of measures are maintained. Where such standards do not exist, Member States shall work with obligated, participating or entrusted parties to introduce them.

3. In determining the energy saving from policy measures applied under point (a) of the second subparagraph of Article 7(9), the following principles shall apply: U.K.

(a)

credit shall only be given for energy savings from taxation measures exceeding the minimum levels of taxation applicable to fuels as required in Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity(7) or in Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax(8);

(b)

recent and representative official data on price elasticities shall be used for calculation of the impact; and

(c)

the energy savings from accompanying taxation policy instruments, including fiscal incentives or payment to a fund, shall be accounted separately.

4. Notification of methodology U.K.

Member States shall by 5 December 2013 notify the Commission of their proposed detailed methodology for operation of the energy efficiency obligation schemes and for the purposes of Article 7(9) and Article 20(6). Except in the case of taxes, such notification shall include details of:

(a)

obligated, participating or entrusted parties, or implementing public authorities;

(b)

target sectors;

(c)

the level of the energy saving target or expected savings to be achieved over the whole and intermediate periods;

(d)

the duration of the obligation period and intermediate periods;

(e)

eligible measure categories;

(f)

calculation methodology, including how additionality and materiality are to be determined and which methodologies and benchmarks are used for engineering estimates;

(g)

lifetimes of measures;

(h)

approach taken to address climatic variations within the Member State;

(i)

quality standards;

(j)

monitoring and verification protocols and how the independence of these from the obligated, participating or entrusted parties is ensured;

(k)

audit protocols; and

(l)

how the need to fulfil the requirement in the second subparagraph of Article 7(1) is taken into account.

In the case of taxes, the notification shall include details of:

(a)

target sectors and segment of taxpayers;

(b)

implementing public authority;

(c)

expected savings to be achieved;

(d)

duration of the taxation measure and intermediate periods; and

(e)

calculation methodology, including which price elasticities are used.

ANNEX VI U.K. Minimum criteria for energy audits including those carried out as part of energy management systems

The energy audits referred to in Article 8 shall be based on the following guidelines:

(a)

be based on up-to-date, measured, traceable operational data on energy consumption and (for electricity) load profiles;

(b)

comprise a detailed review of the energy consumption profile of buildings or groups of buildings, industrial operations or installations, including transportation;

(c)

build, whenever possible, on life-cycle cost analysis (LCCA) instead of Simple Payback Periods (SPP) in order to take account of long-term savings, residual values of long-term investments and discount rates;

(d)

be proportionate, and sufficiently representative to permit the drawing of a reliable picture of overall energy performance and the reliable identification of the most significant opportunities for improvement.

Energy audits shall allow detailed and validated calculations for the proposed measures so as to provide clear information on potential savings.

The data used in energy audits shall be storable for historical analysis and tracking performance.

ANNEX VII U.K. Minimum requirements for billing and billing information based on actual consumption

1. Minimum requirements for billing U.K.

1.1. Billing based on actual consumption U.K.

In order to enable final customers to regulate their own energy consumption, billing should take place on the basis of actual consumption at least once a year, and billing information should be made available at least quarterly, on request or where the consumers have opted to receive electronic billing or else twice yearly. Gas used only for cooking purposes may be exempted from this requirement.

1.2. Minimum information contained in the bill U.K.

Member States shall ensure that, where appropriate, the following information is made available to final customers in clear and understandable terms in or with their bills, contracts, transactions, and receipts at distribution stations:

(a)

current actual prices and actual consumption of energy;

(b)

comparisons of the final customer’s current energy consumption with consumption for the same period in the previous year, preferably in graphic form;

(c)

contact information for final customers’ organisations, energy agencies or similar bodies, including website addresses, from which information may be obtained on available energy efficiency improvement measures, comparative end-user profiles and objective technical specifications for energy-using equipment.

