Signatories of this letter welcome the Clean Energy Package as the means to set in place new rules for a consumer-centred European energy system, by implementing the three stated EU objectives: putting energy efficiency first, achieving global leadership in renewable energies and providing a fair deal for consumers.
Demand side flexibility is a resource that not only benefits and empowers individual consumers, both private and professional, but also reduces total system costs, facilitates renewables integration and contributes to building Europe’s smart energy leadership.
This remarkable resource however suffers from important market failures that the ‘Clean energy for all Europeans’ package attempts to address. Signatories of this letter, all strong advocates for demand side flexibility, urge you to include the necessary proposals to develop demand side flexibility in the final legislation, and ensure consistent enforcement through thorough planning and reporting obligations in the Governance regulation report.
The stakes are high. Not delivering Europe’s demand side flexibility potential risks affecting Europe’s competitiveness, undermining its decarbonisation efforts, undermining its benefits for consumers and jobs and growth opportunities for Europe as a whole.
The following points highlight key steps necessary to develop demand side flexibility by creating functioning wholesale energy markets; opening markets to consumers and third parties; and remunerating demand side flexibility fairly.
1. Creating functioning wholesale energy markets
The electricity directive and regulation can significantly contribute to establishing well-functioning energy markets that reflect the availability or scarcity of supply and the adequacy of the network. In particular,
• Reform short-term markets functioning to help increase the overall flexibility of the power system (Electricity Regulation Chapter 2).
• Harmonise features of intraday and balancing markets to encourage trading of energy across borders, and as close as possible to the time of delivery (Electricity Regulation, Articles 5 and 7).
• Tackle overcapacity of generation to re-establish long term price signals for investors and minimise the risks that capacity mechanisms create for the development of efficient wholesale markets, as well as consumer empowerment, demand response and the deployment of innovative low carbon and energy efficiency technologies. The best way to minimise such risks is to:
o Only implement capacity mechanisms as a last resort, when proven strictly necessary by a European adequacy assessment which factors in the contribution of renewables, self-consumption and on-site generation (including cogeneration) and assesses flexibility needs (Electricity Regulation, Article 18).
o Ensure capacity mechanisms are open to all resources such as energy efficiency, demand response, storage, all generation technologies, and cross border capacity (to add to Electricity Regulation, Article 23).
o Review the need for capacity mechanisms regularly:
- So as to ensure consistency between procurement of capacity and the size of the adequacy concerns (to add to Electricity Regulation, Article 23) on the basis of the latest European resource adequacy assessment
- So as to ensure consistency with the overall competitiveness and decarbonisation objectives
o Ensure that the duration of the capacity contract is short enough to correspond to the regular reviews.
o Require Transmission System Operators (TSOs) to report on redispatch and countertrading measures they undertake, including underlying costs, and the level of effectiveness and openness of market-based curtailment or re-dispatching mechanisms to all energy resources. In turn, the creation of liquid and efficient markets and the deployment of demand side flexibility resources will reduce the need for additional measures to guarantee system adequacy.
2. Ensuring market access for consumers and third parties
Rules must be established and enforced so that demand-side resources have unhindered access to all energy markets (wholesale, balancing, ancillary services) in all timeframes, including through product requirements fit for supply and demand-side resources alike. This also means direct market access for consumers and new market entrants, including third party aggregators and ESCOs.
• Give consumers the right to participate in energy markets with dynamic price contracts. This includes providing customers information on actual time of use at near real time and the right to respond to price signals, as well giving consumers the right to sell flexibility independently of any contractual arrangements to procure energy, directly or through an (independent) aggregator. Smart metering is a pre-requisite as the certified basis for billing consumer using multiple tariffs for market-based pricing. It also forms the foundation for the development of additional consumer services (Electricity Directive, Articles 11, 17, 20, 21).
• Enable fair market access for Demand Response and service providers. Deployment of demand side flexibility has so far been impeded by outdated market rules, insufficient market access for service providers and ineffective price signals. Demand response should have non-discriminatory access to all markets (Electricity Regulation, Articles 1, 3, 4, 5, 6, 7, 11, 12, Electricity Directive, Articles: 3, 15, 16, 17) and Demand Response Aggregators should be enabled to access the market without prior agreement of other market parties who are often competitors (Electricity Directive Article 17).
