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Motiva Oy Owned by the Finnish State (100%) Number of personnel 54 Expert services

Energy efficiency agreements in Finland Agreement scheme and lessons learned Ukraina Workshop on energy efficiency agreements Kiev 5 th November 2013 Hille Hyytiä. Motiva Oy Owned by the Finnish State (100%) Number of personnel 54 Expert services

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Motiva Oy Owned by the Finnish State (100%) Number of personnel 54 Expert services

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  1. Energy efficiency agreements in FinlandAgreement scheme and lessons learnedUkraina Workshop on energy efficiency agreementsKiev 5th November 2013Hille Hyytiä

  2. Motiva Oy Ownedby the Finnish State (100%) Number of personnel54 Expertservices Mainly for Finnishgovernmentalauthorities (ministries, agencies, institutes) Motiva Services Oy Ownedby Motiva Oy (100 %) Number of personnel17 Expertservices For companies, associations, municipalities, international projects ANNUAL TURNOVER million € 8,93 7,96 6,1 5,9 5,1 4,0 2009 2007 2008 2011 2010 2012 Estimated

  3. 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.

  4. Energy Efficiency Agreements in Finland Mrs Hille Hyytiä

  5. Energy Conservation Agreements 1997–2007Energy Efficiency Agreements 2008–2016 • 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 Mrs Hille Hyytiä

  6. ENERGY EFFICIENCY AGREEMENT AND ENERGY PROGRAMME FOR MUNICIPAL SECTOR MUNICIPALITIES JOINT MUNICIPALITIES ENERGY EFFICIENCY AGREEMENTS FOR BUSINESS SECTOR 2008-2016 INDUSTRY ENERGY SECTOR SERVICES ENERGY EFFICIENCY AGREEMENT FOR OIL SECTOR – HÖYLÄ III ENERGY EFFICIENCY AGREEMENT FOR PROPERTY AND BUILDING SECTOR 2010-2016 DISTRIBUTION OF LIQUID HEATING AND TRANSPORT FUELS OIL HEATED BUILDINGS HOUSING PROPERTIES COMMERCIAL PROPERTIES ENERGY EFFICIENCY AGREEMENTS FOR TRANSPORT SECTOR ENERGY PROGRAMME FOR FINNISH FARMS 2010-2016 GOODS TRANSPORT AND LOGISTICS FARMS PUBLIC TRANSPORT Energy Efficiency Agreements covers almost the whole society in Finland Source: Ministry of Employment and the Economy Mrs Hille Hyytiä

  7. EK–BRANCH ASSOCIATIONS–MINISTRY (EE) BRANCH / SECTOR SPECIFIC ACTION PLANS General, service Car selling and repairing Commerce sector General, industry Food and Drink Industries Chemical Industries Plastic industries Technology Industries Wood product industries Hotel and Restaurant sector Energy Intensive Industries Energy Production Energy Services Energy efficiency agreement for business sectors 2008-2016: energy, industry, services Source: Ministry of Employment and the Economy Mrs Hille Hyytiä

  8. 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 companiesshallincludecontinuousimprovement of energyefficiency and increasing of the use of renewableenergysources in their management systemsalwayswhenit is possibleeconomically and technically and consideringsafety and environmentalaspects. Mrs Hille Hyytiä

  9. Continuous improvement – a key element in agreements Energy Efficiency Management System Plan –> Do –> Check –> Act -principal 5. Management review • 1. Energy policy 2. Planning 4. Surveillanceand remedial action 3. Implementation and execution Mrs Hille Hyytiä

  10. 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 Mrs Hille Hyytiä

  11. 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 => Competitiveness increases Mrs Hille Hyytiä

  12. 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 Mrs Hille Hyytiä

  13. 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: 35–70% of the energy use Mrs Hille Hyytiä

  14. 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) Mrs Hille Hyytiä

  15. 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) Mrs Hille Hyytiä

  16. 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 Mrs Hille Hyytiä

  17. 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? Mrs Hille Hyytiä

  18. Go/no-go decision for new LTA Go/no-go decision Timetable set Evaluation LTA signed 1 Initiation 2 Negotiation 3 Implementation 4 Evaluation New LTA 0 Scanning General marketing Marketing Marketing of new LTA Development of monitoring system Upkeep & development The timeline of energy efficiency agreement Development of financial incentives Development and pilot projects New projects Visual image design Support to participating companies Information dissemination Time-frame 12-18 months Time-frame 3…5…9… years

  19. 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 Mrs Hille Hyytiä

  20. 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 Mrs Hille Hyytiä

  21. 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 ! Mrs Hille Hyytiä

  22. 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 Mrs Hille Hyytiä

  23. 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 Mrs Hille Hyytiä

  24. Mrs Hille Hyytiä

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