In addition, wherever possible and useful, Member States shall ensure that comparisons with an average normalised or benchmarked final customer in the same user category are made available to final customers in clear and understandable terms, in, with or signposted to within, their bills, contracts, transactions, and receipts at distribution stations.

1.3. Advice on energy efficiency accompanying bills and other feedback to final customers U.K.

When sending contracts and contract changes, and in the bills customers receive or through websites addressing individual customers, energy distributors, distribution system operators and retail energy sales companies shall inform their customers in a clear and understandable manner of contact information for independent consumer advice centres, energy agencies or similar institutions, including their internet addresses, where they can obtain advice on available energy efficiency measures, benchmark profiles for their energy consumption and technical specifications of energy using appliances that can serve to reduce the consumption of these appliances.

ANNEX VIII U.K. Potential for efficiency in heating and cooling

1. The comprehensive assessment of national heating and cooling potentials referred to in Article 14(1) shall include: U.K.

(a)

a description of heating and cooling demand;

(b)

a forecast of how this demand will change in the next 10 years, taking into account in particular the evolution of demand in buildings and the different sectors of industry;

(c)

a map of the national territory, identifying, while preserving commercially sensitive information:

(i)

heating and cooling demand points, including:

• municipalities and conurbations with a plot ratio of at least 0,3, and

• industrial zones with a total annual heating and cooling consumption of more than 20 GWh;

(ii)

existing and planned district heating and cooling infrastructure;

(iii)

potential heating and cooling supply points, including:

• electricity generation installations with a total annual electricity production of more than 20 GWh, and

• waste incineration plants,

• existing and planned cogeneration installations using technologies referred to in Part II of Annex I, and district heating installations;

(d)

identification of the heating and cooling demand that could be satisfied by high-efficiency cogeneration, including residential micro-cogeneration, and by district heating and cooling;

(e)

identification of the potential for additional high-efficiency cogeneration, including from the refurbishment of existing and the construction of new generation and industrial installations or other facilities generating waste heat;

(f)

identification of energy efficiency potentials of district heating and cooling infrastructure;

(g)

strategies, policies and measures that may be adopted up to 2020 and up to 2030 to realise the potential in point (e) in order to meet the demand in point (d), including, where appropriate, proposals to:

(i)

increase the share of cogeneration in heating and cooling production and in electricity production;

(ii)

develop efficient district heating and cooling infrastructure to accommodate the development of high-efficiency cogeneration and the use of heating and cooling from waste heat and renewable energy sources;

(iii)

encourage new thermal electricity generation installations and industrial plants producing waste heat to be located in sites where a maximum amount of the available waste heat will be recovered to meet existing or forecasted heat and cooling demand;

(iv)

encourage new residential zones or new industrial plants which consume heat in their production processes to be located where available waste heat, as identified in the comprehensive assessment, can contribute to meeting their heat and cooling demands. This could include proposals that support the clustering of a number of individual installations in the same location with a view to ensuring an optimal matching between demand and supply for heat and cooling;

(v)

encourage thermal electricity generating installations, industrial plants producing waste heat, waste incineration plants and other waste-to-energy plants to be connected to the local district heating or cooling network;

(vi)

encourage residential zones and industrial plants which consume heat in their production processes to be connected to the local district heating or cooling network;

(h)

the share of high-efficiency cogeneration and the potential established and progress achieved under Directive 2004/8/EC;

(i)

an estimate of the primary energy to be saved;

(j)

an estimate of public support measures to heating and cooling, if any, with the annual budget and identification of the potential aid element. This does not prejudge a separate notification of the public support schemes for a State aid assessment.

2. To the extent appropriate, the comprehensive assessment may be made up of an assembly of regional or local plans and strategies. U.K.

ANNEX IX U.K. COST-BENEFIT ANALYSIS

Part 1 U.K. General principles of the cost-benefit analysis

The purpose of preparing cost-benefit analyses in relation to measures for promoting efficiency in heating and cooling as referred to in Article 14(3) is to provide a decision base for qualified prioritisation of limited resources at society level.

