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IEA DSM Task XVI - Voluntary Energy Conservation Agreements Energy Auditing ESCO service

IEA DSM Task XVI - Voluntary Energy Conservation Agreements Energy Auditing ESCO service Pertti Koski 21.9.2006. Climate Change Strategy Implementation Programmes. Energy Conservation Programme 2002. Programme for the Promotion of Renewables 2002. Decision to expand nuclear power 2002.

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IEA DSM Task XVI - Voluntary Energy Conservation Agreements Energy Auditing ESCO service

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  1. IEA DSM Task XVI • - Voluntary Energy Conservation Agreements • Energy Auditing • ESCO service • Pertti Koski • 21.9.2006

  2. Climate Change StrategyImplementation Programmes Energy Conservation Programme 2002 Programme for the Promotion of Renewables 2002 Decision to expand nuclear power 2002 Measures directed towards decrease in the use of coal P. Koski Motiva Oy

  3. Motiva’s forms of operation • to prepare, support and monitor energy conservation agreements • to develop and market energy audits and analyses, together with other methods of energy conservation • to accelerate the introduction of advanced energy-saving technologies • influence people’s attitudes in favour of energy conservation and permanently change their habits of using energy • to provide project management services P. Koski Motiva Oy

  4. Voluntary energy conservation agreements ..2005 • part of the national climate strategy and the associated energy conservation programme • voluntary energy conservation agreements play a central role in the implementation of energy efficiency • alternative and complementary means for regulations and taxes P. Koski Motiva Oy

  5. Coverageof voluntary energy conservation agreements in Finland at the end of 2004 • Additionally two sectoral energy conservation programmes • Höylä II, oil heated properties • coverage ca. 13 % of heating energy used in residential, service and farm buildings • Truck and van sector • coverage ca. 75% of the energy used in truck and van transport services P. Koski Motiva Oy

  6. 1 Agreement 2 Description of energy consumption The link between Voluntary Energy Conservation Agreements and Energy Audits Follow up, updates…. 3 Energy audits and analysis Improvement plans and implementation 4 5 Annual reporting P. Koski Motiva Oy

  7. Energy saving effect of implemented measuresreported by industry, energy sector, municipalities, and private building sector, years 1998-2003 P. Koski Motiva Oy Of the total energy conservation effect (4,7 TWh/a) the share of industry is approx. 85% and power plant sector approx. 12%.

  8. Energy Agreements in the future • The voluntary energy conservation agreements in industry signed mainly in 1997, expired at the end of 2005. Agreements were extended by two years up to the end of 2007 • Development work concerning the new ”Energy Efficiency Agreements” is underway and it will be launched at the beginning of 2008, the latest P. Koski Motiva Oy

  9. Energy Audits,content and targets • Comprehensive study • Heating/electricity/fuels/renewables/water costs and energy consumption • Results: • Break down of consumption • Better understanding about energy costs, energy consumption etc. • Proposals for saving measures • Justification • Economy (savings, investments… • Other effects and impacts P. Koski Motiva Oy

  10. IMPLEMENTING INSTRUMENTS GOALS OF THE PROGRAMME LEGISLATIVE FRAMEWORK PROMOTION AND MARKETING SUBSIDY POLICY STRUCTURE OF ADMINISTRATION KEY PLAYERS MONITORING SYSTEM TRAINING OF AUDITORS AUTHORISATION OF AUDITORS QUALITY CONTROL AUDITOR´S TOOLS The 12 key elements of energy audit program ENERGY AUDIT MODELS P. Koski Motiva Oy

  11. Partners in Energy Auditing MTI guides and rules Motiva Oy Ministry of Trade and industry Results, Follow-up • MTI guides and rules • Auditors training • Audit models and guides • Information and guidance, marketing • Quality control • Follow up Local offices of MTI Subsidy application Customers Auditors Subsidies • Partners • professionals of renewables • suppliers • etc. P. Koski Motiva Oy

  12. Energy auditing models for different client groups: • Buildings, public and private services • Industrial sites • SME’s • Process industry • Energy sector • Power plants • District heating, plants and distribution • networks P. Koski Motiva Oy

  13. START-UP MEETING COLLECTING BASIC, DATA FIELD WORK ANALYSIS OF THE DATA REPORTING FINISHING MEETING Energy Audit Procedure in general START IMPLEMENTATION OF AUDIT IMPLEMENTATION OF SAVING MEASURES P. Koski Motiva Oy

