D.M. 10 maggio 2018 introduced some important modification to the guidelines of the Italian white certificate scheme, mostly to deal with issues such as the lack of certificates to fulfil the targets and the excessive rigid rules introduced in 2017 to present new energy efficiency projects. The presentation shows the main changes and some results in terms of issued certificates and prices and summarises some hints on the future of the scheme.

1. White certificates in Italy:
what happened, what to
expect
Dario Di Santo, FIRE
Bolzano, 4 October 2018

2. www.fire-italia.org
X
The Italian Federation for the Rational use
of Energy is a no-profit association founded
in 1987 that promotes energy efficiency,
supporting energy manager, ESCOs and other
companies dealing with energy.
Besides the activities directed to its members,
FIRE operates under an implementing
agreement with the Ministry of Economic
Development to manage the Italian energy
manager network since 1992.
In order to promote energy efficiency FIRE
cooperates and deals with public authorities,
energy technology and service companies,
consultants, medium and large consumers,
universities and associations to promote best
practices and improve the legislation.
FIRE manages SECEM - an accredited body
under ISO 17024 - to certify Energy
management experts (EGE - UNI CEI 11339).
FIRE: the association for energy efficiency

3. X
FIRE: the association for energy efficiency
Some members of FIRE:
A2A S.p.A., ABBVIE s.r.l., ACTV S.p.A., Aeroporto Valerio Catullo S.p.A., Agenzia per l'Energia
e lo Sviluppo Sostenibile, AICE scarl, Alpiq Intec S.p.A., AMIA S.p.A., AMIAT S.p.A., Ascopiave
S.p.A., Atlas Copco S.p.A., Avvenia s.r.l., Axpo Italia S.p.A., Azienda provinciale per i servizi
sanitari TN, Banca Mediolanum S.p.A., Banca Popolare di Sondrio, Beghelli S.p.A., Berco
S.p.A., Bit Energia s.r.l., Bosch Energy and Building Solutions Italy s.r.l., Brembo S.p.A., Cabot
Italiana S.p.A., Carbotermo S.p.A., Carraro S.p.A., Carrefour Italia S.p.A., Centria s.r.l., Comau
S.p.A., Compagnia Generale Trattori S.p.A., Consul System S.p.A., CPL Concordia soc. coop.,
Credito Emiliano S.p.A., CTI Energia e Ambiente, DBA Progetti S.p.A., DNV GL Business
Assurance Italia s.r.l., Edilvì S.p.A., Edison Energy Solutions S.p.A., Egidio Galbani s.r.l.,
Electrade S.p.A., Elettra - Sincrotrone Trieste S.p.A., Elettrostudio Energia S.p.A., Enarkè
associati, Enel Energia S.p.A., Energika s.r.l., Energon Esco s.r.l., Energy Saving s.r.l., Energy
Team S.p.A., Engie Servizi S.p.A., ENI S.p.A., Estra Clima s.r.l., Fedabo S.p.A., Fenice S.p.A.,
Ferrari S.p.A., Ferrero Industriale Italia s.r.l., Ferriere Nord S.p.A., Fiera Milano S.p.A., Fincibec
S.p.A., Finco, Finstral AG S.p.A., FIPER, Fondazione Policlinico Università A. Gemelli, Gewiss
S.p.A., Gruppo Società Gas Rimini S.p.A., Hera S.p.A., Hitachi Drives and Automation s.r.l.,
Holcim S.p.A., IDM Südtirol, Ilsa S.p.A., Industrie Cotto Possagno S.p.A., Intesa Sanpaolo
S.p.A., Iplom S.p.A., IRBM Science Park S.p.A., IREN S.p.A., ISAB s.r.l., Italcementi S.p.A.,
Italgas Reti S.p.A., Italgraniti Group S.p.A., Kairos s.r.l., Lidl Italia s.r.l., Loclain s.r.l.,
Manutencoop Facility Management S.p.A., Marche Multiservizi S.p.A., Mater-Biopolymer s.r.l.,
Mediamarket S.p.A., MM S.p.A., Montello S.p.A., NBI S.p.A., Pasta Zara S.p.A., Politecnico di
Torino - Dip. di Energetica, Polynt S.p.A., Publiacqua S.p.A., Raffineria di Milazzo S.C. p. A.,
RAI - Radiotelevisione Italiana S.p.A., Restiani S.p.A., Rete Ferroviaria Italiana S.p.A.,
Roquette Italia S.p.A., Samandel S.p.A., San Marco Bioenergie S.p.A., Sandoz Industrial
Products S.p.A., Schneider Electric S.p.A., SDA Express Courier S.p.A., Seaside s.r.l., Siena
Ambiente S.p.A., Siram S.p.A., Solvay Energy Services s.r.l., Studio Botta, Tecno s.r.l., Thales
Alenia Space Italia S.p.A., Tholos s.r.l., Trenitalia S.p.A., Trenord s.r.l., Trentino Trasporti
S.p.A., Turboden s.r.l., Università di Genova - DITEN, Università Campus Biomedico,
Università Cattolica del Sacro Cuore, Wind Tre S.p.A., Yanmar R&D Europe s.r.l., Yousave
S.p.A.
Our members represent both the supply and the
demand side of energy efficiency services and solutions.
Around 400 members, almost
equally divided between
organisations and professional.

