Financing the erngy efficiency in industry via Voluntary ... · • Alternative and complementary...
Transcript of Financing the erngy efficiency in industry via Voluntary ... · • Alternative and complementary...
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Financing the energy efficiency in industry via Voluntary Agreements in Finland
National Roundtable on Financing Energy efficiency
Prague 5th October 2017
Kati Ruohomäki
Confederation of Finnish Industries EK
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What is EK?
EK represents the interests of its members in
business and employment matters, and in
decision-making in society.
EK represents the entire private sector and
companies of all sizes.
• 25 member federations
• 16,000 member companies, 96% of which
are SMEs
• Around 950,000 employees
When a company joins an employers´
association representing its own branch, it also
becomes a member of EK.
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Energy Efficiency Agreements 2017-2025: http://www.energiatehokkuussopimukset2017-2025.fi/en/
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
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Why Voluntary Energy Efficiency Agreement?
• Alternative and complementary measurement for regulations to implement the energy efficiency directive
EED and the national climate and energy strategies
• A present phase 2017-2025 is based on earlier phases in place since1992: Good results!
Financial benefits for a company:
• Subsidies for energy audits for SME’s
– 50% of energy audits in micro, small and medium-sized enterprises
– 40% of other energy audits, analyses and investigation projects
• Subsidies for conventional energy efficiency investments (case-dependently)
– 20% for participants; 25% when an energy service company (ESCO) is used
– Pay-back time needs to be over 3 years. If 3-5 years, additional explications are required from the large
companies.
• Subsidies for new technology energy efficiency investment (case-dependently)
– 40% maximum
No energy tax connection – separate schemes function better!
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Results from the previous period of 2008-2016: reported by about 460 joined companies with over 4200 sites
Industry and Private Services, 11 TWh/a:
• Savings of heating energy and fuels 9 TWh/a
• Electricity savings 2 TWh/a
• CO2 savings about 3.2 mill. Ton/a
• About EUR 580 million investment costs
• Savings in energy costs EUR 1.6 billion
cumulatively, EUR 380 million annual 2016
Energy subsidies granted to all sectors:
• For energy audits EUR 8.9 million
• For energy-saving investments EUR 61 million
Savings: 14.9 TWh/a valid 2016
Private
Services 2%
Energy Intensive
Industry, 66 %
Medium-
Sized
Industry
6%
Energy
Production
23%
Energy Services
3%
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Source: preliminary data, Motiva Oy
Targets were achieved by 92-220 % depending on sector
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Pay-back times in Energy Intensive Industry 2008-2016: Even 38 % of electricity savings with no investment
Pay back
time, year
Number of
measures
Electricity
savings
Share of
saved
electricity
Heat and
fuels
savings
Share of
saved heat
and fuels
GWh/a % GWh/a %
PBT=0
0>PBT>1
1< PBT>2
2<PBT>5
Over 5
379
290
427
150
219
693
276
607
111
148
38%
15%
33%
6%
8%
1228
1574
4004
1127
516
15%
19%
47%
13%
6%
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Source: Motiva Oy
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Number of subsidised Energy audits collapsed after the mandatory auditing for large companies on 2015
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0.75
1.56 1.53
1.90
0.46 0.56
2.03
0.05 0.01
80
143
119
75 67
36
147
6 2
0
20
40
60
80
100
120
140
160
0.00
0.50
1.00
1.50
2.00
2008 2009 2010 2011 2012 2013 2014 2015 2016
Nu
mb
er o
f m
easu
rer
Mill
ion
€
Million € Number of measures
Number of Subsidised audits, 679, 2008-2016
28%
41%
17%
11% 3% Private Services
Medium-Sized Industry
Energy IntensiveIndustry
Energy Production
Energy Services
7%
40% 40%
12%
1% Private Services
Medium-Sized Industry
Energy IntensiveIndustry
Energy Production
Energy Services
Subsidies for audits,, 8,9 Mill. Euro,
2008-2016
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Subsidies for EE-investments stable level after two exceptional years 2010 and 2011
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1.23 3.09
9.66
17.12
5.46 6.58
5.51 5.72 6.78
22
34
55
110
71
84
54
92 96
0
20
40
60
80
100
120
0
2
4
6
8
10
12
14
16
18
20
2008 2009 2010 2011 2012 2013 2014 2015 2016
Nu
mb
er o
f m
easu
res
Mill
ion
€
Million € Number of measures
31%
43%
18%
6% 2% Private Services
Medium-Sized Industry
Energy IntensiveIndustry
Energy Production
Energy Services
Number of subsidised investments, 618, 2008-2016
13%
30%
39%
15%
2% Private Services
Medium-Sized Industry
Energy IntensiveIndustryEnergy Production
Energy Services
Subsidy for investments, 61 Mill. Euro, 2008-2016
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Conclusions
• A hard competition inside companies: which investments will be approved?
– Less and less pure energy efficiency investment will be realized
– but energy efficiency is an important part of every investment (improves the viability)
• Subsidies especially important for SME’s, but ETS restricts subsidies for large companies.
• Still lack of information to be seen: for example criteria for subsidies are not widely known
• Companies are satisfied also on other kind of support:
• Development projects within the agreement: a group of companies, technology suppliers and Motiva’s
energy experts focus on specific topic, for instance industrial ovens (projects are partly self-financed)
• Councelling of SME’s by Motiva: visits, calls, case publications, etc
• ”Peer support” from colleagues in the steering groups of every action plans (meetings 2-4 times
annually)
We continue with earlier good practices and collect new ideas continuously from companies!
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Kati Ruohomäki Senior Adviser, Climate, Energy and Material efficiency
• Energy and material efficiency
• EU Emissions Trading Scheme
• Energy taxation
+358 40 767 5684
@KatiRuohomaki