The cost-benefit analysis may either cover a project assessment or a group of projects for a broader local, regional or national assessment in order to establish the most cost-effective and beneficial heating or cooling option for a given geographical area for the purpose of heat planning.

Cost-benefit analyses for the purposes of Article 14(3) shall include an economic analysis covering socio-economic and environmental factors.

The cost-benefit analyses shall include the following steps and considerations:

(a)

Establishing a system boundary and geographical boundary

The scope of the cost-benefit analyses in question determines the relevant energy system. The geographical boundary shall cover a suitable well-defined geographical area, e.g. a given region or metropolitan area, to avoid selecting sub-optimised solutions on a project by project basis.

(b)

Integrated approach to demand and supply options

The cost-benefit analysis shall take into account all relevant supply resources available within the system and geographical boundary, using the data available, including waste heat from electricity generation and industrial installations and renewable energy, and the characteristics of, and trends in heat and cooling demand.

(c)

Constructing a baseline

The purpose of the baseline is to serve as a reference point, to which the alternative scenarios are evaluated.

(d)

Identifying alternative scenarios

All relevant alternatives to the baseline shall be considered. Scenarios that are not feasible due to technical reasons, financial reasons, national regulation or time constraints may be excluded at an early stage of the cost-benefit analysis if justified based on careful, explicit and well-documented considerations.

Only high-efficiency cogeneration, efficient district heating and cooling or efficient individual heating and cooling supply options should be taken into account in the cost-benefit analysis as alternative scenarios compared to the baseline.

(e)

Method for the calculation of cost-benefit surplus

(i)

The total long-term costs and benefits of heat or cooling supply options shall be assessed and compared.

(ii)

The criterion for evaluation shall be the net present value (NPV) criterion.

(iii)

The time horizon shall be chosen such that all relevant costs and benefits of the scenarios are included. For example, for a gas-fired power plant an appropriate time horizon could be 25 years, for a district heating system, 30 years, or for heating equipment such as boilers 20 years.

(f)

Calculation and forecast of prices and other assumptions for the economic analysis

(i)

Member States shall provide assumptions, for the purpose of the cost-benefit analyses, on the prices of major input and output factors and the discount rate.

(ii)

The discount rate used in the economic analysis for the calculation of net present value shall be chosen according to European or national guidelines(9).

(iii)

Member States shall use national, European or international energy price development forecasts if appropriate in their national and/or regional/local context.

(iv)

The prices used in the economic analysis shall reflect the true socio economic costs and benefits and should include external costs, such as environmental and health effects, to the extent possible, i.e. when a market price exists or when it is already included in European or national regulation.

(g)

Economic analysis: Inventory of effects

The economic analyses shall take into account all relevant economic effects.

Member States may assess and take into account in decision making costs and energy savings from the increased flexibility in energy supply and from a more optimal operation of the electricity networks, including avoided costs and savings from reduced infrastructure investment, in the analysed scenarios.

The costs and benefits taken into account shall include at least the following:

(i)

Benefits

• Value of output to the consumer (heat and electricity)

• External benefits such as environmental and health benefits, to the extent possible

(ii)

Costs

• Capital costs of plants and equipments

• Capital costs of the associated energy networks

• Variable and fixed operating costs

• Energy costs

• Environmental and health cost, to the extent possible

(h)

Sensitivity analysis:

A sensitivity analysis shall be included to assess the costs and benefits of a project or group of projects based on different energy prices, discount rates and other variable factors having a significant impact on the outcome of the calculations.

The Member States shall designate the competent authorities responsible for carrying out the cost-benefit analyses under Article 14. Member States may require competent local, regional and national authorities or operators of individual installations to carry out the economic and financial analysis. They shall provide the detailed methodologies and assumptions in accordance with this Annex and establish and make public the procedures for the economic analysis.