4. X
4
FIRE: the association for energy efficiency
Besides being involved in many European
projects, listed next, FIRE implement surveys
and market studies on energy related topics,
information and dissemination campaigns,
and advanced training.
Some of FIRE clients over the years: Ministry
of Environment, ENEA, GSE, RSE, large
organizations (such as Centria, ENEL, Ferrovie
dello Stato, FIAT, Finmeccanica, Galbani, H3G,
Poste Italiane, Telecom Italia, Unioncamere),
universities, associations, energy agencies
and exhibition organizers.
www.fire-italia.org
On-going and just completed EU projects:

5. The scheme basics: EEO + WhC trade
5
Demand
WhC is an EEO
DSOs have to meet
energy saving
targets
Certificates can be
traded on the market
Voluntary parties (small
DSOs, ESCOs and
companies with energy
management expert or
EnMS) can also obtain
certificates
Supply
WhC is partly an
incentive
1 WhC = 1
addi*onal toe
All sectors and all
energy efficiency
projects are
allowed.
Source: FIRE.
The Italian scheme is an EEO scheme with many flexibility options
(voluntary parties, exchange market, possibility for DSOs to achieve
60% of target to be recovered in the next 2 years, etc.).

6. The WhC legislative path
6
2004
D.Lgs. 79/1999
DSOs should be put
under an EE obligation
scheme.
1999
ARERA 103/03
WhC operative
guidelines.
2003
D.M. 24/4/2011
WhC scheme
introduction.
2001
Source: FIRE.
D.M. 20/7/2014
Targets fix and
improvements.
D.M. 21/12/2017
New guidelines
(targets,
reimbursement for
other fuels, etc.).
2007
ARERA 9/11
Introduction of the tau
coefficient.
2011
2017
D.M. 28/12/2012
New guidelines
(targets, new deadlines
for proposals, GSE as
managing authority,
etc.).
2012
D.M. 11/1/2017
New guidelines
(targets, new control
and verification
procedure, no more
tau coefficient, limits to
eligible projects, etc.).
D.M. 10/5/2018
New additionality,
enhanced flexibility for
DSOs, reimbursement
cap, etc.
2018
A complex scheme like the Italian WhC needs frequent updates
and fixes. Sought effects often require time to be obtained.

