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Letter to Commissioners - Eurelectric

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Brussels, 8 February 2012<br />

<strong>Letter</strong> addressed <strong>to</strong><br />

Commissioner C. Hedegaard<br />

Commissioner G. Oettinger<br />

Commissioner A. Tajani<br />

POLICY COHERENCE: CONFLICTING MESSAGES ON FUNDAMENTAL METHODOLOGY FOR ENERGY-USING<br />

PRODUCTS<br />

Dear Commissioner,<br />

We write regarding the review of the classes of energy-using products covered by the Ecodesign and Energy Labelling<br />

Directives. Our companies are concerned about conflicting messages received, and negative impact on the investment<br />

climate.<br />

In December 2011 the European Commission released the Final Report “Methodology for Ecodesign of Energy-related<br />

Products” (MEErP). According <strong>to</strong> the project website, it provides the Commission with an update and extension of the<br />

existing methodology for the Ecodesign of Energy-using Products (MEEuP). 1<br />

EURELECTRIC is surprised <strong>to</strong> see that the MEErP report establishes that renewable energy sources (RES) have had, and<br />

will have, no impact in reducing primary energy use in electricity generation – past, present or future. Accordingly, we<br />

are disappointed that the report therefore proposes <strong>to</strong> penalise the use of electricity in energy-using products, and in<br />

this way promotes the direct-use of carbon emitting technologies, like petrol or gas in heating.<br />

We now understand that the Commission Services in charge of Ecodesign and Energy Labelling are in the process of<br />

drafting regulations for products that will codify the MEErP report in<strong>to</strong> EU law.<br />

Does this mean that the Commission is of the opinion:<br />

That over the next 30 <strong>to</strong> 50 years the volume of primary energy needed <strong>to</strong> generate electricity will remain<br />

substantially unchanging, and thus current EU policies (RES, ETS, IED) will have little or no impact on the power<br />

sec<strong>to</strong>r?<br />

That the 2020 RES target in particular will have no impact on primary energy needed, thus having no impact on<br />

improving security of supply? If this is the case, we ask how it is RES can contribute <strong>to</strong> reducing carbon emissions<br />

in the power sec<strong>to</strong>r?<br />

That reducing direct GHG emissions in households and transport “little-by-little” or “step-by-step” by means of<br />

investment cycles taking 10 <strong>to</strong> 30 years (in the heating sec<strong>to</strong>r) will deliver the 2050 objectives?<br />

EURELECTRIC is strongly committed <strong>to</strong> meeting the EU 2020 climate and energy targets and – with an adequate policy<br />

framework <strong>to</strong> enable cost-effective investments in low-carbon technologies – committed <strong>to</strong> the 2050 goals. We<br />

believe that decarbonisation will require a paradigm shift in energy end-use and that, as recently recognised by the<br />

European Environment Agency, electricity has a major role <strong>to</strong> play. Electricity has no direct carbon emissions at the<br />

point of consumption and its end-user indirect emissions are capped and progressively reducing under the ETS. 2<br />

1 http://ec.europa.eu/enterprise/policies/sustainable-business/ecodesign/methodology/index_en.htm<br />

and www.meerp.eu/index.html<br />

2 “End-user GHG emissions from energy”, Technical Report No 19/2011: www.eea.europa.eu/publications/end-use-energyemissions?utm_source=EEASubscriptions&utm_medium=RSSFeeds&utm_campaign=Generic<br />

Union of the Electricity Industry - EURELECTRIC AISBL . Boulevard de l’Impératrice, 66 - bte 2 . B - 1000 Brussels . Belgium<br />

Tel: + 32 2 515 10 00 . Fax: + 32 2 515 10 10 . VAT: BE 0462 679 112 . www.eurelectric.org


We therefore urge that, in order for the Commission <strong>to</strong> deliver on the EU vision, Europe cannot afford <strong>to</strong> squander<br />

resources by investing in assets (appliances, infrastructures) that will become stranded within a decade. This is<br />

particularly true at a time of financial difficulty for governments, citizens and business.<br />

I propose a meeting between your and our experts <strong>to</strong> find ways <strong>to</strong> ensure policy coherency on the role of energyusing<br />

products, starting with the current programme of work on Ecodesign and Energy Labelling.<br />

Yours sincerely,<br />

Hans ten BERGE<br />

Secretary General<br />

Encl : 1 Annex


Annex<br />

On Page 54 of “Methodology for Ecodesign of Energy-related Products - MEErP 2011, Methodology Report, Part 2:<br />

Environmental policies & data”, Final Report 3 , it is stated:<br />

Following initial debates, the fixed efficiency value of 40% actually used in the prepara<strong>to</strong>ry studies was a long term<br />

average over the product life of most products (i.e. over the period 2005-2025). The primary energy fac<strong>to</strong>r pertaining<br />

<strong>to</strong> this efficiency is 2.5 (1 kWh electric = 2.5 kWh primary energy).<br />

For the period up <strong>to</strong> 2030, i.e. when analyzing products with a life less than 20 years, the fac<strong>to</strong>r 2.5 still seems a robust<br />

fixed value <strong>to</strong> be used in prepara<strong>to</strong>ry studies. According <strong>to</strong> PRIMES, the average efficiency of conventional thermal<br />

power plants is progressing only slowly. The share of renewable energy sources and natural gas will increase, but the<br />

increased use of biomass, coal and nuclear energy will reduce this positive effect.<br />

For building components with a product life of 40-50 years, like window frames, insulation panels, etc., the primary<br />

energy conversion fac<strong>to</strong>r of 2.4 (efficiency 41.7%) can be assumed.<br />

The above-mentioned three paragraphs contain an impressive amount of imprecise or wrong statements. Specifically:<br />

First paragraph: it is said that 2.5 is based on “long term average”. However, all evidence shows that primary energy<br />

content in electricity has constantly reduced over time. Last data available showed that the EU average was close <strong>to</strong><br />

2.5 already in 2009. The impact of 2020 targets (RES, ETS) and other environmental legislation (IED) will impact<br />

furthermore the his<strong>to</strong>rical trend. If 2.5 is the long term average, then no additional improvements are expected in<br />

electricity systems.<br />

Second paragraph: references <strong>to</strong> PRIMES model are all systematically wrong. In particular:<br />

The second sentence “According <strong>to</strong>… slowly” is technically correct, but it omits <strong>to</strong> say that the share of<br />

conventional thermal power plants reduces. But electricity is generated not only by these plants: the growing<br />

share of RES, and the impact it will have on reducing primary energy use, is ignored;<br />

The third sentence is wrong in two aspects:<br />

o In any of the scenarios produced by the European Commission since 2002 coal and nuclear share will<br />

grow in the long term;<br />

o The definition of thermal power plants in PRIMES includes natural gas, biomass and coal. The<br />

sentence is therefore irrelevant in arguing for effects compensating the role of RES: the RES share<br />

will grow, the share of conventional power plants will reduce while the overall efficiency of thermal<br />

technologies will remain substantially the same. But as the share reduces, the primary energy<br />

needed reduces as well.<br />

Third paragraph: this reflects the wrong assumption made in the previous two paragraphs, where it is wrongly<br />

assumed that electricity generation is equal <strong>to</strong> thermal electricity generation.<br />

3 http://www.meerp.eu/downloads/MEErP%20Methodology%20Part%202%20Final.pdf

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