Part 2 U.K. Principles for the purpose of Article 14(5) and (7)

The cost-benefit analyses shall provide information for the purpose of the measures in Article 14(5) and (7):

If an electricity-only installation or an installation without heat recovery is planned, a comparison shall be made between the planned installations or the planned refurbishment and an equivalent installation producing the same amount of electricity or process heat, but recovering the waste heat and supplying heat through high-efficiency cogeneration and/or district heating and cooling networks.

Within a given geographical boundary the assessment shall take into account the planned installation and any appropriate existing or potential heat demand points that could be supplied from it, taking into account rational possibilities (for example, technical feasibility and distance).

The system boundary shall be set to include the planned installation and the heat loads, such as building(s) and industrial process. Within this system boundary the total cost of providing heat and power shall be determined for both cases and compared.

Heat loads shall include existing heat loads, such as an industrial installation or an existing district heating system, and also, in urban areas, the heat load and costs that would exist if a group of buildings or part of a city were provided with and/or connected into a new district heating network.

The cost-benefit analysis shall be based on a description of the planned installation and the comparison installation(s), covering electrical and thermal capacity, as applicable, fuel type, planned usage and the number of planned operating hours annually, location and electricity and thermal demand.

For the purpose of the comparison, the thermal energy demand and the types of heating and cooling used by the nearby heat demand points shall be taken into account. The comparison shall cover infrastructure related costs for the planned and comparison installation.

Cost-benefit analyses for the purposes of Article 14(5) shall include an economic analysis covering a financial analysis reflecting actual cash flow transactions from investing in and operating individual installations.

Projects with positive cost-benefit outcome are those where the sum of discounted benefits in the economic and financial analysis exceeds the sum of discounted costs (cost-benefit surplus).

Member States shall set guiding principles for the methodology, assumptions and time horizon for the economic analysis.

Member States may require that the companies responsible for the operation of thermal electric generation installations, industrial companies, district heating and cooling networks, or other parties influenced by the defined system boundary and geographical boundary, contribute data for use in assessing the costs and benefits of an individual installation.

ANNEX X U.K. Guarantee of origin for electricity produced from high-efficiency cogeneration

(a)

Member States shall take measures to ensure that:

(i)

the guarantee of origin of the electricity produced from high-efficiency cogeneration:

• enable producers to demonstrate that the electricity they sell is produced from high-efficiency cogeneration and is issued to this effect in response to a request from the producer,

• is accurate, reliable and fraud-resistant,

• is issued, transferred and cancelled electronically;

(ii)

the same unit of energy from high-efficiency cogeneration is taken into account only once.

(b)

The guarantee of origin referred to in Article 14(10) shall contain at least the following information:

(i)

the identity, location, type and capacity (thermal and electrical) of the installation where the energy was produced;

(ii)

the dates and places of production;

(iii)

the lower calorific value of the fuel source from which the electricity was produced;

(iv)

the quantity and the use of the heat generated together with the electricity;

(v)

the quantity of electricity from high-efficiency cogeneration in accordance with Annex II that the guarantee represents;

(vi)

the primary energy savings calculated in accordance with Annex II based on the harmonised efficiency reference values indicated in point (f) of Annex II;

(vii)

the nominal electric and thermal efficiency of the plant;

(viii)

whether and to what extent the installation has benefited from investment support;

(ix)

whether and to what extent the unit of energy has benefited in any other way from a national support scheme, and the type of support scheme;

(x)

the date on which the installation became operational; and

(xi)

the date and country of issue and a unique identification number.

The guarantee of origin shall be of the standard size of 1 MWh. It shall relate to the net electricity output measured at the station boundary and exported to the grid.

ANNEX XI U.K. Energy efficiency criteria for energy network regulation and for electricity network tariffs

1. Network tariffs shall be cost-reflective of cost-savings in networks achieved from demand-side and demand- response measures and distributed generation, including savings from lowering the cost of delivery or of network investment and a more optimal operation of the network. U.K.

