Seppo Silvonen, Motiva Oy Finland Energy auditing as an essential part of the investment process

1. "FINANCIAL AND ECONOMIC ASPECTS OF ENERGY SAVING WITHIN THE FRAMEWORK OF THE CSRC APPROACH" Workshop: "TRANSNATIONAL ENERGY SAVING NETWORKS"14 December 2005 Vilnius, Lithuania Seppo Silvonen, Motiva OyFinland Energy auditing as an essential part of the investment process Finnish national and EU energy auditing procedures

2. A Package of Three InstrumentsThe Finnish set-up Reporting boundaries 4,1 TWh/a Voluntary Agreements 1,5 TWh/a Energy Audits 0,5 TWh/a Subsidies

3. The Finnish Energy Auditing Scheme (1) Energy and Climate Strategy Energy EfficiencyProgramme RES-Programme Voluntary Agreements Energy Auditing Scheme Market Free Subsidised

4. The Finnish Energy Auditing Scheme (2) THE ADMINISTRATOR THE OPERATING AGENT Financing Marketing Reporting THE AUDITOR Guidance THE CLIENT

5. AnEnergy Audit In general • gives adequate knowledge of the existing energy consumption profile • identifies factors affecting the energy consumption • brings up cost-effective energy saving opportunities The Core Audit • makes an evaluation of the present consumption • identifies and quantifies the feasible energy saving possibilities • produces a report

6. Environmental programmes Energy efficiency programmes Programmes Other Program- mes with EA Energy Audit Program- mes Activities with Energy Audits

7. TARGETS OF ENERGY AUDITING TABLE 2 Savings EUR Costs EUR Payback time (y) Measure 1 Measure 2 : : Total • Total picture of the use of energy, its distribution and costs • Energy saving potential and the possibilities to use renewable energy sources • Listing of all economically feasible proposals for energy saving measures (single pay-back time < 10 a)

8. Motiva – Key Functions in the Energy Auditing Scheme The Finnish Energy Auditing Scheme (3) MARKETING DEVELOPMENT AND TRAINING QUALITY CONTROL MONITORING

9. The Finnish Energy Auditing Scheme (4) Functioning in close co-operation with the Ministry of Trade and Industry • Implementation of the Directives on • energy performance of buildings • energy end-use efficiency and • energy services Linking to other systems International co-operation Reporting Information System Information dissemination Quality control of auditing reports Planning Training Development of Methods&Tools Authorisation of auditors

10. 1 Agreement 2 Description of energy consumption The Finnish Energy Auditing Scheme (5) The link between the voluntary energy conservation agreements and energy audits Follow up, updates…. 3 Energy audits and analyses Improvement plans and implementation 4 5 Annual reporting

11. Agreements and energy audits Voluntary energy conservation agreement: • significant carrier for energy audits in all sectors except the transport sector • partners to the agreements are “obliged” to carry out energy audits and to reach a set coverage within a certain time

13. Energy auditing models for different client groups • Buildings: public and private services, apartments • Industrial sites • SME’s • Process industry • Energy sector • Power plants • District heating, plants and distribution • networks • Transportation

14. COMMERCIAL AUDITS Air Audit Audit Models Other sectors: Energy sector Power Plant Energy Analysis District Heating Energy Audit Energy Audit Programme Industrial plants high energy intensity Process Industry Energy Analysis Industrial Energy Analysis Industrial plants Updating with industrial models Industrial Energy Audit THE VOLUNTARY AGREEMENT SCHEME SME’s Post- acceptance Energy Audit Follow-up Energy Audit Energy Inspection Small buildings service sector Building Audit Large buildings service sector Blocks of flats Energy Audit Model being developed Small residential buildings Model subsidised by the Ministry of Trade and Industry Model not subsidised

15. ENERGY CONSERVATION PROGRAMME Estimated saving potentials with the proposed measures by 2010: Fuels Electricity Heating of buildings 12 % 15 % Industry 6 % 3 % Transportation 9 % Other sectors 3 % 4 %

16. Energy Audits – Results Savings potential • service sector (appr. 1200 buildings) Heat 15 % Electricity 6 % Water 7 % • small and medium sized industry (appr. 190 buildings) Heat and fuels 25 % Electricity 8 % Water 11 % • the saving potentials in the energy intensive industry and power and heat sector are considerably smaller

17. Rules for Energy Audits subsidised by the Ministry of Trade and Industry (MTI) • Standard contents • Proper scheme to be applied for the case in question • Criteria to be met by the applicant of the subsidy • Authorised auditors for HVAC and electrical installations • Cost limits • Forms of application and payment of the subsidy • Reporting procedure • Subsidy level

18. Direct government support • The government finances the costs of the operating agent (Motiva) of the Finnish energy audit program and gives 40…50 % support for the energy auditing project expenses • 15…20 % subsidies for conventional energy saving investments for companies who have joined the voluntary Energy Conservation Agreements with the Government. • Higher subsidies (20..25 %) has been granted for ESCO investment projects at least until the end of the year 2004 by the government

19. Profitability of the proposed energy saving measures of 1 265 buildings

20. Regional Energy Audits • meant for • mapping the existing use of fuels and the potential for increasing • the use of RES in the production of heat and power in a munici- • pality or other region • supporting the working out of the plan for RES in implementing • the voluntary energy conservation agreement • done by • working out a regional energy balance • estimating the available sources of renewable energy • identifying facilities where the available sources of renewable • energy could feasibly replace the use of non-renewable energy • sources

21. International review of Energy Auditing Review of energy audit methods and practices in some European countries Establishing an energy audit programme – the 12 basic elements Situation in some European countries More of this: www.

22. International review of energy auditing Energy audit programmes in the EU Member States, Norway and the CEECs

23. International review of energy auditing Other programmes with energy audits in the EU Member States, Norway and the CEECs

24. International review of energy auditing Other Activities with energy audits in the EU Member States, Norway and the CEECs

25. International review of energy auditing • Projects in the SAVE II Programme: • Audit I – Country reports • Audit II – Topic reports • Monitoring and evaluation • Energy audit models • Training, authorisation and quality control • Auditor’s tools • Implementing instruments • To look at these: www.motiva.fi (English pages)

26. To hear the latest, come to energyAUDIT06 in Lahti, Finland September 11-13, 2006 More of this: www.motiva.fi (Enlish pages)