7. Some base points under 2017 guidelines
7
Energy savings evaluation methods starting from May 2017:
Standard projects (SP – a mix of deemed savings and metered savings). Savings are
calculated based both on the installed units and the measurements done on a
statistically representative sample.
Monitoring plans projects (MPP – a type of metered savings). Savings are measured
according to an algorithm and a set of meters (both for energy consumption and
adjustment factors). With the new guidelines additional requirements were introduced
for the consumption baseline that has to be based on meters capable of at least daily
measures of the savings and on recorded data for at least one year.
WhC lifetime (as changed by D.M. 10 maggio 2018)
WhC Lifetime changes according to the technology and in case of new installation or
substitution of existing plants/components. For new installation WhC lifetime passes
from 3 years (behavioural measures and heat recovery) to 10 years (complex/expensive
measures in industry and buildings). In case of substitution the typical range is from 5
to 7 years, with the exceptions of control systems for gas flow and heated air in ceramic
dryers (3 years) and electric/hybrid/LNG/natural gas/hydrogen vehicles (10 years).
Prior of 2017 guidelines: 5 years with tau coefficient.

8. News introduced by D.M. 10 maggio 2018
Some of the main aspects:
a) no more additionality integrated in the scheme for projects linked to improvements
of existing facilities. WhC lifetime reduction (from 10 to 7 years and from 7 to 5);
b)new eligible projects;
c) introduction of eight standardised solutions (led for internal and public lighting,
electric motors, compressed air generation, smart bill, naval propulsion systems,
hybrid and electric vehicles fleets);
d)improved flexibility for DSOs (two years to recover the 40% target flexibility instead
of one, as it was previously of the 2017 guidelines);
e) 250 euro DSOs’ reimbursement cap;
f) possibility to issue temporary non-energy saving related certificates by GSE in
case of lack of certificates to cover the minimum target;
g)new definition of cumulativeness, with the possibility to take both white certificates
and super or iper ammortamento (with a 50% reduction of the number of
certificates).
8

9. Evaluation of additionality starting from May 2017:
Additionality and eligible savings
9
Steps:
evaluation of ex-ante
baseline through 1-year
measurements;
a d j u s t e d b a s e l i n e
( p r o d u c t i o n , c l i m a t e ,
occupation, etc.), which
can be higher or lower than
ex-ante baseline;
e v a l u a t i o n o f m a r k e t
(average of actual market
o f f e r ) a n d s t a n d a r d
( m i n i m u m l e g i s l a t i v e
requirements) adjusted
baselines;
definition of additional
s a v i n g s f o r n e w
installations.
Activity to be done on a per-
project basis.
0
20
40
60
80
100
120
Ex-ante baseline Adjusted baseline Market-adjusted
baseline
Standard-adjusted
baseline
Ex-post
consumption (new
installation)
Ex-post
consumption
(substitution)
Energy consumption baselines and eligible energy savings
Non eligible savings Eligible savings Consumption Baseline consumption
Source: FIRE.

10. The path from projects to WhC
10
Main points:
Proposals should be submitted before starting with the project
implementation;
At least 12 months of measurement for the ex-ante baseline are
needed;
GSE controls both SPs and MPPs (project proposals) and request of
certification (RCs - reports of savings).

11. From EE project to white certificates
11
GSE first evaluates the
project proposal, then
t h e r e q u e s t f o r
c e r t i f i c a t i o n . B o t h
include a thorough
a n a l y s i s o f t h e
submitted documents
and of the proposed
algorithm, consumption
baseline, additionality,
meters, etc.
Proposals are submitted
through a web platform.
Even if a project is
approved, GSE can make
extended verifications.
Source: FIRE.

12. Verification process
12
Source: FIRE.
On-site verification has been used
less than expected, in fact,
especially with standard projects.
Documental verification are
usually quite demanding, leading
often to the rejection of the
proposal and to legal dispute (90
rulings of Lazio’s administrative
court, of which 58 in 2018 so far).

13. The growth of the industrial sector
13

14. Industrial projects under WhC
14
MPP approach played a
positive role. Even if it
requires the proponent to deal
with complex issues, like
adjusted consumption baseline,
r e l i a b l e m o n i t o r i n g a n d
verification, additionality, etc.,
it also brings flexibility and
e n s u r e s a n a c c u r a t e
a s s e s s m e n t o f e n e r g y
savings. Frauds are difficult.
The approach based on metered savings and reliable M&V procedures produced two other
benefits: a) it improved the know-how and skills of end-users, ESCOs and other market
operators, leading to an improved capacity of the market to find and propose energy
efficiency measures integrated with manufacturing processes, and b) offered to the
management bodies (GSE, ENEA, and RSE) a lot of data on industrial processes and their
usage and transformation.
The existence of the WhC scheme created a more favourable environment for energy
efficiency in enterprises: top managers understood the value of energy efficiency
improvements by exploiting WhC.
The prominent role of industrial projects was recognised in the two national strategies
issued in 2013 and 2017 that require to improve the WhC scheme especially toward the
industrial sector.

