INVEEST: CEE- what is coming next?

The French Government has just released the new terms and conditions of the energy saving certificates scheme, in preparation for the implementation of the fifth period, on January 1, 2022. This scheme is a key feature of the National Low Carbon Strategy (SNBC).

What is a “CEE”?

The energy saving certificates scheme is based on a three-year obligation to make energy savings in CEE (1 CEE = 1 kWh of final energy), directed to energy suppliers. Energy suppliers basically have 3 channels to make savings: households, communities and companies.

In a nutshell, when a company contributes to energy savings, a certificate based on the volume of kWh saved is granted to the latter. The energy supplier then pays an amount of money to the company in question, based on the volume saved and capitalizes on the associated volume of CEE to fulfill its three-year obligation.

Standardised operation sheets, classified by sector have eased the implementation of these energy savings incentives. They determine, for the most frequent operations, the lump-sum amounts of energy savings in kWh cumup (contraction of the words “cumulated” and “updated”).

 Source: ADEME

What was the outcome of the last period?

Following the overachievement of the savings targets set for the first three time frames of the scheme (2006-2009, 2011-2014 and 2015-2017), the government has decided to implement a more ambitious energy savings policy.

In June 2019, the Ministry announced that the scheme would be extended until the end of 2021, with a slight increase in expected targets.

In 2020, the scope of the project was expanded to sites subject to CO2 quotas.

It is too early to take stock at this stage. However, the emphasis put on simplification, transparency and reliability during the 3rd period has already borne fruit. In fact, in 2019, over 20,000 CEE-eligible projects were completed each month, whereas 2,500 on average were finalized in 2018.

What key features for the fifth period?

The Ministry for the Ecological Transition has increased energy saving objectives for this fifth period, both in terms of obligations and bonuses.

With this increase, the energy efficiency actions supported by the CEE will cover about 45% of the energy saving objectives set by the SNBC and the PPE (plurianual program on energy)).

The calculation method used to define the three-year obligation set for each energy supplier will also change to better represent the volume of energy put on the market.

Another new feature has to do with the fact that it will no longer be possible to improve the CEE through the implementation of an energy performance contract. This is an important change to take into account if you are interested in these two schemes.

To find out more about these schemes and build a solid case, join one of our training courses!

The INVEEST training course is available here.