• Network tariffs should be fully transparent and allow the development of self-consumption and self-generation. They should be based on the marginal costs of the use of the system and take into account the avoided capital (e.g. grid investments) and operational expenditures due to flexible generation and flexible load embedded at the local level, as well as avoided CO2 emissions. (Electricity Regulation Article 16; Electricity Directive Article 15).
• Accelerate the cost-efficient decarbonisation of the existing building stock, notably through reaping the flexibility benefits of technical building systems and other appliances to support consumer empowerment: set in place a proper framework for the deployment of infrastructures (i.e. on-site renewable electricity generation, high efficiency cogeneration, smart metering or electro-mobility) and of demand-responsive devices that will facilitate the buildings’ integration into a wider energy ‘eco-system’ where active prosumers self-generate, self-consume, aggregate, trade and sell surplus electricity to the grid. In this new setting, buildings will no longer be a load but a micro-energy hub contributing to consumer empowerment and cost-efficiency of the energy system. The smartness indicator of buildings should support consumer empowerment and the development of buildings as part of the energy system.
• Create a comprehensive framework for grid monitoring, so as to increase the visibility of flexibility, including demand-side flexibility. It should be based on information that TSOs and DSOs would publish regularly as regards to the performance of their networks , in particular the volumes and sources of curtailed energy (Electricity Directive, Article 59). Comprehensive reporting on grid evolution, together with appropriate tariff structure, will be an essential basis for cost-effective network management and enable the targeted acquisition of flexibility services from the market by system operators instead of CAPEX only investments (Electricity Directive, Article 32).
• Ensure enforceability of the right for citizens and businesses to self-generate, self-consume, and valorise their flexibility; (Electricity regulation Article 16; Electricity directive Article 15).
• Establish a constructive framework for energy storage which takes into account the specificity of the energy storage technologies, and recognizes that TSOs and DSOs should not own, develop, manage or operate storage assets, unless a market based procurement based on an open and transparent tendering procedure is proven of not being possible and is regularly reviewed. (Electricity Directive, Articles 36 and 54)
Signatories of this letter are convinced that such a way forward will provide consumers with the satisfaction of managing their own energy consumption while optimising their overall carbon and environmental performance.
European paper industry reaction to the US administration's withdrawal from Paris Agreement on climate change
"The US administration’s decision to step down from the Paris Agreement sadly puts at risk the global efforts needed to address climate change. It also regrettably reflects a view that climate action would undermine industry competitiveness. To make the case for action - and win back the US, Europe must decisively demonstrate that decarbonisation can go hand in hand with industrial competitiveness and investments. The European paper industry has a vision through its Investment Roadmap to decarbonise by 80%, create 50% more added value and increase its investment by 40% by 2050. This should be done in the background of a Paris Climate Change Agreement which provides a solid framework for climate action and fosters a global level playing field" says Sylvain Lhote, Director General at CEPI
SÃO PAULO – The International Council of Forest and Paper Associations (ICFPA) announced Jane Molony as its new president. Molony, Executive Director of the Paper Manufacturers Association of South Africa (PAMSA), will serve in this capacity for the next two years.
“Across the world, wood, paper and tissue products touch lives every day in ways that often go unnoticed. Without our industries’ products, many people would not be able to teach, read or learn; businesses would not be able to ship merchandise, or protect goods; nor would people be able to improve their lives through the basics of personal hygiene. Forest and paper products also have a great environmental and economic story to tell. It is a story that has been proudly told by the ICFPA for 15 years. I am particularly honoured to take charge of this group of leaders,” said Molony.
Molony was elected at the ICFPA’s annual meeting in Berlin, Germany. The meeting was attended by 18 representatives from ICFPA members associations, who discussed future activities, cooperation and sustainability-related issue.
Molony succeeds Elizabeth de Carvalhaes, president and CEO of the Brazilian Tree Industry, who served as ICFPA president for the past three years.
“It has been a privilege to help the ICFPA continue its legacy of advocacy on important issues of interest of this global industry, and I have put significant efforts in communication. I believe this industry has a remarkable story to tell and we are just scratching the surface when it comes to public awareness and understanding of the sustainable benefits of the global forest products industry,” said Carvalhaes. “It was a great pleasure and honor to be part of this important forum and network of leaders and Ibá will continue to advocate towards the global forest industry and the plantations based industry locally and globally.”