15. Outcomes of projects’ evaluation
15
The main issues incurred in the verification and control process are:
issues with consumption baseline and additionality (often not a clear aspect);
insufficient information and/or documentation on the project;
issues related to the closure or modification of plants prior the end of the technical life;
large frauds emerged in 2017 with SPs (around 700 million euros over WhC lifetime).
53%
38%
7% 1%
MPPs 2016: 815
Approved Rejected Other Under evaluation
Source: FIRE on GSE data.
81%
17%
2% 0%
CRs 2016: 11.709
Approved Rejected Other Under evaluation
Source: FIRE on GSE data.
54%
41%
4% 1%
MPPs 2015: 999
Approved Rejected Other Under evaluation
Source: FIRE on GSE data.
90%
7%
2% 1%
CRs 2015: 10.765
Approved Rejected Other Under evaluation
Source: FIRE on GSE data.
38%
49%
3%
10%
MPPs 2017: 364
Updated on June 14, 2018
Approved Rejected Other Under evaluation
Source: FIRE on GSE data.
59%
31%
5%
5%
CRs 2017: 5.339
Updated on June 14, 2018
Approved Rejected Other Under evaluation
Source: FIRE on GSE data.
38%
49%
3%
10%
PPPM 2018: 364
Updated on June 14, 2018
Approved Rejected Other Under evaluation
Source: FIRE on GSE data.
45%
1%1%
53%
CRs 2018: 1.145
Updated on June 14, 2018
Approved Rejected Other Under evaluation
Source: FIRE on GSE data.

16. 0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
0
20
40
60
80
100
120
140
160
180
200
January2016
February2016
M
arch
2016
April2016
M
ay2016
June
2016July2016
August2016
Septem
ber2016
October2016
Novem
ber2016
Decem
ber2016
January2017
February2017
M
arch
2017
April2017
M
ay2017
June
2017July2017
August2017
Septem
ber2017
October2017
Novem
ber2017
Decem
ber2017
January2018
February2018
M
arch
2018
April2018
CRs
MPPs
Proposals presented 2016-2017-2018
MPPs MPPs (new guidelines) CRs
Source: FIRE on GSE data.
Proposals trend
16
Reduction of CRs and MPPs
due to the evolution of the
additionality requirements
and to the increasing
complexity of the rules.

17. WhC and EED art. 7 targets
17
0,0
5,0
10,0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
White certificates targets and achievements
(updated at the end of May 2018)
Target (million WhC) Updated targets (million WhC) Issued WhC 31/5-1/6 (million WhC) Savings (Mtoe)
FIRE on GME data.
Italian notification on EED art. 7:
25.8 Mtoe cumulated. In 2017
4.2 Mtoe cumulated delivered
through WhC (56%).
Two points to be noticed:
the growing residual target,
l i n k e d t o t h e u s e o f
flexibility from DSOs due to
insufficient supply;
the stagnating additional
energy savings (mainly due
t o e v o l v i n g r u l e s o n
eligibility and additionality).