2. Network regulation and tariffs shall not prevent network operators or energy retailers making available system services for demand response measures, demand management and distributed generation on organised electricity markets, in particular: U.K.

(a)

the shifting of the load from peak to off-peak times by final customers taking into account the availability of renewable energy, energy from cogeneration and distributed generation;

(b)

energy savings from demand response of distributed consumers by energy aggregators;

(c)

demand reduction from energy efficiency measures undertaken by energy service providers, including energy service companies;

(d)

the connection and dispatch of generation sources at lower voltage levels;

(e)

the connection of generation sources from closer location to the consumption; and

(f)

the storage of energy.

For the purposes of this provision the term ‘organised electricity markets’ shall include over-the-counter markets and electricity exchanges for trading energy, capacity, balancing and ancillary services in all timeframes, including forward, day-ahead and intra-day markets.

3. Network or retail tariffs may support dynamic pricing for demand response measures by final customers, such as: U.K.

(a)

time-of-use tariffs;

(b)

critical peak pricing;

(c)

real time pricing; and

(d)

peak time rebates.

ANNEX XII U.K. ENERGY EFFICIENCY REQUIREMENTS FOR TRANSMISSION SYSTEM OPERATORS AND DISTRIBUTION SYSTEM OPERATORS

Transmission system operators and distribution system operators shall:

(a)

set up and make public their standard rules relating to the bearing and sharing of costs of technical adaptations, such as grid connections and grid reinforcements, improved operation of the grid and rules on the non-discriminatory implementation of the grid codes, which are necessary in order to integrate new producers feeding electricity produced from high-efficiency cogeneration into the interconnected grid;

(b)

provide any new producer of electricity produced from high-efficiency cogeneration wishing to be connected to the system with the comprehensive and necessary information required, including:

(i)

a comprehensive and detailed estimate of the costs associated with the connection;

(ii)

a reasonable and precise timetable for receiving and processing the request for grid connection;

(iii)

a reasonable indicative timetable for any proposed grid connection. The overall process to become connected to the grid should be no longer than 24 months, bearing in mind what is reasonably practicable and non-discriminatory;

(c)

provide standardised and simplified procedures for the connection of distributed high-efficiency cogeneration producers to facilitate their connection to the grid.

The standard rules referred to in point (a) shall be based on objective, transparent and non-discriminatory criteria taking particular account of all the costs and benefits associated with the connection of those producers to the grid. They may provide for different types of connection.

ANNEX XIII U.K. Minimum items to be included in energy performance contracts with the public sector or in the associated tender specifications

• Clear and transparent list of the efficiency measures to be implemented or the efficiency results to be obtained.

• Guaranteed savings to be achieved by implementing the measures of the contract.

• Duration and milestones of the contract, terms and period of notice.

• Clear and transparent list of the obligations of each contracting party.

• Reference date(s) to establish achieved savings.

• Clear and transparent list of steps to be performed to implement a measure or package of measures and, where relevant, associated costs.

• Obligation to fully implement the measures in the contract and documentation of all changes made during the project.

• Regulations specifying the inclusion of equivalent requirements in any subcontracting with third parties.

• Clear and transparent display of financial implications of the project and distribution of the share of both parties in the monetary savings achieved (i.e. remuneration of the service provider).

• Clear and transparent provisions on measurement and verification of the guaranteed savings achieved, quality checks and guarantees.

• Provisions clarifying the procedure to deal with changing framework conditions that affect the content and the outcome of the contract (i.e. changing energy prices, use intensity of an installation).

• Detailed information on the obligations of each of the contracting party and of the penalties for their breach.

