National Energy Efficiency Fund (FNEE) with 350M Euros per year

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A National Energy Efficiency Fund (FNEE) will be created where energy saving and the reduction of CO2 emissions will be prioritized.

The Minister council has launched the Measurement Plan for growth, competitiveness and efficiency, which includes, in an organized and analytical way, a series of measures aimed at undertaking and developing a joint strategy for the second half of 2014 with a set of specific actions. At the same time approves a new Royal Decree (Law 18/2014, of October 15, approving urgent measures for growth, competitiveness and efficiency) that regulates the activity of electricity production from renewable technologies.

If we go by parts, and in the first place we focus on the new Royal Decree that affects renewables, of course we do not have to give applause. If already in the article "How much does Spain invest in renewable energy?" We could recognize a decline in the renewables sector due to lack of investment and involvement of the administration, taking into account that it was one of the best assets in Spain to create employment. We return to a new Royal Decree that hits the sector again with an approximate reduction of 1,700 million Euros for this year, in line with the estimates by the National Markets and Competition Commission (CNMC), placing us at 2011 levels.

We can identify three key points:

  • The profitability is lower than that announced by the Executive and that was 7.5%. 5.8% is expected for facilities
  • Facilities that have exceeded their useful life will not receive compensation
  • The useful life is 20 years for wind, 30 for photovoltaic and 25 for the rest

If we focus on the Plan of Measures for growth, competitiveness and efficiency, we can identify a section whose purpose is to promote growth that is respectful of the environment, prioritizing energy savings and reducing CO2 emissions.

What does the plan of measures that affect the environment consist of, prioritizing energy saving and reducing CO2 emissions?

A National Energy Efficiency Fund (FHEE), co-financed with European funds, intended to invest in projects that reduce energy consumption in the productive sectors and in construction based on:

1.- Creation of the system of obligations for energy suppliers

The system of obligations will make it possible to comply with the consumption reduction objectives of the Energy Efficiency Directive. Companies will be able to comply, either through their own actions that reduce energy consumption, or by contributing to a new National Energy Efficiency Fund.

2.- Creation of the National Fund for Energy Efficiency (FNEE) of 350 Million Euros.

-. Endowed with up to 350 million euros per year from the European Structural Funds corresponding to the General State Administration, which will contribute 35% of the endowment, the rest of the settlements derived from the obligation system, proceeding from the income derived from the auctions emission rights and budgetary allocations that, where appropriate, are made.

-. It will co-finance energy efficiency investments in building, transportation, industry, services and the agricultural sector. The approval of the following plans is planned:

  • Plan of Energy Saving and Emissions Reduction in Buildings for the energy rehabilitation of buildings of the residential and tertiary sector (hotels, centers of the National Health System, retail trade, etc.)
  • Plan for the improvement of the technology of industrial equipment and processes
  • Plan to improve the efficient use of means of transport and modal shift of people and goods towards more efficient modes.
  • Plan to improve energy efficiency in farms and agricultural machinery.

3.- Energy Saving and Emissions Reduction Plan in Buildings

With the National Energy Efficiency Fund (FNEE) a Energy Saving and Emissions Reduction Plan in Buildings whose key points will be:

1.- The FNEE will allocate most of the resources to co-finance energy efficiency actions in buildings for residential and non-residential use (hotels, centers of the National Health System, retail trade, etc.). The Plan will mobilize an estimated total annual investment of 892 million euros.

2.- The Autonomous Communities will carry out complementary actions allocating around € 133M per year of their ERDF funds to energy saving actions in buildings.

-. The plan will include, among others, the following actions:

Energy rehabilitation of the thermal envelope of existing buildings

• Renovation of facades and / or roofs in residential buildings

Improvement of the energy efficiency of the thermal installations of the existing buildings

• Renovation of boiler rooms

• Improvement of the energy efficiency of the interior lighting installations of existing buildings

Rehabilitation of existing buildings with high energy rating

• Improvement of the energy efficiency of existing commercial refrigeration installations

• Renovation of industrial and tertiary cold generators

Improved energy efficiency in elevator installations and other systems existing transport

• Implementation of intelligent systems in the existing building

• Improvement of the energy efficiency of the existing Data Processing Centers

• Improvement of energy efficiency in electrical installations of existing buildings

3.- The Plan is complemented by the 200 million euros that the 2013-2016 Housing Plan will allocate to building renovation actions for energy efficiency.

4.- Plan to improve the technology of industrial equipment and processes:

Once the Rehabilitation Plan, the FNEE will implement this second plan, which will co-finance actions in the industrial sector that improve energy efficiency production processes, which is where there is the greatest potential for energy savings in the shortest term. The Plan will allow a reduction in energy costs to the industrial sector, improving the competitiveness of this sector, will mobilize an estimated total investment of 828 million euros.

5.- Plan to improve the efficient use of means of transport and modal shift of people and goods towards more efficient modes:

It will include the promotion of sustainable mobility plans in town halls, sustainable transport plans to the workplace, management of road transport fleets and efficient driving courses.

6.- Plan to improve energy efficiency in farms and agricultural machinery.

Access to the Document of the Plan of Measures for growth, competitiveness and efficiency where the National Energy Efficiency Fund (FNEE) and its characteristics are specified … (Royal Decree-Law 8/2014)

We must remember that actions to improve energy savings, efficient rehabilitation and improvement of existing buildings will provide quality workstations as advertised in the GTR Roadmap 2014 Strategy for rehabilitation in Spain where the keys to a transformation of the building sector were delved into.

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