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Energy efficiency agreements in Finland

Agreement scheme and lessons learned


Ukraina Workshop on energy efficiency agreements
Kiev 5th November 2013

Motiva Oy
Owned by the Finnish State
(100%)

Number of personnel 54
Expert services

ANNUAL
TURNOVER

8,93

7,96

Mainly for Finnish governmental


authorities (ministries,
agencies, institutes)

Motiva Services Oy

million

5,9

6,1

5,
1
4,0

Owned by Motiva Oy (100 %)


Number of personnel 17
Expert services
For companies, associations,
municipalities, international
projects
2007 2008 2009 2010 2011 2012

Estimate
d

Method of Operation
To bind
methods
technologies
communication

into an efficient entity.


Motiva produces, refines and disseminates
information, develops methods and boosts the
introduction of advanced technology.

Energy Efficiency Agreements in Finland

5th November 2013

Mrs Hille Hyyti

Energy Conservation Agreements 19972007


Energy Efficiency Agreements 20082016
Voluntary, no legislation connected to the agreement
A flexible tool to implement national climate and energy strategy and
some EU policies related to the energy efficiency
An alternative and complementary mean for regulation and taxes
Benefits for companies and other organisations to join agreements
Flexible, goal-directed and systematic procedure to improve energy
efficiency and save costs
Possibility to prove energy efficiency to environment authorities (industry)
Energy audits and investments in energy efficiency actions are closely
connected to the agreement scheme and are subsidised by the
government

Sites and organisation report annually energy efficiency actions

5th November 2013

Mrs Hille Hyyti

Energy Efficiency Agreements covers almost the whole


society in Finland
ENERGY EFFICIENCY AGREEMENT AND
ENERGY PROGRAMME FOR MUNICIPAL
SECTOR

ENERGY EFFICIENCY AGREEMENTS FOR


BUSINESS SECTOR 2008-2016
INDUSTRY
INDUSTRY

MUNICIPALITIES
MUNICIPALITIES

ENERGY
ENERGY SECTOR
SECTOR

JOINT
JOINT MUNICIPALITIES
MUNICIPALITIES
SERVICES
SERVICES

ENERGY EFFICIENCY AGREEMENT FOR OIL


SECTOR HYL III

ENERGY EFFICIENCY AGREEMENT FOR


PROPERTY AND BUILDING SECTOR
2010-2016

DISTRIBUTION
DISTRIBUTION OF
OF LIQUID
LIQUID HEATING
HEATING
AND
AND TRANSPORT FUELS

HOUSING
HOUSING PROPERTIES
PROPERTIES

OIL
OIL HEATED
HEATED BUILDINGS
BUILDINGS

COMMERCIAL
COMMERCIAL PROPERTIES
PROPERTIES

ENERGY EFFICIENCY AGREEMENTS FOR


TRANSPORT SECTOR

GOODS
GOODS TRANSPORT
TRANSPORT AND
AND LOGISTICS
LOGISTICS

ENERGY PROGRAMME FOR FINNISH FARMS


2010-2016
FARMS
FARMS

PUBLIC
PUBLIC TRANSPORT
Source: Ministry of Employment and the Economy

5th November 2013

Mrs Hille Hyyti

Energy efficiency agreement for business sectors 20082016: energy, industry, services
EKBRANCH ASSOCIATIONSMINISTRY (EE)
BRANCH / SECTOR SPECIFIC ACTION PLANS

Energy Services
General, service
Car selling and repairing
Hotel and Restaurant sector
Commerce sector
General, industry
Wood product industries
Technology Industries

9
Mrs Hille Hyyti
5th November 2013

Plastic industries
Chemical Industries
Food and Drink Industries

Energy Production
Energy Intensive Industries

Source: Ministry of Employment and the Economy

Key elements and goals of energy efficiency


agreement
Continuous improvement of energy efficiency, according to the Plan
Do Check Act- model. It is the key element in the agreement.

According to the action plans, the companies shall include continuous


improvement of energy efficiency and increasing of the use of
renewable energy sources in their management systems always when
it is possible economically and technically and considering safety and
environmental aspects.

5th November 2013

Mrs Hille Hyyti

10

Continuous improvement
a key element in agreements
Energy Efficiency Management System
Plan > Do > Check > Act -principal

5. Management review

1. Energy policy

2. Planning
4. Surveillance
and remedial action
3. Implementation and
execution
5th November 2013

Mrs Hille Hyyti

11

Energy Efficiency Management System (EEMS)


Defines the minimum requirements of procedures for continuous
improvement
Guides the company towards creating a focused and systematic mode
of operation aimed at improving energy efficiency
EEMS can complement existing management systems or function as
a separate tool to steer management
If necessary, EEMS may be easily modified to comply with the
requirements of such as ISO 50001 Energy Management Standard

5th November 2013

Mrs Hille Hyyti

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What are the benefits for a company?

Energy efficiency increases


Energy costs decrease
Less environmental impacts
Subsidies for energy audits
Subsidies for energy efficiency investments
Prove of energy efficiency for environmental permits
Better public image

=> Competitiveness increases

5th November 2013

Mrs Hille Hyyti

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What are obligations to a company?