ANNEX XIV U.K. GENERAL FRAMEWORK FOR REPORTING

Part 1 U.K. General framework for annual reports

The annual reports referred to in Article 24(1) provide a basis for the monitoring of the progress towards national 2020 targets. Member States shall ensure that the reports include the following minimum information:

(a)

an estimate of following indicators in the year before last (year X(10) - 2):

(i)

primary energy consumption;

(ii)

total final energy consumption;

(iii)

final energy consumption by sector

• industry

• transport (split between passenger and freight transport, if available)

• households

• services;

(iv)

gross value added by sector

• industry

• services;

(v)

disposable income of households;

(vi)

gross domestic product (GDP);

(vii)

electricity generation from thermal power generation;

(viii)

electricity generation from combined heat and power;

(ix)

heat generation from thermal power generation;

(x)

heat generation from combined heat and power plants, including industrial waste heat;

(xi)

fuel input for thermal power generation;

(xii)

passenger kilometres (pkm), if available;

(xiii)

tonne kilometres (tkm), if available;

(xiv)

combined transport kilometres (pkm + tkm), in case (xii) and (xiii) are not available;

(xv)

population.

In sectors where energy consumption remains stable or is growing, Member States shall analyse the reasons for it and attach their appraisal to the estimates.

The second and subsequent reports shall also include points (b) to (e):

(b)

updates on major legislative and non-legislative measures implemented in the previous year which contribute towards the overall national energy efficiency targets for 2020;

(c)

the total building floor area of the buildings with a total useful floor area over 500 m² and as of 9 July 2015 over 250 m² owned and occupied by the Member States’ central government that, on 1 January of the year in which the report is due, did not meet the energy performance requirements referred to in Article 5(1);

(d)

the total building floor area of heated and/or cooled buildings owned and occupied by the Member States’ central government that was renovated in the previous year referred to in Article 5(1) or the amount of energy savings in eligible buildings owned and occupied by their central government as referred to in Article 5(6);

(e)

energy savings achieved through the national energy efficiency obligation schemes referred to in Article 7(1) or the alternative measures adopted in application of Article 7(9).

The first report shall also include the national target referred to in Article 3(1).

In the annual reports referred to in Article 24(1) Member States may also include additional national targets. These may be related in particular to the statistical indicators enumerated in point (a) of this Part or combinations thereof, such as primary or final energy intensity or sectoral energy intensities.

Part 2 U.K. General framework for National Energy Efficiency Action Plans

National Energy Efficiency Action Plans referred to in Article 24(2) shall provide a framework for the development of national energy efficiency strategies.

The National Energy Efficiency Action Plans shall cover significant energy efficiency improvement measures and expected/achieved energy savings, including those in the supply, transmission and distribution of energy as well as energy end-use. Member States shall ensure that the National Energy Efficiency Action Plans include the following minimum information:

1.

Targets and strategies

• the indicative national energy efficiency target for 2020 as required by Article 3(1),

• the national indicative energy savings target set in Article 4(1) of Directive 2006/32/EC,

• other existing energy efficiency targets addressing the whole economy or specific sectors.

2.

Measures and energy savings

The National Energy Efficiency Action Plans shall provide information on measures adopted or planned to be adopted in view of implementing the main elements of this Directive and on their related savings.

(a)

Primary energy savings

The National Energy Efficiency Action Plans shall list significant measures and actions taken towards primary energy saving in all sectors of the economy. For every measure or package of measures/actions estimations of expected savings for 2020 and savings achieved by the time of the reporting shall be provided.

Where available, information on other impacts/benefits of the measures (greenhouse gas emissions reduction, improved air quality, job creation, etc.) and the budget for the implementation should be provided.

(b)

Final energy savings

The first and second National Energy Efficiency Action Plans shall include the results with regard to the fulfilment of the final energy savings target set out in Article 4(1) and (2) of the Directive 2006/32/EC. If calculation/estimation of savings per measure is not available, sector level energy reduction shall be shown due to (the combination) of measures.

The first and second National Energy Efficiency Action Plans shall also include the measurement and/or calculation methodology used for calculating the energy savings. If the ‘recommended methodology’(11) is applied, the National Energy Efficiency Action Plan should provide references to this.

