Energy Saving Certificates (CAE) are electronic documents that certify the energy savings achieved after implementing energy efficiency improvements. These certificates are a key tool for encouraging investment in sustainable technologies and reducing energy consumption.
Since they came into operation, CAEs have been transforming the energy efficiency sector and are helping to make savings projects viable that previously were not.
Features of CAEs:
Measuring the Saving: Each CAE represents an equivalent energy saving and therefore the greater the energy saving a measure or project delivers, the more CAEs it earns.
Trading: CAEs can be sold on the market, allowing companies to recover part of the investment made in energy efficiency. They thus become a tradable asset.
Economic Incentive: In addition to the saving on the energy bill, companies can obtain additional income by selling the CAEs. An energy saving with a modest payback is therefore given an incentive that can make it viable.
Legislation Governing CAEs
CAEs are governed by Royal Decree 36/2023 of 24 January, which establishes a system of Energy Saving Certificates as an alternative to the National Energy Efficiency Fund (FNEE) . This legislation entered into force on 25 January 2023
Benefits of CAEs
Cost Reduction: They help lower energy costs and improve companies' competitiveness.
Environmental Impact: They contribute to reducing CO₂ emissions and to meeting sustainability targets.
Encouraging Investment: They drive investment in energy efficiency technologies and projects
How CAEs are obtained
To obtain a CAE, a detailed technical report on the energy measure carried out must be submitted, together with a favourable opinion issued by an accredited verifier
How do CAEs work?
Energy Saving Certificates (CAE) are generated from energy efficiency projects that reduce energy consumption. The issuing process involves several steps:
Project Identification: A company or organisation identifies an opportunity to improve energy efficiency, such as installing efficient lighting systems or improving thermal insulation.
Project Execution: The measures needed to achieve the energy saving are carried out. These measures may be standardised (listed in a catalogue) or bespoke (with a specific calculation methodology)
Verification: An accredited verifier checks that the energy savings have been achieved in accordance with the established criteria. The verifier issues a report certifying the savings
Issuing the CAE: Once the savings have been verified. This certificate is recorded on an electronic platform managed by the competent authorities
Who are the Obligated and Delegated parties?
Obligated and delegated parties play a key role in the CAE system:
Obligated Parties: These are the energy companies required to meet the annual energy saving targets. These targets are set according to the company's energy sales volume and can be met by purchasing CAEs or through contributions to the National Energy Efficiency Fund (FNEE).Obligated parties include electricity retailers, gas retailers, wholesale operators of petroleum products and wholesale operators of liquefied petroleum gases.
Delegated Parties: These are entities that can act on behalf of obligated parties to fulfil their energy saving obligations. This includes energy service companies (ESCOs), installers and other agents that implement energy efficiency projects.