Implementation of the Energy Efficiency Management System (energy
intensive industry and power production)
Setting targets
Energy audits and analyses
Implementation of the energy conservation plan
Energy conservation investments
Energy efficiency in all investments and procurements
Development of follow-up of energy consumption
Education of employees
Internal and external communication
Annual reporting

5th November 2013

Mrs Hille Hyyti

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Energy Efficiency Agreements 2008-2016


Agreement with Finnish industries:
Covers now about 80% of the total use of energy in Finnish industry
Energy intensive industry
Almost 100% of use of energy

Energy production
More than 95% of electricity production

Small and middle sized companies (food, chemistry, plastic, wood,


technology)
Depending on a program: 3570% of the energy use

5th November 2013

Mrs Hille Hyyti

15

All business sectors, results in 2008-2011


Subsidies to energy audits of 5.7 million euros (417 audit places)
Most of energy used in industry has been subject to energy audits at least
once
Over 60% of the building volume in the services sector has undergone an
energy audit at least once

Subsidies to energy efficient investments of 31 million euro (221


projects)

5th November 2013

Mrs Hille Hyyti

16

All business sectors, results in 2008-2011


Total yearly repeated cumulative savings of 5.3 TWh (electricity and
heat + fuel)
Reported energy efficiency investments of 284 million euro (whole
business sector, 2008-2011)

5th November 2013

Mrs Hille Hyyti

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All business sectors, results in 2008-2011


Energy intensive industry made 2/3 of saving
impact
Private
services
Energy Services

Medium
size
industry

Energy Production

Energy Intensive industry

5th November 2013

Mrs Hille Hyyti

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How to establish a succesfull energy efficiency


agreement scheme?
How to establish an succesfull energy efficiency agreement cheme?
What is the timeline?
Who are the key players?
What kind of agreement?

What is important in the implementation?


How to monitor the results?

5th November 2013

Mrs Hille Hyyti

19

EU LTA-UPTAKE

Supported by

The timeline of energy efficiency agreement


Go/no-go
decision

0
Scanning

Timetable set

1
Initiation

Evaluation

LTA signed

2
Negotiation

3
Implementation

Go/no-go decision
for new LTA

4
Evaluation

New
LTA

Development of financial incentives


Development and pilot projects
General marketing

New projects
Marketing

Marketing of new LTA

Visual image design


Development of monitoring system

Upkeep & development

Support to participating companies


Information dissemination
Time-frame 12-18 months

Time-frame 359 years

The key players


AUTHORITY
large scale aims, big picture
goals for agreements
development
legislation
EU directive interfaces
financial incentives
evaluation

INDUSTRIAL ASSOCIATION
goals for sector agreements
development
marketing
motivation
monitoring, reporting
participation in reporting
co-operation forums
guidance, training

PARTICIPANT / COMPANY
goals for company

AGENCY / OPERATOR
monitoring system development & operation

energy use scan, audits


saving measures
energy monitoring
training of staff
reporting
co-operation
development of own
performance

database, classification of data


data collection, processing, evaluation
reporting
guidance, training
marketing, motivation

5th November 2013

CONSULTANTS, ENERGY AUDITORS


ESCOs
Mrs Hille Hyyti

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SUCCESSFUL ELEMENTS IN A LONG-TERM


AGREEMENT
Good communication(LTA)
between authorities and industrial associations
associations represent their members
co-operation, open discussion
Simple administration
low costs without risking quality
better cost-effectiveness
different targets or even LTAs for energy intensive industry and SMEs
learning by doing
Motivating targets
financial incentives are needed to motivate participating companies
challenging company-specific targets
precisely phrased commitments
5th November 2013

Mrs Hille Hyyti

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SUCCESSFUL ELEMENTS IN A LONG-TERM


AGREEMENT
(LTA)
Efficient monitoring and
reporting
needed to prove the effectiveness of the LTA
resources for developing, maintaining & running
good guidelines and strict deadlines are needed
web-based tool makes reporting easier
good quality of input data is essential
Support to participants
from association or operator
financial support - direct or indirect
marketing, reporting
advice, tools, best practices, working groups
development projects !
5th November 2013

Mrs Hille Hyyti

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SUCCESSFUL ELEMENTS IN A LONG-TERM


AGREEMENT
Combining with existing activities
administration / participant
energy auditing, energy management
existing energy efficiency subsidy schemes
LTA puts energy efficiency on the agenda
Personal enthusiasm
key player representatives & participating companies
faith, commitment, expertise, communication skills

5th November 2013

Mrs Hille Hyyti

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MAIN BARRIERS AND WEAKNESSES

Uncertainty in government policies


Uncertainties in target-setting and cost-effectiveness
Missing knowledge and tools
Limited resources in administration
Limited resources in participating companies
Confidentiality risks
Heavy reporting

5th November 2013

Mrs Hille Hyyti

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Mrs Hille Hyyti

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