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Energy Saving Policies and Energy Efficiency Obligation Schemes (ENSPOL)

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The ENSPOL project’s main aim is to support Member States (MS) in implementing the Energy Efficiency Directive (EED). In particular it aims to support MS which intend to set up new Energy Efficiency Obligation (EEO) schemes (Austria, Bulgaria and Greece) or which intend to implement alternative measures (The Netherlands) that could create synergies with a future EEO scheme. The project will also strive to inform the on-going development of existing EEO schemes (Belgium, Denmark, France, Italy, Poland, UK), and support MS with an existing EEO scheme in the improvement thereof, learning from and building on existing experience.The specific objectives of ENSPOL are to:1. Assess the relative strengths and weaknesses of EEO schemes and alternative measures based on the existing experience and plans of MS, as well as to make recommendations for the most appropriate approach against different criteria and under different conditions.2. Improve the knowledge and capabilities of MS (both within and outside the project) with regards to the different options available for the implementation of EED Article 7 (EEOs and alternative measures).3. Ensure the effective engagement of a broad range of stakeholders with an interest in the implementation of EED Article 7, as well as to promote a wide consultation.4. Complement and enhance the work of existing EU and MS initiatives concerned with the implementation of EED Article 7. 

Results

The most important results that will be achieved in ENSPOL are the following:1) Creation of favourable conditions for improved implementation of Article 7 of the EED in the project partner countries, leading to robust new schemes and /or alternative measures.2) Enhancement and strengthening of the existing schemes and / or alternative policies in partner countries.3) Improved knowledge and capabilities of MS outside the project consortium with the guidance developed taken into account when designing and implementing new schemes and / or alternative measures for the implementation of Article 7.4) Ensure the effective engagement of the wide range of stakeholders with an interest in the implementation of Article 7 and promote broad consultation. 
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Lessons learned

1) Our analysis of existing EEO schemes indicates that redesigning of the scheme is necessary to improve the effectiveness thereof and to adapt to a changing market. Most schemes have grown incrementally and steadily in scale. Besides the savings target, the number of obligated parties (and linked markets) have grown over time. Most schemes focused so far on the buildings sector, promoting low-cost measures like roof insulation. When the aim is to have a scheme with many active parties, rules need to be kept simple, transparent and easy to understand.2) Most cited barriers impeding implementation of alternative measures in compliance with Article 7 requirements are: Insufficient fundability from end users, ESCOs and difficulty in access to finance; Past energy efficiency market activity focused on low hanging-fruit (i.e. the rapid implementation of measures with short payback periods); High public cost associated with fiscal measures; Low technical capability of municipalities' and banks’ technical staff; Lack of awareness and motivation from public entities and households for participation.3) EEOs are a proven and effective route to delivering incentives for proven, low cost, mass-market measures. Most countries have decided that alternative policies outside the remit of utilities are necessary to meet their energy savings target. Both EEOs and other approaches can provide user incentives. Their relative roles require further analysis.
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