Accelerating investments in industrial energy efficiencyAccelerating investments in industrial...
Transcript of Accelerating investments in industrial energy efficiencyAccelerating investments in industrial...
Accelerating investments in industrial energy efficiency
A demand side view on barriers and solutions
Stefan M. BuettnerHead of International Affairs & Strategy
Institute for Energy Efficiency in Production / EEP
Overcoming Barriers to Investing in Energy EfficiencyIntensive Learning Session
EE Global Forum 2018UN City, Copenhagen
21 May, 2018
Distribution of Final Energy Consumption in EU-28
Source: Eurostat/ EEP, 2017
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Boxplot %-share of sectoral Final
Energy Consumption (EU-28, 2016)
Large variation across countries
8%12%15%17%16%18%16%19%20%19%20%21%23%23%23%24%25%26%25%27%27%28%30%28%30%34%34%35%
43%44%
14%19%
31%12%
36%28%
33%26%27%28%
30%23%
28%18%
30%34%
26%24%24%16%
23%26%
20%33%
28%22%22%23%19%
21%
0% 20% 40% 60% 80% 100%
MT:Malta
CY:Cyprus
DK:Denmark
LU:Luxembourg
HR:Croatia
UK:United Kingdom
EE:Estonia
EL:Greece
FR:France
LT:Lithuania
LV:Latvia
IE:Ireland
IT:Italy
ES:Spain
PL:Poland
HU:Hungary
EU28:EU (28 countries)
EA19:Euro area (19 countries)
SI:Slovenia
PT:Portugal
BG:Bulgaria
DE:Germany
NL:Netherlands
RO:Romania
CZ:Czech Republic
BE:Belgium
AT:Austria
SE:Sweden
SK:Slovakia
FI:Finland
Industry
Transport
Services
Residential
AgriFor
Other*
Final Energy Consumption EU-28, 2016 (by sector)
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Example: German Industry‘s Electricity & Energy Consumption
Big influence on electricity sector, but still also depending on fossil fuels
17;2%
251;34%
246.7, 33%
48;7%
31;4%
21; 3%
122;17%
Energy Consumption in Industry 2016 736,7 TWh
Mineralöl
Gase
Strom (inkl. EE)
Fernwärme
EE-Wärme
Sonstige
Kohle
11;3; 2%
138.7, 26%
246.7, 47%
128.5, 25%
Electricity Consumption in Germany 2016
525,2 TWh
Verkehr
GHD
Industrie
Haushalte
Source: AGEB Source: UBA
Oil
Gas
Electricity
incl. RE
District
Heating
Heating RE
Others
Coal
Trade and
Services
Transport
Industry
Households
Industry consumes 47% of German electricity (246,7 TWh). This is just 1/3rd of industrial end energy use addressing heat important, too.
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Source: OECD/IEA (2017)
30%
10%
6%12%
8%
8%
15%
1%
10%
Building envelope
Heating, ventilation, cooling
and controlsAppliances
Lighting
Energy-intensive industry
Other industry
Premium paid for energy
efficient vehicleElectric vehicle subsidy
Global investment in energy efficiency by sector, 2016
58%16%
26%
BuildingsTransport
Industry
4 x !
50+% of them
in industry
sectors2,5 x !
USD 231
billion
Annual
investment into
industrial EE
needs to
increase by
factor 10
Source: OECD/IEA (2017)
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WE NEED TO LOOK MUCH CLOSER AT THEINDUSTRIAL SECTOR
Understanding Industrial Energy Efficiency
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Which incentive is most wanted
36%41%
46%53%
5%
5%
8%
6%
8%
16%
12%9%
8%
5%3% 1%
8%
7%8% 5%10%
12%11% 14%
23%14% 8%
11%1% 2% 5% 2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Micro Companies Small Companies Medium-sized Companies Large Companies
Which type of incentive could motivate you most likely to invest in energy efficiency measures? (multiple choice: max. 2, n=319, n'=454)
none
other
relief of approval procedures /
deregulation
reduced VAT rate on energy
efficient goods sales
deduction of special expenses for
single companies
anticipated / degressive
depreciation
investment allowance
investment grant / investment
premium
Direct investment grant are favoured across the board
© EEP | 9 Nov ember 2017 | Stef an M. Buettner | Page 8
Source: EEP Energy Efficiency
Barometer 1nd half year 2015
Planned Future Investments
46%38%
32%27%
5%
6%
7% 19%
8% 18%18%
15%
22% 20%24% 21%
19% 18% 18% 18%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Micro Company Small Company Medium-sized Company Large Company
In the coming 12 months, what percentage of your total investments can be attributed to improving energy efficiency? If you don’t know the exact figure, please estimate. (n=474)
>=20%
10% to <20%
5% to <10%
>0% and <5%
0%
40% of companies plant to invest at least 10% in EE
Source: EEP Energy Efficiency
Barometer 2nd half year 2016
Source: EEFIG, 2017
3) Internal Corporate PolicyThe strategic value of EE-projects in companies is setaccording EU & national policy priorities.
2) Energy AuditsInadequate standardisation, opportunities detected but not obligatory implemented.
1) Core & non-core industrial processesHigh return investments in periphery processes.
Moving towards Energy Efficiency Investment
Steps to be taken – Where to focus on (I)
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Source: EEFIG, 2017
6) Risk InsuranceAn enhance of technical rating of transactions.