“On behalf of the entire ICFPA, I would like to thank Elizabeth for her leadership and guidance,” said Molony. “I look forward to continuing to work with her and the other members of the steering committee to ensure a strong global forest products industry.”
The ICFPA represents more than 30 national and regional forest and paper associations around the world.
For more information about the sustainability of the global forest and paper industry, visit icfpa.org.
The above signatories have signed a proposal for the development of a systematic approach for deriving suitable BAT1-AEL2s ranges, submitted to DG Environment of the European Commission.
The legal obligation for permitting authorities to set the emission limit value for a given pollutant at a level that ensures that, under normal operating conditions, emissions do not exceed the BAT-AEL, has far-reaching consequences. BAT-AELs have to be implemented as ELV3s and industrial installations have to comply with those. A systematic approach to derive the BAT-AEL as a result of the BREF review process and the data collection performed in that context is therefore a must. A robust and transparent approach will secure consistency for stakeholders throughout the BREF review process, as well as for regulators and operators at permitting level. Based on both the Guidance published in the Official Journal of the EU in March 2012 and on our combined industrial experience, we have outlined in this paper an approach which should help deriving both ends of the BAT-AEL range systematically. This is crucial if one wants to preserve the integrity of IED implementation through appropriately-designed and truly applicable BAT conclusions, technically achievable and economically viable BAT-AELs.
1. Best Available Techniques
2. Associated Emission Levels
3 Emission Limit Values
Read the full document:
Circular Economy: three leading industries renew call for a single measure of ‘real’ recycling rates
Member States today agreed their negotiating mandate on Circular Economy waste proposals, paving the way for trialogues with the European Commission and Parliament. EUROFER, CEPI and Eurometaux now appeal for all EU institutions to prove their Circular Economy ambition, by working constructively towards a single measure of real recycling.
Axel Eggert, EUROFER’s Director General: “Every institution has now acknowledged that Member States need to start calculating recycling rates at the same point, which is not the case under present legislation. However, the Parliament has been the only institution to propose the right solution: a single measure without derogation. We’ll be working with policymakers to make the best of the proposals, and to aim for one measurement at the input point of the final recycling process. The worst possible outcome is one where we are left with a permanent loophole that allows Member States to circumvent requirements”.
Sylvain Lhote, CEPI’s Director General: “Today three of Europe’s recycling leaders have united to emphasise the importance of measuring ‘real’ recycling rates. Making the Circular Economy happen in Europe means we must be able to measure the actual recycling rate. This will allow better targeting of investment where it matters most - better systems of collection and sorting that enhance the quality and quantity of what is recycled which in turn boost industry development”
Guy Thiran, Eurometaux’s Director General: “Until we have a common method to measure how much of our waste gets recycled, it doesn’t matter whether the EU’s headline recycling target is 65 per cent or 70 percent. EU negotiators need to make a strong calculation method their top priority. We can only gage the realism and ambition of recycling targets once we know what Member States will be measuring”
About CEPI: CEPI is the pan-European association representing the forest fibre & paper industry. Through its 18 national associations CEPI gathers over 500 companies operating 940 paper mills across Europe producing paper, cardboard, pulp & other biobased products. Building on its target of achieving a 74% effective recycling rate within the next three years CEPI is at the forefront of making the low-carbon circular bioeconomy a reality in Europe through its 2050 ‘Investment Roadmap’.
Contact Person: Ben Kennard, Press Officer, firstname.lastname@example.org
About Eurometaux: Eurometaux is the decisive voice of non-ferrous metals producers and recyclers in Europe. With an annual turnover of €120bn, our members represent an essential industry for European society that businesses in almost every sector depend on. Together, we are leading Europe towards a more circular future through the endlessly recyclable potential of metals.
Contact Person: Chris Heron, Communications & Public Affairs Manager, email@example.com, +32 493 18 89 63
About EUROFER: The European Steel Association (EUROFER) is located in Brussels and was founded in 1976. It represents the entirety of steel production in the European Union. EUROFER members are steel companies and national steel federations throughout the EU. The major steel companies and national steel federations in Switzerland and Turkey are associate members.
Contact Person: Charles de Lusignan, Communications Manager, firstname.lastname@example.org