3.

Specific information related to this Directive

3.1.

Public bodies (Article 5)

National Energy Efficiency Action Plans shall include the list of public bodies having developed an energy efficiency plan in accordance with Article 5(7).

3.2.

Energy efficiency obligations (Article 7)

National Energy Efficiency Action Plans shall include the national coefficients chosen in accordance with Annex IV.

The first National Energy Efficiency Action Plan shall include a short description of the national scheme referred to in Article 7(1) or the alternative measures adopted in application of Article 7(9).

3.3.

Energy audits and management systems (Article 8)

National Energy Efficiency Action Plans shall include:

(a)

the number of energy audits carried out in the previous period;

(b)

the number of energy audits carried out in large enterprises in the previous period;

(c)

the number of large companies in their territory, with an indication of the number of those to which Article 8(5) is applicable.

3.4.

Promotion of efficient heating and cooling (Article 14)

National Energy Efficiency Action Plans shall include an assessment of the progress achieved in implementing the comprehensive assessment referred to in Article 14(1).

3.5.

Energy transmission and distribution (Article 15)

The first National Energy Efficiency Action Plan and the subsequent reports due every 10 years thereafter shall include the assessment made, the measures and investments identified to utilise the energy efficiency potentials of gas and electricity infrastructure referred to in Article 15(2).

3.6.

Member States shall report, as part of their National Energy Efficiency Action Plans, on the measures undertaken to enable and develop demand response as referred to in Article 15.

3.7.

Availability of qualification, accreditation and certification schemes (Article 16)

National Energy Efficiency Action Plans shall include information on the available qualification, accreditation and certification schemes or equivalent qualification schemes for the providers of energy services, energy audits and energy efficiency improvement measures.

3.8.

Energy Services (Article 18)

National Energy Efficiency Action Plans shall include an internet link to the website where the list or the interface of energy services providers referred to in point (c) of Article 18(1) can be accessible.

3.9.

Other measures to promote energy efficiency (Article 19)

The first National Energy Efficiency Action Plan shall include a list of the measures referred to in Article 19(1).

ANNEX XV U.K.

Correlation table

Directive 2004/8/EC	This Directive
Article 1	Article 1(1)
Article 2	Article 1(1)
Article 3, point (a)	Article 2, point (30)
Article 3, point (b)	Article 2, point (32)
Article 3, point (c)	Article 2, point (31)
Article 3, point (d)	Article 2, point (33)
Article 3, points (e) and (f)	—
Article 3, point (g)	Article 2, point (35)
Article 3, point (h)	—
Article 3, point (i)	Article 2, point (34)
Article 3, point (j)	—
Article 3, point (k)	Article 2, point (36)
Article 3, point (l)	Article 2, point (37)
Article 3, point (m)	Article 2, point (39)
Article 3, point (n)	Article 2, point (38)
Article 3, point (o)	—
—	Article 2, points (40), (41), (42), (43), and (44)
Article 4(1)	Annex II, point (f), first subpoint
Article 4(2)	Article 14(10), second subparagraph
Article 4(3)	—
Article 5	Article 14(10), first subparagraph and Annex X
Article 6	Article 14(1) and (3), Annex VIII and IX
Article 7(1)	Article 14(11)
Article 7(2) and (3)	—
Article 8	Article 15(5)
—	Article 15(6), (7), (8) and (9)
Article 9	—
Article 10(1) and (2)	Article 14(1) and 24(2), Annex XIV, Part 2
Article 10(3)	Article 24(6)
Article 11	Article 24(3)
—	Article 24(5)
Article 12(1) and (3)	—
Article 12(2)	Annex II, point (c)
Article 13	Article 22(2)
Article 14	—
Article 15	Article 28
Article 16	—
Article 17	Article 29
Article 18	Article 30
Annex I	Annex I, Part II
Annex II	Annex I, Part I and Part II, last subparagraph
Annex III	Annex II
Annex IV	Annex VIII
—	Annex IX

