VOLUNTARY ENERGY EFFICIENCYAGREEMENTS IN FINLAND

TAIEX SRSP Workshop

on innovative support of energy efficiency

in the Czech Republic

29 May 2018

Ulla Suomi, Motiva Oy , Finland

BackgroundEnergy Efficiency Agreements

Energy Efficiency Agreements

1st agreement scheme was initiated in Finland already in 1997

Already 3rd agreement period started 2017

Energy Efficiency Agreements have provided desired results

Voluntary agreements are an alternative to new national legislation or other new coercive

means.

Agreement parties: Ministry – Branch Associations – Companies/Municipalities

Motiva acts as an operator of the scheme

ENERGY

CONSERVATION

AGREEMENTS

1997–2007

ENERGY EFFICIENCY

AGREEMENTS

2008−2016

ENERGY EFFICIENCY

AGREEMENTS

2017−2025

INDUSTRIES │ MUNICIPAL SECTOR│ PROPERTY SECTOR │ OIL-HEATED REAL ESTATES

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FINLAND'S FIRST CHOICE IN THE IMPLEMENTATION OF THE EED AND THE FORMER ESD

Energy Efficiency Agreements

Energy Efficiency Agreements are one of the eight measures notified for the

implementation of the Energy Efficiency Directive (EED) (2012/27/EU) EED Article 7.

Energy Efficiency Agreements represent the primary measure for Finland to

fulfil the strict EU obligations on energy efficiency

The goal in 2013 was that energy efficiency measures implemented by the participants in the

Energy Efficiency Agreements will in 2020 cover more than half of the binding national

cumulative energy savings target set for Finland for the implementation period 2014−2020

according to the EED article 7 (49 TWhcum).

Based on the measures implemented and reported during the years 2014−2016 by participants,

this target will be achieved and even exceeded.

The nationally binding energy efficiency obligations can be implemented in Finland

through voluntary measures, only if the agreement scheme will continuous to be

comprehensive and it meets the set targets on improvement in energy efficiency.

Targets for the coverage set in all agreements

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Energy Efficiency Agreements 2017-2025

MUNICIPAL SECTOR

ENERGY EFFICIENCY AGREEMENT

PROPERTY SECTOR

ENERGY EFFICIENCY AGREEMENT

HÖYLÄ IV − OIL SECTOR

ENERGY EFFICIENCY AGREEMENT

DISTRIBUTION OF LIQUID

HEATING FUELS

Oil-heated real estates

INDUSTRIES

ENERGY EFFICIENCY AGREEMENT

CITIES & MUNICIPALITIES &

JOINT MUNICIPALITIES

COMMERCIAL PROPERTIES

HOUSING PROPERTIES

ENERGY SECTOR

Energy Production l Energy Services

INDUSTRY

Energy Intensive Industry l Food and

Drink Industry l Chemical Industry

Technology Industry l Wood Product

Industry l Industry - General

SERVICE SECTOR

Commerce Sector l Hotel and

Restaurant Sector l Motor Trades &

Repairs l Services – General

Responsible ministries:

MEAE = The Ministry of Economic Affairs and Employment

ME = The Ministry of Environment

MEAE

MEAE

MEAE

MEAEMEAE | ME MEAE | ME

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BenefitsEnergy Efficiency Agreements

Energy Efficiency Agreements

A central role in Finnish energy policy The primary means in the implementation

of the EU Energy Efficiency Directive (EED)

Serve also to implement

the Energy Performance of

Buildings Directive (EBPD)

Facilitate the realization

of the obligations set for

renewable energy

Help to achieve the targets set

as obligations for greenhouse

gas emissions

Improve Finland’s security of supply

and self-sufficiency on energy

Create green growth &

markets for clean

technology solutions

Exclude the detrimental effects

caused by taxation or legislation

on the competitive edge of

companies

An alternative and supplementary measure

instead of new legislation/coercive

measures

Increase cost efficiency & and improve operational

capabilities in municipalities and companies

Help to meet international climate-

related obligations

NATIONAL BENEFITS

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BENEFITS FOR THE PARTICIPANTS

Expedient energy use is

responsible energy use

The climate load

will be reduced

Saving unnecessary energy costs will

improve profitability and operating profit

The agreement scheme will

become a natural part of

management systems

Energy subsidies granted

by the Government can be

utilised for energy efficiency

improvements

Improving energy efficiency

will turn into a useful

mode of action

Builds and improves

positive public image

Energy Efficiency Agreement

A more flexible and sensible

alternative compared to new national

legislation or other coercive means

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INDUSTRIES │ MUNICIPALITIES │ PROPERTY AND BUILDING SECTOR

Subsidies for energy audits and energy efficiency investments

The Government subsidies* the Motiva-model energy audits and analyses.