  14. Starting of energy audits • The company’s special needs, targets • The content, meaning and instructions of energy • auditing procedure supported by the ministry • Voluntary energy conservation agreements • Links of energy auditing to environmental, quality • and other functional systems or procedures of • the company • Resources for auditing (own work or outsourcing) • Bidding • Evaluation of the tenders • Decision of energy auditing Filling the forms for subsidies , Decision of the support Start P. Koski Motiva Oy

  15. 7. Saving measures and economy 6. Process 5. Process services 4. Building 3. Consum ption, costs TABLE 2 2. Basic info Savings € Invest. € Pay back period TABLE 1 Saving measur. 1 1. Summary - text - tables 1,2 - econ.prof. - Sankey diagram - process block diagr. Cons. now Saving pot. Invest. Saving measur. 2 Electr. : : Fuels Total Water Total Savings € 0 1 2 5- 3-4 Energy Analyses in Industry Report Model (MOTIVA) App. Kauppa- ja teollisuusministeriön tukema energiakatselmushanke DNro: 333/954/93 Päätöksen pvm 30.12.1993 J P - T A L O T E K N I I K K A ENERGY ANALYSES REPORT Company Ltd Helsinki 5.9.1999 Company Oy P. Koski Motiva Oy Jaakko Pöyry Group PL 27, 00131 HELSINKI Puh. 09 - 46911 Fax. 09 - 4691 311

  16. Energy audit results (example: service) P. Koski Motiva Oy

  17. Of the total audit subsidies granted 1998-2004 (10,6 milj. euros) the share of industry is 58%, municipal sector 21%, property and building sector 10%, power plant sector 6%. Of the total investment subsidies granted between 1998-2004 for energy conservation measures (14,4 milj. euros) the share of industry is 55%, power plant sector 31%, municipal sector 7%, district heating sector 6%. Energy audit subsidies and investment subsidies for energy conservation measuresgranted by the MTI to enterprises/ communities subscribed to energy conservation agreements P. Koski Motiva Oy

  18. CUSTOMER PROCUREMENT - ESCO - ESCO FINANCING yritys SUBCONTRACTS PLANNING VARYFIENG SAVINGS ESCO service • ESCO implements the energy saving measures on behalf of the customer • ESCO guarantees the energy savings • The investments will be financed by the energy • savings achieved during the agreement period P. Koski Motiva Oy

  19. Motiva’s rolepromoting ESCO–business in Finland • To act as an information link between ESCO’s, energy users, potential clients, energy auditors … • Prepare information material, prochures, ESCO tools, and arrange information dissemination affairs and seminars and to be directly in contact with ESCO’s and possible ESCO clients. • Follow the development of ESCO industry abroad and participate in the international co-operation • Identify possible obstacles to the growth of ESCO’ business • Disseminate information of good ESCO project examples P. Koski Motiva Oy

  20. The link between energy audits and ESCO procedures ESCO –procedure is one possible tool for implementing energy saving measures reported in energy audit reports • Short payback times • audit customers normally implement and finance the energy saving measures by themselves • Longer payback times • ESCO’s can implement the measures separately or linked together with measures with short pay-back times P. Koski Motiva Oy

  21. EPC & ESCO business in Finland Energy savings achieved in ESCO projects (reported in Motiva’s ESCO project register (summer 2006), mostly in industry, about 40 projects) • Heating, fuels, steam: 250 GWh/a • Electricity 13 GWh/a ESCO’s in Motivas project register • Are Oy • Enespa Oy • Foster Wheeler Oy • Inesco Oy • Suomen Lämpöpumpputekniikka Oy • YIT Kiinteistötekniikka Oy Energy Utilities, Cooperation with their Industrial Clients • (District heating Company) Kuusankosken Aluelämmitys Oy • (Energy Utility) Etelä-Savon Energia Oy P. Koski Motiva Oy

  22. Future tasks: • Guidelines for municipalities about • the variety of ESCO service • identifying potential ESCO projects in the building stock • tendering process (models and guides for municipalities) • Increasing the business impacts • ESCO procedure development: Energy efficiency quarantee also for renovation projects • Electric energy efficiency quarantee should be included in ESCO contracts P. Koski Motiva Oy

  23. Projects going on • Eurocontract, EU: European Platform for the Promotion of Energy Performance Contracting • CUBENet, Tekes: Life-Cycle Models for Indoor Environment and Building Services 1 Supported by P. Koski Motiva Oy

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