5) Specific Internal Energy Efficiency FundsA way to identify pipelines of EE-projects and other sourcesof financing.
4) Energy Efficiency NetworksA potential strategic instrument for EE project delivery.
7) Better Standards & TrainingA need to reinforce the supply chain of EE projectinvestment and execution.
Moving towards Energy Efficiency Investment
Steps to be taken – Where to focus on (II)
Whatnext?
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more details in issues paper and chairman‘s conclusions
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Current technologies, evaluated as severe barrier by energy-intensive companies
Low energy-intensive companies see economic and behavioural barriers less severe thanmore energy-intensive companies.
1.5
1.6
1.7
1.8
1.9
2
2.1
… competence-related
… technical
… information-related
… economical
… awareness-related
… organisational
… behaviour-related (other priorities)
… other
Barriers by energy intensity (n = 735)
20% of companies with low energyintensity
20% of companies with large energyintensity
80% of companies with low energyintensity
Source: EEP Energy Efficiency Index 2017/1
© EEP | June 2018 | Dipl.-Vw. Stef an M. Buettner et al. | Page 8
Industrial sector
Mid-Cap Companies andSMEs
Custom-fit financeproducts
Large Energy Intensive Companies
Energy Management Systems as a core value
Large Non-Energy Intensive Companies
Energy Efficiency Awareness
Moving towards Energy Efficiency Investment
Tailored measures
Source: EEFIG, 2015 A common issue: decision process for EE
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Barriers, perceived more severe by micro and small companies.
Large companies rate competence-related barriers relative severe.
Awareness raising, the most deviating.
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
3
3.1
3.2
awar
enes
s-re
late
d
info
rmat
ion-
rela
ted
beh
avio
r-re
late
d
orga
niza
tio
nal
com
pete
nce
-re
late
d
tech
nic
al
eco
no
mic
al
oth
er
1 = not relevant; 4 = very relevant
Barriers by company size (n=739)
Micro companies(1-9 employees)
Small companies(10-49 employees)
Medium-sizedcompanies(50-249 employees)
Large companies(>250 employees)
Source: EEP Energy Efficiency Index 2017/1
© EEP | June 2018 | Dipl.-Vw. Stef an M. Buettner et al. | Page 9
Staff awareness - what do companies do so far?
25% of micro companies make their staff aware mainly through other activities.
Most of the companies do not increase their staff awareness due to the lack of knowledge.
20%
18%
20%
19%
17%
6%
Do you increase your staff‘s awareness of energy efficiency?
Yes, by.. (Multiple choice) (n=632, n‘=2510)
… convincing employees in one-on-one discussions
… info sessions, trainings or other means of communication
… making the topic part of the company’s employee suggestion system
… setting out clear provisions on energy saving behaviour
… planned energy efficiency measures (as cause)
… other activities
56%
21%
23%
Do you increase your staff‘s awareness of energy efficiency?
No, because … (Multiple choice) (n=185, n‘=267)
… the s teps to be taken are not clear
… this is not of interest
… of other reasons
Source: EEP Energy Efficiency Index 2017/1 Source: EEP Energy Efficiency Index 2017/1
© EEP | June 2018 | Dipl.-Vw. Stef an M. Buettner et al. | Page 11
few copies available today:
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Awaiting results from ~ 1,000 companies of 27 sectors
How are energy efficiency measures financed?
Source: EEP Energy Efficiency
Barometer 2nd half year 2016
How do you finance energy efficiency measures? Normal investment budget
Dedicated budget for energy efficiency
How do you finance energy efficiency measures? Through… Equity
Loan
LeasingHire-purchaseEnergy Efficiency Mortgage
Energy Efficiency Project Loan
Energy Efficiency Fund
Crowdfunding Energy Services ContractAnother, please describe
The Energy Efficiency Barometer of Industry (#EEBarometer)
Open until 31 July: www.eep.uni-stuttgart.de/eeei
• Reduce unknowns, risks and uncertainties
• informs decision makers about actual situation and needs of the economy
• analyses the impact and effectivity of pilot and development schemes
• informs finance sector and service providers about feasible approaches and
mechanisms
• shows were companies stand in relation to others
• delivers evidence on where and how to act to increase energy productivity
• allows, in the medium-term, cross-country, sector-specific analyses -> TOP-Runner
www.eep.uni-stuttgart.de/eeei
United States:
Canada:
Mexico:
Spain:
Poland:
World:
Sweden:
Latvia:
English ∙ Spanish ∙ French ∙ Russian ∙ German
Barometer established
Target country group B
Country partners
Partnership under investigation
Language partners
Target country group A (G20+EEA)
The #EEBarometeris covering 88 countries in their 10
native languages
United Kingdom: Germany:Italy:
Slovenia:
Link: https://ilias3.uni-stuttgart.de/goto_Uni_Stuttgart_svy_1478166.html?lang=en
Asset Class Energy Efficiency (ACE) - Survey
In cooperation with:
Dipl.-Volkswirt
Stefan M. Buettner
Head of International Affairs & StrategyInstitute for Energy Efficiency in ProductionNobelstraße 12 │ 70569 Stuttgart | Germany
Telefon +49 711 970-1156
[email protected]@eep.uni-stuttgart.de
www.ipa.fraunhofer.dewww.eep.uni-stuttgart.de
Thank you!
Any Questions?
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