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Energy Efficiency for SMEs:Creating a Policy Framework Responding to needs: case FinlandNational roundtable on financing energy Energy Efficiency in IrelandDublin 11th October 2018Kati RuohomäkiConfederation of Finnish Industries EK
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.• 24 member federations• 16,000 member companies, 96% of which
are SMEs• Around 930,000 employeesWhen a company joins an employers´association representing its own branch, it also becomes a member of EK.
2 10.11.2018
Energy Efficiency Agreements 2017-2025:http://www.energiatehokkuussopimukset2017-2025.fi/en/
MUNICIPAL SECTORENERGY EFFICIENCY AGREEMENT
PROPERTY SECTORENERGY EFFICIENCY AGREEMENT
HÖYLÄ IV − OIL SECTORENERGY EFFICIENCY AGREEMENT
DISTRIBUTION OF LIQUID HEATING FUELS
Oil-heated real estates
INDUSTRIESENERGY EFFICIENCY AGREEMENT
CITIES & MUNICIPALITIES &
JOINT MUNICIPALITIES
COMMERCIAL PROPERTIES
HOUSING PROPERTIES
ENERGY SECTOREnergy Production l Energy Services
INDUSTRYEnergy Intensive Industry l Food and Drink Industry l Chemical IndustryTechnology Industry l Wood Product Industry l Industry - General
SERVICE SECTORCommerce Sector l Hotel and Restaurant Sector l Motor Trades & Repairs l Services – General
10.11.20183
Why Voluntary Energy Efficiency Agreement?
10.11.20184
"The Energy Efficiency Agreement has provided tools,know-how and the possibility to receive support for investments
that improve energy efficiency.This enabled us to act quickly.
Energy costs are the third biggest expense for usafter staff and marketing expenditures.
We spend approximately half a million euros each year on snowmaking;without saving measures,
the bill would be tens of thousands of euros higher."– CHAIRMAN OF THE BOARD KARI JUSSI AHO, RUKAKESKUS OY AND PYHÄTUNTURI OY
Why Voluntary Energy Efficiency Agreement? • Alternative measure 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 since 1992: Good results so far!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! 5 10.11.2018
Results from the previous period of 2008-2016: reported by about 460 joined companies with over 4200 sitesIndustry 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/avalid 2016
PrivateServices 2%
Energy IntensiveIndustry, 66 %
Medium-SizedIndustry6%
EnergyProduction23%
Energy Services3%
6 10.11.2018Source: preliminary data, Motiva Oy
Targets were achieved by 92-220 % depending on sector
Pay-back times in SME Industry 2008-2016:Over half of savings has two years pay-back time or less
Pay back time, year
Number ofmeasures
Electricity savings
Share of saved electricity
Heat and fuelssavings
Share of saved heat and fuels
GWh/a % GWh/a %PBT=0
0>PBT>11< PBT>22<PBT>5
Over 5
778
507614350
631
30
395530
45
15%
20%27%15%
23%
102
112162157
116
15%
16%23%23%
23%
7 10.11.2018Source: Motiva Oy
Number of subsidised Energy audits collapsed afterthe 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
7567
36
147
6 20
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
Num
ber o
f mea
sure
r
Mill
ion
€
Million € Number of measures
Number of Subsidised audits, 679, 2008-2016
28%
41%
17%
11% 3%Private Services
Medium-Sized Industry
Energy IntensiveIndustryEnergy Production
Energy Services
7%
40%40%
12%
1%Private Services
Medium-Sized Industry
Energy IntensiveIndustryEnergy Production
Energy Services
Subsidies for audits,, 8,9 Mill. Euro, 2008-2016
Source: Motiva Oy
Subsidies for EE-investments stable level after twoexceptional years 2010 and 2011
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1.23 3.09
9.66
17.12
5.466.58
5.51 5.726.78
22
34
55
110
71
84
54
9296
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 2016N
umbe
r of m
easu
res
Mill
ion
€
Million € Number of measures
31%
43%
18%
6%2%Private Services
Medium-Sized Industry
Energy IntensiveIndustryEnergy 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
Source: Motiva Oy
Figures after the first year of new phase 2017-2025• 368 joined companies with over 1642 reporting sites
• Energy consumption covered by agreement– Energy intensive industries: 112 TWh/a– SME industry: 7,7 TWh/a– SME private services: 3,1 TWh
• Fulfilling degree of the 2025 target after one year: 6 – 44 % depending on sector (the smallestfigures in ”general” action plans).
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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!
10.11.201811
Kati RuohomäkiChief Policy Adviser, Energy and Climate• Energy and Climate policy in the EU and national level• Energy Efficiency, Energy taxation and EU Emissions Trading Scheme
[email protected]+358 40 767 5684@KatiRuohomaki
