Good practices of EE policy in Denmark

1. Good practices of EE policy in Denmark Karen Marie Pagh Nielsen Principal Energy Policy Adviser, Ramboll Complex solutions of Energy and Ecology Problems of enterprises and Municipalities Yalta, Ukraine May 23-27, 2005

2. Overview of presentation • Regulation and normative base for energy efficiency • Good practices in Danish municipalities • Good practices in industrial enterprises • Communication and Energy Information Networks • Project ideas for cooperation with Ukraine

3. Denmark 5,3 mill inhabitants - 2,4 dwellings Area 43.000 km2 3 administrative levels: • 20 ministries (central level) • 14 counties (regional level) • 270 municipalities (local/communal level) • Total energy consumption: 829 PJ (2003)/ 13,6% RES Energy balance: DK has been net exporter of energy since 1997 Energy sector: Oil and gas production from the North Sea, wind energy industry, CHP, DH …

4. Fuel Shares Adjusted

5. Danish situation and results • A small country: Quick adaptation to new energy sources • Consumption of energy stable since 1990 • Decrease of CO2 emissions since 1990 • Decrease of energy consumption/GNP • Share of RES: 13,6 % of primary energy supply • Wind power: 16 % of electricity supply • District Heating in 60% of all private homes • More energy efficient domestic appliances (+30% over 10 years)

6. BNP, energy consumption, CO2 -emissions and intensities

7. Ukraine – why is energy efficiency important? • At present, energy may be cheap and abundant, but… • Membership of the European Union? • Energy prices will increase (important for industrial production as well as for agriculture and other parts of society)? • Necessary to comply with European legislation and normative base for energy efficiency? • Climat policy. The more energy saved, the more CO2 kvota to sell

8. Danish regulation promoting energy efficiency I • Strict building codes and labeling of large buildings and one-family homes. New revised building codes will imply a further 25% reduction of energy consumption. • “The public sector is in front and “shows the way” • Tax system has favored RES and punished CO2 emissions from energy consumption • Energy taxes are paid by the general public, not by industry

9. Energy prices for households, 2002 • Gasoline regular (Euro per litre) 1.10 (e.tax 48%) • Heating gas oil (Euro per litre) 0.75 (e.tax 36%) • Natural gas (Euro per Nm3) 0.83 • Electricity (Euro per kWh) 0.24 (e.tax 43%) More figures and information: www.ens.dk

10. Danish regulation promoting energy efficiency II • PSO: Public Service Obligations: support of green energy – Public utilities (electricity, gas, district heating) are obliged to inform and guide consumers on energy saving methods • Subsidy schemes as energy saving mechanisms and as a way of supporting the utilization of RES • The energy saving law (2000): The creation of energy saving committees all over the country

11. Energy saving in Danish municipalities – good practices • Registration of energy consumption • Benchmarking shows huge differences • DEA publishes results and success stories • Conference yearly - exchange of experience • Nomination of the “energy saving/energy sound municipality of the year” • Creation of the Danish Electricity Saving Trust • Labeling of electric appliances and white goods • The“A club” for governmental/municipal institutions (commitment to buy A-labelled appliances) • Campaigns: Energy saving in offices and institutions

12. Municipalities - lessons learnt • An “easy” target group – homogeneous, focal points • Benchmarking is a great idea - Competition has been fruitful • DEA has played an important role in creating transparency and in the exchange of information • Important that those who save energy, also get part of the benefit (for instance in municipal institutions) • Perhaps more targeted focus is needed: hospitals, schools, office buildings • Labeling (the “A-club”) has been a success • The Electricity Trust has had successful activities and creative ideas - impressive results • A huge potential for saving energy in offices and institutions

13. Industrial enterprises - Good practices over the years • Subsidy schemes - “standard solutions” (energy efficient motors/ventilation/dryers/windows etc.) • Subsidy schemes – RES (biomass, solar heating, heat pumps) • Campaigns to promote energy management • Campaigns to promote energy efficient design in industry • Annual conference: Energy saving in private enterprises • Voluntary agreements for industry to reduce CO2 emissions (large, energy intensive companies) • CO2 kvota – New regulation and new commercial market has started • Information material: energy efficient design,

14. Industrial enterprise - lessons learnt • Energy expenses is only 3% of production expenses on the average. Therefore the message is often difficult to sell • Go for highly energy intensive companies • Distinguish between sub sectors of industry • Show and describe shining examples from various sectors • Standard solutions (subsidies) were popular! • Campaigns shall be targeted and simple (one message/ one process etc. – or too little value for money • Voluntary agreements has proven to be a good way in DK - however, follow up is needed

15. Communication and Energy Information Networks • The National Danish Energy Information Centre (free service- energy information, guidance to energy savings, telephone hotline, no commercial interest) • PSO (public service obligation) – utilities’ obligation to inform and guide the consumers in saving energy • Campaigns (standby energy, energy glass and windows, solar heating, natural gas etc.) • Information material and websites (KIS principle)

16. The Energy Saving Law • The Energy Saving Law came into force in July 2000 • Umbrella for parts of the EU regulation on energy efficiency (labelling etc.) • Shows priority of the topic – signal value • The Law requires energy savings committees to be formed • Utilities (gas, heating and electricity) are born members • Municipalities, local administrations and NGOs are invited to participate. • Coordination of utilities’ required energy savings efforts

17. Local Energy Saving Committees

18. Association of Energy and Environment • Network of energy people sharing ideas on energy saving • Initiated in 1982 by energy people in industry, municipalities and the Ministry • Financed by membership fee and benefit from events • 500 members (industry, municipalities, consultants and housing associations) • Organises conferences and seminars (20-25 per year) • Publishes a Newsletter (5 x per year) • Handbook (Manual) on energy saving in industry, offices and municipal institutions

19. Project ideas for co-operation with Ukraine Industry: • Energy management in energy intensive industry • Energy Handbook (Manual on energy efficiency) • Energy efficient design Municipalities: • Introduction of key figures and benchmarking • Energy lighting in offices and schools • Energy Handbook (Manual on energy efficiency) • Energy conscious purchasing

20. Project ideas for co-operation with Ukraine Example 1: Energy management in energy intensive industry The project could include: • Identification and involvement of relevant industries • Training of energy managers- in the 5 phases of energy management: 1. energy policy, 2. Planning 3. Implementation and operation, 4. Monitoring and corrective actions, 5. Management review • Production of information material and manuals • Demonstration of energy management – shining examples (e.g. within food industry, agriculture or other production) • Dissemination activities

21. Project ideas for co-operation with Ukraine Example 2: Energy Handbook (Manual on energy saving and processes in industry and municipalities) The manual could include: • Introduction to the principle of energy management • Chapters on energy saving techniques: insulation of buildings, heating, lighting, ventilation, cooling, drying, compressed air, pumps, motors, automation, measuring of energy consumption, office equipment etc. • Key figures for consumption of energy in industry and officebuildings • Useful advice and guidance to energy people and building administrators • Additional literature, links and references

22. Project ideas for co-operation with Ukraine Example 3: Lighting in municipal office buildings and schools The project could include e.g.: • Identification and involvement of relevant buildings, schools and day-care centres etc. • Collection of data – diagnosis – production of key figures • Demonstration energy efficient lighting – shining examples (e.g. in a school, a day-care centre or an office building) • Production of information material and lighting manual • Production of tools for calculation of saving potential • Dissemination activities