According to Article 6 of the national Energy Efficiency Act (1429/2014), the mandatory

energy audits of large companies are not subsidised

The participants in Energy Efficiency Agreements can apply for discretionary

subsidies* from the Government for conventional energy efficiency investments

The Government investment subsidies* are case-dependently available for energy

efficiency investments* using new energy-efficient technology for all

* Energy subsidies are not granted for housing properties

More information can be found behind the link: Energy Aid

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MANDATORY ENERGY AUDITS OF LARGE COMPANIES │ COMPANIES SUBJECT TO AN

ENVIRONMENTAL PERMIT

Concessions to legally binding obligations

A large company is considered to meet the requirements set in Article 6 of the

national Energy Efficiency Act (1429/2014) regarding the mandatory energy

audit, if

the company has joined an Energy Efficiency Agreement

and

it has implemented an EES+ (Energy Efficiency System +), which does not have to be

certified

Companies participating in an Energy Efficiency Agreement and subject to an

environmental permit are not subject to any separate requirements relating to

energy efficiency in their environmental permits.

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Targets and ObligationsEnergy Efficiency Agreements

INDUSTRIES │ MUNICIPAL SECTOR │ PROPERTY AND BUILDING SECTOR

Participant target setting

Indicative target in energy units will be set in accession documents

Target for the whole period will be set for the year 2025 and intermediate target

for the year 2020

Target for the year 2025 corresponds 7.5% of the participant energy use *

Target for the year 2020 corresponds 4% of the participant energy use

The targets will be calculated on the participant’s most recent available energy

use which corresponds normal operation

Participant’s absolute energy use need not in years 2020 and 2025 to be less

than in the year reported in the accession document

To be countable for the follow up of the achievement of the targets energy

savings for the implemented measures need to be in force in the follow up year

* If the participant wants to use 2014−2016 reported measures targets are higher (10,5% and 7%)

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OBLIGATIONS DEFINED IN THE AGREEMENTS

Participants commit to continuous improvement

The aim is to include continuous improvement in energy efficiency, as part of the existing or planned management systems or operating plans.

To achieve the targets, the participant is obliged to:

Organize and plan the implementation

Figure out the possibilities for improvement in energy efficiency

Implement cost-effective energy efficiency improvement measures

Take energy efficiency into consideration in planning and purchasing

Train the staff and provide communication on energy efficiency matters

Annual reporting

The participant also strive to implement new energy efficient technology and increase the use of renewable energy sources.

Every participant carries out their measures from their own starting point and agrees to do their best to achieve the targets

The work requires commitment by the management, setting long-term goals and targets as well as systematic implementation and monitoring of these tasks

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Monitoring and Impact Assessment

Energy Efficiency Agreements

SEEN HIGHLY IMPORTANT FROM THE BEGINNING

Monitoring and reporting is essential

Well functioning monitoring system for the voluntary Energy Efficiency Agreement scheme (EEA) as well as for Energy Audit programme (EAP) has had a central role to: Reveal the results Create trust and credibility to all parties – not only for Government Achieve long term top-level commitment.

Reporting obligations and the monitoring system were planned at the same time as the policies Reporting obligations for companies/communities in Energy Efficiency Agreements and in granted

subsidy schemes Momentum is often at least partly lost if monitoring decision is done when the policies are already in

implementation phase

Long term top-level commitment by the Government Energy Efficiency Agreements have been part of all national energy and climate policy and strategy

papers since they were launched 1997 and Energy Audits already before, since 1992 Investment subsidies for energy efficiency (EE) measures available continuously since 1998 Reasonable recourses targeted for programme administration and continuous maintenance and

development of the monitoring system available

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Data collection process based on online database

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Companies and Municipalities (~800***)

Branch associations

Annual reporting(~3 500/a)

EEA** database

Accession phase data

EA* database

Data since 1999 stored in databaseNumber of annual inputs approx.

100…200 per annual report

Supplementary chased data and clarifications

Motiva ****

EAs* and EEAs** in same database − different user interface and users

Data control and check

* EA = Energy Audits ** EEA = Energy Efficiency Agreements*** 2008-2016

Impact assessments for different reporting

**** Separate unitin Motiva

Motiva

19

INDUSTRIES* │ MUNICIPAL SECTOR │ PROPERTY AND BUILDING SECTOR

DESCRIPTIONS MADE FOR ESD AND EED REPORTING PURPOSES

Description of the measure and energy savings calculations

Descriptions, premises and assumptions for calculation methods used for Energy

Efficiency Agreements can be found in the forth NEEAP Annexes in 2017

NEEAP-4 2017 translated in English

Calculations for Energy Services Directive (ESD) – see Annex 2

Measures: RA-08-YM, KU-02-TEM, PA-02-TEM, TE-02-TEM, TE-03-TEM

Clustered and slightly modified method compared to the ESD calculations to fulfil EED

Art. 7 purposes – see Annex 1/Annex 3 (measure KETO-1)

Note: Translations are unofficial and made by the EU Commission

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What we have achievedEnergy Efficiency Agreements 2008−2016

SEE MORE:

What we see is behind the success

Energy Efficiency Agreements

Keys to success

VoluntarinessFeasibility &

cost-efficiencyEffectiveness Transparency

CommitmentTrust &

cooperation

Financial and

operational supportStructural factors

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