Energy efficiency is at the forefront of Spain's business strategy, increasingly driven by economic, environmental and climate regulatory challenges. Certificados de Ahorro Energético (CAEs) are energy efficiency certificates that encourage companies to reduce their energy consumption, adopt clean technologies and promote sustainable practices
Types of Projects for Generating CAEs
In Spain, any initiative aimed at improving energy efficiency can generate CAEs—regardless of the field or sector. These certificates serve as tangible proof of a company's commitment to energy reduction and are suitable for resale to obligated entities.
There are two main types of projects that can generate these valuable certificates: standardized projects and one-off projects. We take a look at them below.
Standardized Projects
Standardized projects form the backbone of the energy efficiency strategy. These are tried-and-tested methodologies adaptable across various scenarios where energy consumption patterns are well-known. From lighting overhauls to HVAC upgrades, these initiatives promise substantial energy savings with great returns. Examples include:
- Indoor lighting renovation: Energy consumption reductions can reach 20% to 50%, with CAEs often covering 60% to 100% of the initial investment. This makes the payback period, including ESA benefits, between 0 and 2 years. In some instances, customers can get back more than their investment, making it a no-cost venture.
- Boiler to heat pump replacement: Supports decarbonization and improves HVAC system efficiency, with CAEs easing the financial burden by funding 40% to 70% of the investment, which ranges from 50,000 to 100,000 Euros. This support reduces the investment recovery period to 1-3 years and the implementation time to under 6 months.
- Compressor replacement: Leads to a 10% to 20% reduction in energy consumption. This method requires an initial investment of 10,000 to 50,000 Euros, with a CAPEX of 20-50% and a stipulated payback period. Moreover, full implementation takes no more than 6 months.
One-Off Projects
In contrast, one-off projects cater to specific projects where standard solutions don't apply. They require customized design and detailed feasibility studies to tackle unique energy efficiency challenges. Examples include:
- Exterior lighting retrofit with LED lighting: This upgrade cuts energy consumption by 60% to 75%, offering a 15-20% return on investment based on the Annual Equivalent System Cost (AESC). With a CAPEX of 50,000 to 1 million Euros, CAEs generously cover 40% to 70% of the endeavor, ensuring payback within 2 to 4 years.
- Replacement of boiler by process heat pump: Similar to the standard HVAC system upgrades, expect 25% to 35% energy savings. The investments, ranging from 50,000 to 100,000 Euros, are covered 40% to 70% by CAEs. This reduces the payback time to 1-3 years and shortens the implementation to under 6 months.
- Heat recovery: Combine boiler-to-heat-pump conversions with heat recovery techniques for significant returns. CAEs can cover 60% to 100% of costs, increasing the profitability of the projects.
STX Group encourages businesses around the world to adopt GHG emissions reduction targets that align with the Paris Agreement. We also recommend performing an in-depth analysis of potential reductions, guided by the Science Based Targets initiative or ISO 14068, to address both direct and value chain emissions based on scientific principles.
How Can We Help You?
STRIVE by STX enhances your company's energy efficiency with customized solutions, including savings analysis, project implementation, management of Energy Service Companies (ESCOs) and financing options. Get in touch with our energy efficiency experts and learn how to best reach your energy efficiency goals.