18. 0
100
200
300
400
500
07/03/06
07/06/06
07/09/06
07/12/06
07/03/07
07/06/07
07/09/07
07/12/07
07/03/08
07/06/08
07/09/08
07/12/08
07/03/09
07/06/09
07/09/09
07/12/09
07/03/10
07/06/10
07/09/10
07/12/10
07/03/11
07/06/11
07/09/11
07/12/11
07/03/12
07/06/12
07/09/12
07/12/12
07/03/13
07/06/13
07/09/13
07/12/13
07/03/14
07/06/14
07/09/14
07/12/14
07/03/15
07/06/15
07/09/15
07/12/15
07/03/16
07/06/16
07/09/16
07/12/16
07/03/17
07/06/17
07/09/17
07/12/17
07/03/18
07/06/18
07/09/18
WhC'sprice(Euro/certificate)
Market session data
WhC market price trend
"May 31st session" "DSO's reimbursement" "Other fuels savings"
"Gas savings" "Electricity savings"
Source: FIRE evaluation based on GME data
WhC price over time
18
Important points on market:
r e i m b u r s e m e n t f o r
obliged DSOs based on
previous year weighted
average market price;
three critical price periods
o v e r t i m e s h o w i n g
intrinsic instability.
1
2
3
Changes with 2017
guidelines prior of D.M. 10
maggio 2018:
no more tau coefficient;
longer WhC lifetime
(period over which
certificates are issued
based on measured
savings);
as a result, less
certificated per saved toe
(from 3,340 toe per
project to 277).
WhC
lifetime
Additio-
nality
Certificates
issued over
WhC lifetime
per saved toe
Discounted value
of certificates at
100 euro/
certificate
Discounted value
of certificates at
250 euro/
certificate
2012 guidelines 5 50% 8,4 727 1.818
2017 guidelines 10 50% 5 386 965
2018 guidelines 7 100% 7 579 1.447

19. WhC scheme cost and other results
19
According to GSE fiscal
documents, the cost of
information, evaluation,
and control has been
around 14 million euros in
2016.
Other evaluation from GSE:
over 2 million additional
t o e / y e a r o f e n e r g y
savings;
over 6 million tCO2/year;
11,000 equivalent direct
and indirect jobs;
1 b i l l i o n e u r o s o f
investment;
0.7 billion euros of
added value.

20. Will it work?
D.M. 10 maggio 2018 introduces measures
that deal both with demand and supply.
It will take time to verify the effects on the
offer side and understand if they will be
enough, but the new rules should ensure
some stability in the meantime.
An issue not addressed is the need for
greater support to WhC operators. The
percentages of rejection of practices (30-40%
for MPPs) remain too high. Complex schemes
require more dialogue between the parties.
A critical aspect is indeed the widespread
climate of distrust related to the lack of clear
rules on project eligibility and additionality,
the excessive use of the “autotutela” option,
the difficulties to communicate with GSE. A
new approach is required.
On the other hand, WhC operators will face
good WhC price and less rejection issues
thanks to the lack of additionality.
20

21. FIRE conferences and training courses
21
Conferences
Enermanagement Edifici
Bologna, 23 ottobre 2018
Enermanagement Trasporti
Bologna, 24 ottobre 2018
Enermanagement Industria
Milano, 29 novembre 2018
Certificati bianchi, Roma, 2019
Convention SECEM,
Rimini, 2019
Conferenza ISO 50001,
Padova, 2019
Conferenza EPC,
Bologna, 2019
www.fire-italia.org/eventi
Training courses:
energy manager e EGE (on-site and on-line);
IPMVP-CMVP;
intensive training (energy market, RES, CHP,
EnMS, LCA, solutions for buildings and
industry, etc.).

22. What can we do together?
FIRE can be a partner for many activities:
carrying out surveys among energy managers, ESCO,
EGE, companies with ISO 50001, etc .;
implementation of market and sectoral studies;
guides and analysis on incentive tools and policies;
information campaigns and behavioral change;
dissemination campaigns;
energy audits and feasibility studies;
training courses on energy management and its tools
(ISO 50001, energy audits, EPC, IPMVP, LCCA,
feasibility studies, etc.), policies and incentives,
solutions for energy efficiency, cogeneration, etc;
European projects (e.g. Horizon2020), international
cooperation, and much more…
Get in touch!
22
segreteria@fire-italia.org

23. Thank you!
www.facebook.com/FIREenergy.manager
www.linkedin.com/company/fire-federazione-
italiana-per-l'uso-razionale-dell'energia
www.twitter.com/FIRE_ita
For more information about
our activities
visit our web site!
www.dariodisanto.com