Directive 2006/32/EC	This Directive
Article 1	Article 1(1)
Article 2	Article 1(1)
Article 3, point (a)	Article 2, point (1)
Article 3, point (b)	Article 2, point (4)
Article 3, point (c)	Article 2, point (6)
Article 3, point (d)	Article 2, point (5)
—	Article 2, points (2) and (3)
Article 3, point (e)	Article 2, point (7)
Article 3, points (f), (g), (h) and (i)	—
—	Article 2, points (8) to (19)
Article 3, point (j)	Article 2, point (27)
—	Article 2, point (28)
Article 3, point (k)	—
Article 3, point (l)	Article 2, point (25)
—	Article 2, point (26)
Article 3, point (m)	—
Article 3, point (n)	Article 2, point (23)
Article 3, point (o)	Article 2, point (20)
Article 3, point (p)	Article 2, point (21)
Article 3, point (q)	Article 2, point (22)
Article 3, points (r) and (s)	—
—	Article 2, points (24), (29), (44) and (45)
—	Article 3
—	Article 4
Article 4	—
Article 5	Articles 5 and 6
Article 6(1)(a)	Article 7(8), points (a) and (b)
Article 6(1)(b)	Article 18(3)
Article 6(2)	Article 7(1), (5), (6), (7), (9), (10), (11) and (12)
—	Article 7(2) and (3)
Article 6(3)	Article 18(2), points (b) and (c)
Article 6(5)	—
Article 7	Article 17
Article 8	Article 16(1)
—	Article 16(2) and (3)
Article 9(1)	Article 19
Article 9(2)	Article 18(1), point (d), subpoint (i)
—	Article 18(1), points (a), (b), (c), (d), subpoint (ii), and (e)
Article 10(1)	Article 15(4)
Article 10(2)	Article 15(3)
—	Article 15(7), (8) and (9)
Article 11	Article 20
Article 12(1)	Article 8(1)
Article 12(2)	—
—	Article 8(2), (3), (4), (5), (6) and (7)
Article 12(3)	—
Article 13(1)	Article 9
Article 13(2)	Article 10 and Annex VII, point 1.1
Article 13(3)	Annex VII, points 1.2 and 1.3
—	Article 11
—	Article 12
—	Article 13
—	Article 15(1) and (2)
—	Article 18(2), points (a) and (d)
—	Article 21
Article 14(1) and (2)	Article 24(1) and (2)
Article 14(3)	—
Article 14(4) and (5)	Article 24(3)
—	Article 24(4) and (7) to (11)
—	Article 22(1)
Article 15(1)	Article 22(2)
Article 15(2), (3) and (4)	—
—	Article 23
—	Article 25
Article 16	Article 26
Article 17	Article 27
Article 18	Article 28
Article 19	Article 29
Article 20	Article 30
Annex I	—
Annex II	Annex IV
Annex III	—
Annex IV	—
Annex V	—
Annex VI	Annex III
—	Annex V
—	Annex VI
—	Annex VII
—	Annex XI
—	Annex XII
—	Annex XIII
—	Annex XIV
—	Annex XV

(1)

OJ L 338, 17.12.2008, p. 55.

(2)

OJ L 381, 28.12.2006, p. 24.

(3)

OJ L 342, 22.12.2009, p. 46.

(4)

Member States may apply different conversion factors if these can be justified.

(5)

OJ L 140, 5.6.2009, p. 1.

(6)

OJ L 145, 31.5.2011, p. 1.

(7)

OJ L 283, 31.10.2003, p. 51.

(8)

OJ L 347, 11.12.2006, p. 1.

(9)

The national discount rate chosen for the purpose of economic analysis should take into account data provided by the European Central Bank.

(10)

X = current year.

(11)

Recommendations on Measurement and Verification Methods in the framework of the Directive 2006/32/EC on Energy End-Use Efficiency and Energy Services.