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Energy efficiency agreements in Finland Agreement scheme and lessons learned Ukraina Workshop on energy efficiency agreements Kiev 5th November 2013 Hille Hyyti

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Title: Energy efficiency agreements in Finland Agreement scheme and lessons learned Ukraina Workshop on energy efficiency agreements Kiev 5th November 2013 Hille Hyyti


1
Energy efficiency agreements in
FinlandAgreement scheme and lessons
learnedUkraina Workshop on energy efficiency
agreementsKiev 5th November 2013Hille Hyytiä
2
(No Transcript)
3
  • Motiva Oy
  • Owned by the Finnish State (100)
  • Number of personnel 54
  • Expert services
  • Mainly for Finnish governmental authorities
    (ministries, agencies, institutes)

ANNUAL TURNOVER million
8,93
7,96
6,1
5,9
5,1
  • Motiva Services Oy
  • Owned by Motiva Oy (100 )
  • Number of personnel 17
  • Expert services
  • For companies, associations, municipalities,
    international projects

4,0
2007
2008
2009
2010
2011
2012
Estimated
4
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.
5
Motivas milestones
6
Energy Efficiency Agreements in Finland
7
Energy Conservation Agreements 19972007Energy
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

8
Energy Efficiency Agreements covers almost the
whole society in Finland
Source Ministry of Employment and the Economy
9
Energy efficiency agreement for business sectors
2008-2016 energy, industry, services
Source Ministry of Employment and the Economy
10
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.

11
Continuous improvement a key element in
agreements Energy Efficiency Management System
Plan gt Do gt Check gt Act -principal
5. Management review
  • 1. Energy policy

2. Planning
4. Surveillanceand remedial action
3. Implementation and execution
12
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

13
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
  • gt Competitiveness increases

14
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

15
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

16
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)

17
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)

18
All business sectors, results in 2008-2011Energy
intensive industry made 2/3 of saving impact
Private services
Medium size industry
Energy Services
Energy Production
Energy Intensive industry
19
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?

20
The timeline of energy efficiency agreement
21
The key players
  • INDUSTRIAL ASSOCIATION
  • goals for sector agreements
  • development
  • marketing
  • motivation
  • monitoring, reporting
  • participation in reporting
  • co-operation forums
  • guidance, training
  • AUTHORITY
  • large scale aims, big picture
  • goals for agreements
  • development
  • legislation
  • EU directive interfaces
  • financial incentives
  • evaluation
  • PARTICIPANT / COMPANY
  • goals for company
  • energy use scan, audits
  • saving measures
  • energy monitoring
  • training of staff
  • reporting
  • co-operation
  • development of own performance
  • AGENCY / OPERATOR
  • monitoring system development operation
  • database, classification of data
  • data collection, processing, evaluation
  • reporting
  • guidance, training
  • marketing, motivation
  • CONSULTANTS, ENERGY AUDITORS
  • ESCOs

22
SUCCESSFUL ELEMENTS IN A LONG-TERM AGREEMENT
(LTA)
  • Good communication
  • 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

23
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 !

24
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

25
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

26
Implementation of an energy management system
27
Some conclusions
  • Companies need support in implementing and
    using the Energy Efficiency System (EES)
  • Some good practices
  • An unofficial steering group
  • Consists of 10-15 representatives from industry
    and power plants
  • Meetings 4-8 times a year
  • Make the decision about new projects supporting
    implementing of EES
  • Development of projects examples energy
    efficiency of steam and condensate systems,
    measurement of energy efficiency, energy
    efficiency of waste energy etc.
  • Seminars dealing with topical issues, training,
    material, site visits (!)

28
Some conclusions
  • Benefits from the Energy Efficiency System (EES)
  • Attitude of the staff has changed to be more
    positive to energy efficiency, it is easier to
    make proposal for energy efficiency
  • Internal audits are excellent occasions to
    exchange good practices and to learn from each
    other -gt new ideas and better motivation!
  • Notable energy and cost savings without
    investments by changing course of action,
    optimising processes, etc.
  • Some companies with EES have an own budget for
    energy efficiency investments excellent
    savings!
  • Bottlenecks
  • How to make the manager to understand the
    importance of energy efficiency
  • Resources lack of experts, lack of money for
    investments
  • Lack of information, examples, good practices
  • Inadequate measuring, monitoring and reporting

29
Some conclusions
  • Energy Efficiency System has been incorporated
    into the companys existing management system
    (ISO14001)
  • in about 87 of energy intensive companies
    (mills) and
  • in about 93 of power plants
  • According to three years of experience in the
    Finnish energy intensive sector it takes
  • 0.51 year to set the policy, set the targets,
    organize the work and define the resources
  • 11.5 years to build up the system according to
    the EES (write new and complement existing
    protocols, etc.)
  • 3 years to establish energy efficiency as part of
    everyday operation

30
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