Energy Saving Certificates (ESC) are a key tool in the promotion of energy efficiency, allowing to quantify and monetize the savings obtained after the implementation of efficiency measures.
In this article, we will explore the characteristics of CAE, who is involved in the CAE process, how to apply and how Wattwin can facilitate this process.
Table of Contents
1. What are the CAE's
An Energy Savings Certificate (ESC) is an electronic document that certifies the new final energy savings obtained after the implementation of an energy efficiency measure.
This system arose in response to the need to comply with the obligations established by the European Union in the area of energy efficiency, while at the same time encouraging investment in sustainable technologies.
These certificates represent a significant step forward not only in promoting efficiency by providing a solid regulatory framework, but also by encouraging investment in increasingly green technologies.
But how does this work, you may ask?
The CAE allows monetizing energy savings and recovering part of the investment made in energy efficiency measures (each CAE is equivalent to 1 kWh of annual energy savings and its price is defined by the market). These measures can be a change in lighting, an improvement in thermal insulation, a renovation of renewable energy systems, etc.
These efficiency-driving actions can be classified into two categories:
- Singular actions. These are specific and uncommon in any sector to improve energy efficiency.
- Standard actions. These are the most frequent in sectors such as industry, residential, tertiary and transport. For these measures, the Ministry for Ecological Transition has prepared sheets detailing the requirements to be met and the methodology to be used to calculate energy savings.
Entry into Force and Validity of the CAE
In order for an energy savings to become a CAE, the performance generating the savings must be initiated after January 26, 2023. CAEs are valid for three years from the completion of the savings-generating performance or until December 31, 2030, whichever occurs first.
Agents Involved
Obligated parties: Energy companies (gas and electricity traders and LPG wholesale operators) obliged to achieve a certain amount of energy savings annually. They can fulfill their obligation by paying to the National Energy Efficiency Fund or by settling CAE.
Delegated entities: Companies authorized to assist obligated entities in obtaining CAE, committing with them to settle a certain amount of CAE on their behalf each year.
* If you are interested in acquiring the status of delegated subjects, you must previously accredit, before the National Coordinator of the CAE System, the fulfillment of some minimum requirements of legal capacity, technical competence in energy efficiency and economic solvency.
Savings owner: Person who has made the investment in the energy efficiency measure.
End-user: Person who benefits from the energy efficiency measure.
Energy savings verifier: Accredited entity that verifies that the performance has been carried out and that the declared energy savings have been achieved.
Regional CAE manager: Body in charge of validating the information contained in the CAE files.
National Coordinator of the CAE System: Administrative body in charge of ensuring the proper functioning of the CAE System at the national level.
2. Who can apply for CAE and what is the process?
Obligated entities and delegated entities may only request the issuance of CAE, after having previously obtained a favorable verification opinion issued by an energy saving verifier for the action or actions corresponding to the request.
This request is made through the electronic platform of the CAE system (currently under development). All participating agents will be there, each with their role and permissions to view and exploit the information.
Among other functions, the Platform shall:
- Enable SO/SDs to request, buy/sell and settle CAE, as well as to know at any time the status of the requests made.
- Facilitate the analysis and validation of the CAE file, the issuance and pre-registration of the CAE to the Autonomous Region Managers.
- Manage the National Registry of CAE.
- Access to updated information on registered and valid CAEs.
- Record changes in ownership of the CAE as a result of the purchase/sale.
- Provide information on the evolution of the average selling price of PPAs.
The Autonomous Region Manager analyzes the issuance request file and, if applicable, issues the corresponding CAEs. The National Coordinator registers the CAE issued in the National Register.
Once enrolled, CAEs may be sold, purchased and settled against a savings obligation.
This is the path that an application follows on a normal day.
- Commercial Work: Preliminary study of energy efficiency actions.
- Signing of the CAE Agreement: Agreement between the owner of the savings and the obligor or delegate.
- Execution of the Measure: Implementation of the energy efficiency measure.
- Savings Verification Request: Request for verification of the performance performed.
- Documentary Verification: Review of the energy savings verifier.
- CAE Issuance Request: Request for CAE issuance.
- Documentary Validation: Review and validation by the Regional Manager.
- Issuance of the CAE: Issuance of the certificate by the Autonomous Manager.
- Pre-registration in the National Registry: Registration of the CAE in the National Registry.
- Verification and Supervision of the National Registry: Verification and supervision of information.
- CAE Buying and Selling: Movements in the CAE buying and selling market.
- CAE Settlement: Settlement in savings bonds or savings requirement auctions.
- Inspection and Control: Inspections and controls of the CAE.
In summary:
The implementation of CAEs opens new doors in the Spanish energy market, providing a platform for collaboration between companies, institutions and citizens in the search for sustainable energy solutions.
In addition to meeting the government's energy saving obligations, CAEs offer a number of tangible benefits, such as generating additional income for participants and promoting competitiveness and innovation in the sector.
For further details on each of the points of the CAE, please refer to the guide prepared by the Ministry for the ecological transition and the demographic challenge.
And, if you've made it this far, the best part is yet to come!
3. How Wattwin can help you manage CAEs
We know that managing the technical and administrative processes involved in obtaining Energy Saving Certificates can be a daunting task. The process includes a series of steps that require considerable time investment, specific technical knowledge and each stage of the process presents its own challenges.
As experts in technology and energy efficiency, Wattwin has found two ways to help you manage energy savings certificates:
- We manage the CAEs for you: Our technical office department takes care of all the necessary steps, from the initial assessment to obtaining and registering the CAE, allowing you to save time and resources while complying with your energy efficiency obligations. In addition to managing CAEs, we can help with most of the technical and administrative procedures associated with the legalization, processing and commissioning of energy installations, which are often a headache. This includes the drafting of technical reports, obtaining building permits, legalization of installations, and the management of subsidies and IBI bonuses. We also help you access European funds, ensuring that you maximize all available funding opportunities.
- Manage your EWCs with Wattwin's software to streamline and simplify the process. As a leader in commercial and project management software for energy facilities, we are currently designing some innovative solutions for CAE management that may be of interest to your team or company. Contact us to evaluate them.
In short, at Wattwin we help you save time and resources, ensuring that you meet all your legal obligations and maximize the benefits of energy efficiency. With Wattwin, you can focus on what really matters while we take care of the rest.
What's next?
It's up to you. If you wish, you can contact our experts and decide if Wattwin is the CAE management partner you are looking for.
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