Management System of Intensive Energy Consumption

The Management System of Intensive Energy Consumption (SGCIE) is a programme integrated in into Portugals Energy Efficiency Action Plan. It comprises the modification of excise duties on oil and energy products (ISP) applied to industrial fuels establishing an incentive mechanism for GHG reduction, redifing a new Management Regulation of Energy Consumption in industry (RGCE) programme (created under Decree-Law n º. 58/82 of November 26th and Decree-Law n º. 428/83 of December 9th). This scheme aims to promote energy efficiency and energy consumption monitoring in energy-intensive facilities (those consuming more than 500 toe/year), thus broadening the scope of the previous RGCE (which applied to facilities consuming over 1000 toe/year). The SGCIE imposes binding energy audits, with a 6-year periodicity, in energy-intensive facilities with consumption above 1000 toe/year. An 8-year periodicity for energy audits is applied to facilities with energy consumption between 500 and 1000 toe/year. Facilities operators are obliged to conduct an energy audit and elaborate an Energy Consumption Rationalization Plan (PREn), establishing targets for energy and carbon intensity and specific energy consumption, which also outlines energy rationalization measures. The Plan must be submitted to the DGEG through an online system (www.adene.pt/SGCIE) to the Directorate General for Energy and Geology (DGEG), as well as submit as biennial execution and progress reports. Upon DGEG's approval, as the competent authority that supervises and inspects the SGCIEs operation, the PREn become a Rationalization Agreement for Energy Consumption (ARCE). The ARCE provides facility operators with excise dutiy exemptions (ISP) on oil and energy products (coal, oil coke, fuel oil and oil gases), as well as possibility to apply for incentives on energy audit costs and on investments in energy management and monitoring equipment. Exemptions in excise duties are foreseen in the national budget for fuels used either by consumers committed to the reduction of CO2 emissions in the framework of the National Allocation Plan for Emission Allowances (PNALE) or by consumers that have a Rationalization Agreement for Energy Consumption. Facilities under the National Allocation Plan for Emission Allowances (PNALE) are not covered by SGCIE, but they may participate on a voluntarily basis, as can facilities with annual energy consumptions lower than 500 toe. Implementation of the ARCE is monitored thorugh execution and progress reports, with penalties forseen for facilities that do not meet their targets. Energy audits, Energy Consumption Rationalization Plans and biennial execution and progress reports have to be elaborated by auditors recognized by DGEG according to their academic education and professional experience, as regulated by specific legislation (Portaria n º 519/2008, of July 25th).

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